REG - Jubilee Metals Group - Audited Results for the year ended 30 June 2022
25/10/2022 07:00
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RNS Number : 9467D Jubilee Metals Group PLC 25 October 2022
Jubilee Metals Group PLC
Registration number (4459850)
AltX share code: JBL
AIM share code: JLP
ISIN: GB0031852162
("Jubilee" or "the Company" or "the Group")
Dissemination of a Regulatory Announcement that contains inside information
according to UK Market Abuse Regulations. Not for release, publication or
distribution in whole or in part in, into or from any jurisdiction where to do
so would constitute a violation of the relevant laws or regulations of such
jurisdiction.
Audited Results for the year ended 30 June 2022
Notice of Annual General Meeting
Inaugural Integrated Annual Report
Jubilee Metals Group PLC, a diversified leader in metals processing with
operations in Africa (AIM: JLP/Altx: JBL), is pleased to announce its audited
results for the year ended 30 June 2022 ("FY2022"). Jubilee is also
publishing, today, its inaugural Integrated Annual Report. The Company's
evolution over the past 18 months has been primarily facilitated by a £58
million (US$71 million) capital expansion project through which it has
successfully funded the acquisition and refurbishment of processing facilities
in South Africa's PGM and chrome-rich Bushveld Complex and the copper-rich
Southern extent of Zambia. It has also been aided by the notable expansion of
the Group's client base and the acquisition of new feedstock sources.
This positive trajectory is a foretaste of what is to come to rapidly expand
our operational footprint in Zambia and seize further growth opportunities in
South Africa while holding the potential to replicate this success across
multiple jurisdictions. As Jubilee intends to continue targeting metals that
are linked to a low-carbon future, particularly renewable energy production
and battery storage, our position and value to the global supply chain will
become increasingly entrenched. The successful implementation of the capital
programme has reshaped the Company by further diversifying its earnings across
metals and jurisdictions and has laid the platform for enhanced growth in the
coming financial year.
Key Achievements for FY2022
· Jubilee successfully completed its capitalisation and expansion
programme and delivered on its targeted production for PGM (41 586 ounces),
chrome (1 222 452 tonnes) and copper (2 604 tonnes) and maintained its
zero-fatality rating with an LTIFR of 1.50 in South Africa and 2.90 in Zambia
· In South Africa, construction and ramp-up of the 45% expanded Inyoni
operation was completed in March 2022, allowing Inyoni to accept multiple
types of feed sources with an annualised capacity of 44 000 PGM ounces and a
combined 1.2 million tonnes of by-product chrome concentrate (up 85%)
· In Zambia, the fully integrated Southern Copper Refining Strategy was
delivered with the completion of construction of the new Roan copper
concentrator and commissioning and ramp-up commencing in July 2022 reaching
nameplate throughput rates during September 2022
· The combined investment has resulted in an increase in the tangible
net asset value per share of 40% to 4.84 pence for FY2022
· Revenue increased by 5.4% to £140 million (US$186 million), despite
the completion of the investment program during the period under review. The
early implementation of the new chrome circuit resulted in increased chrome
by-product credits (up 101%) contributing to a lower US$ cost per PGM ounce
(down 10%)
· Robust balance sheet after fully settling long-term debt of £5.3
million
· Positive net cash position with current assets covering total
liabilities by 131%
· EBITDA of £37 million (US$45 million) 25% lower, despite completion
of the extensive capital programme alongside production
· Cash from operating activities up 11% showing strong cash flows from
operations
Ollie Oliveira, Incoming Chairman commented: "It is an exciting time to join
such a unique company at the forefront of extracting metal from waste and
perceived waste. The very nature of the Group's business model means we are in
a unique position to clean up historic tailings, and therefore economically
benefit all stakeholders. Jubilee has become a global leader in waste and
tailings processing.
"The Group has built a very strong track record in South Africa and has
started rapidly expanding in both South Africa and now Zambia. This has indeed
been a transformative year for Jubilee and a strong growth platform has been
created, with exciting projects in both countries for us to pursue.
"Beyond delivering on the medium-term plan of executing the Northern Copper
Refining Strategy in Zambia and continuing to expand our operational
footprint, we have also focused our attention on addressing improved
governance at the board level and the strengthening of risk management along
with all the other controls that need to be present in a company that has
grown as fast as Jubilee has over the past few years."
Leon Coetzer, CEO, commented: "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.
"At the core of the Jubilee story, something I am most proud of is that the
solution we offer allows us to not only clean up environmental liabilities
such as tailings deposits but in parallel, treat third-party mine feed that
ordinarily would be headed to a waste dump.
