Wrap Text
Unaudited Interim Results for the six months ended 31 December 2014
(“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.
Jubilee Platinum Plc
(“Jubilee” or “the Company”)
UNAUDITED INTERIM RESULTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2014
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 2014.
The interim results for the period under review reflect the growth in the Company's revenue base supported by the
improved performance from the Middelburg smelter and power plant (collectively the “Middelburg Operations”) while
further reducing overhead expenditure. The improved performance of the Middelburg Operations reflects the
successful implementation of the renewal program over the past two years. Further process optimisation is expected
during H1 of 2015, specifically targeting the Middelburg Operations variable cost component.
FINANCIAL HIGHLIGHTS
- Revenue increased by 22% to £2.8 million (2013: £2.3 million). In ZAR terms revenue increased to
ZAR 49.4 million (2013: ZAR36.11 million).
- Gross profit increased by 34% to £1.3 million (2013: £0.97 million) – supporting the sustainable
revenue growth over the last two reporting periods. In ZAR terms gross profit increased to ZAR 23.7
million (2013: ZAR 15.5 million).
- Loss per share for the period reduced by 57% to a loss of 0.2 pence per share (2013: loss of 0.46).
OPERATIONAL HIGHLIGHTS
- Middelburg Operations performance further improved on the back of the implementation of the smelter
renewal program.
- The Department of Mineral Resources (DMR) requested Tjate to support its mining right application
with an operational rehabilitation guarantee. This requested is expected to be the final step prior to the
issuance of a Mining Right.
- Entered into a PGM (Platinum Group Metals) heads of agreement (HOA) with Hernic Ferrochrome
Proprietary Limited (Hernic) for the processing of its PGM-containing surface material estimated in
excess of 3.3 million tonnes. The HOA with Hernic significantly enhances Jubilee?s access to platinum
containing surface material which is in addition to the platinum containing surface material secured at
ASA.
- Both the Hernic and the ASA platinum processing projects placed on accelerated project schedules
targeting to be fully operational during 2016.
Chief Executive Leon Coetzer commented:
“We are delighted with the continuing progressive results, both operational and financial, from our Middelburg
Operations.
“Jubilee is firmly focussed on the execution of its surface platinum processing projects as we accelerate the Company
into a position where we are a significant producer of our own platinum group metals. The recently reported
acquisitions and agreements are transformational and will make Jubilee a significant player in the platinum arena. It is
expected that our new projects will be executed and in commercial production during 2016. The Jubilee mission is
strengthened and supported by its ConRoast capability which is a door opener when competing for projects and
provides us with multi opportunities for the rapid growth of the Jubilee Mines-to-Metal mission.”
OVERVIEW
Under the HOA with Hernic Jubilee has been appointed as the exclusive processor to beneficiate both Chrome and
PGM's from the surface material estimated at more than 3.3 million tonnes of platinum containing material at surface.
The targeted platinum process facility of chrome tailings will potentially be the largest of its kind in South Africa.
The ASA platinum processing project from chrome tailings progressed well with the project engineering execution
program well advanced. Both the Hernic and ASA platinum processing projects have been placed on accelerated
project schedules targeting to be fully operational during 2016.
The Tjate mining right application has further progressed with a formal communication received by the DMR
requesting guarantees to be provided for the Tjate Rehabilitation Fund.
MIDDELBURG OPERATIONS
The Middelburg Operations sustained its earnings despite a shortened production period in December due to the early
closure of its key clients over this period.
Revenue for the six months ended 31 December 2014 increased by 22% to £2.8 million (2013: £2.3 million). In ZAR
terms revenue increased to ZAR 49.4 million (2013: ZAR36.11 million) supporting an increase in gross profit to reach
48% thus achieving its targeted gross profit margin of 38%.
Gross profit increased by 34% to £1.3 million (2013: £0.97 million) – supporting the sustainable revenue growth over
the last two reporting periods. In ZAR terms gross profit increased to ZAR 23.7 million (2013: ZAR 15.5 million).
The increase in the gross profit margin was achieved by the continued implementation of a process review and
optimisation strategy. This successful strategy has led to a reduction in electricity used per tonne of metal produced,
of approximately 16%, thereby enabling increased sale of power to the national power grid of South Africa (Power
Utility).
