REG - Jubilee Metals Group - Final Results and Notice of AGM
11/10/2023 07:15
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RNS Number : 7633P Jubilee Metals Group PLC 11 October 2023
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 2023
Notice of Annual General Meeting
Integrated Annual Report
Jubilee Metals Group PLC (AIM: JLP/Altx: JBL), a diversified leader in metals
processing with operations in Africa, is pleased to announce its audited
results for the year ended 30 June 2023 ("FY2023"). Today, Jubilee is also
publishing, its Integrated Annual Report.
Jubilee has delivered a strong operational performance which has assisted in
buffering some of the challenging market conditions, brought on by a
fast-depreciating PGM basket price and infrastructural challenges in both
operating jurisdictions. The operational performance served to demonstrate
Jubilee's ability to challenge industry norms by breaking through technical
barriers and implementing solutions that extract value from materials and ore
sources that were previously regarded by others as waste or too complex.
Key milestones and achievements for the year
· Record production figures across our PGM, chrome and copper
operations with 42 433 PGM oz (exceeding guidance and up 2% year-on-year)
1 289 890 chrome concentrate tonnes (up 7%) and 2 923 copper tonnes (up 29%).
· Successfully implemented an investment programme of £36
million (FY2022: £58 million) equivalent to US$44 million (FY2022: US$70
million) to diversify and expand our operations in chrome, PGM, copper and
cobalt.
· Commissioned a state-of-the-art expanded PGM processing
facility, designed to process PGM tailings and ores, previously regarded as
waste. This versatile facility boasts an annual production capacity of 44 000
oz of PGMs.
· Further expanded the chrome operational footprint through the
implementation of a long-term chrome ROM offtake agreement offering increased
chrome margins capable of offsetting the lower PGM margins.
· In South Africa, to address the infrastructure challenges, we
initiated the installation of backup power units at our chrome facilities and
managed stock levels to ensure continuous operations.
· In Zambia, we achieved significant advancements by
formulating breakthrough process flow sheets for the treatment of mixed and
transitional copper reefs as part of our 14 000 tonnes per annum Southern
copper strategy. These breakthroughs form part of the process flowsheet
upgrade at Roan currently underway.
· The upgraded flowsheet offers significant lower capital
expansion opportunities within Zambia.
· The technical team is in the process of innovating a copper
waste leach circuit for the treatment of copper and cobalt tailings, as part
of our Northern Refining copper strategy. The development phase has commenced
with upscaled continuous pilot runs to confirm the encouraging results
achieved to date.
· Effectively addressed the infrastructure issues associated
with the new Roan Concentrator. A modern water infrastructure system was
completed in December 2022, followed by an enhanced power infrastructure
finalised in February 2023.
Financial highlights
· Revenue from operations increased by 1% to £142 million
(FY2022: £140 million) equating to US$171 million (FY2022: US$186 million)
with growth in US$ chrome revenue predominately offsetting the market driven
decrease in PGM revenue.
· Gross profit was lower at £31 million (FY2022: £45 million)
equivalent to US$38 million (FY2022: US$60 million) impacted mainly by:
o Lower average PGM basket prices year-on-year decreasing by 22% to
US$1 262 (FY2022: US$1 615)
o Increase of 11% in US$ operating cost per PGM oz driven mainly by the
increase in power and logistic costs
o Initial decrease during H1 FY2023 in chrome margins mainly due to power
constraints which was addressed through the roll-out of back-up power systems
o Decrease in copper revenue per tonne of 19% to US$7 451 (FY2022:
US$9 210)
o Continued expected growth of the chrome operations offering the
potential to offset lower PGM margins
· EBITDA decreased to £24.8 million (FY2022: £36.8million) or
US$29.8 million (FY2022: US$48.9 million).
· Cash from operating activities was supported by increased
contribution from operational expansions and remained strong at £31 million
(FY2022: £35 million) equivalent to US$37 million (FY2022:US$42 million).
