Audited abridged results for the 12 months ended 30 June 2010

Audited abridged results for the 12 months ended 30 June 2010

 

Commentary

 

The year under review has been the most significant since the founding of the Company.

 

Highlights include: –

 

·    The completion of the Braemore acquisition

·    Commercialisation of ConRoast

·    Successful six months operational trial of the Mintek ConRoast smelter under commercial conditions

·    Commencement of Tjate feasibility study

·    Negotiations to purchase Thos Begbie smelting site at Middleburg

·    Decision to drill in northwest Madagascar

·    Positive evaluation of the Leinster Nickel dump in Western Australia

The absorption of Braemore into Jubilee was carried out successfully and the enlarged company will soon be accepted as an exploration to metals entity. This total capability provides Jubilee with a unique position in the emerging platinum company sector. No other mining sector company in our peer group can claim total capability and Jubilee’s development efforts have continually highlighted the benefits of the enlarged Group.

 

The six month smelter trial for Northam utilising the Mintek ConRoast smelter was a resounding success resulting in the signing of a Memorandum of Understanding dated June 2010 to build a 5 megavolt ampere (“MVA”) furnace in partnership with Northam.

 

Jubilee is in the process of acquiring the Thos Begbie smelter complex. The agreement was announced on 4 May 2010 and finalised on 20 September 2010. This acquisition will enable the Company to site its first two furnaces and gives it the benefit of an environmental permit, precious metal trading license and 10 MVA of independent gas fired power generation. An additional benefit is the existing smelting business utilising the furnaces that will bring us into early cash flow from diverse businesses including chrome, stainless steel and manganese treatment.

 

Subsequent to the year end the Company purchased a 51% stake in the power generation company Power Alt (Pty) Ltd. The net result of this was power independence, an off-set against our power cost and the opportunity to expand and develop a stand-alone gas fired power generation business.

 

The Tjate project, having proved a major resource, moved on to the next stage of feasibility study. Snowden, the international mining industry consultant has been awarded a contract to complete an independent technical and financial study. This study is progressing favourably and the Company is drilling further boreholes to tighten up the statistical reliability of a key development area.

 

The joint venture with BHP Billiton is advancing and Bateman Engineering Projects of South Africa has been awarded a contract to complete the financial and technical study for submission and discussion with our joint venture Partners.

 

The Company has elected to drill up to a further 5 holes in the Ambodilafa project in southern Madagascar. This decision was based on very promising geochemical data.

 

The loss for the year after taxation was £2.2 million (2009: £6.8 million). The loss per share has decreased from 3.68 pence in 2009 to 1.35 pence in 2010. 

 

Administrative expenses amounted to £4.5 million (2009: £2.4 million) and include overheads and corporate costs attributable to the business.  A share-based payment charge of £1.3 million is included in the Group Statement of Comprehensive Income in line with the requirements of IFRS2. 

 

The platinum price has been very resilient during the period and we expect to see a marked increase in prices as car production gets back to normal levels. Purchasing managers are beginning to restock and this will put upward pressure on prices as the supply side of the industry addresses its challenges of mining, smelting and cost management. The Board are of the opinion that the commercialisation of ConRoast will enable the producers to address UG2 smelting issues. This belief is now shared by the majority of the industry technical ‘insiders’.

 

Since the year end the Company has begun making significant headway into all aspects of Con Roast smelting to include possible acquisition of own feed, toll smelting for majors, dump retreatment, own and third party applications and provision of smelters for potential new platinum mines. The Company anticipates positive cash flow towards year end with ConRoast roll out continuing aggressively into next year.

 

The Board is confident that technical issues with all the Group’s projects are defined, and understood. This puts Jubilee in an envious position to enjoy all of the advantages that global growth is likely to bring.

 

 

Board Changes

On 1 August 2010 the following changes were made to the board:

 

·    Colin Bird stepped down as Chief Executive Officer and was appointed Non-Executive Chairman

·    Malcolm Burne stepped down as Non-Executive Chairman

·    Leon Coetzer was appointed Chief Executive officer and relinquished his role as MD Smelting and Refining

·    Eduard Victor was appointed Finance Director

·    Andrew Sarosi relinquished his role as Finance Director and continued as an Executive Director 

Dividend

No dividend declared for the period under review.

