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JUBILEE METALS GROUP PLC - Unaudited interim results for the six months ended 31 December 2018

Release Date: 28/03/2019 09:00
Code(s): JBL     PDF:  
 
Wrap Text
Unaudited interim results for the six months ended  31 December 2018

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


Dissemination of a Regulatory Announcement that contains inside information according to REGULATION
(EU) No 596/2014 (MAR). Not for release, publication or distribution in whole or in part in, into or from any
jurisdiction where to do so would constitute a violation of the relevant laws or regulations of such
jurisdiction.
                                                                                           28 March 2019

                                    UNAUDITED INTERIM RESULTS
                             FOR THE SIX MONTHS ENDED 31 DECEMBER 2018

Jubilee is pleased to announce its unaudited interim results of the Group for the six months ended 31
December 2018.

HIGHLIGHTS

Financial highlights

    -   Positive earnings per share for the period 0.06 pence (ZAR 0.99 cents*)) (2017: loss of 0.025 pence
        (ZAR 44.15 cents))
    -   Profit for the period up 274 % to GBP 0.76 million (ZAR 13.17 million) )(2017: loss of GBP0.44 million
        (ZAR 7.79 million))
    -   Revenue up 39 % to GBP 8.33 million (ZAR 143.92 million) (2017: GBP 5.99 million (ZAR 105.80 million))
    -   Gross profit up 71 % to GBP 4.04 million (ZAR 69.85 million) (2017: GBP 2.37 million (ZAR 41.85
        million))
    -   Cash generated from operations up more than fourfold to GBP 1.17 million (ZAR 20.29 million) (2017:
        cash utilised in operations of GBP0.38 million (ZAR 6.77 million))

Operational and projects highlights

    -   PGM(#) production up 85 % to 12 288 ounces (2017: 6 629 ounces)
    -   PGM revenue up 98 % to GBP 7.09 million (ZAR 130.59 million) (2017: GBP 3.59 million (ZAR 63.59
        million))
    -   PGM operational earnings up 180 % to GBP 4.09 million (ZAR 75.60 million) (2017: GBP 1.46 million
        (ZAR 26.06 million))
    -   17 011 tonnes (2017: 26 922 tonnes) of remaining saleable coarse chromite concentrate produced at
        DCM

Post period under review

    -      PlatCro Chrome operation acquired in January 2019 and already contributing to Group earnings,
           ahead of schedule, of GBP 0.9 million (ZAR 16.06 million) combined for January and February 2019
    -      The PlatCro PGM project accelerates deliveries of PGM containing material to Northam’s Eland
           platinum concentrator, scheduled to commence PGM recovery and refining during May 2019
    -      Jubilee completes commissioning and bringing into operation of the DCM fine chrome plant delivering
           saleable chrome concentrate to the market
    -      Jubilee executes share purchase agreement for the acquisition of Sable Zinc refinery in Kabwe Zambia
    -      The acquisition reduces construction time of zinc, vanadium and lead refinery by 18 months and
           project capital to below US$ 25 million
    -      Jubilee fully funded for the acquisition and completion of the project construction through a
           combination of project funding and equity placing

    (*)       Conversion rates used for revenue and earnings are at the average conversion rate for the period and for balance sheet at the spot rate at period end.
              Conversion rates used for capital expenditure are at current spot rates
    (#)       Platinum Group Metals (6E platinum, palladium, rhodium, iridium, osmium, and gold)


INTERIM PERIOD OVERVIEW

The results for the period under review highlights Jubilee’s continued growth in earnings as Hernic continues
to deliver strong operational and financial results which will be further supported by the acquisition of the
PlatCro Chrome operations and the commissioning of the DCM Fine chrome operation.

Further earnings growth drivers are targeted in the near term with the acceleration in deliveries of its platinum
material to Northam Platinum’s, Eland platinum recovery plant expected to start processing material in May
2019, as well as the significant move into Zambia through the acquisition of the Sable Zinc refinery for the
processing Jubilee’s zinc, vanadium and lead containing material at Kabwe.

The diversification of our operations and projects portfolio across borders and into base metals, underpins
Jubilee’s clear strategy to become a global, diversified processor of surface material.

Hernic PGM operations – South Africa

Jubilee operates a chrome and platinum recovery plant at the Hernic Ferro chrome operation in South Africa.

For the period under review the Hernic PGM operation achieved a unit cost per PGM ounce produced of below
US$ 400, which makes the operation one of the lowest cost platinum producers in the industry. The operations
nearly doubled its PGM ounce production to 12 288 PGM ounces from 6 629 PGM ounces for the comparative
6 month period, with revenues increasing to GBP 7.09 million (ZAR 130.59 million). Operational earnings
increased to GBP 4.09 million (ZAR 75.60 million) (2017: GBP 1.46 million (ZAR 26.06 million)) assisted also by
increased palladium prices.

