TIDMJLP
RNS Number : 4107T
Jubilee Metals Group PLC
25 March 2021
Registration number (4459850)
Altx share code: JBL
AIM share code: JLP
ISIN: GB0031852162
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED
UNDER THE UK VERSION OF THE MARKET ABUSE REGULATION NO 596/2014
WHICH IS PART OF ENGLISH LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL)
ACT 2018, AS AMED. ON PUBLICATION OF THIS ANNOUNCEMENT VIA A
REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO
BE IN THE PUBLIC DOMAIN.
Jubilee Metals Group PLC
("Jubilee" or "the Company" or "the Group")
UNAUDITED INTERIM RESULTS
FOR THE SIX MONTHSED 31 DECEMBER 2020
Jubilee, the AIM and Altx traded metals processing company is
pleased to announce its unaudited interim results of the Group for
the six months ended 31 December 2020, a period that has seen
exceptional operational and financial growth. These results are
compared with the period for the six months ended 31 December 2019
as the comparative period unless stated otherwise.
HIGHLIGHTS
Financial highlights
Six-month period under review
-- Jubilee attributable earnings (i) for the six-month period
increased sharply by 212 %, to a record GBP 30.9 million (ZAR 656
million) (ii) (2019: GBP 9.9 million (ZAR 170.4 million)), driven
mainly by increased operational output with PGM production surging
by 34 % and increased metal prices over the period (iii)
-- Adjusted EBITDA (iv) for the six-month period increased by
237 % to GBP 29.3 million (ZAR 622 million) (2019: GBP 8.7 million
(ZAR 150 million))
-- Basic earnings per share for the six-month period increased
by 160 % to 0.91 pence (ZAR 19.21 cents) (2019: 0.35 pence (ZAR
6.09 cents))
-- Revenue increased 110 % to GBP 53.4 million (ZAR 1.1 billion)
(2019: GBP 25.4 million (ZAR 439.4 million))
-- Operating profit increased sharply by 355 % to GBP 25.5
million (ZAR 541 million) (2019: GBP 5.6 million (ZAR 97.7
million))
-- Cash generated from operations before movements in working
capital increased by 265 % to GBP 28.8 million (ZAR 611.4 million)
(2019: GBP 7.9 million (ZAR 136.3 million)) (v)
-- The Group balance sheet strengthened further on the back of
the strong operational performance, with total assets at GBP 152.9
million (ZAR 3.1 billion), up from GBP 131 million (ZAR 2.8
billion) at the end of June 2020, total equity increasing by 21.3 %
to GBP 114 million (ZAR 2.3 billion), for the same period,
maintaining a high 75 % equity ratio (30 June 2020: 72 %)
-- Cash and cash equivalents stood at GBP 9.8 million (ZAR 195
million), with short term assets covering a healthy 301 % of
short-term liabilities compared to 235 % at 30 June 2020
Post the period under review
-- Jubilee through its South African subsidiary Windsor SA,
executed a scalable working capital credit facility with ABSA Bank,
which signals Jubilee's ability to attract bank and structured
funding to support its growth objectives, on the back of its
repeated quality earnings
(i) Attributable earnings refer to earnings attributable to the
group based on its contractual rights in each project
(ii) Conversion rates used for revenue and earnings are at the
average conversion rate for the period and for balance sheet at the
spot rate at period end. Conversion rates used for capital
expenditure and acquisitions are at current spot rates
(iii) The average Platinum price increased 11% from US$501/oz to
US$557/oz, Palladium increased 19% from US$347/oz to US$413/oz and
Rhodium increased 245% from US$373/oz to U$1 286/oz from 31
December 2019 to 31 December 2020
(iv) Adjusted EBITDA refers to EBITDA adjusted for non-cash
expenses including impairments, gain on bargain purchase and
foreign exchange differences
(v) Refer to the table on Group Cash below
Operational highlights
PGM
Six-month period under review
-- PGM (vi() production for the six-month period up 34 % to 28 187 ounces (2019: 21 082 ounces)
-- PGM revenue up 125 % to GBP 36.6 million (ZAR 776 million)
(2019: GBP 16.3 million (ZAR 281.6 million))
-- PGM attributable earnings (vii) up 172 % to GBP 26.4 million
(ZAR 560 million) (2019: GBP 9.7 million (ZAR 167.7 million))
-- Increased PGM production was achieved, including record
production during December, despite the planned scale down of
operations at Jubilee's Eland Platinum JV PGM partner
Post the period under review
-- Inyoni expansion currently underway targeting to further
improve PGM production rates and targeted PGM recoveries, expansion
expected to conclude during Q2 2021
(vi) Platinum Group Metals (6E platinum, palladium, rhodium,
iridium, osmium, and gold).
(vii) All numbers reflect only production attributable to
Jubilee and excludes that portion of production attributable to its
JV partner.
CHROME
Six-month period under review
-- Chrome production for the six-month period up 72 % to 319 834
tonnes of saleable chromite concentrate (2019: 186 249 tonnes)
-- Chrome revenue up 27 % to GBP 11.6 million (ZAR 245.3
million) (2019: GBP 9.12 million (ZAR 157.8 million))
-- Attributable chrome earnings are up 333 % to GBP 1.3 million
(ZAR 28 million) (2019: GBP 0.3 million (ZAR 4.7 million))
-- The increase in chrome earnings was supported by the
implementation of the new fixed margin chrome processing
contracts
-- The new 35 000 tonnes per month chrome beneficiation facility
named, Windsor 8, commenced operations in October 2020
-- Jubilee commenced with the construction of an additional new
80 000 tonne per month chrome beneficiation operation near its
Inyoni PGM Operations. The facility will consist of four integrated
chrome recovery circuits to maximise chrome efficiencies and is
expected to be fully commissioned within Q2 2021
Post the period under review
-- Jubilee commenced with the commissioning of the first of the
four integrated chrome recovery circuits combined forming the new
80 000 tonnes per month chrome beneficiation facility, with the
second and third process scheduled to commence commissioning
immediately
COPPER
Period under review
-- Jubilee's Sable Refinery achieves early earnings from its
copper and cobalt production as part of securing operational
readiness to accept first production from Project Roan, producing a
total of 1 447 tonnes of plated copper cathode to date
-- The construction of the first processing facility, named
Project Roan, has commenced and will be commissioned in three
phases to allow the early production of partially upgraded copper
concentrates for refining at the Sable Refinery
-- A capital budget of US$ 17 million has been allocated to
Project Roan which is funded from Jubilee's own cash-flow
-- Jubilee secured the rights to in excess of 300 million tonnes
of copper and cobalt containing material at surface, which combined
will be the primary feed source to the three copper and cobalt
processing facilities being targeted for construction
Post the period under review
-- Phase one of Project Roan reaching completion and targeting
to commence delivery of intermediate copper concentrate to Sable
Refinery during April 2021 despite severe disruptions caused by
heavy rains in the region
Leon Coetzer, CEO of Jubilee, commented: "The acquisition of the
rights to almost 300 million tonnes of copper and cobalt tailings
with the completion of five major transactions in Zambia; the
maturity of operations and continued delivery of record PGM and
Chrome earnings in South Africa; and a 110 % increase in Group
Revenue to GBP 53.4 million resulting in attributable earnings of
GBP 30.9 million, are just a few of the milestones met by the
Jubilee team during the six-month period under review. Despite the
unprecedented challenges posed by the ongoing pandemic, H2 2020 was
a period of significant growth for the Company.
"Central to achieving the above milestones is our commitment to
'The Jubilee Way', and I am extremely grateful to the Jubilee team
which has continuously demonstrated its resilience and commitment
to this, always striving to translate leading in-house processing
and metals recovery excellency into industry leading operational
efficiencies.
