Leon Coetzer
CEO: Jubilee Metals
‘Our copper business is stabilising ahead of a new phase of growth’
LEON Coetzer performed a ‘get the hell out of Dodge’ last year by taking Jubilee Metals out of South Africa in order to focus on the group’s Zambian copper operations. But was the $90m sale of its South African platinum group metal and chrome assets the smartest move or simply a doubling down on Zambia’s political risk? That remains to be seen.
Since 2021, the stock is about 80% weaker. Green shoots have been in evidence lately, but Coetzer will want to see a vast improvement in the firm’s operating performance and then hope Zambia’s risk premium doesn’t weigh too heavily on Jubilee’s valuation, especially at a time of record copper prices. Zambia, on the face of it, is supposed to be a better mining destination than much-maligned South Africa, yet it has a volatile history. Current President Hakainde Hichilema seems pro-mining and has taken several steps to help the industry.
But Zambia, like many African countries, is overhauling its mining regulations that govern permitting. Who knows what might come out of that or what could happen if Hichilema gets replaced? Coetzer reckons the South African business was “ex-growth” requiring major new capital investment which, it seems, Jubilee was loath to spend. Coetzer believes the capital returns and earnings growth from Jubilee’s “exciting suite of assets” in Zambia is the better option.
LIFE OF LEON
He’s a metallurgist by trade, with a degree in chemical engineering. He started his mining career at Anglo American where he spent 20 years, of which 16 were with Anglo American Platinum (now Valterra Platinum). He’s been running Jubilee as CEO since 2010 when he replaced former CEO Colin Bird, who became chairman but has since retired. Coetzer’s interaction with shareholders could be characterised as “lowkey optimistic” but there’s still a lot to be done to deliver on his forecasts.
