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JUBILEE PLATINUM PLC - Notice of AGM and audited financial results

Release Date: 10/11/2017 09:00
Code(s): JBL     PDF:  
Wrap Text
Notice of AGM and audited financial results

Jubilee Platinum PLC
Registration number (4459850)
AltX share code: JBL
AIM share code: JLP
ISIN: GB0031852162
 ("Jubilee" or the "Company”)


Notice of Annual General Meeting

Audited results for the year ended 30 June 2017

The directors of AIM traded Jubilee, the Mine-to-Metals company, are pleased to release its audited results for the year ended 30 June 2017.

Notice of Annual General Meeting

The Company also hereby gives notice of the Company’s 2017 Annual General Meeting, which will be held on 4 December 2017 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. The Group’s Annual Report for the year
ended 30 June 2017 has been posted to the website, www.jubileeplatinum.com, with the notice of the Company’s 2017 Annual General Meeting. Shareholders are
advised that the Notice of Annual General Meeting, including a Form of Proxy, for the year ended 30 June 2017 has been posted to Jubilee shareholders today, 10
November 2017.



Highlights for period under review

Financial Highlights

Group revenue up to GBP 9.81 million (ZAR 169.59 million)(1) ((2016: GBP 1.47 million (ZAR 25.41 million))

Group loss for the year from continuing operations, excluding once off non-cash items (2), decreased by 61.87 % to GBP 2.10 million (ZAR 36.42 million) ((2016: loss
of GBP 3.41 million (ZAR 58.97 million))

Group loss per share from operations, excluding once off non-cash items(2) is 0.25 pence (ZAR 4.27 cents) ((2016: 0.38 pence) (2016: ZAR 8.07 cents))
Operating expenses from continuing operations down 26.69 % to GBP 3.44 million (ZAR 59.46 million) ((2016: GBP 4.69 million) (ZAR 81.06 million))

(1)= for income statement purposes conversions are at the average £: ZAR rate for the period under review and for balance sheet purposes conversions are at the
closing rate as at the period end. All other conversions are at rates as at the time announced.
(2)= Impairment of intangible assets totaled GBP8.47 million, net of tax, which if included equates to a group loss per share of 1.07 pence (ZAR 18.55 cents)


Operational Highlights

The DCM Operations deliver first full year of production with total chrome concentrate produced of 78 588 tonnes, resulting in revenue of GBP 9.37 million (ZAR
161.94 million)

The Hernic PGM and chrome project is bought into operation and delivers its first saleable PGM concentrate in April 2017 producing 808 PGM(1) ounces by end June
2017 and resulting in revenue of GBP 0.43 million (ZAR 7.43 million)

Jubilee acquires the rights to the PGMs contained in the PlatCro material estimated at 1 400 000 tonnes of PGM containing surface material

The Tjate Platinum project is awarded its mining right in March 2017

(1)= Precious Group Metals ( platinum, palladium, rhodium, iridium, ruthenium and gold)



Highlights post the period under review

DCM chrome and PGM processing agreement replaced with a 50/50 partnership agreement on all chrome concentrate produced at DCM while reaffirming its
exclusive PGM right

3rd Party chrome ore processing agreement executed with DCM targeting the of up to 40 000 tonnes per month of chrome ore to supplement the DCM material

Joint Venture agreement executed with BMR Group PLC for the Kabwe lead, zinc and vanadium surface processing project estimated to contain 6 400 000 tonnes of
lead, zinc and vanadium rich material at surface

Jubilee executes a USD 50 million funding agreement to support the Company’s targeted project build program

Overview
Jubilee has delivered a remarkable operational performance during the period under review with continued strong growth post the period under review. The period
has seen Jubilee being awarded the mining licence for the Tjate platinum project and ramping-up the DCM chrome operation to reach 78 588 tonnes of saleable
chrome concentrate, while delivering the Hernic chrome and platinum recovery plant targeting 660 000 feed tonnes per annum.

Post the period under review, Jubilee continued acquiring further access to valuable surface resources which included the acquisition of the PGMs contained in the
surface material at PlatCro Minerals (“PlatCro”) in South Africa as well as entering into a joint venture agreement with BMR Group PLC to execute the Kabwe surface
processing project targeting the recovery of lead, zinc and vanadium from surface material in Zambia. These transactions extended Jubilee’s reach beyond the
borders of South Africa into both PGMs and base metals leveraging off its in-house metallurgical skill, project execution track record and operational performance.

Jubilee now holds a project portfolio containing low risk, high return, short term projects which includes:

Platinum project to recover PGMs from the estimated 1 400 000 tonnes surface stock at PlatCro in South Africa
Platinum project to recover PGMs from the estimated 800 000 tonnes at surface at DCM in South Africa
Kabwe project to recover lead, zinc and vanadium from the estimated 6 400 000 tonnes            (3 200 000 tonnes JORC compliant) surface tailings at the Kabwe
operations in Zambia

The Company continues to actively pursue further projects consistent with its stated mission to grow the Company’s processing capacity of at or near-surface
material.

Jubilee has responded well to challenges in the global PGM markets as reflected in PGM prices by diversifying its earnings generation to include chrome and PGMs
and expanding its project portfolio into base metals such as lead, zinc and vanadium. Jubilee’s surface projects remain robust at these metal prices as reflected in
Jubilee’s Q3 2017 update, recording a unit cost per PGM ounce produced of USD 476, which is set to reduce further as the project continues to increase its
production. Jubilee’s surface projects has the benefit of not being exposed to mining cost or associated mining risk.


Jubilee’s operations

Hernic – South Africa

The Hernic project is the second of the Company’s operating PGM-bearing surface tailings projects and targets processing in excess of 660 000 feed tonnes tailings
per year. The project has access to an estimated 3 000 000 tonnes of PGM material, to which Hernic continues to add further current arisings material. The project,
which is estimated to contain in excess of 224 000 (3PGM + Au) ounces, is the largest PGM beneficiation plant in South Africa to process surface chrome tailings.
The Hernic project commenced construction in June 2016 with commissioning starting in January 2017 and delivering its first PGM ounces to market in April 2017.
Total project capital spent on the targeted 660 000 tonnes per annum chrome and PGM processing facility reached GBP 12.97 million (ZAR 220 million) of which the
total debt burden of the project was reduced to GBP 2.98 million (ZAR 50.54 million) as at the date of this report.

