17th Sep 2007 07:01
Jubilee Platinum PLC17 September 2007 Jubilee Platinum Plc ("Jubilee" or "the Company") Provisional Results for the Year Ended 30 June 2007 Highlights • Independent scoping studies on Tjate project demonstrated positiveresults for a stand-alone operation treating only the Merensky reef andjustified further drilling to bankable feasibility study. • The Company conditionally acquired up to a 48.7% direct and indirectbeneficial interest in the Tjate project with the potential for conditionallyincreasing it further to 58.5%. • Drilling commenced and three holes have been completed on theAmbodilafa project (JV with Implats). Massive, semi-massive and net-texturednickel-copper sulphide mineralization intersected in hole ALF003. • Following field exploration and re-interpretation of geophysics dataon Ambodilafa, the Company resumed drilling deeper on the initial drill holeALF001, which has now intersected sulphides. Samples have been submitted forassay. • The Company entered into a JV agreement with TransAsia MineralsLimited on its Londokomanana and Itsindro projects. • Soil sampling and ground geophysical surveys on Londokomanana projecthave identified new copper anomaly zones and drill targets in the Mavoandro(northern Londokomanana) and Antsahabe prospects. • Londokomanana's new-season drilling programme commenced in May 2007.Hole ANT009 intersected 39 metres of nickel-copper sulphide mineralization.Samples have been submitted for assay. • The Company increased its interest in its Madagascan subsidiary to100%. • The Company's shares were dual listed on the JSE Limited. Financial Review The loss for the year after taxation was £1,749,096 (2006: £738,409). The lossper share has increased from 0.83 pence in 2006 to 2.09 pence in 2007. Thecurrent year's loss has increased due to one-off listing costs (£311,643)attributable to the Company's admission to trading on the main board of JSE Ltdlast December and a share-based charge of £452,786 charged to the group Profitand Loss account in line with the requirements of IFRS2. The loss for thecurrent year also includes a charge of £220,313 relating to impairment ofintangible assets following a review of the Group's intangible asset base inaccordance with accounting policies. Exploration and evaluation expenses capitalised in the year amounted to £573,911compared to £1,125,800 in the year ended 30 June 2006. This reduction inexploration costs is mainly due to joint venture projects, which have loweredthe Company's contribution to exploration costs despite advancing explorationactivity. 5,025,577 ordinary 1 pence shares were issued during the year raising £5,185,673to fund drilling and exploration costs for the Company's flagship Tjate projectlocated in the Eastern Bushveld of South Africa, the Group's wholly ownedMadagascan exploration projects and general corporate overheads. The £1,500,0008% Convertible Loan Notes issued to City Natural Resources High Yield Trust Plcwas redeemed in June 2007 through the issue of a further 2,142,857 ordinaryshares. In October 2006, Jubilee entered into an agreement with TransAsia MineralsLimited ("TransAsia") in respect of its Londokomanana and Itsindro properties.TransAsia agreed an aggregate of US$10,000,000 - US$7,000,000 on Londokomananaand US$3,000,000 on Itsindro - to fund exploration over a three-year period fora 51% interest in these two properties. As part of its funding commitment, TransAsia subscribed for US$1,000,000 ofJubilee shares equivalent to 490,000 Ordinary 1 pence shares at £1.10 per shareand also advanced further cash of US$1,000,000 for initial Londokomanana andItsindro exploration. On 7 December 2006, Jubilee's shares were admitted for trading on the main boardof JSE Limited. This decision to dual list its shares was predicated on theprogress of Tjate and the Company's recognition that South African investorsshould be given the opportunity to invest in the Company's emerging platinumportfolio. The Company, through its wholly owned South African subsidiary Windsor PlatinumInvestments (Proprietary) Limited, entered into a US$16 million convertible loannote agreement with Mitsubishi Corporation. This agreement was precedent onWindsor purchasing further interest from Tjate shareholders, but was frustratedas the shareholders in Tjate Platinum Corporation (Pty) Ltd opted for shares inthe Company instead of cash as consideration for their interest in Tjate. Operations Review SOUTH AFRICA Tjate Project Scoping studies on the Tjate project, based on the results of the first sevenboreholes DT1 to DT7, were undertaken in June 2006 and February 2007 byindependent consulting engineers. The studies showed that the project has todate a potential resource (not yet Samrec/JORC compliant) of 25 million tonnesof Merensky Reef at a grade of 5.7 g/t 3PGE (platinum palladium rhodium) + Au(gold) and 10 million tonnes of UG2 at a grade of 6.4 g/t 3PGE+Au. The studiesdemonstrated positive results over a range of scenarios for the project as astand-alone operation treating only the shallower Merensky reef and concludedthat a programme of further exploration and pre-feasibility/bankable feasibilitystudies was justified. The Company increased the number of drilling rigs on siteto three and to date a further five holes (DT8 to DT13) with deflections havebeen or were being drilled. Hole DT11 has been planned as a deep hole (1200m) toMerensky reef. MADAGASCAR Ambodilafa Project (JV with Impala Platinum Holdings) The Company drilled three shallow holes in the southernmost sector of itsAmbodilafa property in southeastern Madagascar, to test a large VTEM geophysicalanomaly and a geochemical anomaly on the VTEM anomaly's western fringe. HoleALF003, which was drilled in the geochemical anomaly intersected severalintersections of massive, semi massive and net-textured disseminated nickelcopper sulphide mineralization from a depth of 24m to 220m. Higher-gradeintersections included 2.2m at 1.29%Ni, 0.31%Cu, and 0.31g/t 2PGE+Au and 6.5m at0.61%Ni, 0.30%Cu and 0.12g/t 2PGE+Au. Holes ALF001 and ALF002, which weredrilled in the geophysical anomaly to 200m depth (the limit with the equipmentthen available) did not intersect significant mineralization. However, follow upfieldwork in the area, including geochemical sampling and re-interpretation ofthe original VTEM and regional geophysical data provided new geologicalinformation on the area and delineated new potential nickel-copper-PGE drilltargets. On this basis and with the arrival of more equipment, the Companyresumed drilling deeper on ALF001 to 400m. Sulphide mineralization has beenintersected and samples have been submitted for analysis. Drilling commenced onhole ALF004 located on the eastern fringe of the geophysical anomaly. Londokomanana Project On the Londokomanana project, in-fill soil geochemistry was carried out on theMavoandro (northern Londokomanana) and Antsatratakona (northeast Londokomanana)prospects. Historical exploration data on the latter showed a strong airbornegeophysics E-M anomaly some 2 kilometres long and 800 metres wide. Thegeochemistry on Antsatratakona showed little or no anomalies and the E-M anomalyis believed to be associated with a strong magnetite bearing gneiss identifiedfrom concurrent mapping. Further work on Antsatratakona is not being consideredat this stage. On Mavoandro, the copper geochemistry defined an anomalous zone about 2kilometres of strike and up to 500 metres wide, strongly associated withultramafic lithology. This was followed up with ground fixed-loop-time-domaingeophysics surveys, which also covered soil-sampled areas on the Antsahabeprospects: namely Antsahabe south and Borokely (southernmost prospect inLondokomanana). The axes of E-M conductivities observed, correlated well withthe soil sampling data. The Company delineated drill targets and commenced afence-line drilling programme in May 2007 with two drilling rigs on Anstahabesouth and Mavaoandro. Three holes on Antsahabe south ANT007 to ANT009 werecompleted. ANT009 intersected 33 meters of up to 7% disseminated sulphidesbetween 30 and 63 metres depth. The samples have been submitted for assay. Afurther six holes in Antsahabe are scheduled for drilling this season. OnMavaoandro, drilling commenced in the northern section. To date three holesMAV001 to MAV003 have been completed all to 300 metres final depth (the limitwith the equipment available). MAV004 is in progress. Sulphide mineralizationhas been intersected. The samples have been submitted for assay including wholerock analysis in order to identify possible komatiitic lithology, a marker forpotential basal sulphide mineralisation. Itsindro Project In March 2007, the Company undertook a soil sampling campaign over twoprospects: Itsindro North and Itsindro South on its Itsindro property. Earlierairborne and ground magnetic geophysical surveys had identified early and latechannel E-M conductors and strong magnetic conductors over the prospects. On thebasis of the results the area has been classified as low priority Lavatrafo Project Additional soil geochemical sampling was carried out on the Lavatrafo prospect(central Lavatrafo), on Ranomena (south Lavatrafo) and Amboasary (northLavatrafo) prospects, of which the latter two are extensions to the ultramaficLavatrafo formation. Drilling was undertaken on all three prospects on targetsthat were coincident with copper soil anomalies and in the case of Ranomena,coincident