· The Group's earnings per share decreased by 35% to 0.48 pence
(FY2022: 0.73 pence), as a result of the weighted average number of shares
increasing by 9% to 2 687.7 million shares (FY2022: 2 455.5 million shares)
predominately due to the exercise of warrants during the financial year and
earnings attributable to owners of the parent decreasing by 28% to £12.9
million (FY2022: £18.0 million) or US$15.5 million (FY2022: US$24.0million).
· Group cash and cash equivalents at 30 June 2023 of
£12.5million (FY2022: £16 million) or US$15.9 million (FY2022 US$19.5
million).
· A robust net cash position supporting the Group's current
assets to cover total liabilities by 103% (FY2022: 131%).
· The Group's equity reduced marginally to £205 million
(FY2022: £207 million), predominately due to the profit after taxation
off-set by the movement in the foreign currency translation reserve as a
result of the weakening ZAR and ZMW against the pound during the period under
review. The Group continues to maintain a strong equity ratio of 68% (FY2022:
71%).
Project and operational highlights
South Africa
· In FY2023, our South African operations achieved 177 days
without any Lost Time Injuries (LTIs), compared to 162 days in FY2022. This
translates to a consistent LTIFR rate of 1.5, mirroring our previous year's
performance.
o The company was saddened by the loss of life suffered by a service
provider to our operations earlier in the year.
· PGM oz sold increased by 2% to 42 433 oz (FY2022: 41 586 oz),
exceeding full year guidance of 38 000 oz.
· Chrome tonnes sold increased by 4% to 1 275 287 tonnes
(FY2022: 1 222 452 tonnes) exceeding full year guidance of 1 200 000 tonnes.
· Net cost per PGM oz net of chrome credits of US$508
(FY2022:US$408), remaining firmly as one of the lowest cost producers of PGMs.
· South African operations have reached stable production
meeting the market guidance and offering significant growth opportunities.
· On 6 June 2023, we proudly announced a significant, long-term
processing partnership. This collaboration increases our chrome ore processing
capacity by 360 000 tonnes annually offering the potential to produce an
additional 160 000 tonnes of chrome concentrate per annum at improved margins
together with an associated feed to our PGM operations of 10 000 PGM ounces.
The move into higher margin chrome offtakes offers Jubilee:
o The opportunity to obtain greater exposure to the chrome price and achieve
higher margins compared with the existing fixed price chrome tolling
agreements;
o The option to further expand the partnership to expand the processing
capacity to 720 000 tonnes per annum of chrome ore;
o The opportunity of additional expansion opportunities leveraging Jubilee's
proven chrome efficiency capability, setting a target annualised chrome
concentrate production rate of 2 million tonnes (60% expansion) over the next
two years further strengthening Jubilee's position as one of the largest
chrome producers globally.
Zambia
· Zambian operations sustained a robust safety performance,
achieving 122 LTI free days (FY2022: 185 LTI free days), and commensurately
realising a reduction in the LTIFR to 2.4 (FY2022: 2.9).
· Successfully mitigated power and water disruptions by
completing a new, privately-owned water infrastructure in December 2022 and
augmenting the power infrastructure in February 2023.
· Copper production improved by 29% to 2 923 tonnes (FY2022: 2
269 tonnes), marginally below the Group's revised guidance of 3 000 tonnes
primarily due to previously announced power and water disruptions in Zambia,
impacting the ramp-up of the Roan Concentrator.
· Decision taken to further upgrade the Roan concentrator to
implement new technical advances and address lessons learnt in the processing
of weathered and transitional copper ores. The expansion and upgrade of Roan
has commenced and is expected to be completed during Q2 FY 2024.
· Jubilee successfully developed a breakthrough process flow
sheet for the treatment of mixed and transitional copper reefs as part of our
14 000 tonnes per annum Southern copper strategy.
· This modular flowsheet development offers the potential to
unlock numerous transitional copper ore opportunities in Zambia at a
significantly reduced capital investment per opportunity.
· The Northern Copper Strategy continues to progress with the
development phase entering upscaled continuous pilot trials to confirm results
achieved to date. If successful, Jubilee believes this would solve the
technical barrier to unlock the recovery of copper and cobalt from the vast
quantity of copper tailings at surface in Zambia.
