Wrap Text
Audited results for the year ended 30 June 2016
Jubilee Platinum PLC
Registration number (4459850)
AltX share code: JBL
AIM share code: JLP
ISIN: GB0031852162
("Jubilee" or the "Company” or the “Group”)
Audited results for the year ended 30 June 2016
The directors of AIM traded Jubilee, the Mine-to-Metals company, are pleased to release its audited results for the year ended
30 June 2016. Shareholders are also advised that these results have been audited by the Group auditors Saffery Champness
Their audit report is attached to this announcement as Annexure 1. In compliance with the JSE Limited?s listings requirements
a reconciliation of headline earnings is attached to this announcement as Annexure 2.
The Company confirms that the Annual Report and Accounts for the year ended 30 June 2016 has been posted to
shareholders and is available on the Company's website (www.jubileeplatinum.com). Shareholders are also advised that
the Notice of Annual General Meeting for the year ended 30 June 2016 was posted to Jubilee shareholders on 11 November
2016 and is also available on the Company's website. The Annual General Meeting will be held on Tuesday, 6 December
2016 at 11:00 am UK time at Fladgate LLP, 16 Great Queen Street, London, WC2B 5DG to transact the business as stated in
the notice of Annual General Meeting.
1
Highlights Financial
Middelburg Operations and Power Plant disposal (“Disposal Group”) completed for a gross cash sum of ZAR110.5 million
(£5.3 million).
Operating expenses from continuing operations (excluding share-based payment charges and impairments) are down 16.27%
to £2.4 million (ZAR5.1 million)
The Group reported a loss per share for the year ended 30 June 2016 on continuing operations of 0.38 pence (ZAR cents
8.07), a reduction of 15.6% on last year, and a loss per share on discontinued operations for the three months to 30
September 2016 of 0.03 pence (ZAR cents 0.67) (2015: loss per share on continuing operations of 0.45 pence (ZAR cents
8.12) and a loss per share on discontinued operations for the year ending 30 June 2015 of 0.10 pence ZAR cents 1.76)).
1
Mining and exploration
Jubilee's subsidiary Company, Tjate Platinum Corporation Pty Ltd (“Tjate”), secured an Environmental Rehabilitation
Guarantee (“ERG”) Policy bond for £1.5 million (ZAR27 million) in terms of the Minerals and Petroleum Resources
Development Act (“MPRDA”) of South Africa. Tjate awaits the notarial execution of the mining right for its Tjate Platinum
Project by the Department of Minerals and Resources (“DMR”).
1
Surface operation and processing
Co-Operation Agreement executed, 15 December 2015 between Jubilee and Hernic Ferrochrome Pty Ltd (“Hernic”) to turn to
account its platinum containing tailings (“Platinum Tailings”), stockpiled on its site, by producing chromite and PGM
concentrates (“Hernic Tailings Project”).
Jubilee secured funding for the construction and commissioning of the Hernic Tailings Project.
Construction of the 660 000 tonnes per year process plant for the Hernic Tailings Project commenced February 2015,
reaching 45% completion on schedule and on budget by year-end with 71% completion reached post the period under review
by end Q3 2016
Construction of the Dilokong chromite recovery section (First Phase) of the Dilokong Tailings Treatment Plant (“DTTP”) was
concluded in February 2016, targeting the recovery of chromite from Dilokong Chrome Mine?s (“DCM”) platinum- bearing
chromite tailings (“DCM Platinum Tailings”) (“DCM Tailings Project”). DTTP reached its operational design capacity in mid-
April 2016.
Record production, revenues and earnings from DCM Project chromite achieved by year-end after two months continuous
operations.
DCM Project earnings at year-end reach £0.744 million (ZAR14.2 million) and increasing post the period under review to
£2.291 million (ZAR41.905 million) end Q3 2016
Attributable earnings to Jubilee from the DCM Project at year-end reach £0.456 million (ZAR8.7 million) and increasing post
the period under review to £1.344 million (ZAR24.597) end Q3 2016
1= for income statement purposes currency conversions are at the average £: ZAR rates for the period under review and for
balance sheet purposes currency conversions are at the closing rate as at the period end. All other currency conversions are
at rates as at the time announced
Overview
In the period under review, the Company achieved significant milestones in the implementation of its Mine-to-Metals strategy
to form a fully-integrated platinum mining Company.
The Company commissioned the First Phase of its DCM Tailings Project, reaching stable production in April 2016 while
simultaneously commencing with the construction of the Hernic Tailings Project, targeting a combined processing in excess
of 900 000 tonnes per annum of Platinum Tailings over the two Tailings Projects. The Company executed the cash sale of its
non-core Ferro-alloy smelting operations (“Middelburg Operations”) for a gross value of approximately £5.3 million (ZAR110.5
million), and redirected the funds towards the acquisition and commissioning of its platinum and chrome tailings projects.