The data below in table 1 captures the commissioning and ramp-up phases of the project with the data for Q3 2017 illustrating the continued increase in production
and earnings growth following the period under review. The unit cost per PGM ounce produced has reduced to USD 476 during Q3 2017 and is set to reduce further
in-line with the expected continued increase in production for Q4 2017.

Table 1 below presents the operational performance of the Hernic operations for the period under review (Q2 2017) and the following quarter Q3 2017:

                                                                                                                    Jubilee        Jubilee     Unit cost /
                                          Tailings     PGM        Project     Project     Project      Project
                                                                                                                 attributable   attributable      PGM
                                         processed    ounces     revenue 1   revenue2    earnings3    earnings
                                                                                                                   earnings       earnings      ounce
                                          tonnes     delivered   (GBP'000)   (ZAR'000)   (GBP'000)   (ZAR'000)
                                                                                                                  (GBP'000)      (ZAR'000)       (USD)

                              Q2 2017     80 828       808         459(4)     7.604        (110)      (1.928)       (110)         (1.928)         901

                              Total Q3
                                         105 673      2 874        1.539      26.581       496        8.592          496           8.592          476
                              2017

1= Revenue from the current project phase - 100% attributable to Jubilee until full capital recovery. Revenue is projected based on latest average PGM market prices and USD
exchange rates and results are only final once final Quotational Period has passed
2= Average monthly conversion rates used
3= Project Earnings include all incurred operational costs including management services and mineral royalties
(4) = Figures as per quarterly updates announced. The annual total can differ from the annual audited result due to different conversion rates used.

Dilokong Chrome Mine (DCM) – South Africa

Jubilee’s subsidiary, Jubilee Tailings and Treatment Company Proprietary Limited (“JTTC”), holds the exclusive rights to beneficiate the PGMs and chrome from the
platinum and chrome-containing surface material at Dilokong Chrome Mine Proprietary Limited (“DCM”) a subsidiary of ASA Metals Proprietary Limited (“DCM
Platinum Project, Processing Agreement”).
         The Processing Agreement gives Jubilee access to more than 800 000 tonnes (Sept 2012) of surface material containing 74 000 ounces 4E PGM (platinum, palladium,
         rhodium and gold). JTTC achieved stable project target design operations during Q4 2016. In February 2016 Jubilee executed a further processing agreement (“the
         Processing Agreement”) to expand and operate on DCM’s behalf the chrome beneficiation plant.

         Immediately following the period under review, and in an ongoing co-operation with DCM, Jubilee executed a new framework treatment of tailings and chrome ore
         agreement (“New Agreement”) with DCM, thereby cancelling and superseding all existing agreements in respect of chrome processing and PGM recovery at DCM.
         The New Agreement transforms Jubilee’s DCM operations as an equal joint venture with DCM, on all chrome ore including 3rd party chrome ore. This New
         Agreement now affords Jubilee the right to 50 % of all chromite earnings generated from the processing of third party or other Chromite Ore. This New Agreement
         captures the growth of the DCM project from initially Jubilee holding no rights to earnings from chromite ore at the outset of the DCM project. The New Agreement
         further secures Jubilee’s unencumbered PGM rights from all material processed at DCM irrespective of source.

         Jubilee further executed an ore processing agreement (“Ore Agreement”) in addition to the New Agreement, in terms of which Jubilee is contracted to toll process
         up to 40 000 tonnes per month of 3rd party Chrome Ore for an initial three year term period – mutually extendable. Under the terms of the Ore Agreement Jubilee
         also secured the rights to the PGMs in the 3rd party Chrome Ore which further supplements the existing PGMs already contained in the surface material at DCM.
         DCM plant’s spare capacity will be utilized for this processing, which has the potential to more than double current DCM’s operational throughput. The additional
         PGMs secured provides Jubilee the opportunity to expand its PGM recovery strategy at DCM and materially add to the Company’s earnings, since the fixed cost
         element of DCM’s operation would remain relatively unchanged. This Ore Agreement continues Jubilee’s organic growth in this field and is a step in its stated intent
         to consolidate chrome and platinum retreatment in the region.

         During the period under review the DCM operations performed well with its first full year of operation under the terms of the Processing Agreement. The New
         Agreement as announced on 5 September 2017, between DCM and Jubilee became effective on 1 September 2017. The effect of this New Agreement together with
         the ramp-up of processing 3rd party ore at the DCM operations will reflect in the 2018 financial period.

         The table below presents the operational performance of the DCM operations for the period under review and the following quarter Q3 2017:

                     Chromite                                                               Jubilee        Jubilee
                                     Project     Project      Project         Project
                    concentrate                                                          attributable   attributable
                                    revenue     revenue 1    earnings2       earnings
                     produced                                                              earnings       earnings
                                   (GBP'000)    (ZAR'000)    (GBP’000)      (ZAR’000)
                      tonnes                                                              (GBP’000)      (ZAR’000)

Total Q3 2016          26 848        2.141       38.368        1.581         28.320          587          10.505

Total Q4 2016          19 108        2.642       45.714        1.714         29.668          368           6.367
Total Q1 2017           14 973        3.372        55.224        2.407         38.862          408         6.664

Total Q2 2017           17 659        1.348        22.731         386           6.504          399         6.727

Total for period        78 588       9.503(3)      162.037       6.088         103.354        1.762        30.263
under review

Total Q3 2017           15 134        1.129        19.526         184           3.173          356         6.139

          1= Average monthly conversion rates used
          2 = Project earnings include project expenditure on plant and equipment
          (3) = Figures as per quarterly updates announced. The annual total can differ from the annual audited result due to different conversion rates used.


          Chairman’s statement

          Dear Shareholder,


          The year under review has been an exceptional period of growth for Jubilee. Jubilee established itself as a diversified producer of metals entering both the chrome
          and platinum industry through the ramp-up of its DCM operations and commissioning of the Hernic project while the Tjate platinum project was awarded its mining
          license. Jubilee continued its drive to grow post the period under review with the acquisition of the surface PGMs at PlatCro and joint venture agreement with BMR
          Group PLC to execute the Kabwe surface project in Zambia.

          At the commencement of the year, the Hernic plant was approximately 50 % built with the Company gaining significant financial contribution from Dilokong enjoying
          the benefits of increasing chrome prices and our participation in chrome benefits.

