Wrap Text
Reviewed interim resuts for the six month period ended 31 December 2-12
Jubilee Platinum PLC
Registration number (4459850)
JSE share code: JBL
AIM share code: JLP
ISIN: GB0031852162
("Jubilee" or the "Company")
REVIEWED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2012
The directors of JSE listed and AIM traded Jubilee, the ‘Mine-to-Metals’ exploration and development company, are pleased to announce the reviewed interim o Jubilee will procure project funding for the recommissioning of Smokey Hills of approximately ZAR190 million. The funding is targeted at project level
results for the six months ended 31 December 2012. financing to minimise dilution of Jubilee shareholders.
FINANCIAL HIGHLIGHTS A circular containing full details of the acquisition will be posted during April 2013.
• Revenues continue to improve in-line with the ramp-up of the smelter operations. Revenue increased by 61.5% to £2.1 million for the half year under review • The Company increased its shareholding in PowerAlt (Pty) Ltd (“PowerAlt”) from 51% to 70% by way of issuance of Jubilee ordinary shares equivalent
compared to the equivalent period in 2011 (£1.3 million). in value to ZAR13.1 million. Refer to note 13.1.
• Gross profit increased to £750.000 which reflects the increased throughput achieved at the operations during the period under review (2011: £214.000). • PowerAlt received approval from the national energy provider of South Africa for the sale of up to 5.1 MW generated electricity to South Africa’s national
• Sale of electricity commenced on 23 December 2012. The impact on the Company’s income statement of the private sale of 5.1MW of electricity will only power-generating company. Sale of electricity commenced in December 2012 and the full 5.1 MW sale target was achieved in January 2013.
be fully reflected in the next financial period of the Company. PowerAlt secured an option to increase the contracted sale of electricity generated to 10.7 MW.
OPERATIONAL HIGHLIGHTS • The Company increased its shareholding to 100% in its subsidiary Jubilee Smelting and Refining (Pty) Ltd (“JSR”) through an earn-in agreement based on
• The Company secured the rights to recover platinum group-elements (PGEs) from an estimated 800.000 tonnes of PGE-bearing chromite tailings (“Tailings”) the capital invested by Jubilee. Jubilee consequently holds 100% of its smelting facility RST Special Metals (Pty) Ltd in Middelburg South Africa.
and from current arisings on the Dilokong Chromite Mine in the Eastern Bushveld of South Africa. • The Company’s subsidiary Tjate Platinum Corporation (Pty) Ltd (“Tjate”) signed a term sheet in relation to a cash offer from a major mining company of
• The Company’s subsidiary Pollux Investment Holdings (Pty) Limited (“Pollux”) formalised a binding and exclusive memorandum of understanding with ZAR75 million for Quartzhill farm portion. Quartzhill is considered non-core to Tjate’s long-term mining plan.
Phokathaba Platinum (Pty) Limited (“Phokathaba”) to process the Tailings in its nearby Smokey Hills mine concentrator. Phokathaba is a subsidiary of the • The Company executed and formalised a heads of agreement with Australian registered and unlisted Indian Pacific Resources Ltd, for the Company
Australian Stock Exchange (“ASX”)-listed Platinum Australia Limited (“PLA”), which is currently under administration. This arrangement has accelerated the to farm-in up to a 90% interest in an iron-ore prospect on the Company’s Ambodilafa tenement area in Madagascar. The farm-in excludes PGEs and all
timeline for production from the Tailings by an estimated 18 months and eliminated the capital investment for a new concentrator. non-ferrous metals. The agreement permits exploration and drilling to continue on the Ambodilafa property without funding from Jubilee. Drilling is expected
• On 25 February 2013 the Company entered into an implementation deed and supporting transactional documents with PLA relating to the acquisition of PLA to commence shortly.
by Jubilee to be effected by way of a scheme of arrangement in terms of Australian law and subject to PLA and Jubilee shareholders’ approval under which: • The Company commenced formalising its collaboration with Northam Platinum Ltd (“Northam”) in regard to Northam’s letter of intent to enter into
o Jubilee will acquire the entire issued share capital of Platinum Australia (“Acquisition”);
an agreement to establish a joint venture to evaluate the construction of a dedicated 5 MW DC arc furnace facility using ConRoast technology specifically
o PLA will be delisted from the ASX and become a wholly-owned subsidiary of Jubilee;
o Jubilee will undertake a specific issue of shares for cash to extinguish certain PLA creditors in accordance with the terms of a creditor compromise; to smelt concentrate produced from Northam’s developing Booysendal mine in the Eastern Bushveld.