The First Phase of the DCM Tailings Project targeted the production of a chromite concentrate while concurrently the
Company concluded a detailed platinum processing option study. The option study was concluded post the period under
review. The option study indicated the optimal strategy should include pre-concentration at DCM of the platinum in the chrome
tailings and contracting with an existing platinum producer to upgrade further the platinum pre-concentrate in order to produce
a saleable platinum concentrate. The Company engaged with a targeted toll processor to implement this preferred platinum
processing strategy at DCM. Post year-end the DCM Tailings Project has continued to exceed the design specifications,
reaching a production at the end of Q3 of the 2016 calendar year of 43 747 tonnes of saleable chromite concentrate,
generating total revenues of £3.1 million (ZAR56.5 million).
The Company successfully completed a project funding agreement (the “Funding”) for the execution and commissioning of its
two platinum Tailings Projects.
The Funding comprised the combination of Senior Secured Debt (to a maximum of USD10 million), Unsecured Debt (to a
maximum of USD5.3 million) and an equity placing (£2.3 million). This Funding package enabled Jubilee to execute
simultaneously the two platinum Tailings Projects, while still pursuing the acquisition or securing of further surface or shallow
platinum-bearing opportunities. These two Tailings Projects have grown the Company?s access to, in excess of 4 million
tonnes, of platinum-containing surface material.
The Hernic Tailings Project reached 45% completion at year-end with the Project expenditure equalling £4.5 million
(ZAR 88.5 million). Post year-end and at the end of Q3 of the 2016 calendar year the Project had reached a completion of
71% with the un-audited Project expenditure reaching £7.5 million (ZAR137.6 million).
The Company's Tjate project progressed with the implementation of a Rehabilitation Guarantee Policy bond for £1.5 million
(ZAR27 million) in terms of the Minerals and Petroleum Resources Development Act (“MPRDA”) of South Africa. Tjate
continues to await the execution of the mining right by the Department of Minerals and Resources (“DMR”).
Jubilee executed a binding cash sale agreement, in aggregate of approximately £5.3 million (ZAR110.5 million) gross for its
Middelburg operational assets, the disposal of which was approved by shareholders at a general meeting on 7 August 2015.
During the period under review the Company successfully managed its expenditure by selling its non-core assets and
channelling the proceeds into the more profitable platinum Tailings Projects, thereby enabling the Company to grow its near-
term earnings potential. The Company continues to actively pursue further projects consistent with our stated mission to grow
the Company's processing capacity of at- or near-surface platinum bearing material.
The Company looks forward to bringing into operation its two platinum Tailings Projects within the current financial period
while continuing to grow its revenue base and earnings projections and advancing its project portfolio.
Conditions in the global markets remained challenging as reflected in the platinum group metal (“PGM”) prices. However,
Jubilee's Platinum Tailings Projects remain robust at these metal prices; having the benefit of not being exposed to mining
cost or associated mining risk.
The Company successfully responded to the current challenges and risks inherent to an exploration and production business
and will continue to formulate preventative measures.
Chairman’s statement
Dear Shareholder,
The theme of last year's report was that the resource industry in general was experiencing very difficult times with commodity
prices and difficulty in accessing finance for survival, let alone growth. Towards the end of my report I stated that the Jubilee
management team would not be intimidated by these difficult times and would continue with its Mine-to-Metals strategy
despite the conditions.
I am very pleased to report that the management team did respond well to their challenges and Jubilee has made significant
steps towards overall profitability and establishing a prominent emerging position in the South African platinum industry.
Significantly we secured the Hernic project in December 2015 and completed building the Dilokong chromite recovery section
in February 2016. The completion of these two projects will result in the Company having a process capacity capable of
producing some 33 000 oz of platinum per annum with considerable contribution from chrome in the case of Dilokong.
We were successful in accessing finance for these two projects with the combination of debt and equity; this financing being
achieved when the industry was still experiencing great difficult in accessing finance of any kind.
We continue, proactively and reactively, to search for new business additions to our model and feel confident that we will
make gains in this area. We also recognise that a chrome/platinum dump mission in a finite environment can be self-limiting
and therefore have expanded our investigations into other metals and other areas. We have recognised and it has been
recognised within our industry, that the Company possesses considerable internal technical strength for dump re-treatment
projects and outside the Company, has created a good strategic network to identify, investigate and financially interrogate
what would be future dump re treatment projects. We intend to grow on these strengths for the balance of this year and into
2017.