Financial highlights
South Africa
· Net revenue from our South African operations for FY2023
increased to £125 million (FY2022: £121million) up 3% from FY2022,
equivalent to US$151 million (FY2022: US$162 million).
· Gross profit from South African operations for FY2023 reached
£27 million (US$32 million) down 30% from FY2022 maintaining a healthy of 21%
despite a 22% decline in the PGM US$ revenue per oz and external operating
cost drivers of power and logistics.
· Chrome earnings margin of 12% (FY2022:13%) despite a rise in
operating costs of 10% to £56/t (FY2022: £51/t). Operating costs in US$
terms remained consistent year-on-year.
· PGM cost per oz US$508 (FY2022: US$408) net of chrome credits
driven higher mainly by cost of power and reliance on back-up power.
Zambia
· Net revenue from Zambian operations decreased by 8% driven by
sifter market prices to £17 million (FY2022: £18 million) equivalent to
US$20 million (FY2022: US$24 million) for the year.
· Gross profit from Zambian operations decreased by 35% to £5
million (FY2022: £8 million) and in US$ terms US$ 7.5 million (FY2022: US$10
million) for the year.
· Copper unit cost per tonne down 2% to US$5 281 (FY2022:
US$5 386).
· Total capital investment to date to deliver the integrated
Southern Copper Refining Strategy of £63 million (US$74 million) which
includes the integrated Sable Copper and Cobalt Refinery and the Roan
Concentrator.
Prospects for FY2024
SOUTH AFRICA
· FY2024 offers the potential for growth in earnings as it
benefits from the expansion drive into high margin chrome operations at a time
when the market is experiencing strong demand for chrome products:
o An additional 60 000 tonnes of higher margin chrome concentrate is
targeted for the first 6 months of FY2024 (150 000 tonnes over the full
period) reaching an additional 15 000 tonnes per month at stable production.
o The production of chrome forms a critical part of the South African
business' profitability and cost competitiveness. Jubilee will continue to
expand its chrome operational footprint on attractive, market-linked terms
during the period.
· The Company confirms its guidance of achieving 1.45 million
tonnes of chrome concentrate for FY 2024.
· The Company will seek to incrementally expand its PGM
production footprint to match the growing demand from the expansion of the
chrome operations.
· Considering the prevailing PGM basket prices, the Company has
opted to prioritise enhancing the efficiency of existing PGM capacity. We are
also assessing potential Joint Ventures to accommodate additional PGM feed
materials, which presents a cost-effective PGM expansion option for the Group.
As part of this decision the construction of a new PGM facility in the eastern
limb of South Africa has been placed under review.
· The Company confirms its guidance of 42 000 PGM ounces for
FY2024.
Zambia
· The Southern Copper strategy targets the processing of
weathered and transitional copper reefs traditionally discarded as waste.
o Jubilee developed breakthrough modular circuit designs targeting the
recovery of copper from these reefs;
o Modular circuit design offers potential for rapid deployment based on
learnings from the South African operations;
o Modules range from 15 000 to 50 000 tonnes per month processing capacity
at lower capital of US$2.5 million for a 15 000 tonnes per month module;
o Modules targeted as part of Roan upgrade with two further modules
considered under current long term offtake agreements being negotiated.
· The Company confirms its guidance of 5 850 tonnes of copper
for FY 2024 which is impacted by the upgrade at Project Roan.
· As part of the development of the Northern Copper strategy,
upscaled continuous process trials have commenced to both confirm the results
achieved to date as well as the process flow sheet assumptions. The
continuous trials will run over an extended period of approximately 10 weeks
to ensure the accuracy of the results.
Leon Coetzer, CEO, commented: "I am pleased to report another year of
significant growth at Jubilee in which we have demonstrated our ability to
navigate through some challenging infrastructure conditions. The company
successfully countered the sharp drop in the PGM basket price by expanding its
chrome operations into higher-margin offtake agreements, resulting in a robust
net cash position and strong cash generation. Investments in power
infrastructure in South Africa and Zambia were crucial in addressing power
outages and stabilizing supply, while a new private water infrastructure
investment resolved disruptions issues at the Roan operations.
