Interim Results
Jubilee Platinum Plc
(Incorporated in England and Wales)
(Registration number 4459850
AIM: JLP
JSE: JBL
ISIN: GB0031852162
JUBILEE PLATINUM PLC
("Jubilee" or "the Company" or "the Group")
Interim Report
for the six months ended 31 December 2010
The Board of Jubilee Platinum, the AIM traded and JSE listed mine to metal specialist, is pleased to announce the interim results for the six months ended 31 December 2010.
Highlights
- First stage infill drilling programme for the Tjate project completed with exceptional results achieved
- Drill data confirm continuity of Merensky and UG2 Reefs, with significantly improved grade and thickness for the UG2 reef
- Application for a Mining Right for Tjate initiated on these encouraging drilling results
- Delivery times for long-lead items successfully negotiated to ensure new ConRoast 5MW DC Arc furnace remains on track for Q4 2011
- Existing ferroalloys processing infrastructure at Middelburg fully utilised and contributing to short-term cash flows
- Commenced installation of a new ferroalloy 5MW AC Arc furnace and capacity fully contracted
- MoU agreement entered into with Northam Platinum to evaluate joint venture using ConRoast process
- Drilling contract awarded to local Madagascan company for the Ambodilafa project
CHAIRMAN'S REPORT
Dear Shareholder,
The Company has enjoyed a very positive and successful period for the six months ended 31 December 2010, making significant progress in the implementation of its Mine-to-Metal business strategy.
In the period under review
The Company's Tjate project completed (January 2011) its stage 1 infill-drilling programme, which achieved exceptional results that confirmed the quality of the project and its suitability for development. The results furthermore confirmed continuity of both the Merensky and the UG2 Reefs and in particular those for the UG2 showed both improved platinum group metals ("PGM") grade and reef thickness compared with previous results. Encouraged by these results Tjate Platinum Corporation (Pty) Ltd commenced initiation of an application for a Mining Right for Tjate.
The Company was made good progress with its ConRoast project. It completed a detailed engineering design for a new ConRoast 5MW DC arc furnace, which is targeted for commissioning in Q4 2011 and which will be able to treat high chrome PGM-bearing material from, inter alia, Northam and Sylvania Resources.
The Company successfully concluded negotiations for delivery of the long lead
items for this furnace facility.
In developing its longer-term Mine-to-Metal strategy the Company entered into a Memorandum of Understanding with Northam Platinum to establish a joint venture to evaluate the construction of a second 5MW DC arc furnace facility using ConRoast technology specifically to smelt concentrate emanating from Northam's developing Booysendal mine. The Company also continued to assess numerous small-scale near term mining opportunities, which are being presented to it, due to our ability to process platinum concentrates containing high chrome values. Processing of own platinum concentrates significantly enhances the business model for the Company.
The Company progressed its joint venture (smelting collaboration) with Sylvania resources - processing platinum concentrate from Sylvania's developing Volspruit project. This collaboration remains on schedule with all roasting and smelting trials concluded as specified within the scoping study. The Company delivered the PGM-rich iron alloy from these trials to the CVMR company in Canada for refining trials.
The Company successfully concluded a feasibility study on CVMR refining of its own ConRoast product, the results of which demonstrated the ability to produce high purity nickel, iron and cobalt powders and a high grade PGM product at recoveries in excess of 99% for nickel, iron and PGMs. These base metal powders command premium market prices.
The Company strengthened the operational management at its 70% owned ferroalloy processing division (RST Metals (Pty) Ltd) in Middelburg with consequent improvement in short-term cash flow. In order to take advantage of the buoyant market for ferronickel, the Company commenced the installation of a new 5MW ferroalloy furnace, the capacity for which is fully contracted and which will increase the division's contribution to the Company's overall business plan when operational in Q2 of this year.
The Company acquired a majority control (51%) of Power Alt's gas-fired 11MW power generator on the Middelburg site for R27 million (approximately GBP±2,425) with an option to acquire additional equity. This acquisition, which has the conditional rights to generate up to 33MW power, minimises the Company's dependence on the national grid, offsets it power costs and has the potential to become a power supplier.
In Madagascar the Company awarded a contract to a local company to drill on its Ambodilafa concession. The local company commenced mobilising to site during Q1 2011.
