Wrap Text
Unaudited interim results for the six months ended 31 December 2015
Jubilee Platinum Plc
(“Registration number 4459850”)
AIM share code: JLP
AltX share code: JBL
ISIN: GB0031852162
(“Jubilee” or “the Company”)
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.
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2015
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 2015.
The interim results of the Group reflect Jubilee's firm focus on the execution of its surface platinum
processing projects as it accelerates into a position where it will become a significant producer of
platinum group metals. The recently reported corporate transactions and platinum processing
agreements are transformational and position Jubilee as a potentially significant player in the platinum
arena. Jubilee's mission is strengthened and supported by numerous opportunities for the rapid
growth of the Jubilee Mine-to-Metals ambitions.
HIGHLIGHTS
During the period under review
- 30 September 2015, Jubilee completes the disposal of 100% of the issued shares in Jubilee
Smelting and Refining Proprietary Limited ("JSR"), and 70% of the issued shares in Power Alt
Proprietary Limited ("PA") to Siyanda Resources Proprietary Limited ("Siyanda") (“Disposal”) for a
consideration of, in aggregate, ZAR 110.5 million (approximately GBP 5.3 million)
- 85% of the Disposal consideration received in cash on 9 October 2015
- Jubilee retains right to construct a 5MW platinum furnace at the Middelburg Operations
- Jubilee retains rights to participate in any expansion of the Power Plant
- The Disposal further facilitates Jubilee's fast track approach towards the implementation of the two
Platinum Surface Processing projects in 2016
- Loss per share from continued operations for the period reduced by 62% to a loss of 0.05 (2014:
loss of 0.14) pence per share (ZAR 1.11 (2014: ZAR 2.51) cents per share)
- Loss per share from discontinued operations for the period up to 30 September 2015 (“Closing
Date”) reduced by 20% to a loss of 0.05 (2014: loss of 0.06) pence per share (ZAR 1.01 (2014: ZAR
1.12) cents per share)
Post the period under review
- Both surface processing projects fully funded
- Secured debt funding of up to USD 10 million (ZAR 155.4 million), unsecured debt funding of up to
USD 5 million (ZAR 77.7 million) and equity funding of GBP 2.5 million (ZAR 55.4 million) secured for
Jubilee's two platinum surface processing projects. (“Two Projects”)
- First surface processing project commissioned and fully operational with a processing capacity of 25
000 tonnes per month
- Second surface processing project under construction targeting commissioning end 2016 with a
processing capacity of 55 000 tonnes per month
Chief Executive Leon Coetzer commented:
“Jubilee has experienced a transformational period over the past 6 months which has continued
through the current period. This has been brought about through the sale of its ferrous metals
smelting operation and the acquisition of two platinum surface processing projects targeting an
annualised production capacity in excess of 900 000 tonnes per annum.
“Jubilee has brought the first of its surface processing projects on-line with the second project well
advanced targeting commissioning at the end of 2016. Jubilee was further successful in securing
project funding for the execution and commissioning of both of its platinum surface projects through a
combination of debt and equity funding. The equity component of the funding was minimised to
balance the requirements of the lender while minimising the dilution of our shareholders.”
OVERVIEW
1. THE DISPOSAL
The Company, through a series of announcements, the last of which was published on 9 October
2015, announced the completion of the Disposal to Siyanda, through its newly named nominated
special purpose vehicle Hornbill Investments Proprietary Limited (“SPV”) and receipt of 85% of the
purchase consideration in cash. 10% of the remaining purchase consideration is held in escrow
(approximately GBP 0.390 million (ZAR 8.9 million)), net of closing adjustments including stock and
supplier adjustments. This amount was due from the SPV to Jubilee following the expiry of the first
warranty period on 31 December 2015 (90 days after the closing date of 30 September 2015).
Payment has however not yet been made and Jubilee has taken the necessary steps to expedite
payment. The remaining 5% is due for release 12 months after the closing date, being 30 September
2016.
The rationale for the Disposal was to release cash to support the Group's ongoing investment into
platinum surface processing projects. The release of significant management time spent on the
Middelburg Operations also enabled management to focus on bringing the current projects to
production and to develop the Group's strategy of processing and producing its own platinum group
metals. In executing the Disposal the Group exchanged limited growth medium cash generative assets
with potentially high cash generative platinum assets, offering significant growth.
