TIDMJLP
RNS Number : 0648B
Jubilee Platinum PLC
30 March 2017
Replacement announcement
This announcement is made in replacement of the announcement
released at 12:15pm on 30 March 2017. Due to a technical error, the
original announcement omitted a table summarising the production
and financial performance of the DCM operations for the period
under review, which is now included.
("Registration number: 4459850")
AIM share code: JLP
AltX share code: JBL
ISIN: GB0031852162
Not for release, publication or distribution in whole or in part
in, into or from any jurisdiction where to do so would constitute a
violation of the relevant laws or regulations of such
jurisdiction.
30 March 2017
Jubilee Platinum Plc
("Jubilee" or "the Company")
UNAUDITED INTERIM RESULTS
FOR THE SIX MONTHSED 31 DECEMBER 2016
The Directors of AIM-quoted and AltX-listed Jubilee, the
Mine-to-Metals company, are pleased to announce the unaudited
interim results of the Group for the six months ended 31 December
2016.
The interim results and post review period activities reflect
the Company's transformation and continued strong growth in
establishing itself as a significant player in the recovery of
metals from at or near surface material leveraging off its in-house
metallurgical expertise. These activities are anchored by the
Companies world class Tjate platinum project now holding a fully
executed mining right. Recently announced and completed
transactions coupled with the commissioning of both its Dilokong
Chrome Mine ("DCM") operations and Hernic Ferro Chrome ("Hernic")
operations are not only transformational for Jubilee but also puts
the Company in a strong position to continue to grow its position
in the platinum and associated base metals industry.
Comparative financial and operational numbers are skewed by this
transformational period experienced by the Company over the past 18
months. The interpretation of the financial and operational results
is impaired by the number of corporate activities and transactions
that were concluded over the last 18 months which includes the
disposal of the Company's Middelburg Operations, the commissioning
of the DCM chromite processing plant and the construction in
progress of the Hernic platinum and chrome processing plant while
including the ongoing strengthening of the Group's balance sheet as
it progresses with its Mine-to-Metals strategy. The Hernic platinum
and chrome operations were commissioned in February and March 2017
which falls outside of the financial period under review and are
not reflected in these results.
HIGHLIGHTS
Financial highlights
These financial highlights are based on the operational
performance of the Group's projects to enable a comparison of
performance and growth. (i)
- Group revenue and gross profit up significantly to GBP 4.86
million (ZAR 86.80 million) and GBP 0.91 million (ZAR 16.20
million) respectively with very limited revenue following the
disposal of the Middelburg Operations in the comparative period to
end Dec 2015.
- The Company's accelerated capital investment in its surface
processing projects up significantly with project capital
expenditure for the Group to 31 December 2016 totalling GBP 11.18
million (ZAR 190.02 million) ((2015: GBP 0.04 million (ZAR 0.71
million)).
- Income received by Jubilee from the DCM projected amounted to
GBP 1.36 million which comprised of operational earnings from the
DCM project for the period under review of GBP 0.98 million (ZAR
23.92 million) and working capital loan repayment of GBP 0.38
million (ZAR 6.67 million) by DCM to Jubilee.
- Operating costs for the period (excluding depreciation and
amortisation), are down 37% to GBP 1.10 million (ZAR 20.30 million)
compared to the comparative period (ii).
- Post the period under review, project debt, disclosed in the
statement of financial position under other financial liabilities,
reduced by 22% or GBP 1.44 million (ZAR 20.06 million) through
repayments of project debt from earnings generated.
- Group loss for the period from continuing operations down
68.65% to GBP 0.53 million (ZAR 9.43 million) compared to the
comparative reporting period.
- Group loss per share for the period from continuing operations
down 78% to 0.05 pence (ZAR 0.95 cents) compared to the comparative
period.
(i) Conversion rates used for revenue and earnings are at the
average conversion rate for the period and for conversion rates
used for capital expenditure are at the spot rate at period end and
current spot rate for capital expenditure post the period end
(ii) Refer to note 2 of the financial statements
Operations and Projects highlights
Dilokong Chrome Mine Platinum and Chrome Tailings Operation
("DCM operation")
- The DCM operation (chromite recovery section) reached full
operational stability in Q4 2016.
- The DCM operation produced 47 667 tonnes (15 188 tonnes for Q1
and Q2 2016) of saleable chromite concentrate for the period under
review resulting in a project revenue of GBP 4.84 million (ZAR
85.02 million) compared with GBP 1.00 million (ZAR 19.14 million)
for Q1 and Q2 2016.
- Total DCM operational earnings increased to GBP 3.385 million
(ZAR 54.50 million) from GBP 0.744 million (ZAR 14.20 million) for
Q1 and Q2 2016 of which GBP 1.36 million (ZAR 30.58 million) is
attributable to Jubilee.
- Post the period under review, the DCM operation commenced
processing of 3(rd) party PGM ("Platinum Group Metals")-bearing
chromite ore in addition to the processing of tailings material.
The 3(rd) party ore agreement affords Jubilee the right to the
majority of earnings generated by the processing of 3(rd) party
ore.
- The platinum processing options for the PGM material after the
chromite recovery were reviewed: the preferred option is a combined
on-site upgrading of platinum content of PGM material to double
approximately the in-situ value prior to toll processing the
upgraded PGM material.
- The Company is in discussions to conclude a commercial
arrangement for the toll processing of the upgraded PGM
material.
Hernic Ferro Chrome Platinum and Chrome Tailings Operation
("Hernic operations")
- Construction of the 660 000 tonnes per annum platinum and
chromite processing plant commenced with commissioning as scheduled
in December 2016.
- Project Capital expenditure to 31 December 2016 totalled GBP
10.00 million (ZAR 167.10 million) which represents 85% of the
projected total capital spent for the Project which is in line with
the targeted milestones of the project.
