Key Points
- Power outages in Zambia disrupt production at Jubilee’s Roan facility.
- Jubilee secures better terms for its large waste project.
- Jubilee issues 2.7M new shares, raising total to 3B.
Due to unforeseen power interruptions in Zambia, Jubilee Metals, a diversified metals processor, experienced more production problems at its Roan operation. Production has been severely hampered by the outages, with Roan being more severely hit than the Sable refinery, which depends on a private energy source.
Power outages disrupt production at Jubilee’s Roan facility
Jubilee affirmed that its Munkoyo and Project G mining operations are still operating normally and on schedule in spite of the power outages.
Concerns have been voiced regarding fulfilling production targets for the second quarter of the 2025 fiscal year due to the continued uncertainty surrounding the national power supply, despite the company’s aggressive collaboration with Zambian authorities to control outage schedules and limit costs.
Mining Weekly stated that Jubilee promised stakeholders on December 17 that it would keep them informed as events progressed. The statement, however, caused a significant market reaction, resulting in a more than 15% decline in the company’s share price on the Johannesburg Stock Exchange (JSE).
Additionally, Jubilee reported on the status of its Large Waste Project in Zambia, which aims to remove more than 260 million tonnes of rock that contains copper.
By successfully extending the project’s due diligence time to January 2025, the corporation was able to improve the acquisition’s contractual conditions.
Though $11.5 million is still due by December 2025, the acquisition cost has been lowered from $30 million to $18 million. According to Jubilee, it is on schedule to finish the due diligence by the revised deadline.
After options were exercised at a price of one penny per share, Jubilee announced the issuing of almost 2.7 million new ordinary shares.
On December 20, these shares, which account for 0.09% of the company’s increased capital, will be listed on the JSE’s AltX board and allowed for trade on London’s Alternative Investment Market (AIM).
New share issuance boosts Jubilee’s total capital to 3B shares
Jubilee continues to pursue strategic expansion possibilities, including as the Large Waste Project and share issuance, despite operational problems at the Roan facility. The business claims that despite Zambia’s power supply issues, it is still dedicated to expansion.
Market worries about production disruptions are reflected in Jubilee’s share price drop after the Dec. 17 statement, but the firm stressed that its overall operating strategy is unaffected.