 

Posting of the Annual Report and Notice of Annual General Meeting

The annual report will be posted to shareholders on 5 October 2010 and will be available to view on the Company’s website: www.jubileeplatinum.com

The Annual General Meeting will be held at the Pelham Hotel, 15 Chromwell Place, London SW7 2LA on Friday, 26 November 2010 at 10h00 am. 

 

 

 

For further information please contact:

 

 

Colin Bird/Leon Coetzer                  

 

Jubilee Platinum plc                          

 

Tel + 27 83 455 7749     Tel +44 (0) 20 7584 2155

 

 

Andrew Sarosi         

 

Jubilee Platinum plc                            

 

Tel +44 (0) 1752 221937   

 

    

Matthew Robinson/Rose Herbert

 

finnCap Ltd

 

Tel +44 (0) 20 7600 1658

 

 

Leonard Eiser /Sharon Owens

 

Sasfin Capital

 

Tel +27 (0) 11 809 7500

 

 

Michael Kinirons/Nick Rome

 

Bishopsgate Communications Ltd

 

Tel +44 (0) 20 7562 3350

 

 

 

  Audited Year ended 30 June 2010

 

£’000

Audited Year ended

30 June

2009

Restated

£’000

ASSETS

Non-current assets

Intangible assets

80,706

40,014

Property, Plant and equipment

112

78

Total non-current assets

80,818

40,092

Current assets

Trade and other receivables

8,359

474

Inventory

682

Cash and cash equivalents

12,997

7,641

Total current assets

22,038

8,115

TOTAL ASSETS

102,856

48,207

LIABILITIES

Non-current liabilities

Deferred tax

(16,575)

(9,000)

Current liabilities

Contingent / deferred consideration

(1,400)

(915)

Trade and other payables

   (1,731)

(549)

Total current liabilities

(3,131)

(1,464)

TOTAL LIABILITIES

(19,706)

(10,464)

 

NET ASSETS

83,150

37,743

EQUITY

Share capital

2,545

1,184

Share premium

56,977

33,855

Merger reserve

23,184

4,970

Share based payments reserve


3,005

1,678

 

Currency translation reserve

10,387

6,776

Retained earnings

(12,948)

(10,720)

Equity interests of minorities



TOTAL EQUITY

83,150

37,743

 

 

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 

Audited Year ended 30 June 2010

 

£’000

 

Audited Year ended 30 June Restated

2009

£’000

 

Revenue

   950

      –

Cost of Sales

  (458)

      –

      

   492

      –

Impairment loss on intangibles

     –

(2,909)

Negative goodwill

1,615

      –

Other administrative expenses

(4,503)

(2,410)

Total administrative expenses

(2,888)

(5,319)

Operating loss

(2,396)

(5,319)

Finance income

  

   168

    542

Loss before  tax expense

  

(2,228)

(4,777)

Tax

  

     –

      –

Total loss for the year

(2,228)

(4,777)


Attributable to Equity holders of the parent


(2,228)


(4,201)

Non-Controlling interest

   (576)

OTHER COMPREHENSIVE INCOME

Exchange gain on translation of foreign subsidiaries

 3,611

  6,868

Total comprehensive income for the year


1,383


2,091


Attributable to Equity holders of the parent


1,383


2,667

Non-Controlling interest

   (576)

Headline Earnings per share

Basic and diluted loss per share (pence)

  

   (1.35)

   (3.68)

 

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

  Audited Year

 ended 30 June 2010

£’000

 

Audited Year ended 30 June 2009

Restated

£’000

 

Cash flows from operating activities

Loss for the year

  (2,228)

(4,777)

Finance income

     168

    542

Depreciation

      74

     34

Share based payment

   1,327

    499

Impairment of intangibles

       –

  2,909

Amortisation of intangibles

     327

      –

Profit on sale of property, plant and equipment

       (11)

(5)

Decrease in inventory

       241

      

Decrease / (Increase) in receivables

   1,128

  3,465

(Decrease) / Increase in payables

   (10,454)

 1,182

Net cash used in operating activities

  (9,428)

3,849

Cash flows from investing activities

Acquisition of subsidiary, net of cash acquired

223

(790)

Proceeds from sale of property, plant and equipment

 47

 –

Deposit account for business combination

(7,652)

Purchase of exploration assets

      

(4,692)

Purchase of intangible fixed assets

       (888)

Purchase of property, plant and equipment

(25)

(10)

Net cash used in investing activities

 (8,295)

(5,492)

Cash flows from financing activities

Issue of shares and warrants

23,992

      2

Issue costs

(1,074)

     –

Net cash generated from financing activities

22,918

2

Net increase/(decrease) in cash and cash equivalents

5,195

(1,641)

Cash and cash Equivalents at beginning of the year

7,641

9,234

Effects of foreign exchange on cash and cash equivalents

161

 48

Cash and cash equivalents at the end of the year

12,997

7,641

      –

NOTES TO THE FINANCIAL RESULTS

 

 

BASIS OF PREPARATION

 

The financial statements are presented in pounds sterling, rounded to the nearest thousand.

