Jubilee Metals Group Reports Decline in Pretax Profit for Fiscal Year 2023

Jubilee Metals Group, a metals-processing company, has announced that its pretax profit for fiscal year 2023 has more than halved. This decline in profit can be attributed to lower prices and higher operating costs for platinum group metals (PGM) as well as a decrease in copper revenue. However, the company remains optimistic about its production targets for fiscal year 2024.

Key Details

• In the year ended June 30, Jubilee Metals Group’s pretax profit fell to £12.3 million ($15.1 million), compared to £26.5 million in fiscal year 2022.
• The decline in pretax profit is primarily due to a 22% decrease in PGM prices, an 11% increase in operating cost per ounce of PGM, and a 19% fall in copper revenue per metric ton.
• Despite these challenges, overall revenue increased to £141.9 million from £140.0 million in the previous year. This growth was driven by an increase in chrome revenue, which offset the decrease in PGM revenue caused by market conditions.
• Jubilee Metals Group sold a total of 42,433 PGM ounces, exceeding the guided target of 38,000 ounces. Additionally, the company sold 1.28 million chrome tons, surpassing the targeted 1.2 million, but fell slightly short of the guided target of 3,000 copper tons, selling 2,923 tons instead.

Outlook for Fiscal Year 2024

Looking ahead to fiscal year 2024, Jubilee Metals Group is confident in its production targets:

• The company aims to produce 1.45 million tons of chrome concentrate.
• Targeted PGM production is set at 42,000 ounces.
• The company aims to produce 5,850 tons of copper.

Stock Performance

As of 0702 GMT, Jubilee Metals Group’s shares are down 0.4 pence, or 5.7%, currently valued at 6.6 pence.