"This year-on-year improved production performance reflects the company's
ongoing investment strategy in expansion opportunities, with a belief in
continued positive results in the short and medium term. The organisation
remains committed to challenging itself to improve operational efficiencies,
embodying what they refer to as the "Jubilee Way."
"In South Africa, our operations continue maintain its status as one of the
lowest cost PGM producers and our commitment to safety is evident with 177
days without any Lost Time Injuries. New processing partnerships announced in
the year are expected to significantly enhance margins and processing
capacities. Jubilee is also poised for growth in Zambia, investing further in
our new copper division including upgrading our Roan Concentrator to boost
copper output. Technical breakthroughs from the development centre offer
substantial near-term growth opportunities in Zambia.
"In conclusion, the success of Jubilee can be attributed to the unwavering
dedication of our employees, strategic investments, and agility in addressing
challenges. The company remains committed to delivering value to stakeholders
and strengthening our market position, and I continue to have every confidence
our investments will generate significant returns for shareholders in the
short and long term."
GROUP KEY PERFORMANCE INDICATORS
% change FY2022 FY2023 FY2023 FY2022 % change
Unit GROUP KEY UNITS OF PRODUCTION Unit
PGM ounces sold
(5%) 35 318 33 376 Oz - Inyoni Oz 33 376 35 318 (5%)
44% 6 268 9 057 Oz - Third party JV Oz 9 057 6 268 44%
2% 41 586 42 433 Oz Total PGM ounces sold Oz 42 433 41 586 2%
29% 2 604 2 923 Tonne Copper tonnes sold Tonne 2 923 2 604 29%
UNIT REVENUE
(22%) 1 615 1 262 $/oz Revenue per PGM ounce £/oz 1 048 1 215 (14%)
(19%) 9 210 7 451 $/t Revenue per copper tonne £/t 6 187 7 047 (12%)
UNIT COSTS
24% 408 508 $/oz Net cost per PGM ounce (after by-product credits chrome) £/oz 422 305 38%
(2%) 5 386 5 281 $/t Net cost per copper tonne (after by-product credits cobalt) £/t 4 385 4 165 5%
UNIT EARNINGS
(38%) 1 207 754 $/oz Net earnings per PGM ounce £/oz 627 910 (31%)
(43%) 3 824 2 171 $/t Net earnings per copper tonne £/t 1 802 2 882 (37%)
GROUP KEY FINANCIAL INDICATORS
(1%) 37 643 497 37 443 796 US$ Capital spend £ 47 409 212 30 993 020 53%
(10%) 41 276 419 37 336 216 US$ Cashflow from operating activities £ 31 006 607 31 005 195 0%
(8%) 186 387 702 170 901 624 US$ Revenue £ 141 928 672 140 006 986 1%
(39%) 48 955 819 29 841 994 US$ EBITDA £ 24 782 880 36 773 653 (33%)
(2%) 5.90 5.77 US cent Tangible net asset value per ordinary share (pence) pence 4.56 4.86 (6%)
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 2023 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 3 November 2023 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 2023, 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 29 September 2023
(SA)
Notice of AGM posted to shareholders 11 October 2023
Last date to trade in order to be eligible to participate in and vote at the 27 October 2023
AGM (SA)
Record Date for the purposes of determining which shareholders are entitled to
participate in and vote at the AGM (UK)
1 November 2023
Record date for purpose of determining which shareholders are entitled to
participate and vote at the AGM (SA)
1 November 2023
Latest time and date for receipt of CREST Proxy Instruction and other
uncertificated instructions (UK)
11:00 am (UK time) 1 November 2023
Latest time and date for receipt of dematerialised holding instruction and
other uncertified instructions (SA) 1 pm (SA time) 1 November 2023
Annual General Meeting 11:00 a.m. (UK time) 03 November 2023
Results of the Annual General Meeting released on RNS and SENS 03 November 2023
Integrated Annual Report
The Integrated Annual Report for the year ended 30 June 2023 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.