The Hernic PGM operation continued to deliver strong earnings post the period under review, despite a
delayed start-up following the December break and the challenges posed by increased power outages from
the South African power grid. The Company expects production to return to previous levels from March 2019.
Hernic delivered operational earnings of GBP1.10 million combined for January and February 2019. The
Company expects to further grow the earnings potential as it targets to increase delivery of feed material to
the Hernic PGM operation.

The table below presents the performance of the Hernic PGM operation for the period under review.
                                                                                                                                                
                    Tailings          PGM            Project          Project        Project         Project         Jubilee         Jubilee                                                                                                                                attributable            attributable
                    processed         ounces         revenue (i)      revenue(ii)    earnings(iii)   earnings        attributable    attributable                                                                                                                        earnings                earnings
                    tonnes            delivered      GBP'000)         (ZAR'000)      (GBP'000)       (ZAR'000)       earnings        earnings
                                                                                                                     (GBP'000)       (ZAR'000)

Total Q3
                      135 146         6 009          3.356             61.785         1 920          35.523            1 920          35.523
  2018
  
Total Q4
                      132 037         6 279          3.737             68.807         2 173           40.078           2 173          40.078
  2018
  
Total H1
                      267 183        12 288           7.093           130.592         4 093           75.601           4 093           75.601
  2018


                                   Revenue /                Earnings /
Project Summary                     PGM oz                   PGM oz
                                     (US$)                    (US$)

Total 2018                            756                      362

(i)  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 US$ exchange rates and results are only 
     final once final Quotational Period has passed
(ii) Average monthly conversion rates used
(iii)Project Earnings include all incurred operational costs including management services and mineral royalties

DCM chrome and PGM projects – South Africa

The DCM operation for the recovery of the coarse chrome from the surface material approached the project’s
end of life during the period under review and was replaced by the implementation and commissioning of the
industry first fine chrome recovery circuit.

The DCM fine chrome plant was brought into production during January 2019 and ramped up to reach
commercial production levels during March 2019. The project targets the recovery of the super fine chrome
component currently lost to tails by the chrome industry. The DCM plant holds a capacity to process up to
25 000 tonnes per month of chrome containing tailings material. Jubilee will target to roll-out this process to
its other operations.

PlatCro chrome and PGM operation – South Africa

Jubilee completed the acquisition of the PlatCro chrome operation in January 2019. The acquisition of this
chrome processing facility provides Jubilee with a strategically placed chrome processing footprint in the heart
of several established chrome mining operations in need of an efficient chrome processor of choice.

The acquisition complements the large platinum and palladium (and other PGM containing) surface tailings
material (in excess of 1. 45 million tonnes) already owned by Jubilee. Jubilee plans to recover the chrome
contained in this material and process the remaining platinum and palladium containing material in partnership
with the nearby Eland platinum recovery plant.

Jubilee accelerated deliveries of this PGM containing material to Northam’s Eland platinum recovery plant from
February 2019, scheduled to commence PGM recovery and refining during May 2019. The PlatCro PGM
operation targets to process up to 60 000 tonnes per month of PGM material equating to a production
potential of 30 000 PGM ounces per annum which is equivalent to the targeted production levels at the Hernic
PGM operation.

Kabwe Project – Zambia

Jubilee executed a share purchase agreement for the acquisition of the Sable Zinc refinery in Kabwe Zambia in
March 2019. The refinery is situated immediately adjacent to the large stock piles of zinc, lead and vanadium
that Jubilee has contracted from BMR Group PLC (“BMR”). This transaction extended Jubilee’s reach beyond
the borders of South Africa into both PGMs and base metals, thus leveraging off its in-house metallurgical skill,
project execution track record and operational performance.

The Kabwe Project targets an initial processing rate of 20 tonnes per hour producing a zinc concentrate and
vanadium pentoxide before ramping up to a targeted 40 tonnes per hour producing zinc metal, vanadium
pentoxide and a lead concentrate. The Project targets to produce annually over 8 000 tonnes of zinc, 1 500
tonnes of vanadium and 15 000 tonnes of lead as it ramps up to full capacity over a 2-year period. The Kabwe
Project comprises an estimated 6.4 million tonnes (3.2 million JORC compliant) of surface assets.

During the period under review and prior to the acquisition of the Sable Zinc refinery, Jubilee’s agreements for
the Kabwe Project were updated (“Updated Agreements”) to better align with Jubilee’s role to deliver a
successful project. The Updated Agreements places Jubilee in full control of the execution methodology and
funding requirements to bring the project to account. In return Jubilee holds a minimum of 87.5 % shareholding
in Kabwe Operations Limited (“Kabwe Operations”) assigned with all intellectual property developed for the
execution of the Kabwe Project as well as the right to fund and execute the Kabwe Project.

Jubilee also holds a further option, at its sole election, to acquire 100% of the issued shares of Enviro Mining
Limited (“EML”), a subsidiary of BMR and the company that owns the Project through BMR’s Zambian based
Enviro Processing Limited (“EPL”). BMR will hold either the remaining 12.5 % shareholding in Kabwe
Operations or should Jubilee acquire EML outright a 12. 5% share of earnings generated by the Kabwe Project
(“Royalty”). Such Royalty payments will only be due and payable by the Kabwe Project once Jubilee has secured
a minimum of a 20 % rate of return on the investment made into the Project and only once EPL or Kabwe
Operations have received all generated earnings in cash.

