Jubilee Metals Regulatory News (JLP)

RNS Number : 7857T

Jubilee Platinum PLC

04 October 2010

 

Incorporated in England and Wales

(Registration number: 4459850

Linked unit code: JBL

ISIN: GB0031852162

 

Jubilee Platinum Plc

("Jubilee" or "the Company" or "the Group")

 

Audited abridged results for the 12 months ended 30 June 2010

 

Commentary

 

The year under review has been the most significant since the founding of the Company.

 

Highlights include: -

 

·; The completion of the Braemore acquisition

·; Commercialisation of ConRoast

·; Successful six months operational trial of the Mintek ConRoast smelter under commercial conditions

·; Commencement of Tjate feasibility study

·; Negotiations to purchase Thos Begbie smelting site at Middleburg

·; Decision to drill in northwest Madagascar

·; Positive evaluation of the Leinster Nickel dump in Western Australia

The absorption of Braemore into Jubilee was carried out successfully and the enlarged company will soon be accepted as an exploration to metals entity. This total capability provides Jubilee with a unique position in the emerging platinum company sector. No other mining sector company in our peer group can claim total capability and Jubilee's development efforts have continually highlighted the benefits of the enlarged Group.

 

The six month smelter trial for Northam utilising the Mintek ConRoast smelter was a resounding success resulting in the signing of a Memorandum of Understanding dated June 2010 to build a 5 megavolt ampere ("MVA") furnace in partnership with Northam.

 

Jubilee is in the process of acquiring the Thos Begbie smelter complex. The agreement was announced on 4 May 2010 and finalised on 20 September 2010. This acquisition will enable the Company to site its first two furnaces and gives it the benefit of an environmental permit, precious metal trading license and 10 MVA of independent gas fired power generation. An additional benefit is the existing smelting business utilising the furnaces that will bring us into early cash flow from diverse businesses including chrome, stainless steel and manganese treatment.

 

Subsequent to the year end the Company purchased a 51% stake in the power generation company Power Alt (Pty) Ltd. The net result of this was power independence, an off-set against our power cost and the opportunity to expand and develop a stand-alone gas fired power generation business.

 

The Tjate project, having proved a major resource, moved on to the next stage of feasibility study. Snowden, the international mining industry consultant has been awarded a contract to complete an independent technical and financial study. This study is progressing favourably and the Company is drilling further boreholes to tighten up the statistical reliability of a key development area.

 

The joint venture with BHP Billiton is advancing and Bateman Engineering Projects of South Africa has been awarded a contract to complete the financial and technical study for submission and discussion with our joint venture Partners.

 

The Company has elected to drill up to a further 5 holes in the Ambodilafa project in southern Madagascar. This decision was based on very promising geochemical data.

 

The loss for the year after taxation was £2.2 million (2009: £6.8 million). The loss per share has decreased from 3.68 pence in 2009 to 1.35 pence in 2010.

 

Administrative expenses amounted to £4.5 million (2009: £2.4 million) and include overheads and corporate costs attributable to the business. A share-based payment charge of £1.3 million is included in the Group Statement of Comprehensive Income in line with the requirements of IFRS2.

 

The platinum price has been very resilient during the period and we expect to see a marked increase in prices as car production gets back to normal levels. Purchasing managers are beginning to restock and this will put upward pressure on prices as the supply side of the industry addresses its challenges of mining, smelting and cost management. The Board are of the opinion that the commercialisation of ConRoast will enable the producers to address UG2 smelting issues. This belief is now shared by the majority of the industry technical 'insiders'.

 

Since the year end the Company has begun making significant headway into all aspects of Con Roast smelting to include possible acquisition of own feed, toll smelting for majors, dump retreatment, own and third party applications and provision of smelters for potential new platinum mines. The Company anticipates positive cash flow towards year end with ConRoast roll out continuing aggressively into next year.

 

The Board is confident that technical issues with all the Group's projects are defined, and understood. This puts Jubilee in an envious position to enjoy all of the advantages that global growth is likely to bring.

 

 

Board Changes

On 1 August 2010 the following changes were made to the board:

 

·; Colin Bird stepped down as Chief Executive Officer and was appointed Non-Executive Chairman

·; Malcolm Burne stepped down as Non-Executive Chairman

·; Leon Coetzer was appointed Chief Executive officer and relinquished his role as MD Smelting and Refining

·; Eduard Victor was appointed Finance Director

·; Andrew Sarosi relinquished his role as Finance Director and continued as an Executive Director

 

Dividend

No dividend declared for the period under review.

