Jubilee to Sell Chrome and Platinum Group Metals Business for $90 Million

August 13, 2025 News:

According to a report by *Mining Weekly*, the board of Jubilee has unanimously recommended that shareholders vote in favor of selling the company's South African chrome and platinum group metals (PGM) business to One Chrome for up to $90 million.

In a notice issued on August 12, the company stated that if the transaction is implemented, it will significantly enhance Jubilee's strategic repositioning in the copper industry, supported by a clearly defined peer group, leading to a notable increase in investor recognition and valuation multiples within the copper sector. In contrast, its current chrome-focused processing and PGM tailings recovery operates in a segment with limited peer-assessed returns and is strongly influenced by China's demand dynamics.

According to the board, the proceeds from the sale will significantly exceed Jubilee's short-term capital requirements to establish itself as a large-scale and scalable copper producer, positioning it within an industry with superior valuation metrics. Additionally, the transaction is non-dilutive and will create an opportunity to accelerate a sustainable share buyback program or implement a dividend policy supported by a more stable copper-focused asset base.

Jubilee stated that the transaction values the enterprise value of its chrome and PGM business at approximately $146 million, representing six times its EBITDA for the 2024 fiscal year. The maximum consideration it will receive is $90 million, of which $87 million will be payable without performance conditions. The remaining $3 million will be subject to certain metal price and exchange rate criteria. The buyer will also assume approximately $56.8 million in loans and trade financing, which Jubilee stated will significantly reduce leverage and financing costs, enabling better management of its capital structure and financing strategy to support ongoing operations in Zambia.

The board stated that it views this sale as an excellent opportunity to realize the value of its chrome and PGM business and redirect it into the Zambian copper business. Zambia offers a highly attractive growth platform, driven by robust copper market dynamics, expanding resource potential, and significant economic upside room.

Jubilee also stated that there was no formal competitive bidding for these assets, and transactions of this nature within the chrome and PGM industry, involving the acquisition of processing assets without substantial underlying resources, are extremely limited, with no significant transactions recorded in the past five years. The matter will be put to a shareholder vote at Jubilee's annual general meeting on August 28. The company stated that if the transaction is approved by a majority, it is expected to be completed in the second half of this year. The board of directors stated that it had received letters of support from institutional shareholders representing approximately 30.42% of its issued share capital so far, indicating their intention to vote in favor of the transaction.

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