13th Jan 2025 12:15
(Alliance News) - Jubilee Metals Group PLC on Monday reported its copper production fell short of guidance for the first half of its financial year as the company grappled with electricity outages in Zambia.
The London-based metal processing company said copper production in Zambia was down 14% to 1,454 tonnes for the first six months that ended December 31 from 1,683 tonnes a year before, well below its revised half-year target of 1,800 tonnes. It blamed power constraints in that country.
The completion of its Zambia's Roan copper concentrator upgrade reached ramp-up throughput targets of a combined 45,000 tonnes per month during the six months period before experiencing shut-downs due to power supply limits.
The Sable refinery, also in Zambia, was able to continue operating and remains operational given its proximity to the power producer. Copper production at Munkoyo open-pit operations were also unaffected by power constraints.
In South Africa, chrome in concentrate production reached record highs on the back of the successful commissioning of two further chrome processing units, increasing by 36% to 974,659 tonnes from 718,189 tonnes, well on track to meet and exceed full year guidance of 1.65 million tonnes.
Platinum group petals production fell to 18,435 ounces from 20,244 ounces, on track to meet full-year guidance of 36,000 ounces.
Jubilee said its annual copper production guidance is under review until such time a consistent power supply is established and Roan is brought back into operation.
"Over the past quarter, we have experienced significant challenges in our Zambian operations brought on by a combination of extraordinary circumstances outside of our direct control," Jubilee Chief Executive Officer Leon Coetzer said.
On Monday afternoon, Jubilee shares rose 15% to 3.90 pence each in London on Monday afternoon. In Johannesburg, they advanced 6.2% to ZAR0.86.
By Artwell Dlamini, Alliance News reporter
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