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Some investors choose to focus on FTSE 100 giants when allocating capital. Others focus on penny stocks. Yet in between, there are plenty of other growth shares that could offer strong returns. Here’s one I’ve spotted that’s been surging in recent weeks.
The recent surge
I’m talking about Jubilee Metals Group (LSE:JLP). The stock’s up 56% over the past month, and 20% over a one-year period.
It’s received a starburst recently, thanks to the completion of the sale of its South African chrome and platinum group metals assets. This provides several reasons for investors to cheer.
Firstly, it provides cash from the sale being received in instalments. Further, this simplifies its business and strengthens its balance sheet. Finally, it allows the company to focus now on related copper projects, which could have large potential.
Tied to this last point is optimism about copper prices. Back in late November, the firm reported a 65% rise in quarterly copper production versus the previous quarter. Since then, the price of copper has skyrocketed. Therefore, investors are logically expecting the business to benefit from this move in the coming quarters. It should result in higher revenue and, ultimately, higher profit.
Direction from here
Jubilee’s strategy has pivoted strongly towards copper production in Zambia. I think this is a very smart move, as the metal’s becoming increasingly valuable as the global economy shifts to electrification, renewable energy, and infrastructure build-outs.
Jubilee production forecasts for fiscal 2026 show copper output potentially more than doubling from the previous year. Copper’s up 45% in the past year, with some analysts forecasting it could gain a similar rise in the coming year. Therefore, if Jubilee can double output and double the sale price of the copper it produces, profits could increase significantly.
Remember that the company will also have more cash (from the South African sale), allowing it to invest more heavily in growth areas, such as Zambia. This leads me to conclude that the share price overall could benefit in the coming year.
The bottom line
With a market-cap of just £154m, the potential for the share price to increase by a large amount is definitely there. I think we could see earnings per share rise to £0.022 ($0.03) in the coming year. Given the nature of this growth stock, if it traded at a price-to-earnings ratio of 20, it could be trading at 44p, almost 10x the current price. If someone had £100k to invest as a lump sum, it could indeed be considered a millionaire-maker stock.
Of course, there are risks. Commodity price volatility can work both ways, so weaker metals markets would dampen financial results. Further, with a lot of hope pinned on just one area, it doesn’t have much diversification to help earnings if copper doesn’t perform as expected.
Even with these concerns, I feel it’s a stock worthy of consideration for investors who acknowledge the risks involved.