"On the back of new third party and ore supply agreements as
well as improved efficiencies across our chrome and PGM operations,
we have delivered both record production and financial performance
at our South African operations. Importantly, thanks to this
sustained earnings growth, we have been able to fund the
capitalisation of our Sable Refinery and Project Roan currently
under construction in Zambia which has been the focus of much of
our efforts over the six-month period.
"We are now ramping up production with the first copper
concentrator currently under construction at Project Roan and set
to commence delivery of the first intermediate copper concentrate
to Sable Refinery within the next three weeks. We are fully
committed to achieving our target of producing 25 000 tonnes of
copper per annum within the next four years.
"Our success in South Africa and progress in Zambia is a clear
demonstration of our technical know-how and IP when it comes to
surface material into value and we are now perfectly poised to play
a commanding role in the sector including in Zambia."
Chairperson's Statement
Jubilee has delivered an exceptional performance for the
six-month reporting period with significant gains achieved at both
an operational and financial level.
Despite the challenges faced due to the continued Covid-19
pandemic the Company was able to largely buffer the impact on the
operations by adjusting to more regulated working conditions and
maintaining a robust protocol for the management of Covid-19 which
was in line with government guidelines and in some cases beyond.
Consistent with our operational philosophy, the entire Jubilee team
demonstrated support and commitment whilst dealing with the
potential negative effects of the pandemic and we thank everyone
for their hard work and support in this regard.
Our PGM and chrome operational earnings increased sharply to GBP
27.7 million representing an increase of 178 % over the previous
reporting period. This increase was supported by strong operational
gains in throughput, operational efficiencies and buoyant PGM
prices.
PGM operational earnings increased significantly achieving an
overall 172 % increase delivering 28 187 PGM ounces and the Windsor
chrome operation contributed to the improved earnings with the new
Windsor 8 chrome operation commencing production during October
2020. We continue to aggressively grow our chrome beneficiation
capacity which also produced, as a by-product, a PGM rich discard
stream as further feed to our PGM operations. In November 2020, in
line with this chrome strategy, Jubilee commenced with the
construction of an additional 80 000 tonnes per month chrome
beneficiation facility targeting the processing of chrome
Run-Of-Mine ore. On completion of this new facility Jubilee will
hold a total chrome feed processing capacity of 250 000 tonnes per
month of both chrome ore and tailings.
This dual metal approach has served us well during recent
periods with the low chrome metal prices cycle being offset by PGMs
providing a robust upside as the PGM basket price demonstrated
value increase. We, as a company, are able to react to changing
metal prices on a short-term basis assuring that we maximise
contribution from our various ore sources. Jubilee has achieved
success in the chrome and PGM industry by combining experience and
innovation with business acumen taking us to our current strong
industry position.
We now welcome the challenge of growing our Zambian copper and
cobalt operation. The acquisition of the Sable Refinery in Kabwe
was a pivotal component in the implementation of the Company's
copper strategy recognising the ability to reach operational
readiness of the Sable Refinery in the short term. We can produce,
without any expansion, up to 16 000 tonnes of copper cathodes and
that is our immediate target. We have capitalised the Sable
Refinery achieving full operational readiness to accept the first
intermediate copper concentrate from Project Roan and have achieved
some early earnings during the interim period. The first of three
targeted processing facilities is under construction, which will
enhance copper earnings progressively during the first half of this
year. At full capacity, Project Roan is targeted to produce 10 000
tonnes per annum of equivalent copper units.
During the period, we announced the acquisitions from various
sources of some 300 million tonnes of copper/cobalt tailings as
feed for the mid-term future. We intend to construct three new
processing plants to process and recover the copper and cobalt in
these resources targeting the production of 25 000 tonnes of copper
once completed. The first of these processing facilities is dubbed
Project Roan.
We are excited about the potential for our copper operations to
deliver significant earnings and believe that current prices can
not only be maintained but also be increased upon. We are mindful
of a world that has not yet beaten or fully managed the Covid-19
pandemic and therefore anticipate global stop start economics.
Having said that we are in no doubt that the sheer weight of money
directed at infrastructure will maintain demand and that the EV
vehicle rollout will be accelerated. Like many in our industry, we
expect that these factors will continue to drive strong demand for
copper supply and upward pressure on prices over the medium
term.
Zambia has vast amounts of waste material produced by past
mining and there is huge potential for new mining of copper in the
country, providing Zambia with the opportunity to show growth
consistent with other major producing nations. Jubilee intends to
be part of that growth and as such we will continue to be proactive
and offering assistance in realising that growth.
We were fortunate that during the period we have widened our
shareholder profile and we now have an enviable balance of retail,
institutional and family office shareholders with the larger funds
also taking interest in the Company either by investment or regular
review. Like all rapidly growing companies we are aware that
growth, whilst bringing new opportunities, is not without its
challenges and the Board is constantly reviewing its focus and
approach to ensure that it is flexible in a rapidly changing
world.
We expect the year 2021 to be another transformational year for
the Company with South Africa maturing and Zambia evolving, and we
are confident that we can grow our earnings consistent with our
internal forecast. At the same time, we recognise that resources
companies are seldom faced with such broad ranging opportunities
that we now see. It is our intention to maintain and accelerate our
growth in challenging but exciting times.
Colin Bird
Non-Executive Chairman
GROUP FINANCIAL AND OPERATIONAL PERFORMANCE
Unit 6 months 6 months 12 months
to to to
----------------- ----------------
31-Dec-20 31-Dec-19 30-Jun-20
----------------- ----------------- ----------------
GROUP
--------- ----------------- ----------------- ----------------
Revenue GBP'000 53 438 25 403 54 775
--------- ----------------- ----------------- ----------------
Adjusted attributable earnings
(i) GBP'000 30 946 9 849 25 088
--------- ----------------- ----------------- ----------------
Adjusted attributable earnings
margin % 58 39 46
--------- ----------------- ----------------- ----------------
EBITDA GBP'000 28 907 10 269 22 210
--------- ----------------- ----------------- ----------------
Adjusted EBITDA (ii) GBP'000 29 325 8 679 22 643
--------- ----------------- ----------------- ----------------
Adjusted EBITDA margin % 55 34 41
--------- ----------------- ----------------- ----------------
PGM
--------- ----------------- ----------------- ----------------
PGM GBP revenue GBP'000 36 593 16 280 34 590
--------- ----------------- ----------------- ----------------
PGM $ revenue $'000 47 791 20 516 43 594
--------- ----------------- ----------------- ----------------
Attributable PGM GBP earnings GBP'000 26 387 9 695 21 486
--------- ----------------- ----------------- ----------------
Attributable PGM $ earnings $'000 34 462 12 218 27 079
--------- ----------------- ----------------- ----------------
Attributable PGM earnings
margin % 72 60 62
--------- ----------------- ----------------- ----------------
Attributable PGM ounces produced oz 28 187 21 082 40 743
--------- ----------------- ----------------- ----------------
PGM $ revenue per ounce $/oz 1 696 973 1 070
--------- ----------------- ----------------- ----------------
PGM attributable $ earnings
per ounce $/oz 1 223 580 665
--------- ----------------- ----------------- ----------------
Adjusted PGM production $
unit cost (iii) $/oz 470 519 541
--------- ----------------- ----------------- ----------------
CHROME
--------- ----------------- ----------------- ----------------
Chrome GBP revenue GBP'000 11 565 9 123 17 158
--------- ----------------- ----------------- ----------------
Chrome $ revenue (iv) $'000 15 105 11 497 21 624
--------- ----------------- ----------------- ----------------
Attributable chrome GBP earnings GBP'000 1 320 271 803
--------- ----------------- ----------------- ----------------
Attributable chrome $ earnings $'000 1 724 341 1 013
--------- ----------------- ----------------- ----------------
Attributable chrome earnings
margin % 11 3 5
--------- ----------------- ----------------- ----------------
Attributable chrome tonnes
produced tonnes 319 834 186 249 377 883
--------- ----------------- ----------------- ----------------
Chrome $ revenue per tonne $/t 47 62 57
--------- ----------------- ----------------- ----------------
Chrome attributable $ earnings
per tonne $/t 5 2 3
--------- ----------------- ----------------- ----------------
(i) Attributable earnings refer to earnings attributable to the
group based on its contractual rights in each project.
