Interim Results

Interim Results for the six months ended 31 December 2009

 

 

The Board of Jubilee Platinum, the AIM quoted and JSE listed mining exploration and development Company, is pleased to announce the interim results for the six months ended 31 December 2009.

 

HIGHLIGHTS

 

·     Acquisition of  Braemore Resources plc for £24.6M by way of  an all share offer completed 30 October 2009

 

·     Jubilee moves from explorer to complete capability Company from exploration to metal

 

·     Completed private placing of £13.25M on 9 November 2009

 

·     Braemore successfully completed the Mintek R&D phase of the ConRoast Process and enters into commercial arrangement with a South African platinum producer.

 

·     Madagascar soil sampling confirms prospective drilling target in the northwest of the Ambodilafa Project.

 

 

 

Enquiries:  

 

Jubilee Platinum plc

Colin Bird, Chairman                                                          +27 (0) 11 253 3280

 

Jubilee Platinum plc

Andrew Sarosi                                                                    +44 (0) 1752 221937            

 

FinnCap

Matthew RobinsonCorporate Finance                             +44 (0) 20 7600 1658

 

Sasfin Capital

Leonard Eiser, Corporate Finance                                     +27 (0) 11 809 7738

 

Bishopsgate Communications Ltd                                

Nick Rome                                                                          +44 (0) 20 7562 3366

 

 

 

 

CHAIRMAN’S STATEMENT

 

Dear Shareholder,

 

The Company has enjoyed an excellent period for the six months ending 31 December 2009. 

 

Braemore Resources

 

The highlight of the period was the acquisition of Braemore Resources plc, which owns the exclusive rights to the Mintek patented ConRoast Process (“ConRoast”) for the smelting of high chrome bearing Platinum Group Metal (PGM) concentrates.  Jubilee has the exclusive rights to ConRoast until 2020. Braemore also has certain exploitation rights to BHP Billiton-owned nickel tailings in Western Australia.

 

ConRoast has important applications in the smelting of PGM concentrates. ConRoast, which utilises a DC arc furnace under mildly reducing conditions, has the ability to treat high chrome PGM concentrates, unlike the conventional AC arc furnace process of other South African smelter companies.  From the resultant PGM-rich iron alloy produced by ConRoast, the PGMs and separately any associated nickel, copper and cobalt metals can be recovered using various relatively conventional downstream refining methods including converting, hydrometallurgy and gasification.

 

A major platinum producer’s concentrate and various secondary materials were treated successfully by the company, commencing mid-October 2009 until end of March 2010. This campaign was the last phase of the R&D and the process will be fully commercialised during the last quarter of 2010.

 

The BHP Billiton Nickel tailings in Western Australia amount to some 385,000 tonnes of nickel and as such represents a major on-surface nickel asset.  The company is currently undertaking an engineering study and economic evaluation of the asset with a view towards exploitation. 

 

Tjate Project

 

The Tjate mineral resource statement was studied further, the results of which demonstrated that Tjate remains a robust project. The Board elected to advance the project towards feasibility.

 

The feasibility study was put to multi-company tender and the company announced on 24 March 2010 the award of the study to Snowden Mining Industry Consultants.

 

 Madagascar

 

The Company carried out a further soil geochemical testing programme on the northwest of Ambodilafa, following up on previous encouraging anomalies.  The resultant nickel/copper anomaly plots give considerable encouragement for a limited drill test programme, which is scheduled to commence late April 2010.

 

In November 2009, the Company successfully raised £13.25 million at a price of 30 pence per share resulting in the issue of 44.16 million new ordinary shares.

 

The Platinum price has been particularly strong during the credit crisis and at the time of writing continues to demonstrate further price growth potential.

 

With the acquisition of Braemore and further definition of the Tjate mineral resource, the company now has a broad base and critical mass from which to develop and further enhance shareholder value in a period of strong platinum price predictions.

 

 

MALCOLM BURNE

CHAIRMAN

 

30 March 2010



 

Consolidated Income Statement

Six months ended

Year ended

31 Dec 2009 Unaudited

£000′

31 Dec 2008 Unaudited £000′

30 Jun 2009 Audited £000′

Continuing operations

Sales

215

0

0

Other income

22

77

0

Purchases

(193)

0

0

Administration expenses

(1,791)

(851)

(2,293)

Loss from operations

(1,747)

(774)

(2,293)

Finance income

97

346

542

Finance costs

(77)

0

0

Profit on exchange rate

1,953

0

1,461

Impairment loss on intangibles

0

0

(3,807)

Goodwill written off

(519)

0

0

Gain on a bargain purchase

0

0

18

Loss before income tax expense

(293)

(428)

(4,079)

Loss for the period after income tax expense from continuing operations

(293)

(428)

(4,079)

Minority interest

Equity

4

32

118

Loss attributable to members of Jubilee Platinum Plc

(289)

(396)

(3,961)

