Q4 Operational Update - South Africa

Jubilee Metals

21/07/2025 07:00

RNS Number : 8265R

Jubilee Metals Group PLC

21 July 2025

 

Jubilee Metals Group Plc

Registration number (4459850)

AIM share code: JLP

Altx share code: JBL

ISIN: GB0031852162

('Jubilee' or 'Company' or 'Group')

 

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Operational Update South Africa

Q4 FY2025

Jubilee, a diversified metals producer with operations in South Africa and Zambia, today publishes its South Africa operational and project update for the fourth quarter ended 30 June 2025 (Q4 FY2025), reflecting a strong production performance for the financial year to June 2025. An update on the Zambia Operations is expected to be released in August 2025.

Highlights

§ South Africa reported Lost Time Frequency Injury Rate of 1.33 (Q4 FY2024: 1.62) with no classified injuries reported.

§ Chrome concentrate production for Q4 FY2025 up 19.9% from the comparative quarter in the previous financial year to 505 578t (Q4 FY2024: 421 698t).

§ Production for the year ended 30 June 2025 reached 1 932 798t, up 24.8% from the comparative year (FY 2024: 1 548 205t), and exceeding revised guidance of 1 850 000t.

§ 6E Platinum Group Metals* (PGM) production for Q4 FY2025 reached 8 973 oz, up 14.6% from the comparative quarter a year earlier (Q4 FY2024: 7 828 oz).

§ PGM production for the year ended 30 June 2025 reached 38 579 oz, up 6.0%  from 36 411 oz for the comparative year ended 30 June 2024, in line with revised guidance of 38 000 oz.

§ Cessation of OBB chrome ore supply contract at end-June 2025 (equivalent to 450 000tpa of chrome) to be offset largely by increased production from Thutse operations.

*  6E PGM - Platinum, palladium, rhodium, ruthenium, iridium and gold

South Africa production guidance for FY2026

§ Chrome concentrate Production guidance of 1.65 - 1.80Mt

§ PGM Production guidance of 36 000 - 40 000 oz

Statement from Leon Coetzer, Jubilee CEO:

"Our South African operations have produced strong production results for the period which speaks to our deep understanding in manging the interdependency of our chrome and PGM operations backed by the dedication of our team.  

Over the past quarter we have seen large fluctuations in the price of chrome. The Company's revenue and earnings exposure to chrome prices have significantly increased in line with the increase in operational output with a 1% movement in chrome price now being equivalent to an approximate 4.5% movement in the platinum price.  Since May 2025, the chrome price has depreciated by approximately 11.4% which has been largely buffered by platinum prices that have appreciated by nearly 33% over the same period and further supported by the significant increase in chrome production.

As announced at the beginning of June 2025, we are finalising the sale agreements relating to the proposed sale of the South African chrome and PGM operations, and we remain committed to ensuring excellent operational safety and production."

Production performance Q4 FY2025

The table below presents the unaudited operational production performance of South Africa for Q4  FY2025 and for the financial year ending 30 June 2025:

OPERATIONAL PERFORMANCE
Q4 FY2025
Q4
FY2024
% change
FY2025
FY2024
% change
SOUTH AFRICA
Production
Chrome
tonnes
505 578
421 698
19.9%
1 932 798
1 548 205
24.8%
PGM
Oz
8 973
7 828
14.6%
38 579
36 411
6%

Operational Summary for Q4 FY2025

Jubilee's South African operations depend on chrome ore being delivered to the Company's processing  facilities, from which chrome concentrate is first extracted. The tailings resulting from this processing of chrome ore contain commercially extractable quantities of PGMs. In essence, this makes Jubilee first and foremost,  a chrome concentrate producer, with the benefit of PGM production as a follow-on product. The Company has seen a sharp increase in chrome production from third party chrome ore partnership agreements.

The cessation of the ore supply and operating contract to the OBB chrome ROM facility in South Africa at the end of June 2025, has been largely offset by a sharp increase in chrome production from third party chrome ore partnership agreements. These partnership agreements offering direct exposure to chrome prices, now contribute approximately 70% of current chrome production.

With the significant growth in the Company's chrome processing operations, the exposure to chrome markets outweighs the exposure to PGM markets in a ratio of approximate 4.5-to-1. This ratio suggests that a 1% downward movement in the chrome price will require an increase of 4.5% in the platinum prices to offset the reduced chrome earnings. Equally, a recovery in chrome prices will have a far greater impact on the Company's earnings. Chrome markets have retracted over the past 3 months by approximately 11.4%, driven mainly by concerns on world demand for stainless steel which is often a lead indicator of global growth expectations. The 33% appreciation in the platinum price has been able  to buffer largely the expected loss in chrome earnings.

The increased production rates at the Thutse operations will offset largely the discontinued tolling agreement which accounted for an approximate 450 000 tonnes of chrome production during the FY2025 period. Production levels are expected to remain at approximately 1.65Mt on an annualised run rate. 

The discontinuation of the OBB operating contract will have a limited impact on the PGM production profile of Jubilee given the adequate availability of PGM bearing feedstock.

Jubilee holds a second tolling agreement with this specific ore feed supplier, producing 600 000tpa of chrome concentrate, which reaches maturity in February 2027.

The new PGM joint partnership announced on 9 April 2025 under an earnings share agreement has commenced with operational trials which is ongoing under the supervision of the Jubilee technical team. The team is working towards enhancing the partnered processing facility to improve the final product specifications.

 

21 July 2025

For further information visit www.jubileemetalsgroup.com, follow Jubilee on X (@Jubilee_Metals) or contact:

 

Jubilee Metals Group PLC 

Leon Coetzer (CEO)/Jonathan Morley-Kirk (FD)

Tel: +27 (0) 11 465 1913 / Tel: +44 (0) 7797 775546

 

Nominated Adviser - SPARK Advisory Partners Limited 

Andrew Emmott/James Keeshan 

Tel: +44 (0) 20 3368 3555 

 

PR & IR Adviser - Tavistock 

Jos Simson/Gareth Tredway

Tel: +44 (0) 207 920 3150 

 

Joint Broker - Zeus Capital

Harry Ansell/Katy Mitchell  

Tel: +44 (0) 20 7220 1670/+44 (0) 113 394 6618 

 

Joint Broker - Shard Capital Partners LLP

Erik Woolgar/Gareth Burchell

Tel +44 (0) 207 1869900 

 

JSE Sponsor - Questco Corporate Advisory Proprietary Limited 

Alison McLaren

Tel: +27 63 482 3802

 

Financial Advisor to the proposed transaction

Absa Corporate and Investment Bank, a division of Absa Bank Limited

Craig Brewer

Tel: +27 83 303 0980

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