 

Posting of the Annual Report and Notice of Annual General Meeting

The annual report will be posted to shareholders on 5 October 2010 and will be available to view on the Company's website: www.jubileeplatinum.com

 

The Annual General Meeting will be held at the Pelham Hotel, 15 Chromwell Place, London SW7 2LA on Friday, 26 November 2010 at 10h00 am.

 

 

 

For further information please contact:

 

 

Colin Bird/Leon Coetzer

 

Jubilee Platinum plc

 

Tel + 27 83 455 7749 Tel +44 (0) 20 7584 2155

 

 

Andrew Sarosi

 

Jubilee Platinum plc

 

Tel +44 (0) 1752 221937

 

Matthew Robinson/Rose Herbert

 

finnCap Ltd

 

Tel +44 (0) 20 7600 1658

 

 

Leonard Eiser /Sharon Owens

 

Sasfin Capital

 

Tel +27 (0) 11 809 7500

 

 

Michael Kinirons/Nick Rome

 

Bishopsgate Communications Ltd

 

Tel +44 (0) 20 7562 3350

 

 

 

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
		Audited Year ended 30 June 2010   £'000	Audited Year ended 30 June 2009 Restated £'000
ASSETS
Non-current assets
Intangible assets		80,706	40,014
Property, Plant and equipment		112	78
Total non-current assets		80,818	40,092
Current assets
Trade and other receivables		8,359	474
Inventory		682	-
Cash and cash equivalents		12,997	7,641
Total current assets		22,038	8,115
TOTAL ASSETS		102,856	48,207
LIABILITIES
Non-current liabilities
Deferred tax		(16,575)	(9,000)
Current liabilities
Contingent / deferred consideration		(1,400)	(915)
Trade and other payables		(1,731)	(549)
Total current liabilities		(3,131)	(1,464)
TOTAL LIABILITIES		(19,706)	(10,464)
NET ASSETS		83,150	37,743
EQUITY
Share capital		2,545	1,184
Share premium		56,977	33,855
Merger reserve		23,184	4,970
Share based payments reserve		3,005	1,678
Currency translation reserve		10,387	6,776
Retained earnings		(12,948)	(10,720)
Equity interests of minorities		-	-
TOTAL EQUITY		83,150	37,743

 

 

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 

Audited Year ended 30 June 2010   £'000   Audited Year ended 30 June Restated 2009 £'000     Revenue 950 -   Cost of Sales (458) -     492 -     Impairment loss on intangibles - (2,909)   Negative goodwill 1,615 -   Other administrative expenses (4,503) (2,410)       Total administrative expenses (2,888) (5,319)       Operating loss (2,396) (5,319)     Finance income 168 542       Loss before tax expense (2,228) (4,777)   Tax - -   Total loss for the year (2,228) (4,777)     Attributable to Equity holders of the parent (2,228) (4,201)   Non-Controlling interest - (576)     OTHER COMPREHENSIVE INCOME   Exchange gain on translation of foreign subsidiaries  3,611 6,868     Total comprehensive income for the year 1,383 2,091       Attributable to Equity holders of the parent 1,383 2,667   Non-Controlling interest - (576)     Headline Earnings per share   Basic and diluted loss per share (pence) (1.35) (3.68)       CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
		Audited Year  ended 30 June 2010 £'000	Audited Year ended 30 June 2009 Restated £'000
Cash flows from operating activities
Loss for the year		(2,228)	(4,777)
Finance income		168	542
Depreciation		74	34
Share based payment		1,327	499
Impairment of intangibles		-	2,909
Amortisation of intangibles		327	-
Profit on sale of property, plant and equipment		(11)	(5)
Decrease in inventory		241	-
Decrease / (Increase) in receivables		1,128	3,465
(Decrease) / Increase in payables		(10,454)	1,182
Net cash used in operating activities		(9,428)	3,849
Cash flows from investing activities
Acquisition of subsidiary, net of cash acquired		223	(790)
Proceeds from sale of property, plant and equipment		47	-
Deposit account for business combination		(7,652)	-
Purchase of exploration assets		-	(4,692)
Purchase of intangible fixed assets		(888)	-
Purchase of property, plant and equipment		(25)	(10)
Net cash used in investing activities		(8,295)	(5,492)
Cash flows from financing activities
Issue of shares and warrants		23,992	2
Issue costs		(1,074)	-
Net cash generated from financing activities		22,918	2
Net increase/(decrease) in cash and cash equivalents		5,195	(1,641)
Cash and cash Equivalents at beginning of the year		7,641	9,234
Effects of foreign exchange on cash and cash equivalents		161	48
Cash and cash equivalents at the end of the year		12,997	7,641
			-
NOTES TO THE FINANCIAL RESULTS     BASIS OF PREPARATION   The financial statements are presented in pounds sterling, rounded to the nearest thousand.   These financial statements have been prepared in accordance with IFRS as adopted for use in the European Union (EU) ("IFRS") IAS 34, Interim Financial Reporting, AC 500, the JSE Listings Requirements, and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS.   The accounting policies have, unless otherwise stated, been applied consistently to all periods presented in these consolidated financial statements. The impact of the prior period restatements is disclosed in detail in note 24 to the full audited financial statements.   Audit Report The audited results for the year ended 30 June 2010 have been audited by BDO LLP and BDO South Africa Incorporated Chartered Accountants and Registered Auditors and a copy of their unqualified audit report is available for inspection at the Company`s registered office: 4th Floor, 2 Cromwell Place, London SW7 2JE.   FINANCIAL INSTRUMENTS   Loans and receivables Other financial liabilities Total £'000 £'000 £'000 30 June 2010 Assets as per statement of financial position Trade and other receivables 8,359 - 8,359 Cash and cash equivalents 12,997 - 12,997   21,356 - 21,356 Liabilities as per statement of financial position Trade and other payables - 1,260 1,260 - 1,260 1,260
Loans and receivables Other financial liabilities Total £'000 £'000 £'000 30 June 2009 Assets as per balance sheet Trade and other receivables 474 - 474 Cash and cash equivalents 7,641 - 7,641 8,115 - 8,115 Liabilities as per balance sheet Trade and other payables - 504 504 - 504 504

