Metals producer Jubilee says they have recieved a conditional binding offer from a private mining and metals trading company to acquire the Group’s chrome and PGM operations in South Africa for a consideration of up to US$90 million (Binding Offer). The diversified metals producer has operations in South Africa and Zambia,

The Binding Offer is subject to a number of customary conditions including entering into final agreements and obtaining shareholder approval for any agreed transaction. Under the terms of the Binding Offer, Jubilee says it will retain all current rights to the Tjate Platinum mining project offering Jubilee continued exposure to the potential upside of the PGM market, while focussing to further advance the Company’s copper strategy in Zambia.

The Jubilee Board has reviewed the offer and recognises the value proposition of the Binding Offer. The company is also reviewing its dividend policy to enable possible distributions to be made to share holdersin future. The company said it will be providing further details to shareholders which will include a circular setting out detailed information on the proposed transaction.

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Background and rationale

In its announcment, Jubilee said the chrome and PGM business has reached a high level of maturity, as an established processor of clients’ and strategic partners’ chrome ores. Further significant growth opportunities are limited and mostly relate to co-investing into mining ventures requiring significant capital outlay. The company added that opportunities in Zambia require a dedicated capital structure and management team. Disposing of the chrome and PGM business allows the Group to wholly focus its efforts on Zambia, where the directors believe there are material opportunities to deliver growth at the existing sites by expanding the portfolio of copper producing assets. Strong copper markets support higher earnings potential resulting in higher margins than that of chrome.

With the anticipated continuing expansion of the world’s growth in electrification generally, renewable power and automotive applications, demand for copper is expected to remain high. Jubilee said it has demonstrated its ability to successfully recover copper from shallow, transitional reefs. Recent trials confirm the Roan concentrator’s capability to maintain a ROM feedstock run rate of between 35 000 to 40 000 tonnes per month (tpm) on the transitional reefs equating to 240 (at 35 000tpm throughput and min Cu grade) to 360tpm of Cu units (at 40 000tpm and targeted Cu grade). At the Company’s Munkoyo mining operations a mine rate of approximately 80 000tpm is ongoing, of which 3 500tpm of high-grade ROM in excess of 2.5% Cu (equivalent to 88TCu per month) is delivered to the Company’s nearby Sable Refinery. At Project G the mine is currently undergoing work to upgrade its resource and to complete the design of an open-pit expansion.

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Jubilee recently continued to expand its near surface mining portfolio with the execution of two further agreements offering the exclusive right to perform its due diligence on these properties with the option to purchase the rights pending the outcome of the due diligence. The introduction of the second tank-house at Sable in Q1 CY2026 will increase the capacity to approximately 14 000tpa which would accommodate the production from the modular units for both the nearby Munkoyo operation and Project G.

At the Large Waste Project, Jubilee has entered into negotiations with various parties to potentially invest into the construction of the targeted modular processing units for the Project. The targeted companies offer more attractive investment terms under a partnership agreement approach than offered previously by the Abu Dhabi based invest firm, which is preferred by Jubilee and is also non-dilutive for shareholders.

The refinery expansion was delayed over the past quarter to prioritise investment into these mining operations and the completion of the processing trials at Roan. Completion of the Sable expansion is scheduled for Q1 CY2026. Zambia holds additional potential opportunities which Jubilee seeks to secure. Jubilee’s in country operational presence and processing know-how, positions Jubilee well to pursue these opportunities.

Leon Coetzer, CEO of Jubilee, commented: “The Board has reviewed the terms of the offer and feel it is an opportune time to accept a fair value offer for the chrome and PGM operations at a time when the two segments of the Company are on markedly divergent paths.

After years of effort and investment, the South African business has reached a stage of maturity that would require a large capital outlay to achieve any step change in production going forward. On the other hand, in Zambia, the potential capital returns and earnings growth offered from our exciting suite of assets could not be more evident. Execution of Jubilee’s copper strategy has gained significant traction with Roan now fully operational and the near surface mining opportunities, such as Munkoyo and Project G, which offer significant growth opportunities. The staggered nature of the proposed acquisition consideration, along with funds from the expected sales of non-core assets in Zambia, and project specific funding discussions, align with our future capital growth plans in the country.”