As previously announced the Company concluded extended smelter-recipe optimisation test work on platinum-
containing waste material secured for possible smelting at its Middelburg Operations. A further trial smelt was
concluded in February 2015. The data from the trials will be used to assess the degree of variability and, if warranted,
move forward to commence processing of an estimated 85 000 tonnes of this waste material. The Company expects
the final results from this work to be concluded shortly.
The Company, post the period under review, has entered into discussions with the Power Utility for both the increase
of power sales from the Company?s power plant as well as extending its current short term power purchase agreement
with the Power Utility to a minimum period of 3 years, with the option to extend this period to five years. The Company
expects to conclude its discussions with the Power Utility in Q2 2015.
PLATINUM SURFACE PROJECTS
Further to the conclusion of the HOA with Hernic, the surface materials have been drilled with 1.7 million tonnes being
classified as a Measured Resource, under the SAMREC code, in a Resources Statement produced by SRK
Consulting. A further estimated 2.5 million tonnes of material was drilled by Hernic.
The targeted PGM processing plant for the recovery of the chrome and platinum at Hernic will be the largest of its kind
in South Africa.
Jubilee appointed an engineering and consulting firm for the vetting of the bankable feasibility study as well as the
detail design and engineering drawings for construction of both processing plants.
The Company made good progress in securing funding of the construction and commissioning of the projects
expected to commence in H2 2015. The Company continues to engage with project funding institutions and will
provide further updates once concluded. The combined projects will take Jubilee to a targeted processing of
approximately 80 000 tonnes per month of platinum-containing surface material.
TJATE PLATINUM CORPORATION
Tjate, the Company's targeted 70 million 4E PGM ounce platinum project, has received formal communication from
the DMR requesting a financial guarantee in support of its operational rehabilitation, which is estimated at R27 million,
as contained in Tjate's Environmental Management Programme (Guarantee). This, traditionally, is the final request by
the DMR prior to issuing a Mining Right and brings Tjate closer to the concluding the R75 million (GBP 4.1 million)
Quartzhill sale (a non-core portion of the Tjate project, which lies outside of Tjate's targeted mining activity areas) to a
subsidiary of Anglo Platinum.
The Company has applied to a major insurance company for the provision of the Guarantee. The application is
currently under review and an outcome is expected before the end of Q1 2015. Jubilee, together with Anglo Platinum,
hosted a further community liaison meeting concluding the consultation required for the submission by Anglo Platinum
of the application to the DMR for the ownership transfer of Quartzhill, in terms of Section 102 of the Mineral and
Petroleum Resources Development Act 28 (2002).
CHAIRMAN’S OVERVIEW
Dear Shareholder,
My last Chairman's report expressed some optimism for the platinum price which I am afraid at the time of writing this
interim overview, has not materialised. I do however remain firm in my belief that the fundaments of the Platinum
market remain supportive of an improved platinum price.
The executive team through their efforts has made the company?s prospects for 2015 very exciting. We have reported
the Hernic Heads of Agreement which targets the processing of the platinum containing surface material to recover
the platinum and chrome for mutual benefit.
The ASA metals tailings project design phase has been completed and it is expected that construction of both projects
will commence in the year and become operational during 2016. The combined platinum production from these two
operations could amount to some 40.000 oz per year on a steady state basis and both projects have the benefit of
current arising's which will provide flexibility and extend mine life.
The Middelburg Operations are operating profitably and are attracting much trade interest on both a separate parts
and combined basis. A sale of these assets, if completed, would likely be sufficient to finance our tailing development
and progress the Company into its stated mission of a platinum producer. The Board will consider any approaches
and report back to the shareholders when appropriate.
The sale of the Tjate Quartzhill is still progressing favorably and all the necessary meetings and consultations have
been held. The Board envisages that completion could be within the first half of 2015 although timing of completion is
not entirely within the control of the Company.
The Company continues to review more tailings projects and other business opportunities consistent with our stated
goal of mines to metal. In essence, the Company is in the consolidation stage and will spend 2015 building new
facilities, which on completion, will be a game changer for the company and our loyal and patient shareholders.
We continue with our technical investigation work on the nickel tailing project in Australia and are extremely
encouraged by our progress.
As a general comment on the resource sector and in particular the smaller companies I see very little change in
investor appetite, especially in the exploration and early stage arena. Companies such as Jubilee, who are developing
tangible projects, are being financed but again with more difficulty than normal. We continue to believe, however, that
the need for all commodities will re-emerge and money will be channeled to the pioneering sector of the industry.
