Last checked at 30 Mar 2010 08:00
AIM: JLP
JSE: JBL
30 March 2010
JUBILEE PLATINUM PLC
("Jubilee" or "the Company")
Interim Results for the six months ended 31 December 2009
The Board of Jubilee Platinum, the AIM quoted and JSE listed mining exploration and development Company, is pleased to announce the interim results for the six months ended 31 December 2009.
HIGHLIGHTS
·; Acquisition of Braemore Resources plc for £24.6M by way of an all share offer completed 30 October 2009
·; Jubilee moves from explorer to complete capability Company from exploration to metal
·; Completed private placing of £13.25M on 9 November 2009
·; Braemore successfully completed the Mintek R&D phase of the ConRoast Process and enters into commercial arrangement with a South African platinum producer.
·; Madagascar soil sampling confirms prospective drilling target in the northwest of the Ambodilafa Project.
Enquiries:
Jubilee Platinum plc
Colin Bird, Chairman +27 (0) 11 253 3280
Jubilee Platinum plc
Andrew Sarosi +44 (0) 1752 221937
FinnCap
Matthew Robinson, Corporate Finance +44 (0) 20 7600 1658
Sasfin Capital
Leonard Eiser, Corporate Finance +27 (0) 11 809 7738
Bishopsgate Communications Ltd
Nick Rome +44 (0) 20 7562 3366
CHAIRMAN'S STATEMENT
Dear Shareholder,
The Company has enjoyed an excellent period for the six months ending 31 December 2009.
Braemore Resources
The highlight of the period was the acquisition of Braemore Resources plc, which owns the exclusive rights to the Mintek patented ConRoast Process ("ConRoast") for the smelting of high chrome bearing Platinum Group Metal (PGM) concentrates. Jubilee has the exclusive rights to ConRoast until 2020. Braemore also has certain exploitation rights to BHP Billiton-owned nickel tailings in Western Australia.
ConRoast has important applications in the smelting of PGM concentrates. ConRoast, which utilises a DC arc furnace under mildly reducing conditions, has the ability to treat high chrome PGM concentrates, unlike the conventional AC arc furnace process of other South African smelter companies. From the resultant PGM-rich iron alloy produced by ConRoast, the PGMs and separately any associated nickel, copper and cobalt metals can be recovered using various relatively conventional downstream refining methods including converting, hydrometallurgy and gasification.
A major platinum producer's concentrate and various secondary materials were treated successfully by the company, commencing mid-October 2009 until end of March 2010. This campaign was the last phase of the R&D and the process will be fully commercialised during the last quarter of 2010.
The BHP Billiton Nickel tailings in Western Australia amount to some 385,000 tonnes of nickel and as such represents a major on-surface nickel asset. The company is currently undertaking an engineering study and economic evaluation of the asset with a view towards exploitation.
Tjate Project
The Tjate mineral resource statement was studied further, the results of which demonstrated that Tjate remains a robust project. The Board elected to advance the project towards feasibility.
The feasibility study was put to multi-company tender and the company announced on 24 March 2010 the award of the study to Snowden Mining Industry Consultants.
Madagascar
The Company carried out a further soil geochemical testing programme on the northwest of Ambodilafa, following up on previous encouraging anomalies. The resultant nickel/copper anomaly plots give considerable encouragement for a limited drill test programme, which is scheduled to commence late April 2010.
In November 2009, the Company successfully raised £13.25 million at a price of 30 pence per share resulting in the issue of 44.16 million new ordinary shares.
The Platinum price has been particularly strong during the credit crisis and at the time of writing continues to demonstrate further price growth potential.
With the acquisition of Braemore and further definition of the Tjate mineral resource, the company now has a broad base and critical mass from which to develop and further enhance shareholder value in a period of strong platinum price predictions.
