3rd Nov 2006 07:01
Jubilee Platinum PLC03 November 2006 3 November 2006 Jubilee Platinum Plc ("Jubilee" or "the Company") PRELIMINARY RESULTS FOR THE YEAR TO 30 JUNE 2006 Highlights: • Tjate project in South Africa consistently returns exceptional drilling results • Projects in Madagascar show potential for large Nickel/Copper/PGM deposits • Jubilee in US$5 million Joint Venture with Impala Platinum • Jubilee well funded with cash reserves of £5.7 million to meet current project demands POST YEAR END HIGHLIGHTS: • Jubilee in US$10 million Joint Venture with TransAsia Minerals Commenting on the results, Jubilee Platinum's Chief Executive Officer Colin Birdsaid; "The past year has been one of significant progress for Jubilee. Theresults from the Tjate project continue to impress and we are very pleased withthis key position within the Bushveld Complex, the most important source ofplatinum worldwide. Our joint venture partnerships will serve to furtheraccelerate our exploration and development programmes in Madagascar and confirmour belief in the prospectivity that Madagascar has to offer. We look forward tobuilding on and furthering our achievements in the coming year." For further information please contact: Colin Bird Cathy Malins / Annabel LeatherJubilee Platinum plc Parkgreen Communications LtdTel +44 (0) 20 7584 2155 Tel +44 (0)20 7493 3713 Chairman's Report Dear Shareholder The Company has had a very eventful year with significant progress made in allareas. Important Joint Venture agreements have been concluded, explorationprojects have advanced and a £1.5 million convertible note has been provided bya leading London based resource finance institution. The Company's flagship property, Tjate, has consistently yielded exceptionaldrilling results and is now progressing towards pre-feasibility study. The current exploration projects in Madagascar are at varying stages ofdevelopment but show significant potential for large Nickel/Copper/PGM deposits,mineable from surface. We are happy to have cemented our presence inMadagascar, an under-explored country which appears to be showing a propensityfor large scale bulk-metal projects. During the period under review the Company lost £498,978 (2005 - £299,855) and£1,125,800 was capitalised on exploration projects. This loss represents 0.67pper share against 0.46p in 2005. Platinum group and base metal prices have been very strong during the year andhave highlighted the need for new discoveries. Your board has noted that jointventure and corporate activity is not confined to major mining companies but hasextended to consumers and countries anxious to secure strategic stakes in futuremetal production. Jubilee continues to seek out new opportunities which will enhance its SouthAfrican position in the platinum-rich Bushveld Complex; the objective being tosecure "bankable" PGM ounces to meet rising demand. The competition isunderstandably intense but Jubilee has developed credibility over the last fouryears and is now strongly positioned to take advantage of any opportunities. Jubilee has a joint venture with Impala Platinum Holdings on its Ambodilafaproject in Madagascar where drilling has commenced. The Company recentlyannounced a significant US$10 million joint venture with TransAsia Minerals - anemerging Indonesian based resource company - on its Londokomanana and Itsindroprojects in Madagascar. Mindful of equity dilution these joint ventures havethe effect of limiting new share issues and are aimed at sharing the early riskof exploration with companies who have the financial strength to build newmines. The Company is well funded to meet its current objectives and progress itsportfolio of exploration and development projects. Finally, I would like to thank my fellow directors, management, operationalstaff and consultants for their tireless efforts in a busy but successful year. Malcolm BurneChairmanOperations Review 2005-2006 South Africa Tjate Project During the year under review, Jubilee continued to focus exploration efforts onits flagship Tjate property. On the Dsjate farm the Company drilled fourboreholes DT4, DT5, DT6 and DT7 and fourteen wedge offshoot holes with acombined total of 3,669 metres. All four borehole results showed good grades andreef thicknesses that were consistent with the previous three boreholes DT1, DT2and DT3. The Company is to start a second phase of drilling in the third quarter 2006towards delineating a resource estimate. The Dsjate farm is one of three contiguous farms in the Tjate property, whichcomprises of an area totalling 5,143 hectares. The farms are immediately downdip of Anglo American's Twickenham Mine and Impala Platinum's Marula Mine on theWinnaarshoek farm. The entire project area has an exploration target of 65million oz of 5 PGE (platinum group elements) and gold. The Company ispresently engaged in a comprehensive drilling programme on the property with theobjective of defining a mineral resource. On 12 June 2006, the Department of Minerals and Energy approved the conversionof Tjate Platinum Corporation's old order prospecting right to a new orderprospecting right under the Mineral and Petroleum Resources Development Act (No.28 of 2002). Tjate