REG - Jubilee Metals Group - Interim Financial Report 6 months to December 2023
26/02/2024 07:00
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RNS Number : 4127E Jubilee Metals Group PLC 26 February 2024
Jubilee Metals Group PLC
Registration number: 4459850
Altx share code: JBL
AIM share code: JLP
ISIN: GB0031852162
(Jubilee or the Company or the Group)
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Unaudited interim financial report for the six months ended 31 December 2023
Jubilee, a leading diversified metals processor in Africa, with its expanding
copper operations and its substantial contribution to global chrome
concentrate production, has published its unaudited interim financial report
for the six months ended 31 December 2023 (H1 FY2024).
Highlights
§ Strong operational performance was delivered by the Group with increased
production across all operations delivering growth in revenue and earnings
§ Zambian copper operations continue to show strong growth, driven by the
investment in the expansion projects with an expected further sharp increase
on completion of the upgrade to the Roan copper concentrator (Roan)
§ Copper cathode and copper in concentrate (copper units) production
increased by 46.5% to 1 683 tonnes (t) (H1 FY2023: 1 149t)
§ Chrome concentrate production increased by 7.4% to 718 189t (H1 FY2023:
668 809t)
§ Platinum group metals (PGM) production increased by 11.2% to 20 244 ounces
(oz) (H1 FY2023: 18 208oz).
§ The Group invested £12.9 million (H1 FY2023: £30.1) in the expansion of
its copper and chrome operations
§ Group revenue increased by 18.4% to £74.7 million (H1 FY2023: £63.1
million) driven by increased production during the period
§ Group earnings before interest, tax, depreciation and amortisation (EBITDA)
increased by 13.6% to £11.7 million (H1 FY2023: £10.3 million)
§ Group profit after tax increased by 7.3% to £4.4 million (H1 FY2023: £4.1
million)
§ Earnings per share increased by 6.7% to 0.16 pence per share (H1 FY2023:
0.15 pence per share)
§ Successfully concluded an oversubscribed placing of £13 million before
costs at 5.5 pence per share on 4 January 2024 to mainly accelerate the copper
expansion drive
§ Partnered with Abu Dhabi's International Resources Holding RSC Limited
(IRH) to develop the 'Waste Rock Project' in Zambia, to process an approximate
260 million tonnes (Mt) of copper-containing waste rock with the intention of
closing the transaction mid-March
Statement from Leon Coetzer, Chief Executive Officer:
"The extent of our strong production performance, supported by the continued
expansion of our copper and chrome operations, was able to offset a
significant reduction in PGM metal prices to deliver growth in both revenue
and earnings.
In Zambia, where we are investing and growing production, copper output
improved by 46.5% despite the disruption caused by the implementation of the
ongoing Roan concentrator front-end upgrade project. As a reminder, this
project will allow Roan to process multiple feed sources of copper oxide and
sulphides simultaneously with a capacity of 13 000t per annum of copper
contained in copper concentrates. The timely completion of the Roan upgrade is
key towards achieving the copper guidance for the full period due to the
expected significant step-up in copper production this project brings. Initial
delays suffered due to international logistical constraints have been
addressed by reprioritising local production of key remaining components. The
Jubilee technical team continues to actively push the implementation
timelines.
At our Sable refinery, the expansion of the copper sulphide circuit is
underway to better accommodate the expected sharp increase in copper
production resulting from both our Roan operations and the development of the
Munkoyo copper resource project located near Sable.
The exciting partnership on the new waste rock deposit with Abu Dhabi's IRH,
announced in December, highlights our commitment to leveraging innovative,
cost-effective and environmentally sustainable mining solutions. This
initiative is poised to unlock significant value from one of Zambia's largest
copper waste rock assets, aligning with our dedication to responsible mining
practices.