- Since the period end, capital expenditure has increased to GBP
11.64 million, at current conversion rates, (ZAR 186.76 million)
which represents 95% of the projected capital spent with the
remaining 5% of project capital linked to the performance of the
project.
- First chromite concentrate product from the Jubilee chromite
recovery plant ("CRP") was delivered post the period under review
in February 2017.
- The PGM recovery plant ("PGM Plant"), which follows the CRP,
was tied in to the CRP post the period under review during February
2017.
- Commissioning and ramp-up of the fully integrated Hernic
operation commenced on schedule with the first platinum concentrate
produced post the period under review in March 2017.
PlatCro Platinum and Chrome Tailings Project ("PlatCro
project")
- Post the period under review, in March 2017, Jubilee acquired
the sole rights to 1.25 million tonnes of surface material existing
at PlatCro as well as all future surface material. The existing
material has an estimated grade of 2.7 g/t 4E PGMs (platinum,
palladium, rhodium and gold).
- The acquisition is targeted to add 14 000 oz PGMs annually to
Jubilee's existing PGM production from tailings and 3rd party
ore.
- The acquisition places the Company's production trajectory at
stable operations at 50 000 oz PGMs per annum with no exposure to
deep level mining.
Resilience Mining Australia Copper Tailings Project ("RMA
project")
- Jubilee successfully extended its metallurgical processing
expertise to surface copper in Australia opening the potential to
significant further opportunities for growth.
- Post the period under review Jubilee secured a copper surface
tailings project with RMA in Australia.
- The RMA project production forecast of 12,000 tonnes (t) of
copper (Cu) at production cost AUD3, 381/t Cu (USD2, 569/t Cu) -
Current Cu price USD6, 000/ t Cu.
- Several of the RMA project Tenements are targeted to be
production-ready within four months of the Transaction and able to
produce positive cash flow within 6 month.
- Near surface resources of 35,000 tonnes Cu in combination of
JORC compliant category and mineral inventory.
Tjate Platinum Project
- Post the period under review Tjate Platinum Corporation
Proprietary Limited ("Tjate") executed on 1 March 2017 the mining
right for its SAMREC Compliant 22.33 million (indicated and
inferred) PGM oz Tjate Platinum Project with the Department of
Mineral Resources ("DMR")
Chief Executive Leon Coetzer commented:
"Jubilee has experienced a transformational period over the past
18 months which has continued through the current period. This has
been brought about through the sale of its Middelburg Operations
and the acquisition of three platinum surface processing projects
targeting an annualised production capacity in excess of 1,140,000
tonnes per annum. The award of the Tjate mining right further
emphasised the progress made in the implementation of Jubilee's
business model of establishing a fully integrated Mines to Metals
Company.
I am also pleased that we are able to successfully extend our
processing expertise of surface material to other regions such as
Australia exposing Jubilee to the vast opportunities in that region
and not limiting our growth potential to South Africa alone.
Jubilee has brought the first two of its surface processing
projects on-line with the first platinum concentrate production
commencing at the Hernic project in March of this year. We have
also secured a further two surface projects to continue along
Jubilee's steep growth curve.
Jubilee was successful in securing project funding for the
execution and commissioning of both of the DCM and Hernic platinum
surface projects through a combination of debt and equity funding.
The equity component of the funding was minimised to balance the
requirements of the lender while minimising the dilution of our
shareholders. The projected strong cash-flows from these projects
will assist in the financing of the further processing projects
targeted by Jubilee."
INTERIM PERIOD OVERVIEW
1. SURFACE PROCESSING OPERATIONS AND PROJECTS
During the period under review the Company has dramatically
transformed its operational and project assets. This transformation
included the completion of the disposal of the Middelburg assets
with the subsequent final payment received post the period under
review in March 2017 while simultaneously executing both the DCM
and Hernic platinum and chrome surface processing projects
totalling a recorded capital investment for the period under review
of GBP 11.18 million (ZAR 190.02 million). Following the period
under review the Company further secured through the acquisition
agreements both the PlatCro platinum surface project and the RMA
surface and near surface copper project while during the same
period, the Tjate Platinum Project was awarded a fully executed
mining right. The associated transactional costs are captured
within the period under review while the potential value
realisation will only be reflected in the following reporting
period.
Dilokong Chrome Mine Platinum and Chrome Tailings Operation
("DCM operation")
Jubilee's subsidiary, Jubilee Tailings and Treatment Company
Proprietary Limited (formerly Pollux Investment Holdings
Proprietary Limited), holds the exclusive rights to beneficiate the
PGMs and chrome from the platinum and chrome-containing surface
material at Dilokong Chrome Mine Pty Limited a subsidiary of ASA
Metals Proprietary Limited ("DCM Platinum Project, Processing
Agreement").
The Processing Agreement gave Jubilee access to a then estimated
800 000 tons (Sept 2012) of surface material containing 74 000 4E
PGM oz. Jubilee commissioned the chromite recovery plant end Q1
2016 reaching stable operations during Q4 2016.
The platinum processing options for the PGM material after the
chromite recovery were reviewed following a detailed test program
and the preferred option is a combined on-site upgrading of
platinum content of PGM material to double approximately the
in-situ value prior to toll processing the upgraded PGM material.
The Company in discussions to conclude a commercial arrangement for
the toll processing of the upgraded PGM material.
The DCM operation commenced processing of 3(rd) party PGM
("Platinum Group Metals")-bearing chromite ore in addition to the
processing of tailings material post the period under review in
March 2017.
Table below summarises the production and financial performance
of the DCM operations for the period under review.
