| Fri 30 Sep 2011, 13:00 | | JBL - Jubilee Platinum Plc - Reviewed abridged results for the 12 months ended |
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JBL
JUJLP
JBL - Jubilee Platinum Plc - Reviewed abridged results for the 12 months ended
30 June 2011
Jubilee Platinum Plc
("Jubilee" or "the Company" or "the Group")
Registration number: 4459850
Incorporated in England and Wales
JSE share code: JBL
ISIN: GB0031852162
AIM share code: JLP
Audited abridged results for the 12 months ended 30 June 2011
The Board of Jubilee Platinum, the AIM traded and JSE listed mine to metal
specialist, is pleased to report positive operating results for its financial
year ending 30 June 2011. The revenue from and gross profits of the Company have
increased due mainly to the expanded Middelburg smelting operations. Revenue
increased 480% to GBP5.503 million (GBP0.95 million: 2010) and gross profits
increased 450% to GBP2.739 million (GBP0.492 million 2010). The Board expects
profitability and revenues to rise as the Company continues to drive the
expansion in its smelting operations.
The Company incurred a net operating loss as a result mainly of an increase in
expenditure on expanding the smelting operations. While installing and ramping
up the expansion to full production from its newly installed 5MW AC arc furnace,
the Company was required to pay for the full 11MW output of its power generator,
which was secured to provide for the expansion plans. Post this period, the
expansion drive is continuing to optimise the cost usage of this power.
The Company made significant progress with the expansion and optimisation of its
smelter operations while continuing to invest in both the short term mining and
exploration activities through its subsidiary Maude Mining and its longer term
Tjate platinum project. This has been achieved within a challenging business
environment with the continued pressure on world capital markets.
Year`s Highlights include:
- Installation of the new 5MW AC ferroalloy furnace;
- Ramp up of ferronickel production commenced;
- Alliance Agreements to utilize ConRoast process with Sylvania Resources and
Northam Platinum;
- Completed 14-hole infill drilling on Tjate;
- Mining Right Application submitted for Tjate project;
- Environmental Impact Assessment submitted for Mining Right Application for
Bokfontein and Elandsdrift;
- Platinum and chrome prospecting rights applied for new portions (64) on
Bokfontein farm;
- Commenced Economic Evaluation and Engineering Study on Leinster Nickel
Tailings project; and
- Ambodilafa drill contract awarded to local Madagascan company.
The platinum market has been robust throughout the period under review,
reflecting the strong fundamentals supporting the metal. The prospects for the
metal remain outstanding and the Company`s acquisition of Braemore and ConRoast
was both timely and well judged.
Jubilee`s Middelburg smelter complex is demonstrating capability that will
complement that of ConRoast. The Company has continued to invest in the
expansion of the smelter operations and has achieved, post the period under
review, a total installed AC arc furnace capacity of 10MVA. The revenues
generated from the operation are in line with the growth in the installed
capacity as we ramp up the new furnace. The complex has the capacity to treat
and reclaim many metals and is ideally situated to treat slags, concentrates,
residues and dumps from both the platinum and ferroalloy industry for
significant benefit to the smelting company.
The power generation company Power Alt (Pty) is performing to expectation. This
facility provides a significant offset against municipality electrical cost and
as a separate cost centre presents many options for expansion and sharing.
However, with the current furnace expansion programme, the available power will
be committed to our own operations. The decision to purchase an interest in the
station was for security of supply and this objective has been met together with
an offset reduction in the cost of energy, which is the major direct cost in
smelting.
Platinum group metals (PGMs) contained in chrome present a unique opportunity to
ConRoast since the process is quite capable of treating a `dirty` PGM bearing
chrome concentrate, which current industry installed capacity can only handle in
small quantities. In February 2011, Maude Mining submitted Environmental Impact
Assessments in respect of its PGM Mining Right Applications for its Bokfontein
and Elandsdrift properties. Both these properties contain platinum bearing
chrome ore at and near surface, which offers Jubilee the opportunity to access
near term platinum concentrates to further supplement the current smelter off
take contracts from third party producers.
The Company continued with the Tjate project and drilled 14 holes to Merensky
and UG2 to close drill spacing, which better defined the geological model and
the requirements for subsequent infill drilling for ore resource statements.
Tjate Platinum Corporation is currently in the process of applying for a mining
right.
