| Mon 17 Sep 2007, 8:00 | | JBL - Jubilee Platinum Plc - Provisional results F |
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JBL
JUJLP
JBL - Jubilee Platinum Plc - Provisional results For the year ended 30 June 2007
Jubilee Platinum Plc
AIM: JLP
JSE: JBL
Registration number: 4459850
ISIN: GB0031852162
("Jubilee" or "the Company")
(COMPANY NO: 4459850)
Provisional results FOR THE YEAR ENDED 30 June 2007
Highlights
Independent scoping studies on Tjate project demonstrated positive results for a
stand-alone operation treating only the Merensky reef and justified further
drilling to bankable feasibility study.
The Company conditionally acquired up to a 48.7% direct and indirect beneficial
interest in the Tjate project with the potential for conditionally increasing it
further to 58.5%.
Drilling commenced and three holes have been completed on the Ambodilafa project
(JV with Implats). Massive, semi-massive and net-textured nickel-copper
sulphide mineralization intersected in hole ALF003.
Following field exploration and re-interpretation of geophysics data on
Ambodilafa, the Company resumed drilling deeper on the initial drill hole
ALF001, which has now intersected sulphides. Samples have been submitted for
assay.
The Company entered into a JV agreement with TransAsia Minerals Limited on its
Londokomanana and Itsindro projects.
Soil sampling and ground geophysical surveys on Londokomanana project have
identified new copper anomaly zones and drill targets in the Mavoandro (northern
Londokomanana) and Antsahabe prospects.
Londokomanana`s new-season drilling programme commenced in May 2007. Hole
ANT009 intersected 39 metres of nickel-copper sulphide mineralization. Samples
have been submitted for assay.
The Company increased its interest in its Madagascan subsidiary to 100%.
The Company`s shares were dual listed on the JSE Limited.
Financial Review
The loss for the year after taxation was GBP1,749,096 (2006: GBP738,409). The
loss per share has increased from 0.83 pence in 2006 to 2.09 pence in 2007. The
current year`s loss has increased due to one-off listing costs (GBP311,643)
attributable to the Company`s admission to trading on the main board of JSE Ltd
last December and a share-based charge of GBP452,786 charged to the group Profit
and Loss account in line with the requirements of IFRS2. The loss for the
current year also includes a charge of GBP220,313 relating to impairment of
intangible assets following a review of the Group`s intangible asset base in
accordance with accounting policies.
Exploration and evaluation expenses capitalised in the year amounted to
GBP573,911 compared to GBP1,125,800 in the year ended 30 June 2006. This
reduction in exploration costs is mainly due to joint venture projects, which
have lowered the Company`s contribution to exploration costs despite advancing
exploration activity.
5,025,577 ordinary 1 pence shares were issued during the year raising
GBP5,185,673 to fund drilling and exploration costs for the Company`s flagship
Tjate project located in the Eastern Bushveld of South Africa, the Group`s
wholly owned Madagascan exploration projects and general corporate overheads.
The GBP1,500,000 8% Convertible Loan Notes issued to City Natural Resources High
Yield Trust Plc was redeemed in June 2007 through the issue of a further
2,142,857 ordinary shares.
In October 2006, Jubilee entered into an agreement with TransAsia Minerals
Limited ("TransAsia") in respect of its Londokomanana and Itsindro properties.
TransAsia agreed an aggregate of US$10,000,000 - US$7,000,000 on Londokomanana
and US$3,000,000 on Itsindro - to fund exploration over a three-year period for
a 51% interest in these two properties.
As part of its funding commitment, TransAsia subscribed for US$1,000,000 of
Jubilee shares equivalent to 490,000 Ordinary 1 pence shares at GBP1.10 per
share and also advanced further cash of US$1,000,000 for initial Londokomanana
and Itsindro exploration.
On 7 December 2006, Jubilee`s shares were admitted for trading on the main board
of JSE Limited. This decision to dual list its shares was predicated on the
progress of Tjate and the Company`s recognition that South African investors
should be given the opportunity to invest in the Company`s emerging platinum
portfolio.
The Company, through its wholly owned South African subsidiary Windsor Platinum
Investments (Proprietary) Limited, entered into a US$16 million convertible loan
note agreement with Mitsubishi Corporation. This agreement was precedent on
Windsor purchasing further interest from Tjate shareholders, but was frustrated
as the shareholders in Tjate Platinum Corporation (Pty) Ltd opted for shares in
the Company instead of cash as consideration for their interest in Tjate.
