Jubilee Metals Shifts Gears with R1.6 Billion Deal to Supercharge Zambia Copper Plans

R1.6 Billion Deal Clears the Runway for Copper Ambitions

In a significant reshaping of its business model, Jubilee Metals Group has agreed to offload its chrome and platinum group metals (PGM) operations in South Africa for a potential $90 million (R1.6 billion). The conditional deal, extended by an unnamed private mining and metals trading company, is more than just a sale—it’s a loud signal that Jubilee is betting big on copper and, more specifically, Zambia’s copper-rich soil.

As soon as the news broke, Jubilee’s shares jumped over 4% on the JSE, closing at R1.00. Investors clearly approve of the company’s bold move to streamline its South African portfolio and scale its copper game north of the Limpopo.

A Strategic Shift Rooted in Global Copper Demand

Copper is no longer just a commodity—it’s the backbone of our electrified future. With the world charging toward electric vehicles, renewable energy, and smarter infrastructure, copper demand has never looked more promising. Jubilee’s leadership is capitalising on this trend.

CEO Leon Coetzer explains the rationale behind the decision: South Africa’s chrome and PGM assets have matured and would now require hefty investments to scale. Zambia, meanwhile, offers leaner costs, higher margins, and a clear path to growth, particularly with operational sites like the Roan concentrator performing above expectations.

“The opportunity in Zambia is too compelling to ignore,” Coetzer said. “This deal allows us to refocus our resources and sharpen our copper strategy where we see the greatest potential for return.”

Tjate Platinum Remains in the Mix

Even with this asset shift, Jubilee isn’t walking away from PGMs entirely. The company will retain rights to the Tjate Platinum project, a long-term asset in Mpumalanga. It’s a strategic move—offering optionality in the PGM space without drawing away capital or focus from Zambia’s more immediate copper returns.

What the Deal Includes

The R1.6 billion offer is structured with an upfront cash payment and deferred installments over three years, aligning well with Jubilee’s long-term investment goals. While the buyer remains unnamed, the due diligence and financing have been entrusted to Absa Corporate and Investment Bank, adding credibility and structure to the transaction.

Jubilee has also hinted at reviewing its dividend policy, suggesting shareholders might soon see some returns from this windfall.

Zambia: The Copper Crown Jewel

Zambia isn’t a new frontier for Jubilee—it’s home turf. But now, it’s becoming the center of gravity for the company’s growth strategy. With near-surface mining projects like Munkoyo and Project G coming online and confirmed production capacity at Roan concentrator, Jubilee has a strong foothold and the technical expertise to expand further.

Recent agreements give Jubilee exclusive rights to assess and potentially acquire more mining sites—paving the way for an aggressive copper expansion plan.

A Broader Trend in African Mining?

Jubilee’s move also taps into a larger regional pattern. As South African mining assets become increasingly expensive to maintain and operate—due to regulatory complexity, power supply issues, and ageing infrastructure—companies are starting to turn their sights elsewhere. Zambia, with its relatively investor-friendly climate and untapped deposits, is quickly becoming a favourite among mid-tier mining firms.

Community and Market Response

Mining industry insiders and market watchers have largely applauded the move. On social media, analysts have praised the timing of the deal—highlighting copper’s long-term prospects and Jubilee’s nimbleness in repositioning.

Others are curious to see whether Jubilee will continue to offload other South African assets or maintain a hybrid presence.

Local Zambian media, meanwhile, have been tracking Jubilee’s movements with increasing interest, as the company becomes a key foreign player in Zambia’s minerals renaissance.

Betting on the Right Metal

Jubilee’s South African chrome and PGM businesses got the company to where it is today, but its future clearly lies in copper—and in Zambia. With a significant deal inked, a growing operational footprint, and rising global demand, Jubilee is moving with purpose.

This isn’t just a sale. It’s a strategic pivot, and so far, it’s one the market is applauding.

{Source: IOL}

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