"I am pleased that we finished the year strongly, generating increased revenue
(5.4% higher than the previous year) mostly attributable to the nearly
doubling of the chrome operations as a forerunner to the expanded PGM
operations at Inyoni, and stronger copper production in Zambia. We have seen
positive operational earnings of £45 million (US$60 million) for the year.
The 10% drop in unit cash cost to produce a PGM ounce is very significant and
is a direct result of the increased contribution of chrome as a by-product
increasing by 262% compared to FY2021.
"Importantly, we were able to eliminate £5.3m of historical debt during the
year, leaving a robust balance sheet and the financial capacity to pursue
further opportunities as we look to expand our copper operations in Zambia.
"In South Africa, we delivered on our strategy to maximise the processing of
historical tailings through our own operations. The Inyoni processing facility
refurbishment benefited from the scale of operations as best reflected in our
second half of FY2022 with earnings per PGM ounce increasing by 20% to
US$1 316 from the first half of FY2022. Despite almost completely
restructuring Inyoni, production of 41 456 PGM ounces was achieved in FY2022.
"Post year end a significant milestone was achieved in Zambia with our Roan
concentrator reaching nameplate capacity, following the successful
commissioning and ramp-up of the operations. Considering the operating context
which was marred by COVID-19 and supply chain disruptions, this was a
remarkable achievement.
"The fully integrated Southern Copper Refining Strategy is a significant step
for Jubilee as it diversifies and expands our footprint across commodities and
jurisdictions. As significant as our achievements in Zambia have already been,
we see the Southern Copper Refining Strategy as a mere demonstration of the
potential for a much greater footprint in the country in the years ahead.
"To each of Jubilee's employees, I say: We have been through a busy year and
your tireless efforts and long hours have not gone unnoticed. Both in South
Africa and Zambia, you have shown that "The Jubilee Way" is not just a set of
words, but something that you have all lived by over the past twelve months,
and this has yielded momentous results.
"The future holds tremendous potential growth for our Company as it benefits
from the foundation laid during the FY2022 period. I look forward to updating
shareholders on Jubilee's developments."
GROUP KEY PERFORMANCE INDICATORS
% change 12 months to 12 months to 12 months to 12 months to % change
30 Jun 2021 FY2021 30 Jun 2022 FY2022 Unit GROUP KEY UNITS OF PRODUCTION Unit 30 Jun 2022 FY2022 30 Jun 2021 FY2021
PGM ounces sold
(1%) 35 642 35 318 Oz - Inyoni Oz 35 318 35 642 (1%)
(57%) 14 521 6 268 Oz - Third party JV Oz 6 268 14 521 (57%)
(17%) 50 162 41 586 Oz Total PGM ounces sold Oz 41 586 50 162 (17%)
88% 1 387 2 604 Tonne Copper tonnes sold Tonne 2 604 1 387 88%
UNIT REVENUE
(28%) 2 248 1 615 $/oz Revenue per PGM ounce £/oz 1 215 1 670 (28%)
(6%) 8 657 9 210 $/t Revenue per copper tonne £/t 6 929 6 429 (8%)
UNIT COSTS
(10%) 456 408 $/oz Net cost per PGM ounce (after by-product credits chrome) £/oz 305 339 (10%)
(6%) 5 076 5 386 $/t Net cost per copper tonne (after by-product credits cobalt) £/t 3 929 3 769 (4%)
UNIT EARNINGS
(33%) 1 792 1 207 $/oz Net earnings per PGM ounce £/oz 910 1 331 (32%)
7% 3 582 3 824 $/t Net earnings per copper tonne £/t 2 882 2 660 8%
GROUP KEY FINANCIAL INDICATORS
35% 27 954 034 37 643 497 US$ Capital spend £ 30 993 020 20 205 735 53%
10% 37 534 433 41 276 419 US$ Cashflow from operating activities £ 31 005 195 27 872 695 11%
4% 178 894 480 186 387 702 US$ Revenue £ 140 006 986 132 845 252 5%
(26%) 66 401 146 48 955 819 US$ EBITDA £ 36 773 653 49 308 827 (25%)
23% 4.79 5.90 US cent Tangible net asset value per ordinary share (pence) pence 4.86 3.47 40%
COMBINED FINANCIAL AND OPERATIONAL HIGHLIGHTS
Period under review
· Inyoni refurbishment completed on time and on budget from a single
feed facility to a multi-feed facility with a 45% increase in annual capacity
to 44 000 ounces
· Project Roan reached nameplate production during September 2022 to
maintain its design throughput rate of 110 tonnes per hour needed to produce
the targeted copper concentrate for refining at the Sable Refinery
· 40% increase in tangible net asset value per share to 4.84 pence
for FY2022
· Achieved stated targeted PGM production of 41 456 ounces (FY2021:
50 162 ounces), chrome 1 222 452 tonnes (FY2021: 727 264 tonnes) and
copper production of 2 604 tonnes (FY2021: 1 387 tonnes)
· PGM unit cost of production reduced by 10% driven by increased PGM