Chromite Project Project Project Project Jubilee Jubilee Jubilee Jubilee
concentrate revenue revenue earnings earnings attributable attributable working working
tonnes (GBP'000) (ZAR'000) (GBP'000) (ZAR'000) operational operational capital capital
produced earnings earnings loan loan
(GBP'000) (ZAR'000) repayments repayments
(GBP'000) (ZAR'000)
Total
Q3 & 59
Q4 47 667 4 840 85 022 3 385 494 976 23 920 375 6 667
2016
Total
since
project
commencement
in April 104 73
2016 62 855 5 842 159 4 128 697 1 712 30 964 375 6 667
Hernic Ferro Chrome Platinum and Chrome Tailings Operation
("Hernic operations")
Hernic Ferrochrome Proprietary Limited ("Hernic") is the world's
4th largest integrated ferrochrome producer with an estimated 3
million tonnes of platinum containing material at surface while
Hernic continues to add further material to the surface stock.
The Hernic Surface Material has been independently drilled and
assayed for chrome and PGM content. This has resulted in an
independent resource statement of 1.7 million tonnes, of which
approximately 90% of the resource is classified in the measured
category under the internationally recognised SAMREC code. Hernic
also has access to secondary surface stocks, which it has
internally identified and could increase the surface stocks to in
excess of 3 million tonnes through further drilling programmes. The
total project is estimated to contain PGM ounces in excess of 224
000 (3PGM + Au) oz.
The Hernic operation with a feed design processing capacity of
660 000 tonnes per annum will be the largest PGM and chromite
beneficiation plant of surface chrome tailings in South Africa. The
financial and operational risks of the Project are significantly
mitigated since the material is already at surface and requires
neither the cost nor the risk associated with mining.
The Hernic operation was undertaken in four phases over an 11
month period; namely
- Phase one - Bankable Feasibility Study and Engineering Design.
Completed.
- Phase two - Construction of the chrome and platinum processing
plant ("Processing Plant"). Completed.
- Phase three - Commissioning and Ramp up of Processing Plant to
design capacity of 55 000 tonnes per month. In Progress.
- Phase Four - Stable operation of the Processing Plant.
The Jubilee chromite recovery plant at Hernic ("CRP") was
commissioned and its tie-in into the existing Hernic operations was
completed in January 2016. The PGM recovery plant (PGM Plant),
which follows process-wise the CRP, was tied in to the CRP post the
period under review during February 2017.
Commissioning and ramp-up of the fully integrated Hernic
operation commenced in March 2017 with the first platinum
production on schedule for delivery by end March 2017.
PlatCro Platinum and Chrome Tailings Project ("PlatCro
project")
Post the period under review the Company executed a Framework
and Processing of Tailings Agreement ("the Agreement") with PlatCro
in March 2017 for the acquisition of new platinum, palladium,
rhodium and gold ("4E "or "PGMs") bearing surface material existing
at PlatCro as well as all future surface material at PlatCro. The
existing surface material is estimated at 1.25 million tonnes with
an estimated grade of 2.7 g/t 4E PGMs. This ensured Jubilee the
sole right to future earnings from the platinum bearing
material.
The PlatCro project will target a processing rate of 25 000
tonnes per month to complement Jubilee's surface tailings platinum
production by a further 14,200 ounces of PGMs per annum. This
projects a total production target at stable operations of
approximately 50 000 ounces of PGMs per annum for Jubilee from all
its surface tailings and 3(rd) party ore projects.
Under the Agreement Jubilee will acquire the existing material
for a total consideration of GBP 3.13 (ZAR 50.00) per tonne of
surface material remaining after on-going further recovery of
residual chromite by PlatCro. Approximately 79% of the material is
estimated to remain following chromite removal, which equates to a
4E PGM acquisition value of GBP 3.50 million (ZAR 55.40
million).
The Agreement allows for a two-stage payment over an estimated
three month period following the conclusion of the Agreement.
Future material will be acquired at a value of GBP 3.13 (ZAR 50.00)
per tonne of material post chromite removal. The surface material
is located within trucking distance of Jubilee's Hernic operation,
thereby offering the opportunity to process the additional material
at the Company's existing Hernic plant for PGM recovery. Jubilee
also holds the option to acquire property located adjacent to the
surface material for the construction of a dedicated platinum
processing plant, if deemed appropriate, and at Jubilee's
election.
Resilience Mining Australia Copper Tailings Project ("RMA
project")
Post the period under review the Company executed a binding and
exclusive Term Sheet in March 2017 to enter into a transaction
("the Proposed Transaction") with Resilience Mining Australia
Limited ("RMA") to explore and develop RMA's Leigh Copper Mine
("LCCM") and other copper Mining Tenements ("the Project
Tenements"), collectively owned or held by Leigh Copper Mine
Proprietary Limited (the "Project Company"). The Proposed
Transaction is subject to conditions precedent including
satisfactory due diligence and/or to entering into the
transactional agreement ("the Proposed Transaction Agreement" or
"the Proposed Commercial Transaction").
The RMA project production forecast of 12,000 tonnes (t) of
copper (Cu) at production cost AUD3, 381/t Cu (USD2, 569/t Cu) -
Current Cu price USD6, 000/ t Cu. Several of the RMA project
Tenements are targeted to be production -ready within four months
of the Transaction and able to produce cash flow within 6 month of
acquisition. The RMA project holds near surface resources of 35,000
tonnes Cu in combination of JORC compliant category and mineral
inventory.
The execution of this Term Sheet demonstrates Jubilee's ability
to apply its processing success and expertise in the recovery of
platinum and chrome to associated base metals such as copper. The
expertise that Jubilee holds in the processing of near surface
materials and tailings is easily transferred to minerals that fall
within the PGM and Base Metals grouping. Notwithstanding this, the
Company's first international project was carefully selected based
on risk and reward by avoiding undue execution and financing risk.
