This article first appeared on GuruFocus .
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Revenue:Details not explicitly mentioned in the transcript.
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Net Income:Not directly referenced in the transcript.
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Disposal Group Accounting:South African operations accounted as a disposal group and discontinued activity.
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Zambia Operations:Results shown in isolation in the interim financials.
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Exceptional Items:Mention of extraordinary and exceptional items affecting earnings.
Release Date: April 07, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Jubilee Metals Group PLC ( JUBPF ) reported improvements in interim financials compared to previous years.
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The company successfully received $25 million from One Chrome on time, with no delays or deductions.
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PGM prices saw a significant increase, benefiting the company's revenue.
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Zambian operations showed revenue and profit growth, aligning with internal expectations.
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The company is actively addressing sulfuric acid supply issues with government support to prevent future disruptions.
Negative Points
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The financial reporting was complicated by the sale of South African operations, leading to unclear interim results.
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The appreciation of the South African rand negatively impacted the Chrome operations, resulting in higher costs.
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The combined PGM and Chrome operations produced a net loss of $4.5 million for the six months.
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Zambian production levels did not meet management's expectations due to various challenges, including weather conditions.
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The company faces potential increases in transportation costs due to rising diesel prices in Zambia.
Q & A Highlights
Q: Is Jubilee Metals a going concern? A: Jonathan Morley-Kirk, Finance Director, confirmed that Jubilee Metals is considered a going concern. The audit of the annual financial report for the year ending June 30, 2025, included a going concern statement signed by auditors and the Board, valid until December 2026. He expressed confidence in the company's status but acknowledged the unpredictability of future events.
Q: Is any provision required against the receivable from One Chrome? A: Morley-Kirk stated that no provision is required against the receivable from One Chrome. The company has received $25 million of the $90 million due, with payments on time and without deductions. The relationship with One Chrome is professional, and there are no current concerns about their creditworthiness.
Q: Were the results of the South African operations in line with management's expectations? A: The results were impacted by the strong rand against the US dollar, affecting Chrome operations. While PGM prices increased significantly, the combined operations resulted in a net loss of $4.5 million, lower than expected. The Zambian operations met internal expectations, but production levels were slightly below target due to various factors, including weather conditions.
Q: What are the challenges related to sulfuric acid supply? A: The supply of sulfuric acid, crucial for copper production, is a concern. Mopani, a key supplier, has halted production due to facility issues, while a Chinese supplier has reduced output. The Zambian government has restricted exports to the DRC to address local supply concerns. Jubilee is exploring options to secure supply, including potential collaborations with other producers.
Q: What is the status of financing costs after the sale of South African operations? A: Following the sale to One Chrome, financing costs related to South African operations have reduced. The only remaining asset in South Africa is Tjate, which is debt-free. In Zambia, the company is working to align financing structures, aiming to match long-term assets with long-term liabilities, a process expected to be addressed in the next six-month update.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