We are somewhat disappointed that platinum has been so resilient at its lower levels and the much expected breakout in a
positive way did not occur. I have been cynical over the link between gold and platinum and have often stated that the
coupling has little sense since platinum is a commodity and should therefore respond to supply and demand fundamentals.
More new cars have been sold within the developed and emerging world and yet the platinum price has continued to remain at
around a USD1 000 per oz mark with moderate increases and decreases. Unlike other metals, platinum produced is sold
without evidence of any significant inventories being built up which can distort the price or lead to price manipulation. The
board sees a healthy market for platinum with expectation of higher prices but is confident of making good returns on
investment at current platinum price levels. Our chrome operation at Dilokong has benefited considerably by increased prices
for chrome and we are encouraged by our effort and opportunities in the local chrome arena.
On a more general note, the resource sector appears to be ready to move back to being a favoured sector as opposed to the
“Cinderella” of stock markets. My experience has been that such changing sentiment can be rapid and management should
not be caught asleep when they sense the change. I believe that significant opportunities can avail to Jubilee within its stated
mission and an extension of that mission. Financing potential has definitely improved and now there exist considerable
financial interest for new projects held by a strong management team with a track record.
The Group reported a loss per share for the year ended 30 June 2016 on continuing operations of 0.38 pence (ZAR cents
8.07) a reduction of 15.6% on last year and a loss per share on discontinued operations for the three months to 30 September
2016 of 0.03 pence (ZAR cents 0.67) (2015: loss per share on continuing operations of 0.45 pence (ZAR cents 8.12) and a
loss per share on discontinued operations for the year ending 30 June 2015 of 0.10 pence (ZAR cents 1.76)).
Finally I would like to thank my fellow directors and particularly the executive directors who have performed extremely well in
securing the two assets and positioning the company within South Africa. I would also like to thank management and external
consultants who have integrated as individuals and companies into our business plan. I look forward to an exciting 2017 and
expect to be announcing more acquisitions and accelerated growth, all designed to enhance shareholder value.
Colin Bird
Non-Executive Chairman
11 November 2016
Financial statements for the year ended 30 June 2016
Consolidated statement of comprehensive income for the year ended 30 June 2016
Figures in Sterling 2016 2015
Continuing operations 1 473 921 48 899
Revenue Cost of sales (608 309) (25 529)
Gross profit 865 612 23 370
Other income 10 725 8 586
Operating expenses (4 690 862) (2 843 607)
Operating loss (3 814 525) (2 811 651)
Investment revenue 144 077 65 283
Gain on non-current assets held for sale or
disposal groups 84 680 –
Finance costs (13 418) (194 758)
Loss before taxation (3 599 186) (2 941 126)
Taxation 201 901 –
Loss from continuing operations (3 397 285) (2 941 126)
Discontinued operations
Loss from discontinued operations (276 660) (504 196)
Loss for the year (3 673 945) (3 445 322)
Other comprehensive income:
Exchange differences on translating foreign operations 2 653 926 (4 497 075)
Total comprehensive loss (1 020 019) (7 942 397)
Attributable to:
Owners of the parent:
Loss for the year from continuing operations (3 412 174) (2 906 928)
Loss for the year from discontinuing operations (283 749) (628 442)
Loss for the year attributable to owners of the parent (3 695 923) (3 535 370)
Non-controlling interest:
Profit/(loss) for the year from continuing operations 14 889 (34 198)
Profit for the year from discontinuing operations 7 089 124 246
Profit for the year attributable to non-controlling interest 21 978 90 048
Total comprehensive loss attributable to:
Owners of the parent (1 009 610) (8 006 476)
Non-controlling interest (10 409) 64 079
(1 020 019) (7 942 397)
Basic and diluted loss per share (pence) – continuing
operations (0.38) (0.45)
Basic and diluted loss per share (pence) – discontinued
operations (0.03) (0.10)
Loss per share (0.41) (0.55)
Consolidated statement of financial position as at 30 June 2016
Figures in Sterling 2016 2015
Assets
Non-current assets
Property, plant and equipment 4 977 784 88 064
Intangible assets 61 838 764 59 069 353
Deferred tax 218 345 –
67 034 893 59 157 417
Current assets
Inventories – 19 019
Other financial assets 555 159 –
Current tax receivable 15 870 15 900