Project Pipeline

Jubilee is well positioned to secure a significant position in the global metals recovery market as it continues
to refine its project execution schedule for various targeted pipeline surface processing projects. These pipe-
line projects offer significant growth potential in the short term and we are actively in discussions to secure
further such surface projects.

Chairman’s statement

Dear Shareholder,

This interim period has delivered exceptional results with much activity settling down developed projects,
negotiating new projects, raising the necessary finance and increasing production productivity.
The Hernic operation advanced very positively and the final quarter saw a production of 6 279 ounces, which
was achieved taking into account the Christmas season which can be very disruptive.

The second half of 2018 showed PGM ounces being produced at less than US$ 400 per ounce with the average
of the year being US$ 362 per PGM ounce produced. This makes the Company one of the cheapest platinum
producer in the world. The Dilokong Chrome Mine (“DCM”) continued to perform well whilst in the process of
constructing the fine chrome recovery plant. The financial performance was slightly inhibited during this
development phase and commissioning commenced during the latter part of the year. I am pleased to
announce that during March 2019 the plant has reached commercial production achieving forecast recovery
and concentrate grade. This fine chrome plant is a milestone for the Company and is representative of the
innovative approach the Jubilee brings to all its projects.

On 10 December 2018 we announced our targeted acquisition of a major chrome operation for a consideration
of GBP 8.6 million, which was concluded on the 7th of January 2019. This operation on purchase was processing
some 70 000 tonnes of material from various sources with good operational cash flow and earnings of
approximately GBP 4.3 million per annum. This facility was bought with the intent of expanding throughput
and thereby improving financial contribution to the group.

I am pleased that at the time of writing this interim report that throughput is increasing and management has
been effected seamlessly with no interruption.

On 6 August 2018 we announced that we had gained full control of the Kabwe Project increasing our interest
to 87.5 % with the remaining interest being held by BMR, benefits to be received after certain schedule
payments have been repaid to the Company. Jubilee also acquired a 29.01 % shareholding in BMR which took
its beneficial interest up to 91.5 % of the Kabwe Project. During the period, the Kabwe Project has seen
significant work aimed at design and optimisation of processing circuits employing all of the innovation that
our Company is known for.

I am pleased to announce that at this stage we have a very full understanding of the Kabwe Project and are
confident that revenues from Kabwe will be achieved during the fourth quarter of this year. Since acquisition
from BMR and all of our development work, we are convinced that, whilst the zinc and lead project was
potentially a good earnings platform, the contribution of vanadium will significantly enhance our earnings
potential from the Kabwe Project.

We continue to investigate new business development concepts and are investigating a pipeline of projects, a
number of which have the potential to even more significantly increase earnings and the Jubilee Metals profile.
The industry is now aware of our capability and this has led to a number of approaches from major players in
the industry to assist them with their tailings and other secondary deposits.

Colin Bird
Non-Executive Chairman


UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2018

Consolidated Statement of Comprehensive Income for the six months ended 31 December 2018

                                                              Unaudited      Unaudited       Audited
                                                              Group          Group           Group
                                                              6 months       6 months        12 months
                                                              ended 31       ended 31        ended 30
                                                              December       December        June
                                                              2018           2017            2018
                                                              GBP '000       GBP '000        GBP '000

Revenue – operations                                            8 327          5 992         14 139
Cost of sales – operations                                     (4 286)        (3 623)        (8 672)
Gross profit - operations                                       4 040          2 369          5 467
Operating costs                                                (2 662)        (2 636)        (5 417)
Profit/(loss) before taxation and interest                      1 379           (267)            50
Other income                                                       -              25              9
Impairment of intangible assets                                    -               -           (804)
Investment income                                                  14              8             26
Finance costs                                                    (463)          (204)        (1 376)
Share of loss from associates                                    (168)              -          (308)
Profit/(loss) before taxation                                     762           (438)        (2 403)
Taxation                                                           -            -             -
Profit/(loss) for the period                                      762           (438)        (2 403)
Other comprehensive income
- (Loss)/profit on translation of foreign subsidiaries            (460)          367         (2 954)
Total comprehensive profit/(loss)                                  302           (71)        (5 357)
Attributable to:
Owners of the parent:
Profit/(loss) for the period attributable to owners of the         756           (283)       (2 115)
parent
Non-controlling interest
Loss for the period – non controlling interest                       6           (155)         (288)
Profit/(loss) for the period                                       762           (438)       (2 403)
Total comprehensive loss attributable to:
Owners of the parent                                               321             50        (4 892)
Non-controlling interest                                          (19)           (121)         (465)
                                                                   302            (71)       (5 357)
Weighted average number of shares (‘000)                     1 314 013       1 118 361     1 203 479
Earnings/(loss) per share (pence)                                 0.06          (0.025)       (0.18)



