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JBL
JUJLP
JBL - Jubilee - Interim Results For The Six Months Ended 31 December 2007
Jubilee Platinum Plc
Registration number: 4459850
ISIN: GB0031852162
AIM: JLP
JSE: JBL
("Jubilee" or "the Company")
13 March 2008
Interim Results for the six months ended 31 December 2007
Highlights
Tjate Platinum Project proceeded towards independent bankable feasibility study
alongside unprecedented rise in Platinum Group Metal (PGM) prices
The Company completed a capital raising of GBP11M in November 2007 to fund
feasibility study on Tjate Project
Madagascar projects progressed positively with the discovery of primary
platinum and moved to Phase two exploration on the Ambodilafa Project
Colin Bird, Chief Executive, commented: "This has been a productive and
positive period for the Company, in which we completed a successful fundraising
and intensified drilling at Tjate, progressing towards the completion of a
bankable feasibility study. During the period, we were also able to report
encouraging drilling results from our exploration projects in Madagascar,
therein underlining our expectations for these projects. We look forward to
building on this progress throughout 2008 and to the continued support of our
valued shareholders as we do so."
For further information please contact:
Colin Bird
Jubilee Platinum plc
Tel +44 (0) 20 7584 2155
Louise Goodeve / Justine Howarth
Parkgreen Communications Ltd
Tel +44 (0) 20 7851 7480
Chairman`s Statement
During the period under review the Company achieved good progress in all its
areas of operation.
Tjate Platinum Project
Drilling at the Tjate Platinum project on the Eastern Bushveld of South Africa,
returned grades generally higher than the regional average in both the Merensky
and UG2 reefs.
The Company carried out a scoping study in association with international
mining consultants Snowden Mining Industry Consultants to determine the
project`s potential viability. The project has not yet defined a SAMREC
compliant Mineral Resource Estimate, thus the financial model used in the study
does not yet comply to the principles of SAMVAL. The current phase of drilling
will culminate in a SAMREC compliant Mineral Resource Estimate. The study
indicated a Net Present Value ("NPV") of US$829 million at a 5% discount rate.
The assumptions used were conservative and little optimisation was applied. The
study demonstrated strong potential returns for the project and the results
were deemed robust by the management team. The study was for a proposed
underground mine designed to extract ore from approximately 15 % of the license
area.
Using metal prices prevalent on 28 February 2008 and keeping all other
assumptions constant, the indicative NPV of the project increases to more than
US$2.5billion. This clearly demonstrates the positive potential impact of
current metal prices to the project financials.
The Company awaits approval from the Department of Minerals and Energy and The
South African Reserve Bank for transactions, which will increase the Company`s
direct and indirect interest in Tjate to 63%.
Following the successful scoping study, the Company elected to proceed to
bankable feasibility study. Consequently a private placing was completed in
November 2007 raising some GBP11 million through the issue of 13 million
ordinary shares. The South African shareholding base increased from
approximately 14% to 23% in line with the Company`s aim to improve the balance
of shareholders between the two listings on AIM and JSE Limited.
The Company accelerated drilling at Tjate, increasing the number of drill rigs
on the site from 3 to 6 and an agreement was reached with Mineral Corporation
Consultancy (Pty) Ltd in which they will assist the Company in carrying out a
best-practice feasibility study.
Madagascar Operations
In Madagascar, all our projects advanced favourably during the period, towards
the common objective of large-scale open-pittable mining projects.
Ambodilafa reported a PGM intersection of 3.99 g/t 4E (platinum, palladium,
rhodium and gold) over 0.89 metres on its eastern PGM anomaly target and good
base metal grades (0.45% nickel (Ni) and 0.16% copper (Cu)) on the western base
metal target.
Londokomanana returned positive drilling results from its various locations and
the newly tested Mavoandro area showed grades of 0.48% Ni and 0.56g/t 3E
(platinum, palladium and gold).
The aggressive exploration programme for 2008 is well funded and the intent now
is to identify areas for closer spaced drilling in order to advance the
projects along the value curve. Our results to date support the view that the
areas we have under licence have the potential to progress to large-scale
surface mining ventures.
Financial Review
The interim accounts for the six months to 31 December 2007 show an operating
loss of GBP759k compared to an operational loss of GBP556k for the six months
to 31 December 2006. The loss per share for the period under review is 0.64p
against 0.58p for the interim period ending 31 December 2006.
The platinum industry has undergone major changes during the period under
review. The platinum price has broken through the US$2,100 per oz level caused
not least by power shortages in South Africa. Additionally, several producers
reported production disruption for a variety of other reasons whilst metal
demand continued to rise; all of the aforementioned exerting pressure on the
price.
Our feasibility study on Tjate will consider own power generation as an
alternative to ESKOM power option, but the Company does not anticipate the
current power shortages to remain a threat to projects coming to production in
the medium term.