Trade and other receivables 1 074 509 302 504
Cash and cash equivalents 4 414 908 360 829
6 060 446 698 252
Non-current assets held for sale and assets
of disposal groups – 7 696 389
Total assets 73 095 339 67 552 058
Equity and liabilities
Equity attributable to equity holders of parent
Share capital 82 515 169 75 896 582
Reserves 17 997 713 16 742 258
Accumulated loss (44 300 203) (43 495 910)
56 212 679 49 142 930
Non-controlling interest (42 606) 365 071
56 170 073 49 508 001
Liabilities
Non-current liabilities
Deferred tax 14 677 152 13 738 729
Current liabilities
Other financial liabilities – 811 890
Trade and other payables 2 248 114 876 617
Deferred income – 346 041
2 248 114 2 034 548
Liabilities of disposal groups – 2 270 780
Total liabilities 16 925 266 18 044 057
Total equity and liabilities 73 095 339 67 552 058
The financial statements were authorised for issue and approved by the Board on 11 November 2015 and
signed on its behalf by:
Leon Coetzer
Chief Executive Officer
Company number 04459850
Consolidated statement of changes in equity for the year ended 30 June 2016
Foreign Total
currency Share-based attributable to Non-
Share translation Merger Payment Total Accumulated equity holders controlling
Figures in Sterling capital reserve reserve reserve reserves loss of the Group interest Tot
Balance at 1 July
2014 73 434 453 (7 169 662) 23 184 000 4 918 210 20 932 548 (40 428 540) 53 938 461 177 179 54
Changes in equity
Total comprehensive
income for the year
– (4 471 106) – – (4 471 106) (3 535 370) (8 006 476) 64 079 (7
Issue of share capital
net of costs 2 462 129 – – – – – 2 462 129 – 2
Warrants issued – – – 748 816 748 816 – 748 816 –
Share options forfeited
– – – (468 000) (468 000) 468 000 – –
Changes in ownership
interest control not lost
– – – – – – – 123 813
Total changes 2 462 129 (4 471 106) – 280 816 (4 190 290) (3 067 370) (4 795 531) 187 892 (4
Balance at 1 July
2015 75 896 582 (11 640 768) 23 184 000 5 199 026 16 742 258 (43 495 910) 49 142 930 365 071 49
Changes in equity
Total comprehensive
income for the year
– 2 686 313 – – 2 686 313 (3 695 923) (1 009 616) (10 409) (1
Issue of share capital
net of costs 6 618 587 – – – – – 6 618 587 – 6
Disposal of subsidiaries
– 1 820 818 – – 1 820 818 (1 820 818) – (397 268) (
Warrants issued – – – 304 925 304 925 – 304 925 –
Options issued under
new scheme – – – 1 155 847 1 155 847 – 1 155 847 – 1
Option cancelled under
old scheme – – – (4 450 210) (4 450 210) 4 450 210 – –
Warrants exercised – – – (258 306) (258 306) 258 306 – –
Warrants lapsed – – – (3 932) (3 932) 3 932 – –
Total changes 6 618 587 4 507 131 – (3 251 676) 1 255 455 (804 243) 7 069 749 (407 677) 6
Balance at 30 June
2016 82 515 169 (7 133 637) 23 184 000 1 947 350 17 997 713 (44 300 203) 56 212 679 (42 606) 56
Consolidated statement of cash flow for the year ended 30 June 2016
Figures in Sterling 2016 2015
Cash flows from operating activities
Cash used in operations (688 883) (1 251 279)
144 077 65 283
Interest income Finance costs
(13 418) (194 758)
Net cash from operating activities (558 224) (1 380 754)
Cash flows from investing activities
Purchase of property, plant and equipment (4 548 858) (5 904)
Sale of property, plant and equipment – (42 547)
Purchase of other intangible assets (4 239) (45 334)
Net cash flow from disposal of discontinued operations 3 986 126 –
Increase in other financial assets (555 159) –
Cash removed as part of disposal group – (163 002)
Net cash from investing activities (1 122 130) (256 787)
Cash flows from financing activities
Net proceeds on share issues 5 865 560 1 413 280
Repayment of other financial liabilities (102 490) (264 323)
Net cash from financing activities 5 763 070 1 148 957
Total cash movement for the year 4 082 716 (488 584)
Total cash at the beginning of the year 360 829 733 399
Effect of exchange rate movement on cash balances (28 637) 116 014
Total cash at end of the year 4 414 908 360 829
NOTES TO THE AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2016
1. Basis of preparation
The Group and Company results for the year ended 30 June 2016 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 and the Companies Act 2006 (UK). They are presented in
Pound Sterling.
This financial report does not include all notes of the type normally included in an annual financial report.
Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2016 and
any public announcements by Jubilee Platinum Plc after that date to the date of publication of these results.
All monetary information is presented in the functional 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
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 did not contain a statement under section 498(2)-(3) of the Companies Act
2006.