Consolidated Statement of Financial Position as at 31 December 2018



                                           Unaudited       Unaudited      Audited
                                           Group           Group          Group
                                           6 months        6 months      12 months
                                           ended 31        ended 31      ended 30
                                           December        December       June
                                           2018            2017         2018
                                           GBP '000        GBP '000     GBP '000
 Assets
 Non-current assets
Property, plant and equipment                   11 578     12 322       10 364
Intangible assets                               44 304     47 890       44 386
Investments in associates                        2 593                   2 761
Other financial assets                             834          -          509
Total non-current assets                        59 309     60 212       58 020

Current assets
Inventories                                      1 432        193        1 306
Current tax receivable                              16         16           16
Trade and other receivables                      4 069      4 067        3 294
Other financial assets                             172          -          425
Cash and cash equivalents                        5 768      2 456        6 376
Total current assets                            11 457      6 732       11 417
Total assets                                    70 766     66 944       69 437

Equity and liabilities
Share capital                                    93 844     87 675       94 065
Reserves                                         21 218     23 794       21 432
Accumulated loss                               (58 302)   (57 583)      (59 058)
Total equity before non-controlling interest     56 760     53 886       56 439
Non-controlling interest                          2 345      2 784        2 364
Total equity                                     59 105     56 670       58 803

Non-current liabilities
Other financial liabilities                      2 036          -        1 622
Deferred tax liability                           5 011      5 323        5 065
Total non-current liabilities                    7 047      5 323        6 687

Current liabilities
Other financial liabilities                      2 630      2 145        1 449
Trade and other payables                         1 984      2 806        2 498
Total current liabilities                        4 614      4 951        3 947
Total liabilities                               11 661     10 274       10 634
Total equity and liabilities                    70 766     66 944       69 437


Consolidated Statement of Changes in Equity as at 31
December 2018

Figures in pound sterling (‘000)                       Share     Merger    Share      Currency      Total       Accumulated        Total         Non-         Total
                                                       capital   reserve   based      translation   reserves    loss               attributable  controlling  equity
                                                                           payment    reserve                                      to parent of  interest
                                                                           reserve                                                 equity
                                                                                                                                   holders
Balance at 30 June 2017                                87 675    23 184       1 337       (1 443)    23 078        (57 262)         53 491        2 867      56 358
Total comprehensive income for the period                   -         -           -       (2 778)    (2 778)        (2 115)         (4 893)       (465)      (5 358)
Issue of share capital net of costs                     7 258         -           -             -          -              -           7 258           -       7 258
Warrants issued                                         (868)         -         868             -        868              -               -           -           -
Options granted                                             -         -         264             -        264              -             264           -         264
Change in ownership – control not lost                      -         -           -             -          -            319             319        (39)         280
Total changes                                           6 390         -       1 132       (2 778)    (1 645)        (1 796)           2 948        504        2 444
Balance at 30 June 2018                                94 065    23 184       2 469       (4 221)    21 432        (59 058)         56 439       2 363       58 802
Total comprehensive income for the period                   -         -           -         (436)      (436)            756             321        (19)         302
Warrants issued                                         (222)         -         222             -        222              -               -          -           -
Change in ownership – control not lost                      -         -           -             -          -              -               -         1             1
Total changes                                           (222)         -         222         (435)      (213)            756             321        (18)         303
Balance at 31 December 2018                            93 843    23 184       2 690       (4 656)    21 218        (58 302)         56 760        2 345       59 105


Consolidated Statement of Cash flow for the six months ended 31 December 2018

                                                              Unaudited    Unaudited        Audited
                                                                Group        Group          Group
                                                               6 months     6 months      12 months
                                                               ended 31     ended 31       ended 30
                                                              December     December            June
                                                                2018         2017           2018
                                                               GBP '000     GBP '000       GBP '000

 Cash flows from operating activities
 Profit/(loss) before taxation                                  762          (439)       (2 403)
 Adjustments for:
 Depreciation and amortisation                                1 381          1 420        3 246
 Impairment of intangible assets                                  -             -           622
 Provisions                                                    (172)            -           174
 Share based payments – Employee costs                            -            382          264
 Results of equity accounted investments                        168             -           308
 Investment income                                              (14)           (8)          (26)
 Finance cost                                                   463            204        1 376
 Working capital changes
       Increase in inventories                                 (126)          (149)      (1 261)
       Increase in receivables                                 (775)          (845)         (72)
       Decrease in payables                                    (514)          (948)        (820)
 Cash generated from/(utilised in) operations                 1 175           (383)        1 407
 Investment income                                               14              8           26
 Finance cost                                                  (463)          (204)        (470)
 Net cash from operating activities                             726           (579)         963
 Cash flows from investing activities
 Purchase of property, plant and equipment                   (2 379)           (99)        (195)
 Sale of property, plant and equipment                             -             -            9
 Investment in associate                                           -             -         (500)
 Loans repaid                                                      -             -         (841)
 Loans received                                                 100              -            -
 Purchase of intangible assets                                 (636)         (259)          (192)
 Net cash used in investing activities                       (2 916)         (358)        (1 719)
 Cash flows from financing activities
 Proceeds from share issues net of costs                           -             -         4 253
 Proceeds from other financial liabilities                     1 595             -         1 920
 Repayment of other financial liabilities                          -        (1 627)       (3 518)
 Net cash generated from/(utilised in) financing activities    1 595        (1 627)        2 655
 Net (decrease)/increase in cash and cash equivalents           (595)       (2 564)        1 899
 Cash and cash equivalents at beginning of the period          6 376         4 636         4 636
 Effects of foreign exchange on cash and cash equivalents        (13)          384          (158)
 Cash and cash equivalents at the end of the period            5 768         2 456         6 376