2 PLATINUM SURFACE PROCESSING PROJECTS
HERNIC
Hernic Ferrochrome Proprietary Limited (“Hernic”) is the world's 4th largest integrated ferrochrome
producer with an estimated 3 million tonnes of platinum containing material at surface while Hernic
continues to add further material to the surface stock.
The Company was selected as the exclusive party to beneficiate the chromite and PGMs contained in
the Hernic Surface Material (“the Project”) and address the project execution methodology as well as
the operational and financial performance targets. The Project is the second of the Company's Two
Projects.
The Hernic Surface Material has been independently fully drilled and assayed for chrome and PGM
content. This has resulted in an independent resource statement of 1.7 million tonnes, of which
approximately 90% of the resource is classified in the measured category under the internationally
recognised SAMREC code. Hernic also has access to secondary surface stocks, which it has internally
identified and could increase the surface stocks to in excess of 3 million tonnes through further drilling
programmes. The total Project is estimated to contain PGM ounces in excess of 224 000 (3PGM + Au)
oz.
The Project will be the largest PGM beneficiation plant of surface chrome tailings in South Africa and is
capable of producing annual revenues of GBP 18.2 million (ZAR 400 million) at an average metal
basket price of USD 906 per (3PGM + Au) oz. The financial and operational risks of the Project are
significantly mitigated since the material is already at surface and requires neither the cost nor the risk
associated with mining.
An extensive prefeasibility study has been concluded on the Project, which included both pilot scale
and full commercial scale trials to confirm the design and operational parameters.
The Project is to be undertaken in four phases over an 11 month period; namely
- Phase one - Bankable Feasibility Study and Engineering Design. Completed.
- Phase two - Construction of the chrome and platinum processing plant (“Processing Plant”).
- Phase three - Commissioning and Ramp up of Processing Plant to design capacity of 55 000 tonnes
per month.
- Phase Four - Stable operation of the Processing Plant.
The Company has targeted a combined processing of platinum containing surface material over the
two projects in excess of 900 000 tonnes per annum.
The size of the ZAR based debt funding for both surface projects equates to GBP 11.5 million (ZAR
255 million) before financing costs. The working capital required to bring the Platinum Surface Projects
into operation and to achieve positive earnings is estimated at GBP 3.4 million (ZAR 75 million).
ASA
Pollux Investment Holdings Proprietary Limited (“Pollux”), a wholly owned subsidiary of Jubilee, holds
the exclusive rights to beneficiate the platinum group metals (“PGMs”) from the platinum-containing
surface material at Dilokong Chrome Mine Proprietary Limited a subsidiary of ASA Metals Proprietary
Limited (“DCM Platinum Project, Processing Agreement”).
As previously announced on 14 March 2016, the Company commenced with the commissioning of a
Platinum Surface Processing Plant (“Processing Plant”) in late February 2016, in-line with the
requirements of the processing agreement entered into between the Company's subsidiary Pollux
Investments Holdings Proprietary Limited (“Pollux”), ASA Metals Proprietary Limited (“ASA Metals”)
and its associated mining and processing operations Dilokong (“Processing Agreement”) there by
qualifying for the incentives offered under the Processing Agreement for the early commissioning of
the Processing Plant. The Processing Plant is located at Dilokong to process and recover metals
from its surface material.
Jubilee has targeted the recovery of chrome and PGMs capable of processing up to 35 000 tonnes of
surface material per month. The Company executed an addendum to the Processing Agreement
(“Addendum”), whereby the Company is incentivised to accelerate the construction and commissioning
of the New Processing Plant by targeting commencement of commissioning of the front end of the
New Processing Plant early 2016. The Addendum significantly enhances and expedites the projected
profitability of the project since both the chrome concentrate and platinum containing concentrate will
now contribute to the overall profitability of the DCM Platinum Project. The Company successfully
concluded commissioning of the Project to qualify for this incentive during February and early March
2016. The Project is the first of the Company's Platinum Projects.
The Company's commissioning and ramp-up reached 85% of design throughput with overall
Processing Plant feed rate reaching an extrapolated 21 000 tonnes per month compared to design of
25 000 tonnes per month for the Processing Plant. The commissioning and ramp-up of operations
suffered minor delays beyond the control of the Company due to events relating to ASA Metals but
these have now been resolved satisfactorily.