operational footprint and increased contribution of chrome by-product credits
· Group revenue for the year increased by 5.4% to £140 million
(US$186 million) (FY2021: £133 million
(US$179million)) mostly attributable to the increased PGM ounces produced at
Inyoni, higher chrome production and increased copper production from Zambia
· Strong cash flows from operations with cash from operating
activities up 11%
· Attributable operational earnings of £45 million (US$60 million)
(FY2021: £71 million (US$85 million)) with unit cash cost to produce a PGM
ounce reducing by 10% and the contribution of by-product credits increasing by
262% compared to the FY2021
· Equity increased by 52% to £208 million maintaining a strong
equity ratio of 72%
· Low gearing ratio of 3.6% compared to 7.7% for the comparative
period
· Robust balance sheet after elimination of £5.3m of historical
debt
· Positive net cash position with current assets covering total
liabilities by 131%
· EBITDA £37 million (US$45 million) (FY2021: £52 million (US$70
million))
Post the period under review
· Southern Copper Refining Strategy continues to deliver with
Project Roan reaching nameplate capacity following the successful
commissioning and ramp-up of the operations
· Cobalt circuit brought on-line following Roan's ramp-up
completion expecting first cobalt production by end October 2022
Prospects for FY2023
South Africa
· FY2023 offers strong potential for growth in earnings as it
benefits from the full exposure of our enlarged South African operations
· The new enlarged PGM and chrome operations have set the platform
to deliver 44 000 PGM ounces and 1.2 million tonnes of chrome concentrate per
annum from Jubilee's own capacity. The PGM production benefits from the
increased efficiencies of this newly enlarged facility, which is significantly
subsidised by the increased chrome production as highlighted by the results
for the H2 six-month period
· Management continues to progress discussions to secure a further
PGM processing footprint in the Eastern Limb of the Bushveld (north-eastern
region of South Africa's chrome and PGM mining region). We have already
secured significant tailings resources with further expansion opportunities in
the area. Jubilee is reviewing the option to either secure a decommissioned
PGM facility that will be repurposed by Jubilee, or to construct a new
facility in the region
· The Company confirms its guidance of 44 000 PGM ounces from its
own production for FY2023
· The softening of PGM prices has been buffered by supply
constraints with both palladium and rhodium maintaining elevated levels on a
historical level. We remain bullish on the PGM basket price with demand
expected to increase during 2023 driven by recovering car sales from pent-up
sales demand
· Given our flexibility at the newly built Inyoni, coupled with our
multiple sources of feedstock, we do have the ability to react quickly and
prioritise feed of material that we know has a relatively higher content of a
certain PGM that is perhaps experiencing elevated pricing levels at a certain
time
Zambia
· In Zambia, the Southern Copper Refining Strategy has adjusted its
copper target for the first half of FY 2022 to 3 000 tonnes owing to
persistent interruptions in the supply of water and electricity due to aging
infrastructure which impacts Roan's ability to sustain its throughput. As a
counter measure, the Company has secured an independent water supply license
which enables the Company to implement a dedicated water supply infrastructure
· In addition to this, we look to complete the testing and
commissioning of the cobalt circuit on the back of the completed ramp-up of
Project Roan offering the potential for significant earnings contribution
· And as significant as our achievements in Zambia have already
been, we see the Southern Copper Refining Strategy as a mere demonstration of
a much larger footprint in the country in the years ahead, given the vast
amount of potential feedstock, our expertise to extract the metals within
them, and the brownfield processing capacity that lies idle across the country
· Copper had a very strong year, helping us achieve an average
price of US$9 295 per tonne in the period, compared with an average market
price of a little over US$8 000 in the prior 12 months. The price has softened
into the new year, we remain positive on the fundamentals of a metal that is
key to the electrification story going forward
Audit Opinion
The auditor's report on the annual financial statements of the Group was
unqualified and did not contain any statements under section 498(2) or (3) of
the Companies Act 2006.