2. Financial review
Earnings per share for the year ended 30 June 2016 were as follows:
Basic loss for the year – continuing operations (£
'000) (3 412) (2 907)
Basic loss for the year – discontinuing operations (£'000) (283) (628)
((£'000)
Total loss for the year (3 695) (3 535)
Weighted average number of shares in issue („000) 906 241 644 852
Diluted weighted average number of shares in issue („000) 906 241 644 852
Weighted average number of shares in issue discontinued operations („000) 906 241 644 852
Diluted weighted average number of shares in issue discontinued operations („000) 906 241 644 852
Loss per share – continuing operations (pence) (0.38) (0.45)
Loss per share – discontinuing operations (pence) (0.03) (0.10)
(0.41) (0.55)
Diluted loss per share – continuing operations (pence) (0.38) (0.45)
Diluted loss per share – discontinuing operations (pence) (0.03) (0.10)
(0.41) (0.55)
Loss per share – continuing operations (ZAR cents) (8.07) (8.12)
Loss per share – discontinuing operations (ZAR cents) (0.67) (1.76)
(8.74) (9.88)
Diluted loss per share – continuing operations (ZAR cents) (8.07) (8.12)
Diluted loss per share – discontinuing operations (ZAR cents) (0.67) (1.76)
(8.74) (9.88)
The Group reported a net asset value of 5.65 pence (112.38 ZAR cents) (2015: 6.60 pence (127.65 ZAR cents) per
ordinary share. The total shares in issue as at 30 June 2016 were 991 087 994 (2015: 749 860 507).
3. Dividends
The Board did not declare any dividends for the period under review. (2015: Nil)
4. Auditor’s review opinion
These results have been audited by the Group's auditors, Saffery Champness and their report is available for
inspection at the Company's registered office. A copy of the report is also attached to the back of this
announcement as annexure 1.
5. Board
There were no changes to the board during the period under review and up to the date of this announcement.
6. Share capital
Authorised 30 June 30 June
2016 2015
The share capital of the Company is divided into an unlimited
number of ordinary shares of 1 pence each.
Issued
Ordinary shares of 1 pence each (£) 9 910 872 7 498 605
Share premium (£) 72 604 297 68 397 978
Total issued capital (£) 82 515 169 75 896 582
Number of shares in issue
991 087 194 749 860 507
Ordinary shares
The Company issued the following shares during the period and up to the date of this annual report:
Number Issue price Purpose
Date Pence of the issue
Of
Shares
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 3.16 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
29 February 2016 3 750 000 3.16 Warrants
30 March 2016 89 285 714 2.80 Cash
27 May 2016 1 875 000 1.60 Warrants
Closing balance at year-end and at the date of this announcement 991 087 194
The Company did not issue any shares after year-end to the date of this report other than those disclosed in note 10.2 below.
At year-end and at the last practicable date the Company had the following warrants outstanding:
Subscription End of Spot at
price exercise Volatility issue date
Number of warrants Issue date £s period % pence
12 750 000 2014-02-21 0.03160 2017-02-21 69.01 1.975
10 550 581 2014-03-03 0.00323 2017-02-25 67.67 1.800
38 097 689 2013-12-23 0.03355 2016-12-30 65.02 3.150
3 591 742 2015-08-12 0.04750 2018-08-12 77.49 4.48
18 244 825 2016-03-23 0.04725 2019-03-23 83.81 2.94
83 234 837
The fair value of these warrants was determined using the Black-Scholes Valuation Model with the inputs
illustrated in the table above. A risk free rate of 0.5% were applied in the valuation. The company recognised a
share-based payment charge against a share-based payment reserve the amount of £304 925 (2015: £748 816)
in accordance with section 610 (2) of the United Kingdom Companies Act 2006. This charge relates to equity
placings successfully completed.
7. Business segments
In the opinion of the Directors, the continuing operations of the Group companies comprise four reporting
segments (of which the descriptions have been changed to better reflect the Group?s strategy of becoming a
platinum producer post the Disposal) being:
• the beneficiation of Platinum Group Elements (“PGEs”) and associated metals and development of PGM
smelters utilising exclusive commercialisation rights of the ConRoast smelting process, located in South
Africa (“PGE beneficiation 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 exploration and mining of Platinum Group Elements (“PGEs”) and associated metals (Exploration and
mining);
• the parent company operates a head office based in the United Kingdom, which incurred certain
administration and corporate costs.
