Registration number (4459850)
AltX share code: JBL
AIM share code: JLP
ISIN: GB0031852162
14 November 2016
Jubilee Platinum PLC
("Jubilee" or the "Company" or the "Group")
Audited results for the year ended 30 June 2016
The directors of AIM traded Jubilee, the Mine-to-Metals company, are pleased to release its audited results for the year ended 30 June 2016. Shareholders are also advised that these results have been audited by the Group auditors Saffery Champness Their audit report is attached to this announcement as Annexure 1. In compliance with the JSE Limited's listings requirements a reconciliation of headline earnings is attached to this announcement as Annexure 2.
The Company confirms that the Annual Report and Accounts for the year ended 30 June 2016 has been posted to shareholders and is available on the Company's website (www.jubileeplatinum.com). Shareholders are also advised that the Notice of Annual General Meeting for the year ended 30 June 2016 was posted to Jubilee shareholders on 11 November 2016 and is also available on the Company's website. The Annual General Meeting will be held on Tuesday, 6 December 2016 at 11:00 am UK time at Fladgate LLP, 16 Great Queen Street, London, WC2B 5DG to transact the business as stated in the notice of Annual General Meeting.
Highlights Financial1
• Middelburg Operations and Power Plant disposal ("Disposal Group") completed for a gross cash sum of ZAR110.5 million (£5.3 million).
• Operating expenses from continuing operations (excluding share-based payment charges and impairments) are down 16.27% to £2.4 million (ZAR5.1 million)
• The Group reported a loss per share for the year ended 30 June 2016 on continuing operations of 0.38 pence (ZAR cents 8.07), a reduction of 15.6% on last year, and a loss per share on discontinued operations for the three months to 30 September 2016 of 0.03 pence (ZAR cents 0.67) (2015: loss per share on continuing operations of 0.45 pence (ZAR cents 8.12) and a loss per share on discontinued operations for the year ending 30 June 2015 of 0.10 pence (ZAR cents 1.76)).
Mining and exploration1
• Jubilee's subsidiary Company, Tjate Platinum Corporation Pty Ltd ("Tjate"), secured an Environmental Rehabilitation Guarantee ("ERG") Policy bond for £1.5 million (ZAR27 million) in terms of the Minerals and Petroleum Resources Development Act ("MPRDA") of South Africa. Tjate awaits the notarial execution of the mining right for its Tjate Platinum Project by the Department of Minerals and Resources ("DMR").
Surface operation and processing 1
• Co-Operation Agreement executed, 15 December 2015 between Jubilee and Hernic Ferrochrome Pty Ltd ("Hernic") to turn to account its platinum containing tailings ("Platinum Tailings"), stockpiled on its site, by producing chromite and PGM concentrates ("Hernic Tailings Project").
• Jubilee secured funding for the construction and commissioning of the Hernic Tailings Project.
• Construction of the 660 000 tonnes per year process plant for the Hernic Tailings Project commenced February 2015, reaching 45% completion on schedule and on budget by year-end with 71% completion reached post the period under review by end Q3 2016
• Construction of the Dilokong chromite recovery section (First Phase) of the Dilokong Tailings Treatment Plant ("DTTP") was concluded in February 2016, targeting the recovery of chromite from Dilokong Chrome Mine's ("DCM") platinum- bearing chromite tailings ("DCM Platinum Tailings") ("DCM Tailings Project"). DTTP reached its operational design capacity in mid-April 2016.
• Record production, revenues and earnings from DCM Project chromite achieved by year-end after two months continuous operations.
• DCM Project earnings at year-end reach £0.744 million (ZAR14.2 million) and increasing post the period under review to £2.291 million (ZAR41.905 million) end Q3 2016
• Attributable earnings to Jubilee from the DCM Project at year-end reach £0.456 million (ZAR8.7 million) and increasing post the period under review to £1.344 million (ZAR24.597) end Q3 2016
1= for income statement purposes currency conversions are at the average £: ZAR rates for the period under review and for balance sheet purposes currency conversions are at the closing rate as at the period end. All other currency conversions are at rates as at the time announced
Overview
In the period under review, the Company achieved significant milestones in the implementation of its Mine-to-Metals strategy to form a fully-integrated platinum mining Company.
The Company commissioned the First Phase of its DCM Tailings Project, reaching stable production in April 2016 while simultaneously commencing with the construction of the Hernic Tailings Project, targeting a combined processing in excess of 900 000 tonnes per annum of Platinum Tailings over the two Tailings Projects. The Company executed the cash sale of its non-core Ferro-alloy smelting operations ("Middelburg Operations") for a gross value of approximately £5.3 million (ZAR110.5 million), and redirected the funds towards the acquisition and commissioning of its platinum and chrome tailings projects.