Colin Bird
Chairman
25 March 2014
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2014
Consolidated Statement of Comprehensive Income for the six months ended 31 December 2014
Unaudited Unaudited Audited
Group Group Group
6 months 6 months 12 months
to 31 December to 31 December to 30 June
2 014 2 013 2 014
£'000 £'000 £'000
Revenue 2 761 2 264 4 044
Cost of sales (1 439) (1 292) (2 451)
Gross profit 1 322 972 1 593
Operating costs (2 292) (2 557) (7 136)
Loss from operations (970) (1 585) (5 543)
Other income 20 133 392
Operating loss (950) (1 452) (5 151)
Investment income 1 5 9
Finance costs (70) (91) (425)
Loss before taxation (1 019) (1 538) (5 568)
Taxation 6 7 13
Loss for the period (1 013) (1 531) (5 555)
Other comprehensive income
- Loss on translation of foreign subsidiaries (1 292) (6 777) (6 886)
Total comprehensive loss for the 6 months (2 305) (8 308) (12 441)
Loss attributable to:
Owners of the parent (1 206) (1 680) (5 367)
Non-controlling interest 193 148 (189)
(1 013) (1 531) (5 555)
Total comprehensive loss attributable to:
Owners of the parent (2 498) (8 456) (12 193)
Non-controlling interest 193 148 (248)
(2 305) (8 308) (12 441)
Weighted average number of shares 594 156 361 502 423 628
Diluted weighted average number of shares 599 787 361 502 509 154
Basic loss per share (pence) (0.20) (0.46) (1.27)
Diluted loss per share (pence) (0.20) (0.46) (1.05)
Consolidated Statement of Financial Position as at 31 December 2014
Unaudited Unaudited Audited
Group Group Group
6 months 6 months 12 months
to 31 December to 31 December to 30 June
2014 2013 2014
£'000 £'000 £'000
Assets
Non-Current Assets
Property, plant and equipment 5 662 7 038 5 990
Intangible assets 64 518 66 433 65 405
Deferred tax 163 170 -
70 343 73 641 71 395
Current Assets
Current tax receivable 20 20 20
Trade and other receivables 2 151 1 448 1 225
Cash and cash equivalents 424 1 881 733
2 595 3 349 1 979
Total Assets 72 938 76 990 73 373
Equity and Liabilities
Equity Attributable to Equity Holders of Parent
Share capital and share premium 6 554 3 852 5 243
Share premium 68 477 67 250 68 191
Merger reserve 23 184 23 184 23 184
Share based payment reserve 4 918 4 918 4 918
Currency translation reserve -8 461 -7 120 -7 170
Accumulated loss -41 635 -36 743 -40 429
53 037 55 341 53 938
Non-controlling interest 493 574 177
53 530 55 915 54 116
Liabilities
Non-Current Liabilities
Deferred tax liability 15 210 15 515 15 442
15 210 15 515 15 442
Current Liabilities
Loans from related parties 312 325 311
Other financial liabilities 646 2 971 795
Trade and other payables 2 978 1 933 2 448
Deferred income 262 332 262
4 198 5 560 3 816
Total Liabilities 19 408 21 075 19 257
Total Equity and Liabilities 72 938 76 990 73 373
Consolidated Statement
of Changes in Equity as
at 31 December 2014
Share Share Currency Total Accumulated Total Non- Total equity
Share capital Merger based translation reserves loss attributable to controlling
capital reserve payment reserve parent of equity interest
reserve holders
Balance at 30 June 2013 3 543 66 144 23 184 4 918 (342) 27 760 (35 063) 62 385 425 62 810
Changes in equity
Loss for the period
(5 367) (5 367) (189) (5 555)
Other comprehensive
income for the period (6 827) (6 827) - (6 827) (59) (6 886)
Total comprehensive
income for the period (6 827) (6 827) (5 367) (12 194) (248) (12 442)
Issue of shares net of
costs 1 880 1 867 3 747 3 747
Total changes
1 880 1 867 (6 827) (6 827) (5 367) (8 447) (248) (8 695)
Balance at 30 June 2014
5 423 68 011 23 184 4 918 (7 169) 20 933 (40 430) 53 939 177 54 116
Changes in equity
Loss for the period (1 206) (1 206) 193 (1 013)
Other comprehensive
income for the period (1 292) (1 292) - (1 292) - (1 292)
Total comprehensive
income for the period (1 292) (1 292) (1 206) (2 498) 193 (2 305)
Issue of shares net of
expenses 1 131 466 1 596 1 596
Acquisition of non-
controlling interest 122 122