          We announced on 6 February 2017 that the Hernic plant commenced production and that the first chromite concentrate had been produced. In the same
          announcement shareholders were advised, that focus had now moved to the commissioning of the PGM recovery plant. The commissioning of the PGM circuit was
          completed towards the end of March 2017 and we announced PGM production on 29 March 2017. Thereafter we saw increased production of chromite and PGMs
          as the various circuits underwent troubleshooting and optimisation. Throughout the period under review the Hernic contribution improved month on month and at
          the time of writing this report, we had reached a total of 3 682 ounces of PGM production. A significant financial performance was the PGM production cost of USD
          476 per ounce for the third quarter 2017. This demonstrates that the operation is extremely resilient to the volatile and depressed PGM prices experienced during
          the year. We continue to optimise at Hernic and are confident of reduced cost throughout the operation, improving productivity and significant financial contribution
          to the group.
The Dilokong operation continued to grow its earnings with upgraded platinum concentrate stockpiles being accumulated at the operation. During the early part of
this year, we advised shareholders that Dilokong financial results would be considerably advanced by the acquisition of third party ore to be processed at Dilokong
and towards the end of the first quarter of 2017 we processed our first third party ore.

Post the closing of this review period, we announced a significant new partnership agreement for third party ore which will provide for an additional 40 000 tonnes
of ore per month for a minimum three year period. The financial effect of this contract will be very positive to the Dilokong operation and to the attributable income
for Jubilee.

In terms of the Middelburg smelter and power station disposal, final proceeds were received mid-March 2017 after full and final settlement post arbitration.

A major milestone for the Company was achieved on 2 March 2017 when we announced that the Tjate Platinum project had been awarded its mining right. The
project represents an extremely, large PGM metal resource and in terms of the fourth generation of new platinum mines is favourably positioned in terms of depth,
grade continuity and is relatively geologically untroubled compared to its peers. We are now busy carrying out all things necessary to maintain compliance with the
terms and conditions of the mining right order. The board are fully aware that new mine development in the platinum industry is not immediately evident, but
remain convinced that Tjate will play a significant role in the future growth of South Africa’s platinum industry in general and this Company in particular.

Our new business development in the past has been proactive and responsive and once projects have been acquired, financing structures were sought to achieve the
acquisition or earn-in requirements. The board considered this to be a less than satisfactory arrangement and commenced a search for a funding partner who knew
our business and shared our aspirations for its growth.

Post balance sheet in August 2017, we announced an agreement with Riverfort Capital Group Limited for a project funding agreement of USD 50 million. We have
not yet used this agreement for any new projects but are highly encouraged that we have the arrangement in place as we enter more and more discussions for new
projects.

A further major post balance sheet announcement was made on 23 October 2017, which involved the joint venture with BMR Group PLC (“BMR”). This joint venture
is based in Zambia and relates to the Kabwe lead, zinc and vanadium historical surface deposits. This project involves Jubilee investigating, developing flow sheets
and if appropriate building a treatment plant in joint venture with BMR. The surface deposits are large and entail at least 6 400 000 tonnes of material of which 50 %
is JORC compliant. The joint venture entails that Jubilee, stage advances up to GBP 2.30 million and thereafter shares some 40 % of the beneficial earning arising
from the project. This agreement is very important on the basis that the Company is now involved in a different company, country and in different commodities thus
providing a hedge to the Bushveld complex and South Africa.

In terms of PGM metal prices we remain somewhat disappointed as to their volatility and low top range. This being despite more cars being built and a prosperous
new global economy with good signs for emerging markets. There is much talk about the electric car being the answer and therefore displacing the need for fuel cell
powered motor cars. The Jubilee board believes that the electric car is an interim step and the emergence of the fuel cell will significantly enhance the fortunes of
the platinum producing industry.

In any event we are seeing the normal supply demand attrition and supply response which is a cycle common to all commodities.

Jubilee has emerged, at the time of writing this report as a diversified producer with many significant opportunities currently being investigated and negotiated at an
advanced level. A number of these opportunities, if brought to completion, could change the short-term prospects for Jubilee and make the mid-cap space, to which
I often allude, a reachable target.

Jubilee, having completed two projects, is now at a very important stage in its evolution and the board has to consider the merits of organic growth against
corporate acquisition growth or combination thereof. We are mindful that the resource world has not rebounded from the woes of the past and that major
opportunities exist for companies committed to growth. Jubilee is one of those companies.

Although the board expects to realise the value of the Nickel Tailings Project, the board felt it prudent to impair the asset until the legal impasse with BHP is resolved.
The Group reported a loss per share from continuing operations for the period under review, excluding impairments of intangible assets, of 0.25 pence (ZAR 4.27
cents) compared to a loss of 0.38 pence (ZAR 8.07 cents) for the comparative period. Impairment of intangible assets totaled GBP 8.47 million, net of tax, which if
included equates to a group loss per share of 1.07 pence (ZAR 18.55 cents).

Finally I would like to thank everyone concerned at whatever level in Jubilee who have assisted in taking the Company to its current position. In particular I would like
to thank the Chief Executive Officer Leon Coetzer and his immediate team for their commercial prowess and intellectual and managerial contribution to our projects.
Their efforts have been instrumental in creating the Jubilee brand, which is now exportable, credible and achieving global recognition.

Colin Bird
Non-Executive Chairman


Financial statements for the year ended 30 June 2017
Consolidated statement of comprehensive income for the year ended 30 June 2017


Figures in Sterling                                                           2017           2016
Continuing operations                                       9 805 701       1 473 921
Revenue Cost of sales                                     (8 038 731)       (608 309)
Gross profit                                                1 766 970          865 612
Other income                                                      348           10 725
Operating expenses                                        (3 439 040)      (4 690 862)

Operating loss                                            (1 671 722)      (3 814 525)
Investment revenue                                             18 673          144 077
Gain on non-current assets held for sale or
disposal groups                                                     -          84 680
Impairment of intangible assets                          (18 570 584)               -
Finance costs                                               (198 565)        (13 418)

Loss before taxation                                     (20 422 198)      (3 599 186)
Taxation                                                    9 849 606          201 901

Loss from continuing operations                          (10 572 592)      (3 397 285)
Discontinued operations
Loss from discontinued operations                                      -    (276 660)

Loss for the year                                        (10 572 592)      (3 673 945)
Other comprehensive income:
Exchange differences on translating foreign operations     6 104 352        2 653 926

Total comprehensive loss                                  (4 468 240)      (1 020 019)

Attributable to:
Owners of the parent:
Loss for the year from continuing operations             (10 570 058)      (3 412 174)
Loss for the year from discontinuing operations                    -         (283 749)

