Jubilee Metals Regulatory News (JLP)

26 Mar 2007 07:01

Jubilee Platinum PLC26 March 2007 JUBILEE PLATINUM PLC ("Jubilee" or "the Company") Interim Results for the six months ended 31 December 2006 Highlights • Agreement signed to purchase a further 28% interest in the Tjate project, South Africa, taking equity holding to 63% subject to approval by the Department of Minerals and Energy. • Significant joint venture and financing agreements concluded with Impala Platinum, TransAsia Minerals and Mitsubishi Corporation • Good results returned from Londokomanana and Lavatrafo projects in Madagascar demonstrating high potential for nickel/copper/PGM resources • Jubilee shares admitted for trading on the main board of the JSE Limited Colin Bird, Chief Executive, commented "It has been a busy period for Jubilee aswe have continued to strengthen our operational and financial positions throughour joint ventures and with our recent listing on the JSE Limited. We are verywell positioned to continue exploration and development at our projects in SouthAfrica and Madagascar and we now have important partnerships in place withImpala Platinum and TransAsia Minerals. We look forward to working with them andto reporting positive developments in 2007 on all fronts." For further information please contact: Colin Bird Cathy Malins /Annabel LeatherJubilee Platinum plc Parkgreen Communications LtdTel +44 (0) 20 7584 2155 Tel +44 (0) 20 7851 7480 Chairman's Statement During the period under review the Company has again made significant progressacross its portfolio of attractive projects in South Africa and Madagascar. The Company's flagship Tjate project is strategically located in South Africa'sBushveld complex, a geological system unmatched globally, which produces 80% ofthe world's platinum. This area is currently undergoing a period ofconsolidation as the major operators look to increase their platinum reserves.Drilling at Tjate once again returned positive results consistent withhistorical performance, and demonstrating uniformity and reliability of widthsand grade. The Company announced on 12 December 2006 that it had entered into an agreementto purchase a further 28% interest in the Tjate project in two tiers of 13% and15% respectively, which would increase Jubilee's equity holding to 63%.Completion is subject to approval from the South African Department of Mineralsand Energy and the South African Reserve Bank. In September 2006, Jubilee's wholly owned subsidiary in South Africa, WindsorPlatinum Investments (Proprietary) Ltd ("Windsor"), entered into a convertibleloan note instrument with Mitsubishi Corporation for US$16 million. An initialinvestment of US$4 million has already been made. The loan notes bear nointerest and are convertible into Windsor ordinary shares within two years ofissue. Certain conditions have to be satisfied for the loan to be drawn down. In Madagascar, our Londokomanana and Lavatrafo projects continued to return goodresults, demonstrating high potential for nickel/copper/platinum group resourceswith wide intervals and good lateral potential. During the period under review, the Company concluded a significant jointventure agreement with TransAsia Minerals Limited, providing US$10 million offunding over a three year period for the Londokomanana and Itsindro nickel/copper projects in Madagascar. This funding will allow the Company to exploreaggressively recently defined electromagnetic geophysical anomalies, which werealso supported by strong soil geochemistry. On 7 December 2006, Jubilee shares were admitted for trading on the main boardof the JSE Limited. The Company decided to dual list its shares as a result ofprogress of Tjate and a belief that South African investors should be given theopportunity to invest in the Company's emerging platinum portfolio. Also, thedirectors believe that further consolidation in the South African platinumsector is inevitable and that this dual listing will facilitate Jubilee'sparticipation. The interim accounts for the six months ended 31 December 2006 have beenprepared under International Financial Reporting Standards now being adopted forall listed companies. This has led to the re-statement