o Jubilee will undertake a specific issue of shares for cash to extinguish approximately 50% of the debt held by the senior creditor in PLA; and • On 19 October 2012 the Company placed 25 098 405 new ordinary shares to raise £1.73 million with major institutional investors.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME for the 6 months ended 31 December 2012 CHAIRMAN’S REPORT
Reviewed Unaudited Audited Dear Shareholder,
Group Group Group
The South African platinum industry continued to suffer many challenges during the period under review. The underlying issues were continuing low platinum prices, adverse exchange
6 months 6 months 12 months rates and labour unrest on certain platinum mining operations in the Bushveld complex.
31 December 2012 31 December 2011 30 June 2012
£’000 £’000 £’000 The impact on major platinum producers was significant and has resulted in short-term corrective decisions which undoubtedly will have mid-term adverse effects on supply fundamentals.
Jubilee continued with its Mine-to-Metal strategy fully aware that the aforementioned difficulties might offer benefits to a small producer whose business model was dedicated to high
Revenue 2 126 1 316 3 725
chrome PGM sources and small mining operations. In general all opportunities explored were enhanced by the Company’s ownership of the ConRoast license.
Cost of sales (1 376) (1 102) (3 532)
Jubilee recognised the benefits to be offered by the Smokey Hills mine concentrator when it unfortunately ran out of feed because of the Smokey Hills mine closure. The acquisition of
Gross profit 750 214 193 the right to use the concentrator accelerated our Mine-to-Metal strategy both in time and cost. A close examination of the Smokey Hills mine led management to the conclusion that a
Operating costs (4 658) (4 016) (8 911) total acquisition would be more beneficial to our shareholders than a toll treatment arrangement. This rationale was further supported by the other small mining projects contained in the
Loss from operations (3 908) (3 802) (8 718) PLA portfolio of assets.
Other income 78 – 500 The completion of the scheme of arrangement between Jubilee and PLA will result in an Enlarged Group with excellent prospects in the smaller niche of the platinum industry. Projects
being considered will generally have the use and benefits of our ConRoast license.
Operating loss (3 830) (3 802) (8 218)
Finance income 3 15 249 With the exception of the Tjate underground mine, all of the Enlarged Group’s projects will be small with limited mine life, low cost of entry and chrome based. We believe that this specific
Finance costs (145) (187) (583) business model presents extraordinary advantages in the mid-term, i.e. capital requirements are lower, manpower numbers are smaller and smelting issues currently being experienced
in the industry can be overcome by the use of the ConRoast process.
Loss before taxation (3 972) (3 974) (8 552)
Taxation – – 672 The PLA merger, whilst providing the aforementioned advantages, is driven by the early cash flow that the Dilokong tailings will be able to provide along with other possible input feeds
being considered.
Loss for the period (3 972) (3 974) (7 880)
The board of the Company’s subsidiary Tjate approved a ZAR75 million cash offer (“Offer”) from a major mining company for the Quartzhill farm (“Quartzhill”), a portion of the Tjate
Other comprehensive income Platinum’s Project and signed a Term Sheet in this regard. The parties to the Term Sheet have commenced formalising the Offer, which is still subject, inter alia, to regulatory approvals.
– Loss on translation of foreign subsidiaries (2 679) (5 251) (6 844) This Offer represents a pro rata premium of nearly double the original purchase price for the farm, which is not core to Tjate Platinum’s long-term mining plan for the project. The Offer is
Total comprehensive loss for the period (6 651) (9 225) (14 724) a vindication of Jubilee’s acquisition of a substantial interest in what is arguably the largest undeveloped block of platinum in the eastern Bushveld. The Company awaits the Department
of Mineral Resources’ (“DMR”) acceptance of Tjate Platinum’s application for a mining right.
Loss attributable to:
Owners of the parent (4 127) (3 348) (6 783) The DMR is also still considering applications for Jubilee’s other projects including platinum mining right applications by the Company’s subsidiary Maude Mining and Exploration (Pty) Ltd
to portions on Elandsdrift and Bokfontein farms and prospecting rights for platinum and chromite in a separate venture for farms comprising more than 64 other portions of the
Non-controlling interest 155 (626) (1 097)
Bokfontein farm.