Our South African operations, with stable production and incremental growth
plans, delivered an increase of 7.4% in chrome concentrates reaching in excess
of 718 000t over the six-month period, placing us well on track to meet and
exceed guidance. Our additional chrome expansion projects are underway with
the election to add further chrome processing modules to the Thutse operations
as we move closer to achieving our goal of 2 Mt tonnes per annum of chrome
concentrate. The PGM output as a by-product of the chrome operations further
improved processing efficiencies to increase production by 11.2% for the
period under review.
While unit costs increased in the period, largely as a result of the
processing of more own-sourced chrome feed material and higher logistics costs
for the PGM feeds, South Africa remains a stable, free cash flow-generating
base for the Group, capable of funding its own growth projects.
Environmental, social and corporate governance (ESG) efforts continue to be at
the forefront of our operations, with renewable energy in Zambia and the
roll-out of our Group safety management system providing incremental steps
towards sustainable mining in the locations where we operate."
Operational highlights
Zambia
§ Copper units produced increased by 46.5% to 1 683t (H1 FY2023: 1 149t).
The improved copper production was achieved despite the operational
disruptions at Roan as part of the ongoing front-end module upgrade project
which is set to significantly increase copper production during the remaining
half-year period
§ The safety performance in Zambia showed significant improvement, with the
lost time injury frequency rate (LTIFR) reducing to 0.61 (H1 FY2023: 2.9)
South Africa
§ Chrome production increased by 7.4% to 718 189t (H1 FY2023: 668 809t)
§ Chrome revenue per tonne increased by 36.4% to US$90/t (H1 FY2023:
US$66/t), supported by a strong chrome pricing environment and Jubilee's
strategy to process additional own-sourced material
§ Chrome cost per tonne increased by 19.7% to US$73/t (H1 FY2023: US$61/t),
as a result of purchasing and processing more own-sourced chrome feed material
§ PGM production increased by 11.2% to 20 244oz (H1 FY2023: 18 208oz)
§ PGM cost per ounce increased by 16.4% to US$895/oz (H1 FY2023: US$769/oz),
driven by higher logistics costs associated with the tailings material
processed in the current reporting period
§ The South African operations' safety remains a focus point, with LTIFR
regressing to 2.17 (H1 FY2023: 1.0)
Financial highlights
Group
§ Group revenue increased by 18.4% to £74.7 million (H1 FY2023: £63.1
million) comprising:
o Copper units revenue increased by 23.5% to £6.3 million (H1 FY2023: £5.1
million), supported by improved average copper cathode market prices of US$8
262/t (H1 FY2023: US$7 864/t) achieved
o Chrome revenue increased by 46.2% to £51.9 million (H1 FY2023: £35.5
million) due to of chrome concentrate tonnes sold increasing by 13.9% to 721
974t (H1 FY2023: 634 111t), supported by the average chrome concentrate price
per tonne received increasing by 36.4% to US$90/t (H1 FY2023: US$66/t)
o PGM revenue decreased by 26.7% to £16.5 million (H1 FY2023: £22.5
million), being negatively impacted by a 29.7% decrease in the average US$ PGM
basket price received to US$1 021/oz (H1 FY2023: US$1 453/oz) while offset by
PGMs sold increasing by 11.2% to 20 244oz (H1 FY2023: 18 208oz)
§ Group cost of production increased by 24.4% to £60.7 million (H1 FY2023:
£48.8 million) predominantly due to an increase in our chrome feed purchases
and higher logistical costs of PGM tailings materials processed during the
period
§ Group EBITDA increased by 13.6% to £11.7 million (H1 FY2023: £10.3
million)
§ The Group's capital investment in non-current assets decreased to £13.2
million (H1 FY2023: £30.5 million) because of expansion projects concluding
in Zambia and South Africa during the period under review
§ The Group had £5.0 million in cash at the end of the period (30 June 2023:
£12.6 million), noting that, on 4 January 2024, the Company raised £13
million before expenses through an equity placing to fund its Zambian strategy
and growth
Zambia
§ Copper units revenue improved by 23.5% to £6.3 million (H1 FY2023: £5.1
million)