of certain figures forthe six months ended 31 December 2005. The financial results show an operatingloss of £571,256 for the current period compared to an operating loss of£336,484 for the comparative period ended 31 December 2005. Higher levels ofactivity during the period and a charge of £210,895 in relation to qualifyingshare options in issue, in accordance with the requirements of IFRS2, were thekey reasons for the higher loss posted in the current period. Generally, metals have retained their high prices with both nickel and platinumin particular showing continued robust fundamentals. Copper has shown morevolatility but still remains buoyant. These strong price fundamentals positionthe Company well, with its mix of precious and base metals. South Africa continues to demonstrate sound political stability and economicgrowth and in Madagascar, recent elections conclusively returned MarcRavalomanana as the President for a further period of four years. The miningsector continues to evolve in Madagascar, with the major mining companies takinga keen interest in the potential of this largely unexplored country. The Company, with its broad and maturing portfolio, is well placed to enjoy theopportunities which the global environment offers for successful juniorexplorers. In particular, South Africa offers a major opportunity forshort-term enhancement of shareholder value. The Board looks forward to a second half-year showing further good progress onall our projects and corporate activities. M.A. BurneChairman Consolidated Income Statement Six months ended Year ended 31 Dec 2006 31 Dec 2005 30 Jun 2006 Restated* Restated* Unaudited Unaudited Audited £000' £000' £000' RevenueOther income 75 0 0Administration expenditure (646) (336) (970)Loss from operations (571) (336) (970) Finance cost (60) 0 (51)Finance income 157 1,152 283(Loss)/profit before income tax expense (474) 816 (738)Income tax expense 0 0 0(Loss)/profit for the period after income tax expense (474) 816 (738) Profit attributable to minority interest 15 5 121 (Loss)/profit attributable to members of Jubilee Platinum Plc (459) 821 (617) Headline (loss)/profit for the period (459) 821 (617) Number of shares in issue 79,138,974 77,370,271 78,648,974Weighted average number of shares in issue 78,884,602 70,696,060 74,355,295Diluted weighted average number of shares in issue 81,148,888 72,230,819 76,411,257Basic profit/(loss) per share (pence) (0.58) 1.16 (0.83)Diluted profit/(loss) per share (pence) (0.57) 1.14 (0.81)Headline profit/(loss) per share (pence) (0.58) 1.16 (0.83) * See Notes Consolidated Balance Sheet 31 Dec 2006 31 Dec 2005 30 Jun 2006 Restated* Restated* Unaudited Unaudited Audited £000' £000' £000' AssetsNon-current assetsProperty, plant and equipment 47 31 52Exploration, evaluation and mining properties 2,070 1,489 1,650Intangibles 2,319 0 2,319Investments 2,487 3,198 2,620Total non-current assets 6,923 4,718 6,641 Current assetsTrade and other receivables 712 411 537Cash and cash equivalent 7,269 3,884 4,668Total current assets 7,981 4,295 5,205 Total assets 14,904 9,013 11,846 Current liabilitiesTrade and other payables (245) (126) (155)Provisions (887) 0 0Loans and borrowings (3,519) 0 (1,500)Total current liabilities (4,651) (126) (1,655) Total liabilities (4,651) (126) (1,655) Net assets 10,253 8,887 10,191Minority interests: 11 17 96 10,264 8,904 10,287 EquityShare capital 791 774 786Share premium 12,341 8,604 11,859Share base payment reserve 473 141 262Currency translation reserves (566) 264 (304)Accumulated loss (2,775) (879) (2,316)Total equity 10,264 8,904 10,287 *See Notes Statement of changes in equity Share Share Share based Accumulated Total Capital Premium payment loss reserve £000' £000' £000' £000' £000' Balance at 1 July 2005 699 8,256 79 (1,700) 7,334Issue of share capital 75 0 0 0 75Premium on issue of share capital 0 348 0 0 348Share issue expenditure written off 0 0 62 0 62Net profit/(loss) for the period 0 0 0 821 821Currency translation difference 0 0 0 264 264Balance at 31 December 2005 774 8,604 141 (615) 8,904 Issue of share capital 12 0 0 0 12Premium on issue of share capital 0 3,255 0 0 3,255Share issue expenditure written off 0 