Wrap Text
Reviewed provisional results for the year ended 30 June 2013
Jubilee Platinum PLC
Registration number (4459850)
JSE share code: JBL
AIM share code: JLP
ISIN: GB0031852162
("Jubilee" or the "Company")
REVIEWED PROVISIONAL RESULTS FOR THE YEAR ENDED 30 JUNE 2013
NOTE:The Company would like to clarify the timing of the announcement.
The timing is in compliance with the Listings Requirements of the JSE Limited ("JSE")
that requires the short form of the announcement to appear in print in the relevant
South African press on Monday 30 September. As such, the full announcement must be
released on the JSE today and to ensure an orderly market we have co-ordinated the
release in London.
The directors of JSE listed and AIM traded Jubilee, the 'Mine-to-Metals' exploration
and development company, are pleased to announce its condensed reviewed
provisional results for the year ended 30 June 2013. Shareholders are also advised
that the Group's auditors, Saffery Champness, have reviewed these results as
required by the JSE Listings Requirements.
HIGHLIGHTS
Financial
- Revenue up 28% to GBP4.8 million (ZAR72.0 million) (2012: GBP3.7 million
(ZAR55.5 million)). The increase in revenue is in line with new electricity
sales by Power Alt Pty Ltd (Power Alt), a 70% held subsidiary of Jubilee, to
the South African national electricity public utility while maintaining
production revenues at RST Special Metals Pty Ltd (RST) in Middelburg for
the period under review
- Gross profit up 864% to GBP1.9 million (ZAR28.5 million) (2012: GBP0.2 million
(ZAR3.0 million)), which is in line with both the electricity sales and a
sustainable reduction in operational overheads at RST during the period
under review
- Headline and diluted headline earnings remained in line with the previous
period whilst earnings improved marginally
Mining and Exploration
- Tjate Platinum Corporation Pty Ltd (Tjate) concluded a sale of rights
agreement, pursuant to a ZAR75 million (GBP5 million) cash offer from a
major mining company for its non-core Quartzhilll farm portion of the Tjate
Platinum project
- In August 2012, in Madagascar, Jubilee entered into a farm-in agreement
with iron-ore focused Indian Pacific Resources Limited (IPR), in terms of
which IPR has the exclusive right to earn in to commodities on the
Company's Ambodilafa concession, other than platinum group elements,
metals traded on the London Metal Exchange and chrome
Surface Operation and Processing
- Jubilee's subsidiary Pollux Investment Holdings Pty Ltd (Pollux) was
awarded the processing right to recover the platinum group metals (PGM)
contained in the 800,000 tonnes Dilokong Chrome Mine surface tailings
(DCM Tailings or Tailings)
- Jubilee concluded a toll processing agreement in November 2012 (Toll
Agreement) with PhokaThaba Platinum Pty Ltd (PhokaThaba or Smokey
Hills), a subsidiary of Platinum Australia Limited (PLA) (under
administration), for the processing of the Tailings at the Smokey Hills
concentrator
- The Toll Agreement enables Jubilee to commence processing of the Tailings
starting at a rate of 10,000 tonnes per month and ramping up to a
targeted 35,000 tonnes per month over a 6 month period
- Jubilee's subsidiary Power Alt was awarded a tender for the sale of
electricity to the South African national electricity public utility. The
maximum contract value totals GBP6.3 million (ZAR98 million) per annum.