(3 972) (3 974) (7 880) On 19 October 2012 the Company placed 25 175 439 new Jubilee ordinary shares to raise £1.73 million with major institutional investors at a average price of 9.10 pence per share.
Total comprehensive loss attributable to: Post-period under review, the Company, on 10 January 2013, issued 15 757 576 ordinary shares under a Standby Equity Distribution Agreement (“SEDA”) to raise £1.3 million
Owners of the parent (6 806) (8 599) (13 627) (ZAR18 million) and 538 084 ordinary shares of 1 pence each in lieu of cash for corporate advisory fees. These shares were admitted to trading on AIM and the JSE on 17 January 2013.
Non-controlling interest 155 (626) (1 097)
Colin Bird
(6 651) (9 225) (14 724) Chairman
Weighted average number of shares (million) 293 785 270 269 279 147 28 March 2013
Diluted weighted average number of shares (million) 293 785 270 269 288 922
Basic and headline loss per share (pence) (1.40) (1.24) (2.43) NOTES TO THE REVIEWED CONDENSED INTERIM RESULTS
Diluted loss and headline loss per share (pence) (1.40) (1.24) (2.43) 1. Basis of preparation
The Group reviewed condensed interim results for the 6 months ended 31 December 2012 have been prepared using the accounting policies applied by the company in its
30 June 2012 annual report which are in accordance with International Financial Reporting Standards (IFRS and IFRC interpretations) issued by the International Accounting
CONSOLIDATED STATEMENT OF FINANCIAL POSITION as at 31 December 2012 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
Reviewed Unaudited Audited Financial Reporting, the Listings Requirements of the JSE Limited, the AIM rules of the London Stock Exchange and the Companies Act 2006 (UK). These condensed interim financial
Group Group Group results do 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
6 months 6 months 12 months 30 June 2012 and any public announcements by Jubilee Platinum Plc. All monetary information is presented in the presentation currency of the Company being Great British
31 December 2012 31 December 2011 30 June 2012 Pound. The Group’s principal accounting policies and assumptions have been applied consistently over the current and prior comparative financial periods.
£’000 £’000 £’000
The financial information for the year ended 30 June 2012 contained in this interim report does not constitute statutory accounts as defined by section 435 of the Companies Act
ASSETS 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 included a
Non-current assets reference to going concern by way of emphasis of matter without qualifying their report and did not contain a statement under section 498(2)-(3) of the Companies Act 2006.
Property, plant and equipment 10 338 13 445 11 878 2. Financial review
Intangible assets 78 872 84 277 81 917 The Group reported an attributable loss and headline loss for the six months ended 31 December 2012 of £4.127 million (2011: loss and headline loss of £3.348 million). This is
Deferred tax 270 519 287 divided by the weighted average number of ordinary shares in issue of 293 785 million (2011: 270 270 million) resulting in a basic loss and headline loss per share of 1.40 pence
89 480 98 241 94 082 (2011: basic loss and headline loss of 1.24 pence).
As no options were granted during the period under review (2011: nil) there is no dilution effect on the loss for the period.
Current assets
The Group reported a net asset value of 21.46 (2011: 27.44) pence per share and a net negative tangible asset value per share of 3.1 (2011: 1.8) pence per share. The total shares
Inventories – 884 256 in issue as at 31 December 2012 were 321 134 million (2011: 288 122 million). Other comprehensive income only comprises foreign currency translation differences which can be
Current tax receivable 22 – 22 reclassified to profit and loss in future.
Trade and other receivables 1 024 1 762 1 413
Cash and cash equivalents 1 046 2 315 1 063 3. Auditor’s review opinion
These reviewed condensed interim results have been reviewed by the Group’s auditors, BDO South Africa Inc. and their review report is available for inspection at the Company’s
2 092 4 961 2 754 i d ffi
(1,2) -1- Jubilee_Eng_T2IB04239.indd 2013/03/28 3:25 PM
in issue as at 31 December 2012 were 321 134 million (2011: 288 122 million). Other comprehensive income only comprises foreign currency translation differences which can be
Current tax receivable 22 – 22 reclassified to profit and loss in future.