The results of the discontinued operations comprise two segments which have been combined into one segment
referred to as Disposal Group being:
• 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 year ended 30 June 2016
PGE
beneficiation Total
and Exploration and Other continuing Disposal
£s development Nickel tailings mining operations operations group
Total revenues (1 127 880) – – (346 041) (1 473 921) (1 420 145)
Cost of sales 589 290 – – 19 019 608 309 682 365
Forex losses (7 658) – – 77 571 69 913 –
Loss before taxation 787 554 10 711 16 174 2 784 748 3 599 187 276 660
Taxation – – – – – –
Loss after taxation 787 554 10 711 16 174 2 784 748 3 599 187 276 660
Interest received (120 301) – (75) (23 701) (144 077) (193)
Interest paid 5 – – 13 413 13 417 –
Depreciation and
amortisation 597 613 – 838 – 598 451 –
Total assets 14 004 569 31 666 391 23 626 458 3 797 622 73 095 339 –
Total liabilities (2 904 304) (9 656 474) (3 885 972) (478 516) (16 925 267) –
Segment report for the year ended 30 June 2015
PGE
beneficiation Total
and Exploration and Other continuing Disposal
development mining operations operations
£s Nickel tailings group
Total revenues (3 885) – – (45 014) (48 899) (5 160 105)
Cost of sales – – – 25 529 (25 529) (2 167 422)
Forex losses (31) – 3 462 19 485 23 370 –
Loss before taxation 1 560 914 18 862 61 103 1 300 247 2 941 126 452 002
Taxation – – – – – 52 194
Loss after taxation 1 560 914 18 862 61 103 1 300 247 2 941 126 504 196
Interest received – – – (65 283) (65 283) (1 017)
Interest paid 4 – – 194 754 194 758 455
Depreciation and
amortisation 694 487 – 1 949 – 696 436 744 361
Total assets 7 449 691 27 757 917 24 036 807 611 255 59 855 670 7 696 389
Total liabilities (1 662 785) (8 597 474) (4 003 719) (1 509 300) (15 773 278) (2 270 780)
8. Going concern
The Directors have adopted the going-concern basis in preparing the financial statements.
The Company has continued to progress with the implementation of its Mine-to-Metals platinum strategy, more
specifically and with reference to the above:
8.1. On 22 March 2016, the Company successfully completed the project funding for the execution and
commissioning of both its surface platinum processing projects. The funding comprises a combination of
senior secured debt and unsecured debt. The senior secured debt is up to a maximum of USD10
million (ZAR153 million), with an initial advance of USD3 million (ZAR49.5 million) and a possible further
advance of USD2 million (ZAR30.6 million) subject to and upon the terms and conditions contained in
the agreement. The Borrower has agreed to accept and utilise the initial advance on the terms and
conditions contained in the agreement, and acknowledges its right to call for a further advance as
provided for in the agreement, in order to fund in aggregate its obligations to execute the two projects.
The unsecured debt is to a maximum of USD5 million (ZAR76.5 million). The Company also completed an
equity placing of £2.5 million (ZAR55.2 million) which was completed during March 2016 as announced
on 22 March 2016.
8.2 On 30 September 2015, Jubilee completed the disposal of 100% of the issued shares in Jubilee
Smelting and Refining Pty Ltd (“JSR”), and 70% of the issued shares in Power Alt Pty Ltd (“PA”) to
Siyanda Resources Pty Ltd (“Siyanda”), through its nominated special purpose vehicle Hornbill Investments Pty
Ltd (“SPV”) for a consideration of, in aggregate, ZAR110.5 million (approximately £5.3 million) (”the
Disposal”). The Company received of 85% of the purchase consideration in cash. Ten per cent of the
remaining 15% of the purchase consideration is held in escrow in an amount approximating to £0.390 million
(ZAR8.9 million), net of closing adjustments including stock and supplier adjustments.
8.3 During the period under review the Company also successfully completed a number of equity placings
for cash, raising in aggregate £4.5 million, net of issue expenses.
The Directors are of the opinion that the Group and Company are funded sufficiently to enable it to continue with
its operations as a going concern.