Operations Review
SOUTH AFRICA
Tjate Project
Scoping studies on the Tjate project, based on the results of the first seven
boreholes DT1 to DT7, were undertaken in June 2006 and February 2007 by
independent consulting engineers. The studies showed that the project has to
date a potential resource (not yet Samrec/JORC compliant) of 25 million tonnes
of Merensky Reef at a grade of 5.7 g/t 3PGE (platinum palladium rhodium) + Au
(gold) and 10 million tonnes of UG2 at a grade of 6.4 g/t 3PGE+Au. The studies
demonstrated positive results over a range of scenarios for the project as a
stand-alone operation treating only the shallower Merensky reef and concluded
that a programme of further exploration and pre-feasibility/bankable feasibility
studies was justified. The Company increased the number of drilling rigs on site
to three and to date a further five holes (DT8 to DT13) with deflections have
been or were being drilled. Hole DT11 has been planned as a deep hole (1200m) to
Merensky reef.
MADAGASCAR
Ambodilafa Project (JV with Impala Platinum Holdings)
The Company drilled three shallow holes in the southernmost sector of its
Ambodilafa property in southeastern Madagascar, to test a large VTEM geophysical
anomaly and a geochemical anomaly on the VTEM anomaly`s western fringe. Hole
ALF003, which was drilled in the geochemical anomaly intersected several
intersections of massive, semi massive and net-textured disseminated nickel
copper sulphide mineralization from a depth of 24m to 220m. Higher-grade
intersections included 2.2m at 1.29%Ni, 0.31%Cu, and 0.31g/t 2PGE+Au and 6.5m at
0.61%Ni, 0.30%Cu and 0.12g/t 2PGE+Au. Holes ALF001 and ALF002, which were
drilled in the geophysical anomaly to 200m depth (the limit with the equipment
then available) did not intersect significant mineralization. However, follow up
fieldwork in the area, including geochemical sampling and re-interpretation of
the original VTEM and regional geophysical data provided new geological
information on the area and delineated new potential nickel-copper-PGE drill
targets. On this basis and with the arrival of more equipment, the Company
resumed drilling deeper on ALF001 to 400m. Sulphide mineralization has been
intersected and samples have been submitted for analysis. Drilling commenced on
hole ALF004 located on the eastern fringe of the geophysical anomaly.
Londokomanana Project
On the Londokomanana project, in-fill soil geochemistry was carried out on the
Mavoandro (northern Londokomanana) and Antsatratakona (northeast Londokomanana)
prospects. Historical exploration data on the latter showed a strong airborne
geophysics E-M anomaly some 2 kilometres long and 800 metres wide. The
geochemistry on Antsatratakona showed little or no anomalies and the E-M anomaly
is believed to be associated with a strong magnetite bearing gneiss identified
from concurrent mapping. Further work on Antsatratakona is not being considered
at this stage.
On Mavoandro, the copper geochemistry defined an anomalous zone about 2
kilometres of strike and up to 500 metres wide, strongly associated with
ultramafic lithology. This was followed up with ground fixed-loop-time-domain
geophysics surveys, which also covered soil-sampled areas on the Antsahabe
prospects: namely Antsahabe south and Borokely (southernmost prospect in
Londokomanana). The axes of E-M conductivities observed, correlated well with
the soil sampling data. The Company delineated drill targets and commenced a
fence-line drilling programme in May 2007 with two drilling rigs on Anstahabe
south and Mavaoandro. Three holes on Antsahabe south ANT007 to ANT009 were
completed. ANT009 intersected 33 meters of up to 7% disseminated sulphides
between 30 and 63 metres depth. The samples have been submitted for assay. A
further six holes in Antsahabe are scheduled for drilling this season. On
Mavaoandro, drilling commenced in the northern section. To date three holes
MAV001 to MAV003 have been completed all to 300 metres final depth (the limit
with the equipment available). MAV004 is in progress. Sulphide mineralization
has been intersected. The samples have been submitted for assay including whole
rock analysis in order to identify possible komatiitic lithology, a marker for
potential basal sulphide mineralisation.
Itsindro Project
In March 2007, the Company undertook a soil sampling campaign over two
prospects: Itsindro North and Itsindro South on its Itsindro property. Earlier
airborne and ground magnetic geophysical surveys had identified early and late
channel E-M conductors and strong magnetic conductors over the prospects. On the
basis of the results the area has been classified as low priority
Lavatrafo Project
Additional soil geochemical sampling was carried out on the Lavatrafo prospect
(central Lavatrafo), on Ranomena (south Lavatrafo) and Amboasary (north
Lavatrafo) prospects, of which the latter two are extensions to the ultramafic
Lavatrafo formation. Drilling was undertaken on all three prospects on targets
that were coincident with copper soil anomalies and in the case of Ranomena,
coincident also with earlier trenching results, which showed elevated nickel and
PGE values. On Lavatrafo, hole LAV007 intersected 19 metres of nickel copper and
PGE mineralization grading 0.53 g/t 3E (platinum palladium and gold and 0.18%
nickel, including 3 metres grading 1.13g/t 3E and 0.27% Nickel and 0.19% copper.
