RE: Fire sale5 Jun 2025 15:06
The Zeus view on the "Fire Sale"
The chrome-PGM assets for sale. The assets include the toll milling chrome recovery plants (Inyoni, Windsor and Windsor 8), the chrome plants at Thutse which are, combined, capable of producing ~1.85Mt/yr of chrome concentrate. Waste from the plants feeds the Inyoni PGM flotation plant capable of producing 38-40koz PGM/year with an agreement for excess waste to be treated by a nearby PGM producer. Last FY (ending June 2024) the PGM-chrome division generated an EBITDA of $24.5m, in the six months to December it had already generated EBITDA of $16.5m, with the anticipation of a better H2 financial performance driven by increased production through Thutse and the chrome price. Focus on copper in Zambia now assured, with the capital to carry out its ambitions. The recent RNS updating the market on Zambia (28.5.2025) showed that the Roan concentrator was up and running and capable of producing 4.4kt/yr of copper units with most for the Sable refinery with further units from Munkoyo high grade and a low-grade leaching project of up to 1.4kt/yr copper from high grade ore and a further 4kt/yr from the low grade ore upgrade project. Jubilee expects similar production from Project “G” which will fill the Sable expanded capacity of 14kt/year of copper cathode. At full production of 14kt/yr in FY2028 (Zeus view), the current copper price and a cost of $5,000/t copper – The Sable-Roan-Munkuyo-“G” complex could produce an EBITDA of ~$50m. Zambia upside. With the large waste project (~20kt/yr copper production) and two new near surface mining opportunities already in due diligence the potential for Jubilee copper production to grow further is considerable.