Jubilee is a broad based explorer with a developing platinum mine project
(Tjate) being evaluated in positive times for the platinum industry.
Similarly, Jubilee`s early-stage projects in Madagascar, have the potential to
fit the requirement - i.e. wide open-pittable and easily processed deposits -
sought by the major base metal producers.
The Board and Management intend to continue developing this portfolio of assets
and unlock shareholder value, which the Company strongly believes exists.
Malcolm Burne
Chairman
13 March 2008
Consolidated Income Statement Six months ended Year ended
31 Dec 2007 31 Dec 30 Jun 2007
Unaudited 2006 Audited
GBP000` Unaudited GBP000`
GBP000`
Continuing operation
Other income 18 75 0
Administration expenses (777) (631) (1,968)
Loss from operations (759) (556) (1,968)
Finance income 179 157 348
Finance cost 0 (60) (145)
Share of operating loss in associate (19) (15) (33)
Loss before income tax expense (599) (474) (1,798)
Income tax expense 0 0 0
Loss for the period after income tax (599) (474) (1,798)
expense from continuing operations
Minority interest
Equity 21 15 101
Loss attributable to members of (578) (459) (1,697)
Jubilee Platinum Plc
Number of shares in issue 101,217,408 79,138,974 85,817,408
Weighted average number of shares in 90,378,278 78,884,602 79,839,600
issue
Diluted weighted average number of 93,023,496 81,148,888 82,305,193
shares in issue
Basic loss per share (pence) (0.64) (0.58) (2.13)
Diluted loss per share (pence) (0.64) (0.58) (2.13)
Headline loss per share (pence) (0.64) (0.58) (2.13)
Consolidated Balance Sheet
31 Dec 2007 31 Dec 30 Jun 2007
Unaudited 2006 Audited
GBP000` Unaudited GBP000`
GBP000`
Assets
Non-current assets
Intangible assets 5,792 4,389 5,344
Property, plant and equipment 80 47 56
Investment in associates 2,473 2,487 2,392
Other debtors 3,044 0 1,999
Total non-current assets 11,389 6,923 9,791
Current assets
Trade and other receivables 4,618 712 3,711
Cash and cash equivalent 13,565 7,269 7,495
Other debtors 1,377 0 1,999
Total current assets 19,560 7,981 13,205
Total assets 30,949 14,904 22,996
Current liabilities
Trade and other payables (196) (1,132) (3,339)
Loans and borrowings 0 (3,519) 0
Total current liabilities (196) (4,651) (3,339)
Total liabilities (196) (4,651) (3,339)
Net current assets 19,364 3,330 9,866
Net assets 30,753 10,253 19,657
Equity
Called up share capital 1,012 791 858
Share premium account 30,994 12,341 18,343
Share based payment reserve 852 473 703
Currency translation reserve (732) (566) (819)
Other reserves 1,038 0 1,761
Retained earnings (4,324) (2,775) (3,768)
Equity attributable to equity 28,840 10,264 17,078
holders of the parent
Equity interest of minorities 1,913 (11) 2,579
Total equity 30,753 10,253 19,657
Consolidated Statement of Changes in Equity
Share Share Share Other Accumula Total
Capital Premium based reserv ted loss
payment es
reserve
GBP000` GBP000` GBP000` GBP000 GBP000` GBP000`
`
Balance at 1 July 786 11,859 250 0 (2,608) 10,287
2006
Issue of share 5 0 0 0 0 5
capital
Premium on issue 0 482 0 0 0 482
of share capital
Share-based 0 0 223 0 0 223
payment charge
Net loss for the 0 0 0 0 (459) (459)
period
Currency 0 0 0 0 (274) (274)
translation
difference
Balance at 31 791 12,341 473 0 (3,341) 10,264
December 2006
Issue of share 67 0 0 0 0 67
capital
Premium on issue 0 6,137 0 0 0 6,137
of share capital
Commission on 0 (135) 0 0 0 (135)
issue of shares
Share-based 0 0 230 0 0 230
payment charge
Other reserves 0 0 0 1,761 0 1,761
Net loss for the 0 0 0 0 (1,238) (1,238)
year
Currency 0 0 0 0 (8) (8)
translation
difference
Balance at 30 June 858 18,343 703 1,761 (4,587) 17,078
2007
Issue of share 154 0 0 0 0 154
capital
Premium on issue 0 13,368 0 0 0 13,368
of share capital
Commission on 0 (717) 0 0 0 (717)
issue of shares
Share-based 0 0 149 0 0 149
payment charge
Other reserves 0 0 0 (723) 22 (701)
adjustment
Net loss for the 0 0 0 0 (578) (578)
year
Currency 0 0 0 0 87 87
translation
difference
Balance at 31 1,012 30,994 852 1,038 (5,056) 28,840
December 2007
Consolidated Cash Flow Statement Six months ended Year
ended
31 Dec 31 Dec 30 Jun
2007 2006 2007
Unaudited Unaudited Audited
GBP000` GBP000` GBP000`
Cash flows from operating activities
Loss for the year (759) (556) (1,968)
Depreciation 3 1 25
Amounts written off exploration 35 - 220