 

These financial statements have been prepared in accordance with IFRS as adopted for use in the European Union (EU) (“IFRS”) IAS 34, Interim Financial Reporting, AC 500, the JSE Listings Requirements, and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS.

 

The accounting policies have, unless otherwise stated, been applied consistently to all periods presented in these consolidated financial statements. The impact of the prior period restatements is disclosed in detail in note 24 to the full audited financial statements.

 

Audit Report

The audited results for the year ended 30 June 2010 have been audited by BDO LLP and BDO South Africa Incorporated Chartered Accountants and Registered Auditors and a copy of their unqualified audit report is available for inspection at the Company`s registered office: 4th Floor, 2 Cromwell Place, London SW7 2JE.

 

FINANCIAL INSTRUMENTS

 

Loans
and
receivables

Other
financial
liabilities

Total

£’000

£’000

£’000

30 June 2010

Assets as per statement of financial position

Trade and other receivables

8,359

8,359

Cash and cash equivalents

12,997

12,997

 

21,356

21,356

Liabilities as per statement of financial position

Trade and other payables

1,260

1,260

1,260

1,260

 

 

 

Loans and receivables

Other financial liabilities

Total

£’000

£’000

£’000

30 June 2009

Assets as per balance sheet

Trade and other receivables

474

474

Cash and cash equivalents

7,641

7,641

8,115

8,115

Liabilities as per balance sheet

Trade and other payables

504

504

504

504

Business segments

In the opinion of the Directors, the operations of the Group companies comprise three business segments, being

 

·    the evaluation and development of PGM smelters utilising exclusive commercialisation rights of the ConRoast smelting process, located in South Africa (“Evaluation 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”); and

·    development of Platinum Group Elements (PGE’s) and associated metals (“PGE development”).

 

The Parent Company operates a head office based in the United Kingdom which incurred certain administration and corporate costs.  The Group’s operations span 5 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 in the Group financial statements. Mauritius and Madagascar do not meet the qualitative thresholds under IFRS 8 consequently no separate reporting is provided.

 

South Africa

Australia

South Africa

Evaluation and development

Nickel tailings

PGE development

Corporate

(Unallocated)

Total

Year ended

Year ended

Year ended

Year ended

Year ended

30 June

30 June

30 June

30 June

30 June

2010

2010

2010

2010

2010

£’000

£’000

£’000

£’000

£’000

Total revenues

      950

       

       –

       –

    950

Loss before and after taxation


(301)


1,370

 

(129)


(3,168)


(2,228)

Total assets

    61,412

   24,892

   11,419

    5,133

102,856

Total liabilities

  (11,554)

  (6,496)

        –

   (1,656)

(19,706)

                                                         

 

South Africa

Australia

South Africa

Evaluation and development

Nickel tailings

PGE development

Corporate

(Unallocated)

Total

Year ended

Year ended

Year ended

Year ended

Year ended

30 June

30 June

30 June

30 June

30 June

2009

2009

2009

2009

2009

£’000

£’000

£’000

£’000

£’000

Total revenues

         –

         –

         –

    

   –

Loss before and after taxation

(270)

 


(4,507)

(4,777)

Total assets

    46,800

     1,334

        73

48,207

Total liabilities

    (9,000)

      (467)

      (997)

(10,464)

 

 

 

                                                      

 Audited Year

 ended 30 June 2010

 

£’000

 

Audited Year ended 30 June 2009

Restated

£’000

 

This has been arrived at after charging/(crediting):

Auditor’s remuneration (current auditor)

Statutory audit service  -group

44

Auditor’s remuneration (previous auditor)

Statutory audit service  -group

45

Tax compliance fee

4

Other fees

5

Rentals under operating leases – land and buildings

15

Depreciation

74

34

Amortisation

327

Directors emoluments

342

168

Share based payments

1,328

499

Impairment of intangible assets

2,909

 

LOSS PER SHARE AND HEADLINE LOSS PER SHARE

 

The loss for the year attributed to shareholders is £2.3 million (2009: loss £4.2 million).  This is divided by the weighted average number of ordinary shares in issue calculated to be 162,951,035 (2009: 113,277,650)

 

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 164,916,000 (2009: 113,921,000) in issue during the year. As the options are non-dilutive, no diluted loss per share has been calculated.