Trade and other receivables 1 024 1 762 1 413
Cash and cash equivalents 1 046 2 315 1 063 3. Auditor’s review opinion
These reviewed condensed interim results have been reviewed by the Group’s auditors, BDO South Africa Inc. and their review report is available for inspection at the Company’s
2 092 4 961 2 754 registered office.
Total assets 91 572 103 202 96 837 4. Other financial liabilities
EQUITY AND LIABILITIES Included in other financial liabilities is an amount of £565 000 relating to an increase in Jubilee’s investment in PowerAlt through the issue of new Jubilee shares post the reporting
period. Refer to note 13.1 for details of the increased investment.
Equity attributable to equity holders of parent
Share capital 67 151 64 582 64 425 5. Commitments and contingencies
Reserves 33 083 37 607 35 739 There are no material contingent assets or liabilities as at 31 December 2012.
Accumulated loss (31 687) (24 405) (27 840) Total operating lease commitments at 31 December 2012:
68 547 77 784 72 324 6 months ended 6 months ended Year ended
Non-controlling interest 377 1 266 795 31 December 31 December 30 June
2012 2011 2012
68 924 79 050 73 119 £’000 £’000 £’000
LIABILITIES Less than one year 102 22 78
Non-current liabilities Longer than one year – 48 102
Other financial liabilities 803 1 690 1 164
Deferred tax liability 17 484 18 231 17 789 Total 102 70 180
18 287 19 921 18 953 6. Dividends
Current liabilities No dividends were declared during the period under review (2011: nil).
Loans from related parties 971 1 455 2 164 7. Board
Other financial liabilities 1 216 – 873 No changes were made to the Board of Directors during the period under review.
Trade and other payables 1 999 2 776 1 526 8. Reconciliation of heading earnings
Deferred income 175 – 202 There are no reconciling items between earnings and headline earnings.
4 361 4 231 4 765 9. Business segments
In the opinion of the Directors, the operations of the Group companies comprise six reporting segments, being:
Total liabilities 22 648 24 152 23 718 • the evaluation and development of PGM smelters utilising exclusive commercialisation rights of the ConRoast smelting process, located in South Africa (“Evaluation and
Total equity and liabilities 91 572 103 202 96 837 Development”);
• 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”);
Number of shares in issue (million) 321 134 288 122 288 122 • the development of Platinum Group Elements (PGEs) and associated metals (“PGE development”) in South Africa;
Net asset value per share (pence) 21.46 27.44 25.38 • Base Metal Smelting in South Africa; and
Net tangible asset value per share (pence) (3.10) (1.81) (3.05) • Electricity Generation in South Africa.
• The Parent Company operates a head office based in the United Kingdom which incurred certain administration and corporate costs.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS for the 6 months ended 31 December 2012 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
Reviewed Unaudited Audited 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
Group Group Group separate reporting is provided.
6 months 6 months 12 months Segment report for the 6 months ended 31 December 2012
31 December 2012 31 December 2011 30 June 2012
South Africa
£’000 £’000 £’000 Evaluation Australia South Africa South Africa South Africa
Net cash from operating activities (1 468) (2 552) (4 692) and Nickel PGE Corporate Base Metal Electricity
Net cash from investing activities (169) (1 562) (820) £’000 Development Tailings Development (Unallocated) Smelting Generation Total
Net cash from financing activities 1 245 4 422 3 902 Total revenues 324 – – 40 2 761 1 188 4 313
Total cash movement for the period (392) 308 (1 610) Less: Inter-company revenue – – – – (1 054) (1 133) (2 187)
Cash at the beginning of the period 1 063 2 007 2 007 Revenue from external customers 324 – – 40 1 707 55 2 126
Effect of currency movements on cash and cash equivalents
as at the end of the period 375 – 666 Loss before taxation (1 939) (95) (1 410) (865) (2 623) (303) (7 235)
Total cash at end of the period 1 046 2 315 1 063 Taxation – – – – – – –
Loss after taxation (1 939) (95) (1 410) (865) (2 623) (303) (7 235)
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY as at 31 December 2012 Interest received 1 – – 2 – – 3
Total Interest paid – – – (26) (1) (118) (145)