0 121 0 121Expenditure settled by shares 0 0 0 0 0Net profit/(loss) for the year 0 0 0 (1,437) (1,437)Currency translation difference 0 0 0 (568) (568)Balance at 30 June 2006 786 11,859 262 (2,620) 10,287 Issue of share capital 5 0 0 0 5Premium on issue of share capital 0 482 0 0 482Share issue expenditure written off 0 0 211 0 211Expenditure settled by shares 0 0 0 0 0Net profit/(loss) for the year 0 0 0 (459) (459)Currency translation difference 0 0 0 (262) (262)Balance at 31 December 2006 791 12,341 473 (3,341) 10,264 Consolidated cash flow statement Six months ended Year ended 31 Dec 2006 31 Dec 2005 30 Jun 2006 Restated* Restated* Unaudited Unaudited Audited £000' £000' £000'Cash flows utilised by operating activitiesCash utilised by operations (870) (272) (868)Finance income 157 108 276Net cash outflow from operating activities (713) (164) (592) Cash flows utilised by investing activitiesAcquisition of property, plant and equipment as a result of 4 (7) (13)increasing operationsExpenditure on intangible exploration and evaluation assets as a (355) (580) (1,126)result of increasing operationsNet cash outflow from investing activities (351) (587) (1,139) Cash flows from financing activitiesShare capital issued 539 0 264Increase/(decrease) in convertible loan notes and provisions 3,126 0 1,042Net cash inflow from financing activities 3,665 0 1,306 Net increase/(decrease) in cash and cash equivalents 2,601 (751) (425)Cash and cash equivalents at the beginning of the period/year 4,668 4,635 5,093Cash and cash equivalents at the end of the period/year 7,269 3,884 4,668 * See Notes Notes 1. The financial information for the six months ended 31 December 2006 and 31 December 2005 is unaudited. In the opinion of the directors the financial information for these periods presents fairly the financial position, operations and cash flows for the period in conformity with generally accepted accounting principles. The interim statement for the six months ended 31 December was approved by the directors on 23 March 2007. 2. The financial information for the year ended 30 June 2006 does not constitute full accounts, but subject to the restatement explained in note 4, is an extraction from the Company's accounts for the year, which have been delivered to the Registrar of Companies and on which the auditors gave an unqualified report. 3. The interim accounts have been prepared in accordance with International Financial Reporting Standard ("IFRS"). The date of transition to IFRS was 1 July 2005. The comparative figures for the six months ended 31 December 2005 have also been presented in accordance with IFRS. 4. The interim accounts have been prepared using the same accounting policies as were used in the Group's statutory accounts to 30 June 2006 except for restatements relating to compliance with IFRS. This resulted in reversing the goodwill amortisation charge of £65,755 and recognising expenses relating to share based payments of £183,417 for the year ended 30 June 2006. The restated loss, attributable to Jubilee shareholders for the year ended 30 June 2006 was £616,640 and the adjusted Group net assets were £10,286,664. 5. As a result of adopting IFRS, the Group recognised total expenses of £210,895 (2005: £61,870) related to share-based payment transactions during the six months ended 31 December 2006. For the six months ended 31 December 2005, the adjusted administrative expenditure was £336,000 and the adjusted profit attributable to Jubilee shareholders was £821,453. 6. The calculation of headline loss per ordinary share is based on the reported loss of £459,216 for the six months ended 31 December 2006 and the weighted average number of ordinary shares outstanding during the same period of 78,884,602. 7. The investment of £2.5 million included in the Group's assets represents the Group's 25 % interest in Tjate Platinum Corporation (Pty) Ltd. 8. Copies of the interim report are available to the public free of charge from the Company at 4th Floor, 2 Cromwell Place, London, SW7 2JE, during normal office hours for 30 days from the date of this report. This information is provided by RNS The company news service from the London Stock Exchange