The Company also wishes to further clarify the status of ASA Metals and the related Business Rescue
Process (“BR Process”). Jubilee's rights and access to the surface tailings material remains secured.
Jubilee has engaged with the both the appointed Business Practitioner and ASA management as the
Project provides a number of opportunities to expand Jubilee's operational assistance at ASA which
offers value to both ASA and will enhance Jubilee shareholder value in the long term.
3. EXPLORATION
TJATE PLATINUM CORPORATION (Tjate Project)
During December 2015 the Company's subsidiary, Tjate Platinum Corporation Proprietary Limited
(“Tjate”) received formal confirmation from the Department of Mineral Resources (“DMR”) that its
mining right application is progressing. This follows previous communications from the DMR
confirming that the mining right application is in an advance stage and requested Tjate to commence
with securing of an Environmental Rehabilitation Fund in preparation of an award of a mining right.
We remain in regular contact with the DMR to continue requesting status updates.
The Tjate project is located down-dip of Anglo Platinum's Twickenham and Impala Platinum's Marula
mines. Tjate's Merensky and UG2 platinum reefs targeted for initial mining lie between 600 meters
and 1,000 meters below surface. The property's reefs extend to depths greater than 1,600 meters,
offering significant potential to extend or expand production in future.
Tjate Mineral Resource estimate (Samrec Compliant)
Classification Tonnes (million) 3PGE+Au (g/t)* 3PGE+Au (Moz)
Indicated 11,561,359 5.28 1.964
Inferred 120,919,133 5.24 20.365
Total 132,480,493 5.250 22.329
* 3PGE+Au = platinum, palladium, rhodium plus gold
The Tjate project covers 5,140 hectares over three contiguous farms. The area has been
independently appraised to contain a potential net 65 million ounces of platinum group elements
(PGEs) and gold. This represents the resource targeted for future exploratory drilling.
CHAIRMAN’S OVERVIEW
Dear Shareholder,
I am pleased to report that the period under review including post balance sheet activities have gone
very much according to plan. Naturally in an environment hostile to small company development the
work to procure, design and finance our projects has been very difficult and the period has been filled
with euphoria and sometimes dismay whilst achieving the key objectives. I am happy to say that both
our projects ASA and Hernic are on track and we expect to add to the ASA production by producing
PGM's and chrome from Hernic with commercial production by year end. We have placed lead time
orders and our contractor is on site carrying out preparatory works to install the civil works and receive
the various items of equipment and the myriad of peripherals required to build the plant. At ASA, we
have built our fine chrome recovery plant; it is commissioned and is building up to full production
shortly. A number of other opportunities are being explored in and around ASA and should they be
successful will be reported on separately. In essence, the Company is targeted to be in full
production by year end with both its ASA and Hernic facilities.
The disposal of the Middelburg facility and power plant was completed successfully and minimal
residual payments are to be received to close the transaction satisfactorily. The Company awaits the
Tjate mining license and remains confident that its issuance will be forthcoming and that no material
issues exist as to its grant.
The negotiation, procuring and financings of the aforementioned plans have required the majority of
management time during the period under review. Despite this we have been very active in seeking
out opportunities, which will complement our business model and expand our earnings. The Board is
determined not to embark upon any venture or ventures where short-term benefit cannot be seen for
our shareholders. At this stage we firmly believe that our operating space is surface material, small
primary operations in either chrome or PGMs preferably access from an open pit but we do not rule
out small adit operations.
In general, I see much activity and conjecture around the resource sector and for once it is not
confined to the juniors and mid-term players. The majors have been beaten down in value and are
taking significant measures to reduce operating cost and minimise capital expenditure in order to pay
a dividend, which to most is an unlikely event since dividends are being reduced or eliminated to
facilitate debt reduction. Jubilee carries on regardless, operating at its level and seeking opportunities
to grow in the areas where it has demonstrated expertise and tenacity.