also with earlier trenching results, which showed elevated nickel andPGE values. On Lavatrafo, hole LAV007 intersected 19 metres of nickel copper andPGE mineralization grading 0.53 g/t 3E (platinum palladium and gold and 0.18%nickel, including 3 metres grading 1.13g/t 3E and 0.27% Nickel and 0.19% copper. On Ranomena, hole RAN001 intersected 49m of sulphide mineralization assaying0.43g/t 3E and 0.28% nickel. Further drilling is planned for this prospect. OnAmboasary, hole AMB001 intersected two 9-metre intervals of PGE andnickel-copper sulphide mineralization at 119 and 200 metres, gradingrespectively 0.22% nickel and 0.1g/t 3E and 0.21% nickel and 0.13g/t 3E.Further drilling is planned for this prospect Belobaka Project The Company undertook a soil geochemical sampling programme on the Belobakaprospect, a large 20 kilometre by 7 kilometre wide mafic-ultramafic intrusivelocated some 150 kilometres west of the capital Antananarivo. The target iscopper-nickel-cobalt sulphide mineralization. Previous stream sediment, soil sampling and airborne geophysics by othersidentified a strongly open-ended anomalous copper, nickel and cobalt zone over a2-kilometre square area. This prospect, which was targeted previously as alateritic nickel style deposit was abandoned due to a lack of evidence for "ironpan" and pisolitic laterite development. The current programme is targetingsulphides. JUBILEE PLATINUM PLCCONSOLIDATED INCOME STATEMENTFOR THE YEAR ENDED 30 JUNE 2007 Year ended Year ended 30 June 30 June 2007 2006 Restated £ £ Administrative expenses (1,889,903) (945,190) Loss from operations (1,889,903) (945,190) Finance income 319,056 282,916Finance costs (144,955) (51,025)Share of operating loss in associate (33,294) (25,110) Loss before income tax expense (1,749,096) (738,409) Income tax expense - - Loss for the period after income tax expense (1,749,096) (738,409) Minority interests: Equity 77,622 121,769 Loss attributable to members of Jubilee Platinum plc (1,671,474) (616,640) Basic loss per share (pence) (2.09) (0.83)Diluted loss per share (pence) (2.09) (0.83) JUBILEE PLATINUM PLCCONSOLIDATED BALANCE SHEETAS AT 30 JUNE 2007 Year ended Year ended 30 June 2007 30 June 2006 Restated £ £AssetsNon-current assetsIntangible assets 5,343,942 3,969,054Property, plant and equipment 56,251 51,634Investments in associates 2,392,323 2,620,442Total non-current assets 7,792,516 6,641,130 Current assetsTrade and other receivables 7,705,311 537,349Cash and cash equivalent 7,497,619 4,668,199Total current assets 15,202,930 5,205,548 Total assets 22,995,446 11,846,678 Current liabilitiesConvertible loan notes - (1,500,000)Trade and other payables (3,341,107) (155,939)Loans and borrowings -Total current liabilities (3,341,107) (1,655,939) Total liabilities (3,341,107) (1,655,939) Net current assets 19,654,339 10,190,739 Net assets 19,654,339 10,190,739 EquityCalled up share capital 858,174 786,489Share premium account 20,163,298 11,859,073Share based payment reserve 702,453 249,667Currency translation reserve (736,486) (537,568)Profit and loss account (3,742,472) (2,070,997)Equity attributable to equity holders of the parent 17,244,967 10,286,664 Equity interests 2,409,372 (95,925)Total equity 19,654,339 10,190,739 JUBILEE PLATINUM PLCSTATEMENT OF CHANGES IN EQUITYFOR THE YEAR ENDED 30 JUNE 2007 Share Share Premium Share based Accumulated loss Total Capital payment reserve £ £ £ £ £ Balance at 1 July 2005 699,228 8,256,314 66,250 (1,687,677) 7,334,115Issue of share capital 87,261 - - - 87,261Premium on issue of share capital - 3,602,759 - - 3,602,759Share issue expenditure written - - 183,417 - 183,417offNet profit/(loss) for the year - - - (616,640) (616,640)Currency translation difference (304,248) (304,248) - - -Balance at 30 June 2006 786,489 11,859,073 249,667 (2,608,565) 10,286,664 Issue of share capital 71,685 - - - 71,685Premium on issue of share capital - 8,304,225 - - 8,304,225Share issue expenditure written - - 452,786 - 452,786offNet profit/(loss) for the year - - - (1,671,474) (1,671,474)Currency translation difference - - - (198,919) (198,919) Balance at 30 June 2007 858,174 20,163,298 702,453 (4,478,958) 17,244,967 JUBILEE PLATINUM PLCCASH FLOW STATEMENTAS AT 30 JUNE 2007 Year ended Year ended Notes 30 June 2007 30 June 2006 restated £ £ Cash flow from operations 5 (1,181,648) (867,527)Interest received 242,466 282,916Interest paid (144,955) (7,104)Net cash outflow from operating activities (1,084,137) (591,715) Cash flows utilised by investing activitiesIncrease in loans and investment (2,930,103) -Purchase of intangible fixed assets (573,911) (1,125,800)Purchase of tangible fixed assets (35,196) (13,635)Net cash outflow from investing activities (3,539,210) (1,139,435) Cash flow from financing activitiesProceeds from issue of new borrowings 2,026,755 1,500,000Issue of shares and warrants 5,423,606 264,196Net cash inflow from financing activities 7,450,361 1,764,196 Net increase/(decrease) in cash and cash equivalents 2,827,014 33,046Cash and cash equivalents at the beginning of the year 4,668,199 4,635,153Cash and cash equivalents at the end of the year 7,495,213 4,668,199 JUBILEE PLATINUM PLCNOTES TO THE GROUP PROVISIONAL RESULTS FOR THE YEAR ENDED30 JUNE 2007 1. Basis of preparation and accounting policies The financial information for the year ended 30 June 2007 has been prepared onthe historical cost basis and is in accordance with the recognition andmeasurement criteria of the International Financial Reporting Standards and itsInterpretations adopted by the International Accounting Standards Board and thedisclosure requirements of IAS34 - Interim Financial Reporting. The accountingpolicies have been applied consistently throughout the Group and are consistentwith those for the financial year ended 30 June 2006 except for compliance withIFRS. Consequently, the prior year figures have been restated and this resultedin reversing the goodwill amortisation charge of £65,755 and recognisingexpenses relating to share based payments of £183,417 for the year ended 30 June2006. The restated loss, attributable to Jubilee shareholders for the yearended 30 June 2006 was £616,640 and the adjusted Group net assets were£10,286,664. 2. Balance sheet The value of the Group's exploration and evaluation intangible assets at 30 June2007 was 24.87 pence per share (2006: 21.59 pence per share), calculated on theweighted average number of shares of 82,305,192 (2006:76,411,257) 3. Income statement The headline loss for the financial year 2007 was 2.09 pence (2006: 0.83 pence)calculated on a weighted average number of shares of 82,305,192 (2006:76,411,257). There were no dividends paid or declared 4. Segment reporting Business segments The Group's only business segment is the exploration for, and development of,Platinum Group Metals (PGMs) and associated metals. Geographical segments An analysis of loss on ordinary activities before taxation, net assets andexploration expenditure by geographical area is given below. 2007 2006 £ £Profit/(loss) on ordinary activities (excluding associates)United Kingdom (675,017) (104,958)South Africa (805,624) (407,189)Madagascar (229,564) (79,383)Mauritius (5,597) - (1,715,802) (591,530) Profit/(loss) on ordinary activities in associatesSouth Africa (33,294) (25,110) Total profit before minority interests (1,749,096) (616,640) Net assets by location (excluding associates)United Kingdom 10,195,923 2,635,755South Africa 995,430 3,525,551Madagascar 2,075,490 1,408,991Mauritius 3,995,173 - 17,262,016 7,570,297Net assets in associatesSouth Africa 2,392,323 2,620,442 2,392,323 2,620,442 Total net assets 19,654,339 10,190,739 Exploration expenditureSouth Africa - 199,424Madagascar 573,911 926,376Total exploration expenditure 573,911 1,125,800 5. Cash flow statement Reconciliation of net loss for the year to cash utilized by operations 2007 2006 £ £Loss for the year (1,889,903) (945,190)Depreciation 24,619 9,937Amounts written off exploration expenditure 220,313 234,800Increase in debtors - (356,547)Increase in creditors 10,537 6,056Share based payments 452,786 183,417Net cash outflow from continuing operating activities (1,181,648) (867,527) 6. Capital and reserves Shares issued During the year ended 30 June 2007 7,168,434 (2006: 8,726,146) ordinary shareswere issued for a cash consideration of £5,185,673 (2006: 3,690,020). Share options and warrants The Company issued the following share options: Date granted Period Exercisable Exercise price per share Number of options6 September 2006 10 years 78p 25,0007 September 2006 2 years 80p 200,0007 September 2006 2 years 100p 120,000 Translation reserve The translation reserve comprises all foreign exchange differences arising fromthe translation of the financial statements of foreign operations that do nothave a UK£ functional currency. Exchange differences arising are classified asequity and transferred to the Group's translation reserve. 7. Financial statements The provisional financial statements have not been audited. Audited financialstatements compliant with the Companies Act and International FinancialReporting Standards IFRS will be issued to shareholders in October 2007. 8. Directorate There have been no changes in the board of directors during the year ended 30June 2007. Signed on behalf of the board Malcolm Burne Colin BirdChairman Chief Executive Officer 14 September 2007 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Jubilee Metals