 NOTES TO THE UNAUDITED INTERIM RESULTS

 1. Basis of preparation
The Group unaudited interim results for the 6 months ended 31 December 2018 have been prepared using
the accounting policies applied by the company in its 30 June 2018 annual report which are in accordance
with International Financial Reporting Standards (IFRS and IFRC interpretations) issued by the International
Accounting Standards Board (“IASB”) as adopted for use in the EU (“IFRS, including the SAICA financial
reporting guides as issued by the Accounting Practices Committee, IAS 34 – Interim Financial Reporting, the
Listings Requirements of the JSE Limited, the AIM rules of the London Stock Exchange and the Companies Act
2006 (UK)). This condensed consolidated interim financial report does not include all notes of the type
normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the
annual report for the year ended 30 June 2018 and any public announcements by Jubilee Metals Group PLC.
All monetary information is presented in the presentation currency of the Company being Great British Pound.
The Group’s principal accounting policies and assumptions have been applied consistently over the current
and prior comparative financial period. The financial information for the year ended 30 June 2018 contained
in this interim report does not constitute statutory accounts as defined by section 435 of the Companies Act
2006. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The
auditor’s report on those accounts was unqualified and did not contain a statement under section 498(2)-(3)
of the Companies Act 2006.

2. Financial review

Earnings per share for the six months ended 31 December 2018 are presented as follows:

                                                                 Unaudited      Unaudited         Audited
                                                                 Group          Group             Group
                                                                 6 months       6 months          12 months
                                                                 ended 31       ended 31          ended 30
                                                                 December       December          June
                                                                 2018           2017              2018
                                                                 GBP '000       GBP '000          GBP '000

 Earnings/(basic loss) for the period                                 756           (283)         (2 115)
 Weighted average number of shares in issue (‘000)              1 314 013       1 118 361       1 203 479
 Earnings/(loss) per share (pence)                                   0.06          (0.03)          (0.18)
 Earnings/(loss) per share (ZAR cents)                               0.99          (0.45)          (3.05)

The Group reported a net asset value of 4.33 pence (2017: 5.07) per share (ZAR 79.56 (2017: ZAR 89.49) cents
per share)) and a net tangible asset value per share of 1.09 (2017: 0.79) pence per share (ZAR 19.92 (2017:
ZAR 13.87 cents per share)).

The total shares in issue as at 31 December 2018 were 1 363 486 million (2017: 1 118 361 million). Other
comprehensive income comprises foreign currency translation differences which can be reclassified to profit
and loss in future.

The Group managed to keep operating costs contained and in line with budget. Costs for the period under
review increased by only 1 % despite a 39 % increase in revenue.

The table below summarises the performance of the different business units as well as the major components
of the Group’s operating costs and for the period under review:

6 months to 31 December 2018
Figures in pound sterling ('000)                Total Group      Operations       Business    Corporate
                                                                                Development
Revenue                                             8,327          8,327             -                 -
Cost of sales                                     (4,286)         (4,286)            -                 -
Gross profit                                        4,040          4,040             -                 -
Operating expenses - cash
Administration and running costs                     (152)          (82)            (22)         (47)
Consulting and professional fees                     (442)          (94)           (102)        (246)
Human resources                                      (580)         (436)            (18)        (126)
Corporate listing costs                               (57)             -               -         (57)
Other expenses                                       (222)         (176)            (11)         (35)
Operating expenses – non-cash
- Amortisation and depreciation                    (1,210)       (1,210)               -               -
Total operating costs                              (2,662)       (1,997)           (153)        (511)
Profit/(loss) before interest, impairments          1,379         2,043            (153)        (511)
and other income
- Net interest paid                                  (449)         (315)               -        (134)
- Share of associates loss                           (168)            -                -        (168)
Profit/(loss) before taxation                          762        1,728            (153)        (813)

