REG - Jubilee Metals Group - Audited Results for the year ended 30 June 2024
03/10/2024 07:00
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RNS Number : 7367G Jubilee Metals Group PLC 03 October 2024
Jubilee Metals Group PLC
Registration number (4459850)
AIM share code: JLP
Altx share code: JBL
ISIN: GB0031852162
("Jubilee" or "the Company" or "the Group")
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Audited Results for the year ended 30 June 2024
Jubilee, a diversified metals producer with operations in South Africa and
Zambia, is pleased to announce its audited results for the year ended 30 June
2024 (FY2024). Jubilee delivered another profitable performance achieving
notable growth in chrome production while successfully meeting its revised
copper targets.
Highlights for the year ended 30 June 2024
· Strong operational performance was delivered by the Group with
increased production in chrome and copper supported by the ongoing expansion
of processing capacity in both chrome and copper.
· Group revenue increased by 20.2% to US$205.4 million (FY2023:
US$170.9 million) driven by the increase in chrome and copper production
during the period which was able to offset the sharp pullback in platinum
group metals (PGM) basket prices.
· Chrome concentrate production increased by 20.0% year-on-year to 1
548 205 tonnes (FY2023: 1 289 891 tonnes), exceeding full-year guidance.
· Copper cathode and copper in concentrate (copper units) production
for the financial year increased by 17.1% to 3 422 tonnes (FY2023: 2 923
tonnes) in line with our revised guidance for FY2024 of 3 250 - 4 000 tonnes.
· 6E PGM production decreased by 14.2% to 36 411oz (FY2023: 42 433oz)
driven by increased focus on chrome production given the improved economic
merits of our chrome material.
· Chrome EBITDA increased by 154.3% to US$17.8 million (FY2023: US$7.0
million) helping offset decreased PGM earnings. Chrome contributed to 73.1%
(FY2023: 56.8%) of the Group's revenue whilst PGM contributed to 17.9%
(FY2023: 31.3%) of the Group's revenue.
· Copper EBITDA (excluding fair value adjustments), increased by 71.4%
to US$3.6 million (FY2023:US$2.1 million) driven mainly by the increased sale
of copper units in concentrate for Roan which is sold at a higher margin and
which contributed to 57% of total copper units sold during the period (FY2023:
24%).
· Group EBITDA decreased by 7.1% to US$27.7 million (FY2023: US$29.8
million) supported by increased chrome production helping partially offset the
impact of the sharp decline in PGM EBITDA.
· Both copper and chrome processing capacities continue to expand with
the completion of the upgrade to the Roan Concentrator in August 2024 and the
addition of two further chrome modules currently being completed and expected
to be brought into operation during November 2024.
· Jubilee's focus in Zambia now shifts to bringing into operation its
copper resources to utilise its expanding copper processing capacity such as:
o the acquisition of the Munkoyo open-pit mining project on 28 June 2024,
which was brought into operation during July 2024, ahead of schedule, with
mined run-of-mine (ROM) grades exceeding 3.5% copper which is delivered to
Sable for refining.
o Roan commencing with the processing of historically mined low grade
surface stockpiles
o The large Waste Rock Project, with approximately 260 million tonnes of
surface rock, which is set to begin an industrial trial of 15 000 tonnes
through Roan's front-end module in November 2024 as part of the final due
diligence review.
o The completion of the technical review of Project G, as Jubilee's
potential second targeted copper open-pit mining opportunity.
· Completed an oversubscribed placing of US$16.5 million before costs
at 5.5 pence per share on 5 January 2024 to accelerate the Zambian copper
expansion drive.
· The Group invested US$39.9 million (FY2023: US$65.9 million) in
capital and intangible asset expenditure and other assets to expand its
Zambian and South African operations.
Statement from Leon Coetzer, Chief Executive Officer:
"I am pleased to report strong operational performance, with significant
growth across our copper and chrome operations. Our South African operations
delivered considerable growth to achieve a new record in chrome production,
which was able to in part offset a challenging PGM market.
The expansion of our Zambian copper processing capacity has been a key focus
for this year. Completing the Roan copper concentrator upgrade in August 2024
has positioned the Company to handle multiple feed sources of copper oxide and
sulphides simultaneously, increasing Roan's copper output capacity to 13 000
tonnes per annum (tpa). This achievement by the Jubilee team comes despite
facing several challenges during the implementation of the project which
delayed the commissioning of the project and impacted full year copper
production. The upgrade and expansion of the Sable Refinery is currently
underway and is targeted to be completed over the coming 10 months to reach a
capacity of 16 000tpa. With Roan capable of operating independently of Sable
this will increase Jubilee's copper processing capacity to in excess of its
initial target of 25 000tpa of copper. Our focus now shifts to bring into
operation our various copper resources to take-up this expanded processing
footprint.
In South Africa, chrome production has been a highlight, with a 20.0%
year-on-year increase, reaching 1 548 205 tonnes for FY2024. This growth
allowed us to exceed our full-year guidance of 1 450 000 tonnes and keeps us
on track to achieve our goal of producing 2 million tonnes of chrome
concentrate per annum.
Our PGM production decreased by 14.2% to 36 411 ounces. However, this was
offset by our strategic prioritisation of higher margin chrome material, which
provided improved economic returns.
The Group's financial performance demonstrates the strength of our operations
and the diversification of revenue. Increased chrome production helped offset
the reduction in PGM revenue, given the challenging pricing environment. In
January 2024, we concluded an oversubscribed placing, which supported the
acceleration of our copper expansion projects.
Looking ahead, we remain committed to our production guidance. The strategy
for the year ahead lies in tapping into the full potential of our varied
metals portfolio, using our technical excellence, while staying dedicated to
sustainable and responsible mining.
In conclusion, I would like to thank our shareholders for their continued
support and confidence in Jubilee. The progress made this year has laid a
solid foundation for the future, and I look forward to reporting further
achievements in the year ahead."
Key Operational and Financial Indicators
Indicator Metric FY2024 FY2023 %
Production - Copper (Note 1) Tonnes 3 422 2 923 17.1%
Production - Chrome Tonnes 1 548 205 1 289 891 20.0%
Production - PGM (Note 2) Ounces 36 411 42 433 (14.2%)
Sold - Copper (Note 1) Tonnes 2 655 2 728 (2.7%)
Sold - Chrome Tonnes 1 569 817 1 275 558 23.1%
Sold - PGM (Note 2) Ounces 36 411 42 433 (14.2%)
Average revenue - Copper (Note 3) US$/tonne 6 964 7 451 (6.5%)
Average revenue - Chrome US$/tonne 96 76 26.3%
Average revenue - PGM US$/ounce 1 009 1 262 (20.1%)
Average cost - Copper US$/tonne 4 294 5 281 (18.7%)
Average cost - Chrome (Note 4) US$/tonne 84 67 25.4%
Average cost - PGM (Note 4) US$/ounce 709 785 (9.7%)
Group revenue US$ 000 205 404 170 901 20.2%
Group cost of sales US$ 000 (169 425) (133 102) 27.3%
Group EBITDA US$ 000 27 718 29 842 (7.1%)
Group profit after tax (Note 5) US$ 000 6 388 15 617 (59.1%)
Attributable earnings US$ 000 5 955 15 550 (61.7%)
Earnings per share US$ cents 0.21 0.58 (63.8%)
Net debt (Note 6) US$ 000 (11 922) (2 025) 488.7%
Total capital and intangible expenditure US$ 000 39 876 65 900 (39.5%)
Net asset value per share US$ cents 5.07 5.77 (12.1%)
Number of shares in issue Millions 3 005 659 2 738 130 9.8%
Weighted average number of shares in issue Millions 2 856 010 2 687 683 6.3%
Note 1: Year-on-year copper production increased by 17.1% outpacing copper
sales due to increased product held in stock.
