ZEUS VIEW16 Apr 2025 07:39
Zeus view: Todayβs update for Jubileeβs South Africa operations is encouraging - chrome and PGM production is up year to date and is set exceed the initial forecast. Revised full-year guidance indicates that chrome concentrate production will increase by 200kt, and 6E PGM will increase by 2,000oz. This will clearly boost underlying profits in South Africa. This outperformance underlines the successful installation and commissioning of two new chrome processing modules at Thutse and is testament to Jubileeβs technical capacity. Looking forward, the recently signed joint venture to process more of Thutseβs growing PGM stockpile with a βlocal PGM producerβ and produce an extra, up to, 11,500 ounces of 6E PGMβs a year (50% profit attributable to Jubilee) will further boost the bottom line. Our forecasts and fair value remain under review until we can assess properly the new production guidance from Zambia. What todayβs news does remind us though, is that Jubilee is not wholly dependent upon Zambia and that South Africa will contribute significant revenues and profits to the business.
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