13th Mar 2008 07:00
Jubilee Platinum PLC13 March 2008 13 March 2008 AIM: JLPJSE: JBL JUBILEE PLATINUM PLC ("Jubilee" or "the Company") Interim Results for the six months ended 31 December 2007 Highlights • Tjate Platinum Project proceeded towards independent bankable feasibility study alongside unprecedented rise in Platinum Group Metal (PGM) prices • The Company completed a capital raising of £11M in November 2007 to fund feasibility study on Tjate Project • Madagascar projects progressed positively with the discovery of primary platinum and moved to Phase two exploration on the Ambodilafa Project Colin Bird, Chief Executive, commented: "This has been a productive and positiveperiod for the Company, in which we completed a successful fundraising andintensified drilling at Tjate, progressing towards the completion of a bankablefeasibility study. During the period, we were also able to report encouragingdrilling results from our exploration projects in Madagascar, thereinunderlining our expectations for these projects. We look forward to building onthis progress throughout 2008 and to the continued support of our valuedshareholders as we do so." For further information please contact: Colin BirdJubilee Platinum plcTel +44 (0) 20 7584 2155 Jan Bosch / Paul BrettInvestec Bank (UK) LimitedTel + 44 (0) 20 7597 5000 Louise Goodeve / Justine HowarthParkgreen Communications LtdTel +44 (0) 20 7851 7480 Chairman's Statement During the period under review the Company achieved good progress in all itsareas of operation. Tjate Platinum Project Drilling at the Tjate Platinum project on the Eastern Bushveld of South Africa,returned grades generally higher than the regional average in both the Merenskyand UG2 reefs. The Company carried out a scoping study in association with international miningconsultants Snowden Mining Industry Consultants to determine the project'spotential viability. The project has not yet defined a SAMREC compliant MineralResource Estimate, thus the financial model used in the study does not yetcomply to the principles of SAMVAL. The current phase of drilling will culminatein a SAMREC compliant Mineral Resource Estimate. The study indicated a NetPresent Value ("NPV") of US$829 million at a 5% discount rate. The assumptionsused were conservative and little optimisation was applied. The studydemonstrated strong potential returns for the project and the results weredeemed robust by the management team. The study was for a proposed undergroundmine designed to extract ore from approximately 15 % of the license area. Using metal prices prevalent on 28 February 2008 and keeping all otherassumptions constant, the indicative NPV of the project increases to more thanUS$2.5billion. This clearly demonstrates the positive potential impact ofcurrent metal prices to the project financials. The Company awaits approval from the Department of Minerals and Energy and TheSouth African Reserve Bank for transactions, which will increase the Company'sdirect and indirect interest in Tjate to 63%. Following the successful scoping study, the Company elected to proceed tobankable feasibility study. Consequently a private placing was completed inNovember 2007 raising some £11 million through the issue of 13 million ordinaryshares. The South African shareholding base increased from approximately 14% to23% in line with the Company's aim to improve the balance of shareholdersbetween the two listings on AIM and JSE Limited. The Company accelerated drilling at Tjate, increasing the number of drill rigson the site from 3 to 6 and an agreement was reached with Mineral CorporationConsultancy (Pty) Ltd in which they will assist the Company in carrying out abest-practice feasibility study. Madagascar Operations In Madagascar, all our projects advanced favourably during the period, towardsthe common objective of large-scale open-pittable mining projects. Ambodilafa reported a PGM intersection of 3.99 g/t 4E (platinum, palladium,rhodium and gold) over 0.89 metres on its eastern PGM anomaly target and goodbase metal grades (0.45% nickel (Ni) and 0.16% copper (Cu)) on the western basemetal target. Londokomanana returned positive drilling results from its various locations andthe newly tested Mavoandro area showed grades of 0.48% Ni and 0.56g/t 3E(platinum, palladium and gold). The aggressive exploration programme for 2008 is well funded and the intent nowis to identify areas for closer spaced drilling in order to advance the projectsalong the value curve. Our results to date support the view that the areas wehave under licence have the potential to progress to large-scale surface miningventures. Financial Review The interim accounts for the six months to 31 December 2007 show an operatingloss