Business segments

In the opinion of the Directors, the operations of the Group companies comprise three business segments, being

 

·; the evaluation and development of PGM smelters utilising exclusive commercialisation rights of the ConRoast smelting process, located in South Africa ("Evaluation and Development");

·; the evaluation of the reclamation and processing of sulphide nickel tailings at BHP Billiton's Leinster, Kambalda and Mount Keith properties in Australia ("Nickel tailings"); and

·; development of Platinum Group Elements (PGE's) and associated metals ("PGE development").

 

The Parent Company operates a head office based in the United Kingdom which incurred certain administration and corporate costs. The Group's operations span 5 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 in the Group financial statements. Mauritius and Madagascar do not meet the qualitative thresholds under IFRS 8 consequently no separate reporting is provided.

 

	South Africa	Australia	South Africa
	Evaluation and development	Nickel tailings	PGE development	Corporate (Unallocated)	Total
	Year ended	Year ended	Year ended	Year ended	Year ended
	30 June	30 June	30 June	30 June	30 June
	2010	2010	2010	2010	2010
	£'000	£'000	£'000	£'000	£'000
Total revenues	950	-	-	-	950
Loss before and after taxation	(301)	1,370	(129)	(3,168)	(2,228)
Total assets	61,412	24,892	11,419	5,133	102,856
Total liabilities	(11,554)	(6,496)	-	(1,656)	(19,706)

 

	South Africa	Australia	South Africa
	Evaluation and development	Nickel tailings	PGE development	Corporate (Unallocated)	Total
	Year ended	Year ended	Year ended	Year ended	Year ended
	30 June	30 June	30 June	30 June	30 June
	2009	2009	2009	2009	2009
	£'000	£'000	£'000	£'000	£'000
Total revenues	-	-	-	-	-
Loss before and after taxation	-	-	(270)	(4,507)	(4,777)
Total assets	46,800	-	1,334	73	48,207
Total liabilities	(9,000)	-	(467)	(997)	(10,464)

 

 

 

			Audited Year  ended 30 June 2010   £'000	Audited Year ended 30 June 2009 Restated £'000
This has been arrived at after charging/(crediting):
Auditor's remuneration (current auditor)
Statutory audit service -group			44	-
Auditor's remuneration (previous auditor)
Statutory audit service -group			-	45
Tax compliance fee			-	4
Other fees			-	5
Rentals under operating leases - land and buildings			-	15
Depreciation			74	34
Amortisation			327	-
Directors emoluments			342	168
Share based payments			1,328	499
Impairment of intangible assets			-	2,909

 

LOSS PER SHARE AND HEADLINE LOSS PER SHARE

 

The loss for the year attributed to shareholders is £2.3 million (2009: loss £4.2 million). This is divided by the weighted average number of ordinary shares in issue calculated to be 162,951,035 (2009: 113,277,650)

 

The fully diluted loss per share is based on the loss for the financial year divided by the weighted average number of shares and potential shares being 164,916,000 (2009: 113,921,000) in issue during the year. As the options are non-dilutive, no diluted loss per share has been calculated.

