Jubilee Metals Group PLC (AIM:JLP, JSE:JBL, OTC:JUBPF)'s investment case remains intact, according to WH Ireland, with outside effects responsible for delaying its expansion plans.
The metal recovery firm reported revenues of £63.1mln in the six months to December, in line with its first-half results, alongside pre-tax earnings of £10.3mln, down 25% on the £13.7mln posted in the first half.
WH Ireland was optimistic though, pointing to Jubilee's “outstanding” green credentials and future role in the green transition, given its processing and recovery of metals previously classed as waste.
Analyst Paul Smith added that Jubilee finalising its strategy in Zambia would be a “game changer” too, given the resource-rich nature of central Africa, providing it with future opportunities.
“Low-cost production into a high-price environment promises strong revenues and profits and high returns to shareholders,” he said, “once the plan is firmly in place”.
Jubilee confirmed it had entered new power and water arrangements for its operations in Zambia, having previously faced outages in the area, with the new deals set to “significantly” enhance the security of supply.
Jubilee shares fell 7% to 7.33p following its update.