Borehole Results Weighted averages Borehole Reef Reef Depth Reef Thickness 4E Pt Pd g/t Rh g/t Au g/t Ni Cu % Pt:Pd m cm * g/t g/t % ratio DT1 Merensky 868 80 6.55 3.77 2.08 0.18 0.52 0.29 0.16 1.8 UG2 1248 93 6.01 2.80 2.51 0.60 0.10 n.a. n.a. 1.1 DT2 Merensky 722 81 3.57 2.11 1.11 0.11 0.23 0.20 0.11 1.9 UG2 1103 95 8.01 3.42 3.75 0.70 0.14 n.a. n.a. 0.9 DT3 Merensky 900 82 5.24 3.10 1.61 0.14 0.39 0.29 0.17 1.9 UG2 1290 82 7.49 3.55 3.08 0.70 0.16 n.a. n.a. 1.2 DT4 Merensky 685 80 6.53 3.66 2.22 0.17 0.48 0.27 0.15 1.6 UG2 1077 85 7.60 3.10 3.66 0.72 0.12 n.a. n.a. 0.8 DT5 Merensky 772 90 3.86 2.98 0.49 016 0.23 0.07 0.05 1.6 DT6 Merensky 812 80 12.82 7.32 4.17 0.31 1.02 0.46 0.27 1.7 DT7 Merensky 723 82 7.08 3.99 2.31 0.19 0.59 0.21 0.12 1.7 Total Merensky 82 6.47 3.83 1.97 0.18 0.49 0.25 0.15 1.9 Total UG2 89 7.21 3.2 3.2 0.68 0.13 n.a. n.a. 1.0 *Apparent thickness 4E (Pt Pd Rh Au) n.a. not applicable Madagascar Londokomanana Project This project is located in the Londokomanana region in central northernMadagascar, some 165 kilometres north of the capital Antananarivo. The Companyholds exploration licences for two contiguous properties: 1) Londokomanana (the northern part) under Exploration Licence PR (Permis Recherche) no. 5103 and; 2) Lavatrafo (the southern part) under Exploration Licence PR no. 10175. Londokomanana Property This property includes the ultrabasic (pyroxenite/dunite) formations: Antsahabe(centre of the property), Mavoandro (to the north of the property) andAntsatratakona, some 3 kilometres to the east of Mavoandro. During the year under review, the Company drilled borehole ANT1 (results tabledbelow) in Antsahabe, in an area of coincident geochemical and geophysicalanomalies. The borehole intersected near surface an aggregated 48-metre thicknear-vertical mineralised structure grading 0.62% nickel and 0.13% copper. Borehole ANT1 Results Intersection From To Thickness Nickel Copper metres metres metres* % % metres Total 17.2 44.5 27.3 0.64 0.13 including 20.9 41.4 20.5 0.78 0.15 including 21.5 29.5 5.0 1.05 0.22 including 30.5 35.6 5.1 1.16 0.10 including 33.6 34.6 1.0 2.09 0.14Total 54.8 71.8 17.0 0.60 0.12 including 60.1 68.1 8.0 0.89 0.16 including 60.1 61.8 1.7 2.07 0.08 Total 77.2 80.9 3.7 0.58 0.12 including 80.4 80.9 0.5 0.14 0.32 Aggregate Total 17.2 80.9 48.0 0.62 0.13 *Apparent thickness Parallel with this drilling, the Company commissioned a dipole-dipole ("DPDP")geophysics survey (useful in identifying structures at depth) over the areaconcurrent with geochemical soil sampling. The area covered, included lateralrelative high and low chargeability areas delineated from an earlier gradientarray geophysics survey. The survey identified relative high chargeability response zones at depth, somecoincident with geochemical anomalies and some not. The lateral relative lowchargeability areas were associated with the ultrabasic formations. The lateralhigh chargeability responses could not be associated with the basic lithologiesand were interpreted both laterally and at depth to be associated with possiblydisseminated sulphides. The Company drilled a number of boreholes to test this interpretation. Nosignificant sulphides were intersected and the interpretation proved to beincorrect. The applicability of DPDP geophysics as a tool for exploration inthis geological environment was therefore considered inadequate. The Company subsequently focused on utilising geochemical soil sampling todelineate mineralised corridors (see Lavatrafo below) in Antsahabe and theMavoandro- Antsatratakona formations further to the north. Antsatratakonafeatures significant airborne geophysical electromagnetic ("E-M") anomaliesidentified in the 1960s. Since the year end, the Company entered into a joint venture Project Agreementwith TransAsia Minerals Limited ("TransAsia"), a subsidiary private company ofIndonesian based TransAsia Resources PT Group. TransAsia has acquired a 51%interest in the Londokomanana and Itsindro properties for a commitment to fundUS$10 million on exploration over three years. TransAsia is an aggressivemulti-commodity group with ambitions for growth in nickel production. Lavatrafo Property Exploration in the year under review included archival research, mapping, soilsampling, geophysics and drilling. Archival research and mapping uncovered several significant new extensions tothe ultrabasic formations on Lavatrafo including two key new targets Amboasaryand Ranomena. Lavatrafo Formation The Company carried out a geophysical survey, utilising induced polarisation ("IP") gradient array and DPDP methods, similar to that reported above forLondokomanana. The survey identified areas and zones of similar relative highand low chargeabilities both laterally and at depth. Again the lateral relativehigh chargeability areas were interpreted to be associated with possiblydisseminated / massive sulphides and hence an alternative model for drilling. The Company initially drilled two boreholes LAV1 and LAV2A (results tabledbelow) within a relative low chargeability area associated with ultrabasiclithology and coincident with geochemical anomalies. The drilling results showednear-surface wide Ni-Cu-PGM mineralisation with