London and JSE-listed Jubilee Metals Group was one of the worst performers on the JSE Monday after lower chrome prices and power constraints drove earnings down, in spite of a strong surge in revenue.

The share price traded 12.9% lower at 81 cents a share on the JSE late Monday, a decline that far outstripped the already sharp 4.09% decline in the JSE Industrial Metals and Mining Index.

“The first half of the 2025 financial year was one of both success and challenges,” CEO Leon Coetzer said in a statement.

“While we were able to deliver our Roan expansion project in Zambia and begin the parallel processing of waste and run-of-mine material, severe power disruptions on the grid at the end of the period meant this start-up was short-lived.”

Jubilee, which has copper operations in Zambia and chrome and PGM operations in South Africa, said group revenue increased by 51% to $141.5 million (R2.61 billion) for the six months to December 31, 2025, due mainly to increased production of chrome concentrates.

However, group earnings before interest, tax, depreciation and amortisation (EBITDA) fell by 6.8% to $13.6m, impacted by softer chrome prices. Some $17.8m was also invested in the expansion of its copper and chrome operations.

Cash of $8.4m at the end of the period was well down from $19.3m at the end of June 2024.

In Zambia, copper revenue increased 5.1% to $8.3m. Copper cost per ton increased by 30.6% to $5 948 per ton due to a one-off contractual adjustment of $573/t to the price of copper ore purchased and the impact of plant stoppages due to power constraints. Gross profit from copper fell 88% to $0.3m, driven mainly by the commissioning of Roan operations and subsequent stoppage due to power interruptions.

In South Africa, chrome revenue increased by 75.9% to $114.5m supported by increased production from the two new chrome processing modules.

Revenue per ton of chrome concentrate increased by 23.3% to $111/t supported by the sale of chrome concentrate at prices above historically fixed margin chrome contracts.

Average cost per ton of chrome concentrate increased by 30.3% to $99/t, which was in line with a strategy to increase the proportion of third-party run-of-mine material (ROM) purchases to the historically fixed margin chrome contracts.

Chrome gross profit increased by 31.1% to $13.1m supported by a higher contribution from chrome sales realised from third-party ROM purchases.

PGM revenue decreased by 9.2% to $18.8m mainly due to a decrease in PGM ounces produced of 8.9%, which in turn was from a shifted priority towards chrome recoverability during the first quarter to capitalise on favourable chrome market conditions resulting in lower PGM feed grades.

PGM cost per ounce decreased by 20.1% to $616/oz. PGM gross profit increased by 45.1% to $7.4m. The average LME copper price was flat at $ 9 193/t for the period. The average CIF chrome price per ton declined from $309/t during the first quarter of the 2025 financial year to $252/t, and it fell to as low as $200/t towards the end of the second quarter.

The average PGM basket price remained flat at $1 360/ox for the period.

The Roan copper concentrate facility from tailings upgrade and commissioning was completed, reaching ramp-up targets before experiencing shut-downs to protect equipment due to power constraints.

Copper ROM (run of mine) production at Munkoyo was unaffected by power constraints: Munkoyo was on track to achieving its targeted production of low-grade ROM for future processing; and high-grade ROM delivered to Sable for refining.

In South Africa, the new chrome processing modules built at Thutse, with a production capacity of 50ktpm of chrome concentrate were commissioned. The modules contributed to a record quarterly chrome concentrate production for the second quarter of 519 278t.

On January 21, 2025, in Zambia, Jubilee reached an additional power agreement with a new broad-based power provider to supplement the existing power supply agreement, to achieve steady power supply at Roan.

On February 14, 2025, Jubilee announced that Roan had commenced with the processing of new high-grade copper feed material.

“I am particularly excited by the continued development and expansion of our Munkoyo Open-Pit mine which offers the potential to significantly boost copper output at our Sable Refinery,” said Coetzer.

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