Note 2: In the prior financial year, PGM production included 9 057 ounces of
third-party material processed and sold.
Note 3: Copper unit revenue per tonne decreased mainly due to an increased
proportion of copper units sold as copper concentrate versus copper cathode.
The copper units in concentrate is sold at a percentage discounted below the
LME copper price which has the effect of lowering the average traded copper
price.
Note 4: Certain operating costs were re-allocated between two of Jubilee's
PGM operating plants and two Inyoni chrome processing plants to more
accurately reflect the costs for each operation in relation to output.
The costs re-allocated amounted to US$9.9 million (FY2023: US$4.3 million).
Note 5: The decrease in Group profit after tax is mainly attributable to:
· An increase in deferred tax of US$5.7 million contributing to 33.4%
of the decrease in profit after tax. The increase is mainly attributable to
increased deferred tax of US$4.0 million on unrealised foreign exchange
translation differences (due to the depreciation of the ZAR and the ZMW
against the US$) and increased deferred tax of US$1.6 million on year-end
sales provisions.
· Decrease in gross profit from PGM operations of 55.5% due to a 31.4%
decrease in PGM revenue;
· Increased depreciation and amortisation of US$12.3 million (FY2023:
US$10.8 million) on property, plant and equipment as well as intangibles at
the period end;
· Increased finance costs of US$8.8 million (FY2023: US$6.2 million)
driven by increased metal trade finance to fund higher copper and chrome
production and increased borrowings to fund the Group's expansion in Zambia;
and
· A share based payment expense of US$2.1 million (US$.6 million)
(refer note 8 for details).
Note 6: Net debt represents total borrowings less cash and cash equivalents
for the period under review. The increase is mainly due to increased banking
facilities of US$5.4 million to fund working capital requirements to support
increased chrome and copper production for the period under review as well as
a US$4.8 million increase in borrowings to fund the Group's expansion in
Zambia.
Operational Highlights
Zambia
· Safety performance improved with 488 consecutive days achieved
without a lost time injury (LTI-free) in the current fiscal year, compared to
122 LTI-free days in FY2023), and commensurately realising a reduction in the
LTI Frequency Rate (LTIFR) to zero (FY2023: 2.4).
· Jubilee commenced production at its newly constructed Roan front-end
module post the year end on 8 August 2024.
· Roan's new frond-end capacity has been constructed adjacent to the
already operating milling and flotation circuits increasing the overall
capacity of Roan to a maximum design of 13 000tpa of copper.
· Roan front-end upgrade forms part of Jubilee's overall operational
capacity increase strategy which includes the Sable Refinery upgrade project
currently underway, targeting to reach a combined processing capacity of
25 000tpa of copper.
· Copper units produced for the financial year increased by 17.1% to 3
422 tonnes (FY2023: 2 923 tonnes) meeting the revised guidance for FY2024 of 3
250 - 4 000 tonnes.
· Capital investment reached US$17.5 million (FY2023: US$37.6 million),
principally focused on the Roan front-end upgrade.
· Copper revenue decreased by 9.0% to US$18.5 million (FY2023: US$20.3
million).
· Copper unit revenue per tonne decreased to US$6 964/t (FY2023: US$7
451/t). This mainly resulted from an increased proportion of copper units sold
as copper concentrate which is priced at percentage discount below the LME
copper price which has the effect of lowering the revenue per copper unit.
· The average LME copper price increased by 5% to US$8 678/t (FY2023:
US$8 289/t).
· Average copper unit cost per tonne improved by 18.7% to US$4 294/t
(FY2023: US$5 281/t).
· Copper gross profit margin improved to 38.3% (FY2023: 29.1%) mainly
driven by an increasing proportion of copper units in concentrates sales
compared to copper cathode.
South Africa
· Operations achieved 88 LTI-free days (FY2023: 177 LTI-free days),
reflecting a consistent LTIFR rate of 1.62, in line with performance from the
previous year.
· Chrome concentrate produced for FY2024 increased by 20.0%
year-on-year to 1 548 205 tonnes (FY2023: 1 289 891 tonnes) exceeding
full-year guidance of 1 450 000tpa.
· PGM feed grades delivered with higher chrome recoverable material
being prioritised to benefit from favourable chrome market conditions.
· PGM production for FY2024 decreased by 14.2% to 36 411oz (FY2023: 42
433oz) offset by the significant increase in chrome production given the
prioritisation to improved economic merits of our chrome material.
· Jubilee's chrome processing capacity is set to increase further with
the addition of two additional chrome modules currently being completed which
are targeted to be brought into operation during November 2024.
· Capital investment reached US$22.3 million (FY2023: US$28.0 million),
focused on the expansion of Jubilee's chrome operations.
· Revenue from South African operations increased by 24.1% to US$186.9
million (FY2023: US$150.6 million).
· Average CIF chrome price increased by 13.8% to US$296/t (FY2023:
US$260/t)
· Chrome concentrate cost per tonne increased to US$84/t (FY2023:
US$67/t), driven by additional chrome material externally sourced.
· PGM cost per ounce reached US$709 (FY2023: US$785), remaining
profitable despite challenging PGM market conditions.
· Gross profit margin from South African operations decreased to 15.5%
(FY2023: 21.2%) predominately impacted by a 31.4% decline in PGM revenue.
· The average PGM basket price decreased by 21.1% to US$1 351/oz
(FY2023: US$1 712/oz).
Sustainability
As part of its sustainability efforts, Jubilee embraces an innovative approach
that redefines traditional mining practises by reprocessing previously
processed material, previously mined material and open-pit mining materials,
thereby creating sustainable solutions for resource utilisation.
Jubilee consistently strives to improve operational efficiencies and challenge
industry norms by being a leading metals recovery group unlocking value from
overlooked resources. With a wealth of low-cost resources and an innovative
low-capital modular approach significant opportunities for growth exists, from
which shareholder value can be enhanced through world class processing
technology and a highly experienced management team.
Jubilee operates its projects within communities that are integrated into the
success of the projects through its novel corporate social investment
programmes.
Zambia
· Safety Performance
o The Zambian operations achieved a remarkable improvement in the LTIFR to
zero, with the last LTI occurring in February 2023.
· Environmental Performance
o Scope 1 emissions for FY 2024 totalled 645 tonnes of CO2, a decrease from
885 tonnes in FY2023.
o Scope 2 emissions increased to 110 tonnes compared to 103 tonnes in
FY2023.
· Electricity Usage
o Zambian operations are regularly impacted by power failures and
disturbances to address this challenge, a three-year renewable power purchase
agreement has been signed with Lunsemfwa Hydro Power Company (LHPC), an
independent hydro and solar power producer in Zambia. This agreement provides
additional reliable power supply for both the Roan and Sable operations at
rates competitive with current power tariffs, effective from 1 September 2024.
o Electricity consumption decreased by 14.7% to 5,360 kWh per tonne of
copper produced (FY2023: 6,282 kWh per tonne of copper produced).
· Water Usage
o Total water usage for FY 2024 was 1.56 million litres (1.56 ML), compared
to 1.365 million litres (1.37 ML) in FY 2023.
· Corporate social responsibility
o Jubilee conducted a detailed community baseline and needs assessments in
Zambia, involving data collection, surveys and focussed group discussions.
Following the assessments, comprehensive infrastructure investment community
upliftment programs are developed in consultation with relevant stakeholders,
aiming to improve the quality of life for local residents.
o Key initiatives include providing access to clean running water to
alleviate water scarcity, implementing sustainable sanitation solutions
through a capacity-building program for compost toilets, enhancing education
and infrastructure, improving roads and installing solar pumps and water
storage to facilitate better access to water and sanitation.