indicated viable economic metalvalues for open pit mining. The Company then drill tested the alternative high chargeability DPDP model. Nosulphide mineralisation was intersected in the high chargeability zones. Thisconfirmed the inadequacy of the DPDP tool for exploration and demonstratedconclusively that soil geochemistry presents the optimum exploration approach inthis geological environment. Nevertheless, the gradient array data generated from the survey complemented theCompany's conventional ground mapping, since outcrop is relatively sparse in thearea. The Company subsequently reverted to geochemical soil sampling toestablish 'mineralised corridors' (trends along strike of anomalous copper andnickel values) in all the ultrabasic formations. Borehole LAV7, located some 1.5 kilometres south of and along strike from LAV1,was the first borehole targeted at a 4-kilometre long mineralised corridorestablished in the Lavatrafo formation. The borehole intersected 19m (apparent)width of PGE (platinum group elements), Ni and Cu mineralisation 35m down thehole (25m vertical depth). This result (see table below) supported themineralised corridor model. More boreholes are targeted for drilling in this corridor in the coming season. Borehole Results: Borehole LAV1 Intersection From To Thickness* Nickel Copper 3E** metres metres metres % % g/t Total 37.7 108.4 70.7 0.23 0.11 1.05 including 72.8 108.4 35.7 0.31 0.19 0.99 including 89.4 108.4 19.1 0.34 0.20 1.05 including 75.3 83.5 8.3 0.32 0.23 1.15 including 102.3 108.4 6.1 0.47 0.24 1.02 * Apparent thickness ** 3E = platinum palladium gold Borehole LAV2A Intersection From To Thickness* Nickel Copper 3E** metres metres metres % % g/t Total 72.4 164.1 91.7 0.26 0.14 0.66 including 82.4 162.1 79.7 0.29 0.16 0.73 including 115.0 158.8 43.8 0.40 0.25 0.80 including 136.1 156.2 20.1 0.52 0.33 0.92 * Apparent thickness ** 3E = platinum palladium gold Borehole LAV7 Intersection From To Thickness* Nickel Copper 3E** metres metres metres % % g/t Total 35.6 54.6 19.0 0.18 0.21 0.53 Including 35.6 43.2 7.6 0.16 0.15 0.82 Including 41.2 44.2 3.0 0.27 0.19 1.13 Including 45.2 46.0 0.8 0.21 1.03 0.71 Including 42.2 43.2 1.0 0.33 0.30 1.61 Including 52.5 53.5 1.0 0.20 1.05 0.17 * Apparent thickness ** 3E = platinum palladium gold Ranomena Formation The Ranomena formation is located in the southern section of Lavatrafo, some 8kilometres south-south-west of the current Lavatrafo formation working area. TheCompany reopened, deepened and resampled four trenches (C1 to C4 - resultstabled below), which had been mapped previously as part of a "platinoide"mission carried out in the 1990s. High PGM and nickel mineralisation valueswere obtained across trench lengths of up to 60 metres, particularly in C3 whichincluded 8 metres @ 0.92g/t 2E (Pt,Pd) and 0.36% Ni and two 1-metre intervals @1.38 g/t 2E and 1.68 g/t 2E. The data suggested an immediate drilling target, which is currently beingdrilled. Trench results: Trench sampled 2E* g/t Pt Pd Nickel Copper metres g/t g/t % % C1 Total 26 0.4 0.23 0.17 0.19 0.06 Including 2 0.58 0.30 0.28 0.20 0.12 Including 2 0.61 0.40 0.21 0.18 0.06 Including 2 0.51 0.33 0.18 0.44 0.18 C2Total 60 0.27 0.15 0.12 0.18 0.02 Including 3 0.90 0.31 0.57 0.78 0.18 C3Total 16 0.64 0.32 0.31 0.27 0.08 including 8 0.92 0.47 0.43 0.36 0.12 including 1 1.38 0.86 0.52 0.44 0.18 including 1 1.68 0.91 0.74 0.11 0.08 C4Total 30 0.14 0.07 0.08 0.34 0.1 including 2 0.30 0.13 0.13 0.53 0.13 *2E platinum and palladium Amboasary Formation In Amboasary, geophysical E-M anomalies were mapped in the 1960s and thereappeared to have been little follow-up exploration on these anomalies. Thismarks Amboasary as a highly prospective target for further exploration. Aprogramme of soil sampling has commenced and will be followed up withtime-domain electromagnetics ("TDEM") survey. Ambodilafa Project The Ambodilafa Licence is located some 200 kilometres south-south-east ofAntananarivo and covers some 194 square kilometres. The area includes the56-square kilometre Vohipaha basic and ultrabasic gabbroic intrusive system, atthe southern end of which lies the eight square kilometre Ambodilafa project.Regional reconnaissance drilling in the area in 1969 included an intersection of93 metres of disseminated sulphides, containing pyrrhotite, pentlandite (nickelore mineral) and chalcopyrite (copper ore mineral). The intersection included a1.5 metre intercept assaying 2.2% Ni and 0.35% Cu. Later stream sedimentsampling in 1990 defined several drainage catchments in the area, which showedanomalous platinum and palladium values. This earlier drilling, which followedgeochemical anomalies, was carried out generally to the west of a significantgeophysical E-M anomaly. A helicopter-borne Versatile Time-Domain Electromagnetics ("VTEM") survey wascarried out over this area. The survey identified a strong anomaly consisting ofa flat lying circular feature some 80 metres below surface with an estimatedthickness of up to 40 metres. Following this highly promising result, theCompany entered into an option agreement with Impala Platinum Holdings ("Implats"), whereby Implats was granted the sole and exclusive right and option toacquire an