For further information, please contact:
Colin Bird/Leon Coetzer/ Andrew Sarosi
Jubilee Platinum plc
Tel +44 (0) 20 7584 2155 / Tel +27 (0)11 465 1913 / +44 (0) 1752 221937
Matthew Robinson/Rose Herbert - corporate finance
Joanna Weaving - corporate broking
finnCap Ltd
Tel +44 (0) 20 7600 1658
Jerry Keen/ Edward Mansfield
Shore Capital Stockbrokers Limited (Joint Broker)
Tel: +44 (0) 20 7 408 4090
Leonard Eiser /Sharon Owens
Sasfin Capital
Tel +27 (0) 11 809 7500
Nick Rome/Shabnam Bashir
Bishopsgate Communications Ltd
Tel +44 (0) 20 7562 3350
Reviewed Provisional Consolidated statements of comprehensive income
for the year ended 30 June 2011
Reviewed Audited
year to 30 year to 30
June 2011 June 2010
GBP`000 GBP`000
Revenue 5,503 950
Cost of sales (2,764) (458)
Gross profit 2,739 492
Negative Goodwill - 1,615
Other administrative expenses (9,562) (4,503)
Total administrative expenses (9,562) (2,888)
Operating loss (6,823) (2,396)
Finance income 149 168
Finance cost (648) -
Loss before tax expense (7,322) (2,228)
Tax - -
Total loss for the year (7,322) (2,228)
Total comprehensive income attributable to:
- Equity shareholders (6,250) (2,228)
- Non-controlling interests (1,072) -
OTHER COMPREHENSIVE INCOME
Exchange gain on translation of foreign subsidiaries 1,640 3,611
Total comprehensive income for the year (5,682) 1,383
Attributable to Equity holders of the parent (4,610) 1,383
Non-controlling interests (1,072) -
Earnings per share
Basic and diluted loss per share (pence) (3.77) (1.35)
Reviewed Provisional Consolidated statements of financial position as at 30 June
2011
Reviewed Audited
year to year to
30 June 2011 30 June 2010
GBP`000 GBP`000
ASSETS
Non-current assets
Intangible assets 82,381 80,706
Property, Plant and equipment 14,563 112
Investments in subsidiaries - -
Investments in associates - -
Goodwill 1,199 -
Total non-current assets 98,143 80,818
Current assets
Trade and other receivables 6,978 8,359
Inventory 830 682
Cash and cash equivalents 2,007 12,997
Other receivables 17 -
Total current assets 9,832 22,038
TOTAL ASSETS 107,975 102,856
LIABILITIES
Non-current liabilities
Loans to and from related parties (1,280) -
Long term Liabilities (3,382)
Total non-current liabilities (4,662) -
Current liabilities
Deferred tax (16,575) (16,575)
Contingent/deferred consideration - (1,400)
Trade and other payables (3,892) (1,731)
Short term Liabilities (102) -
Total current liabilities (20,569) (19,706)
TOTAL LIABILITIES (25,231) (19,706)
NET ASSETS 82,744 83,150
EQUITY
Share capital 2,565 2,545
Share premium 57,595 56,977
Merger reserve 23,184 23,184
Share based payments reserve 5,171 3,005
Currency translation reserve 12,027 10,387
Retained earnings (19,198) (12,948)
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT 81,344 83,150
Equity interest of minorities 1,400 -
NET EQUITY 82,744 83,150
Reviewed Provisional Consolidated Statement of Cash flows for the year ended 30
June 2011
Reviewed Audited
year to year to
30 June 2011 30 June 2010
GBP`000 GBP`000
Cash flow from operating activities (3,430) (9,428)
Cash flow from investing activities (8,709) (8,295)
Cash flow from financing activities 618 22,918
Net movement in cash and cash equivalents for
the year (11,521) 5,195
Cash and cash equivalents at beginning of the year 12,997 7,641
Effects of foreign exchange on cash and cash
equivalents 531 161
Cash and cash equivalents at the end of the year 2,007 12,997
Reviewed Provisional Consolidated statement of changes in equity for the year
ended 30 June 2011
Share Share Merger
capital premium reserve
Consolidated GBP`000 GBP`000 GBP`000
Balance at 30 June 2009 1,184 33,855 4,970
Issue of share capital 1,361 24,196 18,214
Issue costs - (1,074) -
Share based payment charge - - -
Total comprehensive income for the year - - -
Balance at 30 June 2010 2,545 56,977 23,184
Issue of share capital 20 618
Share based payments charge - - -
Total comprehensive income for the year - - -
Acquisition of Subsidiary
Acquisition of Non controlling interest - - -
Balance at 30 June 2011 2,565 57,595 23,184
Share