6 months to 31 December 2017
Figures in pound sterling ('000)              Total Group     Operations        Business    Corporate
                                                                              Development
Revenue                                             5,992          5,992              -             -
Cost of sales                                     (3,598)        (3,598)              -             -
Gross profit                                        2,394          2,394              -             -
Operating expenses - cash                           (834)          (219)          (222)         (393)
Administration and running costs                     (99)            (6)           (53)          (40)
Consulting and professional fees                    (276)           (12)           (65)         (199)
Human resources                                     (389)         (195)           (101)          (93)
Corporate listing costs                              (37)             -               -          (37)
Other expenses                                       (34)           (6)             (3)          (25)
Operating expenses – non-cash                     (1,802)        (1,070)          (350)         (382)
- Amortisation and depreciation                   (1,420)        (1,070)          (350)             -
- Options                                           (382)              -              -         (382)
Total operating costs                             (2,636)        (1,289)          (572)         (775)
Loss before interest and other income               (242)         1,105           (572)         (775)
 - Net interest paid                                (196)         (204)               -             8
(Loss)/profit before taxation                       (438)           901           (572)         (767)



Year ended 30 June 2018
Figures in pound sterling ('000)             Total Group     Operations         Business        Corporate
                                                                               Development
Revenue                                           14,139         14,139                -            -
Cost of sales                                     (8,672)        (8,672)               -            -
Gross profit                                        5,467          5,467               -            -
Operating expenses - cash                         (1,916)        (1,055)            (52)        (810)
Administration and running costs                    (184)           (42)            (16)        (126)
Consulting and professional fees                    (518)          (185)            (30)        (303)
Human resources                                     (818)          (619)             (3)        (195)
Corporate listing costs                             (137)              -               -        (137)
Other expenses                                      (259)          (208)             (2)         (49)
Profit/(loss) before non-cash operating             3,551          4,412            (52)        (810)
expenses and interest
Operating expenses – non-cash
   - Amortisation and depreciation                (3,237)        (2,907)           (330)         -
   - Options                                        (264)             -               -         (264)
Profit/(loss) before interest, impairments            50           1,505           (381)      (1,073)
and other income
   - Net interest paid                            (1,341)        (1,341)               -          -
   - Impairments                                    (804)              -               -        (804)
   - Share of associates loss                       (308)              -               -        (308)
Total operating costs                             (5,417)        (3,962)          (381)       (1,073)
    (Loss)/profit before taxation                 (2,403)            164          (381)       (2,185)
 

3. Unaudited results

These interim results have not been reviewed or audited by the Group’s auditors.

4. Commitments and contingencies

There are no material contingent assets or liabilities as at 31 December 2018 (2017: nil).

5. Dividends

No dividends were declared during the period under review (2017: nil).

6. Business segments

In the opinion of the Directors, the operations of the Group companies comprise four reporting segments for
the period under review, being:

• the recovery of metals from surface mine waste and tailings (“Operations”);
• the evaluation of various mine waste opportunities and the development of suitable metal recovery
  processes to diversify across multiple commodities and in different countries including platinum, chrome,
  cobalt, copper, zinc, lead, vanadium and gold to hedge income risk and to align with global trends
  (“Business Development”);
• the exploration and mining of PGE’s and associated metals (“Exploration and mining”); and
• the parent company operates a head office based in the United Kingdom which incurs
  administration and corporate overhead costs (“Corporate”).

Segment report for the 6 months ended 31 December 2018

Figures in pound sterling (‘000)               Operations        Business     Corporate   Total Group
                                                                Development


 Total revenues                                     8,324             3           -          8,327
 Cost of sales                                    (4,226)             -           -         (4,226)
 Forex losses                                       (167)             0         (31)          (198)
 Share of loss from associates                          -             -        (169)          (169)
 Profit/(loss) before taxation                      1,691          (116)       (813)           762
 Taxation                                               -             -           -              -
 Profit/(loss) after taxation                       1,691          (116)       (813)           762
 Interest received                                     11              0          3             14
 Interest paid                                      (326)             (0)      (137)          (463)
 Depreciation and amortisation                    (1,210)              -          -         (1,210)
 Total assets                                    (25,720)        (39,938)     (5,108)      (70 766)
 Total liabilities                                  4,392          4,639       2,630        11,661
                                                                                                          
Segment report for the 6 months ended 31 December 2017

 Figures in pound sterling (‘000)              Operations       Business        Corporate    Total Group
                                                               Development

 Total revenues                                    5 992               -            -         5 992
 Cost of sales                                   (3 623)               -            -        (3 623)
 Forex profits/(losses)                               14               -          (17)           (3)
 Profit/(loss) before taxation                       367             (31)        (775)         (439)
 Taxation                                              -               -            -             -
 Profit/(loss) after taxation                        367             (31)        (775)         (439)
 Interest received                                     8               -            -             8
 Interest paid                                     (204)               -            -          (204)
 Depreciation and amortisation                   (1 420)               -            -         (1 420)
 Total assets                                   (24 374)         (41 694)        (876)       (66 944)
 Total liabilities                                 4 409            4 651       1 214         10 274

Segment report for the year ended 30 June 2018


                                               Operations       Business        Corporate    Total Group
 Figures in pound sterling (‘000)                              Development