Number of shares in issue

229,550,922

 113,013,291

104,996,622

Weighted average number of shares in issue

270,555,886

108,150,721

 113,277,650

Diluted weighted average number of shares in issue

275,900,886

110,995,721

98,934,900

Basic loss per share (pence)

(0.11)

(0.37)

(3.50)

Diluted loss per share (pence)

(0.10)

(0.37)

(3.50)

Headline loss per share (pence)

(0.11)

(0.37)

(0.13)

 

 

 

 

 

 

 

    

 

Consolidated Balance Sheet

31 Dec 2009 Unaudited £000′

31 Dec 2008 Unaudited £000′

30 Jun 2009 Audited

£000′

Assets

Non-current assets

Intangible assets

60,317

27,214

29,437

Property, plant and equipment

2,924

112

77

Investment in associates

0

0

0

Other debtors

54

1,714

0

Total non-current assets

63,295

29,040

29,514

Current assets

Trade and other receivables

293

684

474

Cash and cash equivalent

16,572

8,799

7,641

Inventory

276

0

0

Other debtors

951

1,844

0

Total current assets

18,092

11,327

8,115

Total assets

81,387

40,367

37,629

Current liabilities

Trade and other payables

(2,121)

(1,237)

(549)

Total current liabilities

(2,121)

(1,237)

(549)

Total liabilities

(2,121)

(1,237)

(549)

Net current assets

15,971

10,090

7,566

Net assets

79,266

39,130

37,080

Equity

Called up share capital

2,296

1,130

1,184

Share premium account

73,580

38,293

33,855

Share based payment reserve

1,678

1,358

1,678

Currency translation reserve

1,654

1,916

438

Other reserves

0

1,035

0

Merger reserve

4,970

0

4,970

Retained earnings

(9,148)

(6,769)

(8,860)

Equity attributable to equity holders of the parent

75,030

36,963

33,265

Equity interest of minorities

4,236

2,167

3,815

Total equity

79,266

39,130

37,080

 

 

 

 

 

 

 

 

 

 

Consolidated Statement of Changes in Equity

Share Capital

Share Premium

Share based payment reserve

Other reserves

Merger reserve

Accumulated loss

Currency

translation

reserve

 

Total

£000′

£000′

£000′

£000′

£000′

£000′

£000’s

£000′

Balance at 1 July 2008

1,050

33,337

1,179

1,034

0

(6,373)

(812)

29,415

Issue of share capital

80

0

0

0

0

0

0

80

Premium on issue of share capital

0

4,956

0

0

0

0

0

4,956

Share-based payment charge

0

0

179

0

0

0

0

179

Other reserves adjustment

0

0

0

0

0

0

 

0

0

Net loss for the period

0

0

0

0

0

(396)

0

(396)

Currency translation difference

0

0

0

0

0

0

2,729

2,729

Balance at 31 December 2008

1,130

38,293

1,358

1,034

0

(6,769)

1,917

36,963

Issue of share capital

54

0

0

0

0

0

0

54

Premium on issue of share capital

0

(4,438)

0

0

4,970

0

0

532

Negative goodwill

0

0

0

0

0

440

0

440

Goodwill translation

0

0

0

0

0

0

1,060

1,060

Share-based payment charge

0

0

320

0

0

0

0

320

Other reserves

0

0

0

(1,034)

0

1,034

0

Net loss for the period

0

0

0

0

0

(3,565)

0

(3,565)

Currency translation difference

0

0

0

0

0

0

(2,539)

(2,539)

Balance at 30 June 2009

1,184

33,855

1,678

0

4,970

(8,860)

438

33,265

Issue of share capital

1,112

0

0

0

0

0

0

1,112

Premium on issue of share capital

 

0

39,725

0

0

0

0

0

39,725

Goodwill translation

0

0

0

0

0

0

1,235

1,235

Net loss for the period

0

0

0

0

0

(288)

0

(288)

Currency translation difference

0

0

0

0

0

0

    (19)

(19)

Balance at 31 December 2009

2,296

73,580

1,678

0

4,970

(9,148)

1,654

75,030

 

 

 

 

 

 

 

    

 

 

Consolidated Cash Flow Statement

Six months ended

Year ended

31 Dec 2009 Unaudited £000′

31 Dec 2008 Unaudited £000′

30 Jun 2009 Audited

£000′

Cash flows from operating activities

Income/(loss) for the period

206

(774)

(4,621)

Depreciation

320

0

34

Other non-cash movements

(5,546)

0

6,203

Net cash outflows of subsidiaries previously treated as associates

0

0

(14,850)

Gain on a bargain purchase

0

0

(18)

Loss on sale of property, plant and equipment

0

0

(5)

Amounts written off exploration expenditure

0

0

3,807

Increase/(decrease) in receivables

(2,777)

3,698

6,000

Increase in inventory

(277)

