| Mon 26 Mar 2007, 8:59 | | JBL - Jubilee Platinum plc - Interim Results for t |
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JBL
JUJLP
JBL - Jubilee Platinum plc - Interim Results for the six months ended 31
December 2006
Jubilee Platinum plc
("Jubilee" or "the Company")
Share code: JBL
ISIN: GB0031852162
Interim Results for the six months ended 31 December 2006
Highlights
- Agreement signed to purchase a further 28% interest in the Tjate
project, South Africa, taking equity holding to 63% subject to
approval by the Department of Minerals and Energy
- Significant joint venture and financing agreements concluded with
Impala Platinum, TransAsia Minerals and Mitsubishi Corporation
- Good results returned from Londokomanana and Lavatrafo projects in
Madagascar demonstrating high potential for nickel/copper/PGM
resources
- Jubilee shares admitted for trading on the main board of the JSE
Limited ("JSE")
Colin Bird, Chief Executive, commented "It has been a busy period for
Jubilee as we have continued to strengthen our operational and financial
positions through our joint ventures and with our recent listing on the
JSE. We are very well positioned to continue exploration and development
at our projects in South Africa and Madagascar and we now have important
partnerships in place with Impala Platinum and TransAsia Minerals. We
look forward to working with them and to reporting positive developments
in 2007 on all fronts."
For further information please contact:
Colin Bird Cathy Malins / Annabel Leather
Jubilee Platinum plc Parkgreen Communications Ltd
Tel +44 (0) 20 7584 2155 Tel +44 (0) 20 7851 7480
Chairman`s Statement
During the period under review the Company has again made significant
progress across its portfolio of attractive projects in South Africa and
Madagascar.
The Company`s flagship Tjate project is strategically located in South
Africa`s Bushveld complex, a geological system unmatched globally which
produces 80% of the world`s platinum. This area is currently undergoing
a period of consolidation as the major operators look to increase their
platinum reserves. Drilling at Tjate once again returned positive
results consistent with historical performance, and demonstrating
uniformity and reliability of widths and grade.
The Company announced on 12 December 2006 that it had entered into an
agreement to purchase a further 28% interest in the Tjate project in two
tiers of 13% and 15% respectively, which would increase Jubilee`s equity
holding to 63%. Completion is subject to approval from the South
African Department of Minerals and Energy and Reserve Bank.
In September 2006, Jubilee`s wholly owned subsidiary in South Africa,
Windsor Platinum Investments (Proprietary) Limited ("Windsor"), entered
into a convertible loan instrument with Mitsubishi Corporation for US$16
million. An initial investment of US$4 million has already been made.
The loan notes bear no interest and are convertible into Windsor
ordinary shares within two years of issue. Certain conditions have to be
satisfied for the loan to be drawn down.
In Madagascar, our Londokomanana and Lavatrafo projects continued to
return good results, demonstrating high potential for
nickel/copper/platinum group resources with wide intervals and good
lateral potential.
During the period under review, the Company concluded a significant
joint venture agreement with TransAsia Minerals Ltd, providing US$10
million of funding over a three year period for the Londokomanana and
Itsindro nickel/copper projects in Madagascar. This funding will allow
the Company to explore aggressively recently defined electromagnetic
geophysical anomalies, which were also supported by strong soil
geochemistry.
On 7 December 2006, Jubilee shares were admitted for trading on the main
board of the JSE. The Company decided to dual list its as a result of
the progress of Tjate and the belief that South African investors should
be given the opportunity to invest in the Company`s emerging platinum
portfolio. Also, the directors believe that further consolidation in
the South African platinum sector is inevitable and that this dual
listing will facilitate Jubilee`s participation.
The interim accounts for the six months ended 31 December 2006 have been
prepared under International Financial Reporting Standards now being
adopted for all listed companies. This has led to the re-statement of
certain figures for the six month ended 31 December 2005. The financial
results show an operating loss of GBP571,256 for the current period
compared to an operating loss of GBP336,484 for the comparative period
ended 31 December 2005. Higher levels of activity during the period and
a charge of GBP210,895 in relation to qualifying share options in issue,
in accordance with the requirements of IFRS2, were the key reasons for
the higher loss posted in the current period.