This targeted copper project located in South Australia not only
enables the Company to expand its tailings by country or specific
metal but also offers an exciting opportunity to build our presence
Australia. The copper arena was selected on the back of strong
underlying fundamentals for copper in the short and mid-term. The
Company looks forward to executing this project and building on its
established Australian presence by seeking further such
opportunities.
2. MINING AND EXPLORATION PROJECTS
Tjate Platinum Exploration Project
Post the period under review Tjate executed a mining right
("Mining Right") with the Department of Mineral Resources in
respect of the Project comprising the Farms Dsjate 249 KT,
Fernkloof 539 KS and Quartzhill 542 KS, situated in the Magisterial
District of Sekhukhune in the Limpopo Province of South Africa.
Tjate now has the right to mine and process all platinum group
metals, chrome, nickel, copper, gold and certain associated metals
and minerals from the Project mining area, subject to Tjate
complying with the terms of the Mining Right and alignment to the
requirements of the Mining Charter.
* SAMREC COMPLIANT 3PGE +Au ounce indicated plus inferred
resource estimate for First Mine area. Based on boreholes and mine
resource and geological data, the Company believes an exploration
target of some 368 million tonnes (before geological losses)
containing 70 million oz 6PGE+Au is possible for the three farms of
the Tjate project (announced 4 June 2009).
The Tjate project is located down-dip of Anglo Platinum's
Twickenham and Impala Platinum's Marula mines. Tjate's Merensky and
UG2 platinum reefs targeted for initial mining lie between 600
meters and 1,000 meters below surface. The property's reefs extend
to depths greater than 1,600 meters, offering significant potential
to extend or expand production in future.
The preliminary economic study completed on the Tjate project by
an independent consultancy calculated a project NPV of USD 1.1
billion for an adjusted USD and ZAR exchange rate of ZAR12 to the
USD.
Tjate's Resource Estimate for First Mine Area (SAMREC Compliant)
Classification Tonnes (million) 3PGE+Au (g/t)* 3PGE+Au (Moz)
Indicated 11,561,359 5.28 1.964
Inferred 120,919,133 5.24 20.365
Total 132,480,493 5.250 22.329
* 3PGE+Au = platinum, palladium, rhodium plus gold
The Tjate project covers 5,140 hectares over three contiguous
farms. The area has been independently appraised to contain a
potential net 70 million ounces of platinum group elements (PGEs)
and gold. This represents the resource targeted for future
exploratory drilling.
CHAIRMAN'S OVERVIEW
I am very pleased to report that the period under review has
proceeded according to plan and the Company is progressing well
with its Mine-to-Metals strategy. The key focus was on our main
projects Dilokong and Hernic. The Dilokong project brought the
Company into a cash generative state with results increasing month
on month: operating performance and financial performance exceeded
budgets by significant amounts and the Company positioned itself
well to take advantage of improving chromite prices.
The Hernic project construction advanced on budget and on time
with only slight delays during the Christmas period which can be
very difficult for operators in South Africa. Since the period end,
on 6 February 2017, we announced the first commercial chromite
production from the Hernic plant and commencement of platinum
production in March 2017, which is a significant milestone in the
Company's history.
In the last Chairman's statement I mentioned that the Board had
decided to pursue its tailings mission in other areas of the world
complementing the strong position we have built in the Bushveld
complex. I am pleased to say that on 9 March 2017 we announced our
first tailings transaction outside South Africa. Our first
acquisition has been to enter into a transaction with Resilience
Mining Australia whose operation is some 200 km north of Adelaide.
The transaction involves the treating of tailings dumps, some
primary mining leases as well as significant copper exploration
potential. The size of the acquisition is relatively small but
consistent with our policy to take measured risk steps towards
achieving our bigger goal. We are looking at a number of other
transactions in various other commodities but will not make
acquisition decisions until we are sure of the operating and
financial risk. We continue to balance our growth in earnings and
access to project funding with further acquisitions to minimise the
need for equity based financing and risk of dilution for our
shareholders.
After the period end, on 2 March 2017, we announced that our
Tjate platinum company was awarded its mining right for its eastern
Bushveld platinum project, which I believe is one the largest
platinum projects in the world not currently being developed or
exploited. This project was the foundation of Jubilee and the Board
is particularly pleased that the value enhancing mining right has
now been awarded.
Again post balance sheet on 17 March 2017 we made a significant
surface material acquisition which is complementary to our Hernic
project and has the potential to take our annual production rate to
50,000 oz of PGM's. This is a significant figure when one considers
that all of our platinum will be without hard rock mining risk,
which is the key component in operating and capital costs. This
fact makes the Company's production resilient to even lower
platinum prices and a major beneficiary of improvement in platinum
pricing.
We are looking at a number of new projects with the criteria
being quick into production, low in risk and with a capital return
in under two years.
The prospects for junior resources companies appear to be
improving and companies with good projects and management are
receiving financing of a larger size allowing them to undertake
more meaningful technical work and advance their projects into
feasibility or production. This is a very pleasing turn of fortunes
for the industry and the board remains hopeful this turn continues
in 2017.
Whilst this is an interim report, I believe it is wholly
appropriate that the executive team be congratulated for their
tenacity and resilience in bringing to fruition all of the positive
developments contained in this report. I look forward to an
exciting remainder of 2017 with more acquisitions to report and a
rapid increase in our earnings growth.