The First Phase of the DCM Tailings Project targeted the production of a chromite concentrate while concurrently the Company concluded a detailed platinum processing option study. The option study was concluded post the period under review. The option study indicated the optimal strategy should include pre-concentration at DCM of the platinum in the chrome tailings and contracting with an existing platinum producer to upgrade further the platinum pre-concentrate in order to produce a saleable platinum concentrate. The Company engaged with a targeted toll processor to implement this preferred platinum processing strategy at DCM. Post year-end the DCM Tailings Project has continued to exceed the design specifications, reaching a production at the end of Q3 of the 2016 calendar year of 43 747 tonnes of saleable chromite concentrate, generating total revenues of £3.1 million (ZAR56.5 million).
The Company successfully completed a project funding agreement (the "Funding") for the execution and commissioning of its two platinum Tailings Projects.
The Funding comprised the combination of Senior Secured Debt (to a maximum of USD10 million), Unsecured Debt (to a maximum of USD5.3 million) and an equity placing (£2.3 million). This Funding package enabled Jubilee to execute simultaneously the two platinum Tailings Projects, while still pursuing the acquisition or securing of further surface or shallow platinum-bearing opportunities. These two Tailings Projects have grown the Company's access to, in excess of 4 million tonnes, of platinum-containing surface material.
The Hernic Tailings Project reached 45% completion at year-end with the Project expenditure equalling £4.5 million (ZAR 88.5 million). Post year-end and at the end of Q3 of the 2016 calendar year the Project had reached a completion of 71% with the un-audited Project expenditure reaching £7.5 million (ZAR137.6 million).
The Company's Tjate project progressed with the implementation of a Rehabilitation Guarantee Policy bond for £1.5 million (ZAR27 million) in terms of the Minerals and Petroleum Resources Development Act ("MPRDA") of South Africa. Tjate continues to await the execution of the mining right by the Department of Minerals and Resources ("DMR").
Jubilee executed a binding cash sale agreement, in aggregate of approximately £5.3 million (ZAR110.5 million) gross for its Middelburg operational assets, the disposal of which was approved by shareholders at a general meeting on 7 August 2015.
During the period under review the Company successfully managed its expenditure by selling its non-core assets and channelling the proceeds into the more profitable platinum Tailings Projects, thereby enabling the Company to grow its near-term earnings potential. The Company continues to actively pursue further projects consistent with our stated mission to grow the Company's processing capacity of at- or near-surface platinum bearing material.
The Company looks forward to bringing into operation its two platinum Tailings Projects within the current financial period while continuing to grow its revenue base and earnings projections and advancing its project portfolio.
Conditions in the global markets remained challenging as reflected in the platinum group metal ("PGM") prices. However, Jubilee's Platinum Tailings Projects remain robust at these metal prices; having the benefit of not being exposed to mining cost or associated mining risk.
The Company successfully responded to the current challenges and risks inherent to an exploration and production business and will continue to formulate preventative measures.
Chairman's statement
Consolidated statement of comprehensive income for the year ended 30 June 2016
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| Figures in Sterling |
| 2016 | 2015 |
| Continuing operations Revenue Cost of sales |
1 473 921 (608 309) |
48 899 (25 529) | |||
| Gross profit | 865 612 | 23 370 | |||
| Other income | 10 725 | 8 586 | |||
| Operating expenses | (4 690 862) | (2 843 607) | |||
| Operating loss |
| (3 814 525) | (2 811 651) | ||
| Investment revenue |
| 144 077 | 65 283 | ||
| Gain on non-current assets held for sale or |
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| disposal groups |
| 84 680 | - | ||
| Finance costs |
| (13 418) | (194 758) | ||
| Loss before taxation |
| (3 599 186) | (2 941 126) | ||
| Taxation |
| 201 901 | - | ||
| Loss from continuing operations |
| (3 397 285) | (2 941 126) | ||
| Discontinued operations |
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| Loss from discontinued operations |
| (276 660) | (504 196) | ||
| Loss for the year | (3 673 945) | (3 445 322) | |||
| Other comprehensive income: |
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| |||
| Exchange differences on translating foreign operations | 2 653 926 | (4 497 075) | |||
| Total comprehensive loss | (1 020 019) | (7 942 397) | |||
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Attributable to: |
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| Owners of the parent: |
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| Loss for the year from continuing operations | (3 412 174) | (2 906 928) | |||
| Loss for the year from discontinuing operations | (283 749) | (628 442) | |||