Sales commenced during December 2012 with revenue totalling GBP1.3 million
(ZAR20.2 million) for the period under review
- Jubilee increased its interest in Power Alt to 70% from 51% through the
acquisition of minority shareholders. This enabled Jubilee to leverage this
asset towards funding its short and medium term platinum Mine-to-Metals
strategy
- The Company also increased its shareholding to 100% in Jubilee Smelting
and Refining Pty Ltd (JSR) through an earn-in agreement based on the
capital invested by Jubilee. Jubilee consequently holds 100% of RST Special
Metals Pty Ltd (RST) in Middelburg
- Jubilee has secured project funding, post the period under review, totalling
US$3 million (ZAR29.7 miilion) for both the capital and working capital
required to commence with the processing of the Tailings leveraging off its
Power Alt asset
Targeted Acquisition of Platinum Australia Limited
- Jubilee executed an Implementation Deed (ID) with PLA (under
administration) to acquire all of the issued shares of PLA by way of a
scheme of arrangement (Scheme) in accordance with Australian Law
- Jubilee shareholders voted in favour of the acquisition of PLA on 28 May
2013
- Jubilee reduced the offer in-line with the prevailing platinum market
conditions and increased debt retained in PLA from approximately 1 Jubilee
share for every 2.593 PLA shares to offering approximately 1 Jubilee share
for every 5.68 PLA shares. The revised offer has been recommended by the
PLA board. As such, PLA shareholders would hold approximately 16.5% of
the issued share capital of Jubilee following implementation of the Scheme
- Jubilee concluded a Memorandum of Understanding (MOU) with PLA's major
creditor, Macquarie Bank Limited (MBL), for the settlement and re-financing
of the existing debt held by MBL
- At the time of this report the only remaining conditions precedent to the
implementation of the Scheme are:
securing funding of approximately US$19 million (GBP12 million
(ZAR180 million) towards the transaction and the restart of the
processing and mining operation;
Australian Court approval of the Scheme; and
final PLA shareholder approval.
ACCELERATION OF JUBILEE's MINE-TO-METALS STRATEGY
During the period under review, Jubilee has been successful in securing key assets,
which will be used for the execution of the Company's stated Mine-to-Metals
strategy.
Jubilee, through its Toll Agreement, is able to commence production of platinum
concentrates containing approximately 800,000 tonnes DCM Tailings in the Smokey
Hills mine processing plant. The processing of the DCM Tailings is not dependent
on the acquisition of PLA and can commence prior to the conclusion of the PLA
transaction.
Jubilee leveraged its power plant asset, Power Alt, to secure the capital and
working capital funding in order to commence the platinum operations as soon as
possible. Jubilee received an unsolicited offer to purchase (Sale Agreement) its
holding in Power Alt from Global Renewable Energy Pty Ltd (GRE).
Under this Sale Agreement GRE was due to pay Jubilee an amount of US$8.9
million (GBP5.6 million (ZAR87.1 million) for the acquisition of 40% of the issued
shares in Power Alt as well as 65% of the issued shares in RST. To date Jubilee has
received the non-refundable deposit of US$0.2 million (ZAR2 million) as well as
US$0.56 million (ZAR5.5 million) non-refundable investment in the upgrade of
power Alt's facilities and a further US$0.123 million (ZAR1.2 million) non-
refundable payment towards the working capital of RST by GRE.
GRE did not honour the contractual payment deadline and is currently in breach of
the Sale Agreement. Jubilee will initiate the necessary action to rectify the breach
and has reserved all its rights under the Sale Agreement.
Notwithstanding the absence of the GRE payment due under the Sale Agreement,
Jubilee has been successful in fast tracking its Mine to Metals strategy by securing
project funding leveraging off its Power Alt asset for both the expansion of
electricity sales to the South African national electricity public utility as well as
securing all capital and working capital required to commence with processing of
the DCM tailings. This funding ensures that Jubilee is able to maintain its drive to
grow its earnings in the short term through the implementation of its Mine-to-
Metals strategy while continuing to focus on the conclusion of the PLA transaction.
The directors believe that the combination of Jubilee and PLA's assets is strongly
complementary, which allows Jubilee to accelerate its objective of establishing a
fully operational mine-to-metals platinum company. The combination of Jubilee's
acquired processing rights to platinum-bearing surface material with the fully
operable PLA mining and processing assets potentially ensures that the combined
entity is able to establish itself as one of the lowest cost producers of platinum
concentrates.
The central location of Smokey Hills within the Eastern Limb of South Africa's
platinum region makes the operation attractive for the processing of 3rd party
material in the region. This has the potential to add significant flexibility to the
PhokaThaba operation through increased toll processing, to counter the volatility in
the platinum price.
Jubilee has been approached to process 3rd party material in the region that would
add to the DCM Tailings. This offers the proposed enlarged group the option of
combining toll processing of 3rd party material with the processing of own material
from the PhokaThaba mine, thereby allowing a gradual mine ramp-up and a
significant reduction in the capital required for the mine to reach full operation and
in turn the required transactional funding. The funding condition as stated in the ID
was amended to reflect this option.