Loss for the year attributable to owners of the parent   (10 570 058)      (3 695 923)

Non-controlling interest:
(Loss)/profit for the year from continuing operations        (2 534)           14 889
Profit for the year from discontinuing operations                  -            7 089
Profit for the year attributable to non-controlling interest          (2 534)        21 978


Total comprehensive loss attributable to:
Owners of the parent                                              (4 878 961)    (1 009 610)
Non-controlling interest                                              410 721       (10 409)

                                                                  (4 468 240)    (1 020 019)

Basic and diluted loss per share (pence) – continuing
operations                                                             (1.07)         (0.38)

Basic and diluted loss per share (pence) – discontinued
operations                                                                  -         (0.03)
Loss per share                                                         (1.07)         (0.41)




Consolidated statement of financial position as at 30 June 2017

Figures in Sterling                                                 2017          2016

Assets
Non-current assets
Property, plant and equipment                                       13 161 021     4 977 784
Intangible assets                                                   48 166 942    61 838 764
Deferred tax                                                                 -       218 345

                                                                    61 327 963    67 034 893

Current assets
Inventories                                                             44 789             –
Other financial assets                                                       -       555 159
Current tax receivable                                                  15 870        15 870
Trade and other receivables                                          3 222 150     1 074 509
Cash and cash equivalents                                            4 635 636     4 414 908

                                                                     7 918 445     6 060 446
Total assets                                                          69 246 408      73 095 339

Equity and liabilities
Equity attributable to equity holders of parent
Share capital                                                          87 674 940      82 515 169
Reserves                                                               23 078 043      17 997 713
Accumulated loss                                                     (57 261 760)    (46 799 127)

                                                                       53 491 223     53 713 755
Non-controlling interest                                                2 867 039      2 456 318

                                                                       56 358 262     56 170 073

Liabilities
Non-current liabilities
Other financial liabilities                                                688 000            -
                                                                         5 362 500   14 677 152
Deferred tax
                                                                         6 050 500   14 677 152
Current liabilities
Other financial liabilities                                              3 083 581              –
Trade and other payables                                                 3 754 065      2 248 114
                                                                         6 837 646      2 248 114
Total liabilities                                                       12 888 146    16 925 266
Total equity and liabilities                                            69 246 408    73 095 339


The financial statements were authorised for issue and approved by the Board on 9 November 2017 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 2017



                                               Foreign
                                              currency                     Share-based                                             Total attributable         Non-
                               Share        translation       Merger          Payment                            Accumulated       to equity holders    controlling
Figures in Sterling           capital          reserve       reserve           reserve          Total reserves          loss           of the Group        interest    Total equity

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      49 508 001
Changes in equity
Total comprehensive
income for the year
                                        –     2 686 313                –               –           2 686 313       (3 695 923)        (1 009 616)          (10 409)     (1 020 019)
Issue of share capital
net of costs                  6 618 587               –                –               –                    –               –          6 618 587                 –       6 618 587
Disposal of
subsidiaries                            –     1 820 818                –               –           1 820 818       (1 820 818)                 –         (397 268)       (397 268)
Warrants issued                         –             –                –         304 925             304 925                 –           304 925                 –         304 925
Options issued under
new scheme                              –             –                –       1 155 847           1 155 847                –          1 155 847                 –       1 155 847
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                  –                –               –
Adjustment to NCI                       -             -                -                -                   -      (2 498 923)        (2 498 923)        2 498 923               -
Total changes                 6 618 587       4 507 131                –      (3 251 676)          1 255 455       (3 303 216)         4 570 826         2 091 246       6 662 072
Balance at 1 July
2016                         82 515 169      (7 133 637)     23 184 000        1 947 350          17 997 713      (46 799 126)        53 713 756         2 456 317      56 170 073

Total comprehensive
income for the year                 -           5 691 097              -                    -        5 691 097      (10 572 592)         (4 878 961)         410 721      (4 468 239)
Issue of share capital
                          5,159,771             -            -           -            -              -            -           -            -
net of costs
Warrants issued                   -             -            -      22,025       22,025             -       22,025            -      22,025
Warrants exercised                -             -            -   (632,792)    (632,792)       632,792            -            -           -
Increase in investment
                                  -             -            -           -            -     (525,367)     (525,367)           -    (525,367)

Total changes             5,159,771    5 691 097             -   (610,767)    5 080 330   (13,374,298)    (255 066)    410 721      188,190
Balance at 30 June
                         87 674 940   (1 442 540)   23 184 000   1 336 583   23 078 043   (57 261 760)   53 491 223   2 867 039   56 358 262
2017
Consolidated statement of cash flow for the year ended 30 June 2017

Figures in Sterling                                                       2017         2016

Cash flows from operating activities                                    (160 100)    (688 883)
Cash used in operations                                                    18 673      144 077
Interest income Finance costs                                           (384 935)     (13 418)

Net cash from operating activities                                       526 362     (558 224)

Cash flows from investing activities
Purchase of property, plant and equipment                             (7 161 323)   (4 548 858)
Sale of property, plant and equipment                                      19 145              –
Purchase of other intangible assets                                      (37 685)        (4 239)
Net cash flow from disposal of discontinued operations                          -     3 986 126
Decrease/(increase) in loans                                              555 159     (555 159)
Payments in advance for tailings                                      (1 179 220)              –

Net cash from investing activities                                    (7 803 924)   (1 122 130)

Cash flows from financing activities
Net proceeds on share issues                                            5 159 771    5 865 560
Proceeds from other financial liabilities                             (2 986 434)    (102 490)
Repayment of other financial liabilities                                6 135 647            -

Net cash from financing activities                                     8 308 984     5 763 070

Total cash movement for the year                                          21 302      4 082 716
Total cash at the beginning of the year                                4 414 908        360 829
Effect of exchange rate movement on cash balances                        242 030        (28 637)

Total cash at end of the year                                          4 635 636      4 414 908
NOTES TO THE AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2017


    1. Statement of accounting policies

 The Group and Company results for the year ended 30 June 2017 have been prepared using the
 accounting policies applied by the Company in its 30 June 2016 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 2017 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
 2016 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

The Group reported a loss per share from continuing operations for the period under review, excluding
impairments of intangible assets, of 0.25 pence (ZAR 4.27 cents) compared to a loss of 0.38 pence (ZAR
8.07 cents) for the comparative period. Impairment of intangible assets totaled GBP 8.47 million, net of
tax, which if included equates to a group loss per share of 1.07 pence (ZAR 18.55 cents). The impairment
relates to the Group’s interest in its Nickel Tailings Project in Australia. Although the board expects to
realise the value of the Nickel Tailings Project, the board felt it prudent to impair the asset until the legal
impasse with BHP is resolved.