based Foreign
payment exchange Retained
reserve reserve earnings
Consolidated GBP`000 GBP`000 GBP`000
Balance at 30 June 2009 1,678 6,776 (10,720)
Issue of share capital
Issue costs
Share based payment charge 1,327 - -
Total comprehensive income for the year - 3,611 (2,228)
Balance at 30 June 2010 3,005 10,387 (12,948)
Issue of share capital
Share based payments charge 2,166 - -
Total comprehensive income for the year - 1,640 (6,250)
Acquisition of Subsidiary
Acquisition of Non controlling interest - - -
Balance at 30 June 2011 5,171 12,027 (19,198)
Non
Other controlling Total
Reserves interest equity
Consolidated GBP`000 GBP`000 GBP`000
Balance at 30 June 2009 - - 37,743
Issue of share capital - - 43,771
Issue costs - - (1,074)
Share based payment charge - - 1,327
Total comprehensive income for the year - - 1,383
Balance at 30 June 2010 - - 83,150
Issue of share capital - - 638
Share based payments charge - - 2,166
Total comprehensive income for the year - (1,072) (5,682)
Acquisition of Subsidiary - 2,400 2,400
Acquisition of Non controlling interest - 72 72
Balance at 30 June 2011 - 1,400 82,744
Reviewed Provisional Segmental Report 30 June 2011
South Africa Australia
Evaluation and Nickel South Africa Corporate
development tailings PGE development (Unallocated)
Year ended Year ended Year ended Year ended
30 June 30 June 30 June 30 June
2011 2011 2011 2011
GBP`000 GBP`000 GBP`000 GBP`000
Total revenues - 1 2,514 -
Intercompany revenue - - -
Revenue from external
customers - - 2,514 -
Loss before and
after taxation (824) 59 (860) (1,440)
Interest received 72 - 68 -
Interest
paid - - - -
Depreciation and
Amortisation 5 6 1,179 4
Total assets 32,046 28,781 24,854 3,638
Total liabilities (309) (1) (131) (16,679)
South South
Africa Africa
Base Metal Electricity Total
Smelting Generation
Year ended Year ended Year ended
30 June 30 June 30 June
2011 2011 2011
GBP`000 GBP`000 GBP`000
Total revenues 5,891 1,890 10,295
Intercompany revenue (4,793) - (4,793)
Revenue from external customers 1,098 1,890 5,502
Loss before and after taxation (3,102) (83) (6,250)
Interest received 9 149
Interest paid Depreciation
and Amortisation 1,085 339 2,618
Total assets 13,274 5,382 107,975
Total liabilities (3,701) (4,410) (25,231)
Segmental Report 30 June 2010
South Africa Australia
Evaluation and Nickel South Africa
development tailings PGE development
Year ended Year ended Year ended
30 June 30 June 30 June
2010 2010 2010
GBP GBP GBP
Total revenues 950
Loss/profit before and after taxation (301) 1,370 (129)
Total assets 61,412 24,892 11,419
Total liabilities (11,554) (6,496)
Corporate
(Unallocated) Total
Year ended Year ended
30 June 30 June
2010 2010
GBP GBP
Total revenues 950
Loss/profit before and after taxation (3,168) (2,228)
Total assets 5,133 102,856
Total liabilities (1,656) (19,706)
Notes to Reviewed Provisional Financial Statements
1. Basis of preparation
These reviewed financial statements have been prepared in accordance with the
framework concepts and the measurement and recognition requirements of IFRS and
the AC 500 standards as issued by the accounting practices board and containing
the information required by IAS 34: 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 2010.
2.Commitments and contingencies
There are no material contingent assets or liabilities at 30 June 2011.
Capital commitments at 30 June 2011
2011 2010
GBP`000 GBP`000
Not longer than one year 22 15
Longer than one year and not longer than five years 59 61
Total 81 76
3. Dividend
No Dividends were declared during the period ended 30 June 2011.
4. Business Combinations
Acquisitions during the period
Purchase of interest in Thos Begbie Holdings (Pty) Ltd
On 1 October 2011, the Group acquired 70% of the voting equity instruments, via
a cash transaction, of Thos Bbegbie Holdings (Pty) Ltd, a company, with the
principal objectives of:
- Providing a brownfield site to the Group for future expansion;
- Commercializing the Group`s ConRoast process; and
- Leveraging the access to these facilities to establish a complete
"mine-to-metals" company.