Generally, metals have retained their high prices with both nickel and
platinum in particular showing continued robust fundamentals. Copper
has shown more volatility but still remains buoyant. These strong price
fundamentals position the Company well, with its mix of precious and
base metals.
South Africa continues to demonstrate sound political stability and
economic growth and in Madagascar, recent elections conclusively
returned Marc Ravalomanana as the President for a further period of four
years. The mining sector continues to evolve in Madagascar, with the
major mining companies taking a keen interest in the potential of this
largely unexplored country.
The Company, with its broad and maturing portfolio, is well placed to
enjoy the opportunities which the global environment offers for
successful junior explorers. In particular, South Africa offers a major
opportunity for short-term enhancement of shareholder value.
The Board looks forward to a second half-year showing further good
progress on all our projects and corporate activities.
M.A. Burne
Chairman
Consolidated Income Six months ended Year ended
Statement
31 Dec 2006 31 Dec 2005 30 Jun
Unaudited Restated 2006
Unaudited Restated
GBP`000 GBP`000 Audited
GBP`000
Revenue
Other income 75 0 0
Administration expenditure (646) (336) (970)
Loss from operations (571) (336) (970)
Finance cost (60) 0 (51)
Finance income 157 1,152 283
(Loss)/profit before income (474) 816 (738)
tax expense
Income tax expense 0 0 0
(Loss)/profit for the period (474) 816 (738)
after income tax expense
Loss attributable to 15 5 121
minority interest
(Loss)/profit attributable (459) 821 (617)
to members of Jubilee
Platinum Plc
Headline (loss)/profit for (459) 821 (617)
the period
Number of shares in issue 79,138,974 77,370,271 78,648,974
Weighted average number of 78,884,602 70,696,060 74,355,295
shares in issue
Diluted weighted average 81,148,888 72,230,819 76,411,257
number of shares in issue
Basic profit/(loss) per (0.58) 1.16 (0.83)
share (pence)
Diluted profit/(loss) per (0.57) 1.14 (0.81)
share (pence)
Headline profit/(loss) per (0.58) 1.16 (0.83)
share (pence)
Consolidated Balance Sheet
31 Dec 2006 31 Dec 30 Jun
Unaudited 2005 2006
Restated Restated
GBP`000 Unaudited Audited
GBP`000 GBP`000
Assets
Non-current assets
Property, plant and equipment 47 31 52
Exploration, evaluation and 2,070 1,489 1,650
mining properties
Intangibles 2,319 0 2,319
Investments 2,487 3,198 2,620
Total non-current assets 6,923 4,718 6,641
Current assets
Trade and other receivables 712 411 537
Cash and cash equivalent 7,269 3,884 4,668
Total current assets 7,981 4,295 5,205
Total assets 14,904 9,013 11,846
Current liabilities
Trade and other payables (245) (126) (155)
Provisions (887) 0 0
Loans and borrowings (3,519) 0 (1,500)
Total current liabilities (4,651) (126) (1,655)
Total liabilities (4,651) (126) (1,655)
Net assets 10,253 8,887 10,191
Minority interests: 11 17 96
10,264 8,904 10,287
Equity
Share capital 791 774 786
Share premium 12,341 8,604 11,859
Share base payment reserve 473 141 262
Currency translation reserves (566) 264 (304)
Accumulated loss (2,775) (879) (2,316)
Total equity 10,264 8,904 10,287
Statement of changes in equity
Share Share Share Accumulated Total
Capital Premium based loss
payment
reserve
GBP000` GBP000` GBP000` GBP000` GBP000`
Balance at 1 July 2005 699 8,256 79 (1,700) 7,334
Issue of share capital 75 0 0 0 75
Premium on issue of 0 348 0 0 348
share capital
Share issue expenditure 0 0 62 0 62
written off
Net profit/(loss) for 0 0 0 821 821
the period
Currency translation 0 0 0 264 264
difference
Balance at 31 December 774 8,604 141 (615) 8,904
2005
Issue of share capital 12 0 0 0 12
Premium on issue of 0 3,255 0 0 3,255
share capital
Share issue expenditure 0 0 121 0 121