South Africa
· Safety Performance
o The LTIFR regressed to 1.62 (FY2023: 1.16). The increase in lost time
injuries was due to one additional injury in the comparable period.
o A significant focus has been placed on enhancing access control measures,
which contributed to more accurate reporting of man hours worked. This
improved accuracy also impacted the reported LTIFR.
· Environmental Performance
o Total emissions increased to 42.85 kg CO(2)e per tonne Chromite (FY2023:
40.91). This increase reflects a 4.5% rise in greenhouse gas emissions
compared to the previous year.
o Notably there was a 22.0% increase in feed and a 20% increase in
production of chrome concentrate. This growth is associated with the
deployment of 222 trucks per day for delivering both ROM material and
dispatching PGM bearing concentrates, along with the relevant yellow machines
used in the operations.
· Electricity Consumption
o Electricity consumption increased by 2.5% to 33.86 kWh per tonne of chrome
produced (FY2023: 33.04 kWh per tonne of chrome produced).
o All Jubilee's plants are fitted with diesel generators to ensure
continuous operations during loadshedding periods. There was a total of 6 077
generator hours, which also contributed to an increase in Scope 1 emissions.
o Generators contributed to a 71% increase in diesel consumption compared to
the comparative year, however yellow machines' diesel consumption decreased by
12%.
· Corporate social responsibility
o Jubilee conducts comprehensive community baseline and needs assessments in
South Africa involving data collection, surveys and focussed group discussions
to identify areas where communities lack access to essential and basic water,
sanitation and other facilities.
o Key initiatives include social upliftment of which childhood development
remains a significant social responsibility in South Africa.
o Furthermore, improvement of infrastructure and facilities provides
communities with access to clean water and proper sanitation facilities,
schools and clinics.
o Local and preferential procurement is a cornerstone of Jubilee's community
development strategy that demonstrates a commitment to supporting and
diversifying local economies.
Looking forward to FY2025
· Chrome concentrate production guidance is 1.65 million tonnes (6.6%
increase year-on-year), and 6E PGM production guidance is 36 000oz (similar
year-on-year).
· Copper units production guidance of between 5 850 tonnes (71.0%
year-on-year production increase) and 7 500 (119.2% year-on-year production
increase) tonnes.
Group financial performance analysis for the year ending 30 June 2024
Change in presentation currency
The Group has changed its presentation currency for financial results from GBP
to US$. The rationale for the change is to present the Group's results in US$
to align with industry norms and to assist with comparability of financial
information. The majority of the Group's revenues are also recognised in US$.
This change in presentation currency constitutes a voluntary change in
accounting policy under IAS 8, Accounting Policies, Changes in Accounting
Estimates and Errors. Consequently, the change requires the restatement of
comparative figures.
Management believes that reporting in US$ provides a more relevant
representation of the Group's financial position, funding and treasury
functions, the Group's financial performance and cash flows.
The functional currencies, which are the South African Rand (ZAR) and Zambian
Kwacha (ZMW), remain unchanged as they represent the primary economic
environments in which the Group operates. Foreign exchange exposures,
therefore, remain unaffected by the change. However, the foreign currency
translation reserve will now be presented in US$ due to the difference between
the functional currencies and the Group's presentation currency.
Exchange rates and their impact on results
Jubilee's subsidiaries are incorporated in multiple jurisdictions including
South Africa (ZAR), Zambia (ZMW), Mauritius (US$), the United Kingdom (£/GBP)
and Australia (AUD). The Group's operating subsidiaries are in South Africa
and Zambia where revenue is invoiced in US$ and recorded in ZAR and ZMW,
respectively. Costs incurred in South Africa are in ZAR. Costs incurred in
Zambia are in both ZMW and US$. The functional currency for South Africa is
ZAR and for Zambia it is ZMW, while the Group's reporting currency is United
States Dollars (US$).
Year-on-year changes in the currency rates, respectively, must be considered
when comparing year-on-year results. During the period under review, spot and
average exchange rates moved as illustrated below.
FY2024 FY2023 % change
Spot exchange rate
US$/ZAR 18.16 18.83 (3.6%)
US$/ZMW 24.00 17.54 36.8%
US$/GBP 0.79 0.79 (-%)
Average exchange rate
US$/ZAR 18.70 17.75 5.4%
US$/ZMW 23.48 17.70 32.7%
US$/GBP 0.79 0.83 (4.8%)
Revenue
Copper units' revenue decreased by 8.9% to US$18.5 million (FY2023: US$20.3
million) due to:
o The average copper unit revenue received decreased by 6.5% to US$6
964/t (FY2023: US$7 451/t). The lower average copper revenue per unit was due
to an increase in copper sulphide concentrate sales
year- on-year. In the current year, copper sales
from sulphide concentrates accounted for 57% of the group's
total copper sales (FY2023: 24%).
o Copper units sold decreased by 2.7% to 2 655 tonnes (FY2023: 2 728
tonnes)
o Copper contributed 9.0% (FY2023: 11.9%) to total revenue.
Chrome revenue increased by 54.8% to US$150.2 million (FY2023: US$97.0
million) driven by:
o Chrome concentrate tonnes sold increasing by 23.1% to 1 569 817 tonnes
in FY2024 (FY2023: 1 275 558 tonnes)
o Chrome revenue supported by a favourable average chrome concentrate
price per tonne received increasing by 4.8% to US$305/t (FY2023:
US$291/t).
o Chrome contributed 73.1% (FY2023: 56.8%) to Group revenue.
PGM revenue decreased by 31.4% to US$36.7million (FY2023: US$53.5 million) as
a result of:
o Impacted significantly by challenging PGM pricing environment
resulting in a 21.2% decrease in the average US$ PGM basket price
to US$1 349/oz (FY2023: US$1 713/oz).
o PGM ounce production for FY2024 decreased by 14.2% to 36 411oz
(FY2023: 42 433oz) offset by the significant increase in chrome
production given the prioritisation to improved economic merits of
our chrome material.
o PGMs contributed 17.9% (FY2023: 31.3%) to Group revenue.
Cost of production
Cost of production increased by 27.3% to US$169.4 million (FY2023: US$133.1
million). The increase in the Group's production costs was primarily driven by
the sourcing of additional chrome-bearing ore to process, which enhanced the
Group's chrome revenue and production profile.
Cost of production for the chrome and PGM operations in South Africa
contributed 93.27% of the Group's cost of production amounting to US$158.0
million (FY2023: US$118.7 million (89.2%)).
The main categories of cost of production for chrome and PGM operations
include:
o Electricity costs increased by 46.7% in South Africa to US$4.4 million
(FY2023: US$3.0 million) due to continued tariff increases, higher chrome
production and diesel generation costs to counter the power challenges in
South Africa.
o Salaries and wages increased by 56.4% to US$12.2 million (FY2023: US$7.8
million) contributing 7.2% of the Group's total cost of production (FY2023:
5.9%). The increase is mainly driven by new chrome projects that came online
during the period under review.
o Mining and processing costs increased by 31.0% to US$141.4 million
(FY2023: USS$107.9 million), mainly driven by a 31% increase in ROM and
tailings costs as the chrome operations expanded into own-sourced material
during the period under review. ROM and tailings costs contributed 53.15% of
the Group's total cost of production (FY2023: 51.64%).
Cost of production for the Zambian operations decreased by 20.8% to US$11.4
million (FY2023: US$14.4 million) due to the sourcing and processing of
high-grade copper bearing concentrates at Sable and Roan providing improved
copper margins. The Zambian operations contributed 6.73% of the Group's cost
of production (FY2023: 10.8%).