| Loss for the year attributable to owners of the parent | (3 695 923) | (3 535 370) | |||
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Non-controlling interest: |
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| |||
| Profit/(loss) for the year from continuing operations | 14 889 | (34 198) | |||
| Profit for the year from discontinuing operations | 7 089 | 124 246 | |||
| Profit for the year attributable to non-controlling interest |
21 978 |
90 048 | |||
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Total comprehensive loss attributable to: |
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| |||
| Owners of the parent | (1 009 610) | (8 006 476) | |||
| Non-controlling interest | (10 409) | 64 079 | |||
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| (1 020 019) | (7 942 397) | |||
| Basic and diluted loss per share (pence) - continuing |
|
|
| ||
| operations | (0.38) | (0.45) | |||
| Basic and diluted loss per share (pence) - discontinued |
|
| |||
| operations | (0.03) | (0.10) | |||
| Loss per share | (0.41) |
| (0.55) | ||
Consolidated statement of financial position as at 30 June 2016
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| Figures in Sterling |
| 2016 | 2015 |
| Assets |
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| Non-current assets |
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| Property, plant and equipment |
| 4 977 784 | 88 064 |
| Intangible assets |
| 61 838 764 | 59 069 353 |
| Deferred tax |
| 218 345 | - |
|
| 67 034 893 | 59 157 417 | |
| Current assets |
|
|
|
| Inventories |
| - | 19 019 |
| Other financial assets |
| 555 159 | - |
| Current tax receivable |
| 15 870 | 15 900 |
| Trade and other receivables |
| 1 074 509 | 302 504 |
| Cash and cash equivalents |
| 4 414 908 | 360 829 |
|
| 6 060 446 | 698 252 | |
| Non-current assets held for sale and assets of disposal groups |
- |
7 696 389 | |
| Total assets | 73 095 339 | 67 552 058 | |
| Equity and liabilities |
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| Equity attributable to equity holders of parent |
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| Share capital |
| 82 515 169 | 75 896 582 |
| Reserves |
| 17 997 713 | 16 742 258 |
| Accumulated loss |
| (44 300 203) | (43 495 910) |
|
| 56 212 679 | 49 142 930 | |
| Non-controlling interest | (42 606) | 365 071 | |
|
| 56 170 073 | 49 508 001 | |
| Liabilities Non-current liabilities Deferred tax |
14 677 152 |
13 738 729 | |
| Current liabilities |
|
|
|
| Other financial liabilities |
| - | 811 890 |
| Trade and other payables |
| 2 248 114 | 876 617 |
| Deferred income |
| - | 346 041 |
|
| 2 248 114 | 2 034 548 | |
| Liabilities of disposal groups | - | 2 270 780 | |
| Total liabilities | 16 925 266 | 18 044 057 | |
| Total equity and liabilities | 73 095 339 | 67 552 058 | |
The financial statements were authorised for issue and approved by the Board on 11 November 2015 and
signed on its behalf by:
Leon Coetzer
Chief Executive Officer
Company number 04459850
Consolidated statement of changes in equity for the year ended 30 June 2016
| Figures in Sterling | Share capital | Foreign currency translation reserve | Merger reserve | Share-based Payment reserve | Total reserves | Accumulated loss | Total attributable to equity holders of the Group | Non- controlling interest | Total equity | ||||||||
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| Balance at 1 July 2014 |
73 434 453 |
(7 169 662) |
23 184 000 |
4 918 210 |
20 932 548 |
(40 428 540) |
53 938 461 |
177 179 |
54 115 640 | ||||||||
| Changes in equity |
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| ||||||||
| Total comprehensive income for the year |
- |
(4 471 106) |
- |
- |
(4 471 106) |
(3 535 370) |
(8 006 476) |
64 079 |
(7 942 397) | ||||||||
| Issue of share capital net of costs |
2 462 129 |
- |
- |
- |
- |
- |
2 462 129 |
- |
2 462 129 | ||||||||
| Warrants issued | - | - | - | 748 816 | 748 816 | - | 748 816 | - | 748 816 | ||||||||
| Share options forfeited |
- |
- |
- |
(468 000) |
(468 000) |
468 000 |
- |
- |
- | ||||||||
| Changes in ownership interest control not lost |
- |
- |
- |
- |
- |
- |
- |
123 813 |
123 813 | ||||||||
| Total changes | 2 462 129 | (4 471 106) | - | 280 816 | (4 190 290) | (3 067 370) | (4 795 531) | 187 892 | (4 607 639) | ||||||||
| Balance at 1 July 2015 |
75 896 582 |
(11 640 768) |
23 184 000 |
5 199 026 |
16 742 258 |
(43 495 910) |
49 142 930 |
365 071 |
49 508 001 | ||||||||
| Changes in equity |
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| ||||||||
| Total comprehensive income for the year |
- |
2 686 313 |
- |
- |
2 686 313 |
(3 695 923) |
(1 009 616) |
(10 409) |
(1 020 019) | ||||||||
| Issue of share capital net of costs |
6 618 587 |
- |
- |
- |
- |
- |
6 618 587 |
- |
6 618 587 | ||||||||
| Disposal of subsidiaries |
- |
1 820 818 |
- |
- |
1 820 818 |
(1 820 818) |
- |
(397 268) |
(397 268) | ||||||||
| Warrants issued | - | - | - | 304 925 | 304 925 | - | 304 925 | - | 304 925 | ||||||||
| Options issued under new scheme |
- |
- |
- |
1 155 847 |
1 155 847 |
- |
1 155 847 |
- |
1 155 847 | ||||||||
| Option cancelled under old scheme |
- |
- |
- |
(4 450 210) |
(4 450 210) |