of £759k compared to an operational loss of £556k for the six months to 31December 2006. The loss per share for the period under review is 0.64p against0.58p for the interim period ending 31 December 2006. The platinum industry has undergone major changes during the period underreview. The platinum price has broken through the US$2,100 per oz level causednot least by power shortages in South Africa. Additionally, several producersreported production disruption for a variety of other reasons whilst metaldemand continued to rise; all of the aforementioned exerting pressure on theprice. Our feasibility study on Tjate will consider own power generation as analternative to ESKOM power option, but the Company does not anticipate thecurrent power shortages to remain a threat to projects coming to production inthe medium term. Jubilee is a broad based explorer with a developing platinum mine project(Tjate) being evaluated in positive times for the platinum industry. Similarly,Jubilee's early-stage projects in Madagascar, have the potential to fit therequirement - i.e. wide open-pittable and easily processed deposits - sought bythe major base metal producers. The Board and Management intend to continue developing this portfolio of assetsand unlock shareholder value, which the Company strongly believes exists. Malcolm BurneChairman13 March 2008 Consolidated Income Statement Six months ended Year ended 31 Dec 2007 31 Dec 2006 30 Jun 2007 Unaudited Unaudited £000' Audited £000' £000' Continuing operationOther income 18 75 0Administration expenses (777) (631) (1,968)Loss from operations (759) (556) (1,968) Finance income 179 157 348Finance cost 0 (60) (145)Share of operating loss in associate (19) (15) (33)Loss before income tax expense (599) (474) (1,798)Income tax expense 0 0 0Loss for the period after income tax expense from continuing (599) (474) (1,798)operations Minority interestEquity 21 15 101 Loss attributable to members of Jubilee Platinum Plc (578) (459) (1,697) Number of shares in issue 101,217,408 79,138,974 85,817,408Weighted average number of shares in issue 90,378,278 78,884,602 79,839,600Diluted weighted average number of shares in issue 93,023,496 81,148,888 82,305,193Basic loss per share (pence) (0.64) (0.58) (2.13)Diluted loss per share (pence) (0.64) (0.58) (2.13)Headline loss per share (pence) (0.64) (0.58) (2.13) Consolidated Balance Sheet 31 Dec 2007 31 Dec 2006 30 Jun 2007 Unaudited £000' Unaudited £000' Audited £000'AssetsNon-current assetsIntangible assets 5,792 4,389 5,344Property, plant and equipment 80 47 56Investment in associates 2,473 2,487 2,392Other debtors 3,044 0 1,999Total non-current assets 11,389 6,923 9,791 Current assetsTrade and other receivables 4,618 712 3,711Cash and cash equivalent 13,565 7,269 7,495Other debtors 1,377 0 1,999Total current assets 19,560 7,981 13,205 Total assets 30,949 14,904 22,996 Current liabilitiesTrade and other payables (196) (1,132) (3,339)Loans and borrowings 0 (3,519) 0Total current liabilities (196) (4,651) (3,339) Total liabilities (196) (4,651) (3,339) Net current assets 19,364 3,330 9,866 Net assets 30,753 10,253 19,657 EquityCalled up share capital 1,012 791 858Share premium account 30,994 12,341 18,343Share based payment reserve 852 473 703Currency translation reserve (732) (566) (819)Other reserves 1,038 0 1,761Retained earnings (4,324) (2,775) (3,768)Equity attributable to equity holders of the parent 28,840 10,264 17,078Equity interest of minorities 1,913 (11) 2,579 Total equity 30,753 10,253 19,657 Consolidated Statement of Changes in Equity Share Share Share based Other Accumulated Total Capital Premium payment reserves loss reserve £000' £000' £000' £000' £000' £000'Balance at 1 July 2006 786 11,859 250 0 (2,608) 10,287Issue of share capital 5 0 0 0 0 5Premium on issue of share capital 0 482 0 0 0 482Share-based payment charge 0 0 223 0 0 223Net loss for the period 0 0 0 0 (459) (459)Currency translation difference 0 0 0 0 (274) (274)Balance at 31 December 2006 791 12,341 473 0 (3,341) 10,264 Issue of share capital 67 0 0 0 0 67Premium on issue of share capital 0 6,137 0 0 0 6,137Commission on issue of shares 0 (135) 0 0 0 (135)Share-based payment charge 0 0 230 0 0 230Other reserves 0 0 0 1,761 0 1,761Net loss for the year 0 0 0 0 (1,238) (1,238)Currency translation difference 0 0 0 0 (8) (8)Balance at 30 June 2007 858 18,343 703 1,761 (4,587) 17,078 Issue of share capital 154 0 0 0 0 154Premium on issue of share capital 0 13,368 0 0 0 13,368Commission on issue of shares 0 (717) 0 0 0 (717)Share-based payment charge 0 0 149 0 0 149Other reserves adjustment 0 0 0 (723) 22 (701)Net loss for the year 0 0 0 0 (578) (578)Currency translation difference 0 0 0 0 87 87Balance at 31 