undivided 51% interest in the Ambodilafa property by funding a totalof US$5,000,000 for exploration. The Company successfully secured an environmental permit to carry out phase oneexploration and drilling commenced on 18 September 2006. Lanjanina Project Lanjanina is located in south-central Madagascar some 180 kilometres south ofAntananarivo. It represents some 7 kilometres of strike length and lies at thesouthern end of the 30-kilometre long basic-ultrabasic Itsindro Intrusive.Following a review of a previous IP geophysical survey and soil sampling data,the Company continued with further infill soil sampling and IP and DPDP surveysover those areas, which showed significant copper and nickel geochemicalanomalies. The DPDP surveys indicated several sub-vertical high chargeabilityunits which were generally coincident with these geochemical anomalies. Theseunits were selected for preliminary scout drilling of three boreholes. Theboreholes intersected semi-massive and massive sulphides, predominantlypyrrhotite, but the nickel and copper values overall were generallydisappointing, although some individual samples returned encouragingly highvalues of up to 0.9% Ni and 0.6% Cu. Lanjanina remains highly prospective. Sierra Leone York Platinum Project Jubilee is in joint venture (80% interest and manager) with AIM-listed GoldenProspect plc (20% interest) on this 105.3 square kilometre York Platinum projectin Sierra Leone. The project is located around the village of York some 37kilometres south of the capital Freetown. No field exploration was carried out on the project during the year. The Companyinstead focused on a review of the previous year's exploration data in order todevelop an effective programme for the next phase of exploration, which isanticipated to include geophysics followed up by preliminary drilling. The licence covers the central part of the Freetown Layered Gabbro Complex. Thisis a layered sequence of gabbroic and troctolitic rocks with some of thecyclical units having anomalous platinum, palladium, chromium, vanadium, nickeland copper mineralisation. Previous exploration by the Company and others havetraced this mineralisation, with anomalous geochemical sampling platinum valuesof up to 0.84g/t over a strike length of 8.5 kilometres. This exploration alsodiscovered a new parallel reef-like horizon two kilometres to the east over astrike length of 1.2 kilometres and which remains open ended. A new trenchyielded up to 0.44 g/t platinum in highly weathered, laterised rock, while soilsshowed anomalous values of up to 0.35 g/t platinum. Other Projects Houtenbek (97JT) and Mapochsgronde (500JS) The Houtenbek and Mapochsgronde properties are located in the southern sector ofthe eastern Limb of the Bushveld Complex. The Company, through its subsidiaryDullstroom Plats (Pty) Ltd applied for new order prospecting rights, having heldold order rights on both properties. The DME did not grant the rights and theCompany is appealing against this decision. Grasvally (293KR) The Company entered into a 70% earn-in agreement with MSA Projects on theirGrasvally property subject to the property being granted a converted new orderprospecting right. This conversion right was granted on 22 August 2006. The 663-hectare Grasvally property, which represents the last currently knownand untested block of Platreef ground in the Bushveld, is situated just south ofMokopane (formerly Pietersburg), squarely between the Platinum Group Metals' WarSprings deposit, Caledonia's Rooipoort deposit and the Pan Palladium Volspruitdeposit. Approximately 5 kilometres of potential Platreef outcrop have been identifiedthrough a geochemical soil-sampling programme undertaken by MSA during 2004. Acomprehensive diamond-drilling programme was designed to drill test theseanomalies and form the basis of initial resource estimates. The initial phaseof diamond drilling commenced on 17 September 2006. The Platreef is a wide platinum-bearing reef occurring along approximately 100kilometres of outcrop on the northern limb of the Bushveld Complex. Thisopen-pittable reef zone has been the focus of significant and well publicisedexploration during the past five years, with several major and junior miningcompanies having embarked on extensive and successful drilling programmes in thezone. One of the major benefits of this wide reef zone is that, in addition tosignificant contained platinum and palladium, there is also substantialassociated nickel and copper credits, making the Platreef an exciting, low-cost,polymetallic prospect. Bokfontein (448QT) and Elandsdrift (467JQ) The Company carried out a geologic assessment with some limited percussiondrilling of the Bokfontein and Elandsdrift farms near Brits in the westernBushveld to test a postulated occurrence of a split UG2 type reef on theproperties, which lie up dip of the known UG2 outcrop in the area. OnBokfontein, a low grade chromitite reef, which the Company believes strongly tobe UG1 reef, was intersected at shallow depth. On Elandsdrift no reef wasintersected. The postulated split UG2 theory was not proven and further work isnot contemplated on these small acreage properties. Buffelsvlei (170JS)/Zaaiplaats (150JS) New order