(ii) Adjusted EBITDA refers to EBITDA adjusted for non-cash
expenses including impairments, gain on bargain purchase
and foreign exchange differences.
(iii) Adjusted PGM production unit cost includes all direct and
indirect processing costs attributable to the production of PGMs.
The period under review also includes all operating costs for the
Windsor PGM Joint Venture allocated to the Jubilee attributable PGM
ounces.
(iv) Chrome revenue is recognised on an ex-works basis after
costs of export logistics including freight, shipping and
marketing.
PRESENTATION OF MOVEMENTS IN GROUP CASH
6 months 6 months 12 months
to to to
31-Dec-20 31 Dec-19 30-Jun-20
---------- ------------- ----------
GBP'000 GBP'000 GBP'000
---------- ------------- ----------
Opening balance 9 948 18 865 18 865
---------- ------------- ----------
Cash generated from operations
before movements in working
capital 28 824 7 880 22 937
---------- ------------- ----------
Adjusted for movements in working
capital
---------- ------------- ----------
(Increase)/decrease in inventories (5 507) 440 (90)
---------- ------------- ----------
(Increase)/decrease in receivables
(i) (12 462) 811 (6 787)
---------- ------------- ----------
Increase/(decrease) in payables 507 (3 113) 5 899
---------- ------------- ----------
Cash generated from operations 11 362 6 018 21 734
---------- ------------- ----------
Less: Taxation paid (3 580) - -
---------- ------------- ----------
Less: Net finance cost (1 093) (1 123) (2 296)
---------- ------------- ----------
Cash from operating activities 6 689 4 895 19 438
---------- ------------- ----------
Acquisition of rights to copper (1 606) - -
tails
---------- ------------- ----------
Acquisition of PGM and chrome
rights - (11 129) (14 667)
---------- ------------- ----------
Acquisition of Sable Zinc Kabwe
Refinery - (5 295) (7 732)
---------- ------------- ----------
Purchase of property plant
and equipment (4 799) (1 101) (1 390)
---------- ------------- ----------
Purchase of intangible assets (786) - (2 322)
---------- ------------- ----------
Net proceeds from the issue
of new Jubilee ordinary shares - 5 902 5 696
---------- ------------- ----------
Warrants exercised 43 - -
---------- ------------- ----------
Repayment of loans (1 253) (2 154) (4 168)
---------- ------------- ----------
Other (175) (173) 247
---------- ------------- ----------
Effect of currency movements
on cash 1 706 436 (4 019)
---------- ------------- ----------
Closing balance 9 767 10 247 9 948
---------- ------------- ----------
(i) The significant increase in accounts receivable is mainly
due to revenue recognised at the period end for inventories sold
and delivered, but subject to final pricing and invoicing post the
period end. These receivables are recognised as contract assets in
the Statement of Financial Position.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE ("ESG")
Jubilee, as a specialist in processing of historical mine waste
and tailings, and through its operations, continuously reduces the
negative environmental effects caused by the historical activities
of mining in the jurisdictions where it operates.
Registered as a public company and listed on the AIM market of
the London Stock Exchange and the Altx board of the Johannesburg
Stock Exchange, Jubilee is committed to providing effective,
relevant and transparent disclosure of data in relation to all
environmental, social and governance ("ESG") aspects of the Group's
business activities.
Through its evolving ESG policies and strict operational
protocols, the Group is a committed and responsible corporate
citizen, incorporating best practices wherever possible for both
the operational, social, environmental and governance aspects of
the Group's business activities.
Going forward, it is the Board's intention to more formally and
in greater detail disclose the progress of the Group's ESG related
performance and initiatives. Jubilee will initiate its regular and
more structured ESG reporting with the launch of its new corporate
website currently under construction.
ENVIRONMENTAL
Jubilee has adopted three core themes to control and further
reduce the net carbon footprint of its operations. The three themes
are grouped under Effluent Management, Energy Usage and Water
Consumption. Under these themes the Company manages a continuous
improvement programme along the following principals;
-- Reviewing and updating where applicable related Policies and Procedures
-- Accurate measuring and reporting of operating base line
-- Setting and holding to account short- and medium-term targets
-- Identifying and implementing intervention projects to achieve targets
-- Measuring and reporting of progress made
Effluent Management
The Company's zero effluent policy is central to its project
designs and operational management. Under the policy the company
strives to transform historical mine waste sites to a fully
contained site with zero effluent egress.
Energy Usage
Energy usage is a focal point of Jubilee's environmental
footprint. The major energy usages are in the supply of electricity
to sustain operations and through the use of fuels in the transport
of materials. At a potential chrome feed capacity of 250 000 tonnes
per month, the logistical management of material movement is a key
focus area for Jubilee and offers many areas for optimisation to
reduce the related carbon footprint. Jubilee has identified key
intervention projects to significantly impact its related carbon
footprint which will form part of its detailed ESG reporting.
Water Consumption
Water, being a key element in the pumping of material and in the
physical separation process of both Chrome and PGMs, forms the
basis of Jubilee's production processes. Water usage is strictly
monitored by the engineering team and Jubilee strives to maximise
the usage of recycled water. Jubilee has launched several
intervention projects to further increase the retention of recycled
water as it strives to minimise its reliance on any natural
resources such as water.
SOCIAL
Jubilee pursues constant engagement with, and involvement of its
social partners affected by its operations. These engagements are
used to identify key interventions in addition to the social labour
programmes managed by Jubilee as defined under the processing
conditions set by regulators. Interventions are pursued that result
in a sustained impact on Jubilee's social partners.
Workforce
Stakeholder involvement and participation is considered an
integral part of labour relations. As such, successful annual wage
agreements have been concluded at all of the Company's operations.
In South Africa Jubilee currently offers direct employment to 319
people while in Zambia the Jubilee team has grown to a total of 204
local Zambians which is expected to increase sharply on the back of
Jubilee's copper strategy.
Community
Jubilee's community and social engagement projects are grouped
under education, health and sustainability
Jubilee has to date provided running water to approximately 400
households with a target to increase this number to 700 households
over the coming year. The water project includes the installation
and maintenance of an irrigated food garden operated sustainably by
the local community. The programme is further supported by a
feeding programme for the most vulnerable members.
Jubilee currently sponsors four bursaries for higher education
and annually sponsors eighteen community members with certificated
training of portable skills to enhance their employment
prospects.
During 2020, Jubilee was committed to ensuring that where
possible it provided support to the local communities with respect
to the Covid-19 pandemic. This included donating cloth masks and
sanitizers to 1 000 members. The team also believe that the
transfer of information is critical in the fight against the virus
and as such, Jubilee helped with the distribution of information
regarding Covid-19 regulations and health and safety to the
communities via the established forums.
Jubilee has prioritised the development and contracting of
community established small enterprises. To this end strategic
service level agreements were signed to assist local enterprise
development, focusing on general maintenance, transport and
security. These initiatives have already established sustainable
civil, security and transport companies wholly owned by the
communities and offering direct employment to their members.
GOVERNANCE
Jubilee's board, consisting of mining, engineering, corporate
finance and legal experts, maintains the responsibility of leading
the Company towards sustainable growth and is committed to leading
the Company with integrity. The Company subscribes to the King IV
Code of Corporate Governance in South Africa and the QCA Corporate
Governance Code in the UK and applies best practice wherever
possible which defines Corporate Governance as the exercise of
ethical and effective leadership by the governing body towards the
achievement of the following governance goals:
-- Anti- corruption
-- Ethical culture
-- Transparency
-- Risk Management
-- Good performance
-- Effective control
-- Legitimacy
-- Quantitative data
Jubilee continues to drive transparency in its stakeholder
engagement through the regular publishing of updates regarding the
Group's performance, strategy and operational developments. The
Company also engages with stakeholders via CEO interviews, which
are published on Jubilee's website and with the releasing of
financial results on a half yearly basis.