§ Copper units cost per tonne improved by 13.0% to US$4 554/t (H1 FY2023:
US$5 232/t), mainly due to the improved copper production period-on-period
§ Copper units gross profit improved by 66.6% to £2.0 million (H1 FY2023:
£1.2 million)
South Africa
§ Chrome revenue increased by 46.5% to £52.0 million (H1 FY2023: £35.5
million), benefiting from the new Thutse Project and the following:
o Chrome concentrate sales tonnes increased by 13.9% to 721 974t (H1 FY2023:
634 111t)
o The average chrome concentrate price per tonne received increased by 36.4%
to US$90/t (H1 FY2023: US$66/t)
§ The average chrome cost per tonne increased by 19.7% to US$73/t (H1 FY2023:
US$61/t), given the additional own-sourced chrome feed material purchased in
the current reporting period
§ Chrome gross profit increased by 296.0% to £9.9 million (H1 FY2023: £2.5
million)
§ PGM revenue decreased by 26.7% to £16.5 million (H1 FY2023: £22.5
million), predominantly due to:
o PGM ounces sold increased by 11.2% to 20 244oz (H1 FY2023: 18 208oz)
o The US$ PGM average basket price per ounce received decreasing by 29.7% to
US$1 021/oz (H1 FY2023: US$1 453/oz)
§ PGM cost per ounce increased by 16.4% to US$895/oz (H1 FY2023: US$769/oz)
due to higher logistical costs associated with the tailings feed sources for
the Inyoni plant in the current period
§ PGM gross profit decreased by 80.9% to £2.0 million (H1 FY2023: £10.5
million)
Outlook
§ The Group's focus is on innovative modular processing technology to achieve
low-cost, near-term production growth, with a strategic goal to expand
operations to exceed 25 000t per annum of copper content in copper cathode and
concentrates achieved by:
o Upgrading the Sable refinery and the Roan concentrator to increase
production capacities, with Sable's capacity expansion to 16 000t and Roan's
to 13 000t of copper units per annum. A significant upgrade includes the
construction of Sable's sulphide circuit expected in Q3 CY2024 and the
commissioning and ramp-up of a new copper processing module at Roan by the end
of April 2024, aiming to boost copper production significantly
o Jubilee's Project Munkoyo, advancing on schedule near Sable, anticipates its
first test material delivery in Q4 FY2024, supporting long-term quality copper
supply starting early in CY2025, aligning with the strategy to enhance copper
resources and processing capacity through innovative projects and further
opportunities in Zambia
o Concluding the Waste Rock Project acquisition with our partners IRH by
mid-March 2024, which will provide the Group with a fully funded 30% position
in one of Zambia's largest waste rock dumps while being appointed under a
management contract to design, implement and operate the project
§ The Group is uniquely positioned to enhance Thutse's capacity by
constructing two additional 50 000t per month modules, thereby achieving our
long-term annual production target of 2Mt of chrome concentrates
§ The Group's FY2024 production guidance:
o Guidance of 5 850t for copper units is unchanged pending the timely
commissioning of the front-end upgrade of Project Roan
o Chrome operations expected to exceed guidance of 1.45Mt of chrome
concentrate
o PGM production guidance of 42 000oz remains unchanged
Sustainability
Zambia renewable energy
Jubilee's environmentally sustainable methods in copper production are
highlighted by its 'green copper' processing in Zambia. In the period
reviewed, 85% of the power generation for the Zambian operations came from
renewable energy, mainly hydroelectricity. The renewable energy sources make
the operations in Zambia a low source of Scope 2 greenhouse gas emissions,
emitting less than 0.5 tonnes of carbon dioxide (CO(2)) equivalent per
month.
With this renewable energy profile and the secondary and historical waste rock
and tailings sources, Jubilee reinforces its commitment and participation in
eco-friendly 'green copper' mining and processing methods in its operations.
ESG highlights
§ Jubilee's ESG performance over the past six months has demonstrated notable
achievements and areas of improvement
§ Regarding safety, the Zambian operations achieved zero lost time injuries
in the reporting period, significantly lowering the LTIFR from 2.36 to 0.61.