Notice of Annual General Meeting and availability of the Group's Annual
Financial Statements
The Company also hereby gives notice of its 2022 Annual General Meeting
(http://www.jubileeplatinum.com/investors-and-media/announcements/2014/download/jubilee-notice-of-agm_2014.pdf)
("AGM"), which will be held on Wednesday 16 November 2022 at 11:00 am UK time
at the offices of Fladgate LLP, 16 Great Queen Street, London, WC2B 5DG, to
transact the business as stated in the notice of AGM. The Group's Annual
(http://www.jubileeplatinum.com/investors-and-media/announcements/2014/download/Jubilee_ar2014.pdf)
Report for the year ended 30 June 2022, along with the Notice of AGM, have
been posted to the website, www.jubileemetalsgroup.com
(http://www.jubileemetalsgroup.com) .
Salient Dates:
Shareholders on the register who are entitled to receive the notice of AGM
(SA)
14 October 2022
Notice of AGM posted to shareholders 25 October 2022
Last date to trade in order to be eligible to participate in and vote at the
AGM (SA)
9 November 2022
Record Date for the purposes of determining which shareholders are entitled to
participate in and vote at the AGM (UK)
14 November 2022
Record date for purpose of determining which shareholders are entitled to
participate and vote at the AGM (SA)
14 November 2022
Latest time and date for receipt of CREST Proxy Instruction and other
uncertificated instructions (UK)
11:00 am (UK time) 14 November 2022
Latest time and date for receipt of dematerialised holding instruction and
other uncertified instructions 13:00 pm (SA time) 14 November 2022
(SA)
Annual General Meeting 11:00 a.m. (UK time) 16 November 2022
Results of the Annual General Meeting released on RNS and SENS 16 November 2022
Integrated Annual Report
The Integrated Annual Report for the year ended 30 June 2022 is also available
on the Company's website today at www.jubileemetalsgroup.com. Physical copies
of the Annual Report will be posted to shareholders who have elected to
receive them.
25 October 2022
For further information visit www.jubileemetalsgroup.com
(http://www.jubileemetalsgroup.com/) or contact:
Jubilee Metals Group PLC
Leon Coetzer
Tel: +27 (0) 11 465 1913
PR & IR Adviser - Tavistock
Jos Simson/ Gareth Tredway/ Adam Baynes
Tel: +44 (0) 207 920 3150
Nominated Adviser - SPARK Advisory Partners Limited
Andrew Emmott/ James Keeshan
Tel: +44 (0) 20 3368 3555
Joint Broker - Berenberg
Matthew Armitt/ Jennifer Lee/ Detlir Elezi
Tel +44 (0) 20 3207 7800
Joint Broker - WHIreland
Harry Ansell/ Katy Mitchell
Tel: +44 (0) 20 7220 1670/+44 (0) 113 394 6618
JSE Sponsor - Questco Corporate Advisory Proprietary Limited
Sharon Owens
Tel: +27 (11) 011 9212
GROUP ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
Group statements of financial position at 30 June 2022
Group
Figures in Pound
Sterling
2022 2021
Assets
Non-current assets
Property, plant and equipment 69 875 918 33 011 518
Intangible assets 78 466 341 58 831 075
Investments in associates - 426 505
Other financial assets 15 283 501 7 234 002
Inventories 12 506 751 -
Deferred tax 4 345 508 9 463 653
180 478 019 108 966 753
Current assets
Other financial assets 701 808 544 195
Inventories 27 736 150 17 765 937
Tax assets 990 746 466 176
Trade and other receivables 48 820 613 38 126 369
Contract assets 18 875 946 9 154 250
Cash and cash equivalents 16 017 944 19 643 047
113 143 207 85 699 974
Total assets 293 621 226 194 666 727
Equity and liabilities
Equity attributable to equity holders of parent
Share capital and share premium 155 538 672 120 013 187
Reserves 23 503 904 6 612 905
Accumulated profit 24 803 165 6 753 964
203 845 741 133 380 056
Non-controlling interest 3 710 249 3 162 527
207 555 990 136 542 583
Liabilities
Non-current liabilities
Other financial liabilities 2 803 434 2 803 434
Lease liabilities 359 665 164 088
Deferred tax liability 18 221 132 14 997 333
Provisions 929 398 720 759
22 313 629 18 685 614
Current liabilities
Other financial liabilities 1 035 5 337 310
Trade and other payables 52 632 003 29 338 988
Revolving credit facility 8 471 028 3 839 225
Current tax liabilities 2 647 541 923 007
63 751 607 39 438 531
Total liabilities 86 065 236 58 124 144
Total equity and liabilities 293 621 226 194 666 727
Group statements of comprehensive income for the year ended 30 June 2022
Group
Figures in Pound
Sterling
2022 2021
Revenue 140 006 986 132 845 252
Cost of sales (94 669 908) (61 733 675)
Gross profit 45 337 078 71 111 577
Operating expenses (19 693 753) (25 728 382)
Operating profit 25 643 325 45 383 195
Investment revenue 1 400 599 500 173
Fair value adjustments 913 929 (1 161 418)
Finance costs (1 445 307) (1 673 787)
Share of loss from associate (6 505) (24 093)
Profit before taxation 26 506 041 43 024 070