INTERIM PERIOD REVIEW
Jubilee's South African operations maintained their growth
trajectory during the six-month period on the back of a record
operational performance for both its PGM and chrome operations.
During the period under review Jubilee commissioned its new Windsor
8 chrome beneficiation plant further increasing its chrome
processing capacity by 35 000 tonnes per month, while also
commencing with the construction of its new 80 000 tonnes per month
chrome beneficiation plant situated near its Inyoni Operation. PGM
and Chrome operational earnings increasing by a record 178 % to GBP
27.7 million compared to the same comparative six-month period in
2019.
In addition to the strong performance of its South African
operations, Jubilee has made exceptional progress in the
implementation of its Copper and Cobalt strategy in Zambia. At the
beginning of the reporting period, in July 2020, Jubilee outlined
its plans to expand its business model into all aspects of copper
in Zambia due to the vast quantities of tailings available, with
the long term target of achieving production of 25 000 tonnes of
copper per annum within four years. Six months on, this copper and
cobalt strategy has already gained significant momentum, with
Jubilee having secured almost 300 million tonnes of copper and
cobalt tailings located in three zones across Zambia via the
completion of five major transactions. The roll-out of this
strategy has the potential to significantly increase earnings
growth and the Company is committed to reaching its targeted goal
of 25 000 tonnes per annum within the defined four-year period.
Jubilee has targeted to construct three copper processing
facilities to process the copper tailings to produce a copper
concentrate that will be refined at Jubilee's Sable Refinery. The
three copper processing projects have been named Projects Roan,
Elephant One and Elephant Two, with Project Roan commencing
construction and set to produce its first intermediate copper
concentrate for further refining at Sable during April 2021.
Platinum Group Metals (PGM) Operations - South Africa
Jubilee's PGM operations consist of the Inyoni and Windsor PGM
Operations. The PGM operations delivered a strong performance
during the period with revenue up 125 % to GBP 36.6 million (ZAR
776 million) when compared to the same period last year. PGM
operational earnings also increased by 172 % to GBP 26.4 million
(ZAR 560 million) from H2 2019. Whilst the Windsor PGM Operations
shut down temporarily as planned for part of the December period,
the Company's Inyoni PGM Operations continued to operate. The
expansion of the Inyoni Operation was approved and commenced
construction post the period under review to further improve
operation throughputs and overall PGM efficiencies. The average
Platinum price increased 11 % from US$ 501/oz to US$ 557/oz,
Palladium increased 19 % from US$ 347/oz to US$ 413/oz and Rhodium
increased 245 % from US$ 373/oz to US$ 1 286/oz from 31 December
2019 to 31 December 2020.
The table below presents the combined operational revenue and
earnings performance for PGMs for the period under review. The
figures represent the final results based on reconciled production
inputs and the allocation of costs have been standardised to fully
account for all in sustainable costs:
PGM Tailings PGM ounces Attributable Attributable Jubilee Jubilee Unit
processed delivered project project attributable attributable cost/
tonnes revenue revenue earnings earnings PGM oz
(GBP'000) (ZAR'000) (GBP'000) (ZAR'000) (i) (US$)
H2 2019 553 672 21 082 16.280 297.530 9 695 167.718 519
----------- ----------- ------------- ------------- -------------- -------------- -----------
H2 2020 595 664 28 187 36.593 776.032 26.387 560.450 470
----------- ----------- ------------- ------------- -------------- -------------- -----------
FY 30 June 1 035
2020 025 40 743 34.590 682.249 21.486 423.787 541
----------- ----------- ------------- ------------- -------------- -------------- -----------
(i) The unit cost per ounce of PGM is influenced by a component
of the acquisition cost for third party Run-Of-Mine ore.
Looking ahead to 2021, demand for the metals is expected to
remain well supported with a deficit in supply of both platinum and
palladium being predicted which is expected to provide strong
support for PGM prices.
Chrome Operations - South Africa
Jubilee has pursued an aggressive growth strategy of its chrome
operations. The chrome operations play a vital role to secure a
sustained feed supply to both the chrome and PGM operations. Chrome
ore is processed at the Jubilee chrome beneficiation plants to
produce a saleable chrome concentrate and a PGM containing discard
which is fed to the PGM recovery plants. Jubilee has expanded its
chrome operations to reach an overall processing capacity of chrome
ore of 115 000 tonnes per month which is in addition to its 55 000
tonnes per month chrome tailings facility at the Inyoni
Operation.
Jubilee has further commenced with the construction of an
additional 80 000 tonnes per month of chrome ore processing
facility which at completion will increase Jubilee's overall
processing capacity to 250 000 tonnes per month. At the time of
writing this report, Jubilee had commenced the commissioning of its
new 80 000 tonnes per month chrome processing facility.
During the period under review, Jubilee entered into a
third-party Run-Of-Mine ("ROM") chrome ore offtake agreement fully
committing both its Windsor Chrome beneficiation plant as well as
the future capacity of the new 80 000 tonnes per month chrome
beneficiation facility for the next three years, with an option for
this to be extended further, supplementing the already secured
surface chrome tailings stockpiles.
As a result of the completion of these agreements, as well as
efficiency improvements, the Company's chrome earnings and revenue
increased dramatically during the period. Chrome earnings increased
by 387 % to GBP 1.3 million (ZAR 28 million) compared to the same
period last year with chrome revenue increasing by 27 % to GBP 11.6
million (ZAR 245.3 million) from H2 2019.
The table below presents the combined operational revenue and
earnings performance for chrome for the period under review. The
figures represent the final results based on reconciled production
inputs and the allocation of costs have been standardised to fully
account for all in sustainable costs:
CHROME Chromite Project Project Jubilee Jubilee
concentrate revenue revenue attributable attributable
produced (GBP'000) (ZAR'000) earnings earnings
Tonnes (GBP'000) (ZAR'000)
H2 2019 186 249 9.123 157.821 271 4.686
------------- ----------- ----------- -------------- --------------
H2 2020 319 834 11.565 244.435 1.320 28.522
------------- ----------- ----------- -------------- --------------
FY 30 June
2020 377 883 17.158 338.422 803 15.847
------------- ----------- ----------- -------------- --------------
Chrome prices continued to remain volatile due to the
disruptions in the supply chain over the six- month period, and
these price fluctuations are expected to continue over the next six
months as the world emerges from the Covid-19 pandemic and supply
and demand fundamentals are better matched.
Copper and Cobalt Operations - Zambia
Jubilee's Sable Refinery achieved early earnings from its copper
and cobalt production as part of securing operational readiness to
accept first production from Project Roan, producing a total of 1
447 tonnes of plated copper cathode to date.
The Sable Refinery is fully operational and ready to commence
refining of Project Roan's material and has already achieved
earnings of GBP 1.8 million (ZAR 38.4 million) from production
during this phase. Copper prices increased strongly during the
period, reaching a seven year high in December 2020, driven by
strong demand fundamentals which are expected to last over the
medium term.
The Company's Kabwe Project combined with its multi-metal Sable
Refinery establishes Jubilee's fully integrated multi-metal
recovery and refining operational footprint in Zambia. The Sable
Refinery acts as a central processing facility for third party
copper material in the region as well as the refinery offtake for
the targeted copper tailings projects. Jubilee acquired the Sable
Refinery to serve as an entry point into Zambia, from which to
expand operations and take advantage of the various base metal
opportunities in the country. As previously announced the Company
has targeted to complete the zinc refining circuit to produce a
zinc concentrate by Q4 2021. The zinc circuit will target the
processing of both third-party zinc ore supplies within the region
and the Kabwe tails located adjacent to the Sable Refinery. The
vanadium circuit remains on-hold, pending a recovery in the market
fundamentals.