4 450 210 |
- |
- |
- | ||||||||
| Warrants exercised | - | - | - | (258 306) | (258 306) | 258 306 | - | - | - | ||||||||
| Warrants lapsed | - | - | - | (3 932) | (3 932) | 3 932 | - | - | - | ||||||||
| Total changes | 6 618 587 | 4 507 131 | - | (3 251 676) | 1 255 455 | (804 243) | 7 069 749 | (407 677) | 6 662 072 | ||||||||
| Balance at 30 June 2016 |
82 515 169 |
(7 133 637) |
23 184 000 |
1 947 350 |
17 997 713 |
(44 300 203) |
56 212 679 |
(42 606) |
56 170 073 | ||||||||
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Consolidated statement of cash flow for the year ended 30 June 2016
| Figures in Sterling |
| 2016 | 2015 | |||
| Cash flows from operating activities Cash used in operations Interest income Finance costs |
(688 883) 144 077 (13 418) |
(1 251 279) 65 283 (194 758) |
| |||
| Net cash from operating activities | (558 224) | (1 380 754) |
| |||
| Cash flows from investing activities |
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| Purchase of property, plant and equipment |
| (4 548 858) | (5 904) |
| ||
| Sale of property, plant and equipment |
| - | (42 547) |
| ||
| Purchase of other intangible assets |
| (4 239) | (45 334) |
| ||
| Net cash flow from disposal of discontinued operations |
| 3 986 126 | - |
| ||
| Increase in other financial assets |
| (555 159) | - |
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| Cash removed as part of disposal group |
| - | (163 002) |
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| Net cash from investing activities | (1 122 130) | (256 787) |
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| Cash flows from financing activities |
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| Net proceeds on share issues | 5 865 560 | 1 413 280 |
| |||
| Repayment of other financial liabilities | (102 490) | (264 323) |
| |||
| Net cash from financing activities | 5 763 070 | 1 148 957 |
| |||
| Total cash movement for the year | 4 082 716 | (488 584) |
| |||
| Total cash at the beginning of the year | 360 829 | 733 399 |
| |||
| Effect of exchange rate movement on cash balances | (28 637) | 116 014 |
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| Total cash at end of the year |
| 4 414 908 | 360 829 |
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1. Basis of preparation
The Group and Company results for the year ended 30 June 2016 have been prepared using the accounting policies applied by the Company in its 30 June 2015 annual report which are in accordance with International Financial Reporting Standards (IFRS and IFRC interpretations) issued by the International Accounting Standards Board ("IASB") as adopted for use in the EU (IFRS, including the SAICA financial reporting guides as issued by the Accounting Practices Committee and the Companies Act 2006 (UK). They are presented in Pound Sterling.
This financial report does not include all notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2016 and any public announcements by Jubilee Platinum Plc after that date to the date of publication of these results.
All monetary information is presented in the functional currency of the Company being Great British Pound. The Group's principal accounting policies and assumptions have been applied consistently over the current and prior comparative financial period. The financial information for the year ended 30 June 2015 contained in this report does not constitute statutory accounts as defined by section 435 of the Companies Act 2006. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The auditor's report on those accounts was unqualified did not contain a statement under section 498(2)-(3) of the Companies Act 2006.
2. Financial review
Earnings per share for the year ended 30 June 2016 were as follows:
| Basic loss for the year - continuing operations (£'000) Basic loss for the year - discontinuing operations (£'000) ((£'000) | (3 412) (283) | (2 907) (628) |
| Total loss for the year | (3 695) | (3 535) |
| Weighted average number of shares in issue ('000) | 906 241 | 644 852 |
| Diluted weighted average number of shares in issue ('000) | 906 241 | 644 852 |
| Weighted average number of shares in issue discontinued operations ('000) | 906 241 | 644 852 |
| Diluted weighted average number of shares in issue discontinued operations ('000) | 906 241 | 644 852 |
| Loss per share - continuing operations (pence) | (0.38) | (0.45) |
| Loss per share - discontinuing operations (pence) | (0.03) | (0.10) |
|
| (0.41) | (0.55) |
| Diluted loss per share - continuing operations (pence) | (0.38) | (0.45) |
| Diluted loss per share - discontinuing operations (pence) | (0.03) | (0.10) |
|
| (0.41) | (0.55) |
| Loss per share - continuing operations (ZAR cents) | (8.07) | (8.12) |
| Loss per share - discontinuing operations (ZAR cents) | (0.67) | (1.76) |
|
| (8.74) | (9.88) |
| Diluted loss per share - continuing operations (ZAR cents) | (8.07) | (8.12) |
| Diluted loss per share - discontinuing operations (ZAR cents) | (0.67) | (1.76) |
|
| (8.74) | (9.88) |
The Group reported a net asset value of 5.65 pence (112.38 ZAR cents) (2015: 6.60 pence (127.65 ZAR cents) per ordinary share. The total shares in issue as at 30 June 2016 were 991 087 994 (2015: 749 860 507).