11 October 2023
For further information visit www.jubileemetalsgroup.com
(http://www.jubileemetalsgroup.com/) or contact:
Jubilee Metals Group PLC Tel: +27 (0) 11 465 1913
Leon Coetzer
PR & IR Adviser - Tavistock Tel: +44 (0) 20 7920 3150
Jos Simson/ Gareth Tredway
Nominated Adviser - SPARK Advisory Partners Limited Tel: +44 (0) 20 3368 3555
Andrew Emmott/ James Keeshan
Joint Broker - Berenberg Tel: +44 (0) 20 3207 7800
Matthew Armitt/ Jennifer Lee/ Detlir Elezi
Joint Broker - WHIreland Tel: +44 (0) 20 7220 1670/
Harry Ansell/ Katy Mitchell +44 (0) 113 394 6618
JSE Sponsor - Questco Corporate Advisory Pty Ltd Tel: +27 (0) 11 011 9207
Alison McLaren
GROUP ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
Group statements of financial position at 30 June 2023
Figures in Pound Sterling 2023 2022
Assets
Non-current assets
Property, plant and equipment 88 696 783 69 875 918
Intangible assets 79 883 128 78 466 341
Other financial assets 14 138 325 15 283 501
Inventories 13 505 677 12 506 751
Deferred tax 5 930 084 4 345 508
202 153 997 180 478 019
Current assets
Other financial assets 338 077 701 808
Inventories 35 664 792 27 736 150
Tax assets 695 422 990 746
Trade and other receivables 29 680 525 48 820 613
Contract assets 19 009 089 18 875 946
Cash and cash equivalents 12 596 183 16 017 944
97 984 088 113 143 207
Total assets 300 138 085 293 621 226
Equity and liabilities
Equity attributable to equity holders of parent
Share capital and share premium 3 161 119 978 155 538 672
Reserves 2 608 390 23 503 904
Accumulated profit 37 716 975 24 803 165
201 445 343 203 845 741
Non-controlling interest 3 212 940 3 710 249
204 658 283 207 555 990
Liabilities
Non-current liabilities
Other financial liabilities 2 803 434 2 803 434
Lease liabilities 24 144 359 665
Deferred tax liability 13 852 052 18 221 132
Provisions 937 613 929 398
17 617 243 22 313 629
Current liabilities
Other financial liabilities - 1 035
Trade and other payables 59 639 629 52 632 003
Revolving credit facility 14 171 100 8 471 028
Current tax liabilities 4 051 830 2 647 541
77 862 559 63 751 607
Total liabilities 95 479 802 86 065 236
Total equity and liabilities 300 138 085 293 621 226
Group statements of comprehensive income for the year ended 30 June 2023
Figures in Pound Sterling 2023 2022
Revenue 141 928 672 140 006 986
Cost of sales (110 537 605) (94 669 908)
Gross profit 31 391 067 45 337 078
Operating expenses (15 873 028) (19 693 753)
Operating profit 15 518 039 25 643 325
Investment revenue 1 614 824 1 400 599
Fair value adjustments 313 241 913 929
Finance costs (5 164 668) (1 445 307)
Share of loss from associate - (6 505)
Profit before taxation 12 281 436 26 506 041
Taxation 688 109 (8 133 615)
Profit for the year 12 969 545 18 372 426
Profit for the year attributable to:
Owners of the parent 12 913 810 18 037 001
Non-controlling interest 55 735 335 425
12 969 545 18 372 426
Earnings per share (pence) 2 0.48 0.73
Diluted earnings per share (pence) 2 0.47 0.70
Reconciliation of other comprehensive income:
Profit for the year 12 969 545 18 372 426
Other comprehensive income:
Exchange differences on translation foreign operations (20 866 371) 16 810 787
Taxation related to components of other comprehensive income - (168 048)
Total comprehensive income (7 896 826) 35 015 165
Total comprehensive income attributable to:
Owners of the parent (7 399 517) 34 467 442
Non-controlling interest (497 309) 547 723
(7 896 826) 35 015 165
Group statements of changes in equity as at 30 June 2023
Figures in Pound Sterling Share capital and share premium Convertible Total attributable to equity holders of the Company Total equity
Share- based payment reserve notes reserve Total reserves
Foreign currency Translation (Accumulated
reserve Loss)/ retained earnings NCI
Merger reserve
Group