At the beginning of the reporting period, in July 2020, Jubilee
outlined its intention to expand its copper and cobalt operations
in Zambia with the target of producing 25 000 tonnes of copper per
annum within four years. The Company's copper and cobalt strategy
gained significant momentum over the six-month period under review
with the completion of five major acquisitions, securing the rights
to a total of almost 300 million tonnes of copper and cobalt
tailings. The tailings, which are spread across three different
locations, will be developed by Jubilee as three separate projects
with a processing facility being constructed at each: Project Roan,
Project Elephant One and Project Elephant Two. The concentrates
produced at each project will then be sent for further refining at
the Company's Sable Refinery with the option of either expanding
Sable Refinery or securing further refining capacity through JV
partnerships or acquisition to match the ramp-up of the three
processing facilities. The refining capacity at the Sable Refinery
is currently limited to 16 000 tonnes per annum. Jubilee intends to
increase its access to copper refining capacity to achieve 25 000
tonnes per annum within four years to ensure it is able to cater
for material received from all three projects in line with its
copper strategy.
During the period under review, the first of the three
processing facilities entered into its construction phase at
Project Roan and will be targeting an annual production rate of 10
000 tonnes of equivalent copper units. A capital expenditure of US$
17 million has been allocated towards the implementation of Project
Roan which will be funded from Jubilee cash flows. The processing
facility will be commissioned over three phases to accelerate the
delivery of copper units to the Sable Refinery. Phase one was
expected to commence delivery of copper units to the Sable Refinery
by end February 2021 but has been delayed mainly due to the heavy
rains experienced within the region destroying access roads and
delaying the commissioning to April 2021. The delivery of this
intermediate copper concentrate to Sable Refinery will result in
the first significant increase in production, with a target of
achieving 400 copper units per month.
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHSED 31 DECEMBER
2020
Consolidated Statement of Comprehensive Income for the six
months ended 31 December 2020
Unaudited Unaudited Audited
6 months 6 months 12 months
to to to
---------------- ---------------- ---------------
31 December 31 December ended 30
June
---------------- ---------------- ---------------
2020 2019 2020
---------------- ---------------- ---------------
GBP '000 GBP '000 GBP '000
---------------- ---------------- ---------------
Revenue 53 438 25 403 54 775
---------------- ---------------- ---------------
Cost of sales (22 492) (15 554) (29 687)
---------------- ---------------- ---------------
30 946 9 849 25 088
---------------- ---------------- ---------------
Operating costs (6 298) (4 260) (10 670)
---------------- ---------------- ---------------
Other income 850 60 1 471
---------------- ---------------- ---------------
Operating profit 25 498 5 649 15 889
---------------- ---------------- ---------------
Gain on bargain purchase - 2 309 6 607
---------------- ---------------- ---------------
Fair value adjustments - - (5 022)
---------------- ---------------- ---------------
Investment income 165 50 125
---------------- ---------------- ---------------
Finance costs (1 167) (1 324) (2 421)
---------------- ---------------- ---------------
Share of loss from associates (57) (121) (1 445)
---------------- ---------------- ---------------
Profit before taxation 24 440 6 563 13 733
---------------- ---------------- ---------------
Taxation (5 181) - 4 496
---------------- ---------------- ---------------
Profit for the period 19 259 6 563 18 229
---------------- ---------------- ---------------
Attributable to:
---------------- ---------------- ---------------
Owners of the parent 19 135 6 660 18 320
---------------- ---------------- ---------------
Non-controlling interest 124 (97) (92)
---------------- ---------------- ---------------
19 259 6 563 18 229
---------------- ---------------- ---------------
Weighted average number of shares
('000) 2 112 818 1 891 445 1 955 965
---------------- ---------------- ---------------
Diluted weighted average number
of shares ('000) 2 161 356 1 909 126 1 975 264
---------------- ---------------- ---------------
Earnings per share (pence) 0.91 0.35 0.94
---------------- ---------------- ---------------
Diluted earnings per share (pence) 0.89 0.35 0.93
---------------- ---------------- ---------------
Reconciliation of other comprehensive
income:
---------------- ---------------- ---------------
Profit for the period 19 259 6 563 18 229
---------------- ---------------- ---------------
Other comprehensive income
---------------- ---------------- ---------------
Loss on translation of foreign
subsidiaries 794 (3 112) (12 389)
---------------- ---------------- ---------------
Total comprehensive income attributable
to: 20 053 3 451 5 840
---------------- ---------------- ---------------
Owners of the parent 19 906 3 634 6 318
---------------- ---------------- ---------------
Non-controlling interest 147 (183) (478)
---------------- ---------------- ---------------
20 053 3 451 5 840
---------------- ---------------- ---------------
Consolidated Statement of Financial Position as at 31 December
2020
Unaudited Unaudited Audited
6 months 6 months 12 months
to to to
---------------- -------------- ---------------
31 December 31 December 30 June
---------------- -------------- ---------------
2020 2019 2020
---------------- -------------- ---------------
GBP '000 GBP '000 GBP '000
---------------- -------------- ---------------
Assets
---------------- -------------- ---------------
Non-current assets
---------------- -------------- ---------------
Property, plant and equipment 22 433 26 946 20 076
---------------- -------------- ---------------
Intangible assets 70 482 60 431 72 901
---------------- -------------- ---------------
Investments in associates 394 1 774 451
---------------- -------------- ---------------
Other financial assets 5 378 5 848 3 407
---------------- -------------- ---------------
Right of use asset 307 - -
---------------- -------------- ---------------
Total non-current assets 98 993 95 000 96 835
---------------- -------------- ---------------
Current assets
---------------- -------------- ---------------
Inventories 8 037 1 605 2 140
---------------- -------------- ---------------
Deferred tax 3 951 - 3 223
---------------- -------------- ---------------
Trade and other receivables 17 469 11 948 13 083
---------------- -------------- ---------------
Contract assets (i) 14 427 - 5 409
---------------- -------------- ---------------
Cash and cash equivalents 9 767 10 247 9 948
---------------- -------------- ---------------
Total current assets 53 907 23 800 33 803
---------------- -------------- ---------------
Total assets 152 899 118 800 130 638
---------------- -------------- ---------------
Equity and liabilities
---------------- -------------- ---------------
Share capital 114 628 111 723 114 585
---------------- -------------- ---------------
Reserves 11 089 19 293 10 318
---------------- -------------- ---------------
Accumulated loss (14 066) (45 183) (33 201)
---------------- -------------- ---------------
Total equity before non-controlling
interest 111 650 85 833 91 702
---------------- -------------- ---------------
Non-controlling interest 2 626 2 211 2 479
---------------- -------------- ---------------
Total equity 114 276 88 044 94 181
---------------- -------------- ---------------
Non-current liabilities
---------------- -------------- ---------------
Other financial liabilities 9 575 7 197 10 429
---------------- -------------- ---------------
Deferred tax liability 10 312 8 700 10 945
---------------- -------------- ---------------
Long term provisions 544 531 694
---------------- -------------- ---------------
Lease liability 260 - -
---------------- -------------- ---------------
Total non-current liabilities 20 692 16 428 22 068
---------------- -------------- ---------------
Current liabilities
---------------- -------------- ---------------
Other financial liabilities 1 062 12 327 1 461
---------------- -------------- ---------------
Trade and other payables 10 785 2 001 12 423
---------------- -------------- ---------------
Current tax payable 2 409 - -
---------------- -------------- ---------------
Contract liabilities (ii) 3 676 - 505
---------------- -------------- ---------------
Total current liabilities 17 931 14 328 14 389
---------------- -------------- ---------------
Total liabilities 38 623 30 756 36 457