CHAIRMAN'S REPORT
Dear Shareholder,
My report of last year was fairly pessimistic on conditions within the platinum
industry and factors outside the industry affecting the Company's ability to pursue
its business objectives.
While the period under review has continued to be challenging, I am pleased to
report that platinum prices are improving in Rand terms due largely to a weak Rand
Dollar exchange rate. Labour unrest, while not completely settled, is showing signs
of improvement as evidenced by the early resolution of the recent gold mine strike.
Jubilee has remained focused on its Mine-to-Metals strategy and has been
successful in securing key assets towards bringing into operation this strategy.
Jubilee is currently in negotiations with a number of entities with a view to
expanding on its platinum containing surface assets to further build on this
strategy.
Jubilee is well positioned to commence in the short term with the processing of the
platinum containing Dilokong Chrome Mine tails. Jubilee is able to execute this
project with-out requiring a dedicated processing plant estimated at US$12 milion,
by toll processing the material through the adjacent, Platinum Australia owned,
PhokaThaba's Smokey Hills processing plant. Jubilee has secured sufficient funding
to commence operations and is in discussions with Platinum Australia to confirm a
time line to ensure operational readiness of the processing plant.
The Platinum Australia merger has not been concluded but the Company is
optimistic that the scheme of arrangement will be completed by year end. The key
obstacles to conclusion of the transaction have been the difficulties in ensuring
adherence to listing requirements across three exchanges; being the JSE (South
African), AIM (London) and ASX (Australia) including finalisation of financial
arrangements for the funding of the acquisition and the re-start of the mining and
processing operations.
Jubilee identified its cash generative power plant and leveraged this asset to secure
project funding towards the PLA transaction and to bring into operation the surface
processing of the DCM tailings.
The financing situation was compounded by the failure of GRE to complete by the
expected contracted date, their 65% acquisition of the smelter facility and 40%
acquisition of the power plant located at Middelburg. Jubilee has initiated the
necessary action to rectify the breach and has reserved all its rights under the Sale
Agreement.
The successful leveraging of its power plant asset has enabled project funding for
both expansion of the electricity sales as well as the capital and the working capital
required to commence with the processing of the DCM tailings material.
Agreement for the sale of the Quartzhill farm, a portion of the Tjate Platinum
project, has been formally agreed between the major mining company and the
Board of Tjate Platinum. The agreement is for ZAR75 million in cash to Tjate. The
sale is subject to approval of the Department of Mining and Resources (DMR) and it
is expected that this approval will be forthcoming in the near future. The Quartzhill
farm has no impact on the Tjate mining plan and is considered non-core. Although
proximal, the farm is not relevant to the design of the future mine.
The Board is active throughout the Bushveld complex in identifying situations, be it
primary or secondary, which link platinum and chrome together in order to utilise
the Company's exclusive ability to process this material through its ConRoast
smelter. Jubilee's access and knowledge of ConRoast will allow it to optimise
commercially such situations more effectively than any of its peers.
Jubilee, through its 70% interest in Power Alt, successfully commenced selling
electricity into South Africa's national grid in January of this year. Thus, apart from
providing our smelting division with an offset against electricity costs, Power Alt is
developing into a standalone business in its own right, which facilitated the ability
of Jubilee to secure project financing to fund its short term plantinum Mine-to-
Metals strategy. Significant income can be achieved through generation of
electricity into the national grid, and the Power Alt Board is currently considering
doubling the size of Power Alt's power station to take advantage of this low risk and
low capital source of income.
Further detail design and evaluation work has been carried out with Northam
Platinum under the executed Technology Agreement between the two companies.
The work to date has satisfied all criteria imposed by the agreement and it's
expected to progress this project in the near future.
The Dilokong chrome mine contract to process platinum-bearing chrome tailings
has now been concluded with Jubilee owning significantly more rights than at the
time of last year's report. We expect to commence processing tailing in the very
near future. We are also in discussions with a number of companies concerning the
toll processing of primary ore.
The Group reported a loss for the year ended 30 June 2013 of 2.41 (36.17 cents)
(2012: loss of 2.43 (36.47 cents)) pence per ordinary share. Headline loss for the
year was 2.41 (36.17 cents) (2012: loss of 2.43 (36.47 cents)) pence per ordinary
share.