Balance at 30 June 2021 120 013 188 (19 482 063) 23 184 000 2 707 928 203 040 6 612 905 6 753 964 133 380 054 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 expired 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
Changes in equity
Profit for the year - - - - - - 12 913 810 12 913 810 (497 309) 12 416 501
Other comprehensive income - (20 313 293) - - - (20 313 293) - (20 313 293) - (20 313 293)
Total comprehensive income for the year - (20 313 293) - - - (20 313 293) 12 913 810 (7 399 483) (497 309) (7 896 792)
Issue of share capital net of costs 4 563 360 - - - - - - 4 563 360 - 4 563 360
Share warrants exercised 935 414 - - (935 414) - (935 414) - - - -
Share options exercised/lapsed 82 532 - - (82 532) - (82 532) - - - -
Share options issued - - - 435 725 - 435 725 - 435 725 - 435 725
Total changes 5 581 306 (20 313 293) - (582 221) - (20 895 514) 12 913 810 (2 400 398) (497 309) (2 897 707)
Balance at 30 June 2023 161 119 978 (23 364 949) 23 184 000 2 789 339 - 2 608 390 37 716 975 201 445 342 3 212 940 204 658 281
Note: 3
Group statements of cash flow as at 30 June 2023
Figures in Pound Sterling 2023 2022
Cash flows from operating activities
Cash generated from operations 36 523 227 34 901 495
Interest income 1 614 824 1 400 599
Finance costs (5 164 668) (1 445 307)
Taxation paid (1 966 776) (3 851 592)
Net cash from operating activities 31 006 607 31 005 195
Cash flows from investing activities
Purchase of property, plant and equipment (33 782 332) (36 451 781)
Sale of property, plant and equipment 28 236 -
Purchase of intangible assets (9 129 681) (15 662 685)
Purchase of non-current inventories (998 926) (12 506 751)
Net cash from investing activities (43 882 703) (64 621 217)
Cash flows from financing activities
Net proceeds on share issues 4 563 360 35 129 124
Proceeds from revolving credit facilities 5 700 072 4 631 802
Increase in loans to joint ventures 39 644 (6 933 571)
Decrease in other financial liabilities (1 035) (4 062 392)
Lease payments (335 521) (588 317)
Net cash from financing activities 9 966 520 28 176 646
Total cash movement for the year (2 909 576) (5 439 376)
Total cash at the beginning of the year 16 017 944 19 643 047
Effect of exchange rate movement on cash balances (512 185) 1 814 272
Total cash at end of the year 12 596 183 16 017 944
Notes to the Group financial statements for the year ended 30 June 2023
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 2023 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
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 2023 2022
Earnings attributable to ordinary equity holders of the parent (£) 12 913 810 18 037 001
Weighted average number of shares for basic earnings per share 2 687 683 403 2 455 458 009
Effect of dilutive potential ordinary shares
- Share options and warrants 45 560 690 123 943 501
Diluted weighted average number of shares for diluted earnings per share 2 733 244 093 2 579 401 510
Basic earnings per share (pence) 0.48 0.73
Diluted basic earnings per share (pence) 0.47 0.70
Total number of shares in issue at year end 2 738 129 981 2 657 051 370
Tangible net asset value (£) 124 775 155 136 618 835
Tangible net asset value per share (pence) 4.56 4.84
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 2023 2022
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 27 381 300 26 570 514
Share premium 133 738 678 128 968 158
Total issued capital 161 119 978 155 538 672
The Company issued the following ordinary shares during the period and as at
the date of this announcement:
Date issued Number of shares Issue price (pence) Purpose
Opening balance at 1 July 2022 2 657 051 370
07-Jul-22 25 000 6.12 Warrants
22-Jul-22 1 439 156 6.12 Warrants
01-Sep-22 8 509 713 6.12 Warrants
21-Sep-22 4 659 599 6.12 Warrants
21-Sep-22 2 500 000 3.38 Warrants