expenditure
Other income - (75) -
Decrease in creditors (139) (391) (6)
Share based payments 149 211 453
Interest received 179 157 271
Interest paid - (60) (145)
Net cash outflow from operating (532) (713) (1,150)
activities
Cash flows utilised by investing
activities
Increase in loans and investments (3,502) - (2,864)
Repayment of funds relating to investment (191) - -
aborted
Purchase of intangible fixed assets (457) (355) (574)
Purchase of tangible fixed assets (27) 4 (35)
Net cash outflow from investing (4,177) (351) (3,473)
activities
Cash flows from financing activities
Proceeds from issue of new borrowings - 3,126 2,026
Repayment of borrowings (2,026) - -
Issue of shares and warrants 12,805 539 5,424
Net cash inflow from financing activities 10,779 3,665 7,450
Net increase in cash and cash equivalents 6,070 2,601 2,827
Cash and cash equivalents at the 7,495 4,668 4,668
beginning of the period/year
Cash and cash equivalents at the end of 13,565 7,269 7,495
the period/year
Notes
1. The interim financial information for the six months ended 31 December
2007 has been prepared in accordance with the recognition, measurement and
presentation and disclosure requirements of IAS34 Interim Financial
Reporting. The accounting policies have been applied consistently through
the Group and are consistent with those for the year ended 30 June 2007.
The Financial Statements were approved by the board on 12 March 2008.
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.
Six months ended Year ended
31 Dec 31 Dec 30 Jun 2007
2007 2006 GBP000`
GBP000` GBP000`
Loss on ordinary activities
(excluding associates)
United Kingdom (506) (279) (682)
South Africa (11) (161) (805)
Madagascar 2 (19) (272)
Mauritius (65) - (6)
(580) (459) (1,765)
Loss on ordinary activities in
associates
South Africa (19) (15) (33)
Total loss before minority (599) (474) (1,798)
interests
Net assets by location (excluding
associates)
United Kingdom 21,489 4,879 10,196
South Africa 1,390 1,110 996
Madagascar 2,645 1,788 2,076
Mauritius 2,756 - 3,997
28,280 7,777 17,265
Net assets in associates
South Africa 2,473 2,487 2,392
Total net assets 30,753 10,264 19,657
Exploration expenditure
Madagascar 490 420 5,794
Total exploration expenditure 490 420 5,794
3. The Group recognised total expenses of GBP149,114 (2006: GBP210,895)
related to share-based payment transactions during the six months ended 31
December 2007.
4. The Group reviewed the impairment position of its property holdings and
decided to impair fully the Itsindro exploration assets held in its 49%
owned subsidiary in Mauritius, Itsindro (Mauritius) Ltd. The total
impairment charge amounted to GBP34,767.
5. TransAsia Minerals Ltd ("TransAsia") elected not to continue with their
investment in Itsindro Mauritius Ltd. Consequently, funds advanced to
date by TransAsia that were not expended on the project totalling
US$381,124 have been returned to TransAsia and the debtor of US$2,500,000
receivable by Itsindro Mauritius Ltd from TransAsia has been cancelled.
The balance of GBP21,317 outstanding in other reserves relating to the
Itsindro project has been transferred to the profit and loss reserve in
the group accounts. The balance of GBP1,038,326 currently being carried
forward in other reserves relates to the other investment made by
TransAsia in Antsahabe Mauritius Ltd as detailed in note 11 of the
Financial Statements to 30 June 2007.
6. Loss per share
Six months ended Year ended
31 Dec 31 Dec 30 Jun 2007
2007 2006
Loss for the financial GBP577,591 GBP459,216 GBP1,697,363
period
Weighted average number of 90,378,278 78,884,602 79,839,600
shares in issue
Basic loss per share (pence) (0.64) (0.58) (2.13)
7. No dividend was declared during the period ended 31 December 2007
(December 2006: Nil).
8. The Group issued 15,400,000 shares during the period under review, raising
GBP12,805,272 net of costs of GBP717,056.
Date issued Number of shares Price per share
(pence)
28 September 2007 200,000 28.00
(exercise of options)
28 September 2007 2,000,000 81.69
12 November 2007 13,000,000 98.00
19 November 2007 200,000 89.00
9. Copies of 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.
13 March 2008
Sponsor: Investec Bank Limited
Date: 13/03/2008 08:59:48 Produced by the JSE SENS Department.
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