prospecting rights were granted for the Buffelsvlei/Zaaiplaats farms,which are located near Groblersdal in the eastern sector of the BushveldComplex. The property is contiguous to and east of the Blaauwbank ("Blue Ridge") farm on which Ridge Mining is developing its Blue Ridge Cu-Ni-PGM project.The project area is bisected by the Steelpoort fault. The Company commissioned a geologic appraisal of the prospectivity of thesefarms for similar PGM occurrences and formations to those which underpin theBlue Ridge property. The appraisal concluded that the risk rating for PGMexploration of the Buffelsvlei - Zaaiplaats project area is medium to high risk. Test drilling is scheduled for next year. Salliesloot (718KS)/Zwartkop (720KS) New order prospecting rights were granted in respect of the propertiesSalliesloot/Zwartkop and in which Jubilee is in an unincorporated joint venture80% with the prospecting right holder Ex Terra (Pty) Ltd 20%. The Salliesloot/Zwartkop farms, near Marble Hall in the eastern sector of theBushveld Complex are located on the northern limit of a "tongue" of TransvaalSupergroup ("TS") rocks, which have been brought (domed) to the surface. The TSclassically underlies the Bushveld complex and the anomalous occurrence of theserocks in the area has led to a model postulating that the Critical Zone of theBushveld Complex may have been brought within accessible mining depths in thearea by the above doming event. Rocks with petrographic similarities to thosefrom Main Zone, which classically lie above the Critical Zone, have beenrecorded and mapped historically as being present in the area. The Company drilled a lithological scout borehole to 476 metres and intersectedgenerally fine-grained hornfels (thermally metamorphosed sediments of the TS)but not Main Zone lithology. The Company is reviewing this model and historical map data, which suggest thatthe hole may have been up dip of two plotted norite outcrops and that a secondhole, if deemed appropriate, should be located to the north of the drilledborehole. However, since drilling to 800 metres or more may be necessary tosupport or otherwise this geologic model, the Company is focussing in the shortterm on its other more prospective and advanced projects. ON BEHALF OF THE BOARD C BirdChief Executive Officer2 November 2006 JUBILEE PLATINUM PLC CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 30 June 2006 Year ended Year ended 30 June 30 June 2006 2005 Note £ £ Administrative expenses (827,528) (558,563) Operating loss (827,528) (558,563) Interest receivable and similar income 282,916 230,401 Interest payable (51,025) - Share of operating loss in associate 10 (25,110) (5,903) Loss on ordinary activities before taxation 1 (620,747) (334,065) Tax on loss on ordinary activities 4 - - Loss on ordinary activities after taxation (620,747) (334,065)Minority interests: Equity 121,769 34,210 Loss on ordinary activities attributable to members of Jubilee (498,978) (299,855)Platinum Plc Basic loss per share 6 (0.67p) (0.46p) Fully diluted loss per share 6 (0.65p) (0.45p) All of the Group's activities are classed as continuing. The accompanying accounting policies and notes form an integral part of thesefinancial statements. STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES FOR THE YEAR ENDED 30 June 2006 Year ended Year ended 30 June 2006 30 June 2005 £ £ Loss for the financial year (498,978) (299,855)Translation differences on foreign currency net investments (304,248) (233,320) Total recognised gains and losses for the year (803,226) (533,175) The accompanying accounting policies and notes form an integral part of thesefinancial statements. CONSOLIDATED BALANCE SHEET AS AT 30 JUNE 2006 Year ended Year ended 30 June 2006 30 June 2005 Note £ £Fixed assetsIntangible assets 7 3,903,299 909,204Tangible assets 8 51,634 24,513Investment in associate 10 2,620,442 2,900,438 6,575,375 3,834,155 Current assetsDebtors 11 537,349 195,122Cash at bank and in hand 4,668,199 4,635,153 5,205,548 4,830,275Creditors: amounts falling due within one year 12 (1,655,939) (1,374,244) Net current assets 3,549,609 3,456,031 Total assets less current liabilities 10,124,984 7,290,186 Minority interestsEquity interests 95,925 43,929 10,220,909 7,334,115 Capital and reservesCalled up share capital 13 786,489 699,228Share premium account 14 11,859,073 8,256,314Profit and loss account 15 (2,424,653) (1,621,427) Shareholders' funds 16 10,220,909 7,334,115 The financial statements were approved by the Board of Directors on 2 November2006. C BirdChief Executive Officer The accompanying accounting policies and notes form an integral part of thesefinancial statements. COMPANY BALANCE SHEET AS AT 30 JUNE 2006 Year ended Year ended 30 June 2006 30 June 2005 Note £ £Fixed assetsIntangible assets 7 30,925 30,925Tangible assets 8 1,649 2,889Investments 9 3,426,212 388 3,458,786 34,202 Current assetsDebtors 11 4,907,362 4,049,453Cash at bank and in hand 4,266,303 3,681,894 9,173,665 7,731,347Creditors: amounts falling due within one year 12 (1,621,297) (86,136) Net current assets 7,552,368 7,645,211 Total assets less current liabilities 11,011,154 7,679,413 Capital and reservesCalled up share capital 13 