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Highlights

  • In H1 FY24, JLP’s revenue and EBITDA grew around 18.4% and 13.6%, respectively, on a YoY basis.
  • The company has lower debt and higher margins, with a debt-equity ratio of 0.11x vs. an industry median of 0.35x and a net margin of 5.8% vs. 1%.
  • The company achieved front-end upgradation of the Roan Concentrator and started the expansion of the copper sulphide circuit (targeted for operation in Q3 CY2024).

Listed on the FTSE AIM All-Share Index, Jubilee Metals Group PLC (LSE: JLP) is a prominent metals recovery group specializing in metal processing. The company’s project operations include the processing of chrome, platinum group metals (PGM), lead, copper, zinc, and vanadium.

In the first half of FY24, the company’s revenue grew around 18.4% year on year (YoY) and its EBITDA rose approximately 13.6% YoY. The company attributes the growth to improved average copper cathode market prices and an 11.2% increment in production of platinum group metals (PGM).

The company also had some industry-beating margins in the reporting period, with a debt-equity ratio of 0.11x compared to the industry median of 0.35x. Its net margin stood at 5.8% compared to the industry median of 1%.

Recent business update

JLP is enhancing its operations through strategic investment and product expansion. In H1 FY2024, the company achieved front-end upgradation of Roan Concentrator. It also started the expansion of the copper sulphide circuit (targeted for operation in Q3 CY2024).

Company outlook

Below is the company’s production guidance for FY24:

  • Zambia: Copper - 5 850 tonnes
  • South Africa: Chrome and PGMs - 1 450 000 tonnes chrome concentrates; 42 000 ounces PGMs. Further, it is striving towards self-funding growth to achieve 2 metric tons of chrome concentrate by 2025.

Overall, the company claims to be well poised to deliver an improved Q4 performance, with enhanced production anticipated across all commodities.

Top 10 Shareholders

The top 10 shareholders collectively hold about 59.54% of the company's total stake. Slater Investments Ltd. Is the lead investor with around 12.20% shareholding, followed by Fidelity International with approximately 8.93%, as illustrated in the chart below:

Stock performance

The stock price of JLP surged by around 16.32% in the last one month and over the last six months, it has increased by around 27.09%. The stock’s 52-week low and 52-week high stand at GBX 4.60 & GBX 9.50, respectively. It is currently trading below the average of 52-week high-low.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 30 April 2024. The reference data in this report has been partly sourced from EODHD/Others.