§ The successful roll-out of the mySHEQ safety management system is enhancing
safety protocols by centralising all safety, health and environmental matters
into one accessible system. This will help to enhance the safety performance
of the South African operations in the future.
§ Scope 1 emissions increased by 20%, attributed predominantly to the
increase in the Group's chrome production profile and the increased diesel
usage associated with the transport of ROM to our modular chrome processing
facilities. This resulted in an increase in kilogramme CO(2) emissions per
chrome tonne to 6.62 (H1 FY2023: 4.95)
§ Scope 2 emissions increased marginally by 3%, with kilogramme CO(2)
emissions per chrome tonne reaching 7.71 (H1 FY2023: 7.49).
§ There has been a 30% reduction in water usage, averaging 1.6 (H1 FY2023:
2.3) cubic metres per chrome tonne produced
§ On a social responsibility front:
o In demonstrating Jubilee's commitment to local communities, the Group
invested in two additional boreholes in the Windsor 8 community
o Front end loader training was provided to Inyoni community members; similar
training is underway for members of Windsor SA Plant 1-7
Operational review, strategy and growth projects
Zambia
Sable and Roan
Jubilee gained its footprint in Zambia when acquiring the Sable in 2019. In
April 2021, Jubilee commenced site construction and, in May 2021, Jubilee
established its inaugural copper concentrator, named Roan, in Ndola. Since
operating these two facilities, the Jubilee Technical Services (JTS) team has
been working tirelessly to develop low-cost, near-term production growth
through innovative modular processing technology for its Zambian operations.
The Company's strategy in Zambia is to expand its operations to reach an
initial goal of
25 000t per annum of copper content in copper cathode and copper concentrates.
The strategy includes the expansion of both Jubilee's processing capacity and
copper resource base.
Jubilee is currently in the process of upgrading its Sable refinery and Roan
concentrator, to expand Sable's capacity from 14 000t of copper units to
16 000t of copper units per annum. Roan will be able to process multiple feed
sources of copper oxide and sulphides simultaneously with a capacity of 13
000t per annum of copper units.
Construction of Sable's expansion to the sulphide circuit is expected to
commence during Q3 CY2024. The upgrade forms part of Jubilee's strategy to
expand Sable's capacity to produce up to 16 000t copper units per annum.
As announced on 8 February 2024, the manufacturing and testing of the new 50
000t per month copper processing module is now complete, with the final
components being prepared for transit to Roan for commissioning and will be
delivered within the nine-week timeline as previously communicated. The copper
processing module will be in production and contributing to the copper
production by the end of April 2024.
Project Munkoyo
The development of Project Munkoyo near Sable is progressing to schedule with
the first feed material from this exciting copper resource expected to be
delivered to Sable during Q4 FY2024. The material forms part of the
development of a detailed surface copper resource definition, which offers the
potential of a long-term quality copper supply to Sable from early in CY2025.
Project Munkoyo and the Waste Rock Project as detailed below, align with
Jubilee's strategy of unlocking overlooked copper resources through the
application of processing capability. Jubilee has identified several further
similar opportunities in Zambia which it seeks to secure in the near term as
it drives to continuously increase its copper resource base as the catalyst
for further expanding its processing capacity.
Waste Rock Project
In November 2023, Jubilee announced a partnership with Abu Dhabi's IRH to
develop the 'Waste Rock Project' in Zambia, targeting the production of 24
000t of copper units annually at a cost below US$4 000 per tonne. This
project, leveraging Jubilee's modular units and a potential US$50 million
investment from IRH, aims to process a confirmed 260Mt of historical waste
rock with copper grades over 1.5%. Jubilee and IRH are in the process of
completing due diligence and documentation. Jubilee is finalising project
details, including detailed drilling and processing trials, with a completion
target of mid-March 2024, emphasising cost-effective and sustainable mining
solutions.
The accelerated development of the newly secured large copper waste rock asset
is being progressed along various work streams. This includes the development
of a more detailed resource definition, undertaking bulk processing trials of
the source material by the JTS to confirm detailed designs of the processing
units and securing of manufacturing capacity for plant and equipment.
