25th Oct 2022 08:39
(Alliance News) - Jubilee Metals Group PLC on Tuesday reported that its annual profit declined steeply as costs ballooned following a huge capital expansion programme.
The London-based metal processing company posted a 40% drop in pretax profit to GBP26.5 million for the financial year that ended June 30 from GBP43.0 million in the prior year.
Revenue increased by 5.4% to GBP140.0 million from GBP132.8 million after completing its investment programme.
The company said its "transformative year" had been primarily facilitated by a GBP58 million capital expansion project through which it acquired and refurbished processing facilities in South Africa's platinum group metals and chrome-rich Bushveld Complex, and the copper-rich Southern extent of Zambia.
For the full year, earnings before interest, taxes, depreciation and amortisation were 25% lower at GBP36.8 million from GBP49.3 million as costs shot up.
Cost of sales surged by 53% to GBP94.7 million from GBP61.7 million.
Earnings per share fell by 60% to 0.73 pence from 1.81 pence. No dividend was declared again.
Total platinum group metals sold, including third party joint venture, declined by 17% to 41,586 ounces from 50,162 ounces. But copper sold soared by 88% to 2,604 tonnes from 1,387 tonnes.
"The year to June 2022 was a transformative year in Jubilee's journey. The team has delivered a significantly expanded and further diversified operational footprint. We overcame a number of challenges to execute a highly complex capital expansion programme and established a solid foundation in our pursuit of becoming a global leader in processing and retreating historical mine waste and perceived waste, whilst growing responsibly," Chief Executive Leon Coetzer said.
Looking ahead, the group said the new enlarged Nyoni PGM and chrome operations in South Africa have set the platform to deliver 44,000 PGM ounces and 1.2 million tonnes of chrome concentrate per annum.
It said it remains positive on the fundamentals of copper that is key to the electrification story going forward.
Jubilee shares were down 4.6% to 11.74 pence each in London on Tuesday morning, and fell 2.0% to ZAR2.50 each in Johannesburg.
By Artwell Dlamini; [email protected]
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