Jubilee Metals Group has taken a bold step to reshape its future, accepting a $90 million offer for its South African chrome and platinum group metals (PGM) operations. This strategic divestment signals a decisive pivot towards the company’s burgeoning copper projects in Zambia, positioning Jubilee to capitalise on the surging demand for copper driven by global electrification trends.
The $90 million deal, structured with an upfront cash payment and deferred instalments over three years, allows Jubilee to streamline its portfolio and focus resources on its high-potential Zambian copper assets. The buyer, an undisclosed private mining and metals trading company, has recognised the value in Jubilee’s mature South African operations, which have reached a stage where significant capital investment would be required for further growth.
By retaining rights to the Tjate Platinum mining project in Mpumalanga, Jubilee maintains exposure to the PGM market’s potential upside without diverting focus from its copper strategy. This move reflects a balanced approach, preserving optionality in PGMs while aggressively pursuing copper opportunities.
Jubilee’s Zambian ventures, including the Roan concentrator and Munkoyo operations, are central to its growth strategy. Recent trials at Roan have confirmed its capability to process 35,000 to 40,000 tonnes of ore per month, translating to 240 to 360 tonnes of copper units monthly. Munkoyo contributes an additional 80,000 tonnes per month, with high-grade ore feeding the nearby Sable Refinery. Plans are underway to expand Sable’s capacity to 14,000 tonnes per annum by early 2026, accommodating increased production from both Munkoyo and the developing Project G.
The company’s strategic shift is underpinned by the robust outlook for copper, essential for electric vehicles, renewable energy, and infrastructure. Jubilee’s in-country presence and processing expertise position it well to exploit Zambia’s copper-rich resources, with recent agreements granting exclusive rights to assess and potentially acquire additional mining sites.
CEO Leon Coetzer emphasised the rationale behind the divestment, noting that the South African business had matured to a point where substantial investment would be necessary for further growth. In contrast, the Zambian operations offer compelling capital returns and earnings growth, aligning with the company’s long-term objectives.
The market has responded positively to the announcement, with Jubilee’s shares rising over 4% on the Johannesburg Stock Exchange. The company is also reviewing its dividend policy, indicating potential future distributions to shareholders as it realises gains from its restructured portfolio.
Jubilee Metals Group plc (LON:JLP) is a diversified metal recovery business with a world-class portfolio of projects in South Africa and Zambia. The Company’s expanding multi-project portfolio across South Africa and Zambia provides exposure to a broad commodity basket including Platinum Group Metals, chrome, lead, zinc, vanadium, copper and cobalt.