During the period under review, the Company made a loss of £1,252,442 against a loss of £2,246,000 in the six months ended 31 December 2009. The loss per share for the period under review was 77 pence against a loss of 82 pence for the interim period ended 31 December 2009.
The platinum price has remained buoyant during the crisis and at the time of writing continues to demonstrate further price growth potential.
The Company's satisfactory progress on its major ConRoast project, further definition of the Tjate mineral resource and peripheral projects provides a broad base and critical mass, from which to develop and further enhance shareholder value in a period of strong platinum price predictions.
Colin Bird
Chairman
28 March 2011
Consolidated Statement of Comprehensive Income
For the six months ended 31 December 2010
For the
For the six months
six months ended Year
ended 31 Dec 2009 ended
31 Dec 2010 Unaudited 30 Jun 2010
Unaudited Restated Audited
£'000 £'000 £'000
Revenue 3,567 237 950
Cost of sales (2,168) (193) (458)
1,399 44 492
Negative goodwill - - 1,615
Other administrative expenses (2,697) (1,791) (4,503)
Total administrative expenses (2,697) (1,791) (2,888)
Operating loss (1,298) (1,747) (2,396)
Finance income 46 20 168
Profit on exchange rate - - -
Goodwill written off - (519) -
Impairment loss on intangibles (1) - -
Loss before tax expense (1,253) (2,246) (2,228)
Income tax expense - - -
Loss for the period after income
tax expense (1,253) (2,246) (2,228)
Number of shares in issue 256,536,092 229,550,922 254,463,290
Weighted average number of shares
in issue 163,593,604 270,555,886 162,951,035
Diluted weighted average number of
shares in issue 165,558,569 275,900,886 164,916,000
Basic loss per share (pence) (0.77) (0.82) (1.35)
Diluted loss per share (pence) (0.76) (0.81) (1.35)
Headline loss per share (pence) (0.76) (0.81) (1.35)
Reconciliation of headline loss:
Loss attributable to
Jubilee Platinum Plc shareholders (1,253) (2,246) (2,228)
Impairment of assets - - -
Loss on disposal of foreign subsidiary - - -
Loss on disposal of plant and equipment - - -
Headline loss (1,253) (2,246) (2,228)
Headline loss per share (pence) (0.76) (0.81) (1.35)
Consolidated Statements of Financial Position
As at 30 December 2010
31 Dec 2009
31 Dec 2010 Restated 30 Jun 2010
Unaudited Unaudited Audited
£'000 £'000 £'000
ASSETS
Non-current assets
Intangible assets 86,125 60,317 80,706
Property, plant and equipment 10,406 2,924 112
Other receivables - 54 -
Total non-current assets 96,531 63,295 80,818
Current assets
Trade and other receivables 3,025 1,244 8,359
Inventory 956 276 682
Cash and cash equivalents 9,987 16,572 12,997
Total current assets 13,968 18,092 22,038
TOTAL ASSETS 110,499 81,387 102,856
LIABILITIES
Non-current liabilities
Deferred tax (16,575) - (16,575)
Current liabilities
Contingent/Deferred consideration (1,400) - (1,400)
Trade and other payables (4,226) (2,121) (1,731)
Total current liabilities (5,626) (2,121) (3,131)
TOTAL LIABILITIES (22,201) (2,121) (19,706)
NET ASSETS 88,298 79,266 83,150
EQUITY
Share capital 2,565 2,296 2,545
Share premium 57,595 55,366 56,977
Merger reserve 23,184 23,184 23,184
Share-based payments reserve 3,548 1,678 3,005
Currency translation reserve 15,607 9,703 10,387
Retained earnings (14,201) (12,961) (12,948)
TOTAL EQUITY 88,298 79,266 83,150
Consolidated Statement of Changes in Equity
For the six months ended 31 December 2010
Share-
based Foreign
Share Share Merger payment exchange
capital premium reserve reserve reserve
Group £'000 £'000 £'000 £'000 £'000
Balance at 1 July 2009 1,184 33,855 4,970 1,678 6,776
Issue of share capital 1,112 - - - -
Premium on issue of
share capital - 21,511 18,214 - -
Goodwill translation - - - - 993
