Jubilee Metals Group PLC on Monday report sharply lower half-year profit following severe power disruptions in Zambia and mounting costs.
The London-based metal processing company, with projects in South Africa and Zambia, said pretax profit plunged by 74% to $1.5 million for the six months that ended December 31 from $5.5 million a year earlier.
Revenue rose 51% to $141.5 million from $93.7 million, driven mainly by increased production of chrome concentrates.
But operating costs rose 21% to $15.4 million from $12.8 million, while finance costs increased 31% to $5.1 million from $3.9 million. Gain on fair value adjustments was just $708,000, down from $3.6 million.
Earnings before interest, tax, depreciation and amortisation fell 6.8% to $13.6 million from $14.6 million, due to softer chrome prices.
Average chrome price per tonne declined 18% to $252 per tonne from $309, though chrome concentrate production in South Africa was 974,659 tones, up 36% from 718,189 tonnes.
In Zambia, copper production was down 14% to 1,454 tonnes from 1,683 tonnes, due mainly to the impact of power outages. The average copper price on the London Metal Exchange was flat at $9,193 per tonne.
Platinum group metals production in South Africa fell 8.9% to 18,435 ounces from 20,244 ounces. The average PGM basket price also remained flat at $1,360 per ounce.
‘The first half of the 2025 financial year was one of both success and challenges. While we were able to deliver our Roan expansion project in Zambia and begin the parallel processing of waste and run-of-mine material, severe power disruptions on the grid at the end of the period, meant this start-up was short lived,’ Chief Executive Officer Leon Coetzer said.
Looking head, Jubilee Metals said it is on course to achieve chrome concentrate production of 1.65 million tonnes for the financial year ending June 30, up from 1.54 million tonnes in financial 2024. PGM production guidance is 36,000 ounces, flat from 36,411 ounces.
Copper production guidance remains under review, Jubilee Metals said, until results from the initial operational run following the completed switch over to the high-grade ore at Roan copper concentrator plant in Zambia has been confirmed for a sustained minimum period of six weeks.
Jubilee Metals shares were down 12% at 82 rand cents in Johannesburg early Monday. In London, they were down 12% to 3.34 pence.
Copyright 2025 Alliance News Ltd. All Rights Reserved.