The Company's reported loss for the period from continued operations reduced by 62% to a loss of
0.05 (2014: loss of 0.14) pence per share (ZAR 1.11 (2014: ZAR 2.51) cents per share). The
Company's reported loss for the period up to 30 September 2015 (“Closing Date”) from discontinued
operations reduced by 20% to a loss of 0.05 (2014: loss of 0.06) pence per share (ZAR 1.01 (2014:
ZAR 1.12) cents per share).
It is generally the annual report where the Chairman thanks the Executives and Management team
but in the light of the achievement during the period under review and thereafter, I feel I would be
remiss in not acknowledging their efforts in the face of intense competition and hostility towards the
small mining companies. Therefore well done to the team and I look forward to the balance of the
year being spent on the excitement and development of two major cash-producing platinum dump
retreatment facilities. I also hope to be able to report new developments which are aimed solely at
supporting and expanding current operations.
Colin Bird
Non-Executive Chairman
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2015
Consolidated Statement of Comprehensive Income for the six months ended 31 December
2015
Unaudited Restated Audited
unaudited
Group Group Group
6 months 6 months 12 months
to 31 to 31 to 30
December December June
2015 2014 2015
£'000 £'000 £'000
Continued operations
Revenue 1 375 2 49
Cost of sales (1) (17) (26)
Gross profit 1 374 15 23
Operating costs (1 192) (750) (2 844)
Profit/(loss) from operations 182 (765) (2 821)
Other income - 20 9
Operating profit/(loss) 182 (768) (2 812)
Loss on disposal of non-current assets held for (608) - -
sale
Investment income 58 1 65
Finance costs (0) (70) (195)
Loss before taxation (368) (833) (2 941)
Taxation - - -
Loss for the period from continued operations (368) (833) (2 941)
Discontinued operations
Loss from discontinued operations (277) (374) (504)
Loss for the year (645) (1 207) (3 445)
Other comprehensive income
- Loss on translation of foreign subsidiaries – (61) (1 285) (4 081)
continued operations
- Loss on translation of foreign subsidiaries – (3 502) (7) (416)
discontinued operations
Total other comprehensive income for the 6 (3 563) (1 292) (4 497)
months
Total comprehensive loss (4 208) (2 305) (7 942)
Attributable to:
Owners of the parent:
Loss for the year from continued operations (368) (833) (2 907)
Loss for the year from discontinued operations (345) (374) (628)
Loss for the year attributable to owners of the (713) (1 207) (3 535)
parent
Non-controlling interest
Loss for the year from continued operations (0) 193 (34)
Profit for the year from discontinued operations 68 - 124
68 193 90
Total comprehensive loss attributable to:
Owners of the parent (4 248) (2 498) (8 006)
Non-controlling interest 40 193 64
(4 208) (2 305) (7 942)
Weighted average number of shares – continued 688 633 594 156 644 852
operations
Diluted weighted average number of shares – 688 633 599 787 644 852
continued operations
Basic loss per share (pence) - continued (0.05) (0.14) (0.45)
operations
Diluted loss per share (pence) – continued (0.05) (0.14) (0.45)
operations
Weighted average number of shares – 686 246 599 787 644 852
discontinued operations
Diluted weighted average number of shares – 686 246 599 787 644 852
discontinued operations
Basic loss per share (pence) – discontinued (0.05) (0.06) (0.10)
operations
Diluted loss per share (pence) – discontinued (0.05) (0.06) (0.10)
operations
Consolidated Statement of Financial Position as at 31 December 2015
Unaudited Unaudited Audited
Group Group Group
6 months 6 months 12 months
to 31 to 31 to 30 June
December December
2015 2014 2015
£'000 £'000 £'000
Assets
Non-Current Assets
Property, plant and equipment 68 5 662 88
Intangible assets 55 697 64 518 59 069
Deferred tax - 163 -
55 765 70 343 59 157
Current Assets
Inventories 19 - 19
Current tax receivable 16 20 16
Trade and other receivables 1 626 2 151 303
Cash and cash equivalents 6 673 424 361
8 334 2 595 698
Current assets held for sale and assets of - - 7 696
disposal groups
Total Assets 64 099 72 938 67 552
Equity and Liabilities
Share capital and share premium 80 091 75 031 75 897
Merger reserve 15 024 19 641 16 742
Accumulated loss (46 025) (41 635) (43 496)
49 090 53 037 49 143
Non-controlling interest (49) 365
493
49 041 53 530 49 508
Liabilities
Non-Current Liabilities
Deferred tax liability 13 552 15 210 13 739
13 552 15 210 13 739