3. Dividends
The Board did not declare any dividends for the period under review. (2015: Nil)
4. Auditor's review opinion
These results have been audited by the Group's auditors, Saffery Champness and their report is available for inspection at the Company's registered office. A copy of the report is also attached to the back of this announcement as annexure 1.
5. Board
There were no changes to the board during the period under review and up to the date of this announcement.
6. Share capital
| Authorised The share capital of the Company is divided into an unlimited number of ordinary shares of 1 pence each. Issued
Ordinary shares of 1 pence each (£) Share premium (£) | 30 June 2016
9 910 872 72 604 297 | 30 June 2015
7 498 605 68 397 978 |
| Total issued capital (£) | 82 515 169 | 75 896 582 |
| Number of shares in issue Ordinary shares |
991 087 194 |
749 860 507 |
The Company issued the following shares during the period and up to the date of this annual report:
|
Date | Number Of Shares | Issue price Pence | Purpose of the issue |
| Opening balance | 749 860 507 |
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| 1 July 2015 | 26 850 931 | 2.10 | Debt |
| 5 August 2015 | 1 264 837 | 4.00 | Debt |
| 5 August 2015 | 5 786 380 | 2.01 | Warrants |
| 5 August 2015 | 10 550 581 | 3.23 | Warrants |
| 5 August 2015 | 71 834 833 | 3.40 | Cash |
| 18 August 2015 | 10 000 000 | 2.63 | Warrants |
| 22 September 2015 | 2 000 000 | 3.16 | Warrants |
| 5 October 2015 | 2 706 765 | 3.40 | Debt |
| 14 October 2015 | 7 142 936 | 3.16 | Warrants |
| 20 October 2015 | 5 160 000 | 3.16 | Warrants |
| 12 November 2015 | 1 500 000 | 3.16 | Warrants |
| 11 December 2015 | 1 518 710 | 3.06 | Acquisition |
| 29 February 2016 | 3 750 000 | 3.16 | Warrants |
| 30 March 2016 | 89 285 714 | 2.80 | Cash |
| 27 May 2016 | 1 875 000 | 1.60 | Warrants |
| Closing balance at year-end and at the date of this announcement | 991 087 194 |
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The Company did not issue any shares after year-end to the date of this report other than those disclosed in note 10.2 below.
At year-end and at the last practicable date the Company had the following warrants outstanding:
|
Number of warrants |
Issue date | Subscription price £s | End of exercise period |
Volatility % | Spot at issue date pence |
| 12 750 000 | 2014-02-21 | 0.03160 | 2017-02-21 | 69.01 | 1.975 |
| 10 550 581 | 2014-03-03 | 0.00323 | 2017-02-25 | 67.67 | 1.800 |
| 38 097 689 | 2013-12-23 | 0.03355 | 2016-12-30 | 65.02 | 3.150 |
| 3 591 742 | 2015-08-12 | 0.04750 | 2018-08-12 | 77.49 | 4.48 |
| 18 244 825 | 2016-03-23 | 0.04725 | 2019-03-23 | 83.81 | 2.94 |
| 83 234 837 |
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The fair value of these warrants was determined using the Black-Scholes Valuation Model with the inputs illustrated in the table above. A risk free rate of 0.5% were applied in the valuation. The company recognised a share-based payment charge against a share-based payment reserve the amount of £304 925 (2015: £748 816) in accordance with section 610 (2) of the United Kingdom Companies Act 2006. This charge relates to equity placings successfully completed.
7. Business segments
In the opinion of the Directors, the continuing operations of the Group companies comprise four reporting segments (of which the descriptions have been changed to better reflect the Group's strategy of becoming a platinum producer post the Disposal) being:
• the beneficiation of Platinum Group Elements ("PGEs") and associated metals and development of PGM smelters utilising exclusive commercialisation rights of the ConRoast smelting process, located in South Africa ("PGE beneficiation and development");
• the evaluation of the reclamation and processing of sulphide nickel tailings at BHP Billiton's Leinster, Kambalda and Mount Keith properties in Australia (Nickel tailings);
• the exploration and mining of Platinum Group Elements ("PGEs") and associated metals (Exploration and mining);
• the parent company operates a head office based in the United Kingdom, which incurred certain administration and corporate costs.
The results of the discontinued operations comprise two segments which have been combined into one segment referred to as Disposal Group being:
• base metal smelting in South Africa; and
• electricity generation in South Africa.
The Group's operations span five countries, South Africa, Australia, Madagascar, Mauritius and the United Kingdom. There is no difference between the accounting policies applied in the segment reporting and those applied in the Group financial statements. Mauritius and Madagascar do not meet the qualitative threshold under IFRS 8, consequently no separate reporting is provided.