 Total revenues                                   14 139                -              -        14 139
 Cost of sales                                    (8 672)               -              -        (8 672)
 Forex losses                                        (93)               -            (28)         (121)
 Share of loss from associates                      (308)               -              -          (308)
 Loss before taxation                               (953)           (380)         (1 070)       (2 403)
 Taxation                                               -               -              -             -
 Loss after taxation                                (953)           (380)         (1 070)       (2 403)
 Interest received                                     23               -              3             26
 Interest paid                                    (1 376)               -              -        (1 376)
 Depreciation, amortisation and                   (2 898)           (339)              -        (3 237)
 impairments
 Total assets                                    (25 556)         (39 341)        (4 540)      (69 437)
 Total liabilities                                  5 394           4 682            558        10 634

7. Share Capital and warrants

Share Capital

The Company issued 52 493 438 new Jubilee shares at a price of 2.5 pence per share new ordinary shares
during the period under review. Refer note 9.1 for details of the placing. Following the issue the Company's
total issued share capital comprised 1 363 486 229 Ordinary Shares at the period end.

Post the period under review the Company issued 491 814 444 new Jubilee ordinary shares at 2.25 pence per
share to raise GBP 11.07 million (ZAR 212.57 million) before expenses. Refer note 9.4 for details of the placing.
Following the placing, the Company's total issued share capital comprised 1 855 300 673 Ordinary Shares as at
the date of this report.

Warrants

At the period end the Company had the following warrants outstanding:

                         Number of                      Subscription                       Volatility Spot at Issue
                          warrants      Issue date      price (pence)      Expiry date        %        date pence

                          8 244 825     2016-03-23         4.725           2019-03-23       83.81         2.94
                         27 777 780     2018-01-19         6.120           2023-01-19       83.90         3.83
                         29 166 665     2018-01-19         6.120           2023-01-19       83.90         3.83
                          5 555 555     2018-01-19         6.120           2023-01-19       83.90         3.83
                          2 777 778     2018-01-09         6.120           2019-01-09       83.90         3.83
                         12 944 984     2018-12-28         3.863           2023-01-19       58.17         2.40
                         19 417 476     2018-12-28         3.863           2023-01-19       58.17         2.40
At period end           107 358 118

Issued post
                           1 473 055    2019-03-21         3.800           2021-03-21       58.17         2.25
period end

Expired post
                         (8 244 825)    2016-03-23         4.725           2019-03-23       83.81         2.94
period end

At the date of
                        100 586 348
this report


8. Going concern

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

9. Events subsequent to reporting date

9.1        Acquisition of Chemstof and PlatCro

As announced on 10 December 2018, Jubilee executed a sale and purchase agreement to acquire all of the
chrome beneficiation assets including plant, equipment, intellectual property and all rights to the existing
surface material estimated in excess of 1. 45 million tonnes ("Assets") owned by PlatCro Minerals (Pty) Ltd
("PlatCro") and associated companies ("the Target"), for a combined consideration of GBP 8.26 million (US$
10.5 million) ("the Acquisition"). The business is acquired free from any historic liabilities. The Target currently
generates earnings of approximately GBP 4.3 million (US$ 5.5 million).

The Assets acquired include:
- Plant and equipment offering processing capacity in excess of 70 000 tonnes per month
- All associated property including all rights to existing surface material
- All stock and materials accolated with operating the business

The aggregate purchase price for the Acquisition was settled in full by Jubilee on 7 January 2019, save for the
amount of GBP 0.67 million (US$ 0.85 million) which will become payable upon successful registration of the
property into Jubilee or its nominee's name. Jubilee took ownership and operational control of the Target on
7 January 2019. The purchase price was funded through a secured project loan of US$ 6 million, a cash
payment of US$ 2.83 million and the issue of 52,493,438 new Jubilee shares at a price of 2.5 pence per share.

9.2        Acquisition of Sable Zinc Kabwe Limited (Zambia)

As announced on 21 March 2019, Jubilee executed the acquisition of Sable Zinc Kabwe Limited in Zambia from
two subsidiaries of Glencore Plc (“Glencore”) for a consideration of GBP 9.16 million (US$ 12 million) (ZAR
175.97 million) (the “Acquisition”). The Acquisition is funded through a combination of debt and equity.

The consideration for the Acquisition is payable in stages as follows:

- US$ 6 million within 5 business days after fulfilment or waiver of the conditions precedent to the share
  purchase agreement (“Closing Date”);
- US$ 3 million on the earlier of the date falling 30 days after the date of completion of the
  conversion of the Sable Zinc Kabwe plant to a zinc processing plant and the date falling 6 months after the
  Closing Date (“Second Instalment”); and
- US$ 3 million on the earlier of the date falling 30 days after the date of commencement of
  commercial production and the date falling 6 months after the Second Instalment.