The Group managed to continue to tightly control costs. Total operating expenses from continued
operations is down 26.69 % to GBP 3.44 million (ZAR 59.46 million) ((2016: GBP 4.69 million) (ZAR 81.06
million)).


Earnings per share for the year ended 30 June 2017 were as follows:                          2017           2016

 Basic loss for the year – continuing operations (£’000)                                     (10 570)       (3 412)
 Basic loss for the year – discontinuing operations (£’000)                                         -        (283)
 Total loss for the year (£’000)                                                             (10 570)       (3 695)

 Weighted average number of shares in issue (‘000)                                           984 780       906 241
 Loss per share – continuing operations (pence)                                                (1.07)        (0.38)
 Loss per share – discontinuing operations (pence)                                                  -        (0.03)

                                                                                               (1.07)        (0.41)
  Loss per share – continuing operations (ZAR cents)                                          (18.55)         (8.07)
  Loss per share – discontinuing operations (ZAR cents)                                             -         (0.67)

                                                                                              (18.55)         (8.74)
  The Group reported a net asset value of 5.04 pence (ZAR 85.54 cents) (2016: 5.65 pence (ZAR 112.38
  cents) per ordinary share. The total shares in issue as at 30 June 2017 were 1 118 360 942 (2016: 991
  087 994). Refer to note 6 below for details of shares issued during the period under review.

     3. Dividends

 The Board did not declare any dividends for the period under review. (2016: Nil)

     4. Auditor’s review opinion

 These results have been audited by the Group’s auditors, Saffery Champness LLP 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


                                                                                    30 June         30 June
                                                                                      2017            2016
Authorised
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 (£)                                             11 183 609        9 910 872
                                                                                76 491 331       72 604 297
Share premium (£)
Total issued capital (£)                                                        87 674 940       82 515 169

Number of shares in issue
Ordinary shares                                                              1 118 360 942      991 087 194


The Company issued the following shares during the period and up to the date of this annual report:
                                                                    Number of           Issue price –        Purpose
Date                                                                    shares                 Pence     of the issue
Opening balance                                                    991 087 194
21 November 2016                                                    25 000 000                  3.55        Warrants
                                                                                                            Director
21 November 2016                                                        1 848 167               2.44    remuneration
23 January 2017                                                         2 300 000               3.16        Warrants
31 January 2017                                                         2 500 000           3.15975         Warrants
03 February 2017                                                       10 550 581               3.23        Warrants
09 February 2017                                                        2 500 000           3.15975         Warrants
14 February 2017                                                        2 000 000           3.15975         Warrants
17 February 2017                                                        2 000 000           3.15975         Warrants
22 February 2017                                                        1 450 000           3.15975         Warrants
27 February 2017                                                          625 000                2.0        Warrants
27 February 2017                                                          500 000                 2.5       Warrants
10 March 2017                                                          10 000 000              4.725        Warrants
23 March 2017                                                        66 000 000                  5.0    Issue for cash
Closing balance at year-end                                       1 118 360 942
Balance as at the last practicable date                           1 118 360 942

The Company did not issue any shares after year-end to the date of this report.
During the year transaction costs accounted for as a deduction from equity amounted to GBP 314 050.

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     pence          period            %             pence
      3 591 742               2015-08-12      4.750       2018-08-12        77.49            4.48
      8 244 825               2016-03-23      4.725       2019-03-23        83.81            2.94
     11,836,567

 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 the share-based payment reserve in the
 amount of £22 025 (2016: £304 925) 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 of four
 reporting segments (including those reported on for the comparative period) being:

 the beneficiation of Platinum Group Metals (“PGMs”) and development of PGM smelters utilising
 exclusive commercialisation rights of the ConRoast smelting process, located in South Africa (“PGM
 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 Metals (“PGMs”) (Exploration and mining);

 the parent company operates a head office based in the United Kingdom, which incur certain
 administration and corporate costs.

 The results of the discontinued operations comprise of 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 2017


                                 PGM
                        beneficiation                                                         Total
                                   and                   Exploration        Other       continuing      Disposal
Figures in Sterling     development Nickel tailings      and mining     operations     operations         group
Total revenues            (9 805 702)             -                -             -     (9 805 702)             -
Cost of sales               8 038 731             -                -             -       8 038 731             -
Forex losses                    47 714            -                -       24 704            72 418            -
Loss before taxation        1 511 175    18 566 747           71 118      734 887      20 883 927      (461 728)
Taxation                      250 303  (10 099 909)                -             -     (9 849 605)             -
Loss after taxation         1 761 478     8 466 838           71 118      734 887      11 034 322      (461 728)
Interest received             (11 609)            -            (760)       (6 304)         (18 673)            -
Interest paid                 198 565             -                -             -         198 565             -
Depreciation,
amortisation and
impairments                1 108 866       18 554 683        15 901              -     19 679 451
Total assets              24 149 529       15 131 292    26 524 677      3 440 910     69 246 408
Total liabilities         (7 138 099)      (2 275 862)   (2 414 659)    (1 059 526)   (12 888 146)


Segment report for the year ended 30 June 2016


                                 PGM
                        beneficiation                                                        Total
                                   and                   Exploration          Other     continuing       Disposal
Figures in Sterling     development Nickel tailings      and 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)              –
    8. Going concern

The Directors have adopted the going-concern basis in preparing the financial statements.

The period under review was transformational for the Jubilee Group of companies and it has
continued to successfully implement its Metals Recovery Strategy which is advancing at an
encouraging pace and the Board is confident that the Group can make further acquisitions to
complement its existing projects and extend its brand and capabilities into other global surface
projects.

The objectives of Jubilee’s Metals Recovery Strategy are threefold:
Secure low risk, low capital intensive, long-term commodity production from mine waste at an
attractive point on the global cost curve by using advanced, environmentally sustainable metal
recovery techniques;

Diversify across multiple commodities including platinum, cobalt, copper and gold to hedge income
risk and to align with global trends; and

Rehabilitate the adverse footprint left by legacy mining in accordance with International
Environmental Standards.