Share- attributable Depreciation and amortisation (519) – (4) – (675) (186) (1 384)
Total based Currency Accumu- to equity Non- Total assets 15 847 8 696 39 871 2 574 17 501 7 083 91 572
Share Share share Merger payment translation Total lated share- controlling Total Total liabilities (864) – (56) (3 053) (14 603) (4 072) (22 648)
capital premium capital reserve reserve reserve reserves loss holders interest equity
Segment report for the 6 months ended 31 December 2011
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
South Africa
Balance at Evaluation Australia South Africa South Africa South Africa
30 June 2011 2 565 57 595 60 160 23 184 5 171 14 503 42 858 (21 057) 81 961 1 892 83 853 and Nickel PGE Corporate Base Metal Electricity
Changes in equity £’000 Development Tailings Development (Unallocated) Smelting Generation Total
Loss for the period – – – – – – – (6 783) (6 783) (1 097) (7 880) Total revenues – – – – 2 263 1 181 3 444
Other comprehensive Intercompany revenue – – – – (947) (1 181) (2 128)
loss for the period – – – – – (6 844) (6 844) – (6 844) – (6 844)
Revenue from external customers – – – – 1 316 – 1 316
Total comprehensive (Loss)/profit before taxation (690) (54) (143) (805) (2 772) 490 (3 974)
loss for the period – – – – – (6 844) (6 844) (6 783) (13 627) (1 097) (14 724) Taxation – – – – – – –
Issue of share capital net of
share issue expenses 316 3 948 4 264 – – – – – 4 264 – 4 264 (Loss)/profit after taxation (690) (54) (143) (805) (2 772) 490 (3 974)
Share-based payment Interest received 10 – – 5 – – 15
credit – – – – (275) – (275) – (275) – (275) Interest paid – – – 10 – 177 187
Total changes 316 3 948 4 264 – (275) (6 844) (7 119) (6 783) (9 638) (1 097) (10 735) Depreciation and amortisation 525 – 5 1 507 209 1 247
Total assets 46 164 23 756 11 929 2 943 12 117 6 293 103 202
Balance at Total liabilities – (6) (14) (18 785) (5 344) (3) (24 152)
30 June 2012 2 881 61 543 64 424 23 184 4 896 7 659 35 739 (27 840) 72 323 795 73 118
Segment report for the year ended 30 June 2012
Changes in equity
Loss for the period – – – – – – – (4 127) (4 127) 155 (3 972) South Africa
Other comprehensive Evaluation Australia South Africa South Africa South Africa
loss for period – – – – – (2 679) (2 679) – (2 679) – (2 679) and Nickel PGE Corporate Base Metal Electricity
£’000 Development Tailings Development (Unallocated) Smelting Generation Total
Total comprehensive
loss for period – – – – – (2 679) (2 679) (4 127) (6 806) 155 (6 651) Total revenues – – 604 – 5 369 2 397 8 370
Inter-company revenue – – – – (2 248) (2 397) (4 645)
Issue of share capital net of
share issue expenses 330 2 397 2 727 – – – – – 2 727 – 2 727 Revenue from external customers – – 604 – 3 121 – 3 725
Share-based payment (Loss)/profit before taxation (3 712) 66 (4 714) (1 524) (6 702) 1 190 (15 396)
charge – – – – 23 – 23 – 23 – 23 Taxation (6) – – – 884 (206) 672
Surplus on minority
(Loss)/profit after taxation (3 718) 66 (4 714) (1 524) (5 818) 984 (14 724)
buy outs – – – – – – – 280 280 – 280
Acquisition of non- Interest received – – 10 7 – 231 249
controlling interest – – – – – – – – – (573) (573) Interest paid – – – – (243) (340) (583)
Depreciation and amortisation (10) – (1 163) (1) (1 250) (539) (2 963)
Total changes 330 2 397 2 727 – 23 (2 679) (2 656) (3 776) (4 016) (418) (4 194) Non-current asset additions – – 80 – 740 – 820
Balance at Total assets 50 438 9 074 19 724 1 556 11 361 4 396 96 549
31 December 2012 3 211 63 940 67 151 23 184 4 918 4 980 33 083 (31 687) 68 547 377 68 924 Total liabilities (48) (12) (299) (98) (17 555) (5 419) (23 431)
10. Shares issued
The Company issued the following shares during the period and up to the date of this announcement:
– on 19 October 2012, 25 098 405 ordinary shares at an average price of 9.10 pence per share in terms of a placing of its shares;
– on 14 December 2012, 7 913 799 ordinary shares at 7.25 pence per share in terms of a general issue of shares for cash;
– on 18 January 2013, 15 757 576 ordinary shares at 9.00 pence per share in terms of a general issue of shares for cash;
– on 18 January 2013, 538 805 ordinary shares at 9.00 pence per share to settle advisory fees;
– on 29 January 2013, 7 679 730 ordinary shares at 8.05 pence per share in terms of a placing of its shares; and
– on 27 February 2013, 1 194 455 ordinary shares at 7.86 pence per share in terms of a placing of its shares.