786,489 699,228Share premium account 14 11,859,073 8,256,314Profit and loss account 15 (1,634,408) (1,276,129) Shareholders' funds 16 11,011,154 7,679,413 The financial statements were approved by the Board of Directors on 2 November2006. C BirdChief Executive Officer CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2006 Year ended Year ended 30 June 30 June 2006 2005 Note £ £ Net cash outflow from operating activities 17 (1,147,523) (869,591) Returns on investments and servicing of financeInterest received 275,812 230,401Foreign exchange difference 279,996 9,925 555,808 240,326 Capital expenditure and financial investmentPurchase of intangible fixed assets 7 (1,125,800) (596,807)Purchase of tangible fixed assets 8 (13,635) (24,669) (1,139,435) (621,476) Acquisitions and disposalsInvestment in associate - (2,906,977) - (2,906,977) Movement in liquid resourcesFunds placed on deposit (4,537,519) (4,079,481)Funds removed from deposit 4,079,481 3,050,000 (458,038) (1,029,481) FinancingIncrease in loans 19 1,500,000 1,224,233Issue of shares and warrants 13 264,196 4,766,295Expenses of share issues 14 - (310,218) 1,764,196 5,680,310 Increase in cash 18 (424,992) 493,111 The accompanying accounting policies and notes form an integral part of thesefinancial statements NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2006 1 LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION The loss on ordinary activities is stated after: 2006 2005 £ £ Auditors' remuneration - statutory audit services 10,500 10,977 - tax compliance fees 1,500 1,500Payments under operating leases - land and buildings 12,500 24,500Depreciation 9,937 7,670Foreign exchange gain 2,636 - 2 SEGMENTAL ANALYSIS The group has one business segment, that of mineral exploration. An analysis ofloss on ordinary activities before taxation and net assets by geographical areais given below: 2006 2005 £ £Profit/(loss) on ordinary activities (adjusted for minority interests)United Kingdom (110,042) (19,127)South Africa (321,461) (235,982)Madagascar (67,475) (44,746) (498,978) (299,855) Net assetsUnited Kingdom 11,011,154 7,679,413South Africa (684,562) (303,073)Madagascar (105,683) (42,225) 10,220,909 7,334,115 3 DIRECTORS AND EMPLOYEES Staff costs during the year were as follows: 2006 2005 £ £ Wages and salaries 227,804 225,457Social security costs 23,830 21,962 251,634 247,419 Remuneration in respect of Directors was as follows: 2006 2005 £ £ Emoluments 139,833 134,118 Emoluments disclosed above include the following amounts paid to the highestpaid director: 2006 2005 £ £ Emoluments 92,980 56,901 The average monthly number of employees during the year was seven (2005: 7)including the four Directors, none of whom (2005: None) participate in companypension schemes. 4 TAX ON LOSS ON ORDINARY ACTIVITIES 2006 2005 £ £ (620,747) (334,065)Loss for the year (186,224) (100,220) Loss for the year multiplied by standard rate of UK corporation tax 30%Effect of:UK expenses not deductible for tax purposes 2,538 4,630Increase in UK tax losses - 71,104South African losses at 30% 153,505 24,486Other tax adjustments 30,181 - Tax charge - - Unprovided deferred tax asset:UK tax losses carried forward multiplied by standard rate of UK corporation tax 30%, recoverable only when the Company has generated taxable profits 239,576 239,576 5 PROFIT FOR THE FINANCIAL YEAR The Company has taken advantage of Section 230 of the Companies Act 1985 and hasnot included its own profit and loss account in these financial statements. TheCompany loss for the year was £44,287 (2005: £19,125). 6 LOSS PER SHARE The calculation of the basic loss per share is based on the loss for thefinancial year divided by the weighted average number of shares being 74,355,295(2005:64,687,342) in issue during the year. The fully diluted loss per share is based on the loss for the financial yeardivided by the weighted average number of shares and potential shares being76,411,257 (2005: 66,463,756) in issue during the year. 2006 2005 £ £ Ordinary shares 74,355,295 64,687,342Effect of options issued at fair value 2,055,962 1,776,414 76,411,257 66,463,756 7 INTANGIBLE FIXED ASSETS Goodwill on ExplorationThe Group consolidation expenditure Total £ £ £ CostAt 1 July 2005 - 909,204 909,204 Foreign Exchange Adjustments - (80,473) (80,473)Additions 2,318,911 1,125,800 3,444,711Amortisation (65,755) (304,388) (370,143) At 30 June 2006 2,253,156 1,650,143 3,903,299 The Company Exploration expenditure £CostAt 1 July 2005 30,925Additions - At 30 June 2006 30,925 8 TANGIBLE FIXED ASSETS The Group Office equipment £ CostAt 1 July 2005 35,866Foreign exchange adjustments 23,423Additions 13,635 At 30 June 2006 72,924 DepreciationAt 1 July 2005 11,353Charge for the year 9,937 At 30 June 2006 21,290 Net book amount at 30 June 2006 51,634 Net book amount at 30 June 2005 24,513 The Company Office equipment £ CostAt 1 July 2005 8,139Additions 577 At 30 June 2006 8,716 DepreciationAt 1 July 2005 5,249Charge for the year 1,818 At 30 June 2006 7,067 Net book amount at 30 June 2006 1,649 Net book amount at 30 June 2005 2,889 9 FIXED ASSET INVESTMENTS The Company Shares in Shares in Group Group undertakings undertakings 2006 2005 £ £CostAt 1 July 2005 388 