Diversified miner Jubilee Metals reported a surge in first-quarter copper output as its Zambian operations recovered from power outages earlier this year.
The increase places Jubilee on a firm footing as it continues to ramp up production while disposing of its South African chrome and platinum group metal (PGM) assets — a shift it aims to conclude by the end of the year.
The company’s Zambian expansion plans, which include increased investment in exploration and a private power purchase agreement for its Roan concentrator last year, finally started to bear fruit during the three months ended September.
“We have worked hard to secure the key ingredients for our growth strategy, the most critical of which has been a stable and reliable power supply agreement for our Roan and Sable operations,” said CEO Leon Coetzer.
“We are paying a premium for the security of power, but this is offset by the sharp improvement in copper production,” he said.
Jubilee reported output of 938 tonnes, up 65% from the previous quarter, and assured investors that no material power outages affected the operations in the period under review.
On the back of a stellar first quarter and a lengthy investment programme, the group set production guidance of 4,500-5,100 tonnes for the year to end-June 2026, roughly double the output of the past year.
The company has been steadily increasing its investment in the Zambian operations, increasing annual copper output from 2,269 tonnes in the year to end-June 2022 to 3,422 tonnes in the 2024 financial year.
In the past year, however, its ambitions have been set back by power and infrastructure challenges, including electricity outages, which saw the miner put its Roan concentrator on care and maintenance for a prolonged period earlier this year.
As a result, the group’s annual output dropped to 2,211 tonnes in the 12 months to end-June, down 35.4% year on year. At the same time, copper revenue dropped by 17.9% to $15.2m.
“Very soon, the company will become a pure-play copper producer, generating our revenue from an exciting suite of copper growth assets situated on one of the richest copper belts on earth,” said Coetzer.
“The hard work in Zambia is beginning to show tangible results, and we remain focused, disciplined, and confident in our strategy as it continues to translate into steady operational performance for the year ahead.”
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