MALCOLM BURNE
CHAIRMAN
30 March 2010
| Consolidated Income Statement | Six months ended | Year ended | |
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| 31 Dec 2009 Unaudited £000' | 31 Dec 2008 Unaudited £000' | 30 Jun 2009 Audited £000' |
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| Continuing operations |
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| Sales | 215 | 0 | 0 |
| Other income | 22 | 77 | 0 |
| Purchases | (193) | 0 | 0 |
| Administration expenses | (1,791) | (851) | (2,293) |
| Loss from operations | (1,747) | (774) | (2,293) |
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| Finance income | 97 | 346 | 542 |
| Finance costs | (77) | 0 | 0 |
| Profit on exchange rate | 1,953 | 0 | 1,461 |
| Impairment loss on intangibles | 0 | 0 | (3,807) |
| Goodwill written off | (519) | 0 | 0 |
| Gain on a bargain purchase | 0 | 0 | 18 |
| Loss before income tax expense | (293) | (428) | (4,079) |
| Loss for the period after income tax expense from continuing operations | (293) | (428) | (4,079) |
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| Minority interest |
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| Equity | 4 | 32 | 118 |
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| Loss attributable to members of Jubilee Platinum Plc | (289) | (396) | (3,961) |
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| Number of shares in issue | 229,550,922 | 113,013,291 | 104,996,622 |
| Weighted average number of shares in issue | 270,555,886 | 108,150,721 | 113,277,650 |
| Diluted weighted average number of shares in issue | 275,900,886 | 110,995,721 | 98,934,900 |
| Basic loss per share (pence) | (0.11) | (0.37) | (3.50) |
| Diluted loss per share (pence) | (0.10) | (0.37) | (3.50) |
| Headline loss per share (pence) | (0.11) | (0.37) | (0.13) |
| Consolidated Balance Sheet |
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| 31 Dec 2009 Unaudited £000' | 31 Dec 2008 Unaudited £000' | 30 Jun 2009 Audited £000' |
| Assets |
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| Non-current assets |
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| Intangible assets | 60,317 | 27,214 | 29,437 |
| Property, plant and equipment | 2,924 | 112 | 77 |
| Investment in associates | 0 | 0 | 0 |
| Other debtors | 54 | 1,714 | 0 |
| Total non-current assets | 63,295 | 29,040 | 29,514 |
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| Current assets |
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| Trade and other receivables | 293 | 684 | 474 |
| Cash and cash equivalent | 16,572 | 8,799 | 7,641 |
| Inventory | 276 | 0 | 0 |
| Other debtors | 951 | 1,844 | 0 |
| Total current assets | 18,092 | 11,327 | 8,115 |
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| Total assets | 81,387 | 40,367 | 37,629 |
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| Current liabilities |
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| Trade and other payables | (2,121) | (1,237) | (549) |
| Total current liabilities | (2,121) | (1,237) | (549) |
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| Total liabilities | (2,121) | (1,237) | (549) |
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| Net current assets | 15,971 | 10,090 | 7,566 |
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| Net assets | 79,266 | 39,130 | 37,080 |
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| Equity |
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| Called up share capital | 2,296 | 1,130 | 1,184 |
| Share premium account | 73,580 | 38,293 | 33,855 |
| Share based payment reserve | 1,678 | 1,358 | 1,678 |
| Currency translation reserve | 1,654 | 1,916 | 438 |
| Other reserves | 0 | 1,035 | 0 |
| Merger reserve | 4,970 | 0 | 4,970 |
| Retained earnings | (9,148) | (6,769) | (8,860) |
| Equity attributable to equity holders of the parent | 75,030 | 36,963 | 33,265 |
| Equity interest of minorities | 4,236 | 2,167 | 3,815 |
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| Total equity | 79,266 | 39,130 | 37,080 |
Consolidated Statement of Changes in Equity
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| Share Capital | Share Premium | Share based payment reserve | Other reserves | Merger reserve | Accumulated loss | Currency translation reserve
| Total |
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| £000' | £000' | £000' | £000' | £000' | £000' | £000's | £000' |
| Balance at 1 July 2008 | 1,050 | 33,337 | 1,179 | 1,034 | 0 | (6,373) | (812) | 29,415 |
| Issue of share capital | 80 | 0 | 0 | 0 | 0 | 0 | 0 | 80 |
