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-1.33%
GOOD

Jubilee Metals Group to Sell Chrome and PGM Operations, Focus on Copper in Zambia

Why we think this is good

The proposed disposal of Jubilee's chrome and PGM operations in South Africa is a positive step, as it allows the company to focus on its copper strategy in Zambia, which is expected to offer significant growth opportunities. The transaction terms seem reasonable, with a consideration of up to US$90 million. The company is also reviewing its dividend policy, which could benefit shareholders. However, the RNS does not meet the criteria for a 'Very Good' rating, as it is not a profit upgrade or a transformational acquisition.

Key Points

  • Proposed disposal of chrome and PGM operations in South Africa for up to US$90 million
  • Transaction subject to customary conditions, including shareholder approval
  • Jubilee to focus on copper strategy in Zambia, which offers significant growth potential
  • Company reviewing dividend policy to enable possible shareholder distributions

Summary

The diversified metals producer plans to sell its chrome and PGM operations in South Africa to focus on its copper strategy in Zambia, which it believes offers significant growth potential.

Jubilee Metals Group has received a conditional binding offer to acquire its chrome and PGM operations in South Africa for up to US$90 million. The proposed transaction will allow Jubilee to focus on its copper strategy in Zambia, where the company believes there are material opportunities to deliver growth at the existing sites by expanding the portfolio of copper producing assets. Jubilee is also reviewing its dividend policy to enable possible distributions to be made to shareholders in the future.

Key Dates

11 June 2025
Admission of new shares on AIM and JSE
Early Q1 2026
Completion of Sable refinery expansion
GENERAL UPDATE