---------------- -------------- ---------------
Total equity and liabilities 152 899 118 800 130 638
---------------- -------------- ---------------
(i) Revenue recognised at the period end for inventories sold
and delivered, but subject to final pricing are recognised as
contract assets
(ii) Payments received in advance for concentrate that is only
delivered and invoiced post the year end are recognised as contract
liabilities
Consolidated
Statement of
Changes in Equity
as at 31
December 2020
------------------- --------- ------------------- ------------ ------------- ---------- ------------ -------------- ---------------------------
Figures in pound Share Merger Share Convertible Currency Total Accumulated Total Non-controlling Total
sterling capital reserve based instrument translation reserves loss attributable interest equity
(GBP '000) payment reserve reserve to parent
reserve of equity
holders
--------- -------- --------- ------------ ------------- ---------- ------------ -------------- ----------------- --------
Balance at 1 July 105
2019 820 23 184 2 520 203 (3 587) 22 319 (51 843) 76 297 2 393 78 690
--------- -------- --------- ------------ ------------- ---------- ------------ -------------- ----------------- --------
Profit for the
year 18 320 18 320 (478) 17 843
--------- -------- --------- ------------ ------------- ---------- ------------ -------------- ----------------- --------
Other
comprehensive (12
income (12 003) (12 003) (12 003) - 003)
--------- -------- --------- ------------ ------------- ---------- ------------ -------------- ----------------- --------
Total
comprehensive
income
for the period (12 003) (12 003) 18 320 6 318 (478) 5 840
--------- -------- --------- ------------ ------------- ---------- ------------ -------------- ----------------- --------
Issue of share
capital net
of costs 8 765 8 765 8 765
--------- -------- --------- ------------ ------------- ---------- ------------ -------------- ----------------- --------
Share warrants
issued 206 206 206 - 206
--------- -------- --------- ------------ ------------- ---------- ------------ -------------- ----------------- --------
Share options
expired/exercised (325) (325) 321 (4) - (4)
--------- -------- --------- ------------ ------------- ---------- ------------ -------------- ----------------- --------
Share options
granted 120 120 120 120
--------- -------- --------- ------------ ------------- ---------- ------------ -------------- ----------------- --------
Business
combinations 564 564
--------- -------- --------- ------------ ------------- ---------- ------------ -------------- ----------------- --------
Total changes 8 765 1 (12 003) (12 001) 18 641 15 405 86 15 491
--------- -------- --------- ------------ ------------- ---------- ------------ -------------- ----------------- --------
Balance at 1 July 114
2020 585 23 184 2 521 203 (15 590) 10 318 (33 201) 91 702 2 479 94 181
--------- -------- --------- ------------ ------------- ---------- ------------ -------------- ----------------- --------
Profit for the
year 19 135 19 135 147 19 282
--------- -------- --------- ------------ ------------- ---------- ------------ -------------- ----------------- --------
Other
comprehensive
income 771 771 771 771
--------- -------- --------- ------------ ------------- ---------- ------------ -------------- ----------------- --------
Total
comprehensive
income
for the period 771 771 19 135 19 906 147 20 053
--------- -------- --------- ------------ ------------- ---------- ------------ -------------- ----------------- --------
Issue of share
capital net
of costs 43 43 - 43
--------- -------- --------- ------------ ------------- ---------- ------------ -------------- ----------------- --------
Total changes 43 771 771 19 135 19 949 147 20 095
--------- -------- --------- ------------ ------------- ---------- ------------ -------------- ----------------- --------
Balance at 31 114 114
December 2020 628 23 184 2 520 203 (14 819) 11 089 (14 066) 111 650 2 626 276
--------- -------- --------- ------------ ------------- ---------- ------------ -------------- ----------------- --------
Consolidated Statement of Cash flow for the six months ended 31
December 2020
Unaudited Unaudited Audited
---------------------------------------------
6 months 6 months 12 months
to to to
--------------------------------------------- -------------- ------------------- ---------------
31 December 31 December 30 June
--------------------------------------------- -------------- ------------------- ---------------
2020 2019 2020
--------------------------------------------- -------------- ------------------- ---------------
GBP '000 GBP '000 GBP '000
--------------------------------------------- -------------- ------------------- ---------------
Cash flows from operating activities
-------------- ------------------- ---------------
Profit before taxation 24 440 6 563 13 733
-------------- ------------------- ---------------
Adjustments for:
-------------- ------------------- ---------------
Depreciation and amortisation 3 243 2 382 6 502
-------------- ------------------- ---------------
Gain on bargain purchase - (2 309) (6 607)
-------------- ------------------- ---------------
Fair value adjustments - - 5 022
-------------- ------------------- ---------------
Profit on sale of non-current assets (10) - -
-------------- ------------------- ---------------
Share based payments - - 322
-------------- ------------------- ---------------
Results of equity accounted investments 57 121 1 445
-------------- ------------------- ---------------
Investment income (73) (50) (125)
-------------- ------------------- ---------------
Finance
cost 1 167 1 173 2 421
---------------------------------------------- -------------- ------------------- ---------------
Working capital changes
-------------- ------------------- ---------------
(Increase)/decrease in inventories (5 507) 440 (90)
-------------- ------------------- ---------------
(Increase)/decrease in receivables
(i) (12 462) 811 (6 787)
---------------------------------------------- -------------- ------------------- ---------------
Increase/(decrease) in payables 507 (3 113) 5 899
---------------------------------------------- -------------- ------------------- ---------------
Cash generated from operations 11 362 6 018 21 734
-------------- ------------------- ---------------
Investment income 73 50 125
-------------- ------------------- ---------------
Finance
cost (1 167) (1 173) (2 421)
---------------------------------------------- -------------- ------------------- ---------------
Tax paid (3 580) - -
---------------------------------------------- -------------- ------------------- ---------------
Net cash from operating activities 6 689 4 895 19 438
-------------- ------------------- ---------------
Cash flows from investing activities
-------------- ------------------- ---------------
Purchase of intangible assets (786) (11 129) (16 713)
-------------- ------------------- ---------------
Business combinations - (5 295) (8 008)
-------------- ------------------- ---------------
Purchase of property, plant and
equipment (4 799) (1 101) (1 390)
-------------- ------------------- ---------------
Purchase of rights to copper tails (1 606) - -
-------------- ------------------- ---------------
Sale of property, plant and equipment 10 - 247
-------------- ------------------- ---------------
Increase in other financial assets (35) (173) -
-------------- ------------------- ---------------
Net cash used in investing activities (7 216) (17 698) (25 864)
-------------- ------------------- ---------------
Cash flows from financing activities
-------------- ------------------- ---------------
Proceeds from share issues net
of costs 43 5 902 5 696
-------------- ------------------- ---------------
Finance lease payments (150) - -
-------------- ------------------- ---------------
Decrease in other financial liabilities (1 253) (2 154) (4 168)
-------------- ------------------- ---------------
Net cash generated from financing
activities (1 360) 3 749 1 528
-------------- ------------------- ---------------
Net decrease in cash and cash equivalents (1 887) (9 054) (4 898)
-------------- ------------------- ---------------
Cash and cash equivalents at beginning
of the period 9 948 18 865 18 865
-------------- ------------------- ---------------
Effects of foreign exchange 1 706 436 (4 019)
-------------- ------------------- ---------------
Cash and cash equivalents at the
end of the period 9 767 10 247 9 948
-------------- ------------------- ---------------
(ii) The significant increase in accounts receivable is mainly
due to revenue recognised at the period end for inventories sold
and delivered, but subject to final pricing and invoicing post the
period end. These receivables are recognised as contract assets in
the Statement of Financial Position.