| Premium on issue of share capital | 0 | 4,956 | 0 | 0 | 0 | 0 | 0 | 4,956 |
| Share-based payment charge | 0 | 0 | 179 | 0 | 0 | 0 | 0 | 179 |
| Other reserves adjustment | 0 | 0 | 0 | 0 | 0 | 0
| 0 | 0 |
| Net loss for the period | 0 | 0 | 0 | 0 | 0 | (396) | 0 | (396) |
| Currency translation difference | 0 | 0 | 0 | 0 | 0 | 0 | 2,729 | 2,729 |
| Balance at 31 December 2008 | 1,130 | 38,293 | 1,358 | 1,034 | 0 | (6,769) | 1,917 | 36,963 |
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| Issue of share capital | 54 | 0 | 0 | 0 | 0 | 0 | 0 | 54 |
| Premium on issue of share capital | 0 | (4,438) | 0 | 0 | 4,970 | 0 | 0 | 532 |
| Negative goodwill | 0 | 0 | 0 | 0 | 0 | 440 | 0 | 440 |
| Goodwill translation | 0 | 0 | 0 | 0 | 0 | 0 | 1,060 | 1,060 |
| Share-based payment charge | 0 | 0 | 320 | 0 | 0 | 0 | 0 | 320 |
| Other reserves | 0 | 0 | 0 | (1,034) | 0 | 1,034 | 0 | - |
| Net loss for the period | 0 | 0 | 0 | 0 | 0 | (3,565) | 0 | (3,565) |
| Currency translation difference | 0 | 0 | 0 | 0 | 0 | 0 | (2,539) | (2,539) |
| Balance at 30 June 2009 | 1,184 | 33,855 | 1,678 | 0 | 4,970 | (8,860) | 438 | 33,265 |
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| Issue of share capital | 1,112 | 0 | 0 | 0 | 0 | 0 | 0 | 1,112 |
| Premium on issue of share capital |
0 | 39,725 | 0 | 0 | 0 | 0 | 0 | 39,725 |
| Goodwill translation | 0 | 0 | 0 | 0 | 0 | 0 | 1,235 | 1,235 |
| Net loss for the period | 0 | 0 | 0 | 0 | 0 | (288) | 0 | (288) |
| Currency translation difference | 0 | 0 | 0 | 0 | 0 | 0 | (19) | (19) |
| Balance at 31 December 2009 | 2,296 | 73,580 | 1,678 | 0 | 4,970 | (9,148) | 1,654 | 75,030 |
| Consolidated Cash Flow Statement | Six months ended | Year ended | |
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| 31 Dec 2009 Unaudited £000' | 31 Dec 2008 Unaudited £000' | 30 Jun 2009 Audited £000' |
| Cash flows from operating activities |
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| Income/(loss) for the period | 206 | (774) | (4,621) |
| Depreciation | 320 | 0 | 34 |
| Other non-cash movements | (5,546) | 0 | 6,203 |
| Net cash outflows of subsidiaries previously treated as associates | 0 | 0 | (14,850) |
| Gain on a bargain purchase | 0 | 0 | (18) |
| Loss on sale of property, plant and equipment | 0 | 0 | (5) |
| Amounts written off exploration expenditure | 0 | 0 | 3,807 |
| Increase/(decrease) in receivables | (2,777) | 3,698 | 6,000 |
| Increase in inventory | (277) | - | - |
| Decrease in payables | 1,573 | 844 | 171 |
| Foreign exchange on retranslation of overseas subsidiaries | (1,735) | 371 | 2,006 |
| Share based payments | 0 | 179 | 499 |
| Interest received | 97 | 345 | 542 |
| Interest paid | (77) | 0 | 0 |
| Net cash outflow from operating activities | (8,216) | 4,663 | (232) |
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| Cash flows utilised by investing activities |
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| Acquisition of subsidiary, net of cash acquired | 0 | 0 | (790) |
| Purchase of intangible fixed assets | (173) | (5,086) | (2,029) |
| Disposal/(Purchase) of tangible fixed assets | 61 | (11) | (5) |
| Net cash outflow from investing activities | (112) | (5,097) | (2,824) |
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| Cash flows from financing activities |
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| Issue of shares and warrants | 15,307 | 0 | 2 |
| Net cash inflow from financing activities | 15,307 | 0 | 2 |
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| Effects of foreign exchange on cash and cash equivalents | 1,952 | (2) | 1,461 |
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| Net increase/(decrease) in cash and cash equivalents | 8,931 | (436) | (1,593) |
| Cash and cash equivalents at the beginning of the period/year | 7,641 | 9,234 | 9,234 |
| Cash and cash equivalents at the end of the period/year | 16,572 | 8,798 | 7,641 |
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Notes
1. The interim financial information for the six months ended 31 December 2009 is unaudited. The interim accounts have been prepared in accordance with the recognition, measurement and presentation and disclosure requirements of International Financial Reporting Standards ("IFRS"), including IAS34 Interim Financial Reporting, the Companies Act and the JSE Listings Requirements. The accounting policies have been applied consistently through the Group and are consistent with those for the year ended 30 June 2009. The Interim statement was approved by the board on 29 March 2010.