Trading conditions in small capped mining stocks have continued to be challenging
during the period under review, however, some light is being seen. Trading on the
AIM market is increasing and we do see a subtle but steady move of investment
being directed into these companies to capitalise on the low valuations placed by
the markets. This activity is usually led by the retail sector with institutional money
lagging this sector. It is my personal opinion that this lag will be pronounced and
protracted in this cycle.
The Company considers the fundamentals for platinum to be outstanding for the
coming year. This opinion is led by the upsurge in new car purchases in North
America and some improvement in Europe. The demand we feel is improving but
we do not see similar positive signs from the supplier side and therefore we remain
bullish on the platinum price. We see the South African Rand continuing to weaken
although an upturn in commodity prices could reverse the trend. On the whole,
however, our confidence remains for a strong Rand denominated platinum price.
I would like to thank my fellow directors for the untiring efforts for the activities for
which they are responsible. In particular I would like to thank Leon Coetzer, the
Chief Executive, for his resilience and focus across the wide range of challenges he
has had to face on a daily basis.
Finally I would like to express my hopes for a more stable platinum market, more
economic confidence as a platform to enter next year. I would like to reassure
investors of the Board's total commitment to the Mine-to-Metals strategy.
Colin Bird
Chairman
30 September 2013
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 30 June 2013
Reviewed Audited
Group Group
12 months 12 months
to 30 June to 30 June
2013 2012
GBP'000 GBP'000
Note
Revenue 4 752 3 725
Cost of sales (2 896) (3 532)
Gross profit 1 856 192
Operating costs (9 056) (8 911)
Loss from operations (7 200) (8 719)
Other income 117 500
Operating loss (7 083) (8 219)
Investment income 26 249
Finance costs (269) (583)
Loss before taxation (7 326) (8 552)
Taxation (146) 672
Loss for the year (7 472) (7 880)
Other comprehensive income
- Exchange loss on translation of foreign
subsidiaries (8 002) (6 844)
Total comprehensive loss for the year (15 474) (14 724)
Loss for the year attributable to:
Owners of the parent (7 761) (6 783)
Non-controlling interest 289 (1 097)
(7 472) (7 880)
Total comprehensive loss attributable to:
Owners of the parent (15 763) (13 627)
Non-controlling interest 289 (1 097)
(15 474) (14 724)
Basic and headline loss (7 761) (6 783)
Weighted average number of shares 322 217 279 147
Diluted weighted average number of shares 322 217 288 922
Basic loss per share (pence) 2 (2.41) (2.43)
Diluted loss per share (pence) 2 (2.41) (2.43)
Headline loss per share (pence) 2 (2.41) (2.43)
Diluted headline loss per share (pence) 2 (2.41) (2.43)
Basic loss per share (cents) (36.17) (36.47)
Diluted loss per share (cents) (36.17) (36.47)
Headline loss per share (cents) (36.17) (36.47)
Diluted headline loss per share (cents) (36.17) (36.47)
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 30 June 2013
Reviewed Audited
Group Group
12 months 12 months
to 30 June to 30 June
2013 2012
Note GBP'000 GBP'000
Assets s
Non-Current Assets
Property, plant and equipment 8 539 11 878
Intangible assets 73 242 81 917
11 81 781 93 795
Current Assets
Inventories - 256
Current tax receivable 21 22
Trade and other receivables 1 231 1 413
Cash and cash equivalents 726 1 063
1 978 2 754
Total Assets 83 759 96 549
Equity and Liabilities
Equity Attributable to Equity Holders
Parent
Share capital 10 3 543 2 881
Share premium 66 144 61 543
Merger reserve 23 184 23 184
Share-based payment reserve 4 918 4 896
Currency translation reserve (343) 7 659
Accumulated loss (35 063) (27 840)
Total Equity 62 383 72 323
Equity interest of non-controlling interest 427 795
Net Equity 62 810 73 118
Liabilities
Non-Current Liabilities
Other financial liabilities 4 - 1 164
Deferred tax liability 16 581 17 502
16 581 18 666
Current Liabilities
Loans from related parties 373 2 164
Other financial liabilities 4 1 736 873