Taxation (8 133 615) (2 792 867)
Profit for the year 18 372 426 40 231 203
Profit for the year attributable to:
Owners of the parent 18 037 001 39 599 917
Non-controlling interest 335 425 631 287
18 372 426 40 231 203
Earnings per share (pence) 0.73 1.81
Diluted earnings per share (pence) 0.70 1.78
Reconciliation of other comprehensive income:
Profit for the year 18 372 426 40 231 203
Other comprehensive income:
Exchange differences on translation foreign operations 16 810 787 (3 863 624)
Taxation related to components of other comprehensive income (168 048) -
Total comprehensive income 35 015 165 36 367 579
Total comprehensive income attributable to:
Owners of the parent 34 467 442 35 707 874
Non-controlling interest 547 723 659 705
35 015 165 36 367 579
Group statements of changes in equity as at 30 June 2022
Total attributable to equity holders of the Group/
Company
Share capital and share premium Foreign currency Translation Share- based payment reserve (Accumulated
reserve Convertible Loss)/ retained earnings NCI
Merger reserve notes reserve Total reserves Total equity
Figures in Pound Sterling
Group
Balance at 30 June 2020 114 585 392 (15 590 019) 23 184 000 2 520 541 203 040 10 317 562 (33 201 211) 91 701 742 2 479 277 94 181 019
Changes in equity
Profit for the year - - - - - - 39 599 917 39 599 917 659 705 40 259 622
Other comprehensive income - (3 892 044) - - - (3 892 044) - (3 892 044) - (3 892 044)
Total comprehensive income for the year - (3 892 044) - - - (3 892 044) 39 599 917 35 707 873 659 705 36 367 578
Issue of share capital net of costs 5 427 796 - - - - - - 5 427 796 - 5 427 796
Share warrants expired - - - (232 812) - (232 812) 232 812 - - -
Share warrants issued - - - 161 974 - 161 974 - 161 974 - 161 974
Share options exercised/lapsed - - - (156 821) - (156 821) 145 990 (10 830) - (10 830)
Share options issued - - - 415 046 - 415 046 - 415 046 - 415 046
Changes in ownership no control lost - - - - - - (23 544) (23 544) 23 544 -
Total changes 5 427 796 (3 892 044) - 187 387 - (3 704 657) 39 955 175 41 678 315 683 249 42 361 563
Balance at 30 June 2021 120 013 188 (19 482 063) 23 184 000 2 707 928 203 040 6 612 905 6 753 964 133 380 057 3 162 526 136 542 582
Changes in equity
Profit for the year 18 037 001 18 037 001 547 723 18 584 724
Other comprehensive income - 16 430 407 - - - 16 430 407 - 16 430 407 - 16 430 407
Total comprehensive income for the year - 16 430 407 - - - 16 430 407 18 037 001 34 467 408 547 723 35 015 131
Issue of share capital net of costs 35 129 124 - - - - - - 35 129 124 - 35 129 124
Share warrants exercised 20 026 - - (20 026) - (20 026) - - - -
Share warrants issued - - - 22 500 - 22 500 - 22 500 - 22 500
Share options exercised/lapsed 173 294 - - (185 494) - (185 494) 12 200 - - -
Share options issued - - - 846 652 - 846 652 - 846 652 - 846 652
Transfer between reserves 203 040 - - - (203 040) (203 040) - - - -
Total changes 35 525 484 16 430 407 - 663 632 (203 040) 16 890 999 18 049 201 70 465 683 547 723 71 013 406
Balance at 30 June 2022 155 538 672 (3 051 656) 23 184 000 3 371 560 - 23 503 904 24 803 165 203 845 740 3 710 249 207 555 988
Group statements cash flows as at 30 June 2022
Group
Figures in Pound Sterling
2022
2021
Cash flows from operating activities
Cash generated from operations 34 901 495 37 080 830
Interest income 1 400 599 500 173
Finance costs (1 445 307) (1 673 787)
Taxation paid (3 851 592) (8 034 521)
Net cash from operating activities 31 005 195 27 872 695
Cash flows from investing activities
Purchase of property, plant and equipment (36 451 781) (17 874 106)
Purchase of intangible assets (15 662 685) (1 942 019)
Purchase of non-current inventories (12 506 751) -
Net cash from investing activities (64 621 217) (19 816 125)
Cash flows from financing activities
Net proceeds on share issues 35 129 124 1 144 436
Proceeds from revolving credit facilities 4 631 802 3 839 225
Proceeds from trade financing arrangements - 2 525 914
Increase in loans to joint ventures (6 933 571) (4 371 552)
Decrease in other financial liabilities (4 062 392) (1 795 310)
Lease payments (588 317) (219 847)
Net cash from financing activities 28 176 646 1 122 866
Total cash movement for the year (5 439 376) 9 179 436
Total cash at the beginning of the year 19 643 047 9 947 822
Effect of exchange rate movement on cash balances 1 814 272 515 789
Total cash at end of the year 16 017 944 19 643 047
Notes to the Group financial statements for the year ended 30 June 2022
1. Statement of accounting policies
Jubilee Metals Group PLC is a public company listed on AIM of the LSE and Altx
of the JSE, incorporated and existing under the laws of England and Wales,
having its registered office at 1st Floor, 7/8 Kendrick Mews, London, SW7 3HG,
United Kingdom.