The field of extractive metallurgy has made substantial technological progress in the last 10 years
increasing the ability to profitably re-process materials that contain metals and minerals missed by the
initial recovery path. For several years now, Jubilee has developed successful proprietary processing
techniques to optimise metal recovery in an environmentally friendly and sustainable manner for
many companies including large blue-chip mining houses. Jubilee Processing is well positioned to
capitalise on its in-house expertise to become a global leader in this field.

On 9 August 2017, Jubilee secured a project funding structure, provided by RiverFort Capital Group
Limited (“RiverFort”), which is modelled on the successful Hernic platinum and chrome recovery
project which was also financed through RiverFort.

The key features of the Agreement are:
Funding will be provided at project-level directly to the Jubilee project subsidiary by RiverFort

USD 50 million pre-approved debt funding targeting multiple surface based metal recovery projects
based on established individual project criteria

The funding commitment is for an initial 33-month period with the flexibility for mutual extension

In recognition of the funding commitment, RiverFort has been granted the right to exercise a 2.5 %
maximum preference equity stake in the subsidiary Jubilee Processing

As previously announced on 31 March 2016, the remaining purchase consideration of the Middelburg
Disposal was calculated at approximately GBP 0.39 million (ZAR 8.90 million) net of closing
adjustments including stock and supplier adjustments. The final settlement amount of GBP 0.46
million (ZAR 7.40 million) has been received by Jubilee in March 2017. These proceeds strengthened
the Group’s cash flow and its ability to fund its projects.

During March 2017 the Company successfully completed a placing of 66 000 000 new ordinary shares
of 1 pence each (“Ordinary Shares”) in Jubilee (the “Placing Shares”) at a price of 5.0 pence (ZAR 78.70
cents) per share to raise approximately GBP 3.30 million before expenses (ZAR 51.90 million at current
conversion rates).

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. Events after the reporting period

9.1 PlatCro Platinum and Chrome Tailings Project (“PlatCro project”)

Post the period under review the Company executed a Framework and Processing of Tailings
Agreement (“the Agreement”) with PlatCro in March 2017 for the acquisition of new platinum,
palladium, rhodium and gold (“4E PGMs”) bearing surface material existing at PlatCro as well as all
future surface material at PlatCro. The existing surface material is estimated at 1 250 000 tonnes with
an estimated grade of 2.7 g/t 4E PGMs. This ensured Jubilee the sole right to future earnings from the
platinum bearing material.

The PlatCro project will target a processing rate of 25 000 tonnes per month to complement Jubilee’s
surface tailings platinum production by a further 14 200 ounces of PGMs per annum. This projects a
total production target at stable operations of approximately 50 000 ounces of PGMs per annum for
Jubilee from all its surface tailings and 3rd party ore projects.

Under the Agreement Jubilee will acquire the existing material for a total consideration of GBP 3.13
(ZAR 50.00) per tonne of surface material remaining after on-going further recovery of residual
chromite by PlatCro. Approximately 79 % of the material is estimated to remain following chromite
removal, which equates to a 4E PGM acquisition value of GBP 3.50 million (ZAR 55.40 million).

The Agreement allows for a two-stage payment over an estimated three month period following the
conclusion of the Agreement. Future material will be acquired at a value of GBP 3.13 (ZAR 50.00) per
tonne of material post chromite removal. The surface material is located within trucking distance of
Jubilee’s Hernic operation, thereby offering the opportunity to process the additional material at the
Company’s existing Hernic plant for PGM recovery. Jubilee also holds the option to acquire property
located adjacent to the surface material for the construction of a dedicated platinum processing plant,
if deemed appropriate, and at Jubilee’s election.

On 9 May 2017 Jubilee executed the first payment of GBP 1.16 million (ZAR 20 million) as part of the
PlatCro project. The PlatCro project includes the upfront acquisition of all PGMs contained in surface
material as well as future PGMs from further processing and mining operations.

The final payment for the existing surface PGMs is subject to the completion of the surface drill
programme and receiving regulatory approval to commence with the processing of the PGMs. The
first payment was recognised in the statement of financial position as a prepayment until such time as
the necessary conditions have been met. On 31 July 2017 Jubilee notified PlatCro that it has
undertaken and completed a survey of the dam as provided for in the Agreement.

9.2 Project funding secured

On 9 August 2017, Jubilee secured a USD50 million project funding structure, provided by RiverFort
Capital Group Limited (“RiverFort”), which is modelled on the successful Hernic platinum and chrome
recovery project which was also financed through RiverFort.
    10. Contingencies and commitments


Other than disclosed below, there are no material contingent assets or liabilities as at 30 June 2017.


 10.1 PlatCro Platinum and Chrome Tailings Project (“PlatCro project”)

 Jubilee executed a framework and processing of tailings agreement (“the Agreement”) with
 PlatCro Proprietary Limited (“PlatCro”). The Agreement provides for the acquisition of the
 platinum, palladium, rhodium and gold (“4E”or “PGMs”) contained in the existing surface material
 as well as all future material at the PlatCro. Existing surface material is estimated to be 1.25
 million tonnes at an estimated grade of 2.7 g/t 4E PGMs. On 9 May 2017 Jubilee executed the first
 payment of GBP 1.16 million (ZAR 20 million) as part of the PlatCro project.

 The PlatCro project includes the upfront acquisition of all PGMs contained in surface material as
 well as future PGMs from further processing and mining operations of which the first payment
 equates to approximately 50 % of the acquisition value. The final payment for the existing surface
 PGMs is subject to the completion of the surface drill programme and receiving regulatory
 approval to commence with the processing of the PGMs. The first payment was recognised in the
 statement of financial position as a prepayment until such time as the necessary conditions have
 been met. On 31 July 2017 Jubilee notified PlatCro that it has undertaken and completed a survey
 of the dam as provided for in the Agreement. As at the period end Jubilee recognised the first
 payment of the acquisition value as a prepayment in an amount of GBP 1.16 million (ZAR 20
 million).


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

JSE Sponsor

Sasfin Capital, (a member of the Sasfin group)
Sharon Owens
Tel +27 (0)11 809 7500

Nominated Adviser

SPARK Advisory Partners Limited
Mark Brady/Andrew Emmott
Tel: +44 (0)203 368 3551

Broker
Beaufort Securities Limited
Jon Belliss
Tel: +44 (0) 20 7382 8300




Annexure 1



Jubilee Platinum Plc

Independent auditors’ report to the members

Opinion

We have audited the financial statements of Jubilee Platinum Plc for the year ended 30 June 2017 which
comprise the Consolidated and Company Statements of Comprehensive Income, the Consolidated and
Company Statements of Financial Position, the Consolidated and Company Statements of Changes in
Equity, the Consolidated and Company Statements of Cash flows and notes to the financial statements,
including a summary of significant accounting policies set out on pages 30 to 71. The financial reporting
framework that has been applied in their preparation is applicable law and International Financial
Reporting Standards (“IFRS”) as adopted by the European Union.