Net loss for the period - - - - -
Currency translation
difference - - - - (19)
Balance at 31December
2009 2,296 55,366 23,184 1,678 7,750
Issue of share capital 249 - - - -
Premium on issue of
shares - 2,685 - - -
Issue costs - (1,074) - - -
Share-based payment
charge - - - 1,327 -
Total comprehensive
income for the period - - - - 2,637
Balance at 30 June
2010 2,545 56,977 23,184 3,005 10,387
Issue of share capital 20 - - - -
Premium on issue of
share capital - 618 - - -
Share-based payment
charge - - - 543 -
Net loss for the
period - - - - -
Currency translation - - - - 5,220
Balance at 31
December 2010 2,565 57,595 23,184 3,548 15,607
Other Minority Retained Total
reserves Interest earnings equity
Group £'000 £'000 £'000 £'000
Balance at 1 July 2009 - - (10,720) 37,743
Issue of share capital - - - 1,112
Premium on issue of share
capital - - - 39,725
Goodwill translation - - - 993
Net loss for the period - - (2,241) (2,241)
Currency translation difference - - - (19)
Balance at 31December 2009 - - (12,961) 79,266
Issue of share capital - - - 249
Premium on issue of shares - - - 2,685
Issue costs - - - (1,074)
Share-based payment charge - - - 1,327
Total comprehensive income for
the period - - 13 2,650
Balance at 30 June 2010 - - (12,948) 83,150
Issue of share capital - - - 20
Premium on issue of share
capital - - - 618
Share-based payment charge - - - 543
Net loss for the period - - (1,253) (1,253)
Currency translation - - - 5,220
Balance at 31 December 2010 - - (14,201) 88,298
Condensed Consolidated Statement of Cash Flows
For the six months ended 31 December 2010
Six months
Six months ended Year
ended 31 Dec ended
31 Dec 2009 30 Jun
2010 Restated 2010
Unaudited Unaudited Audited
£'000 £'000 £'000
Cash flows from operating activities
Loss for the period (1,253) (2,246) (2,228)
Finance income 46 20 168
Depreciation 22 320 74
Share-based payment 543 - 1,327
Other non-cash movements 5,220 (1,142) -
Amortisation of intangibles 545 - 327
Profit on sale of property, plant and
equipment - (1,735) (11)
Decrease/(Increase) in inventory (274) (277) 241
Decrease/(Increase) in receivables 5,334 (2,777) 1,128
(Decrease)/Increase in payables 2,459 1,573 (10,454)
Net cash used in operating activities 12,642 (6,264) (9,428)
Cash flows from investing activities
Increase in loans and investments (465) - -
Acquisition of subsidiary, net of cash acquired - - 223
Proceeds from sale of property, plant
and equipment - - 47
Funding of deposit account for business
combination - - (7,652)
Purchase of intangible fixed assets (5,419) (112) (888)
Purchase of property, plant and
equipment (10,406) - (25)
Net cash used in investing activities (16,290) (112) (8,295)
Cash flows from financing activities
Issue of shares and warrants 638 15,307 23,992
Issue costs - - (1,074)
Net cash generated from financing
activities 638 15,307 22,918
Net increase/(decrease) in cash and
cash equivalents (3,010) 8,931 5,195
Cash and cash equivalents
at beginning of the period 12,997 7,641 7,641
Effects of foreign exchange on cash and
cash equivalents - - 161
Cash and cash equivalents at end of the
period 9,987 16,572 12,997
Notes to the financial results
1. The interim financial information for the six months ended 31 December 2010 is unaudited. The interim accounts have been prepared in accordance with the recognition, measurement and presentation and disclosure requirements of International Financial Reporting Standards, including IAS 34: Interim Financial Reporting, AC 500 Standards, the Companies Act, 1973, and the JSE Limited Listings Requirements. The accounting policies have been applied
consistently through the Group and are consistent with those for the year ended 30 June 2010. The interim statement was approved by the Board on