NOTES TO THE UNAUDITED INTERIM RESULTS
1. Basis of preparation
The Group unaudited interim results for the 6 months ended 31
December 2020 have been prepared using the accounting policies
applied by the company in its 30 June 2020 annual report which are
in accordance with International Financial Reporting Standards
(IFRS and IFRC interpretations) issued by the International
Accounting Standards Board ("IASB") as adopted for use in the EU
("IFRS, including the SAICA financial reporting guides as issued by
the Accounting Practices Committee, IAS 34 - Interim Financial
Reporting, the Listings Requirements of the JSE Limited, the AIM
rules of the London Stock Exchange and the Companies Act 2006
(UK)). This condensed consolidated interim financial report does
not include all notes of the type normally included in an annual
financial report. Accordingly, this report is to be read in
conjunction with the annual report for the year ended 30 June 2020
and any public announcements by Jubilee Metals Group PLC. All
monetary information is presented in the presentation currency of
the Company being Great British Pound. The Group's principal
accounting policies and assumptions have been applied consistently
over the current and prior comparative financial period. The
financial information for the year ended 30 June 2020 contained in
this interim report does not constitute statutory accounts as
defined by section 435 of the Companies Act 2006. A copy of the
statutory accounts for that year has been delivered to the
Registrar of Companies. The auditor's report on those accounts was
unqualified and did not contain a statement under section
498(2)-(3) of the Companies Act 2006.
2. Financial review
Earnings per share for the six months ended 31 December 2020 are
presented as follows:
Unaudited Unaudited Audited
6 months 6 months 12 months
to to to
-------------- ---------------- ---------------
31 December 31 December 30 June
-------------- ---------------- ---------------
2020 2019 2020
-------------- ---------------- ---------------
Earnings for the period GBP '000 19 135 6 660 18 320
-------------- ---------------- ---------------
Weighted average number of shares
in issue ('000) 2 112 818 1 891 445 1 955 965
-------------- ---------------- ---------------
Diluted weighted average number
of shares in issue ('000) 2 161 356 1 891 445 1 975 264
-------------- ---------------- ---------------
Earnings per share (pence) 0.91 0.35 0.94
-------------- ---------------- ---------------
Diluted earnings per share (pence) 0.89 0.35 0.93
-------------- ---------------- ---------------
Earnings per share (ZAR cents) 19.21 6.09 18.47
-------------- ---------------- ---------------
Diluted earnings per share (ZAR
cents) 18.78 6.09 18.29
-------------- ---------------- ---------------
The Group reported a net asset value of 5.41 (2019: 4.36) pence
per share (ZAR 108.2 (2019: ZAR 80.69 cents per share)) and a net
tangible asset value per share of 2.07 (2019: 1.37) pence per share
(ZAR 41.5 (2019: ZAR 25.31 cents per share)). The total shares in
issue as at 31 December 2020 were 2 113 204 million (2019: 2 017
510 million).
3. Dividends
No dividends were declared during the period under review (2019:
nil).
4. Business segments
The operations of the Group companies currently comprise of
three reporting segments being:
the beneficiation of precious metals through operating
processing plants for the recovery of metals and minerals,
currently recovering PGMs, chrome, copper and cobalt targeting base
metals including lead, zinc, vanadium from (mainly) the waste
material produced as part of the mining cycle ("Metals
beneficiation");
development of exploration assets and also including a
combination of targeted process consulting and developing, focussed
on the development and implementation of process solutions,
specifically targeting both liquid and solid waste streams from
mine processes. This includes existing pilot operations as part of
the process development cycle to provide mature solutions which
includes extractive-metallurgy, pyro-metallurgy and
hydro-metallurgy ("Exploration and development"); and
the parent company operates a head office based in the United
Kingdom, which incurs certain administration and corporate costs.
("Corporate").
The Group's operations span five countries, South Africa,
Australia, Mauritius, Zambia and the United Kingdom. There is no
difference between the accounting policies applied in the segment
reporting and those applied in the Group financial statements.
Management is currently reviewing the Group's segment reporting to
better represent the operations and geographical segments of the
Group.
Segment report for the 6 months ended 31 December 2020
Figures in pound sterling Exploration
( GBP '000 ) Metal beneficiation and development Corporate Total
Total revenues 53 438 - - 53 438
-------------------- ----------------- ---------- ----------
Cost of sales (22 492) - - (22 492)
-------------------- ----------------- ---------- ----------
Forex losses 45 - (269) (223)
-------------------- ----------------- ---------- ----------
Profit/(loss) before
taxation 25 236 (8) (789) 24 440
-------------------- ----------------- ---------- ----------
Taxation (5 181) - - (5 181)
-------------------- ----------------- ---------- ----------
Profit/(loss) after
taxation 20 056 (8) (789) 19 259
-------------------- ----------------- ---------- ----------
Interest received 151 - 14 165
-------------------- ----------------- ---------- ----------
Interest paid (1 167) - - (1 167)
-------------------- ----------------- ---------- ----------
Depreciation and amortisation (3 237) - - (3 237)
-------------------- ----------------- ---------- ----------
Total assets 112 636 38 242 2 020 152 899
-------------------- ----------------- ---------- ----------
Total liabilities (33 462) (4 596) (565) (38 623)
-------------------- ----------------- ---------- ----------
Segment report for the 6 months ended 31 December 2019
Figures in pound sterling Business Exploration
( GBP '000 ) Metal beneficiation development and mining Corporate Total
Total revenues 25 403 - - - 25 403
-------------------- ------------- ------------ ---------- ---------
Cost of sales (15 554) - - - (15 554)
-------------------- ------------- ------------ ---------- ---------
Forex losses (417) - - (181) (598)
-------------------- ------------- ------------ ---------- ---------
Profit/(loss) before
taxation 7 339 - - (776) 6 563
-------------------- ------------- ------------ ---------- ---------
Taxation - - - - -
-------------------- ------------- ------------ ---------- ---------
Profit/(loss) after
taxation 7 339 - - (776) 6 563
-------------------- ------------- ------------ ---------- ---------
Interest received 39 - - 11 50
-------------------- ------------- ------------ ---------- ---------
Interest paid (1 245) - - (79) (1 324)
-------------------- ------------- ------------ ---------- ---------
Depreciation and amortisation (2 382) - - - (2 382)
-------------------- ------------- ------------ ---------- ---------
Total assets 73 098 10 424 26 925 8 354 118 800
-------------------- ------------- ------------ ---------- ---------
Total liabilities (23 675) (3 127) (1 664) (2 290) (30 756)
-------------------- ------------- ------------ ---------- ---------
Segment report for the year ended 30 June 2020
Figures in pound sterling Business Exploration
( GBP '000 ) Metal beneficiation development and mining Corporate Total
Total revenues 54 775 - - - 54 775
-------------------- ------------------------- ------------ ---------- ---------
Cost of sales (29 683) (4) - - (29 687)
-------------------- ------------------------- ------------ ---------- ---------
Forex profits/(losses) 724 - - (65) 658
-------------------- ------------------------- ------------ ---------- ---------
Profit/(loss) before
taxation 20 107 (10) (1) (6 364) 13 733
-------------------- ------------------------- ------------ ---------- ---------
Taxation 3 542 - - 954 4 496
-------------------- ------------------------- ------------ ---------- ---------
Profit/(loss) after
taxation 23 649 (10) (1) (5 409) 18 229
-------------------- ------------------------- ------------ ---------- ---------
Interest received 101 - - 24 125
-------------------- ------------------------- ------------ ---------- ---------
Interest paid (2 246) - - (175) (2 421)
-------------------- ------------------------- ------------ ---------- ---------
Depreciation and amortisation (6 502) - - - (6 502)
-------------------- ------------------------- ------------ ---------- ---------
Total assets 90 719 3 159 33 508 3 252 130 638
-------------------- ------------------------- ------------ ---------- ---------
Total liabilities (32 402) - (3 601) (453) (36 457)
-------------------- ------------------------- ------------ ---------- ---------
5. Share Capital and warrants
The share capital of the Company is divided into an unlimited
number of ordinary shares of GBP 0.01 each.