EBITDA
EBITDA decreased to US$27.7 million (FY2023: US$29.8 million) driven mainly by
decreased earnings from the Group's PGM operations. The table below sets out
the contribution of each operating unit to the Group's EBITDA:
FY2024 Copper Chrome PGM Corporate Total
Figures in US$
Profit before taxation 4 181 253 14 229 269 (6 126 729) (3 641 433) 8 642 360
Depreciation, amortisation and impairments 1 438 159 1 629 900 8 700 230 524 807 12 293 096
Investment revenue - (125 426) (763 415) (1 161 635) (2 050 476)
Finance costs 1 486 893 2 112 865 4 909 232 324 095 8 833 085
EBITDA FY2024 7 106 305 17 846 608 6 719 318 (3 954 166) 27 718 065
FY2023 Copper Chrome PGM Corporate Total
Profit before taxation (1 095 073) 5 566 282 12 799 618 (2 482 349) 14 788 478
Depreciation, amortisation and impairments 2 087 686 316 535 7 903 179 471 510 10 778 910
Investment revenue - (134 829) (780 368) (1 029 264) (1 944 461)
Finance costs 1 057 100 1 211 564 3 950 282 - 6 218 946
EBITDA FY2023 2 049 713 6 959 552 23 872 711 (3 040 103) 29 841 873
Operating expenses
The Group's operating expenses increased by 26.7% to US$24.2 million (FY2023:
US$19.1 million). The previous period included a previously recognised upward
fair value adjustment on chrome bearing tailings in the amount of US$4.2
million.
Finance cost
Finance cost increased by 41.9% to US$8.8 million (FY2023: US$6.2 million).
The increase is mainly due to increased banking facilities of US$5.4 million
to fund working capital requirements to support increased chrome and copper
production for the period under review as well as an increase in borrowings to
fund the Group's expansion in Zambia.
Fair value adjustments - Business Combination
In 2018, Jubilee acquired 100% of Enviro Mining Limited from Kendrick
Resources, thereby securing full ownership and control over Kabwe Operations
Limited during June 2020. The acquisition resulted in the recognition of a
fair valuation liability of US$3.5 million, contingent on the earnings payable
from the Kabwe Project. Subsequent to the acquisition, the fair value
liability was reassessed following recent project assessments, leading to a
downward adjustment of US$3.5 million in the liability's fair value.
Capital expenditure
During the period, the Group invested cash of US$39.9 million (FY2023: US$65.9
million) in capital and intangible expenditure and other assets to expand its
South African chrome operations and to continue with the upgrade and expansion
of its copper processing facilities in Zambia.
FY2024 Copper Chrome and PGM Exploration Total
Figures in US$
Capital Expenditure 15 290 810 13 769 914 - 29 060 724
Intangible Expenditure 1 782 606 7 896 466 122 200 9 801 272
Business combination 250 000 - - 250 000
Other assets 151 398 612 304 - 763 702
Total 17 474 814 22 278 684 122 200 39 875 698
FY2023 Copper Chrome and PGM Exploration Total
Capital Expenditure 34 842 692 18 065 089 - 52 907 781
Intangible Expenditure 2 393 022 8 433 030 298 589 11 124 641
Other assets 372 091 1 495 895 - 1 867 986
Total 37 607 805 27 994 014 298 589 65 900 408
Key investments during the year were the acquisition of the Munkoyo open-pit
mining project for US$1.75 million through cash of US$250 000 and the issuance
of 15.1 million shares through an asset-for-share transaction and the
Company's investment in the large Waste Rock Project.
An amount of US$2.5 million advanced to secure the rights to the large Waste
Rock Project. Under the large Waste Rock Project acquisition agreement -
Jubilee has until 6 November 2024 to complete its due diligence and elect to
either acquire the asset or the company holding the rights to the large Waste
Rock Project material. Post the period end, Jubilee has requested an extension
of the due diligence period to January 2025 to ensure sufficient time for the
technical and commercial terms to analyse the results of the industrial trial.
The advance was made as part of the overall acquisition price of US$30
million, payable quarterly over 18 months, contingent on the successful
completion of a due diligence by Jubilee. According to the terms of the
agreement, Jubilee will forfeit the payments made to date, should it conclude
not to proceed with the large Waste Rock Project. An amount of US$4.95 million
has been advanced up to the date of this release.
Cash and debt facilities
At the year end, the Group's cash and cash equivalents stood at US$19.3
million (FY2023: US$15.9 million). Net cash generated from operating
activities totalled US$17.6 million (FY2023: US$49.9 million), impacted
predominately by a lower change in working capital period-on-period of US$17.3
million. During the period under review the Company increased the usage of its
revolving credit facilities with ABSA Bank Limited in the amount of US$23.3
million (FY2023: US$17.9 million), and refinanced these facilities post the
period in July 2024. These facilities are for a twelve-month period with the
option to extend for a further twelve month period from refinancing.
Earnings per share and equity
The Group's earnings per share decreased by 63.8% to 0.21 US$ cents or 0.17
pence (FY2023: 0.58 US$ cents or 0.48 pence), partly due to the issue of 236.4
million new Jubilee ordinary shares (Shares) in January 2024 to raise funding
for the Group's Zambian operations. A further 16.1 million Shares were issued
pursuant to warrant and option exercises and 15.1 million Shares were issued
in relation to the acquisition of an open-pit mining operation Munkoyo, in
Zambia.
Earnings attributable to owners of the parent decreased by 61.9% to US$6.0
million (FY2023: US$15.5 million). The Group's equity remained static at
US$259.0 million (FY2023: US$259.2 million), predominately due to the profit
after taxation off-set by a 79.9% increase in foreign exchange currency
translation losses incurred on translation of the Group's foreign operations
in the amount of US$26.5 million (FY2023: US$14.8 million). This is due to the
weakening ZAR and ZMW functional currencies against the US$ reporting currency
in the period under review.
Directorship changes
Dr Evan Kirby resigned from the Jubilee board effective 31 March 2024.
AIM listing
The financial information for the year ended 30 June 2024 does not constitute
statutory accounts as defined in sections 435(1) and 435(2) of the UK
Companies Act 2006 (Companies Act 2006) but has been derived from those
accounts. Statutory accounts for the year ended 30 June 2023 have been
delivered to the Registrar of Companies and those for 2024 will be delivered
following the Company's Annual General Meeting. Crowe UK LLP, the external
auditor registered in the UK, has reported on these accounts for the year
ended 30 June 2024.
Audit Opinion
The audit report for 30 June 2024 was unqualified, did not include a reference
to any matters to which auditors draw attention by way of emphasis of matter,
and did not contain a statement under section 498(2) or 498(3) of the
Companies Act 2006. These statutory accounts have been prepared in accordance
with IFRS and IFRS Interpretations Committee interpretations adopted for use
by the European Union, with those parts of the Companies Act 2006 applicable
to companies reporting under IFRS.
Integrated Annual Report
The Integrated Annual Report for the year ended 30 June 2024, and the Notice
of Annual General Meeting are expected to be published on or about 14 October
2024. Physical copies of the Annual Report will be posted to shareholders who
have elected to receive them.