11. Going concern
The directors have adopted the going-concern basis in preparing the condensed interim financial results. An emphasis of matter was
placed on the capability of the Company to continue as a going-concern in the 30 June 2012 annual results. This emphasis arose at a
particular time within the implementation of the Company’s stated business plan of establishing an operational Mine-to-Metal platinum
company. The implementation strategy of the business plan has been clearly stated and focuses on establishing an operational smelter
and refining entity with secured low cost power that will be migrated off tolling contracts onto the Company’s self-produced platinum
containing material. The Company will secure its own platinum material by initially focusing on surface and shallow near surface material
before targeting more traditional platinum mining. This will enable the Company to continuously grow its earnings capability in the short
term while requiring only modest capital investment.
The Company has progressed significantly with the implementation of its business plan during the period under review which has continued
post the period under review, achieving the following key milestones:
– The Company continued with the ramp-up of the newly commissioned ARC furnace to achieve targeted throughput in the third quarter
of 2012 which is reflected in the growth of both the revenue and gross profit margin achieved by the smelter operation;
– The Company secured the rights to recover platinum group-elements (PGEs) from an estimated 800.000 tonnes of PGE-bearing
chromite tailings (“Tailings”) and from current arisings on the Dilokong Chromite Mine in the Eastern Bushveld of South Africa;
– The Company’s subsidiary Pollux formalised a binding and exclusive memorandum of understanding with Phokathaba to toll process
the Tailings in its nearby Smokey Hills mine concentrator. This arrangement has accelerated the timeline for production from the
Tailings by an estimated 18 months and eliminated the capital investment for a new concentrator;
– The Company entered into a private power purchase agreement with the national energy provider of South Africa for the sale of
5.1MW of power and commenced delivery of power on 23 December 2012. This has the effect of increasing both the Company’s
revenue generation and improving the profitability of the smelter operation as the cost of power used by the smelters are offset against
the sale of private power;
– In January 2013 the Company entered into an extension to the private power purchase agreement allowing the sale of up to 10.1MW
of power to the national energy provider of South Africa. The contract is valued at approximately ZAR98 million (£7.3 million) per
annum. The Company is required to upgrade its power infrastructure to deliver on the increased power estimated at a cost of
approximately ZAR5.1 million (£0.38 million); and
– On 25 February 2013 the directors announced that the Company had entered into an implementation deed and supporting
transactional documents with PLA relating to the acquisition of PLA by the Company. This confirms the last remaining component for
the Company to build a fully integrated Mine-to-Metal platinum company.
The Company also secured the continued support from a SEDA backed financing facility during the period under review to ensure that it
has access to the required funding to implement the stated business plan in the short term.
The directors of the Company are of the opinion that the Company’s business plan has been embedded sufficiently during the period under
review and the period to date to enable the Company to continue with its operations as a going concern.
12. Events subsequent to reporting date
12.1 Acquisition of the entire issued capital of Platinum Australia Limited
A proposed transaction to merge the assets held by PLA with those held by Jubilee (“Enlarged Group”) brings together a set of
complementary assets that achieves Jubilee’s set strategy of forming a fully integrated Mine-to-Metal company that is funded
to bring the operational mine back into full production. The transaction is opportunistic in nature and made available by the
prevailing platinum market during the start-up and operation of PLA’s Smokey Hills mine. It is the view of the Jubilee Board that the
fundamentals underpinning the current platinum markets have improved significantly since the commissioning of the Smokey Hills
mine driven primarily by the reduction in forecasted world-wide platinum production and the continued recovery and growth in new
car sales from the United States and China.