Mufulira Slag Project
The Mufulira Slag Project is a new project which targets the processing of all
historical slag waste from the Mufulira smelter operations under a joint
venture agreement with Mopani Copper Mines. The JTS has commenced the joint
technical review of the project to create an environmentally friendly
processing solution. More information about the project will be available once
the JTS concludes this initial technical review.
South Africa
Jubilee's ability and capacity to feed multiple types of material and produce
multiple commodities are advantageous as this helps to mitigate the impact of
market fluctuations. This diversified approach has provided stability and
resilience for Jubilee during the period under review.
Five years ago, Jubilee installed its first chrome processing module in South
Africa. Today, the Company has eight individual chrome modules, placing
Jubilee as one of the world's largest chrome concentrate producers. Jubilee's
chrome operations also contribute to its downstream capability to produce
44 000oz of PGMs per annum.
Chrome operations
The Group is making progress in negotiations to establish additional
life-of-mine partnerships at its Thutse Project. At the same time, the Company
is focusing on expanding its chrome operations through the implementation of
two additional processing modules. This initiative is part of the strategic
plan to achieve a future annual chrome concentrate production milestone in
excess of 2Mt per annum. It is expected that these two chrome modules will be
operational by Q3 CY2024 and will be capable of producing 300 000t of chrome
concentrates per annum.
The modules will cost approximately US$12 million, funded through cash
generated by the chrome operations. The project's initiation is dependent on
internal approvals and securing the necessary working capital funding to
purchase and stockpile ROM material for the Thutse chrome processing modules.
PGM operations
The Group's PGM operations are performing strongly and are on track despite
the fluctuation of metals prices. The PGM operations will benefit from the
targeted increased production of chrome concentrates. While the Group's
production capacity of 44 000 PGM ounces per annum will likely be exceeded
with the expansion of the chrome production, we will look towards established
relationships and surplus PGM concentrate refining capacity to be treated. In
the current year, the Group processed no third-party material.
The table below sets out the operational and financial unit results
contributing to revenue and gross profit for the period under review.
Unaudited Unaudited Audited
H1 FY2024 H1 FY2023 % change(*) FY2023
GROUP Unit
Revenue £'000 74 718 63 098 18.4% 141 929
Gross profit £'000 13 995 14 312 (2.2%) 31 391
Gross profit percentage % 19 23 (17.4%) 22
EBITDA £'000 11 657 10 286 13.3% 24 783
PGM
Revenue £'000 16 483 22 505 (26.8%) 44 477
Revenue US$'000 20 667 26 455 (21.9%) 53 556
Gross profit £'000 2 037 10 587 (80.8%) 16 815
Gross profit US$'000 2 554 12 445 (79.5%) 20 248
Gross profit percentage % 12 47 (74.5%) 38
Ounces sold oz 20 244 18 208 11.2% 43 433
Revenue per ounce US$/oz 1 021 1 453 (29.7%) 1 262
Cost per ounce US$/oz 895 769 16.4% 785
Gross profit margin US$/oz 126 684 (81.6%) 477
CHROME
Revenue £'000 51 954 35 500 46.3% 80 575
Revenue US$'000 65 141 41 731 56.1% 97 023
Gross profit £'000 9 970 2 501 298.6% 9 773
Gross profit US$'000 12 501 2 940 325.2% 11 768
Gross profit percentage % 19 7 171.4% 12
Tonnes produced t 718 189 668 809 7.4% 1 289 890
Tonnes sold t 721 974 634 111 13.9% 1 275 558
Revenue per tonne US$/t 90 66 36.4% 76
Cost per tonne US$/t 73 61 19.7% 67
Gross profit margin US$/t 17 5 240% 9
COPPER UNITS
Revenue £'000 6 280 5 092 23.3% 16 877
Revenue US$'000 7 874 5 986 31.5% 20 322
Gross profit £'000 1 988 1 227 62.0% 4 915
Gross profit US$'000 2 492 1 442 72.8% 5 918
Gross profit percentage % 31.7 24.1 31.5% 29
Tonnes sold t 1 182 868 36.2% 2 728
Revenue per tonne US$/t 6 663 6 893 (3.3%) 7 451
Cost per tonne US$/t 4 554 5 232 (13.0%) 5 281
Gross profit margin US$/t 2 109 1 661 27.0% 2 171
* Due to rounding the percentages listed in the table above may differ to
percentages listed in the highlights
Financial performance analysis
Exchange rates and their impact on results
Jubilee 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$. The functional currency for South Africa is
ZAR and for Zambia it is ZMW, while the Group's reporting currency is pound
sterling (£/GBP).
