Aim- and AltX-listed diversified metals producer Jubilee Metals Group has reported a setback in its Zambian operations due to severe power constraints. The company, in its operational and project update for the first half of its 2025 financial year ended December 31, revealed that copper production at its Roan operation fell short of targets, significantly impacted by unstable power supply from the national grid.
While the company achieved a significant increase in run-of-mine (RoM) and in-process stock, reaching an estimated 8 466 tonnes of copper units, the actual production of 1 454 tonnes fell short of the revised target of 1 800 tonnes and the 1 683 tonnes produced in the same period last year.
To mitigate these challenges, Jubilee has taken decisive action. A new power supply agreement has been secured with a diversified provider, ensuring access to multiple power sources and reducing reliance on the unstable national grid. This new agreement, expected to come into effect within seven business days, is anticipated to address the power supply limitations that have severely hampered Roan’s operations.
“Over the past quarter, we have experienced significant challenges in our Zambian operations brought on by extraordinary circumstances outside of our direct control,” acknowledged Leon Coetzer, CEO of Jubilee Metals Group. “We have addressed the power supply challenge by entering into an additional power supply agreement that sources power across a broader generation network to avoid localized exposure to network instabilities.”
Coetzer expressed confidence in a swift return to full production capacity once the new power supply agreement is implemented. “We expect to return to the processing rate previously achieved at Roan once power delivery under the new power supply agreement commences,” he stated.
While Roan operations were impacted, the company achieved positive results at its other Zambian operations. The Sable refinery, strategically located near the power producer, remained operational throughout the period. Munkoyo copper mine also delivered strong performance, achieving mining targets and producing over 70 000 tonnes of RoM per month.
Furthermore, encouraging results were obtained from pilot-scale leach trials at Munkoyo, demonstrating the feasibility of processing all of the mined RoM on-site. This approach is expected to significantly reduce operating costs and minimize the project’s environmental footprint.
“The Munkoyo process trials have delivered very encouraging results, confirming our ability to process all of the RoM mined at Munkoyo on-site at a much lower operating cost and a reduced operating footprint than originally envisaged,” Coetzer emphasized.
Despite the challenges faced in Zambia, Jubilee’s operations in South Africa continued to perform well. The company is on track to achieve and exceed its chrome guidance of 1.65 million tonnes of chrome concentrate for the 2025 financial year. The chrome and PGM business has demonstrated remarkable resilience in navigating the challenging market conditions, implementing operational efficiencies and maximizing throughput.
“In South Africa, the team continues to deliver an exceptional performance. We are well on track to achieve and exceed our chrome guidance of 1.65-million tonnes of chrome concentrate for the 2025 financial year. Our chrome and PGM business has proactively responded to market challenges, ensuring we remain competitive,” Coetzer noted.
While the power constraints in Zambia presented a temporary setback, Jubilee Metals Group remains confident in its long-term growth strategy and its ability to deliver value to shareholders. The company’s proactive approach to addressing the power challenges, coupled with the strong performance of its other operations, provides a solid foundation for future success.
This article provides a comprehensive overview of Jubilee Metals Group’s operational and financial performance during the first half of its 2025 financial year. It highlights the challenges faced in Zambia due to power constraints, the company’s proactive measures to address these challenges, and the continued strong performance of its other operations.