10-Nov-22 2 500 000 3.38 Warrants
24-Nov-22 4 659 599 6.12 Warrants
28-Nov-22 8 509 713 6.12 Warrants
21-Dec-22 5 000 000 3.38 Warrants
18-Jan-23 32 159 446 6.12 Warrants
23-Jan-23 366 385 0.06 Warrants
04-May-23 1 250 000 2.50 Options
04-May-23 1 000 000 4.00 Options
04-May-23 2 000 000 4.50 Options
04-May-23 3 500 000 5.50 Options
04-May-23 3 000 000 6.00 Options
2 738 129 981
During the year share transaction costs accounted for as a deduction from the
share premium account amounted to £Nil (FY2022 £1 385 214). The company
recognised a share-based payment expense in the share premium account in an
amount of £1 017 946 (
FY2022:
£193 320) 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 and as the last practicable date, the Company had the following
warrants outstanding:
Issue Share price at issue date
Issue Date Number of Price Expiry (pence)
warrants (pence) date
19 Nov 2019 7 818 750 4.00 19 Nov 2023 4.13
22 Jun 2020 750 000 3.40 22 Jun 2024 3.90
21 Jan 2021 4 036 431 13.00 21 Jan 2025 13.20
12 605 181
Reconciliation of the number of warrants in issue 2023
2022
Opening balance 86 267 125 86 267 125
Expired/exercised during the year (73 661 944) -
Closing balance 12 605 181 86 267 125
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.
2023
PGM and Chrome Copper and
Figures in Pound Sterling Cobalt Other Total
Total assets 140 451 298 100 659 374 59 027 411 300 138 083
Total liabilities 55 925 242 33 248 577 6 305 986 95 479 805
Revenue 125 051 722 16 876 950 - 141 928 672
Gross profit 26 496 660 4 894 407 - 31 391 067
Depreciation and amortisation (6 826 254) (1 733 769) (391 577) (8 951 600)
Operating expenses (870 765) (3 212 716) (2 837 949) (6 921 430)
Operating profit 18 799 641 (52 078) (3 229 526) 15 518 037
Investment revenue 760 047 - 854 777 1 614 824
Fair value - - 313 241 313 241
Net finance costs (4 286 774) (877 893) - (5 164 667)
Profit before taxation 15 272 914 (929 971) (2 061 508) 12 281 435
Taxation (314 842) 1 133 699 (130 748) 688 109
Profit after taxation 14 958 072 203 728 (2 192 256) 12 969 544
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 56 065 236
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
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 to 31 December 2024, 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 at least the
next twelve months from the date of approval of the financial statements.
The Group is adequately funded and has access to further facilities, which
together with contracts with several high-profile customers strengthen 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
The directors confirm that there have been no significant events affecting the
company since the end of the reporting period and up to the date of approval
of these financial statements that would require adjustments to or disclosure
in the financial statements.
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 2023 June 2022
Gross Net Gross Net
£'000 £'000 £'000 £'000
Earnings for the period attributable to ordinary shareholders 12 914 - 18 037
Share of impairment loss from equity accounted associate - - 6.5 5
Fair value adjustments (313) (313) (914) (914)
Headline earnings from continuing operations 12 601 17 128
Weighted average number of shares in issue ('000) 2 738 130 2 455 458
Diluted weighted average number of shares in issue ('000) 2 733 244 2 579 402
Headline earnings per share from continuing operations (pence) 0.46 0.70
Headline earnings per share from continuing operations (ZAR cents) 9.84 14.11
Diluted headline earnings per share from continuing operations (pence) 0.46 0.66
Diluted headline earnings per share from continuing operations (ZAR cents) 9.86 13.43
Average conversion rate used for the period under review £:ZAR 0.047 0.049
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