Unaudited Unaudited Audited
6 months 6 months 12 months
---------------- ---------------- ---------------
ended 31 ended 31 ended 30
December December June
---------------- ---------------- ---------------
2020 2019 2020
---------------- ---------------- ---------------
GBP'000 GBP'000 GBP'000
---------------- ---------------- ---------------
Ordinary shares of 1 pence each 21 132 20 175 21 125
---------------- ---------------- ---------------
Share premium 93 496 91 547 93 460
---------------- ---------------- ---------------
Total issued capital 114 628 111 723 114 585
---------------- ---------------- ---------------
During the period under review the Company issued the following
new Jubilee shares:
Issue price
Number of shares (pence) Purpose
Opening balance 2 112 509 573
------------------- ----------- ------------------
07 Dec 2020 694 445 6.12 Warrants exercised
------------------- ----------- ------------------
Balance at the end of the
period 2 113 204 018
------------------- ----------- ------------------
Post the period under review the Company issued the following
new Jubilee shares:
Issue price
Number of shares (pence) Purpose
Opening balance 2 113 204 018
-------------------- -------------------------------
12 Jan 2021 19 417 476 3.38 Warrants exercised
-------------------- ----------- ------------------
13 Jan 2021 610 445 4.00 Warrants exercised
-------------------- ----------- ------------------
13 Jan 2021 1 473 055 3.38 Warrants exercised
-------------------- ----------- ------------------
Settlement of
21 Jan 2021 80 728 619 2.81 debt
-------------------- ----------- ------------------
Settlement of
21 Jan 2021 19 154 466 3.25 debt
-------------------- ----------- ------------------
03 Feb 2021 4 000 000 3.40 Warrants exercised
-------------------- ----------- ------------------
08 Feb 2021 3 000 000 6.00 Options exercised
-------------------- ----------- ------------------
18 Feb 2021 80 000 6.12 Warrants exercised
-------------------- ----------- ------------------
09 Mar 2021 200 000 6.12 Warrants exercised
-------------------- ----------- ------------------
11 Mar 2021 502 500 6.12 Warrants exercised
-------------------- ----------- ------------------
Balance at the date of this
announcement 2 242 370 579
-------------------- -------------------------------
Warrants
At 31 December 2020 the Company had the following warrants
outstanding:
Share price
Subscription at issue
Number of warrants Issue date price (pence) Expiry date date (pence)
63 800 833 2018/01/19 6.12 2023/01/19 3.55
----------- ----------------- ------------- -----------------
12 944 984 2018/12/28 3.38 2023/01/19 2.40
----------- ----------------- ------------- -----------------
7 818 750 2019/11/19 4.00 2022/11/19 4.13
----------- ----------------- ------------- -----------------
750 000 2020/06/22 3.40 2023/06/22 3.90
----------- ----------------- ------------- -----------------
85 314 567
----------- ----------------- ------------- -----------------
At 30 June 2020 the Company had the following warrants
outstanding:
Subscription Share price
price at issue
Number of warrants Issue date (pence) Expiry date date (pence)
65 277 778 2018/01/19 6.12 2023/01/19 3.55
----------- --------------- ------------- -----------------
32 362 460 2018/12/28 3.38 2023/01/19 2.40
----------- --------------- ------------- -----------------
1 473 055 2019/03/20 3.38 2021/03/20 2.45
----------- --------------- ------------- -----------------
8 429 195 2019/11/19 4.00 2022/11/19 4.13
----------- --------------- ------------- -----------------
4 750 000 2020/06/22 3.40 2023/06/22 3.90
----------- --------------- ------------- -----------------
112 292 488
----------- --------------- ------------- -----------------
At the date of releasing these results the Company had the
following warrants outstanding:
Share price
Subscription at issue
Number of warrants Issue date price (pence) Expiry date date (pence)
63 800 833 2018/01/19 6.12 2023/01/19 3.55
----------- ----------------- --------------- -----------------
12 944 984 2018/12/28 3.38 2023/01/19 2.40
----------- ----------------- --------------- -----------------
7 818 750 2019/11/19 4.00 2022/11/19 4.13
----------- ----------------- --------------- -----------------
750 000 2020/06/22 3.40 2023/06/22 3.90
----------- ----------------- --------------- -----------------
4 036 431 2021/01/21 13.00 2024/01/21 13.00
----------- ----------------- --------------- -----------------
89 350 998
----------- ----------------- --------------- -----------------
6. Going concern
The directors have adopted the going-concern basis in preparing
the interim financial statements.
7. Unaudited results
These interim results have not been reviewed or audited by the
Group's auditors.
8. Interim report
From the date of this report copies of the interim report are
available for download from the Company's website
www.jubileemetalsgroup.com
The financial information in this announcement is unaudited.
United Kingdom
25 March 2020
**S**
For further information visit www.jubileemetalsgroup.com or contact:
Jubilee Metals Group PLC
Colin Bird/Leon Coetzer
Tel +44 (0) 20 7584 2155 / Tel +27 (0) 11 465 1913
Nominated Adviser - SPARK Advisory Partners Limited
Andrew Emmott/James Keeshan
Tel: +44 (0) 20 3368 3555
Broker - Shard Capital Partners LLP
Damon Heath/Erik Woolgar
Tel +44 (0) 20 7186 9900
Joint Broker - WHIreland
Harry Ansell/Katy Mitchell
Tel: +44 (0) 20 7220 1670/+44 (0) 113 394 6618
JSE Sponsor - Sasfin Capital (a member of the Sasfin group)
Sharon Owens
Tel +27 (0) 11 809 7500
PR & IR Adviser - St Brides Partners Limited
Catherine Leftley/Juliet Earl
Tel +44 (0) 20 7236 1177
Annexure 1
Headline earnings per share ("HEPS") is calculated using the
weighted average number of shares in issue during the period under
review and is based on earnings attributable to ordinary
shareholders, after excluding those items as required by Circular
1/2019 issued by the South African Institute of Chartered
Accountants (SAICA). In compliance with paragraph 18.19 (c) of the
JSE Listings Requirements the table below represents the Group's
Headline earnings and a reconciliation of the Group's loss reported
and headline earnings used in the calculation of headline earnings
per share:
Reconciliation of headline earnings per
share Unaudited Unaudited Audited
6 months 6 months 12 months
to to to
----------- ----------------- ----------
Dec-20 Dec-19 Jun-20
----------- ----------------- ----------
GBP '000 GBP '000 GBP '000
----------- ----------------- ----------
Profit attributable to ordinary equity
holders of the parent 19 135 6 660 18 320
----------- ----------------- ----------
Adjusted for:
----------- ----------------- ----------
Gain on bargain purchase - (2 309) (6 607)
----------- ----------------- ----------
De-recognition of other financial assets
through profit or loss - - 5 022
----------- ----------------- ----------
Share of impairment loss of equity accounted
associate - - 1 964
----------- ----------------- ----------
Total tax effects of adjustments - - (1 544)
----------- ----------------- ----------
Headline earnings 19 135 4 350 17 155
----------- ----------------- ----------
Weighted average number of shares in 2 112 1 891 1 955
issue ('000) 818 445 965
----------- ----------------- ----------
Diluted weighted average number of shares 2 161 1 909 1 975
in issue ('000) 356 126 264
----------- ----------------- ----------
Headline earnings per share (pence) 0.91 0.23 0.88
----------- ----------------- ----------
Headline earnings per share (ZAR cents) 19.21 3.98 17.30
----------- ----------------- ----------
Diluted headline earnings per share (pence) 0.89 0.23 0.87
----------- ----------------- ----------
Diluted headline earnings per share (ZAR
cents) 18.78 3.98 17.13
----------- ----------------- ----------
Average conversion rate used for the
period under review GBP :ZAR 0.0471 0.0545 0.0507
----------- ----------------- ----------
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END
IR JIMLTMTJTBMB
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