Trade and other payables 2 006 1 526
Deferred income 254 202
4 369 4 765
Total Liabilities 20 949 23 431
Total Equity and Liabilities 83 759 96 549
Number of shares in issue 354 340 288 122
Net asset value per share (pence) 17.73 25.38
Net tangible asset value per share (pence) (2.94) (3.05)
Net asset value per share (cents) 266.59 380.70
Net tangible asset value per share (cents) (44.10 (45.75)
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
as at 30 June 2013
Share Share Merger Share- Currency Total Accumulated Total Non- Total
capital premium reserve based translation reserves loss attributable Controlling equity
payment reserve to parent of Interest
reserve equity
holders
Balance at 30 June 2011 2 565 57 595 23 184 5 171 14 503 42 858 (21 057) 81 961 1 892 83 853
Changes in equity
Loss for the year - - - - - - (6 783) (6 783) (1 097) (7 880)
Other comprehensive income for the year - (6 844) (6 844) - (6 844) (6 844)
Total comprehensive income for the year - - - - (6 844) (6 844) (6 783) (13 627) (1 097) (14 724)
Issue of share capital net of costs 316 4 106 - - - - - 4 422 - 4 422
Share issue costs written off against share
premium (158) - (158) (158)
Share based payment credit to equity - - - (275) - (275) - (275) - (275)
Total changes 316 3 948 - (275) (6 844) (7 119) (6 783) (9 638) (1 097) (10 735)
Balance at 30 June 2012 2 881 61 543 23 184 4 896 7 659 35 739 (27 840) 72 323 795 73 118
Changes in equity
Loss for the year - - - - - - (7 761) (7 761) 289 (7 472)
Other comprehensive income for the year - - - - (8 002) (8 002) - (8 002) - (8 002)
Total comprehensive income for the year - - - - (8 002) (8 002) (7 761) (15 761) 289 (15 474)
Issue of share capital 662 4 696 - - - - 5 358 5 358
Share issue costs written off against share
premium (94) (94) (94)
Share-based payment charge 22 22 22 22
Surplus on minority buy outs 538 538 538
Acquisition of non-controlling interest (657) (657)
Total changes 662 4 601 - 22 (8 002) (7 980) (7 223) (9 940) (368) (10 308)
Balance at 30 June 2013 3 543 66 144 23 184 4 918 (343) 27 759 (35 063) 62 383 427 62 810
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 30 June 2013
Reviewed Audited
Group Group
Year Year
ended ended
30 June 30 June
2013 2012
GBP'000 GBP'000
Cash from operating activities
Loss for the period before taxation (7 324) (8 552)
Adjustments for:
Profit on sale of property, plant and equipment 142 -
Credit loan adjustments (163) -
Share based payment expenses 355 -
Interest received (26) (249)
Interest paid 268 583
Depreciation and amortisation 2 688 2 903
Share-based payment 22 (275)
Cash from operations before working capital changes (4 038) (5 591)
Working capital changes 1 446 1 233
Decrease in inventory 256 574
Decrease in receivables 398 1708
Increase/(decrease) in payables 792 (1049)
Cash generated by operations (2 592) (4 358)
Interest received 26 249
Interest paid (268) (583)
Net cash from operating activities (2 834) (4 692)
Cash flows from investing activities
Purchase of intangible assets (19) (80)
Sale/(purchase) of property, plant and equipment 20 (740)
Net cash used in investing activities (1) (820)
Cash flows from financing activities
Issue of shares 2 643 4 264
Deferred income - 202
Loans advanced/(repaid) from shareholders (758) 884
Repayment of other financial liabilities 404 (1 448)
Net cash generated from financing activities 2 289 3 902
Net decrease in cash and cash equivalents (544) (1 610)
Cash and cash equivalents at beginning of the year 1 063 2007
Effects of foreign exchange on cash and cash equivalents 207 666
Cash and cash equivalents at the end of the year 726 1 063
NOTES TO THE REVIEWED PROVISIONAL RESULTS FOR THE YEAR ENDED
30 JUNE 2013
1. Basis of preparation
The Group reviewed provisional results for the year ended 30 June 2013 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
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 and
the Companies Act 2006 (UK).
RESPONSIBILITY STATEMENT
The directors take full responsibility for the preparation of the provisional report
and that the financial information has been correctly extracted from the underlying
annual financial statements.