Current Liabilities
Loans from related parties - 312 -
Other financial liabilities - 646 812
Trade and other payables 1 160 2 978 877
Deferred income 346 262 346
1 506 4 198 2 034
Liabilities of disposal group - - 2 271
Total Liabilities 15 058 19 408 18 044
Total Equity and Liabilities 64 099 72 938 67 552
Consolidated Statement of Changes in Equity as at 31 December 2015
Share Share Merger Share Currency Total Accumulated Total Non- Total
capital premium reserve based translation reserves loss attributable to controlling equity
payment reserve parent of interest
reserve equity
holders
Balance at 30 June
5 243 68 191 23 184 4 918 (7 170) 178
2014 20 934 (40 428) 53 939 54 116
Changes in equity
Loss for the period (3 535) (3 535) 90 (3 445)
Other comprehensive
income for the period (4 471) (4 471) - (4 471) (26) (4 497)
Total comprehensive
income for the period (4 471) (4 471) (3 535) (8 006) 64 (7 942)
Issue of shares net of
costs 2 256 207
2 462 2 462
Warrants issued 749 749 749 749
Share options forfeited (468) (468) 468 -
Acquisition of non-
controlling interest 123 123
Total changes 2 256 207 - (281) (4 471) (4 190) (3 067) (4 795) 188 (4 608)
Balance at 30 June
7 499 68 398 23 184 5 199 (11 641) 16 743 (43 496) 49 143 365 49 508
2015
Changes in equity
Loss for the period (713) (713) 68 (645)
Other comprehensive
income for the period (3 535) (3 535) - (3 535) (28) (3 563)
Total comprehensive
income for the period (3 535) (3 535) (713) (4 248) 40 (4 208)
Issue of shares net of
expenses 1 463 2 731 4 195 4 195
Non-current assets sold 1 817 1 817 (1 817) - (454) (454)
Total changes
1 463 2 731 - - (1 718) (1 718) (2 530) (53) (414) (467)
Balance at 31
December 2015 8 962 71 129 23 184 5 199 (13 359) 15 024 (46 025) 49 090 (49) 49 041
Consolidated Statement of Cash flow for the six months ended 31 December 2015
Unaudited Restated Audited
unaudited
Group Group Group
6 months 6 months 12 months
to 31 to 31 to 30
December December June
2015 2014 2015
£'000 £'000 £'000
Cash flows from operating activities
Loss for the period before taxation – continued operations (368) (1 207) (2 907)
Loss for the period before taxation – discontinued operations net of - - (452)
tax
Loss before taxation (368) (1 207) (3 393)
Adjustments for:
Depreciation and amortisation – continued operations 297 692 696
Depreciation and amortisation – discontinued operations - - 744
Loss on sale of non-current assets held for sale and disposal group 608 - -
(Profit)/loss on Sale of Property, plant and equipment (9)
Interest received (58) (1) (65)
Interest paid 0 70 195
Loss on sale of Property Plant and Equipment 1 - 60
Working capital changes
Increase in receivables - - (19)
Increase in receivables (1 324) (986) (535)
Increase in payables 284 1 255 981
Deferred income - - 84
Cash utilised in operations (560) (185) (1 251)
Interest received 58 1 65
Interest paid (0) (70) (195)
Net cash from operating activities (502) (254) (1 381)
Cash flows from investing activities
Purchase of property, plant and equipment - - (6)
Disposal of property, plant and equipment - 9 (43)
Proceeds from sale of non-current assets held for sale 4 104 - -
Cash removed as part of discontinued operations (118) - (163)
Purchase of intangible assets (124) - (45)
Net cash used in investing activities 3 862 9 (257)
Cash flows from financing activities
Proceeds on share issues net of costs 4 195 186 1 413
Repayment of other financial liabilities (812) (34) (264)
Net cash generated from financing activities 3 383 152 1 149)
Net (decrease)/increase in cash and cash equivalents 6 743 (93) (489)
Cash and cash equivalents at beginning of the year 360 733 733
Effects of foreign exchange on cash and cash equivalents (430) (216) 116
Cash and cash equivalents at the end of the year 6 673 424 361
NOTES TO THE UNAUDITED INTERIM RESULTS
1. Basis of preparation
The Group unaudited interim results for the 6 months ended 31 December 2015 have been prepared using the
accounting policies applied by the company in its 30 June 2015 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 2015 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 2015 contained in
this interim report does not constitute statutory accounts as defined by section 435 of the Companies Act
2006. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The
auditor's report on those accounts was unqualified and did not contain a statement under section 498(2)-(3) of
the Companies Act 2006.