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHSED 31 DECEMBER
2016
Consolidated Statement of Comprehensive Income for the six
months ended 31 December 2016
Unaudited Unaudited Audited
Group Group Group
6 months 6 months 12 months
ended ended ended
31 December 31 December 30
June
2016 2015 2016
GBP GBP '000 GBP
'000 '000
Continued operations
Revenue 4 851 62(i) 1 473
Cost of sales (3 945) (1) (608)
Gross profit 906 61 865
Operating costs (1 487) (1 192) (4 691)
(Loss)/profit from operations (581) (1 131 (3 826)
Other income 92 - 11
Operating (loss)/profit (489) (1 131) (3 815)
(Loss)/profit on disposal of
non-current assets held for
sale - (608) 85
Investment income 4 58 144
Finance costs (42) - (13)
Loss before taxation (527) (1 681) (3 599)
Taxation - - 202
Loss for the period from continued
operations (527) (1 681) (3 397)
Discontinued operations
Loss from discontinued operations - (277) (277)
Loss for the year (527) (1 958) (3 674)
Other comprehensive income
- Profit/(loss) on translation
of foreign subsidiaries -
continued operations 5 764 (61) 2 654
- Loss on translation of foreign - (3 502) -
subsidiaries -
discontinued operations
Total other comprehensive income/(loss)
for the 6 months 5 764 (3 563) 2 654
Total comprehensive profit 5 237 (5 521) (1 020)
Attributable to:
Owners of the parent:
Loss for the year from continued
operations (527) (1 681) (3 412)
Loss for the year from discontinued
operations - (345) (283)
Loss for the year attributable
to owners of the parent (527) (2 026) (3 695)
Non-controlling interest
(Loss)/profit for the year
from continued operations (12) - 15
Profit for the year from discontinued
operations - 68 7
(12) 68 22
Total comprehensive loss attributable
to:
Owners of the parent 5 244 (5 560) (1 010)
Non-controlling interest (7) 39 (10)
5 237 (5 521) (1 020)
Weighted average number of
shares - continued operations 994 765 688 633 906 241
Diluted weighted average number
of shares - continued operations 994 765 688 633 906 241
Basic and diluted loss per
share (pence) - continued operations (0.05) (0.24) (0.38)
Basic and diluted loss per
share (pence) - discontinued
operations - (0.05) (0.03)
Loss per share (pence) (0.05) (0.29) (0.41)
Weighted average number of
shares - discontinued operations - 686 246 906 241
Diluted weighted average number
of shares - discontinued operations - 686 246 906 1
(i) Reported revenue for the
6 months ended 31 December
2015 represented accrued revenue
from the sale of goods and
was over accrued by GBP1.3
million. The adjusted accrual
was reported in the audited
financial year-end for the
period ended 30 June 2016.
Consolidated Statement of Financial Position as at 31 December
2016
Unaudited Unaudited Audited
Group Group Group
6 months 6 months 12 months
as at as at as at
31 December 31 December 30
June
2016 2015 2016
GBP '000 GBP '000 GBP '000
Assets
Non-Current Assets
Property, plant and equipment 10 838 68 4 978
Intangible assets 66 793 55 697 61 839
Deferred tax 254 - 218
77 885 55 765 67 035
Current Assets
Inventories - 19 -
Current tax receivable 16 16 16
Trade and other receivables 3 650 314 1 075
Other financial assets 588 - 555
Cash and cash equivalents 3 637 6 673 4 415
7 891 7 021 6 061
Total Assets 85 776 62 786 73 096
Equity and Liabilities
Share capital 83 448 80 091 82 515
Reserves 23 586 15 024 17 998
Accumulated loss (44 644) (47 338) (44 300)
62 390 47 778 56 213
Non-controlling interest (50) (49) (43)
62 340 47 728 56 170
Liabilities
Non-Current Liabilities
Deferred tax liability 15 403 13 552 14 677
15 403 13 552 14 677
Current Liabilities
Other financial liabilities 6 459 - -
Trade and other payables 1 574 1 160 2 248
Deferred income - 346 -
8 033 1 506 2 248
Total Liabilities 23 436 15 058 16 925
Total Equity and Liabilities 85 776 62 786 73 095
Consolidated
Statement of
Changes in
Equity as at 31
December 2016
Share Merger Share Currency Total Accumulated Total Non-controlling Total
capital reserve based translation reserves loss attributable interest equity
payment reserve to parent
reserve of equity
holders
Balance at 30 23 5 (11 16 (43
June 2015 75 896 184 199 641) 743 496) 49 143 365 49 508
Changes in
equity
Loss for the
period (3 696) (3 696) (10) (3 706)
Other
comprehensive
income
for the period 2 686 2 686 - 2 686 2 686
Issue of shares
net of
costs 6 619 6 619 6 619
Warrants issued 305 305 305 305
Warrants lapsed (4) (4) 4 -
Warrants
exercised (258) (258) 258 -
Options issued
under new
scheme 1 156 1 156 1 156 1 156
Options
cancelled under (4
old scheme 450) (4 450) 4 450 -
Non-current
assets sold 1 821 1 821 (1 821) - (397) (397)
(3
Total changes 6 619 - 251) 4 507 1 255 (805) 7 070 (408) 6 662
Balance at 30 23
June 2016 82 515 184 1 947 (7 133) 17 998 (44 300) 56 213 (43) 56 170
Changes in
equity
Loss for the
period (527) (527) (7) (534)
Other
comprehensive
income
for the period 5 770 5 770 5 770 5 770
Issue of shares
net of
expenses 933 933 933
Warrants lapsed (63) (63) 63
Warrants
exercised (120) (120) 120
Total changes 933 - (183) 5 770 5 588 (344) 6 176 (7) 6 169
Balance at 31
December 23
2016 83 448 184 1 764 (1 363) 23 586 (44 644) 62 389 (50) 62 340
Consolidated Statement of Cash flow for the six months ended 31
December 2016
Unaudited Unaudited Audited
Group Group Group
6 months 6 months 12 months
to 31 to 31 to 30
December December June
2016 2015 2016
GBP '000 GBP '000 GBP
'000
Cash flows from operating activities
Loss before taxation (527) (1 681) (3 599)
Adjustments for:
Depreciation and amortisation
- continued operations 348 - 598
Loss on sale of non-current assets
held for sale and disposal group - 297 (84)
Impairment of debtors 52 608 856
Share based payments - Employee
costs 45 1 156
Share based payments - Expenses - - 298
Investment income (4) (58) (144)
