Jubilee Metals is actively seeking additional near-surface copper resource opportunities in Zambia after completing due diligence for an open-pit mine in the region. This step is part of its plan to increase copper production in the southern African country. CEO Leon Coetzer highlighted that Zambia offers numerous near-surface resource prospects, which the company is now focused on exploring.
Following the completion of due diligence for the Project G open-pit copper mining operation, Jubilee has decided to acquire a majority interest in the project. The company increased its holding to 65%, up from the previously announced 51%. For this acquisition, Jubilee will pay $2 million in cash rather than shares, securing two open-pit mining operations in Zambia. Additionally, Jubilee has committed to investing $500,000 to upgrade the Project G operations.
This acquisition is part of a broader strategy to leverage Jubilee’s processing capabilities and take advantage of early-mover opportunities. The goal is to secure significant near-surface copper resources that are already operational. Coetzer explained that these assets’ consistent high grades and Jubilee’s ability to manage operations directly will allow the company to optimise ore blending and achieve its target of 25,000 tonnes of copper per annum.
Operations for Project G are expected to commence before the end of this year, with plans to deliver pre-concentrated run-of-mine (ROM) material to the Sable Refinery. Jubilee, which also processes chrome in South Africa, will appoint a manager to oversee the open-pit operations. The project is set to ramp up over a six-month period, eventually reaching a production rate of 3,000 tonnes of pre-concentrate material per month. An additional 350 copper units per month will also be delivered to the Sable Refinery for further processing.
Jubilee’s broader strategy in Zambia includes reaching an annual production capacity of 25,000 tonnes of copper. However, the company is facing challenges due to Zambia’s rolling power cuts, which can last up to 20 hours a day. These power issues are primarily caused by the depletion of hydroelectric water levels at Kariba. To mitigate this, Jubilee has secured a power purchase agreement with Lunsemfwa to ensure a stable power supply for its operations.
In related news, prominent South African businessman Reuel Khoza recently joined Jubilee’s board following the resignation of the company’s CFO, Neal Reynolds. Khoza has held significant roles with major corporations, including Nedbank, Eskom Holdings, and the Public Investment Corporation.
Jubilee’s financial performance for the year ending June 2024 showed a 20.2% increase in revenue, reaching $205.4 million. This growth in revenue was primarily driven by higher output in both chrome and copper, which helped to counterbalance a sharp decline in platinum group metals (PGM) basket prices during the period.
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.