Period-on-period changes in the currency rates, respectively, must be
considered when comparing period-on-period results. During the period under
review, spot and average exchange rates moved as illustrated below.
SPOT H1 FY2024 H1 FY2023 % change
US$/GBP 1.27 1.21 5.0%
ZAR/GBP 23.27 20.55 13.2%
ZMW/GBP 32.78 21.78 50.5%
AVERAGE H1 FY2024 H1 FY2023 % change
US$/GBP 1.25 1.18 5.9%
ZAR/GBP 23.41 20.33 15.1%
ZMW/GBP 26.44 19.20 37.7%
Revenue
Revenue for the period increased by 18.4% to £74.7 million (H1 FY2023: £63.1
million) mainly driven by increased chrome concentrate sales by 13.9% from H1
FY2023 to 721 974t in H1 FY2024 and a 36.4% increase in the US$ chrome price
per tonne achieved. Chrome revenue contributed 69.5% (FY2023: 56.2%) to total
Group revenue. PGM revenue decreased by 26.8% with PGM basket prices
regressing by 29.7% to US$1 021/oz. Copper units revenue increased by 23.5%
to £6.3 million (H1 FY2023: £5.1 million) mainly attributable to a 36.2%
increase in copper units tonnes sold.
Cost of production
Cost of production increased by 24.4% to £60.7 million (H1 FY2023: £48.8
million). Cost of production for the chrome and PGM operations in South Africa
contributed 93.1% of the Group's cost of production amounting to £56.5
million (H1 FY2023: £44.9 million (92%)).
The main categories of cost of production for chrome and PGM operations
include:
- Electricity costs increased by 41.7% in South Africa to £1.7
million (H1 FY2023: £1.2 million) due to tariff increases, higher production
and diesel generation costs to counter the power challenges in South Africa
- Salaries and wages increased by 22.6% to £3.8 million (H1 FY2023:
£3.1 million) contributing 6.3% of the Group's total cost of production (H1
FY2023: 6.3%). As the chrome operations have expanded, the salaries and wages
have commensurately increased
- Mining and processing costs increased by 25.6% to £51.0 million (H1
FY2023: £40.6 million), mainly driven by a 29.4% increase in run-of-mine
(ROM) and tailings costs as the chrome operations expanded into own-sourced
material during the period under review. ROM and tailings costs contributed
55.5% of the Group's total cost of production (H1 FY2023: 53.3%).
Cost of production for the Zambian operations increased by 7.7% to £4.2
million (H1 FY2023: £3.9 million). The Zambian operations contributed 6.9% of
the Group's cost of production.
Other operating costs
Other operating expenses increased by 5.2% to £10.2 million (H1 FY2023: £9.7
million) predominantly due to inflationary increases during the period under
review.
Finance cost
Finance cost increased 93.8% to £3.1 million (H1 FY2023: £1.6 million). The
increase is a result of holding higher quantities of ROM and tailings which
were funded by new working capital facilities.
Fair value adjustments
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 a fair valuation of a
£2.8 million liability, contingent on the earnings payable from the Kabwe
Project. Following the acquisition, the fair value of this liability was
reassessed due to recent project assessments, leading to a downward adjustment
of £2.8 million in the liability's fair value.