The condensed consolidated provisional financial 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 30 June 2012
and any public announcements by Jubilee Platinum Plc after that date to the date of
publication of these results. A copy of the statutory accounts for the year ended 30
June 2012 has been delivered to the Registrar of Companies.
All monetary information is presented in the functional currency of the Company
being Great British Pound. The accounting policies applied by the company in the
reviewed provisional results are consistent with those adopted and disclosed in the
Group's annual report for the year ended 30 June 2012.
2. Financial review
Revenue up 28% (2012: down 32%) which is in line with new electricity sales by
Power Alt Pty Ltd (Power Alt), a 70% held subsidiary of Jubilee, to the national
electricity public utility in the amount of GBP1.3 million for the 7 months ending 30
June 2013. Despite decreased power supply to RST Special Metals Pty Ltd (RST),
which came as a result of increased power supply to the national electricity public
utility, RST managed to maintain sales at GBP3.1 million (2012: GBP3.1 million) for the
period under review.
The Group reported a loss for the year ended 30 June 2013 of 2.41 (36.17 cents)
(2012: loss of 2.43 (36.47 cents) pence per ordinary share. Headline loss for the
year was 2.41 (36.17 cents (2012: loss of 2.43 (36.47 cents). The weighted
average number of ordinary shares in issue for the period under review was
322 217 million (2012: 279 147 million). There is no effect on dilution of earnings
per share figures (2012: there was no effect on dilution of earnings per share
figures) . There are no reconciling items between basic loss and headline loss
reported for the year.
The Group reported a net asset value of 17.73 (266 cents) (2012: 25.38 (381
cents) pence per share and a net negative tangible asset value per share of 2.94
(44.12 cents) (2012: 3.05 (45.78 cents) pence per share. The total shares in issue
as at 30 June 2013 were 354 340 million (2012: 288 122 million).
Other comprehensive income only comprises foreign currency translation
differences which can be reclassified to profit and loss in future.
3. Auditor's review opinion
These condensed year-end results have been reviewed by the Group's auditors,
Saffery Champness. Their unmodified review report and the condensed reviewed
provisional results are available for inspection at the Company's registered office.
4. Other financial liabilities
Other short term financial liabilities include a convertible loan note of GBP0.74 million
as well as a loan from Investec Bank to Power Alt in an amount of GBP0.99 million.
5. Commitments and contingencies
There are no material contingent assets or liabilities as at 30 June 2013.
Total operating lease commitments at 30 June 2013:
Year ended Year ended
30 June 30 June
2013 2012
GBP'000 GBP'000
Less than one year 102 78
Longer than one year 22 102
Total 124 180
6. Dividends
No dividends were declared during the period under review (2012: nil).
7. Board
No changes were made to the Board of Directors during the period under review.
8. Business segments
In the opinion of the Directors, the operations of the Group companies comprise six
reporting segments, being:
- the evaluation and development of PGM smelters utilising exclusive
commercialisation rights of the ConRoast smelting process, located in South
Africa (Evaluation and 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);
- the development of Platinum Group Elements (PGEs) and associated metals
(PGE development) in South Africa;
- Base Metal Smelting in South Africa;
- Electricity Generation in South Africa; and
- The Parent Company operates a head office based in the United Kingdom
which incurred certain administration and corporate costs.