Total changes 1 131 466 (1 292) (1 292) (1 206) (902) 316 (586)
Balance at 31 December
2014 6 554 68 477 23 184 4 918 (8 461) 19 641 (41 635) 53 037 493 53 530
Consolidated Statement of Cash flow for the six months ended 31 December 2014
Unaudited Unaudited Audited
Group Group Group
6 months 6 months 12 months
to 31 December to 31 December to 30 June
2014 2013 2 014
£'000 £'000 £'000
Cash flows from operating activities
Loss for the year before taxation (1 206) (1 618) (5 567)
Adjustments for:
Depreciation and amortisation 692 387 2 187
(Profit)/loss on Sale of Property, plant and equipment (9) - 504
Interest received (1) 75 (9)
Interest paid 70 91 425
Share-based payment charges - - 41
Equity settled expenses - - 405
Operating loss before working capital changes (454) (1 066) (2 014)
Working capital changes 269 (138) 1 045
Decrease/(Increase) in receivables (986) (142) 6
(Decrease) in payables 1 255 5 1 069
Deferred income - - (29)
Cash generated by operations (185) (1 203) (969)
Interest received 1 (75) 9
Interest paid (70) (91) (425)
Net cash from operating activities (254) (1 370) (1 385)
Cash flows from investing activities
Disposal of property, plant and equipment 9 (277)
Purchase of intangible assets - - (9)
Net cash used in investing activities 9 - (287)
Cash flows from financing activities
Proceeds on share issues net of costs 186 479 395
Repayment of shareholders' loans - (49) (62)
Repayment of other financial liabilities (34) 1 583 198
Net cash generated from financing activities 152 2 013 531
Net (decrease)/increase in cash and cash equivalents (93) 644 (1 141)
Cash and cash equivalents at beginning of the year 733 726 726
Effects of foreign exchange on cash and cash equivalents (216) 510 1 148
Cash and cash equivalents at the end of the year 424 1 880 733
NOTES TO THE UNAUDITED INTERIM RESULTS
1. Basis of preparation
The Group unaudited interim results for the 6 months ended 31 December 2014 have been prepared using the
accounting policies applied by the company in its 30 June 2014 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 2014 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 2014 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
The Group reported a loss for the six months ended 31 December 2014 of £1.2 million (2013: loss of £1.68
million). This is divided by the weighted average number of ordinary shares in issue of 594 156 million (2013:
361 502 million) resulting in a basic loss per share of 0.20 pence (2013: basic loss of 0.46 pence) [(2014: ZAR
3.63 cents (“cents”) (2013: 7.41 cents)].
The Group reported a net asset value of 8.4 pence per share (2013: 14.51) [(150.25 cents (2013: 250.95
cents)] and a net negative tangible asset value per share of 1.72 pence per share (2013: 2.73) [(2014:29.88
cents (2013: 47.20 cents)].
The total shares in issue as at 31 December 2014 were 637 339 million (2013: 385 265 million). Other
comprehensive income comprises foreign currency translation differences which can be reclassified to profit
and loss in future.
The past few months has seen a significant reduction in the Group?s overhead expenses. This is evident from
the Group?s improved performance for the period under review. Management?s focus, for the coming reporting
period, will be on the effective management of variable overhead costs as well as variable operational costs
which will further enhance earnings for the Group.
3. Unaudited results
These interim results have not been reviewed or audited by the Group?s auditors.
4. Commitments and contingencies
There are no material contingent assets or liabilities as at 31 December 2014.
5. Dividends
No dividends were declared during the period under review (2013: nil).
6. Board
There were no changes to the board during the period under review.
7. 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; and
• Electricity Generation in South Africa.