The proposed transaction also affords Jubilee the opportunity to acquire ownership of a fully operational platinum mine and
processing plant supported by a shallow platinum-bearing UG2 reef. The mine’s location in the Eastern Bushveld Igneous Complex
of South Africa’s platinum region offers significant potential for both extending the existing mine life by partnering with bordering
mining companies as well as processing of third-party material.
The Company’s pipeline of platinum projects combines both short-term, shallow assets in Kalplats and Rooderand with the world-
class large Tjate platinum asset. This enables the Company to react in-line with the improving platinum markets by focusing initially
on the exploitation of the smaller shallow resources, requiring relatively smaller capital to bring the projects into production while
continuing with the feasibility study of the cornerstone Tjate project for the longer term.
The proposed structure for the transaction to form the Enlarged Group ensures that the Company is funded to resume production
at its Smokey Hills mine. The mine ramp-up is expected to achieve full production within the first eight months of operation which
enables the Company to continue investment into its project pipeline from self-generated funds.
The transaction will propel Jubilee into a fully integrated, operational platinum mining company underpinned by Jubilee’s current
asset portfolio and complemented by the near-term shallow platinum projects currently held by Platinum Australia, offering both
short-term and long-term growth of the current operations.
Jubilee’s three core business focus areas and asset classes are each significantly enhanced by the proposed transaction:
1. Exploration – World-class Tjate platinum project – Attributable 16Moz 6PGE*+Au (SAMREC Code), first mine and attributable
44Moz 6PGE+Au targeted over total area** (*Platinum Group Elements **before geological losses)
2. Processing – PGM processing rights of Dilokong Chrome mine (DCM). Estimated to be 800.000 tons of platinum-bearing
surface material. The DCM operation is adjacent to Platinum Australia’s Smokey Hills mining and processing operation. The
project requires a processing plant to upgrade the platinum in the DCM material prior to smelting the platinum concentrate.
3. Smelting and Refining – Middelburg Smelting operation (Jubilee Smelting and Refining) (“JSR”). JSR currently operates as a
toll smelting operation with its newly commissioned furnace fully contracted. Jubilee’s strategy is to migrate the new furnace
from smelting ferroalloy material to smelting platinum concentrates in the near term. The smelter process is underpinned by
the ConRoast process to which Jubilee holds the exclusive rights.
-2- Smelting and Refining Middelburg Smelting
(1,2) 3. Jubilee_Eng_T2IB04239.indd 2013/03/28 3:25 PM operation (Jubilee Smelting and Refining) ( JSR ). JSR currently operates as a
toll smelting operation with its newly commissioned furnace fully contracted. Jubilee’s strategy is to migrate the new furnace
from smelting ferroalloy material to smelting platinum concentrates in the near term. The smelter process is underpinned by
the ConRoast process to which Jubilee holds the exclusive rights.
The Platinum Australia asset classes:
1. Exploration – Two shallow platinum-based projects. Each based on open pit mining projects;
i. Shallow Kalplats platinum project – 6.7Mozs 3E* (*3E – Platinum, Palladium and Gold) project starting at surface with a
projected maximum depth of 350 metres with a concluded feasibility study; and
ii. Shallow Rooderand Project – 4.5Mozs 4E* project starting at surface with projected maximum depth of 500 metres with
a concluded drill programme and feasibility report being drafted.
2. Mining – Smokey Hills mining operation, bordering the Dilokong Chrome Mine and nearby Tjate exploration project. Targeted
to produce 60.000 ozs 4E* per annum (*4E – Platinum, Palladium, Rhodium and Gold). The operation holds a design capacity
of 720.000 tons per annum and was commissioned in 2009. The operation reached design capacity in October 2009 on open
pit material. The total project capital invested was ZAR678 million (£50 million at approximated exchange rate of ZAR13.56
to £1), that was made up of processing plant capital ZAR318 million; mine capital of ZAR271 million (2008/09) and project
infrastructure capital (power, water, roads, etc) of ZAR89 million (2008/09).
3. Processing – The Smokey Hills operation includes a processing plant designed to process 720.000 tons of material per
annum. The plant is suited to process chrome-rich platinum containing tailings material as well as UG2 and Merensky platinum
ores. Both Jubilee’s and Platinum Australia’s mining and exploration projects are significantly enhanced by Jubilee’s ability
to further beneficiate concentrates from these projects through its smelting and refining ability underpinned by the exclusive
ConRoast process. The combination of both large long-term assets with smaller, shallow near-term assets, requiring relatively
low capital to bring to operation, ensures that the current operational assets within the enlarged Group are supported by a
strong pipeline of assets that are capable of driving the growth in the company in the near term.