Finance
cost 42 - 13
Loss on sale of Property Plant
and Equipment - 1 1
Working capital changes -
Increase in inventories - - 19
Increase in receivables (2 627) (11) (703)
Increase in payables (674) (284) 1 246
Deferred income - - (346)
Cash utilised in operations (3 346) (560) (689)
Investment income 4 58 144
Finance
cost (42) - (13)
Net cash from operating activities (3 384) (502) (558)
Cash flows from investing activities
Purchase of property, plant and
equipment (4 234) - (4 549)
Proceeds from sale of non-current
assets held for sale - 4 104 3 986
Cash removed as part of discontinued - (118) -
operations
Increase in other financial assets (33) - -
Purchase of intangible assets (21) (124) (4)
Net cash (used)/generated from
investing activities (4 287) 3 862 (1 122)
Cash flows from financing activities
Proceeds on share issues net of
costs 888 4 195 5 866
Proceeds from other financial 6 342 - -
liabilities
Repayment of other financial liabilities - (812) (102)
Net cash generated from financing
activities 7 230 3 383 5 763
Net (decrease)/increase in cash
and cash equivalents (441) 6 743 4 083
Cash and cash equivalents at beginning
of the period 4 415 360 360
Effects of foreign exchange on
cash and cash equivalents (337) (430) (28)
Cash and cash equivalents at the
end of the period 3 637 6 673 4 415
NOTES TO THE UNAUDITED INTERIM RESULTS
1. Basis of preparation
The Group unaudited interim results for the 6 months ended 31
December 2016 have been prepared using the accounting policies
applied by the company in its 30 June 2016 annual report which are
in accordance with International Financial Reporting Standards
(IFRS and IFRC interpretations) issued by the International
Accounting Standards Board ("IASB") as adopted for use in the EU
("IFRS, including the SAICA financial reporting guides as issued by
the Accounting Practices Committee, IAS 34 - Interim Financial
Reporting, the Listings Requirements of the JSE Limited, the AIM
rules of the London Stock Exchange and the Companies Act 2006 (UK).
This condensed consolidated interim financial report does not
include all notes of the type normally included in an annual
financial report. Accordingly, this report is to be read in
conjunction with the annual report for the year ended 30 June 2016
and any public announcements by Jubilee Platinum Plc. All monetary
information is presented in the presentation currency of the
Company being Great British Pound. The Group's principal accounting
policies and assumptions have been applied consistently over the
current and prior comparative financial period. The financial
information for the year ended 30 June 2016 contained in this
interim report does not constitute statutory accounts as defined by
section 435 of the Companies Act 2006. A copy of the statutory
accounts for that year has been delivered to the Registrar of
Companies. The auditor's report on those accounts was unqualified
and did not contain a statement under section 498(2)-(3) of the
Companies Act 2006.
2. Financial review
Earnings per share for the six months ended 31 December 2016 are
presented as follows:
Group Group Group
Unaudited Unaudited Audited
6 months 6 months 12 months
to 31 to 31 to 30
December December June
2016 2015 2016
GBP '000 GBP '000 GBP '000
Basic loss for the period - continuing
operations (527) (1 681) (3 412)
Basic loss for the period - discontinued
operations - (345) (283)
Total loss for the period (527) (2 025) (3 695)
Weighted average number of shares
in issue ('000) - continued operations 994 765 688 633 906 241
Diluted weighted average number
of shares in issue ('000) - continued
operations 994 765 688 633 906 241
Weighted average number of shares
in issue ('000) - discontinued
operations 994 765 686 246 906 241
Diluted weighted average number
of shares in issue ('000) - discontinued
operations 994 765 686 246 906 241
Loss and diluted loss per share
- continuing operations (pence) (0.05) (0.24) (0.38)
Loss and diluted loss per share
- discontinued operations (pence) - (0.05) (0.03)
(0.05) (0.29) (0.41)
Loss and diluted loss per share
- continuing operations (ZAR cents) (0.95) (5.09) (8.07)
Loss and diluted loss per share
- discontinued operations (ZAR
cents) - (1.04) (0.67)
(0.95) (6.13) (8.74)
The Group reported a net asset value of 6.07 (2015: 5.33) pence
per share (ZAR 103.30 (2015: ZAR 96.23)) cents per share and a net
negative tangible asset value per share of 0.49 (2015: 0.74) pence
per share (ZAR 8.32 (2015: ZAR 15.95)) cents per share.
The total shares in issue as at 31 December 2016 were 1 017 935
million (2015: 896 176 million). Other comprehensive income
comprises foreign currency translation differences which can be
reclassified to profit and loss in future.
Management continued to manage operating costs for the Group.
Total operating costs for the period (excluding depreciation and
amortisation) reduced by 37% to GBP 1.13 million compared to the
comparative reporting period. The table below sets out the major
categories of operating costs for the period under review.
Unaudited Unaudited
Group Group
6 months 6 months
to 31 December to 31
December
2016 2015
GBP '000 GBP '000
Admin, corporate and operational
costs 209 473
Consulting and professional fees 575 489
Human resources 271 412
Repairs and Maintenance 6 298
Travelling 6 23
Corporate listing costs 60 73
Loss on exchange differences 12 27
Loss on disposal of fixed asset - 1
Total 1 138 1 797
3. Discontinued operations
The remaining purchase consideration of the Middelburg Disposal
was calculated at approximately GBP 0.39 million (ZAR 8.90
million*) net of closing adjustments including stock and supplier
adjustments. The final settlement amount of GBP 0.46 million (ZAR
7.40 million) was received by Jubilee post the period under
review.