			Audited Year  ended 30 June 2010 £'000	Audited Year ended 30 June 2009 £'000
Ordinary shares (weighted average)			162,951	113,278
Effect of options issued at fair value (weighted average)			1,965	644
			164,916	113,922

 

RECONCILIATION OF HEADLINE LOSS		2010     £'000	2009 Restated £'000
Loss attributable to Jubilee Platinum Plc shareholders		(2,228)	(4,201)
Impairment of assets		-	2,909
Loss on disposal of foreign subsidiary		-	14
Loss on disposal of plant and equipment		-	6
Headline loss		(2,228)	(1,272)
Headline loss per share (pence)		(1.35)	(1.12)
Diluted loss earnings per share (pence)		(1.35)	(3.70)

 

SHARE CAPITAL

 

Authorised

			Audited Year  ended 30 June 2010 £'000	Audited Year ended 30 June 2009 £'000
500,000,000 Ordinary shares of 1p each			5,000	5,000

 

Allotted, called up and fully paid

			Audited Year  ended 30 June 2010 £'000	Audited Year ended 30 June 2009 £'000
254,463,290 Ordinary shares of 1p each (2009: 118,374,269)			2,545	1,184

 

During the period the Company issued the following Ordinary 1 pence shares:

 

Date	Issue Price	Number of Shares	Nominal Value £'000
1 July 2009	Opening balance	118,374,269	1,184
16 July 2009	Placing at 36p per share	1,775,985	18
7 August 2009	Purchase of Tjate Hurdle 2 interest at 10.59p per share	4,960,978	50
7 August 2009	Purchase of KPlats interest	3,896,205	39
21 September 2009	Placing at 32.5p per share	6,000,000	60
9 November 2009	Placing at 30p per share	44,166,666	442
9 November 2009	Purchase of Braemore interest at 49.33p per share	49,900,908	499
8 December 2009	Settlement of fees at 31.52p per share	475,911	5
19 January 2010	Settlement of fees at 35p per share	137,330	1
7 February 2010	Exercise of options at 15.81p per share	87,615	1
19 May 2010	Exercise of options at 20p per share	45,000	-
19 May 2010	Exercise of options at 28p per share	400,000	4
17 June 2010	Placing at 33p per share	24,242,423	242
		254,463,290	2,544

 

 

The following described the nature and purpose of each reserve within owners' equity:

 

Reserve	Description and Purpose
Share premium	Amount subscribed for share capital in excess of nominal value.
Merger reserve	Reserve created on issue of shares on acquisition of subsidiaries in prior years.
Share based payments reserve	Reserve created for equity settled share based payments to employees and consultants.
Foreign exchange reserve	Cumulative translation differences of foreign currency non monetary assets and liabilities.
Retained losses	Cumulative net gains and losses recognised in the consolidated income statement.

 

 

For and on behalf of the board

 

 

Chief Executive Officer Finance Director

 

04 October 2010

Johannesburg

 

Sponsor

Sasfin Capital

(a division of Sasfin Bank Limited)

 

DIRECTORS Malcolm Burne (Non-executive Director)

Dr M Phosa (Non-executive Director)

Colin Bird (Chief Executive Officer)

Leon Coetzer (Executive Director)

Andrew Sarosi (Executive Director)

Chris Molefe (Non-Executive Director)

Eduard Victor (Appointed as Financial Director with effect of 1 August 2010

 

 

 

SECRETARY Capita Company Secretarial Services

Fusion Corporate Secretarial Services (Pty) Ltd (SA) (Represented by Melinda van den Berg

REGISTERED OFFICE United Kingdom South Africa

4th Floor Pinewood Office Park

2 Cromwell Place 33 Riley Street

London SW7 2JE Woodmead

 

AUDITORS United Kingdom South Africa

BDO LLP BDO South Africa Incorporated

55 Baker Street 13 Wellington Road

London W1U 7EU Parktown

United Kingdom Johannesburg, 2193

 

 

 

 

 

 

 

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