2. Segmental Analysis
Business segments
The Group's only business segment is the exploration and development of Platinum Group Metals (PGMs) and associated metals.
Geographical segments
An analysis of loss on ordinary activities before taxation, net assets and exploration expenditure by geographical area is given below.
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| Six months ended | Year ended | |
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| 31 Dec 2009 £000' | 31 Dec 2008 £000' | 30 Jun 2009 £000' |
| Loss on ordinary activities |
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| United Kingdom | (1,406) | (375) | (1,285) |
| South Africa | 911 | 30 | 2,133 |
| Madagascar | 38 | (75) | (2,480) |
| Australia | 165 | 0 | 0 |
| Mauritius | (1) | (8) | (2,446) |
| Total loss before minority interests | (293) | (428) | (4,078) |
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| Net assets by location |
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| United Kingdom | 42,769 | 17,878 | 18,088 |
| South Africa | 33,185 | 13,650 | 18,807 |
| Madagascar | 305 | 4,177 | 184 |
| Australia | 2,999 | 0 | 0 |
| Mauritius | 8 | 3,425 | 1 |
| Total net assets | 79,266 | 39,130 | 37,080 |
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| Exploration expenditure |
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| United Kingdom | 35,682 | 0 | 198 |
| South Africa | 9,328 | 940 | 16,861 |
| Australia | 3,276 | 0 | 0 |
| Madagascar | 12 | 2,860 | 674 |
| Total exploration expenditure | 48,298 | 3,800 | 17,733 |
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3. Loss per share
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| Six months ended | Year ended | |
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| 31 Dec 2009 | 31 Dec 2008 | 30 Jun 2009 |
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| Loss for the financial period (£) | (288,731) | (395,978) | (3,960,723) |
| Weighted average number of shares in issue | 270,555,886 | 108,150,721 | 113,277,650 |
| Dilutive effect of share options | 5,345,000 | 2,845,000 | 644,165 |
| Basic loss per share (pence) | (0.11) | (0.37) | (3.50) |
| Diluted loss per share (pence) | (0.10) | (0.37) | (3.50) |
4. No dividend was declared during the period ended 31 December 2009 (December 2008: Nil).
5. On 7 August 2009, the Group allotted and issued 8,857,183 new ordinary shares of 1p each in Jubilee. Of these shares, 4,960,978 were issued following the deemed achievement of Performance Hurdle 2 of the Deferred Share Agreement entered into by Jubilee on 21 January 2009.
The balancing 3,896,205 ordinary shares of 1p each were issued in relation to increasing Jubilee's interest in Maude Mining (Pty) Ltd by 26% to 91% through the acquisition of K-Plats. The terms of this agreement required K-Plats shareholders to subscribe for "A" preference shares in K-Plats. Jubilee subsequently purchased from the K-Plats shareholders all their "A" preference shares for 3,896,205 Jubilee ordinary shares at R1.2833 (0.0997 GB pounds), a total consideration of 5 million Rands. The "A" preference shares confer on Jubilee the right to receive all dividends or other distributions declared and/or paid by K-Plats to its shareholders and the right to appointments on the board of directors of K-Plats.
On 9 November 2009 the Group allotted and issued 49,900,908 new ordinary shares of 1p each in Jubilee to acquire the entire issued share capital of Braemore Resources plc. The all-equity transaction involved the issue of 1 new Jubilee share for every 15.818 Braemore shares held by Braemore shareholders.
6. The following changes were made to the Board of Directors to date:
Andrew Sarosi - Designated as Finance Director 0n 15 September 2009
Leon Coetzer - Appointed on 11 January 2010
Dr Mathews Phosa - Appointed 11 January 2010
7. Copies of interim report are available to the public free of charge from the Company at 4th Floor, Cromwell Place, London, SW7 2JE and from 6 Pinewood Office Park, 33 Riley Road, Woodmead, Sandton, Johannesburg during normal office hours for 30 days from the date of this report and available for download from www.jubileeplatinum.com.