Decrease in payables

1,573

844

171

Foreign exchange on retranslation of overseas subsidiaries

(1,735)

371

2,006

Share based payments

0

179

499

Interest received

97

345

542

Interest paid

(77)

0

0

Net cash outflow from operating activities

(8,216)

4,663

(232)

Cash flows utilised by investing activities

Acquisition of subsidiary, net of cash acquired

0

0

           (790)

Purchase of intangible fixed assets

(173)

(5,086)

(2,029)

Disposal/(Purchase) of tangible fixed assets

61

(11)

(5)

Net cash outflow from investing activities

(112)

(5,097)

(2,824)

Cash flows from financing activities

Issue of shares and warrants

15,307

0

2

Net cash inflow from financing activities

15,307

0

2

Effects of foreign exchange on cash and cash equivalents

1,952

(2)

1,461

Net increase/(decrease) in cash and cash equivalents

8,931

(436)

(1,593)

Cash and cash equivalents at the beginning of the period/year

7,641

9,234

9,234

Cash and cash equivalents at the end of the period/year

16,572

8,798

7,641

 

 

 

 

Notes

 

1.   The interim financial information for the six months ended 31 December 2009 is unaudited.  The interim accounts have been prepared in accordance with the recognition, measurement and presentation and disclosure requirements of International Financial Reporting Standards (“IFRS”), including IAS34 Interim Financial Reporting, the Companies Act and the JSE Listings Requirements.  The accounting policies have been applied consistently through the Group and are consistent with those for the year ended 30 June 2009.  The Interim statement was approved by the board on 29 March 2010.

 

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 2009 £000′

31 Dec 2008 £000′

30 Jun 2009 £000′

Loss on ordinary activities

United Kingdom

(1,406)

(375)

(1,285)

South Africa

911

30

2,133

Madagascar

38

(75)

(2,480)

Australia

165

0

0

Mauritius

(1)

(8)

(2,446)

Total loss before minority interests

(293)

(428)

(4,078)

Net assets by location

United Kingdom

42,769

17,878

18,088

South Africa

33,185

13,650

18,807

Madagascar

305

4,177

184

Australia

2,999

0

0

Mauritius

8

3,425

1

Total net assets

79,266

39,130

37,080

Exploration expenditure 

United Kingdom

35,682

0

198

South Africa

9,328

940

16,861

Australia

3,276

0

0

Madagascar

12

2,860

674

Total exploration expenditure

48,298

3,800

17,733

 

  

 

3.   Loss per share

 

Six months ended

Year ended

31 Dec 2009

31 Dec 2008

30 Jun 2009

Loss for the financial period (£)

(288,731)

(395,978)

(3,960,723)

Weighted average number of shares in issue

270,555,886

108,150,721

113,277,650

Dilutive effect of share options

5,345,000

2,845,000

644,165

Basic loss per share (pence)

(0.11)

(0.37)

(3.50)

Diluted loss per share (pence)

(0.10)

(0.37)

(3.50)

 

 

4.   No dividend was declared during the period ended 31 December 2009 (December 2008: Nil).

 

 

5.   On 7 August 2009, the Group allotted and issued 8,857,183 new ordinary shares of 1p each in Jubilee.  Of these shares, 4,960,978 were issued following the deemed achievement of Performance Hurdle 2 of the Deferred Share Agreement entered into by Jubilee on 21 January 2009.

 

The balancing 3,896,205 ordinary shares of 1p each were issued in relation to increasing Jubilee’s interest in Maude Mining (Pty) Ltd by 26% to 91% through the acquisition of K-Plats.  The terms of this agreement required K-Plats shareholders to subscribe for “A” preference shares in K-Plats.  Jubilee subsequently purchased from the K-Plats shareholders all their “A” preference shares for 3,896,205 Jubilee ordinary shares at R1.2833 (0.0997 GB pounds), a total consideration of 5 million Rands.  The “A” preference shares confer on Jubilee the right to receive all dividends or other distributions declared and/or paid by K-Plats to its shareholders and the right to appointments on the board of directors of K-Plats.

 

On 9 November 2009 the Group allotted and issued 49,900,908 new ordinary shares of 1p each in Jubilee to acquire the entire issued share capital of Braemore Resources plc.  The all-equity transaction involved the issue of 1 new Jubilee share for every 15.818 Braemore shares held by Braemore shareholders.

 

6.   The following changes were made to the Board of Directors to date:

Andrew Sarosi – Designated as Finance Director 0n 15 September 2009

Leon Coetzer – Appointed on 11 January 2010

Dr Mathews Phosa – Appointed 11 January 2010

 

 

7.  Copies of interim report are available to the public free of charge from the Company at 4th Floor, Cromwell Place, London, SW7 2JE and from 6 Pinewood Office Park, 33 Riley Road, Woodmead,       Sandton, Johannesburg during normal office hours for 30 days from the date of this report and available for download from www.jubileeplatinum.com.