2. Financial review
Earnings per share for the six months ended 31 December 2015 are presented as follows:
Group Group Group
Unaudited Restated Audited
Unaudited
6 months 6 months 12 months
to 31 December to 31 December to 30 June
2015 2014 2015
£'000 £'000 £'000
Basic loss for the year - continuing operations (£) (368) (833) (2 907)
Basic loss for the year - discontinued operations (£) (345) (374) (628)
Total loss for the year (£) (713) (1 207) (3 535)
Weighted average number of shares in issue - 688 633 594 156 644 852
continued operations
Diluted weighted average number of shares in issue – 688 633 599 787 644 852
continued operations
Weighted average number of shares in issue - 686 246 594 156 644 852
discontinued operations
Diluted weighted average number of shares in issue – 686 246 594 156 644 852
discontinued operations
Loss per share - continuing operations (pence) (0.05) (0.14) (0.45)
Loss per share - discontinued operations (pence) (0.05) (0.06) (0.10)
(0.10) (0.20) (0.55)
Diluted loss per share - continuing operations (pence) (0.05) (0.14) (0.45)
Diluted loss per share - discontinued operations (pence) (0.05) (0.06) (0.10)
(0.10) (0.20) (0.55)
Loss per share - continuing operations (ZAR cents) (1.11) (2.51) (8.12)
Loss per share - discontinued operations (ZAR cents) (1.01) (1.12) (1.76)
(2.12) (3.62) (9.88)
Diluted loss per share - continuing operations (ZAR (1.11) (2.51) (8.12)
cents)
Diluted loss per share - discontinued operations (ZAR (1.01) (1.12) (1.76)
cents)
(2.12) (3.62) (9.88)
The Group reported a net asset value of 5.47 (2014:8.4) pence per share (ZAR 98.78 (2014: ZAR 150.25)
cents per share and a net negative tangible asset value per share of 0.74 (2014: 1.72) pence per share (ZAR
13.41 cents (2014: ZAR 29.88) cents per share.
The total shares in issue as at 31 December 2015 were 896 176 million (2014: 637 339 million). Other
comprehensive income comprises foreign currency translation differences which can be reclassified to profit
and loss in future.
Management continued to manage overhead costs for the Group reducing the total overhead component
(excluding depreciation and amortisation) by 5.4% to GBP 1.8 million for the period under review compared to
the comparative reporting period. The table below sets out the major categories of overheads for the period
under review.
6 months to 6 months to
December December
2015 2014
£’000 £’000
Admin, corporate and operational costs 473 182
Consulting and professional fees
489 552
Human resources
412 499
Repairs and Maintenance
298 542
Travelling
23 13
Corporate listing costs
73 63
Loss on exchange differences
27 50
Loss on disposal of fixed asset
1 -
Total 1,797 1,900
3. Discontinued operations
The Middelburg Operations have been operating profitably and attracted much trade interest on both a
separate parts and combined basis. The Board considered approaches from interested buyers, as sale of
these non-core assets, if completed, could be sufficient to finance the Group's tailing development and
progress the Company into its stated mission of a platinum producer. On 16 July 2015 a sale was concluded.
The Middelburg Operations segment was not classified as held-for-sale or as a discontinued operation for the
comparative period ending 31 December 2014. The comparative consolidated statement of comprehensive
income has been restated to show the discontinued operations separately from the continued operations.