On Ranomena, hole RAN001 intersected 49m of sulphide mineralization assaying
0.43g/t 3E and 0.28% nickel. Further drilling is planned for this prospect. On
Amboasary, hole AMB001 intersected two 9-metre intervals of PGE and nickel-
copper sulphide mineralization at 119 and 200 metres, grading respectively 0.22%
nickel and 0.1g/t 3E and 0.21% nickel and 0.13g/t 3E. Further drilling is
planned for this prospect
Belobaka Project
The Company undertook a soil geochemical sampling programme on the Belobaka
prospect, a large 20 kilometre by 7 kilometre wide mafic-ultramafic intrusive
located some 150 kilometres west of the capital Antananarivo. The target is
copper-nickel-cobalt sulphide mineralization.
Previous stream sediment, soil sampling and airborne geophysics by others
identified a strongly open-ended anomalous copper, nickel and cobalt zone over a
2-kilometre square area. This prospect, which was targeted previously as a
lateritic nickel style deposit was abandoned due to a lack of evidence for "iron
pan" and pisolitic laterite development. The current programme is targeting
sulphides.
JUBILEE PLATINUM PLC
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 30 JUNE 2007
Year ended Year ended
30 June 30 June
2007 2006
Restated
GBP GBP
Administrative expenses (1,889,903) (945,190)
Loss from operations (1,889,903) (945,190)
Finance income 319,056 282,916
Finance costs (144,955) (51,025)
Share of operating loss in associate (33,294) (25,110)
Loss before income tax expense (1,749,096) (738,409)
Income tax expense - -
Loss for the period after income tax (1,749,096) (738,409)
expense
Minority interests:
Equity 77,622 121,769
Loss attributable to members of Jubilee (1,671,474) (616,640)
Platinum plc
Basic loss per share (pence) (2.09) (0.83)
Diluted loss per share (pence) (2.09) (0.83)
JUBILEE PLATINUM PLC
CONSOLIDATED BALANCE SHEET
AS AT 30 JUNE 2007
Year ended Year ended
30 June 30 June 2006
2007 Restated
GBP GBP
Assets
Non-current assets
Intangible assets 5,343,942 3,969,054
Property, plant and equipment 56,251 51,634
Investments in associates 2,392,323 2,620,442
Total non-current assets 7,792,516 6,641,130
Current assets
Trade and other receivables 7,705,311 537,349
Cash and cash equivalent 7,497,619 4,668,199
Total current assets 15,202,930 5,205,548
Total assets 22,995,446 11,846,678
Current liabilities
Convertible loan notes - (1,500,000)
Trade and other payables (3,341,107) (155,939)
Loans and borrowings -
Total current liabilities (3,341,107) (1,655,939)
Total liabilities (3,341,107) (1,655,939)
Net current assets 19,654,339 10,190,739
Net assets 19,654,339 10,190,739
Equity
Called up share capital 858,174 786,489
Share premium account 20,163,298 11,859,073
Share based payment reserve 702,453 249,667
Currency translation reserve (736,486) (537,568)
Profit and loss account (3,742,472) (2,070,997)
Equity attributable to equity holders of 17,244,967 10,286,664
the parent
Equity interests 2,409,372 (95,925)
Total equity 19,654,339 10,190,739
JUBILEE PLATINUM PLC
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2007
Share Share Share Accumulated Total
Capital Premium based loss
payment
reserve
GBP GBP GBP GBP GBP
Balance at 1 July 699,228 8,256,314 66,250 (1,687,677) 7,334,115
2005
Issue of share 87,261 - - - 87,261
capital
Premium on issue of - 3,602,759 - - 3,602,759
share capital
Share issue - - 183,417 - 183,417
expenditure written
off
Net profit/(loss) - - - (616,640) (616,640)
for the year
Currency - - - (304,248) (304,248)
translation
difference
Balance at 30 June 786,489 11,859,073 249,667 (2,608,565) 10,286,664
2006
Issue of share 71,685 - - - 71,685
capital
Premium on issue of - 8,304,225 - - 8,304,225
share capital
Share issue - - 452,786 - 452,786
expenditure written
off
Net profit/(loss) - - - (1,671,474) (1,671,474)
for the year
Currency - - - (198,919) (198,919)
translation
difference
Balance at 30 June 858,174 20,163,298 702,453 (4,478,958) 17,244,967
2007
JUBILEE PLATINUM PLC
CASH FLOW STATEMENT
AS AT 30 JUNE 2007
Year ended Year ended
Note 30 June 30 June
s
2007 2006
restated
GBP GBP
Cash flow from operations 5 (1,181,648) (867,527)
Interest received 242,466 282,916
Interest paid (144,955) (7,104)
Net cash outflow from operating (1,084,137) (591,715)
activities
Cash flows utilised by investing
activities
Increase in loans and investment (2,930,103) -
Purchase of intangible fixed assets (573,911) (1,125,800)
Purchase of tangible fixed assets (35,196) (13,635)
Net cash outflow from investing (3,539,210) (1,139,435)
activities
Cash flow from financing activities
Proceeds from issue of new 2,026,755 1,500,000