3 October 2024
For further information visit www.jubileemetalsgroup.com
(http://www.jubileemetalsgroup.com) , follow Jubilee on Twitter
(@Jubilee_Metals) or contact:
Jubilee Metals Group PLC
Leon Coetzer (CEO)
Tel: +27 (0) 11 465 1913
Nominated Adviser - SPARK Advisory Partners Limited
Andrew Emmott/James Keeshan
Tel: +44 (0) 20 3368 3555
PR & IR Adviser - Tavistock
Jos Simson/ Gareth Tredway
Tel: +44 (0) 207 920 3150
Joint Broker - RBC Capital Markets
Farid Dadashev/Jamil Miah
Tel +44 (0) 20 7653 4000
Joint Broker - Zeus Capital
Harry Ansell/Katy Mitchell
Tel: +44 (0) 20 7220 1670/+44 (0) 113 394 6618
JSE Sponsor - Questco Corporate Advisory Proprietary Limited
Alison McLaren
Tel: +27 (0)11 011 9207
Group statements of financial position
at 30 June 2024
Figures in United States Dollars (US$) Note FY2024 FY2023 FY2022
(Restated) (Restated)
Assets
Non-current assets
Property, plant and equipment 114 520 955 112 303 429 84 869 888
Intangible assets 106 652 664 101 196 677 95 379 452
Other financial assets 19 102 411 17 901 240 17 089 148
Inventories 17 015 084 17 100 213 5 277 967
Deferred tax 6 013 455 7 508 375 15 190 450
263 304 569 256 009 934 217 806 905
Current assets
Other financial assets - 428 056 852 402
Derivative financial instruments 552 109 - -
Inventories 32 329 465 45 156 976 33 687 817
Tax assets 1 133 583 880 511 1 203 339
Trade and other receivables 64 305 137 37 579 992 67 217 814
Contract assets 33 013 201 24 068 359 22 926 344
Cash and cash equivalents 19 322 996 15 948 656 19 455 073
150 656 491 124 062 550 145 342 789
Total assets 413 961 060 380 072 484 363 149 694
Equity and liabilities
Equity attributable to equity holders of parent
Share capital and share premium 6 264 953 093 246 783 193 239 968 379
Reserves (50 850 393) (26 058 429) (11 165 912)
Retained income 40 365 168 34 410 270 18 860 329
254 467 868 255 135 034 247 662 796
Non-controlling interest 4 495 849 4 045 695 4 506 394
258 963 717 259 180 729 252 169 190
Liabilities
Non-current liabilities
Other financial liabilities - 3 549 568 3 404 995
Lease liabilities 2 520 268 30 570 436 842
Deferred tax liability 18 208 504 17 538 777 22 131 024
Provisions 932 978 1 187 158 1 128 828
21 661 750 22 306 073 27 101 689
Current liabilities
Other financial liabilities 4 751 055 - 1 257
Trade and other payables 74 791 056 75 512 719 70 373 166
Contract liabilities 25 761 787 - -
Banking facilities 10 23 311 917 17 942 738 10 288 741
Current tax liabilities 4 057 888 5 130 225 3 215 651
Lease liabilities 661 890 - -
133 335 593 98 585 682 83 878 815
Total liabilities 154 997 343 120 891 755 110 980 504
Total equity and liabilities 413 961 060 380 072 484 363 149 694
During the period under review, the Group changed its reporting currency to
United States Dollars (US$). The comparative financial information has been
restated accordingly to reflect this change from GBP to US$. For further
details, please refer to note 2.
Group statements of comprehensive income
or the year ended 30 June 2024
Figures in United States Dollars (US$) Note FY2024 FY2023
(Restated)
Revenue 205 404 178 170 900 977
Cost of sales (169 425 111) (133 101 963)
Gross profit 35 979 067 37 799 014
Operating expenses (24 193 702) (19 113 234)
Operating profit 11 785 365 18 685 780
Investment revenue 2 050 476 1 944 461
Fair value adjustments 5 3 639 604 377 184
Finance costs (8 833 085) (6 218 947)
Profit before taxation 8 642 360 14 788 478
Taxation (2 254 456) 828 575
Profit for the year 6 387 904 15 617 053
Earnings for the year attributable to:
Owners of the parent 5 954 898 15 549 940
Non-controlling interest 433 006 67 113
6 387 904 15 617 053
Earnings per share (US$ cents) 3 0.21 0.58
Diluted earnings per share (US$ cents) 3 0.20 0.57
Basic earnings per share (pence) 0.17 0.48
Diluted basic earnings per share (pence) 0.16 0.47
Reconciliation of other comprehensive income
Profit for the year 6 387 904 15 617 053
Other comprehensive income:
Exchange differences on translation foreign operations (26 485 489) (14 719 254)
Total comprehensive (loss)/profit (20 097 585) 897 799
Total comprehensive (loss)/profit attributable to:
Owners of the parent (20 457 177) 1 358 498
Non-controlling interest 359 592 (460 699)
(20 097 585) 897 799
Group statements of changes in equity
for the year ended 30 June 2024
Total attributable to equity holders of the Company
Share capital and share premium Foreign currency Translation Share- based payment reserve
reserve Non- controlling interest
Figures in United States Dollars (US$) Merger reserve Total reserves Retained
income Total equity
Balance at 30 June 2022 (Restated) 239 968 379 (53 791 329) 36 826 515 5 798 902 (11 165 912) 18 860 329 247 662 796 4 506 394 252 169 190
Changes in equity
Profit for the year - - - - - 15 549 941 15 549 941 - 15 549 941
Other comprehensive income - (14 191 441) - - (14 191 441) - (14 191 441) (460 699) (14 652 140)
Total comprehensive income for the year - (14 191 441) - - (14 191 441) 15 549 941 1 358 500 (460 699) 897 801
Issue of share capital net of costs 5 534 614 - - - - - 5 534 614 - 5 534 614
Share warrants exercised 1 176 405 - - (1 176 405) (1 176 405) - - - -
Share options exercised/lapsed 103 795 - - (103 795) (103 795) - - - -
Share options issued - - - 579 124 579 124 - 579 124 - 579 124
Total changes 6 814 814 (14 191 441) - (701 076) (14 892 517) 15 549 941 7 472 238 (460 699) 7 011 539
Balance at 30 June 2023 (Restated) 246 783 193 (67 982 770) 36 826 515 5 097 826 (26 058 429) 34 410 270 255 135 034 4 045 695 259 180 729
Changes in equity
Profit for the year - - - - - 5 954 898 5 954 898 433 006 6 387 904
Other comprehensive income - (26 412 074) - - (26 412 074) - (26 412 074) (73 414) (26 485 488)
Total comprehensive income for the year - (26 412 074) - - (26 412 074) 5 954 898 (20 457 176) 359 592 (20 097 584)
Issue of share capital net of costs 17 703 892 - - - - - 17 703 892 - 17 703 892
Share warrants exercised 63 585 - - (63 585) (63 585) - - - -
Share warrants issued - - - 465 041 465 041 - 465 041 - 465 041
Share options exercised 402 423 - - (402 423) (402 423) - - - -
Share options issued - - - 1 621 077 1 621 077 - 1 621 077 - 1 621 077
Business Combination - - - - - - - 90 562 90 562
Total changes 18 169 900 (26 412 074) - 1 620 110 (24 791 964) 5 954 898 (667 166) 450 154 (217 012)
Balance at 30 June 2024 264 953 093 (94 394 844) 36 826 515 6 717 936 (50 850 393) 40 365 168 254 467 868 4 495 849 258 963 717
• The foreign currency translation reserve includes all differences
arising from the translation of financial statements of foreign operations.
These differences result from using the closing exchange rate at the end of
the financial year for the statement of financial position and the average
exchange rate during the financial year for statement of comprehensive income.
• The share-based payment reserve is the value of equity-settled
share-based payment transactions. This reserve accounts for the share
retention incentives granted, recognised over the vesting period of the
related share-based payment awards. The value within this reserve represents
the cumulative expense recognised in the financial statements for share-based
payments that are settled through equity issuance.
• Non-controlling interest is the difference between the carrying amount
of non-controlling interests and the consideration paid or received for
transactions involving non-controlling interests, provided these transactions
do not result in a loss of control over the subsidiary.