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 year ended 30 June 2013
South Africa South
Evaluation Australia South Africa South Africa Africa
and Nickel PGE Other Base Metal Electricity
GBP'000 development Tailings Development operations Smelting Generation Total
Total revenues 331 - - 3 5 747 3 152 9 232
Less:
Intercompany
revenue - - - - (2 608) (1 873) (4 481)
Revenue from
external
customers 331 - - 3 3 139 1 279 4 751
Loss before
taxation (4 299) (80) (32) (7 289) (1 782) (1 845) (15 328)
Taxation - - - 15 70 (231) (146)
Loss after
taxation (4 299) (80) (32) (7 273) (1 782) (2 132) (15 614)
Interest 1 - - 25 - - 26
received
Interest paid - - - (49) (18) (202) (269)
Depreciation
and
Amortisation (924) - - (8) (1 337) (419) (2 688)
Total assets 6 154 23 320 43 455 931 6 315 3 584 83 759
Total liabilities (199) (7) (1) (17 198) (1 345) (2 199) (20 949)
Segment report for the year ended 30 June 2012
South Africa South
Evaluation Africa South
and Australia South Africa Base African
Development Nickel PGE Other Metal Electricity
GBP'000 Tailings Development operations Smelting Generation Total
Total revenues 604 5 369 2 397 8 370
Inter-company
revenue (2 248) (2 397) (4 645)
Revenue from
external customers 604 3 121 3 725
(Loss)/profit before
taxation (3 712) 66 (4 714) (1 524) (6 702) 1 190 (15 396)
Taxation (6) 884 (206) 672
(Loss)/profit after
taxation (3 718) 66 (4 714) (1 524) (5 818) 984 (14 724)
Interest received 10 7 231 249
Interest paid (243) (340) (583)
Depreciation and
amortisation (10) (1 163) (1) (1 250) (539) (2 963)
Non-current asset
additions 80 740 820
Total assets 50 438 9 074 19 724 1 556 11 361 4 396 96 549
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:
Date Number of Issue price - Purpose if the
shares pence issue
19 October 2012 25 098 405 9.10 Cash, Debt(1) and
Acquisition
14 December 2012 7 913 799 7.25 Cash and Debt
18 January 2013 15 757 575 9.00 Cash
18 January 2013 538 805 9.00 Debt
29 January 2013 7 679 730 8.05 Acquisition and
Debt
27 February 2013 1 194 455 7.86 Acquisition
11 July 2013 803 495 6.58 Debt
20 June 2013 8 034 954 6.58 Cash
17 July 2013 1 192 191 5.89 Debt
20 August 2013 1 396 258 5.20 Debt
1 =Debt includes payment of advisory fees and placement fees
11. Non-Current Assets
The significant movement in Non-Current Assets largely relates to the devaluation
of the South African Rand to the Great British Pound at the year-end.
12. Going concern
The directors have adopted the going-concern basis in preparing the financial
statements. An emphasis was placed on the capability of the Company to continue
as a going-concern in the 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-Metals platinum company. The emphasis of
matter has since been lifted for the year ending 30 June 2013.
The Company has since December 2012 progressed significantly with the
implementation of its business plan during the period under review which has
continued post the period under review, including inter alia the following:
Awarded the right to recover PGMs contained in the 800,000 tonnes DCM
Tailings and future arisings;
Conclusion of the Toll Agreement in respect of processing approximately
800,000 tonnes Dilokong Tailings at its Smokey Hills Mine concentrator
accelerating the projected processing of the tailings by some 18 months;
Formalizing a ZAR75 million (GBP5 million) cash offer from a major mining
company for its non-core Quartzhilll farm portion of the Tjate Platinum
project;
The Company continued with the ramp-up of the newly commissioned AC-
arc furnace to achieve targeted increased throughput by the smelter
operation for Q3 and Q4 of 2013;
The Company increased ownership to own 70% of Power Alt and also
received approval from NERSA for the sale of electricity from Power Alt to
the national electricity public utility of South Africa;
Tender awarded by NERSA allowing the sale of up to 10.1MW of power by
Power Alt to the national electricity public utility. The contract is valued at
approximately ZAR98 million (GBP7.3 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 (GBP0.38 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.
Refer to note 2 under project updates for an update of this transaction.
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 electricity 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 directors of the Company are of the opinion that the Company's business plan
has been embedded and is funded sufficiently to enable the Company to continue
with its operations as a going concern.
13. Events subsequent to year end
Other than information included in this results announcement, there were no
significant events subsequent to year-end that would have a material impact on the
financial statements.
14. Related parties
Related party Nature of relationship Nature of transaction
Galileo Resources South Colin Bird is a common Rent received in an
Africa Pty Limited (GSA) director in GSA and amount of GBP0.03 million
Jubilee for office space in South
Africa
30 September 2013
CONTACT DETAILS
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 Nominated Adviser
Matthew Robinson/Ben Thompson Corporate Finance
Joanna Weaving Corporate Broking Tel +44 (0)20 7220 0500
Sasfin Capital (JSE sponsor)
Angela Teeling-Smith/Sharon Owens Tel +27 (0)11 809 7500
Bishopsgate Communications Ltd
Nick Rome/Anna Michniewicz Tel +44 (0) 20 7562 3350
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 Ltd (SA)
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
Date: 27/09/2013 04:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