29 March 2011.
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 30 Jun
31 Dec 2010 Restated 2010
£'000 £'000 £'000
Loss on ordinary activities
United Kingdom (1,198) (1,406) (3,168)
South Africa (48) (1,042) (430)
Australia 40 165 1,370
Madagascar (46) 38 -
Mauritius (1) (1) -
Total loss (1,253) (2,246) (2,228)
Net assets by location
Six months ended
31 Dec 2010 31 Dec 2009 30 Jun 2010
£'000 £'000 £'000
United Kingdom 5,725 42,769 3,477
South Africa 63,862 33,185 61,277
Australia 18,396 2,999 18,396
Madagascar 315 305 -
Mauritius - 8 -
Total net assets 88,298 79,266 83,150
3. Loss per share
Six months Six months
ended ended 31 Dec Year ended
31 Dec 2010 2009 Restated 30 Jun 2010
£'000 £'000 £'000
Loss for the financial period (1,253) (2,246) (2,228)
Weighted average number of
shares in issue 163,593,604 270,555,886 162,951,035
Dilutive effect of share options 1,964,965 5,345,000 1,964,965
Basic loss per share (pence) (0.77) (0.82) (1.35)
Diluted loss per share (pence) (0.76) (0.81) (1.35)
4. No dividend was declared during the period ended 31 December 2010 (December 2009: Nil).
5. On 22 December 2010, the Group allotted and issued 1,222,004 new ordinary shares of 1p each in Jubilee. These shares were issued as payment for the feasibility study of the CVMR project.
On 17 August 2010, the Group allotted and issued 850,798 new ordinary shares of 1p each in Jubilee. These shares were issued following the deemed achievement of K-Plats performance hurdle. These shares were the final payment in settling the K-Plats contract.
6. No changes were made to the Board of Directors to date.
7. During the period under review Saffery Champness resigned as Auditors of the Company and BDO Spencer Steward (JHB) Inc. were appointed in their stead.
8. Copies of the interim report are available to the public free of charge from the Company at 4th Floor, Cromwell Place, London, SW7 2JE and from Building B, 1st Floor, corner Witkoppen Road and Waterford Place, Paulshof, Johannesburg, during normal office hours for 30 days from the date of this report and available for download from www.jubileeplatinum.com
9. The profit on exchange, £1,953,000, previously stated as an income in the interim report of 31 December 2009, was restated during June 2010 and capitalised to the currency translation reserve.
Enquiries:
Jubilee Platinum plc
Colin Bird, Chairman
Leon Coetzer, CEO +27 (0) 11 465 1913
Jubilee Platinum plc
Andrew Sarosi +44 (0) 1752 221937
finnCap
Matthew Robinson, Corporate Finance +44 (0) 20 7600 1658
Joanna Weaving, Corporate Broking
Sasfin Capital
Leonard Eiser, Corporate Finance +27 (0) 11 809 7738
Bishopsgate Communications Ltd
Nick Rome +44 (0) 20 7562 3350
Michael Kinirons
Administrative information:
Directors
Colin Bird (Chairman)
Dr M Phosa (Non-Executive Director)
Leon Coetzer (Chief Executive Officer)
Andrew Sarosi (Executive Director)
Chris Molefe (Non-Executive Director)
Eduard Victor (Financial Director)
Secretary
Stephen Ronaldson (UK)
Fusion Corporate Secretarial Services (Pty) Ltd (SA)
(Represented by Melinda van den Berg)
Registered office
United Kingdom
4th Floor
2 Cromwell Place
London SW7 2JE
South Africa
Building B
1st Floor
Corner Witkoppen Road and Waterford Place, Paulshof, 2191
Auditors
United Kingdom
BDO Stoy Hayward LLP
55 Baker Street
London W1U 7EU
United Kingdom
South Africa
BDO Spencer Steward (JHB) Inc
13 Wellington Road
Parktown
Johannesburg, 2193
Nominated adviser and broker
finnCap
60 New Broad Street
London EC2MIJJ
Sponsor
Sasfin Capital
Sasfin Place
29 Scott Street
Waverley 2090
Bankers
National Westminster Bank plc
246 Regent Street
London W1B 3PB
Registrars
United Kingdom
Capita Registrars
Northern House
Woodsome Park Fenay Bridge
Huddersfield HD8 0GA
South Africa
Computershare Investor Services
(Pty) Ltd
70 Marshall Street
Johannesburg, 2001
Solicitors
United Kingdom
Fasken Marineau
17 Hanover Square
London W1S 1HU
South Africa
Eversheds
22 Fredman Drive
Sandton, 2196
This information is provided by RNS
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