In our opinion, the financial statements:

give a true and fair view of the state of affairs of the Group and of the parent company as at 30 June
2017 and of their losses for the period then ended;


have been properly prepared in accordance with IFRS as adopted by the European Union; and
have been prepared in accordance with the requirements 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.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and
applicable law. Our responsibilities under those standards are further described in the Auditor’s
responsibilities for the audit of the financial statements section of our report. We are independent of the
company in accordance with the ethical requirements that are relevant to our audit of the financial
statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical
responsibilities in accordance with these requirements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require
us to report to you where:
the Directors’ use of the going concern basis of accounting in the preparation of the financial statements
is not appropriate; or


the Directors have not disclosed in the financial statements any identified material uncertainties that
may cast significant doubt about the company’s ability to continue to adopt the going concern basis of
accounting for a period of at least twelve months from the date when the financial statements are
authorised for issue.



Key audit matters


Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial statements of the current period and include the most significant assessed risks of
material misstatement (whether or not due to fraud) we identified, including those which had the
greatest effect on: the overall audit strategy, the allocation of resources in the audit; and directing the
efforts of the engagement team. These matters were addressed in the context of our audit of the
financial statement as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters. This is not a complete list of all risks identified by our audit.


 Key audit matter                                            How our audit addressed the key audit
                                                             matter
 Carrying value of intangible assets
 The carrying value of intangible assets                      Our audit procedures included the
 included in the Group’s balance sheet                        following:
 at 31 December 2017 was stated at                                Assessing the methodology used
 £48.2m, contained within 3 cash                                  by the Directors to calculate
 generating units (“CGUs”).                                       recoverable      amounts      and
                                                                  evaluated if it complies with the
 The Directors assess at each reporting                           requirements of IAS 36;
 period end whether there is any
 indication that an asset may be                                 Assessing the viability of the
 impaired and intangible assets with an                          platinum group elements (“PGE”)
 indefinite life must be tested for                              exploration asset by analysing
 impairment on an annual basis. The                              future projected cash flows used in
 determination of recoverable amount,                            the value in use calculations for the
 being the higher of value-in-use and                            CGU to determine whether the
 fair value less costs to dispose,                               assumptions used in projecting the
 requires judgement on the part of                               cash flows are reasonable and
 management in both identifying and                              supportable given the current
 then valuing the relevant CGUs,                                 macroeconomic climate;
 especially for projects where the
 there is an uncertain timeframe.                                Performing sensitivity analysis on
                                                                 key assumptions and testing the
 Deferred tax liabilities are recognised                         mathematical accuracy of models;
 on certain intangible assets following                          Comparing foreign exchange rates
 business combinations and these                                 used in management’s calculations
 liabilities are re-evaluated at each                            against third party sources;
 reporting period end.
                                                                 Understanding the commercial
 Any impairment in these CGUs could                              prospects of the assets, and where
 lead to subsequent impairments in                               possible       comparison       of
 the parent company investments in                               assumptions with external data
 subsidiaries or intercompany loans to                           sources;
these subsidiaries.                                              Reviewing correspondence and
                                                                 other sources for evidence of
Due to the significance of the                                   impairment;
intangible assets to the consolidated
financial statements, the significant                            Reviewing the recoverability of
judgements involved in these                                     intercompany loans within the
calculations and the potential impact                            parent company and indicators of
to parent company investments and                                impairment in investments in
intercompany loans, the carrying                                 subsidiaries;
value of intangible assets is a key
audit matter.                                                    Assessing the appropriateness and
                                                                 completeness of the related
                                                                 disclosures in note 8, intangible
                                                                 assets, of the group financial
                                                                 statements; and

                                                                 Recalculating the deferred tax
                                                                 liability relating to   specific
                                                                 intangible assets and assessing
                                                                 applicable tax rates.

                                                                Based on our procedures, we noted no
                                                                material exceptions and considered
                                                                management’s key assumptions to be
                                                                within reasonable ranges.
Key audit matter                                               How our audit addressed the key audit
                                                               matter
Revenue recognition
Revenue for the year was £9.8m,                               Our audit procedures included the
representing a significant increase on                        following:
2016. Additionally, this is the first year                    Evaluating    the Group’s revenue
of production at Hernic, leading to the                       recognition policy and management’s
recognition of revenue from platinum                          current year accounting assessment
group metals (“PGM”) concentrate                              for the fair value of consideration
sales as well as chromite concentrate.                        receivable;

As required by IFRS as adopted by the
                                                              Confirming the implementation of the
European Union, an entity is required
                                                              Group’s policy to both PGM
to recognise revenue at the fair value
                                                              concentrate sales at Hernic and
of the consideration received or
                                                              chromite concentrate sales at DCM by
receivable when the following
                                                              performing tests to confirm our
conditions have been satisfied:
                                                              understanding of the process by which
                                                              revenue is calculated;
the entity has transferred to the buyer
the significant risks and rewards of
ownership of the goods;                                     Confirming     that      fair value
                                                            measurements are determined in
the entity retains neither continuing                       accordance with IFRS 13;
managerial involvement to the degree             
usually associated with ownership nor
                                                            Comparing foreign exchange rates
effective control over the goods sold;
                                                            used in management’s calculations;
the amount of revenue can be
measured reliably;                                          Substantive      tests       agreeing
it is probable that the economic                            concentrates to weighbridge tickets
benefits   associated  with  the                            and underlying calculations to terms
 transaction will flow to the entity; and                   stipulated in individual       customer
                                                            contracts ; and
 the costs incurred or to be incurred in
 respect of the transaction can be
                                                            Assessing the appropriateness of the
 measured reliably.
                                                           related disclosures in notes 1.1 and 3,
                                                           revenue recognition accounting policy
 For the sale of chromite concentrate 
                                                           and revenue split by commodity, of the
 and PGM concentrate, revenue is
                                                           group financial statements.
 initially recognised at the fair value of
 the consideration receivable, which is
 an estimate of the final sales price                      Based on our procedures, we noted no
 (see note 1.11, revenue recognition                       material exceptions and considered
 accounting policy, for the full revenue                   management’s key assumptions to be
 recognition policy).                                      within reasonable ranges. We consider
                                                           that revenue recognition has been
 Due to the significance of revenue to                     recognised appropriately and is in
 the consolidated financial statements,                    accordance with the Group’s revenue
 the judgement involved in estimating                      recognition policy.
 consideration receivable and this
 being the first year of revenue
 generated at the Hernic project,
 revenue recognition is a key audit
 matter.




