Jubilee Metals Group PLC (AIM:JLP, JSE:JBL, OTC:JUBPF)’s next growth engine is expected to come from Zambia, where the company is targeting copper production of more than 31,000 tonnes per year from two refineries, said broker WH Ireland.
The next phase of growth will establish Jubilee, which processes mostly mine tailings and dumps across different commodities, as an important regional player and a one-of-a-kind metals recovery business, said WH Ireland.
“Jubilee has made progress and its growth in revenues and profits over the past few years has been remarkable and market-leading,” the broker said in a research note.
“We see the potential for further enhancements to its project portfolio and see fair value at 29p/share.”
Jubilee shares were 16.85p in London in mid-morning trading.
“Following the recent £30mln fund raise, Jubilee has strengthened its position in Zambia and articulated its growth strategy for copper. It expects this strategy to form the blueprint for continued opportunities in Zambia and, in our opinion, over the border into the DRC [Democratic Republic of Congo].
“There is a great opening for a company that can crack the recovery of the remaining copper in the decades-old piles of tailings in this rich copper-cobalt producing region,” said WH Ireland.
Last month, Jubilee said it was targeting the construction of a further two copper concentrating facilities as part of its Northern Zambian refining strategy.
READ: Jubilee Metals says Project Roan nearly complete, finishes Inyoni PGM upgrade
The mainstay of current cashflow for the company is in South Africa where it is also ramping up its operations after securing its own supply of feed as well as tying in third-party offtake contracts.