 Audited Year

 ended 30 June 2010

£’000

 

Audited Year ended 30 June 2009

£’000

 

Ordinary shares (weighted average)

162,951

113,278

Effect of options issued at fair value (weighted average)

1,965

644

164,916

113,922

 

RECONCILIATION OF HEADLINE LOSS

2010

 

 

£’000

2009

Restated

£’000

Loss attributable to Jubilee Platinum Plc shareholders

(2,228)

(4,201)

Impairment of assets

2,909

Loss on disposal of foreign subsidiary

14

Loss on disposal of plant and equipment

6

Headline loss

(2,228)

(1,272)

Headline loss per share (pence)

(1.35)

(1.12)

Diluted loss earnings per share (pence)

(1.35)

(3.70)

 

SHARE CAPITAL

 

Authorised

 Audited Year

 ended 30 June 2010

£’000

 

Audited Year ended 30 June 2009

£’000

 

500,000,000 Ordinary shares of 1p each

5,000

5,000

 

Allotted, called  up and fully paid

Audited Year

 ended 30 June 2010

£’000

 

Audited Year ended 30 June 2009

£’000

 

254,463,290 Ordinary shares of 1p each (2009: 118,374,269)

 

2,545

1,184

 

During the period the Company issued the following Ordinary 1 pence shares:

 

Date

Issue Price

Number of

Shares

Nominal Value

£’000

1 July 2009

Opening balance

118,374,269

1,184

16 July 2009

Placing at 36p per share

1,775,985

18

7 August 2009

Purchase of Tjate Hurdle 2 interest at 10.59p per share

4,960,978

50

7 August 2009

Purchase of KPlats interest

3,896,205

39

21 September 2009

Placing at 32.5p per share

6,000,000

60

9 November 2009

Placing at 30p per share

44,166,666

442

9 November 2009

Purchase of Braemore interest at 49.33p per share

49,900,908

499

8 December 2009

Settlement of fees at 31.52p per share

475,911

5

19 January 2010

Settlement of fees at 35p per share

137,330

1

7 February 2010

Exercise of options at 15.81p per share

87,615

1

19 May 2010

Exercise of options at 20p per share

45,000

19 May 2010

Exercise of options at 28p per share

400,000

4

17 June 2010

Placing at 33p per share

24,242,423

242

254,463,290

2,544

 

 

The following described the nature and purpose of each reserve within owners’ equity:

 

Reserve

Description and Purpose

Share premium

Amount subscribed for share capital in excess of nominal value.

Merger reserve

Reserve created on issue of shares on acquisition of subsidiaries in prior years.

Share based payments reserve

Reserve created for equity settled share based payments to employees and consultants.

Foreign exchange reserve

Cumulative translation differences of foreign currency non monetary assets and liabilities.

Retained losses

Cumulative net gains and losses recognised in the consolidated income statement.

 

 

 

 

For and on behalf of the board

 

 

Chief Executive Officer       Finance Director

 

04 October 2010

Johannesburg

 

Sponsor

Sasfin Capital

(a division of Sasfin Bank Limited)

 

DIRECTORS          Malcolm Burne (Non-executive Director)

                   Dr M Phosa (Non-executive Director)

                   Colin Bird (Chief Executive Officer)

                   Leon Coetzer (Executive Director)

                   Andrew Sarosi (Executive Director)

                   Chris Molefe (Non-Executive Director)

Eduard Victor (Appointed as Financial Director with effect of 1 August 2010

 

 

 

                  

SECRETARY          Capita Company Secretarial Services  

                   Fusion Corporate Secretarial Services (Pty) Ltd (SA) (Represented by Melinda van den Berg

                  

REGISTERED OFFICE  United Kingdom     South Africa

                   4th Floor          Pinewood Office Park

                   2 Cromwell Place   33 Riley Street

                   London SW7 2JE     Woodmead

                                     

 

AUDITORS           United Kingdom     South Africa

                   BDO LLP            BDO South Africa Incorporated

                   55 Baker Street    13 Wellington Road

                   London W1U 7EU     Parktown

                  United Kingdom     Johannesburg, 2193