borrowings
Issue of shares and warrants 5,423,606 264,196
Net cash inflow from financing 7,450,361 1,764,196
activities
Net increase/(decrease) in cash and 2,827,014 33,046
cash equivalents
Cash and cash equivalents at the 4,668,199 4,635,153
beginning of the year
Cash and cash equivalents at the 7,495,213 4,668,199
end of the year
JUBILEE PLATINUM PLC
NOTES TO THE GROUP PROVISIONAL RESULTS FOR THE YEAR ENDED
30 JUNE 2007
Basis of preparation and accounting policies
The financial information for the year ended 30 June 2007 has been prepared on
the historical cost basis and is in accordance with the recognition and
measurement criteria of the International Financial Reporting Standards and its
Interpretations adopted by the International Accounting Standards Board and the
disclosure requirements of IAS34 - Interim Financial Reporting. The accounting
policies have been applied consistently throughout the Group and are consistent
with those for the financial year ended 30 June 2006 except for compliance with
IFRS. Consequently, the prior year figures have been restated and this resulted
in reversing the goodwill amortisation charge of GBP65,755 and recognising
expenses relating to share based payments of GBP183,417 for the year ended 30
June 2006. The restated loss, attributable to Jubilee shareholders for the year
ended 30 June 2006 was GBP616,640 and the adjusted Group net assets were
GBP10,286,664.
Balance sheet
The value of the Group`s exploration and evaluation intangible assets at 30 June
2007 was 24.87 pence per share (2006: 21.59 pence per share), calculated on the
weighted average number of shares of 82,305,192 (2006:76,411,257)
Income statement
The headline loss for the financial year 2007 was 2.09 pence (2006: 0.83 pence)
calculated on a weighted average number of shares of 82,305,192 (2006:
76,411,257).
There were no dividends paid or declared
Segment reporting
Business segments
The Group`s only business segment is the exploration for, 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.
2007 2006
GBP GBP
Profit/(loss) on ordinary activities
(excluding associates)
United Kingdom (675,017) (104,958)
South Africa (805,624) (407,189)
Madagascar (229,564) (79,383)
Mauritius (5,597) -
(1,715,802) (591,530)
Profit/(loss) on ordinary activities
in associates
South Africa (33,294) (25,110)
Total profit before minority (1,749,096) (616,640)
interests
Net assets by location (excluding
associates)
United Kingdom 10,195,923 2,635,755
South Africa 995,430 3,525,551
Madagascar 2,075,490 1,408,991
Mauritius 3,995,173 -
17,262,016 7,570,297
Net assets in associates
South Africa 2,392,323 2,620,442
2,392,323 2,620,442
Total net assets 19,654,339 10,190,739
Exploration expenditure
South Africa - 199,424
Madagascar 573,911 926,376
Total exploration expenditure 573,911 1,125,800
Cash flow statement
Reconciliation of net loss for the year to cash utilized by operations
2007 2006
GBP GBP
Loss for the year (1,889,903) (945,190)
Depreciation 24,619 9,937
Amounts written off exploration 220,313 234,800
expenditure
Increase in debtors - (356,547)
Increase in creditors 10,537 6,056
Share based payments 452,786 183,417
Net cash outflow from continuing (1,181,648) (867,527)
operating activities
Capital and reserves
Shares issued
During the year ended 30 June 2007 7,168,434 (2006: 8,726,146) ordinary shares
were issued for a cash consideration of GBP5,185,673 (2006: 3,690,020).
Share options and warrants
The Company issued the following share options:
Date granted Period Exercise Number of
Exercisable price per options
share
6 September 10 years 78p 25,000
2006
7 September 2 years 80p 200,000
2006
7 September 2 years 100p 120,000
2006
Translation reserve
The translation reserve comprises all foreign exchange differences arising from
the translation of the financial statements of foreign operations that do not
have a UKGBP functional currency. Exchange differences arising are classified
as equity and transferred to the Group`s translation reserve.
Financial statements
The provisional financial statements have not been audited. Audited financial
statements compliant with the Companies Act and International Financial
Reporting Standards IFRS will be issued to shareholders in October 2007.
Directorate
There have been no changes in the board of directors during the year ended 30
June 2007.
Signed on behalf of the board
Malcolm Burne Colin Bird
Chairman Chief Executive Officer
14 September 2007
Date: 17/09/2007 08:00:02 Produced by the JSE SENS Department.
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