13. Acquisition of non-controlling interest
13.1 Increased investment in PowerAlt
To increase Jubilee’s exposure to the profitable sales of power by PowerAlt, which in turn increases the Company’s profitablity for
the coming financial year, the Company entered into a binding memorandum of understanding (“MOU”) with ASTRA Group Holding
(Pty) Limited (“ASTRA”), a shareholder in PowerAlt, regarding the purchase of shares in PowerAlt.
Under the terms of this MOU the Company will acquire ASTRA’s shareholding in PowerAlt amounting to 19% of the issued share
capital, valued at ZAR13.139.000 (£988.000) (“Value”) in three tranches. The value is payable at Jubilee’s sole discretion, in cash or
through the issue to ASTRA, of new ordinary shares in Jubilee of equivalent cash value. The transaction will result in the Company
owning a 70% interest in PowerAlt.
As at 31 December 2012 the Company had a 58.6% interest in PowerAlt.
The following shares were issued:
1. In the first tranche, on 15 October 2012, the Company acquired shares from ASTRA, amounting to 7.6% of the issued share
capital of PowerAlt, for a consideration of ZAR5.255.600 (£395.000) (40% of value);
2. In the second tranche, on 29 January 2013, the Company acquired shares from ASTRA, amounting to 9.5% of the issued
share capital of PowerAlt, for a consideration of ZAR6.569.500 (£470.943) (50% of value); and
3. In the final tranche, 27 February 2013, the Company acquired shares from ASTRA, amounting to 1.9% of the issued share
capital of PowerAlt, for a consideration of ZAR1.313.900 (£94.189) (10% of value).
The above issues were effected at an issue price equal to the 30 business days’ volume weighted average price on the Johannesburg
Stock Exchange Limited, preceding the two business days before the respective settlement for issuance.
PowerAlt was awarded the tender in August 2012 (as announced 8 August 2012) to supply power to South Africa’s national power-
generating company and commenced sale of electricity in December 2012.
13.2 Increased investment in Jubilee Smelting and Refining (Pty) Ltd (“JSR”)
On 31 July 2012 Jubilee increased its interest to 100% in it subsidiary JSR, the holding company of its Middelburg Smelting
company RST Special Metals (Pty) Ltd via a claim settlement agreement with JSR’s shareholders under the terms of its shareholders’
agreement.
14. Interim report
Copies of the interim report are available to the public free of charge from the Company at 4th Floor, Cromwell Place, London, SW7 2JE
and from Block B, 1st Floor, corner Witkoppen Road and Waterford Place, Paulshof, Johannesburg, during normal office hours for 30 days
from the date of this report and 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
Jubilee Platinum Plc
Colin Bird Tel +44 (0) 20 7584 2155
Leon Coetzer Tel +27 (0)11 465 1913
Andrew Sarosi Tel +44 (0) 1752 221937
finnCap Ltd (Nomad)
Matthew Robinson/Ben Thompson – Corporate Finance
Joanna Weaving – Corporate Broking Tel +44 (0) 20 7220 0500
Shore Capital Stockbrokers Limited (Joint Broker)
Jerry Keen/Edward Mansfield Tel: +44 (0) 20 7 408 4090
Sasfin Capital (JSE sponsor)
Leonard Eiser/Sharon Owens Tel +27 (0) 11 809 7500
Registered office:
United Kingdom
4th Floor, 2 Cromwell Place, London, SW7 2JE
South Africa
Unit 8, Block B, 1st Floor, Stoney Ridge Office Park
Corner Witkoppen Road and Waterford Place, Kleve Hill Park
Paulshof 2128
Transfer secretaries:
Computershare Investor Services (Pty) Limited
70 Marshall Street, Johannesburg 2001
PO Box 61051, Marshalltown 2107
Company Secretary (UK):
Capita Company Secretarial Services
Ground Floor, 17 – 19 Rochester Row, London SW1P 1QT 3350
Johannesburg
28 March 2013
sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
Date: 28/03/2013 04:51:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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