*=Conversion at time of announcement
Results of discontinued operations:
Unaudited Unaudited Audited
Group Group Group
6 months 6 months 12 months
to 31 December to 31 December to 30
June
2016 2015 2016
GBP '000 GBP '000 GBP '000
Revenue - 2 759 1 420
Expenses - (2 945) (1 697)
Results from operating activities - (186) (277)
Income tax - 6 -
Results from operating activities
net of tax - (180) (277)
Non-controlling interest - (193) (7)
Loss attributable to owners
of the parent - (374) (284)
Cash flows from (used in)
discontinued operations
Cash flows from operating
activities - 51 (45)
Cash flows from investing - - -
activities
Cash flows from financing - - -
activities
Net cash flows from discontinued
operations - 51 (45)
Opening cash balance on discontinued
operations - 139 163
Closing cash balance on discontinued
operations - 190 118
Effect of disposal on the
financial position of the
Group
Property, plant and equipment - 5 265 -
Taxation - 4 -
Trade and other receivables - 2 041 -
Intangible assets - 1 358 -
Cash and cash equivalents - 190 -
Total assets - 8 858 -
Trade and other payables - 2 715 -
Deferred tax - 748 -
Total liabilities - 3 463 -
Net assets and liabilities - 5 395 -
4. Unaudited results
These interim results have not been reviewed or audited by the
Group's auditors.
5.Commitments and contingencies
There are no material contingent assets or liabilities as at 31
December 2016.
6. Dividends
No dividends were declared during the period under review (2015:
nil).
7 .Board
There were no changes to the board during the period under
review.
8. Business segments
In the opinion of the Directors, the continued operations of the
Group companies comprise four reporting segments, being:
- The evaluation and development of PGM smelters utilising
exclusive commercialisation rights of the ConRoast smelting
process, located in South Africa ("PGM processing");
- The evaluation of the reclamation and processing of sulphide
nickel tailings at BHP Billiton's Leinster, Kambalda and Mount
Keith properties in Australia ("Nickel tailings");
- The exploration and development of Platinum Group Elements
("PGEs") and associated metals ("PGE development") in South Africa
("Exploration and development");
- The parent company operates a head office based in the United
Kingdom which incurred certain administration and corporate costs
("Other operations").
The discontinued operations of the Group companies comprise:
- Base Metal Smelting in South Africa; and
- Electricity Generation in South Africa.
The Group's operations span five countries, South Africa,
Australia, Madagascar, Mauritius and the United Kingdom. There is
no difference between the accounting policies applied in the
segment reporting and those applied in the Group financial
statements. Mauritius and Madagascar do not meet the qualitative
threshold under IFRS 8, consequently no separate reporting is
provided.
Segment report for the 6 months ended 31 December 2016
GBP '000 PGM processing Nickel Exploration Other Total
Tailings and development operations Continuing
operations
Total revenues (4 851) - - - (4 851)
Cost of sales 3 945 - - - 3 945
Forex losses/(profits) 4 - - (82) (78)
Loss before taxation 168 8 25 326 527
Taxation - - - - -
Loss after taxation 168 8 25 326 1 025
Interest received - - - (4) (4)
Finance cost - - - 42 42
Depreciation
and Amortisation 400 - - - 400
Total assets 21 867 33 473 26 471 3 964 85 776
Total liabilities (6 506) (10 109) (4 130) (2 692) (23 436)
Segment report for the 6 months ended 31 December 2015
GBP '000 PGM processing Nickel Exploration Other Total Total
Tailings and development operations Continuing Discontinued
operations operations
Total revenues (7) - - (55) (62) (2 759)
Cost of sales - - - 1 1 1 422
Forex losses - - 3 24 27 -
Loss before
taxation 692 7 (58) (2 322) (1 681) (277)
Taxation - - - - - -
Loss after taxation 692 7 (58) (2 322) (1 681) (277)
Interest received (39) - - (19) (58) 1
Interest paid - - - - - -
Depreciation
and Amortisation 297 - - - - 348
Total assets 10 265 28 106 20 997 3 419 62 787 8 859
Total liabilities (663) (6) (17) (821) (1 506) (3 463)
Segment report for the year ended 30 June 2016
PGM processing Nickel Exploration Other Total Total
GBP '000 Tailings and development operations Continued Discontinued
operations operations
Total revenues (1 127) - - (346) (1 473) (1 420)
Cost of sales 589 - - 19 608 682
Forex
(profits)/losses (8) - - 78 70 -
Loss before
taxation 788 11 16 2 785 3 599 1 015
Taxation (202) - - - (202) -
Loss after
taxation 586 11 16 2 785 3 397 1 015
Interest received (120) - - (24) (144) -
Interest paid - - - 13 13 -
Depreciation
and Amortisation 598 - 1 - 598 -
Total assets 13 761 31 666 23 626 3 798 72 851 6 883
Total liabilities (2 879) (9 656) (3 886) (479) (16 899) (1 717)
9. Share issues
The Company issued 26 848 167 shares during the period
under review which commenced on 1 July 2016 as follows:
Number Issue price Nature of
Date of shares (Pence) the issue
991 087
Opening balance 194
11 November 2016 312 872 1.3500 Director dealing
11 November 2016 263 833 1.5900 Director dealing
11 November 2016 361 740 1.8500 Director dealing
11 November 2016 212 362 3.3600 Director dealing
11 November 2016 187 768 3.5300 Director dealing
11 November 2016 205 843 3.2200 Director dealing
11 November 2016 222 508 3.1300 Director dealing
11 November 2016 81 241 3.3217 Director dealing
25 000
11 November 2016 000 3.5500 Warrants exercised
Closing balance at 1 017 935
31 December 2016 361
Shares issued after
31 December 2016
17 January 2017 2 300 000 3,1598 Warrants exercised
24 January 2017 2 500 000 3,1598 Warrants exercised
10 550
25 January 2017 581 3.2300 Warrants exercised
2 February 2017 2 500 000 3,1598 Warrants exercised
7 February 2017 2 000 000 3,1598 Warrants exercised
9 February 2017 1 000 000 3,1598 Warrants exercised
10 February 2017 1 000 000 3,1598 Warrants exercised
1 450
14 February 2017 000 3,1598 Warrants exercised
20 February 2017 500 000 2.5000 Warrants exercised
20 February 2017 625 000 2.0000 Warrants exercised
10 000
2 March 2017 000 4.7250 Warrants exercised
Balance as at last 1 052 360
practicable date 942 (i)
(i) As announced on 17 March 2017 the Company issued
66 million ordinary shares through an equity placing.