Segment report for the year ended 30 June 2016
|
£s | PGE beneficiation and development |
Nickel tailings |
Exploration and mining |
Other operations |
Total continuing operations |
Disposal group | |||||
| Total revenues | (1 127 880) | - | - | (346 041) | (1 473 921) | (1 420 145) |
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| Cost of sales | 589 290 | - | - | 19 019 | 608 309 | 682 365 |
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| Forex losses | (7 658) | - | - | 77 571 | 69 913 | - |
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| Loss before taxation | 787 554 | 10 711 | 16 174 | 2 784 748 | 3 599 187 | 276 660 |
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| Taxation | - | - | - | - | - | - |
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| Loss after taxation | 787 554 | 10 711 | 16 174 | 2 784 748 | 3 599 187 | 276 660 |
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| Interest received | (120 301) | - | (75) | (23 701) | (144 077) | (193) |
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| Interest paid | 5 | - | - | 13 413 | 13 417 | - |
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| Depreciation and |
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| amortisation | 597 613 | - | 838 | - | 598 451 | - |
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| Total assets | 14 004 569 | 31 666 391 | 23 626 458 | 3 797 622 | 73 095 339 | - |
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| Total liabilities | (2 904 304) | (9 656 474) | (3 885 972) | (478 516) | (16 925 267) | - |
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Segment report for the year ended 30 June 2015
|
£s | PGE beneficiation and development |
Nickel tailings |
Exploration and mining |
Other operations |
Total continuing operations |
Disposal group |
| Total revenues | (3 885) | - | - | (45 014) | (48 899) | (5 160 105) |
| Cost of sales | - | - | - | 25 529 | (25 529) | (2 167 422) |
| Forex losses | (31) | - | 3 462 | 19 485 | 23 370 | - |
| Loss before taxation | 1 560 914 | 18 862 | 61 103 | 1 300 247 | 2 941 126 | 452 002 |
| Taxation | - | - | - | - | - | 52 194 |
| Loss after taxation | 1 560 914 | 18 862 | 61 103 | 1 300 247 | 2 941 126 | 504 196 |
| Interest received | - | - | - | (65 283) | (65 283) | (1 017) |
| Interest paid | 4 | - | - | 194 754 | 194 758 | 455 |
| Depreciation and amortisation |
694 487 |
- |
1 949 |
- |
696 436 |
744 361 |
| Total assets | 7 449 691 | 27 757 917 | 24 036 807 | 611 255 | 59 855 670 | 7 696 389 |
| Total liabilities | (1 662 785) | (8 597 474) | (4 003 719) | (1 509 300) | (15 773 278) | (2 270 780) |
8. Going concern
The Directors have adopted the going-concern basis in preparing the financial statements.
The Company has continued to progress with the implementation of its Mine-to-Metals platinum strategy, more specifically and with reference to the above:
8.1. On 22 March 2016, the Company successfully completed the project funding for the execution and commissioning of both its surface platinum processing projects. The funding comprises a combination of senior secured debt and unsecured debt. The senior secured debt is up to a maximum of USD10 million (ZAR153 million), with an initial advance of USD3 million (ZAR49.5 million) and a possible further advance of USD2 million (ZAR30.6 million) subject to and upon the terms and conditions contained in the agreement. The Borrower has agreed to accept and utilise the initial advance on the terms and conditions contained in the agreement, and acknowledges its right to call for a further advance as provided for in the agreement, in order to fund in aggregate its obligations to execute the two projects. The unsecured debt is to a maximum of USD5 million (ZAR76.5 million). The Company also completed an equity placing of £2.5 million (ZAR55.2 million) which was completed during March 2016 as announced on 22 March 2016.
8.2 On 30 September 2015, Jubilee completed the disposal of 100% of the issued shares in Jubilee Smelting and Refining Pty Ltd ("JSR"), and 70% of the issued shares in Power Alt Pty Ltd ("PA") to Siyanda Resources Pty Ltd ("Siyanda"), through its nominated special purpose vehicle Hornbill Investments Pty Ltd ("SPV") for a consideration of, in aggregate, ZAR110.5 million (approximately £5.3 million) ("the Disposal"). The Company received of 85% of the purchase consideration in cash. Ten per cent of the remaining 15% of the purchase consideration is held in escrow in an amount approximating to £0.390 million (ZAR8.9 million), net of closing adjustments including stock and supplier adjustments.
8.3 During the period under review the Company also successfully completed a number of equity placings for cash, raising in aggregate £4.5 million, net of issue expenses.
The Directors are of the opinion that the Group and Company are funded sufficiently to enable it to continue with its operations as a going concern.