The Group and Company results for the year ended 30 June 2022 have been
prepared using the accounting policies applied by the Company in its 30 June
2022 annual report, which are in accordance with UK adopted International
Financial Reporting Standards ("IFRS") and IFRC interpretations, in conformity
with the requirements of the Companies Act 2006. The financial statements
are presented in Pound Sterling.
2. Earnings per share
Figures in
Sterling
2022 2021
Earnings attributable to ordinary equity holders of the parent (£) 18 037 001 39 599 917
Weighted average number of shares for basic earnings per share 2 455 458 009 2 185 345 903
Effect of dilutive potential ordinary shares
- Share options and warrants 123 943 501 40 742 711
Diluted weighted average number of shares for diluted earnings per share 2 579 401 510 2 226 088 614
Basic earnings per share (pence) 0.73 1.81
Diluted basic earnings per share (pence) 0.70 1.78
Total number of shares in issue at year end 2 657 051 370 2 242 509 468
Tangible net asset value (£) 136 618 835 77 711 508
Tangible net asset value per share (pence) 4.84 3.47
There have been no other transactions involving ordinary shares or potential
ordinary shares between the reporting date and the date of authorisation of
these financial statements. There were no share transactions post year end to
the date of this report that could have impacted earnings per share had it
occurred before year end.
3. Share Capital, Share Premium, Options and Warrants
Figures in
Sterling
2022 2021
Authorised
The share capital of the Company is divided into an unlimited number of
ordinary shares of £ 0.01 each.
Issued share capital fully paid
Ordinary shares of 1 pence each 26 570 514 22 425 093
Share premium 128 968 158 97 588 094
Total issued capital 155 538 672 120 013 187
The Company issued the following ordinary shares during the period:
Number of Issue price
Date issued shares (pence) Purpose
Opening balance at 1 July 2021 2 242 509 468
21-Sep-21 187 149 096 16.03 Placing
07-Mar-22
07-Mar-22 209 447 822 2.81 Settle debt
26-May-22
26-May-22 2 944 984 3.38 Warrants
26-May-22
26-May-22 500 000 3.50 Options
26-May-22
26-May-22 500 000 4.00 Options
26-May-22
26-May-22 500 000 6.00 Options
26-May-22
26-May-22 500 000 6.00 Options
3 000 000 4.00 Options
2 000 000 4.50 Options
3 500 000 5.50 Options
1 000 000 6.00 Options
2 000 000 4.50 Options
1 500 000 5.50 Options
Total shares in issue at year end 2 657 051 370
Post the year end the Company issued the following ordinary shares:
07-Jul-22 25 000 6.12 Warrants
22-Jul-22
01-Sep-22 1 439 156 6.12 Warrants
01-Sep-22
21-Sep-22 8 509 713 6.12 Warrants
Total shares in issue at the last practicable date 4 659 599 6.12 Warrants
2 500 000 3.38 Warrants
2 674 184 838
187 149 096
209 447 822
2 944 984
500 000
500 000
500 000
500 000
3 000 000
2 000 000
3 500 000
1 000 000
2 000 000
1 500 000
16.03
2.81
3.38
3.50
4.00
6.00
6.00
4.00
4.50
5.50
6.00
4.50
5.50
Placing
Settle debt
Warrants
Options
Options
Options
Options
Options
Options
Options
Options
Options
Options
Total shares in issue at year end
2 657 051 370
Post the year end the Company issued the following ordinary shares:
07-Jul-22
22-Jul-22
01-Sep-22
01-Sep-22
21-Sep-22
Total shares in issue at the last practicable date
25 000
1 439 156
8 509 713
4 659 599
2 500 000
2 674 184 838
6.12
6.12
6.12
6.12
3.38
Warrants
Warrants
Warrants
Warrants
Warrants
During the year share transaction costs accounted for as a deduction from the
share premium account amounted to £1 385 214 (FY2021: £314 842). On 21
September 2021, the Company issued 187 149 096 new ordinary shares at a price
of 16.03 pence to raise £ 30 million before expenses.
