Dividends in Sight as Jubilee Metals Eyes South African Exit

Jubilee Metals Group could start paying dividends as it considers a $90 million offer to sell its chrome and platinum group metals (PGM) operations in South Africa. The conditional binding offer, from an undisclosed private mining and metals trading company, would see Jubilee exit all South African operations except for the Tjate platinum project and focus solely on its copper assets in Zambia.

Possible Dividends on the Horizon

The board has recognised the value proposition of the offer and is reviewing its dividend policy to enable possible future shareholder returns. The deal remains subject to shareholder and regulatory approvals, as well as final agreements.

Strategic Shift Toward Zambia

The group views this potential transaction as a strategic shift away from its mature South African chrome and PGM operations, which would require significant capital to grow further. In contrast, Jubilee believes Zambia offers stronger market dynamics and greater potential for capital returns through the expansion of its copper portfolio.

“The board has reviewed the terms of the offer and feels it is an opportune time to accept a fair value offer for the chrome and PGM operations at a time when the two segments of the company are on markedly divergent paths,” said the CEO. He highlighted Zambia’s near-surface copper assets like Munkoyo and Project G, along with the fully operational Roan concentrator, as core to Jubilee’s future growth plans. "The staggered nature of the proposed acquisition consideration, along with funds from the expected sales of non-core assets in Zambia, and project specific funding discussions, align with our future capital growth plans in the country," he added.

Jubilee Metals Group currently operates exclusively in South Africa and Zambia, with its portfolio focused on chrome, platinum group metals (PGMs), and copper.  

Key operational highlights include:

South Africa:

• Jubilee is a high-margin platinum producer with operations centred around the Inyoni PGM Processing Plant.
• Its distributed Chrome Processing Modular Facilities serve a diversified client base, offering first- and second-tier chrome producers access to world-class chrome beneficiation infrastructure.

Zambia:

• The company aims to replicate the South African modular model in its copper operations.
• This strategy supports scalable, low-cost expansion and strengthens its position in a high-growth copper market.

Capital Raise to Fund Expansion

To support its Zambian expansion, Jubilee has secured additional high-grade copper feedstock for the Roan refinery and will issue approximately 74.7 million new shares at 4.15p each, raising $3.1 million.

This follows a similar capital raise earlier in the year to boost Roan’s capacity, contributing to a 51% increase in annual copper output between FY2022 and FY2024. Jubilee’s long-term strategy includes completing the second tank house at its Sable refinery by early 2026 and deploying modular processing units across new mining sites, further strengthening its position in the growing global copper market.

It's worth taking into account the fact that the binding offer is subject to customary conditions, including final agreements (Definitive Agreements) and shareholder approval; Jubilee will provide further details to shareholders, including a circular outlining the proposed transaction and its strategic implications.

Participation for EasyEquities Investors

EasyEquities investors who hold shares in Jubilee Metals Group will also have the opportunity to participate in the shareholder meeting once the transaction becomes official. Attending the Annual General Meeting (AGM) or Extraordinary General Meeting (EGM) allows shareholders to vote on key matters, such as approving the proposed transaction. Here’s what you need to know to take part:

AGM or EGM Invitation

• If you're a shareholder, you'll receive an invitation to the AGM via the company’s transfer secretary (e.g., Computershare), either by email or post.

Share Ownership Cut-Off

• Only shares you own or purchase by the Last Day to Trade will count toward your right to attend and vote. Shares bought after this date won’t qualify you to participate as a voting shareholder. Note: shares need time to settle, so ensure they are purchased within the required settlement period on or before the Last Day to Trade.
• Only full shares carry voting rights; fractional shares do not have voting rights.

What to Bring to the AGM

• A valid ID
• A letter of representation from EasyEquities. To obtain this, email corporateaction@easyequities.co.za from the email address linked to your EasyEquities account.
• You can only apply for the letter after the Record Date, once our team confirms your name is on the register.

This process ensures that EasyEquities investors are able to participate meaningfully in important shareholder decisions, including votes related to the proposed sale and future dividend policy.

Conclusion 

As Jubilee Metals Group considers this major strategic transition, investors should closely monitor several key developments. These include the finalisation of the definitive agreements, the outcome of shareholder and regulatory approvals, and any updates to the company’s dividend policy.

The shift toward a copper-focused portfolio in Zambia, backed by additional capital raises and infrastructure expansion, signals a long-term growth trajectory that could enhance shareholder value. Investors should stay informed on meeting dates, deadlines like the Last Day to Trade, and documentation required to participate and vote.

Government bonds offer a reliable way to earn fixed income by lending money to the government in exchange for regular interest payments. 

Dividends are one of the many key components of investing, representing a share of a company's profits distributed to its shareholders. 

Special dividends, also known as extraordinary dividends, are one-time payments made by companies to shareholders due to specific financial events, like windfall profits or asset sales.