273Additions 3,425,824 141Disposals - (26) At 30 June 2006 3,426,212 388 The Company issued 7,447,443 Ordinary 1p shares at 46p per share on 5 December2005 to New Africa Mining Fund as consideration for acquiring the 12.52%minority interest in Windsor Platinum Investments (Pty) Ltd ("Windsor").Windsor is now a 100% owned subsidiary of the Company. At 30 June 2006 the Company held more than 20% of the following subsidiaryundertakings: Name of undertaking Country of Principal activity Proportion of equity capital incorporation held By the Company By the Group Dullstroom Plats (Pty) Ltd South Africa Mineral exploration 100%Maude Mining and Exploration (Pty) Ltd South Africa Mineral exploration - 65%Mineral Resources of Madagascar Sarl Madagascar Mineral exploration 85% -Windsor Platinum Investments (Pty) Ltd South Africa Mineral exploration 100% -Emanuel Mining and Exploration (Pty) Ltd South Africa Mineral exploration 90% -Mokopane Mining and Exploration (Pty) Ltd South Africa Mineral exploration 90% - 10 INVESTMENT IN ASSOCIATE Tjate Platinum Corporation (Proprietary) Limited 2006 £ Share of turnover - Share of operating loss for the year (25,110) Share of assetsShare of current assets 2,290Share of non-current assets 2,742,886 2,745,176 Share of liabilitiesShare of current liabilities 352Share of non-current liabilities 124,382 124,734 Share of net assets 2,620,442 Jubilee Platinum plc owns 25% of the issued ordinary share capital of TjatePlatinum Corporation (Proprietary) Limited which is engaged in the explorationand exploitation of natural resources. The associate has an unsecured loan from Windsor Platinum Investments (Pty)Limited, a subsidiary within the Jubilee group, of £497,529 with no fixedrepayment terms, bearing an interest rate of 2% above the prime lending rate. 11 DEBTORS Group Company 2006 2005 2006 2005 £ £ £ £ Amounts due from Group undertakings - - 4,888,092 4,010,748Other debtors 532,871 176,324 14,792 21,656Prepayments and accrued income 4,478 18,798 4,478 17,049 537,349 195,122 4,907,362 4,049,453 The loans to group members are unsecured and bear interest at base rate +2%. 12 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Group Company 2006 2005 2006 2005 £ £ £ £ Other loan - 1,274,325 - -Convertible loan notes 1,500,000 - 1,500,000 -Social security and other taxes - - - 5,297Other creditors 63,966 24,839 30,188 7,981Accruals and deferred income 91,973 75,080 91,109 72,858 1,655,939 1,374,244 1,621,297 86,136 On 27 January 2006, the Company issued £1,500,000 8% Convertible Loan Notes toCity Natural Resources High Yield Trust Plc to assist with the funding ofworking capital costs of its exploration and development programmes in SouthAfrica and Madagascar. The loan notes are convertible at the option of theholder at any time prior to the maturity date, after 12 months from the issuedate at a price of £0.70 (conversion price) into approximately 2,142,857Ordinary 1p shares in the Company. The loan notes will mature on 26 January2010. After the initial 12 month period, if the 20-day average closing price ofthe Company's shares at any time attains £0.85 or more, the Company may call theConvertible Loan Notes for conversion into the Company's Ordinary shares at theconversion price. 13 SHARE CAPITAL Group and Company 2006 2005 £ £Authorised500,000,000 ordinary shares of 1p each 5,000,000 5,000,000 Allotted, called up and fully paid 786,489 699,22878,648,974 (2005: 69,922,828) ordinary shares of 1p each The Company allotted 8,726,146 Ordinary 1p shares with an aggregate nominalvalue of £87,261 during the year as follows: Price Number of shares AggregateDate of issue per share consideration £- 12 December 2005 46p 7,447,443 3,425,824- 7 March 2006 16p 470,000 75,200- 7 March 2006 20p 30,000 6,000- 31 March 2006 20p 646,600 129,320- 31 March 2006 16p 4,144 663- 31 March 2006 33p 48,485 16,000- 31 March 2006 45p 74,474 33,513- 31 March 2006 70p 5,000 3,500 8,726,146 3,690,020 The Company has granted options to subscribe for Ordinary 1p shares as follows: Date granted Period exercisable Exercise price Number of per share options (pence) 24 July 2002 24 July 2004 to 24 July 2012 16 1,770,00024 October 2003 24 October 2005 to 24 October 2013 20 175,00024 October 2003 24 October 2005 to 24 October 2013 28 100,0009 February 2004 9 February 2004 to 9 February 2007 31 650,0002 August 2004 2 August 2004 to 1 August 2009 20 646,60020 December 2004 20 December 2006 to 20 December 2014 28 1,100,00020 July 2005 20 July 2007 to 20 July 2015 38 110,0001 March 2006 1 March 2006 to 1 March 2011 50 100,00014 June 2006 14 June 2008 to 14 June 2016 75 15,00020 April 2006 20 April 2008 to 20 April 2016 95 115,00030 June 2006 30 June 2008 to 30 June 2016 85 1,200,000 1,278,703 options were exercised during the year. The highest and lowest price of the Company's shares during the year was 99.33pand 32.75p respectively. The share price at the year end was 69p. 14 SHARE PREMIUM ACCOUNT Group and Company 2006 2005 £ £At 1 July 2005 8,256,314 4,007,864Premium on allotments in the year 3,602,759 4,558,668Expenses of share issues - (310,218) At 30 June 2006 11,859,073 8,256,314 15 PROFIT AND LOSS ACCOUNT Group Company £ £ At 1 July 2005 (1,621,427) (1,276,129)Profit/(loss) for the year (498,978) (44,288)Translation differences on foreign currency net investments (304,248) (313,991) At 30 June 2006 (2,424,653) (1,634,408) 16 RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS Group Company 2006 2005 2006 2005 £ £ £ £ Profit/(loss) for the financial year (498,978) (299,855) (44,287) (252,445) Foreign exchange difference (304,248) (233,320) (313,991) - Issue of shares (net of expenses) 3,690,020 4,456,078 3,690,020 4,456,078 Net increase in shareholders' funds 2,886,794 3,922,903 3,331,742 4,203,633Shareholders' funds at 1 July 2005 7,334,115 3,411,212 7,679,412 3,475,780 Shareholders' funds at 30 June 2006 10,220,909 7,334,115 11,011,154 7,679,413 17 NET CASH OUTFLOW FROM OPERATING ACTIVITIES Group 2006 2005 £ £ Operating loss (827,528) (558,563)Depreciation 9,937 7,670Amortisation of goodwill 65,755 -Amounts written off exploration expenditure 234,800 -Exchange movement (304,248) (233,320)Increase in debtors (356,547) (140,164)Increase in creditors 30,308 54,786 Net cash outflow from continuing operating activities (1,147,523) (869,591) 18 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS Group 2006 2005 £ £ Increase in cash in the year (424,992) 493,111Increase in liquid resources 458,038 1,029,481Increase in loans (225,675) (1,224,233) Increase in net funds (192,629) 298,359Net funds at 1 July 2005 3,360,828 3,062,469 Net funds at 30 June 2006 3,168,199 3,360,828 19 ANALYSIS OF NET FUNDS Group 2006 Cash Movement 2005 £ £ £ Cash at bank 4,668,199 33,046 4,635,153Other loans (1,500,000) (225,675) (1,274,325) Net funds 3,168,199 (192,629) 3,360,828 20 FINANCIAL INSTRUMENTS The Group uses financial instruments, other than derivatives, comprisingborrowings, cash, liquid resources and various items such as sundry debtors andcreditors that arise directly from its operations. The main purpose of thesefinancial instruments is to raise finance for the Group's operations. The main risks arising from the Group's financial instruments are liquidity riskand currency risk. The Directors review and agree policies for managing theserisks and these are summarised below. Short-term debtors and creditors have been excluded from all the followingdisclosures. Liquidity risk The Group seeks to manage financial risk, to ensure sufficient liquidity isavailable to meet foreseeable needs and to invest cash assets safely andprofitably. This is achieved by placing surplus funds on deposit. At thebalance sheet date the Group had £100,000 on seven-day deposit at an interestrate of 4.29% and £4,100,000 on monthly deposit at an interest rate of 4.45%. Currency risk The functional currencies of the companies in the group are Sterling, SouthAfrican Rand, and Madagascan Ariary. The Group does not hedge against theeffects of movement in exchange rates. These risks are monitored by the board ona regular basis. Borrowing facilities and interest rate risk The Group finances its operations through the issue of equity share capital.There is no significant borrowing and therefore no exposure to interest ratefluctuations. Fair values The fair values of the Group's financial instruments are considered equal to thebook value. 21 CAPITAL COMMITMENTS Neither the Group nor the Company had any capital commitments at 30 June 2006 or30 June 2005. 22 FINANCIAL COMMITMENTS The Company had the following commitments under non-cancellable operating leasesas at 30 June 2006: Land and buildings 2006 2005 £ £ Within 1 year 12,000 18,250 23 CONTINGENT LIABILITIES There were no contingent liabilities at 30 June 2006 or 30 June 2005. 24 TRANSACTIONS WITH DIRECTORS No Director had, during or at the end of the year, a material interest in anycontract which was significant in relation to the Group's business. 25 CONTROL The directors consider the Company to have no ultimate controlling party. 26 POST BALANCE SHEET EVENTS (1) The Company has granted options to subscribe for Ordinary 1p shares asfollows: Date granted Period exercisable Exercise price Number of per share options (pence) 6 September 2006 6 September 2006 to 6 September 2014 78p 25,00011 September 2006 11 September 2006 to 11 September 2009 80p 200,00011 September 2006 11 September 2006 to 11 September 2009 100p 120,000 (2) On 15 September 2006, the Company announced that it has received theappropriate regulatory approvals to embark on the first phase of explorationdrilling on its prospective nickel-copper-PGE Ambodilafa project in Madagascar. (3) On 4 October 2006, Jubilee entered into a Project Agreement with TransAsiaMinerals Limited ("TransAsia") with regards to its Londokomanana and theItsindro property. TransAsia has agreed an aggregate expenditure of US$10,000,000 - US$7,000,000 onLondokomanana and US$3,000,000 on Itsindro - on exploration over a three-yearperiod to acquire an undivided 51% interest in the above properties. As part of its funding commitment Trans-Asia subscribed for US$1,000,000 worthof Jubilee shares equivalent to 490,000 Ordinary 1p shares at £1.10 per shareand also advanced further cash of US$1,000,000 for Londokomanana and Itsindro. -------------------------- This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Jubilee Metals