In a recent interview, Proactive's Thomas Warner sat down with Jubilee Metals Group PLC (AIM:JLP, JSE:JBL, OTC:JUBPF) CEO Leon Coetzer to discuss a groundbreaking development in the company's growth trajectory.
The company announced a significant deal with International Resources Holding RSC (IRH) from Abu Dhabi, focusing on extracting copper from a substantial waste rock dump in Zambia.
This interview delves into the details of the deal, its implications for Jubilee's future, and how it aligns with its broader strategy in the copper industry. Coetzer provides insightful details on the scale of the project, the partnership's dynamics, and the strategic capital-raising efforts that underpin this ambitious endeavour.
TW: Leon, it's been a pivotal week for Jubilee Metals Group with the announcement of a significant deal in Zambia. Can you share the details and the impact this will have on your company?
LC: Absolutely, Thomas. This week marks a transformative phase for Jubilee. We've secured nearly 350 million tonnes of high-grade copper waste rock in Zambia, arguably the largest surface copper resource in the region. This acquisition, combined with our partnership with International Holdings Corporation’s subsidiary IRH, propels us into a new realm of copper production. We're not just surpassing our previous target of 25,000 tonnes; we're setting sights far beyond, thanks to the financial strength of IHC. It's a game-changer for us, positioning Jubilee on a much larger scale in the copper industry.
TW: With such ambitious plans, how significant is the recent capital raise for Jubilee, and how do you address concerns about its dilutive nature?
LC: The capital raise is critical for us, Thomas. It's targeted and deliberate, aimed at accelerating our project. We're using this time to secure manufacturing capacity for our processing plants, potentially advancing our timeline by several months. This move puts us in a fully funded position, reducing our capital burden significantly. Although it's somewhat dilutive, the value it adds by fast-tracking our earnings and reducing future capital requirements is immense. We're transitioning into a capital-light future, focusing on free cash flow and potential shareholder distributions. This week is not just about growth; it's about strategic, sustainable expansion.
TW: Reflecting on this milestone, how do you view the future of Jubilee Metals Group, especially in light of this new venture?
LC: This week is undoubtedly one of the most significant in Jubilee’s history. The sheer magnitude of the asset and our partnership with IHC, which are strategically focusing on copper, positions us uniquely in the market. We're not just expanding; we're becoming a significant player in green copper production from waste, aligning perfectly with IHC's strategy. This partnership and our recent developments put us firmly on track to deliver a large-scale strategy that was once questioned due to capital constraints. We're now demonstrating how we can effectively implement this ambitious plan.