9. Discontinued operations - disposal group held for sale
|
| Year to 30 June 2016 £s | Year to 30 June 2015 £s |
| Revenue Cost of sales | 1 420 145 (682 365) | 5 160 105 (2 167 422) |
| Gross profit | 737 780 | 2 992 683 |
| Depreciation, amortisation and impairments | - | (744 361) |
| Finance costs | - | (455) |
| Interest received | 193 | 1 017 |
| Other operating expenses | (1 014 633) | (2 700 886) |
| Net loss before tax | (276 660) | (452 002) |
| Tax | - | (52 194) |
| Net loss after tax | (276 660) | (504 196) |
| Non-controlling interest | (7 089) | (124 246) |
|
| (283 749) | (628 442) |
|
The assets and liabilities of the disposal group are set out below: |
|
|
| Assets |
|
|
| Property, plant and equipment | - | 4 772 406 |
| Taxation | - | 4 015 |
| Trade and other receivables | - | 1 457 592 |
| Intangible assets | - | 1 299 374 |
| Cash and cash equivalents | - | 163 002 |
|
| - | 7 696 389 |
| Liabilities |
|
|
| Other financial liabilities | - | 290 811 |
| Trade and other payables | - | 1 264 820 |
| Deferred tax | - | 715 149 |
|
| - | 2 270 780 |
| Equity |
|
|
| Retained earnings and foreign currency translation reserve | - | (5 002 008) |
| Minority interest | - | (423 601) |
|
| - | (5 425 609) |
On 30 September 2015, Jubilee completed the disposal of 100% of the issued shares in Jubilee Smelting and Refining Pty Ltd ("JSR"), and 70% of the issued shares in Power Alt Pty Ltd ("PA") to Siyanda Resources Pty Ltd ("Siyanda"), through its nominated special purpose vehicle Hornbill Investments Pty Ltd ("SPV") for a gross consideration of, in aggregate, ZAR110.5 million (approximately £5.3 million) ("the Disposal"). The Company received of 85% of the net purchase consideration in cash ("First Payment"). Ten per cent of the remaining 15% of the purchase consideration is held in escrow in an amount approximating to £0.68 million (ZAR13 million), net of closing adjustments including stock and supplier adjustments.The board considered it prudent to impair the balance of the purchase consideration to the income statement as it is the subject of an unsubstantiated warranty claim against the Company which is rejected by the Company and all necessary steps are taken to ensure release of the amount due. Pursuant to the disposal, loans to subsidiaries in an amount of £6 179 421 had been impaired.
|
|
Year to 30 June 2016 £s |
Year to 30 June 2015 £s |
| Cash flows from discontinued operations Cash flows from operating activities Cash flows from financing activities |
(45 061) - |
(484 868) 385 971 |
| Net cash flows from discontinued operations | (45 061) | (98 897) |
| Opening cash balance on discontinued operations | 163 003 | 261 900 |
| Closing cash balance on discontinued operations | 117 942 | 163 003 |
| Consideration received |
|
|
| Cash | 4 104 068 | - |
| Asset-deferred payments | 749 241 | - |
|
| 4 853 309 | - |
|
|
|
|
| Net cash flow on acquisition |
|
|
| Cash consideration received | 4 104 068 | - |
| Cash sold | (117 942) |
|
|
| 3 986 126 |
|
| Profit/(loss) on disposal Proceeds received Net asset value/Investments |
4 853 310 (4 768 629) |
4 853 310 (9 139 476) |
|
| 84 680 | (4 286 166) |
10. Events post balance sheet
10.1 Australia - Nickel in tailings surface project
Subsequent to the period-end, Braemore Nickel (Pty) Ltd ("Braemore") has received from BHP Billion (Pty) Ltd ("BHP") a notice of termination of the Tailings Supply Agreement relating to the Nickel containing material in Western Australia. Braemore rejects the termination notice since no factual or legal basis exists for such termination. Braemore has informed BHP that it intends to initiate legal proceeding to have the termination set aside. Management assesses that this has no impact on the carrying value of the Nickel Tailing Project intangible asset (per note 8) at the date of this report.
The Company's Australian subsidiary, Braemore Nickel (Pty) Ltd continued with ongoing internal review and optimisation of the process flowsheet for the recovery of Nickel from the Leinster project tailings ("Leinster Tailings"), in particular the Company's recent flowsheet optimisation in the liberation of minerals locked in tailings. This approach is currently being implemented in the recovery of PGM in associated sulphides from the South African tailings projects, specifically targeting the beneficiation of sulphite minerals which allows for significant enhancement in concentrate grade profiles which has improved the projected target performance and profitability of these tailings.
10.2 Warrants issued and dealings in securities
The Company has received notification on 10 November 2016 from a warrant holder to exercise 25,000,000 existing warrants in the issued share capital of Jubilee at a price of 3.55p (ZAR63.90c) per warrant share. The exercise of warrant shares amounts, in aggregate, to a cash value of GBP887, 500 (ZAR16 million). The warrant shares are expected to be admitted to AIM on 17 November 2016.
