What is the story about?
What's Happening?
Jubilee Metals, listed on Aim and AltX, has received a $15-million initial payment as part of the sale of its South African chrome and platinum group metal (PGM) business. The sale, approved by shareholders on August 28, is part of Jubilee's strategy to focus on its Zambian operations. The company plans to sell its South African assets for up to $90-million, with payments spread over three years. The sale is pending approval from the South African Competition Commission and an audit. Jubilee retains its investment in the Tjate platinum project in South Africa and expects the sale to conclude by the end of the year.
Why It's Important?
The sale of Jubilee's South African assets is significant as it provides the company with non-dilutive capital to pursue its growth strategy in Zambia. This move aligns with Jubilee's three-pillar strategy to become a comprehensive copper producer, targeting 25,000 tons per year. The funds will support operations in Zambia, including the Roan, Sable, and Large Waste projects. The focus on Zambia is expected to enhance Jubilee's flexibility and resilience against in-country risks, while offering growth opportunities in the copper sector.
What's Next?
Jubilee plans to complete the sale of its South African assets by the end of the year, pending regulatory approvals. The company is also expanding its Sable refinery in Zambia to increase processing capacity. Discussions for a joint venture at the Molefe mine are ongoing, with final designs for the Large Waste project expected by the third quarter of the 2026 financial year. Jubilee aims to secure additional funding for these projects from existing resources and the proceeds of the South African sale.
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