Group statements of cash flows
for the year ended 30 June 2024
Figures in United States Dollars (US$) Note FY2024 FY2023
(Restated)
Cash flows from operating activities
Cash generated from operations 9 27 456 942 56 325 816
Interest income 2 050 476 1 944 461
Finance costs (8 833 085) (6 218 947)
Taxation paid (3 040 154) (2 177 416)
Net cash from operating activities 17 634 179 49 873 914
Cash flows from investing activities
Purchase of property, plant and equipment (29 060 724) (52 941 790)
Sale of property, plant and equipment - 34 009
Purchase of intangible assets (9 801 272) (11 124 641)
Purchase of non-current inventory - (1 909 763)
Increase in other financial assets (763 702) 41 777
Business Combination 11 (250 000) -
Net cash from investing activities (39 875 698) (65 900 408)
Cash flows from financing activities
Net proceeds on share issues 16 213 497 5 534 614
Proceeds from revolving credit facilities 5 369 179 7 653 997
Increase/(decrease) in other financial liabilities 4 751 055 (1 257)
Lease payments (490 541) (406 272)
Net cash from financing activities 25 843 190 12 781 082
Total cash movement for the year 3 601 671 (3 245 412)
Total cash at the beginning of the year 15 948 657 19 455 073
Effect of exchange rate movement on cash balances (227 332) (261 005)
Total cash at end of the year 19 322 996 15 948 656
Notes to the Group annual financial statements
for the year ended 30 June 2024
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 2024 have been
prepared using the accounting policies applied by the Company in its 30 June
2023 annual report, which are in accordance with UK-adopted international
accounting standards, International Financial Reporting Standards (IFRS) and
IFRC interpretations, in conformity with the requirements of the Companies Act
2006. The financial statements are presented in United States Dollars.
2. Change in presentation currency
The Group has changed its presentation currency for financial results from GBP
to US$. The rationale for the change is to present the Group's results in US$
to align with industry norm and to assist with comparability of financial
information. The majority of the Group's revenues are also recognised in US$.
This change in presentation currency constitutes a voluntary change in
accounting policy under IAS 8, Accounting Policies, Changes in Accounting
Estimates and Errors. Consequently, the change requires the restatement of
comparative figures.
Management believes that reporting in US$ provides a more relevant
representation of the Group's financial position, funding and treasury
functions, financial performance and cash flows. The functional currencies,
which are the South African Rand (ZAR) and Zambian Kwacha (ZMK), remain
unchanged as they represent the primary economic environments in which the
Group operates. Foreign exchange exposures, therefore, remain unaffected by
the change. However, the foreign currency translation reserve will now be
presented in US$ due to the difference between the functional currencies and
the Group's presentation currency.
3. Earnings per share
Basic earnings per share is calculated by dividing the profit for the year
attributable to equity holders of the parent by the weighted average number of
ordinary shares outstanding during the year. The following table reflects the
income and share data used in the basic earnings per share computation:
Figures in United States Dollars (US$) FY2024 FY2023
(Restated)
Earnings attributable to ordinary equity holders of the parent (US$) 5 954 898 15 549 940
Weighted average number of shares for basic earnings per share 2 856 010 000 2 687 683 403
Effect of dilutive potential ordinary shares
- Share options and warrants 71 057 956 45 560 690
Diluted weighted average number of shares for diluted earnings per share 2 927 067 956 2 733 244 093
Basic earnings per share (US$ cents) 0.21 0.58
Diluted basic earnings per share (US$ cents) 0.20 0.57
Basic earnings per share (pence) 0.17 0.48
Diluted basic earnings per share (pence) 0.16 0.47
There have been no other transactions involving ordinary shares or potential
ordinary shares between the reporting date and the date 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.
4. Dividend per share
No dividends were declared during the current reporting period to shareholders
(FY2023: Nil).
5. Fair value adjustments
The Group had the following fair value adjustments during the period under
review:
Figures in United States Dollars (US$) FY2024 FY2023
(Restated)
Fair value adjustments - Business combinations (Note 11) 3 549 568 -
Fair value adjustments - Other financial assets non-current 90 036 377 184
Total 3 639 604 377 184
In 2018, Jubilee acquired 100% of Enviro Mining Limited from Kendrick
Resources, thereby securing full ownership and control over Kabwe Operations
Limited during June 2020. The acquisition resulted in the recognition of a
fair valuation liability of US$3 549 568, contingent on the earnings payable
from the Kabwe Project. Subsequent to the acquisition, the fair value of this
liability was reassessed following recent project assessments, leading to a
downward fair value adjustment of US$3 549 568 (FY2023: US$ Nil) in the
liability's fair value.
6. Share capital
Figures in United States Dollars (US$) FY2024 FY2023
(Restated)
Authorised
The share capital of the Company is divided into an unlimited number of
ordinary shares of £0.01 each.
Issued share capital fully paid
Ordinary share capital (US$) 42 272 464 38 830 652
Share premium (US$) 222 680 629 207 952 541
Total issued capital (US$) 264 953 093 246 783 193
The Company issued the following ordinary shares during the period:
Number of Issue price
Date issued shares pence Purpose
Opening balance at 1 July 2023 2 738 129 981
05-Jan-24 236 363 636 5.50 Placing
12-Mar-24 5 000 000 1.00 Options
12-Mar-24 4 000 000 3.50 Options
06-Jun-24 2 000 000 4.00 Options
06-Jun-24 2 000 000 6.00 Options
06-Jun-24 3 068 740 4.00 Warrants
28-Jun-24 15 096 798 7.81 Acquisition
3 005 659 155
On 5 January 2024 the Company raised US$16.5 million to fund its copper
strategy in Zambia. The Company did not issue any new shares following the
reporting period under review. During the year new share transaction costs
accounted for as a deduction from the share premium account amounted to
US$0.94 million (FY2023: US$ Nil). The company recognised a share-based
payment expense in the share premium account in an amount of US$0.28 million
(FY2023: US$1.28 million) in accordance with section 610 (2) of the United
Kingdom Companies Act 2006. The charge relates to share-based payments
accounted for as a deduction from the share premium account.
7. Warrants
At year-end and at the last practicable date the Company had the following
warrants outstanding:
Issue Date Warrant holder Purpose Number of warrants Issue price (pence) Expiry date Share price at issue date (pence)
19-Nov-19 Pershing Nominees Placing fees 4 750 010 4.0 19-Nov-24 4.1
22-Jun-20 Pershing Nominees Placing fees 750 000 3.4 22-Jun-25 3.9
21-Jan-21 Pershing Nominees Placing fees 4 036 431 13.0 21-Jan-26 13.2
07-Dec-23 Tennant Metals Group Metal trade funding fees 22 279 492 7.1 07-Dec-25 5.2
31 815 933
Reconciliation of the number of warrants in issue FY2024 FY2023
(Restated)
Opening balance 12 605 181 86 267 125
Issued during the year 22 279 492 -
Expired/exercised during the year (3 068 740) (73 661 944)
Closing balance 31 815 933 12 605 181
The weighted average life remaining of share warrants at the year-end was 1.17
years (FY2023: 1.12) and the weighted average exercise price 5.97 (FY2023:
9.45) pence. Expected volatility was determined by calculating the historical
volatility of the Group's share price over the last year. There are no
performance conditions associated with the warrants issued. Warrants have
different lives and for the purposes of valuing the warrants an expected
warrant life of three years has been applied.