9. Discontinued operations – disposal group held for sale
Year to 30 Year to 30
June 2016 June 2015
£s £s
Revenue 1 420 145 5 160 105
Cost of sales (682 365) (2 167 422)
Gross profit 737 780 2 992 683
Depreciation, amortisation and impairments – (744 361)
Finance costs – (455)
Interest received 193 1 017
Other operating expenses (1 014 633) (2 700 886)
Net loss before tax (276 660) (452 002)
Tax – (52 194)
Net loss after tax (276 660) (504 196)
Non-controlling interest (7 089) (124 246)
(283 749) (628 442)
The assets and liabilities of the disposal group are set out below:
Assets
Property, plant and equipment – 4 772 406
Taxation – 4 015
Trade and other receivables – 1 457 592
Intangible assets – 1 299 374
Cash and cash equivalents – 163 002
– 7 696 389
Liabilities
Other financial liabilities – 290 811
Trade and other payables – 1 264 820
Deferred tax – 715 149
– 2 270 780
Equity
Retained earnings and foreign currency translation reserve – (5 002 008)
Minority interest – (423 601)
– (5 425 609)
On 30 September 2015, Jubilee completed the disposal of 100% of the issued shares in Jubilee Smelting and
Refining Pty Ltd (“JSR”), and 70% of the issued shares in Power Alt Pty Ltd (“PA”) to Siyanda Resources Pty Ltd
(“Siyanda”), through its nominated special purpose vehicle Hornbill Investments Pty Ltd (“SPV”) for a gross
consideration of, in aggregate, ZAR110.5 million (approximately £5.3 million) (”the Disposal”). The Company
received of 85% of the net purchase consideration in cash (“First Payment”). Ten per cent of the remaining 15%
of the purchase consideration is held in escrow in an amount approximating to £0.68 million (ZAR13 million), net
of closing adjustments including stock and supplier adjustments.The board considered it prudent to impair the
balance of the purchase consideration to the income statement as it is the subject of an unsubstantiated warranty
claim against the Company which is rejected by the Company and all necessary steps are taken to ensure
release of the amount due. Pursuant to the disposal, loans to subsidiaries in an amount of £6 179 421 had
been impaired.
Year to 30 June Year to 30 June
2016 2015
£s £s
Cash flows from discontinued operations
Cash flows from operating activities (45 061) (484 868)
Cash flows from financing activities – 385 971
Net cash flows from discontinued operations (45 061) (98 897)
Opening cash balance on discontinued operations 163 003 261 900
Closing cash balance on discontinued operations 117 942 163 003
Consideration received
Cash 4 104 068 –
Asset-deferred payments 749 241 –
4 853 309 –
Net cash flow on acquisition
Cash consideration received 4 104 068 –
Cash sold (117 942)
3 986 126
Profit/(loss) on disposal
Proceeds received 4 853 310 4 853 310
Net asset value/Investments (4 768 629) (9 139 476)
84 680 (4 286 166)
10. Events post balance sheet
10.1 Australia – Nickel in tailings surface project
Subsequent to the period-end, Braemore Nickel (Pty) Ltd (“Braemore”) has received from BHP Billion (Pty) Ltd
(“BHP”) a notice of termination of the Tailings Supply Agreement relating to the Nickel containing material in
Western Australia. Braemore rejects the termination notice since no factual or legal basis exists for such
termination. Braemore has informed BHP that it intends to initiate legal proceeding to have the termination set
aside. Management assesses that this has no impact on the carrying value of the Nickel Tailing Project intangible
asset (per note 8) at the date of this report.
The Company's Australian subsidiary, Braemore Nickel (Pty) Ltd continued with ongoing internal review and
optimisation of the process flowsheet for the recovery of Nickel from the Leinster project tailings (“Leinster
Tailings”), in particular the Company's recent flowsheet optimisation in the liberation of minerals locked in tailings.
This approach is currently being implemented in the recovery of PGM in associated sulphides from the South
African tailings projects, specifically targeting the beneficiation of sulphite minerals which allows for significant
enhancement in concentrate grade profiles which has improved the projected target performance and profitability
of these tailings.
10.2 Warrants issued and dealings in securities
The Company has received notification on 10 November 2016 from a warrant holder to exercise 25,000,000
existing warrants in the issued share capital of Jubilee at a price of 3.55p (ZAR63.90c) per warrant share. The
exercise of warrant shares amounts, in aggregate, to a cash value of GBP887, 500 (ZAR16 million). The warrant
shares are expected to be admitted to AIM on 17 November 2016.
The Company also issued the final 1,848,167 new Jubilee ordinary shares (“Shares”) at an average issue price of
2.44 pence per share to Dr. Matthews Phosa, who has elected to receive Shares in lieu of 100% of his director?s
remuneration accrued to him for the period 1 October 2014 to 31 July 2016. This is the final share issuance to Dr.
Phosa and concludes the program of shares in lieu of director remuneration for Dr Phosa. The shares are issued
under the authority of ordinary resolution number 12 and special resolution number 2 passed at the Company?s
Annual General Meeting held on 27 November 2013. The issue will bring Dr. Phosas interest in the Company to
2,834,884 Shares, being 0.3% of the issued capital of the Company. The shares are expected to be admitted to
AIM on 17 November 2016.