The expected date of admission of these shares is
31 March 2017 and entry into the Company's share register
will follow after 31 March 2017. These shares are
therefore not disclosed as issued as at 31 March 2017.
The following warrants were issued but not exercised at 31
December 2016:
Number Subscription
of warrants Issue date price (pence) Expiry date
12 750
000 21/02/2016 3,1598 21/02/2017
3 591 742 12/08/2016 4,7500 12/08/2018
18 244
825 23/03/2016 4,7250 23/03/2019
-------------
34 586
567
-------------
Warrants issued but not exercised as at the last practicable
date are set out below:
Number Subscription
of warrants Issue date price (pence) Expiry date
3 591 742 12/08/2016 4,7500 12/08/2018
8 244 825 23/03/2016 4,7250 23/03/2019
-------------
11 836
567
-------------
10. Going concern
The directors have adopted the going-concern basis in preparing
the financial statements.
11. Events subsequent to reporting date
Other than events disclosed in these results there were no other
events subsequent to the reporting period that requires
disclosure.
12. Interim report
Printed copies of the interim report are available to the public
free of charge from the Company at 1st Floor 7/8 Kendrick Mews
London SW7 3HG, United Kingdom Tel: +44 (0) 20 7584 2155 Fax: +44
(0) 20 7589 7806 and from Jigsaw Office Park, Ground Floor, Support
Services Place, 7 Einstein Street, Highveld Techno Park, Centurion,
0157, Gauteng during normal office hours for 30 days from the date
of this report and are also available for download from
www.jubileeplatinum.com.
Andrew Sarosi, Technical Director of Jubilee, who holds a B.Sc.
Metallurgy and M.Sc. Engineering, the University of the
Witwatersrand and is a member of The Institute of Materials,
Minerals and Mining, is a "qualified person" as defined under the
AIM Rules for Companies. The technical parts of this announcement
have been prepared under Andrew Sarosi's supervision and he has
approved the release of this announcement.
Contacts
Jubilee Platinum plc
Colin Bird/Leon Coetzer
Tel +44 (0) 20 7584 2155 / Tel +27 (0) 11 465 1913
Andrew Sarosi
Tel +44 (0)1752 221937
JSE Sponsor
Sasfin Capital, a division of Sasfin Bank Limited
Sharon Owens
Tel +27 (0)11 809 7500
Nominated Adviser
SPARK Advisory Partners Limited
Sean Wyndham-Quin/Mark Brady
Tel: +44 (0) 203 368 3555
Broker
Beaufort Securities Limited
Jon Belliss
Tel: +44 (0) 20 7382 8300
Registered offices:
United Kingdom
1st Floor 7/8 Kendrick Mews,
London SW7 3HG, United Kingdom
Tel: +44 (0) 20 7584 2155
Fax: +44 (0) 20 7589 7806
South Africa
Jigsaw Office Park,
Ground Floor,
Support Services Place
7 Einstein Street, Highveld Techno Park,
Centurion, 0157
Tel: +27 (0) 11 465 0913
Fax: +27 (0) 11 465 1895
Transfer secretaries:
Computershare Investor Services Proprietary Limited
70 Marshall Street, Johannesburg 2001
PO Box 61051, Marshalltown 2107
Company Secretary:
Capita Company Secretarial Services
40 Dukes Place
London, EC3A 7NH
Annexure 1
Reconciliation of Headline Group Group Group
earnings
per share
Unaudited Unaudited Audited
6 months 6 months 12 months
to to to
31 December 31 December 30 June
2016 2015 2016
Headline loss per share
comprises
the following:
Continuing operations
Loss from continuing
operations for
the period attributable to
ordinary
shareholders (527) (1,681) (3,412)
Impairment of other
financial assets - - 856
Loss on sale of property
plant and
equipment (1) (1) 1
Loss on exchange differences - - 81
Headline loss from
continuing operations (528) (1,682) (2,474)
Weighted average number of
shares
in issue 994,765 688,633 906,241
Diluted weighted average
number of
shares in issue 994,765 688,633 906,241
Headline and diluted
headline loss
per share from continuing
operations
(pence) (0.05) (0.24) (0.27)
Headline and diluted
headline loss
per share from continuing
operations
(cents) (0.95) (5.09) (5.85)
Discontinued operations
Loss and headline loss from
discontinued
operations for the period
attributable
to ordinary shareholders - (277) (283)
Weighted average number of
shares
in issue - 688,633 906,241
Diluted weighted average
number of
shares in issue - 688,633 906,241
Headline loss per share from
discontinued
operations (pence) - (0.04) (0.03)
Diluted headline loss per
share from
discontinued operations
(pence) - (0.04) (0.03)
Headline loss per share from
discontinued
operations (cents) - (0.84) (0.67)
Diluted headline loss per
share from
discontinued operations
(cents) - (0.84) (0.67)
Average conversion rate used
for
the period under review
GBP:ZAR 0.0559 0.0480 0.0467
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR EALDEDFLXEFF
(END) Dow Jones Newswires
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