Results of discontinued operations:
Group Group Group
unaudited Unaudited Audited
6 months 6 months 12 months
to 31 December to 31 December to 30 June
2015 2014 2015
£'000 £'000 £'000
Revenue 1 199 2 759 5 160
Expenses (1 476) (2 945) (5 612)
Results from operating activities (277) (186) (452)
Income tax - 6 (52)
Results from operating activities net of tax (277) (180) (504)
Non-controlling interest (68) (193) (124)
Profit/(loss) attributable to owners of the parent (344) (374) (628)
Cash flows from (used in) discontinued operations
Cash flows from operating activities (45) 51 (485)
Cash flows from investing activities - - -
Cash flows from financing activities - - 386
Net cash flows from discontinued operations (45) 51 (99)
Opening cash balance on discontinued operations 163 139 262
Closing cash balance on discontinued operations 118 190 163
Effect of disposal on the financial position of the Group
Property, plant and equipment 4 408 5 265 4 772
Taxation 4 4 4
Trade and other receivables 1 121 2 041 1 458
Intangible assets 1 232 1 358 1 299
Cash and cash equivalents 118 190 163
Total assets 6 883 8 858 7 696
Other financial liabilities 267 - 291
Trade and other payables 793 2 715 1 265
Deferred tax 657 748 715
Total liabilities 1 717 3 463 2 271
Net assets and liabilities 5 166 5 395 5 425
Reconciliation of net proceeds from sale of non-current
Assets to net assets sold
Property, plant and equipment (4 408)
Intangible assets (1 232)
Deferred tax assets / liabilities 657
Trade and other receivables (1 121)
Trade and other payables 793
Tax assets / liabilities (4)
Other financial liabilities 267
Cash (118)
Non-controlling interests 454
Total net assets sold (4 712)
Loss on disposal 608
Cash consideration received (4 104)
4. Unaudited results
These interim results have not been reviewed or audited by the Group's auditors.
5. Commitments and contingencies
There are no material contingent assets or liabilities as at 31 December 2015.
6. Dividends
No dividends were declared during the period under review (2014: nil).
7. Board
There were no changes to the board during the period under review.
8. Business segments
In the opinion of the Directors, the continued operations of the Group companies comprise four reporting
segments, being:
the evaluation and development of PGM smelters utilising exclusive commercialisation rights of the ConRoast
smelting process, located in South Africa (“PGM processing”);
the evaluation of the reclamation and processing of sulphide nickel tailings at BHP Billiton's Leinster,
Kambalda and Mount Keith properties in Australia (“Nickel tailings”);
the exploration and development of Platinum Group Elements (“PGEs”) and associated metals (“PGE
development”) in South Africa (“Exploration and development”);
The Parent Company operates a head office based in the United Kingdom which incurred certain
administration and corporate costs (“Other operations”).
The discontinued operations of the Group companies comprise:
Base Metal Smelting in South Africa; and
Electricity Generation in South Africa.
The Group's operations span five countries, South Africa, Australia, Madagascar, Mauritius and the United
Kingdom. There is no difference between the accounting policies applied in the segment reporting and those
applied in the Group financial statements. Mauritius and Madagascar do not meet the qualitative threshold
under IFRS 8, consequently no separate reporting is provided.