The Company also issued the final 1,848,167 new Jubilee ordinary shares ("Shares") at an average issue price of 2.44 pence per share to Dr. Matthews Phosa, who has elected to receive Shares in lieu of 100% of his director's remuneration accrued to him for the period 1 October 2014 to 31 July 2016. This is the final share issuance to Dr. Phosa and concludes the program of shares in lieu of director remuneration for Dr Phosa. The shares are issued under the authority of ordinary resolution number 12 and special resolution number 2 passed at the Company's Annual General Meeting held on 27 November 2013. The issue will bring Dr. Phosa's interest in the Company to 2,834,884 Shares, being 0.3% of the issued capital of the Company. The shares are expected to be admitted to AIM on 17 November 2016.
Contacts
Jubilee Platinum plc Colin Bird/Leon Coetzer
Tel +44 (0) 20 7584 2155 / Tel +27 (0) 11 465 1913
Andrew Sarosi
Tel +44 (0) 1752 221937
Nominated Adviser
SPARK Advisory Partners Limited
Sean Wyndham-Quin/Mark Brady
Tel: +44 (0)203 368 3555
Brokers
Beaufort Securities Limited
Jon Belliss
Tel: +44 (0) 20 7382 8300
JSE Sponsor
Sasfin Capital, a division of Sasfin Bank Limited
Sharon Owens
Tel +27 (0) 11 809 7500
Annexure 1
Independent auditors' report to the members of Jubilee Platinum Plc
We have audited the Company's financial statements of Jubilee Platinum Plc for the year ended 30 June 2016, which comprise the Consolidated Statements of Comprehensive Income, Consolidated Statements of Financial Position, Consolidated Statements of Cash Flows, Consolidated Statements of Changes in Equity and Notes to the Consolidated Financial Statements set out on pages 25 to 67. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union and, as regards the parent company financial statements, as applied in accordance with the provisions of the Companies Act 2006.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of Directors and auditors
As explained more fully in the Directors' Responsibilities Statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the Group's and the parent company's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Annual Report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.
Opinion on financial statements
In our opinion:
· the financial statements give a true and fair view of the state of affairs of the Group and the parent company as at 30 June 2016 and of the Group's loss for the year then ended; and
· the Group financial statements have been properly prepared in accordance with IFRSs as adopted by the European Union; and
· the parent company financial statements have been properly prepared in accordance with IFRSs as adopted by the European Union and as applied in accordance with the provisions of the Companies Act 2006; and
· the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
· adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
· the parent company financial statements are not in agreement with the accounting records and returns; or
· certain disclosures of Directors' remuneration specified by law are not made; or
· we have not received all the information and explanations we require for our audit.
Andrew Gaskell
Senior Statutory Auditor
For and on behalf of
Saffery Champness
Chartered Accountants
Statutory Auditors
71 Queen Victoria Street
London
EC4V 4BE
11 November 2016
Annexure 2 - Headline earnings per share
Accounting policy
Headline earnings per share (HEPS) is calculated using the weighted average number of shares in issue during the period under review and is based on earnings attributable to ordinary shareholders, after excluding those items as required by Circular 2/2013 issued by the South African Institute of Chartered Accountants (SAICA).
30 June 2016 30 June 2015
| Headline loss per share comprises the following: |
|
|
| Continuing operations |
|
|
| Loss from continuing operations for the period attributable to ordinary shareholders | (3 412) | 2 910 |
| Impairment of other financial assets | 856 | 50 |
| Loss on sale of property plant and equipment | 1 | (60) |
| Loss on exchange differences | 81 | 21 |
| Headline loss from continuing operations | (2 474) | (2 897) |
| Weighted average number of shares in issue | 906 241 | 644 851 |
| Diluted weighted average number of shares in issue | 906 241 | 644 851 |
| Headline loss per share from continuing operations (pence) | (0.27) | (0.45) |
| Diluted headline loss per share from continuing operations (pence) | (0.27) | (0.45) |
| Headline loss per share from continuing operations (ZAR cents) | (5.85) | (8.09) |
| Diluted headline loss per share from continuing operations (ZAR cents) | (5.85) | (8.09) |
| Discontinued operations |
|
|
| Loss from discontinued operations for the period attributable to ordinary shareholders | (283) | (628) |
| Impairment of other financial liabilities | - | 50 |
| Headline loss from discontinued operations | (283) | (579) |
| Weighted average number of shares in issue | 906 241 | 644 851 |
| Diluted weighted average number of shares in issue | 906 241 | 644 851 |
| Headline loss per share from discontinued operations (pence) | (0.03) | (0.09) |
| Diluted headline loss per share from discontinued operations (pence) | (0.03) | (0.09) |
| Headline loss per share from discontinued operations (ZAR cents) | (0.67) | (1.62) |
| Diluted headline loss per share from discontinued operations (ZAR cents) | (0.67) | (1.62) |
| Average conversion rate used for the period under review £:ZAR | 0.04667 | 0.0555 |