The company recognised a share-based payment expense in the share premium
account in an amount of £193 320
(
FY2021: £161 974 ) in accordance with section 610 (2) of the United Kingdom
Companies Act 2006. The charge relates to the issue of new Jubilee shares in
lieu of warrants exercised and the amount was accounted for as a deduction
from the share premium account.
Warrants
At year-end the Company had the following warrants outstanding:
Subscription Share price at issue date
Issue Date Number of Price Expiry (pence)
warrants pence date
19 Jan 2018 63 661 944 6.12 19 Jan 2023 3.55
28 Dec 2018 10 000 000 3.38 28 Dec 2023 2.40
19 Nov 2019 7 818 750 4.00 19 Nov 2022 4.13
22 Jun 2020 750 000 3.40 22 Jun 2023 3.90
21 Jan 2021 4 036 431 13.00 21 Jan 2024 13.20
86 267 125
Reconciliation of the number of warrants in issue
2022 2021
Opening balance 86 267 125 112 292 488
Issued during the year - 4 036 431
Expired/exercised during the year - (30 061 794)
Closing balance 86 267 125 86 267 125
At the last practicable date, the Company had the following warrants
outstanding:
Subscription Share price at issue date
Issue Date Number of Price Expiry (pence)
warrants pence date
19 Jan 2018 49 028 476 6.12 19 Jan 2023 3.55
28 Dec 2018 10 000 000 3.38 28 Dec 2023 2.40
19 Nov 2019 7 818 750 4.00 19 Nov 2022 4.13
22 Jun 2020 750 000 3.40 22 Jun 2023 3.90
21 Jan 2021 4 036 431 13.00 21 Jan 2024 13.20
71 633 657
4. Segmental analysis
Following the strategic restructuring of Jubilee's business model management
presents the following segmental information:
· PGM and Chrome - the processing of PGM and chrome containing
materials;
· Copper and Cobalt - the processing of Copper and Cobalt
containing materials;
· Other - administrative and corporate expenses
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. Madagascar does not meet the qualitative threshold under
IFRS 8 consequently no separate reporting is provided.
2022
PGM and Chrome Copper and
Figures in Pound Sterling Cobalt Other Total
Total assets 130 862 228 101 905 479 60 853 519 293 621 226
Total liabilities 28 026 802 13 309 255 14 729 179 86 065 236
Revenue 121 655 367 18 351 619 - 140 006 986
Gross profit 37 832 751 7 504 327 - 45 337 078
Depreciation and amortisation (7 553 949) (1 387 261) (1 281 692) (10 222 902)
Operating expenses (4 770 379) (1 909 100) (2 791 372) (9 470 851)
Operating profit 25 508 423 4 207 966 (4 073 064) 25 643 325
Investment revenue 588 435 795 786 16 378 1 400 599
Fair value - 580 933 332 996 913 929
Net finance costs (827 726) (617 581) - (1 445 307)
Income from equity account investments - - (6 505) (6 505)
Profit before taxation 25 269 132 4 967 104 (3 730 195) 26 506 041
Taxation (6 487 979) (535 544) - (8 133 615)
Profit after taxation 18 781 153 4 431 560 (3 730 195) 18 372 426
2021
PGM and Copper and
Figures in Pound Sterling Chrome Cobalt Other Total
Total assets 94 800 683 45 994 810 53 871 234 194 666 727
Total liabilities 37 042 261 9 133 180 11 948 703 58 124 144
Revenue 123 260 227 9 585 025 - 132 845 252
Gross profit 65 928 290 5 183 287 - 71 111 577
Depreciation and amortisation (3 273 345) (619 378) - (3 892 723)
Operating expenses (16 903 505) (1 262 032) (3 670 122) (21 835 659)
Segment operating profit 45 751 440 3 301 877 (3 670 122) 45 383 195
Investment revenue 175 069 305 348 19 756 500 173
Fair value - 83 818 (1 245 236) (1 161 418)
Net finance costs (656 423) (1 017 364) - (1 673 787)
Income from equity account investments - - (24 093) (24 093)
Profit before taxation 45 270 086 2 673 679 (4 919 695) 43 024 070
Taxation (13 422 986) 10 630 119 - (2 792 867)
Profit after taxation 31 847 100 13 303 798 (4 919 695) 40 231 203
5. Going Concern
The Group's business activities, together with the factors likely to affect
its future development, performance and position are set out in the Group's
Integrated Annual Report. The Group meets its day‐to‐day working capital
requirements through cash generated from operations and trade finance
facilities.