8. Share-based payments
Reconciliation of the number of options in issue FY2024 FY2023
(Restated)
Opening balance 69 650 000 129 900 000
Exercised during the year (13 000 000) (10 750 000)
Issued during the year 61 030 000 -
Expired/cancelled during the year - (49 500 000)
Closing balance 117 680 000 69 650 000
Reconciliation of the share-based payment reserve:
Figures in United States Dollars (US$) FY2024 FY2023
(Restated)
Opening balance 5 097 826 5 798 902
New options granted 1 621 077 579 124
Options lapsed/exercised (402 423) (103 795)
Share warrants issued 465 041 -
Share warrants exercised/lapsed (63 585) (1 176 405)
Closing balance 6 717 936 5 097 826
9. Cash generated from operations
Figures in United States Dollars (US$ FY2024 FY2023
(Restated)
Profit before taxation 8 642 360 14 788 477
Adjustments for:
Depreciation and amortisation 12 293 096 10 778 910
Loss on sale of fixed assets 1 839 (4 510)
Interest received (2 050 476) (1 944 461)
Finance costs 8 833 085 6 218 946
Fair value adjustments (3 639 604) (377 184)
Effect of exchange differences on translation (970 153) 5 853 590
Share-based payments 2 083 646 579 124
Other movements (790 481) 58 331
Changes in working capital:
Inventories 12 912 646 (13 260 772)
Trade and other receivables (34 899 139) 28 495 810
Trade and other payables 25 040 123 5 139 555
27 456 942 56 325 816
Net debt reconciliation
Figures in United States Dollars (US$) FY2024 FY2023
(Restated)
Net debt comprises the following:
Revolving and general banking facilities (23 311 917) (17 942 739)
Cash and cash equivalents 19 322 995 15 948 656
Borrowings (4 751 055) -
Lease liabilities (3 182 158) (30 570)
Net Debt (11 922 135) (2 024 653)
Debt interest rate profile
Debt at fixed interest rates (4 751 055) -
Debt at variable interest rates (26 494 075) (17 973 309)
(31 245 130) (17 973 309)
Liabilities from financing activities Banking facilities Total
Borrowings Leases Sub-total
Debt as at 01 July 2022 (Restated) - (492 557) (492 557) (10 725 592) (11 218 149)
Cash flows
- New funding - - - (3 824 185) (3 824 185)
- Repayment (Capital) - 390 717 390 717 - 390 717
- Repayment (Interest) - 37 828 37 828 931 327 969 155
Realised foreign exchange differences - 10 655 10 655 (3 181 783) (3 171 128)
Other movements - 22 787 22 787 (1 142 506) (1 119 719)
Debt as at 30 June 2023 (Restated) - (30 570) (30 570) (17 942 739) (17 973 309)
Cash flows
- New funding (4 728 121) - (4 728 121) (5 066 107) (9 794 228)
- Repayment (Capital) - 634 175 634 175 - 634 175
- Repayment (Interest) 77 615 391 759 469 374 1 960 616 2 429 990
New leases - (3 642 129) (3 642 129) - (3 642 129)
Realised foreign exchange differences (100 549) (133 048) (233 597) (1 797 925) (2 031 522)
Other movements - (402 345) (402 345) (465 762) (868 107)
Debt as at 30 June 2024 (4 751 055) (3 182 158) (7 933 213) (23 311 917) (31 245 130)
10. Banking Facilities
Figures in United States Dollars
(US$)
FY2024 FY2023
(Restated)
Revolving credit facilities - ABSA Bank Limited 21 650 754 17 942 738
Jubilee has a revolving credit facility (RCF) with ABSA Bank (South Africa)
Limited in the amount of US$16.5million.
The RCF is secured as follows:
· PLC corporate guarantee security
cession and pledge over the issued capital and assets of certain South African
Jubilee subsidiaries.
· Parent Shareholder Pledge and Cession
from Jubilee including all shareholder loan claims and related rights.
· General Notarial Bond registered over
relevant assets of Windsor SA, a wholly owned subsidiary of Jubilee.
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 rate at the
aggregate of JIBAR plus a margin of 2.8%. At the period end the RCF was fully
drawn. Interest in an amount of US$1.7 million (FY2023: US$1.2 million) was
charged to profit or loss for the period under review.
At the period end, Jubilee had a revolving credit facility with ABSA Bank
(Mauritius) Limited in the amount of US$5 million. The RCF is secured by a
parent corporate guarantee, no pledge and subordination 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 JIBAR plus a margin
of 2.3%. The facility is used to fund working capital requirements for
Jubilee's Zambian copper operations. At the period end Jubilee has drawn
down US$5 million. Interest in an amount of US$ 0.39 million (FY2023: US$ 0.24
million) was charged to profit or loss for the period under review. Post the
period end the RCF was increased to US$7.5 million on the same terms and
conditions for a further 12 months from 9 July 2024.
General Banking Facility - First Rand Bank Limited 1 661 163 -
On 6 June 2024, Jubilee through its wholly owned subsidiary Jubilee Treasury
Management Services, entered into a general banking facility agreement (GBF)
with First Rand Bank Limited. The agreement includes:
· A demand overdraft facility of US$11 million
with a 12-month tenure from the available date of 6 June 2024 and subject to
terms and conditions normal for this type of facility;
· A US$3.3 million commodity hedging facility
subject to terms and conditions normal for this type of facility;
· A US$5.0 million facility for forward exchange
contracts subject to terms and conditions normal for this type of facility.
The GBF is used to provide general banking treasury services to the Group
companies to simplify banking relationships and to consolidate facilities.
Interest of US$8 902 (FY2023: US$ Nil) on the demand overdraft facility was
recognised in profit or loss for the period under review. The total GBF is
subject to a guarantee in favour of First Rand Bank Limited by Jubilee.
Interest is payable at First Rand Bank Limited's prime overdraft rate minus 45
basis points.
Total Banking Facilities 23 311 917 17 942 738
Financial covenants
The financial covenants listed below are in place for the following
facilities:
· The net debt-to-equity ratio must be
less than 1.8:1 - ABSA facilities (revised to 2.25:1 post the period under
review)
· The net debt-to-equity ratio must be
less than 3:1 - RMB facilities
· The interest cover ratio must be
greater than 4 times - ABSA facilities.
The financial covenants for the reporting period were met.
11. Business Combination
On 1 November 2023, Jubilee, through its subsidiary Sable Zinc Kabwe, entered
into an agreement to acquire 95% of the issued share capital of Munkoyo Mining
Limited (Munkoyo) for a total consideration of US$1.75 million. The
acquisition concluded on 28 June 2024 and is classified as a business
combination under IFRS 3 Business Combinations and is expected to enhance the
supply of copper ore to the Sable Refinery, thereby securing feedstock for
processing operations.
The total consideration for the acquisition was structured as follows:
· US$250 000 paid on 1 November 2023.
· On 28 June 2024, Jubilee exercised its option to
finalise the acquisition by issuing 15 096 798 new Jubilee shares valued at
US$1.5 million. The shares were issued at 7.81 pence per share, calculated
based on the 30-day volume-weighted average price preceding the issuance date.
Of the 15 096 798 shares issued, 1 509 680 shares (representing 10% of the
total) are subject to a 24-month lock-in period from the date of issuance.
No goodwill has been recognised as part of this transaction, as the
consideration paid was equal to the provisional fair value of the net assets
acquired. The non-controlling interest (NCI) in Munkoyo has been measured at
the proportionate share of the net identifiable assets at the acquisition
date, amounting to US$90 562.
The transaction has been accounted for as a business combination in accordance
with IFRS 3. The identifiable assets acquired, and liabilities assumed have
been recognised at their provisional fair values as of the acquisition date.
The fair value adjustments primarily relate to the recognition of intangible
assets associated with the mining rights and the corresponding deferred tax
liabilities. No significant subsequent events related to the business
combination have been identified between the acquisition date and the
reporting date. Management is actively working to conclude the accounting for
the business combination and expects to complete the purchase price allocation
within 6 months from the acquisition date, in accordance with IFRS 3
requirements.
The following table summarises the recognised amounts of assets acquired at
the date of acquisition:
Figures in United States Dollars (US$)
FY2024
FY2023
Assets acquired
Intangible asset 2 629 374 -
Deferred tax (788 812) -
Carrying value of the assets acquired 1 840 562 -
Non-controlling interest (90 562) -
Fair value of assets acquired 1 750 000 -
Fair value of the consideration
- Cash payments (250 000) -
- Through the issue of the Acquisition Shares (1 500 000) -
- -
12. Business segments
Segment information is presented as follows:
· Copper and cobalt - the processing of Copper and Cobalt
containing materials;
· PGM and chrome - the processing of PGM and chrome containing
materials; and
· Other - Exploration and corporate overheads
The Group's operations span over 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.