December 2007 1,012 30,994 852 1,038 (5,056) 28,840 Consolidated Cash Flow Statement Six months ended Year ended 31 Dec 2007 31 Dec 2006 30 Jun 2007 Unaudited £000' Unaudited £000' Audited £000'Cash flows from operating activitiesLoss for the year (759) (556) (1,968)Depreciation 3 1 25Amounts written off exploration expenditure 35 - 220Other income - (75) -Decrease in creditors (139) (391) (6)Share based payments 149 211 453Interest received 179 157 271Interest paid - (60) (145)Net cash outflow from operating activities (532) (713) (1,150) Cash flows utilised by investing activitiesIncrease in loans and investments (3,502) - (2,864)Repayment of funds relating to investment aborted (191) - -Purchase of intangible fixed assets (457) (355) (574)Purchase of tangible fixed assets (27) 4 (35)Net cash outflow from investing activities (4,177) (351) (3,473) Cash flows from financing activitiesProceeds from issue of new borrowings - 3,126 2,026Repayment of borrowings (2,026) - -Issue of shares and warrants 12,805 539 5,424Net cash inflow from financing activities 10,779 3,665 7,450 Net increase in cash and cash equivalents 6,070 2,601 2,827Cash and cash equivalents at the beginning of the period/year 7,495 4,668 4,668Cash and cash equivalents at the end of the period/year 13,565 7,269 7,495 Notes 1. The interim financial information for the six months ended 31 December2007 has been prepared in accordance with the recognition, measurement andpresentation and disclosure requirements of IAS34 Interim Financial Reporting.The accounting policies have been applied consistently through the Group and areconsistent with those for the year ended 30 June 2007. The Financial Statementswere approved by the board on 12 March 2008. 2. Segmental Analysis Business segments The Group's only business segment is the exploration and development of PlatinumGroup 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. Six months ended Year ended 31 Dec 2007 31 Dec 2006 30 Jun 2007 £000' £000' £000'Loss on ordinary activities (excluding associates)United Kingdom (506) (279) (682)South Africa (11) (161) (805)Madagascar 2 (19) (272)Mauritius (65) - (6) (580) (459) (1,765) Loss on ordinary activities in associatesSouth Africa (19) (15) (33) Total loss before minority interests (599) (474) (1,798) Net assets by location (excluding associates)United Kingdom 21,489 4,879 10,196South Africa 1,390 1,110 996Madagascar 2,645 1,788 2,076Mauritius 2,756 - 3,997 28,280 7,777 17,265 Net assets in associatesSouth Africa 2,473 2,487 2,392 Total net assets 30,753 10,264 19,657 Exploration expenditureMadagascar 490 420 5,794Total exploration expenditure 490 420 5,794 3. The Group recognised total expenses of £149,114 (2006: £210,895) relatedto share-based payment transactions during the six months ended 31 December2007. 4. The Group reviewed the impairment position of its property holdings anddecided to impair fully the Itsindro exploration assets held in its 49% ownedsubsidiary in Mauritius, Itsindro (Mauritius) Ltd. The total impairment chargeamounted to £34,767. 5.TransAsia Minerals Ltd ("TransAsia") elected not to continue with theirinvestment in Itsindro Mauritius Ltd. Consequently, funds advanced to date byTransAsia that were not expended on the project totalling US$381,124 have beenreturned to TransAsia and the debtor of US$2,500,000 receivable by ItsindroMauritius Ltd from TransAsia has been cancelled. The balance of £21,317outstanding in other reserves relating to the Itsindro project has beentransferred to the profit and loss reserve in the group accounts. The balanceof £1,038,326 currently being carried forward in other reserves relates to theother investment made by TransAsia in Antsahabe Mauritius Ltd as detailed innote 11 of the Financial Statements to 30 June 2007. 6. Loss per share Six months ended Year ended 31 Dec 2007 31 Dec 2006 30 Jun 2007 Loss for the financial period £577,591 £459,216 £1,697,363Weighted average number of shares in issue 90,378,278 78,884,602 79,839,600Basic loss per share (pence) (0.64) (0.58) (2.13) 7. No dividend was declared during the period ended 31 December 2007(December 2006: Nil). 8. The Group issued 15,400,000 shares during the period under review,raising £12,805,272 net of costs of £717,056. Date issued Number of shares Price per share (pence)28 September 2007 (exercise of options) 200,000 28.0028 September 2007 2,000,000 81.6912 November 2007 13,000,000 98.0019 November 2007 200,000 89.00 9. Copies of interim report are available to the public free of charge fromthe Company at 4th Floor, 2 Cromwell Place, London, SW7 2JE, during normaloffice hours for 30 days from the date of this report. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Jubilee Metals