The current global economic climate creates to some extent uncertainty
particularly over:
· the trading price of metals; and
· the exchange rate fluctuation between the US$ and the ZAR and
thus the consequence for the cost of the company's raw materials as well as
the price at which product can be sold.
The Group's forecasts and projections, taking account of reasonably possible
changes in trading performance, commodity prices and currency fluctuations,
indicates that the Group should be able to operate within the level of its
current cash flow earnings forecasted for the next twelve months.
The Group is adequately funded and has access to further facilities, which
together with contracts with several high-profile customers strengthens the
Group's ability to meet its day-to-day working capital requirements and
capital expenditure requirements. Therefore, the directors believe that the
Group is suitably funded and placed to manage its business risks successfully
despite identified economic uncertainties.
The directors have a reasonable expectation that the Group has adequate
resources to continue in operational existence for the foreseeable future,
thus continuing to adopt the going concern basis of accounting in preparing
the annual financial statements.
6. Events after the reporting period
6.1 Share issues
Post the period under review the Company issued 14 633 468 new ordinary
shares pursuant to warrants exercised at a price of 6.12p per warrant.
Following the share issues, the total shares in issue at the date of this
report are 2 671 684 838 ordinary shares.
6.2 Revolving credit facilities
South Africa
During February 2021 through its wholly owned Windsor SA Jubilee secured a
revolving credit facility ("RCF") with ABSA BANK LIMITED for £3.8 million
(ZAR75 million). During July 2021 the RCF was increased to £10.1 million
(ZAR200 million). During September 2022 the RCF was further increased to £15
million (ZAR300 million).
The RCF is secured as follows:
· Borrower security cession and pledge over the issued capital of
Windsor SA and its assets;
· Parent Shareholder Pledge and Cession from Jubilee including all
shareholder loan claims; and related rights; and
· General Notarial Bond registered over relevant assets of Winsor
SA
The RCF is available for a period of 12 months and can be extended for a
further 12 months by mutual agreement and bears interest at the aggregate rate
of JIBAR plus a margin of 2.8%.
Mauritius
During July 2022, Jubilee, through its subsidiary Braemore Holdings Mauritius
(Pty) Ltd, secured a revolving credit facility in the amount of £4.5 million
(US$5 million) with ABSA BANK (MAURITIUS) LIMITED. The RCF is secured though a
parent shareholder pledge and cession from Jubilee including all shareholder
loan claims and related rights. The RCF is available for a period of 12 months
and can be extended for a further 12 months by mutual agreement.
The RCF bears interest at the daily compounded SOFR plus a margin of 2.3%. The
facility will be used to fund working capital requirements for Jubilee's
Zambian copper operations. The RCF is secured by a parent company guarantee.
Annexure 1
Headline earnings per share
Accounting policy
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 1/2021 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 earnings reported and headline earnings used in the calculation of
headline earnings per share:
Reconciliation of headline earnings per share
June 2022 June 2021
Gross Net Gross Net
£'000 £'000 £'000 £'000
Earnings for the period attributable to ordinary shareholders 18 037 - 39 600
Share of impairment loss from equity accounted associate 6.5 5 31 24
Fair value adjustments (914) (914) 1 161 1 161
Headline earnings from continuing operations 17 128 40 785
Weighted average number of shares in issue ('000) 2 455 458 2 185 346
Diluted weighted average number of shares in issue ('000) 2 579 402 2 226 089
Headline earnings per share from continuing operations (pence) 0.70 1.87
Headline earnings per share from continuing operations (ZAR cents) 14.11 38.62
Diluted headline earnings per share from continuing operations (pence) 0.66 1.83
Diluted headline earnings per share from continuing operations (ZAR cents) 13.43 37.92
Average conversion rate used for the period under review £:ZAR 0.049 0.051
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