Contacts
Jubilee Platinum plc Colin Bird/Leon Coetzer
Tel +44 (0) 20 7584 2155 / Tel +27 (0) 11 465 1913
Andrew Sarosi
Tel +44 (0) 1752 221937
Nominated Adviser
SPARK Advisory Partners Limited
Sean Wyndham-Quin/Mark Brady
Tel: +44 (0)203 368 3555
Brokers
Beaufort Securities Limited
Jon Belliss
Tel: +44 (0) 20 7382 8300
JSE Sponsor
Sasfin Capital, a division of Sasfin Bank Limited
Sharon Owens
Tel +27 (0) 11 809 7500
Annexure 1
Independent auditors’ report to the members of Jubilee Platinum Plc
We have audited the Company's financial statements of Jubilee Platinum Plc for the year ended 30 June 2016,
which comprise the Consolidated Statements of Comprehensive Income, Consolidated Statements of Financial
Position, Consolidated Statements of Cash Flows, Consolidated Statements of Changes in Equity and Notes to
the Consolidated Financial Statements set out on pages 25 to 67. The financial reporting framework that has
been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as
adopted by the European Union and, as regards the parent company financial statements, as applied in
accordance with the provisions of the Companies Act 2006.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the
Companies Act 2006. Our audit work has been undertaken so that we might state to the company?s members
those matters we are required to state to them in an auditors report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the
company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of Directors and auditors
As explained more fully in the Directors Responsibilities Statement, the directors are responsible for the
preparation of the financial statements and for being satisfied that they give a true and fair view. Our
responsibility is to audit and express an opinion on the financial statements in accordance with applicable law
and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the
Auditing Practices Board's Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to
give reasonable assurance that the financial statements are free from material misstatement, whether caused by
fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the Group?s
and the parent company's circumstances and have been consistently applied and adequately disclosed; the
reasonableness of significant accounting estimates made by the Directors; and the overall presentation of the
financial statements. In addition, we read all the financial and non-financial information in the Annual Report to
identify material inconsistencies with the audited financial statements and to identify any information that is
apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the
course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies
we consider the implications for our report.
Opinion on financial statements
In our opinion:
the financial statements give a true and fair view of the state of affairs of the Group and the parent company as at
30 June 2016 and of the Group's loss for the year then ended; and
the Group financial statements have been properly prepared in accordance with IFRSs as adopted by the
European Union; and
the parent company financial statements have been properly prepared in accordance with IFRSs as adopted by
the European Union and as applied in accordance with the provisions of the Companies Act 2006; and
the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Strategic Report and the Directors? Report for the financial year for
which the financial statements are prepared is consistent with the financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report
to you if, in our opinion:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have
not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of Directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Andrew Gaskell
Senior Statutory Auditor
For and on behalf of
Saffery Champness
Chartered Accountants
Statutory Auditors
71 Queen Victoria Street
London
EC4V 4BE
11 November 2016
Annexure 2 - Headline earnings per share
Accounting policy
Headline earnings per share (HEPS) is calculated using the weighted average number of shares in issue during
the period under review and is based on earnings attributable to ordinary shareholders, after excluding those
items as required by Circular 2/2013 issued by the South African Institute of Chartered Accountants (SAICA).
30 June 2016 30 June 2015
Headline loss per share comprises the following:
Continuing operations
Loss from continuing operations for the period attributable to ordinary shareholders (3 412) 2 910
Impairment of other financial assets 856 50
Loss on sale of property plant and equipment 1 (60)
Loss on exchange differences 81 21
Headline loss from continuing operations (2 474) (2 897)
Weighted average number of shares in issue 906 241 644 851
Diluted weighted average number of shares in issue 906 241 644 851
Headline loss per share from continuing operations (pence) (0.27) (0.45)
Diluted headline loss per share from continuing operations (pence) (0.27) (0.45)
Headline loss per share from continuing operations (ZAR cents) (5.85) (8.09)
Diluted headline loss per share from continuing operations (ZAR cents) (5.85) (8.09)
Discontinued operations
Loss from discontinued operations for the period attributable to ordinary shareholders (283) (628)
Impairment of other financial liabilities – 50
Headline loss from discontinued operations (283) (579)
Weighted average number of shares in issue 906 241 644 851
Diluted weighted average number of shares in issue 906 241 644 851
Headline loss per share from discontinued operations (pence) (0.03) (0.09)
Diluted headline loss per share from discontinued operations (pence) (0.03) (0.09)
Headline loss per share from discontinued operations (ZAR cents) (0.67) (1.62)
Diluted headline loss per share from discontinued operations (ZAR cents) (0.67) (1.62)
Average conversion rate used for the period under review £:ZAR 0.04667 0.0555
United Kingdom
14 November 2016
Sponsor: Sasfin Capital (a division of Sasfin Bank Limited)
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