Had Thos Begbie Holdings been part of the Group for the year from 1 July 2010
the following results would have been included in the Group`s financial
statements.
GBP`000
Revenue 5,891
Loss before taxation 3,409
Detail of the provisional fair value of identifiable assets and liabilities
acquired, purchase consideration and goodwill at the acquisition date are as
follows:
Fair Value Provisional Fair
Book Value adjustment value
GBP`000 GBP`000 GBP`000
Property, plant and equipment 14,135 - 14,135
Trade and other receivables 1,315 - 1,315
Cash and cash equivalents 223 - 223
Loans (5,520) - (5,520)
Trade and other payables (2,295) - (2,295)
Deferred taxation 146 - 146
8,003 - 8,003
Non Controlling interest (2,401)
Consideration settled in cash (6,801)
Positive Goodwill (1,199)
The identifiable net assets of Thos Begbie Holdings (Pty) Ltd acquired on
1/10/2010 had been determined on a provisional basis due to an independent
valuation being carried out on the fair value of property, plant and equipment,
possible intangible assets not previously recognised and inventory as well as
the valuation of property, plant and equipment and possible intangible assets in
Power Alt (Pty) Limited a special purpose vehicle included in the provisional
fair value of identifiable assets and liabilities acquired. The main factors
leading to the provisional recognition of goodwill are:
- Synergies with regards to smelting technology of ferroalloy metals
- Direct access to electricity supply
5. Acquisition of non-controlling interest
During the year ended 30 June 2011, theCcompany acquired 70% of the voting
equity instruments in Thos Begbie Holdings (Pty) Limited (Refer note 4). At the
date of acquisition, Power Alt (Pty) Limited was consolidated into Thos Begbie
Holdings (Pty) Limited as a special purpose vehicle in terms of SIC
Consolidation - Special Purpose Entities, as the substance of the relationship
indicated that Thos Begbie (Pty) Limited controls Power Alt (Pty) Limited.
On 8 March 2010, the Company acquired 51% of the voting equity instruments in
Power Alt (Pty) Limited. This transaction was accounted for as an equity
transaction - a transaction with owners in their capacity as owners.
The effect of the change in the Company`s ownership was as follows:
GBP`000
Non-controlling interest at the date of acquisition 142
51% acquired 72
Consideration settled in cash (1 640)
Recognised in equity attributable to owners (1 568)
7. Loss per share and headline loss per share
The loss for the year attributed to shareholders is GBP6,250 million
(2010: loss GBP2.3 million).
This is divided by the weighted average number of ordinary shares in issue
calculated to be 163,572,876 (2010: 162,951,035).
The fully diluted loss per share is based on the loss for the financial
year divided by the weighted average number of shares and potential shares
being 165,641`000 (2010: 164,916`000) in issue during the year. As the
options are non-dilutive, no diluted loss per share has been calculated.
2011 2010
`000 `000
Ordinary shares (weighted average) 163,572 162,951
Effect of options issued at fair value (weighted average) 2,069 1,965
165,641 164,916
2011 2010
`000 `000
RECONCILIATION OF HEADLINE LOSS
Loss attributable to Jubilee Platinum Plc shareholders (6,250) (2,228)
Impairment of assets - -
Loss on disposal of foreign subsidiary - -
Loss on disposal of plant and equipment - -
Headline loss (6,250) (2,228)
Headline loss per share (pence) (3.77) (1.35)
Diluted loss earnings per share (pence) (3.77) (1.35)
The results have been reviewed by BDO South Africa Inc. and their unqualified
review opinion is available on request from the Financial Director at the
company`s registered office.
Johannesburg
30 September 2011
Corporate Information
Registered office:
Stoney Ridge Office Park
Cnr Witkoppen and Waterford Place
Kleve Hill Park
Paulshof
2128
Transfer secretaries:
Computershare Investor Services (Pty) Limited, 70 Marshall Street,
Johannesburg 2001 (PO Box 61051, Marshalltown 2107)
Executive directors:
L Coetzer (Chief Executive Officer)
E Victor
A Sarosi
Non-executive directors:
C Bird (Chairman)
Dr M Phosa
C Molefe
Company secretary:
Capita Company Secretarial
Services Fusion Corporate Secretarial Services (Pty) Ltd
Ground Floor (Represented by Melinda van den Berg)
17-19 Rochester Row
London SW1P 1QT
Date: 30/09/2011 13:00:02 Produced by the JSE SENS Department.
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