Key audit matter                                          How our audit addressed the key audit
                                                          matter
Accounting for project finance raised
in the year
                                                          Our audit procedures included the
The carrying value of project finance                     following:
liabilities at 30 June 2017 was £3.8m.                    Reviewing loan agreements to
Funding was raised in the year to                         determine all individual cash flows
finance the construction and working                      necessary to calculate the effective
capital of the Hernic project.                            interest rate required to hold the loans
                                                          at amortised cost;
These borrowings are required to be
held at amortised cost under IAS 39.
                                                          Recalculating the effective interest
Additionally, when the conditions for
                                                          rate and the total liability as at 30 June 2017;
borrowing costs to be capitalised are
                                         
met these are required to be
capitalised in accordance with IAS 23.
                                                           Reviewing loan agreements and other
Due to the introduction of new, and                        third party evidence to determine
significant, liabilities during the year,                  when the conditions under IAS 23
together with the requirement to                           where met to commence and cease
capitalise     certain     elements   of                   capitalisation of borrowing costs;
borrowing costs, accounting for project
finance is a key audit matter.
                                                           Recalculating the borrowing costs
                                                           required to be capitalised during the
                                                           year;
                                                           Comparing foreign exchange rates
                                                           used in management’s calculations;
                                                           and
 

                                                            Assessing the appropriateness and
                                                            completeness      of    the   related
                                                            disclosures in notes 19 and 21, other
                                                            financial liabilities and financial
                                                            instruments.

                                                            Based on our procedures, we noted no
                                                            material exceptions and considered
                                                            that disclosures relating to project
                                                            finance     have      been     made
                                                            appropriately.

Our application of materiality
We apply the concept of materiality in planning and performing our audit, in evaluating the effect of any
identified misstatements and in forming our opinion. Our overall objective as auditor is to obtain
reasonable assurance that the financial statements as a whole are free from material misstatement,
whether due to fraud or error. We consider a misstatement to be material where it could reasonably be
expected to influence the economic decisions of the users of the financial statements.

We have determined a materiality of £620,000 (2016: £500,000) for both the Group and Company
financial statements. This is based on 1% of net assets prior to audit.

An overview of the scope of our audit
We tailored the scope of our audit to ensure that we obtained sufficient evidence to support our opinion
on the financial statements as a whole, taking into account the structure of the Group and the Company,
the accounting processes and controls and the industry in which the Group operates.

As Group auditors we carried out the audit of the Company financial statements and, in accordance with
ISA 600, obtained sufficient evidence regarding the audit of seven subsidiaries undertaken by component
auditors in South Africa and Australia. These seven subsidiaries were deemed to be significant to the
Group financial statements either due to their size or their risk characteristics. The Group audit team
directed, supervised and reviewed the work of the component auditors in South Africa and Australia,
which involved issuing detailed instructions, holding regular discussions with component audit teams,
performing detailed file reviews and visiting South Africa to attend local audit meetings with
management. Audit work in South Africa and Australia was performed at materiality levels of £100,000,
lower than Group materiality.

As part of designing our audit, we determined materiality and assessed the risks of material
misstatement in the financial statements. In particular, we looked at where the Directors made
subjective judgements, for example in respect of significant accounting estimates that involved making
assumptions and considering future events that are inherently uncertain. We also addressed the risk of
management override of internal controls, including evaluating whether there was evidence of bias by
the Directors that represented a risk of material misstatement due to fraud.


Other information
The Directors are responsible for the other information. The other information comprises the
information included in the Annual Report, other than the financial statements and our auditor’s report
thereon. Our opinion on the financial statements does not cover the other information and, except to
the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion
thereon.

In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated. If we identify such material inconsistencies or apparent material misstatements, we are
required to determine whether there is a material misstatement in the financial statements or a material
misstatement of the other information. If, based on the work we have performed, we conclude that
there is a material misstatement of this other information; we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

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; and


the Strategic Report and the Directors’ Report have been prepared in accordance with applicable legal
requirements.


Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the
course of the audit, we have not identified material misstatements in the Strategic Report or the
Directors’ Report.

We have nothing to report in respect of the following matters in relation to which the Companies Act
2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept, or returns adequate for our audit have not been
received from branches not visited by us; or


the 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.


Responsibilities of Directors

As explained more fully in the Directors’ Responsibilities Statement set out on page 20, the Directors are
responsible for the preparation of the financial statements and for being satisfied that they give a true
and fair view, and for such internal control as the Directors determine is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, the Directors are responsible for assessing the company’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the Directors either intend to liquidate the company or to cease
operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms
part of our auditor’s report.




…………………………………..

Andrew Gaskell (Senior Statutory Auditor)
for and on behalf of Saffery Champness LLP

Chartered Accountants
Statutory Auditors

71 Queen Victoria Street
London
EC4V 4BE


9 November 2017



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 2017    30 June 2016

Headline loss per share comprises the following:
Continuing operations
Loss from continuing operations for the period attributable to ordinary shareholders           (10 570)         (3 412)
Impairment of other financial assets net of tax                                                   8 522             856
Loss on sale of property plant and equipment                                                          -               1
Loss on exchange differences                                                                         72              81
Headline loss from continuing operations                                                         (1 976)         (2 474)
Weighted average number of shares in issue                                                      984 780         906 241
Headline loss per share from continuing operations (pence)                                        (1.07)          (0.27)
Headline loss per share from continuing operations (ZAR cents)                                   (18.55)          (5.85)
Discontinued operations     -      (283)
shareholders
Headline loss from discontinued operations                                                            -            (283)
Weighted average number of shares in issue                                                      984 780         906 241
Headline loss per share from discontinued operations (pence)                                          -           (0.03)
Headline loss per share from discontinued operations (ZAR cents)                                      -           (0.67)
Average conversion rate used for the period under review £:ZAR                                  0.05786         0.04667


United Kingdom

10 November 2017

Sponsor: Sasfin Capital (a member of the Sasfin group)

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