Our opinion on the current state of JUBILEE(JBL)

Jubilee Metals Group (JBL) is a distinguished player in the metals recovery industry, primarily focused on the reprocessing of mine waste and surface materials. The company is listed on the London AIM market and the Johannesburg Stock Exchange's Alt-X. Its geographical footprint spans across South Africa, the UK, Madagascar, Australia, and includes a joint venture in Zambia, underscoring its international operations and strategic diversification.

Jubilee primarily produces platinum group metals (PGM) and chrome. One of its significant assets is a 63% stake in the Tjate project on the Western limb of the Bushveld Igneous Complex, which is noted for being the world's largest undeveloped block of platinum ore with an estimated potential of 65 million ounces. Despite the high potential of this asset, in recent years, Jubilee has shifted its focus towards smelting and beneficiation as a strategic move to enhance cash flow and operational sustainability.

In a recent expansion of its operations, Jubilee invested approximately R154 million to consolidate its PGM retreatment business. This investment was directed towards acquiring a chrome processing operation and approximately 1.8 million tons of tailings from PlatCro Minerals, further bolstering its resource processing capabilities.

Jubilee's financial performance for the six months ending on 31st December 2023 demonstrated significant growth, with an 18.4% increase in revenue. PGM production rose by 11.2%, and chrome production increased by 7.4%. The company also reported strong growth in its Zambian copper operations, driven by ongoing investment in expansion projects and an anticipated sharp increase upon the completion of upgrades to the Roan copper concentrator.

The first quarter of 2024 saw Jubilee achieving record monthly chrome production of 408,710 tons, a substantial increase from 381,114 tons in the previous quarter. However, PGM production experienced a slight decline of 3.6% year-to-date. Despite this, Jubilee remains optimistic about its capacity for continued growth and operational success, as reflected in its latest quarterly update.

Jubilee Metals Group's strategic approach to resource recovery and beneficiation, combined with its international diversification and focus on low-cost production, positions it as a compelling option within the mining sector. However, potential investors should be aware of the inherent volatility and risks associated with the commodity markets and the specific challenges of metal recovery operations.

On 12th December 2023, Jubilee announced the acquisition of one of the largest dumps of copper waste in Zambia, which notably increased the share price by 19%. The company's share price trajectory recently confirmed a positive shift as it broke through the long-term downward trendline on 8th April 2024 at 171 cents per share, suggesting a potential bullish trend in the near term. Despite the promising aspects, the investment in Jubilee Metals should be approached with caution, considering the fluctuating nature of commodity prices and the specific challenges facing the mining and metals recovery sectors.