Jubilee Metals Group PLC on Monday said interim profit more than halved as the metal processing company grappled with power outages in South Africa and poor infrastructure in Zambia.

The London-based metal processing company recorded a 54% decline in pretax profit to £4.3 million for the six months that ended December 31 from £9.3 million a year earlier.

Revenue was slightly lower at £63.1 million from £63.3 million.

In the first half, earnings before interest, tax, depreciation and amortisation dropped by a quarter to £10.3 million from £13.7 million, thanks to a reduction in prices for both platinum group metals and copper, coupled with a delayed ramp-up of the Roan copper concentrator.

Earnings per share decreased by 56% to 0.15 pence from 0.34p, while headline EPS were 59% lower at 0.13p from 0.32p.

PGM operations recorded 18,208 ounces, all from own operations, down from 20,316 ounces, while copper production of 1,149 tonnes was below expectation as a consequence of the delayed ramp-up of the Roan concentrator, mainly due to power and water disruptions in Zambia, compared to 1,314 tonnes.

Jubilee argued that the half-year results show its resilience, with the company acting speedily to address the infrastructure challenges faced at the operations during the period.

Jubilee implemented back-up power units at its Windsor operations, while increasing the PGM stock held at its Inyoni operations to buffer against any prolonged power outages at its chrome operations.

In Zambia, the company expanded the scope and set up privately owned water infrastructure to ensure water supply to its Roan operations.

For its annual guidance, Jubilee kept PGM production unchanged at 38,000 ounces, with potential of upwards revision depending on South Africa’s power supply outlook

Chrome operations are expected to exceed guidance of 1.2 million tonnes of chrome concentrate, with support of stronger chrome prices seen during current period.

Copper guidance was adjusted to 3,000 tonnes, revised to align with the delayed ramp-up of the Roan concentrator and commercialisation of the Southern Copper Refining project.

Jubilee shares were down 4.9% at 7.51 pence each in London on Monday morning, and down 0.5% at R 1.85 each in Johannesburg.

Copyright 2023 Alliance News Ltd. All Rights Reserved.