Segment report for the 6 months ended 31 December 2015
Exploration Total Total
PGM Nickel Other
and Continuing Discontinued
£’000 processing Tailings
development
operations
operations operations
Total revenues -
(7) - (1,368) (1,375) (2 759)
Cost of sales
- - - 1 1 1 422
Forex losses
- - 3 24 27 -
Loss before taxation 692 7 (58)
(273) (368) (277)
Taxation -
- - - - -
Loss after taxation 692 (58)
7 (273) (368) (277)
Interest received -
(39) - (19) (58) 1
Interest paid -
0 - - - 0
Depreciation and
-
Amortisation 297 - - - 348
Total assets
10,265 28,106 20,997 4,731 64,099 8,859
Total liabilities (663) (6) (17) (821) (1,506) (3,463)
Segment report for the 6 months ended 31 December 2014
South
Africa South
Evaluation Base Africa
PGM Nickel and Other Metal Electricity
£„000 processing 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 36 5 402 399 470 (293) 1 019
Taxation - - - - - (6) (6)
Loss after taxation 36 5 402 399 470 (299) 1 013
Interest received - - - (1) (0) - (1)
Interest paid - - 0 70 0 - 70
Depreciation and
Amortisation - - 344 - 187 160 692
Total assets 13 162 29 923 4 087 16 849 5 309 3 608 72 938
Total liabilities (5) (10) (146) (1 564) (17 411) (272) (19 409)
Segment report for the year ended 30 June 2015
PGM Nickel Exploratio Other Total Total
processing Tailings n and operation Continued Discontinued
£’000 developme s operations operations
nt
Total revenues (4) - - (45) (49) (5 160)
Cost of sales - - - 26 26 (2 167)
Forex losses (0) - 3 21 24 -
Loss before taxation 1 561 19 61 1 300 2 941 452
Taxation - - - - - 52
Loss after taxation 1 561 19 61 1 300 2 941 504
Interest received - - - (65) (65) (1)
Interest paid 0 - - 195 195 0
Depreciation and Amortisation 694 - 2 - 696 744
Total assets 7 450 27 758 24 037 611 59 856 7 696
Total liabilities (14 230) (6) (29) (1 509) (15 773) (2 2271)
9. Shares issued
The Company issued 146,315,973 shares during the period under review which commenced on 1 July
2015 as follows:
Number Issue price – Nature of
Date of shares pence the issue
Opening balance 749,860,507
1 July 2015 26,850,931 2.10 Debt
5 August 2015 1,264,837 4.00 Debt
5 August 2015 5,786,380 2.01 Warrants
5 August 2015 10,550,581 3.23 Warrants
5 August 2015 71,834,833 3.40 Cash
18 August 2015 10,000,000 2.63 Warrants
22 September 2015 2,000,000 3.13 Warrants
5 October 2015 2,706,765 3.40 Debt
14 October 2015 7,142,936 3.16 Warrants
20 October 2015 5,160,000 3.16 Warrants
12 November 2015 1,500,000 3.16 Warrants
11 December 2015 1,518,710 3.06 Acquisition
Closing balance at 31
December 2015 896,176,480
Shares issued after 31
December 2015
29 February 2016 3,750,000 3.16 Warrants
30 March 2016 89,285,714 2.80 Cash
989,212,194
(i)
Debt includes payment of advisory and placement fees in relation to the issue of shares. Share issue
expenses are written off against share premium where permitted.
(ii)
Shareholders are referred to announcements on, or about the dates above for details of equity issues
10. Going concern
The directors have adopted the going-concern basis in preparing the financial statements.
11. Events subsequent to reporting date
Warrants issued but not exercised at 31 December 2015 are set out below:
Number of Subscription
warrants Issue date price (£) Expiry date
1,875,000 09/06/2015 0.016000 09/06/2018
11,340,000 21/02/2014 0.031598 21/02/2017
840,000 23/02/2014 0.031598 23/02/2016
38,097,689 14/07/2015 0.035500 30/12/2016
3,591,742 12/08/2015 0.047500 12/08/2018
55,744,431
Warrants issued but not exercised at the last practicable date are set out below:
Number of Subscription
warrants Issue date price(£) Expiry date
1,875,000 09/06/2015 0.016000 09/06/2018
7,590,000 21/02/2014 0.031598 21/02/2017
840,000 23/02/2014 0.031598 23/02/2016
38,097,689 14/07/2015 0.035500 30/12/2016
3,591,742 12/08/2015 0.047500 12/08/2018
51,994,431
12. 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.
Andrew Sarosi, Technical Director of Jubilee, who holds a B.Sc. Metallurgy and M.Sc. Engineering, the
University of the Witwatersrand and is a member of The Institute of Materials, Minerals and Mining, is a
“qualified person” as defined under the AIM Rules for Companies. The technical parts of this announcement
have been prepared under Andrew Sarosi's supervision and he has approved the release of this
announcement.
Contacts
Jubilee Platinum plc
Colin Bird
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
Brokers
Beaufort Securities Limited
Elliot Hance/Jon Belliss
Tel +44 (0) 20 7382 8416
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
40 Dukes Place
London, EC3A 7NH
Johannesburg
31 March 2016
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited )
Date: 31/03/2016 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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