FY2024
Copper and PGM and chrome
Figures in United States Dollars (US$) Cobalt Other Total
Total Assets 122 695 645 216 922 207 74 343 208 413 961 060
Total Liabilities 33 975 735 106 043 041 14 978 567 154 997 343
Revenue 18 487 721 186 916 457 - 205 404 178
Gross Profit 7 089 254 28 889 813 - 35 979 067
Depreciation and Amortisation (1 438 159) (10 330 130) (524 807) (12 293 096)
Operating Expenses (3 532 516) (4 323 888) (4 044 202) (11 900 606)
Operating Profit 2 118 579 14 235 795 (4 569 009) 11 785 365
Investment revenue - 888 842 1 161 634 2 050 476
Fair value adjustments 3 549 567 - 90 037 3 639 604
Net Finance costs (1 486 893) (7 022 097) (324 095) (8 833 085)
Profit before taxation 4 181 253 8 102 540 (3 641 433) 8 642 360
Taxation 887 030 (2 998 716) (142 770) (2 254 456)
Profit after Taxation 5 068 283 5 103 824 (3 784 203) 6 387 904
EBITDA 7 106 305 24 565 926 (3 954 166) 27 718 065
Capital expenditure 15 290 810 13 769 914 - 29 060 724
Intangible expenditure 1 782 606 7 896 466 122 200 9 801 272
FY2023 (Restated)
Copper and PGM and
Figures in United States Dollars (US$) Cobalt chrome Other Total
Total Assets 127 449 866 177 832 411 74 790 209 380 072 486
Total Liabilities 42 097 686 70 809 745 7 984 325 120 891 756
Revenue 20 322 090 150 578 887 - 170 900 977
Gross Profit 5 893 516 31 905 498 - 37 799 014
Depreciation and Amortisation (2 087 686) (8 219 714) (471 510) (10 778 910)
Operating Expenses (3 868 537) (1 048 517) (3 417 270) (8 334 324)
Operating Profit (62 707) 22 637 267 (3 888 780) 18 685 780
Investment revenue - 915 197 1 029 264 1 944 461
Fair value adjustments - - 377 184 377 184
Net Finance costs (1 057 100) (5 161 847) - (6 218 947)
Profit before taxation (1 119 807) 18 390 617 (2482332) 14 788 478
Taxation 1 365 125 (379 112) (157 438) 828 575
Profit after taxation 245 318 18 011 505 (2 639 770) 15 617 053
EBITDA 2 049 713 30 832 263 (3 040 103) 29 841 873
Capital expenditure 34 876 701 18 065 089 - 52 941 790
Intangible expenditure 2 398 022 8 433 030 298 589 11 124 641
13. Commitments
The Group had no material contingent liabilities in the current or prior
reporting period. The Group had contracted outstanding open orders at period
end of US$8.1 million. Outstanding orders in the current reporting period
related primarily to the Roan front-end module construction.
The Group had the following parent guarantees in place at the period end:
· US$37.0 million in favour of Tennant Metals Corporation
for metal trade financing facilities;
· US$22.5 million in favour of ABSA Bank Limited for
revolving credit facilities (Note 10); and
· US$11.0 million in favour of First Rand Bank Limited for
general banking facilities (Note 10).
Operating lease commitments, which fall due within the next financial year,
amounted to US$3.2 million (FY2023: US$0.03 million).
14. Going concern
The Group closely monitors and manages its liquidity risk though cash flow
forecasts and assessing sensitivities run for different scenarios including,
but not limited to, changes in commodity and metal prices and different
production profiles from the Group's business units. The Group had US$9.1
million (FY2023: US$2.5 million) of available debt facilities and US$19.3
million (FY2023: US$15.9 million) of cash and cash equivalents at 30 June
2024. Refer to note 10 for details of the Group's banking facilities. The
Group meets its day‐to‐day working capital requirements through cash
generated from operations and trade finance facilities.
The Group has considered the going concern forecast through to 31 December
2026, using a reasonable downside forecast assumptions on commodity and metal
prices of Copper US$8 370, chrome 40%-42% of US$284/t and a PGM net basket
price of US$924/oz.
The Group's forecast highlights that it will have sufficient liquidity
headroom to meet its obligations, under both scenarios, in the ordinary course
of business and will comply with financial covenants for the 12 months from
the date of approval of the financial statements; in the reasonable downside
case, this includes mitigating actions which are within management's control.
The board has a reasonable expectation that the Group has adequate resources
to continue in operational existence for the foreseeable future. Accordingly,
the Group continues to adopt the going concern basis of accounting in
preparation of the 30 June 2024 financial statements.
15. Events after the reporting period
15.1 Revolving Credit Facility - ABSA Bank Limited - South Africa
Post the period under review, during August 2024, the Company renewed its
revolving credit facility in an amount of US$16 million with ABSA Bank Limited
- South Africa.
The RCF is secured as follows:
• PLC corporate guarantee security cession and
pledge over the issued capital and assets of certain South African Jubilee
subsidiaries.
• Parent Shareholder Pledge and Cession from Jubilee
including all shareholder loan claims and related rights.
• General Notarial Bond registered over relevant
assets of Winsor SA, a wholly owned subsidiary of Jubilee.
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 rate at the
aggregate of JIBAR plus a margin of 2.8%. At the period end the RCF was fully
drawn. Interest in an amount of US$1.7 million (FY2023: US$1.2 million) was
charged to profit or loss for the period under review.
15.2 Revolving Credit Facility - ABSA Bank Limited - Mauritius
Jubilee, through its wholly owned subsidiary Braemore Holdings Mauritius (Pty)
Ltd, secured a revolving credit facility with ABSA BANK (MAURITIUS) LIMITED in
the amount of US$5 million. The RCF is secured by a parent corporate
guarantee, no pledge and subordination 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 JIBAR plus a margin of 2.3%. The facility is
used to fund working capital requirements for Jubilee's Zambian copper
operations. At the period end Jubilee has drawn down US$5.0 million. Interest
in an amount of US$0.39 million (FY2023: US$ 0.24 million) was charged to
profit or loss for the period under review. Post year-end the RCF was
increased to US$7.5 million on the same terms and conditions for a further 12
months from 9 July 2024.
Annexure A
Headline Earnings
Headline earnings per share (HEPS) is calculated using the weighted average
number of shares in issue during the period under review and is based on
earnings attributable to ordinary shareholders, after excluding those items as
required by Circular 1/2023 issued by the South African Institute of Chartered
Accountants (SAICA). In compliance with paragraph 18.19 (c) of the JSE
Listings Requirements the table below represents the Group's Headline
earnings, and a reconciliation between the Group's reported earnings and
headline earnings used in the calculation of headline earnings per share:
Reconciliation of headline earnings per share
FY2024 FY2023 (Restated)
Figures in United States Dollars (US$) Gross Net Gross Net
Earnings for the period attributable to ordinary shareholders 5 954 898 - 15 549 940
Fair value adjustments (3 639 604) (3 639 604) (377 184) (377 184)
Headline earnings from continuing operations 2 315 294 15 172 756
Weighted average number of shares in issue 2 856 010 000 2 687 683 403
Diluted weighted average number of shares in issue 2 927 067 955 2 733 244 093
Headline earnings per share from continuing operations (US$ cents) 0.08 0.56
Headline earnings per share from continuing operations (ZAR cents) 1.52 10.02
Diluted headline earnings per share from continuing operations (US$ cents) 0.08 0.56
Diluted headline earnings per share from continuing operations (ZAR cents) 1.48 10.34
Average conversion rate used for the period under review ZAR:US$ 18.70 18.63
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