Jubilee Metals Faces Power Disruptions at Roan While Advancing Key Projects in Zambia
Diversified metals processor Jubilee Metals, which operates in South Africa and Zambia, has reported significant disruptions at its Roan facilities in Zambia due to unplanned power outages.
The blackouts have severely impacted production, with Roan operations being particularly vulnerable compared to the Sable refinery, which benefits from private electricity supply. In contrast, Jubilee’s Munkoyo and Project G mining operations remain unaffected and on schedule.
The company is actively collaborating with Zambian authorities to manage the timing of outages and power restoration to reduce costs.
However, the uncertainty surrounding Zambia’s national power supply raises concerns about meeting production targets for the second quarter of the 2025 financial year.
Despite these challenges, Jubilee reassured stakeholders on December 17 that further updates would follow as the situation develops. Nevertheless, the company’s share price on the JSE fell by more than 15% following the announcement.
In a positive development, Jubilee has advanced its Large Waste Project in Zambia, targeting over 260-million tonnes of copper-bearing rock.
The company successfully extended the due diligence period to January 2025 and renegotiated better commercial terms for the acquisition.
The revised acquisition cost is now $18-million, reduced from the initial $30-million, with $11.5-million remaining payable by December 2025. Jubilee remains on track to complete due diligence within the new timeline.
Jubilee has also announced the issuance of more than 2.7-million new ordinary shares following the exercise of options at 1p per share.
These shares, representing 0.09% of the company’s enlarged capital, will be admitted to trading on AIM and listed on the AltX of the JSE on December 20. Following this issuance, Jubilee’s total issued capital will exceed three billion shares.
While addressing operational challenges, Jubilee continues to pursue strategic growth opportunities, showcasing resilience and adaptability in a fluctuating environment. Despite this, the share price remains under pressure following the latest announcement.
