Jubilee shares gain 9% after latest investment

JUBILEE Metals Group gained ground on Friday after the market applauded news that Indian-born British entrepreneur Vikrant Bhargava had become the latest investor to acquire equity in the JSE-listed company.

The stock was lifted by 9.01 percent to close at 60c a share at close of trade after saying Bhargava owned 9.01 percent of the company, representing more than 167 million voting rights in the UK-headquartered company, which achieved a maiden dividend in the half year to December.

Last month the UK asset management group, Miton Asset Management, increased equity to 6.01 percent, and in December Quantock increased its support and shareholding to 7.78 percent. JIM Nominees Jarvis Acct, HSBC Global Custody Nominee (UK) and HSBC Global Custody Nominee are some of Jubilee’s biggest shareholders.

A UK-based independent investor, who spoke on condition of anonymity, said on Friday that the market was bullish as Jubilee had just achieved a maiden profit.

“This is going to be more attractive to institutional investors,” he said, adding that it was only a matter of time before funds and larger investors took notice.

“I don’t expect that is the end, there are some large buys coming through today (Friday), so expect further announcements about new shareholders within the next seven days,” he said.

The announcements come as Jubilee, which is valued at more than R1 billion, said last week that its recent acquisition, PlatCro Minerals in South Africa, was contributing to earnings ahead of schedule.

The PlatCro chrome project, which was only acquired in January, had contributed R16.1 million combined for January and February – ahead of schedule, it said. Jubilee acquired the Dilokong chrome mine into production in January and had been ramping-up to commercial production levels in March.

Jubilee has been restructuring its portfolio after buying the Sable Zinc refinery in Zambia from two Glencore subsidiaries. It also completed a fund-raising as it moved to ramp up implementation of the Kabwe base metal project in the country.

Jubilee, which is focused on the reprocessing of historical surface mine waste, recorded a maiden profit for the half-year to December up 274 percent to £760 000 (R13.93m) after a £440 000 loss, while revenue had increased 40 percent to £8m.

Production from the group’s Platinum Group Metals (PGM) business more than doubled, jumping 85 percent to 12 288 ounces, while PGM revenue was up 98 percent to £7.09m from R63.59m in 2017.