• 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 6 months ended 31 December 2014
South Africa
Evaluation Australia South Africa South Africa South Africa
South Africa and Nickel PGE Other Base Metal Electricity
£'000 development Tailings Development operations Smelting Generation Total
Total revenues 62 - - - (2 101) (1 316) (3 354)
Less: Intercompany revenue - - - - 592 - 592
Revenue from external
customers 62 - - - (1 508) (1 316) (2 762)
Loss before taxation 402 5 36 399 470 (293) 1 019
Taxation - - - - - (6) (6)
Loss after taxation 402 5 36 399 470 (299) 1 01
Interest received - - - (1) (0) - (1)
Interest paid 0 - - 70 0 - 70
Depreciation and Amortisation 344 - - - 187 160 692
Total assets 4 087 29 923 13 162 16 849 5 309 3 608 72 938
Total liabilities (146) (10) (5) (1 564) (17 411) (272) (19 409)
Segment report for the 6 months ended 31 December 2013
South Africa
Evaluation Australia South Africa South Africa South Africa
and Nickel PGE Corporate Base Metal Electricity
£'000 Development Tailings Development (Unallocated) Smelting Generation Total
Revenue from external - - - - 1 090 1 174 2 264
customers
Loss before taxation (176) (18) (29) (529) (69) (717) (1 538)
Taxation - - - - - 7 7
Loss after taxation (176) (18) (29) (529) (69) (710) (1 531)
Interest received - - - (2) - (3) (5)
Interest paid - - - 37 - 54 91
Depreciation and amortisation - - - - 207 156 362
Total assets 8 849 30 651 26 954 2 414 5 219 2 904 76 991
Total liabilities (72) (19) (68) (17 437) (1 736) (1 741) (21 073)
Segment report for the year ended 30 June 2014
South Africa South
South Africa South Africa South Africa
Australia Other Africa
Evaluation and PGE Base Metal Total
Nickel operations Electricity
development Development Smelting
£'000 Tailings Generation
Total revenues
(35) - - - (4 812) (1 316) (6 163)
Less: Intercompany
revenue - - - - 2 119 - 2 119
Revenue from external
customers (35) - - - (2 693) (1 316) (4 044)
Interest received (0) - - (5) (0) (3) (9)
Interest paid 0 - - 259 (4) 170 425
Depreciation and
Amortisation 741 - - 7 1 097 343 2 187
Total assets 4 368 31 485 17 156 12 090 5 235 3 039 73 374
Total liabilities (273) (2) (5) (1 036) (16 945) (996) (19 258)
8. Shares issued
The Company has issued 113 024 375 shares during the period under review which commenced on 1 July
2014 as follows:
7 July 2014 14 826 553 1.58 Debt
7 July 2014 16 699 575 1.53 Debt
7July 2014 18 034 104 1.73 Debt
7 July 2014 16 699 575 1.53 Debt
3 October 2014 16 666 667 1.20 Placing
3 Nov 2014 4 368 147 1.30 Debt
3 Nov 2014 3 276 111 1.30 Debt
3 Nov 2014 24 070 776 1.34 Debt
3 Dec 2014 15 082 442 1.23 Debt
Subsequent to the period under review the Company has issued 74 666 664 shares as follows:
25 February 2015 49 999 997 1.50 Placing
25 February 2015 24 666 667 1.50 Debt
9. Going concern
The directors have adopted the going-concern basis in preparing the financial statements.
10. Events subsequent to reporting date
There were no significant events subsequent to the reporting date other than included in this interim report.
11. Interim report
Printed 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 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.
Contacts
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
NOMAD
SPARK Advisory Partners Limited
Sean Wyndham-Quin / Mark Brady
+44 (0)113 370 8975
JSE Sponsor
Sasfin Capital, a division of Sasfin Bank Limited
Sharon Owens
Tel +27 (0) 11 809 7500
Broker
Daniel Stewart and Company PLC
Colin Rowbury – Corporate Broking
Tel: +44 (0) 207 776 6550
Registered offices:
United Kingdom
4th Floor, 2 Cromwell Place, London, SW7 2JE
South Africa
Jigsaw Office Park, Ground Floor, Support Services Place
7 Einstein Street, Highveld Techno Park, Centurion, 0157
Transfer secretaries:
Computershare Investor Services Proprietary Limited
70 Marshall Street, Johannesburg 2001
PO Box 61051, Marshalltown 2107
Company Secretary:
Capita Company Secretarial Services
Ground Floor, 17 – 19 Rochester Row
London SW1P 1QT 3350
25 March 2015
Date: 25/03/2015 09:00:00 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.