written off
Expenditure settled by 0 0 0 0 0
shares
Net profit/(loss) for 0 0 0 (1,437) (1,437)
the year
Currency translation 0 0 0 (568) (568)
difference
Balance at 30 June 2006 786 11,859 262 (2,620) 10,287
Issue of share capital 5 0 0 0 5
Premium on issue of 0 482 0 0 482
share capital
Share issue expenditure 0 0 211 0 211
written off
Expenditure settled by 0 0 0 0 0
shares
Net profit/(loss) for 0 0 0 (459) (459)
the year
Currency translation 0 0 0 (262) (262)
difference
Balance at 31 December 791 12,341 473 (3,341) 10,264
2006
Consolidated Cash flow statement Six months ended Year
ended
31 Dec 31 Dec 30 Jun
2006 2005 2006
Unaudited Restated Resated
Unaudited Audited
GBP`000 GBP`000 GBP`000
Cash flows utilised by operating
activities
Cash utilised by operations (870) (272) (868)
Finance income 157 108 276
Net cash outflow from operating (713) (164) (592)
activities
Cash flows utilised by investing
activities
Acquisition of property, plant and 4 (7) (13)
equipment as a result of increasing
operations
Expenditure on intangible exploration (355) (580) (1,126)
and evaluation assets as a result of
increasing operations
Net cash outflow from investing (351) (587) (1,139)
activities
Cash flows from financing activities
Share capital issued 539 0 264
Increase/(decrease) in convertible loan 3,126 0 1,042
notes and provisions
Net cash inflow from financing 3,665 0 1,306
activities
Net increase/(decrease) in cash and 2,601 (751) (425)
cash equivalents
Cash and cash equivalents at the 4,668 4,635 5,093
beginning of the period/year
Cash and cash equivalents at the end of 7,269 3,884 4,668
the period/year
Notes
1. The financial information for the six months ended 31 December 2006
and 31 December 2005 is unaudited. In the opinion of the directors
the financial information for these periods presents fairly the
financial position, operations and cash flows for the period in
conformity with generally accepted accounting principles. The
interim statement for the six months ended 31 December was approved
by the directors on 23 March 2007.
2. The financial information for the year ended 30 June 2006 does not
constitute full accounts, but subject to the restatement explained
in note 4, is an extraction from the Company`s accounts for the
year, which have been delivered to the Registrar of Companies and
on which the auditors gave an unqualified report.
3. The interim accounts have been prepared in accordance with
International Financial Reporting Standard ("IFRS"). The date of
transition to IFRS was 1 July 2005. The comparative figures for
the six months ended 31 December 2005 have also been presented in
accordance with IFRS.
4. The interim accounts have been prepared using the same accounting
policies as were used in the Group`s statutory accounts to 30 June
2006 except for restatements relating to compliance with IFRS.
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.
5. As a result of adopting IFRS, the Group recognised total expenses
of GBP210,895 (2005: GBP61,870) related to share-based payment
transactions during the six months ended 31 December 2006. For the
six months ended 31 December 2005, the adjusted administrative
expenditure is GBP336,000 and the adjusted profit attributable to
Jubilee shareholders was GBP821,453.
6. The calculation of headline loss per ordinary share is based on the
reported loss of GBP459,216 for the six months ended 31 December
2006 and the weighted average number of ordinary shares outstanding
during the same period of 78,884,602.
7. The investment of GBP2.5 million included in the Group`s assets
represents the Group`s 25 % interest in Tjate Platinum Corporation
(Pty) Ltd.
26 March 2007
Sponsor: Investec Bank Limited
Date: 26/03/2007 08:59:51 Produced by the JSE SENS Department.