The Acquisition is conditional upon the fulfilment of the following conditions precedent as contained in the
agreement:

- Approval and/or clearance of the transaction under the Zambian Competition Act; and
- Conclusion of an acid supply agreement for the sale of acid produced at the plant by Sable Zinc Kabwe to
  Glencore until such time as such acid is required for the operations of Sable Zinc Kabwe in the production
  of saleable products.

9.3        Loan funding for Kabwe

As announced on 21 March 2019, Jubilee, through its wholly owned subsidiary Braemore Holdings (Mauritius)
Pty Ltd, successfully secured debt funding of GBP 6.11 million (US$ 8 million) from ACAM LP (“ACAM”), ACAM
is an affiliate of two sophisticated investors based in London and New York. The funding is secured over
Jubilee’s Zambian assets, bears interest at 12 % per annum and is repayable in full 36 months from the date
of execution of the funding agreement.

At any time that the loan is outstanding, ACAM may at its absolute discretion, by conversion notice, elect to
convert the loan and all accrued but unpaid interest into 5 per cent unsecured convertible loan notes with a
conversion price of 2.81 pence (ZAR 53.98 cents) (“Subscription Price”) and a maturity date, which falls on the
third anniversary of the Closing Date.

During the loan period, Jubilee may notify ACAM of its intention to prepay the whole of the loan balance by
prepayment notice. On the date of any prepayment Jubilee will issue warrants to ACAM to a value equal to
50 per cent of the amount of the loan and all accrued but unpaid interest thereon divided by the Subscription
Price.

Jubilee and ACAM have agreed to work together, without obligation from either party, to explore funding
solutions for future expansion projects outside of South Africa as opportunities arise.

9.4        Equity Placing

As announced on 21 March 2019, the Company has successfully completed a placing of 491,814,444 new
ordinary shares of 1 pence each ("Ordinary Shares") in Jubilee (the "Placing Shares") at a price of 2.25 pence
(ZAR 43.22 cents) per share to raise approximately GBP 11.07 million (ZAR 212.57 million at current exchange
rates) before expenses.

The placing includes the issuance of 1 473 055 warrants priced at a premium of 50 per cent of the placing
price or 3.38 pence (ZAR 64.83 cents) per warrant share valid for a period of 2 years.

Following the placing, the Company's total issued share capital will comprise 1 855 300 673 Ordinary Shares.

10.        Interim report

Printed copies of the interim report are available to the public free of charge from the Company at 1st Floor
7/8 Kendrick Mews London SW7 3HG, United Kingdom Tel: +44 (0) 20 7584 2155 Fax: +44 (0) 20 7589 7806
and from Jigsaw Office Park, Ground Floor, Support Services Place, 7 Einstein Street, Highveld Techno Park,
Centurion, 0157, Gauteng during normal office hours for 30 days from the date of this report and are also
available for download from www.jubileemetalsgroup.com.

The financial information in this announcement is unaudited.

Contacts

Jubilee Metals Group PLC
Colin Bird/Leon Coetzer
Tel +44 (0) 20 7584 2155 / Tel +27 (0) 11 465 1913

Nominated Adviser
SPARK Advisory Partners Limited
Andrew Emmott/ Vassil Kirtchev
Tel: +44 (0) 203 368 3555

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

Registered offices:
United Kingdom
1st Floor 7/8 Kendrick Mews,
London SW7 3HG, United Kingdom
Tel: +44 (0) 20 7584 2155
Fax: +44 (0) 20 7589 7806

South Africa
Jigsaw Office Park,
Ground Floor,
Support Services Place
7 Einstein Street, Highveld Techno Park,
Centurion, 0157
Tel: +27 (0) 11 465 0913
 ax: +27 (0) 11 465 1895

Transfer secretaries:
Computershare Investor Services Proprietary Limited
70 Marshall Street, Johannesburg 2001
PO Box 61051, Marshalltown 2107

Company Secretary:
Link Company Matters Limited
34 Beckenham Road
Beckenham, Kent, BR3 4TU




                                                  Annexure 1

Reconciliation of Headline earnings per share                    Group          Group           Group
                                                                 Unaudited      Unaudited       Audited
                                                                 6 months to    6 months to     12 months to
                                                                 31 December    31 December     30 June 2018
                                                                 2018           2017
                                                                 GBP’000        GBP’000         GBP’000
Headline earnings per share comprises the following:
Earnings/(loss) for the period attributable to ordinary              756           (283)        (2 115)
shareholders
Share of impairment loss of equity accounted associate                 -               -            93
Tax effect of impairment of loss of equity accounted associate         -               -           (26)
Impairment of intangible assets                                        -               -            622
Tax effect of impairment of intangible assets                          -               -          (174)
Headline earnings/(loss)                                             756            (283)        (1 600)

Weighted average number of shares in issue (‘000)               1 314 013       1 118 361      1 203 479
Headline earnings/(loss) per share (pence)                           0.06          (0.02)         (0.13)
Headline earnings/(loss) per share (cents)                           0.99          (0.42)         (2.31)

Average conversion rate used for the period under review            0.0579         0.0566         0.0576
GBP:ZAR

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