Capital expenditure
During the period, the Company invested £12.9 million (H1 FY2023: £30.5
million) in capital to expand its South African chrome operations and to
continue with the upgrade and expansion of its Roan copper concentrator's
processing facility in Zambia.
Cash and debt facilities
As at 31 December 2023, the Company's cash and cash equivalents balance was
£5.0 million (FY2023: £12.6 million). Net cash generated from operating
activities was £2.6 million (FY2023: £31.0 million), impacted predominately
due to a lower change in working capital period-on-period of £1.3 million
(FY2023: £17.4 million).
For the period under review the Company is reviewing strategies to consolidate
debt and working capital facilities. Additionally, the Absa £12.9 million
(ZAR300 million) revolving credit facility will be refinanced by mid-April
2024.
Investor call
Management will host a presentation and Question and Answer session for
investors at 09:00 UK time on 28 February 2024. Investors can sign up to
Investor Meet Company at no cost at https://bit.ly/3kT8Fb9
(https://bit.ly/3kT8Fb9)
Investors who already follow Jubilee Metals on the Investor Meet Company
platform have automatically been invited. Questions can be submitted pre-event
via your Investor Meet Company dashboard up until 09:00 the day before the
meeting or at any time during the live presentation.
Analyst conference call and webcast
Jubilee will host a conference call and webcast for analysts at 11:00 UK time
on 28 February 2024. To attend the analysts' call, please contact investor
relations at jubilee@tavistock.co.uk (mailto:jubilee@tavistock.co.uk)
26 February 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)/Neal Reynolds (CFO)
Tel: +27 (0) 11 465 1913
Nominated adviser - SPARK Advisory Partners Limited
Andrew Emmott/James Keeshan
Tel: +44 (0) 20 3368 3555
Public Relations and Investor Relations adviser - Tavistock
Jos Simson/Gareth Tredway
Tel: +44 (0) 20 7920 3150
Joint broker - Berenberg
Matthew Armitt/Jennifer Lee/Detlir Elezi
Tel: +44 (0) 20 3207 7800
Joint broker - WHIreland
Harry Ansell/Katy Mitchell
Tel: +44 (0) 20 7220 1670/+44 (0) 113 394 6618
JSE sponsor - Questco Corporate Advisory Proprietary Limited
Alison McLaren
Tel: +27 (0) 11 011 9207
About Jubilee
Jubilee is a low-cost, diversified producer, specialising in the recovery of
metal from previously overlooked resources, such as unprocessed historical
waste rock, run-of-mine materials and tailings in South Africa and Zambia. The
Company's low-capex, modular processing facilities are deployed close to these
various types of material, producing high grade concentrates for sale or
further refining to finished metal at the Company's downstream facilities.
Production currently consists of chrome, copper and platinum group metals
(PGMs). The modular processing facilities offer a platform for growth and the
rapid expansion of its operational footprint. Jubilee's success is derived
from operational excellence, a highly experienced management team and a
pioneering Technical Development Centre.
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2023
Consolidated statements of comprehensive income for the six months ended 31
December 2023
Unaudited Unaudited Audited
Figures in pound sterling ('000) Notes H1 FY2024 H1 FY2023 FY2023
Revenue 74 718 63 098 141 929
Cost of sales (60 723) (48 786) (110 538)
Gross profit 13 995 14 312 31 391
Operating costs (10 191) (9 651) (15 873)
Operating profit 3 804 4 661 15 518
Investment income 823 845 1 615
Fair value adjustments 2 874 362 313
Finance costs (3 127) (1 604) (5 165)
Profit before taxation 4 374 4 264 12 281
Taxation (5) (198) 688
Profit for the period 4 369 4 066 12 970
Attributable to:
Owners of the Parent 4 384 3 928 12 914
Non-controlling interest (15) 138 56
Profit for the period 4 369 4 066 12 970
Reconciliation of other comprehensive loss:
Other comprehensive loss
Profit for the period 4 369 4 066 12 970
Loss on translation of foreign subsidiaries (27 948) (7 908) (20 866)
Total other comprehensive loss (23 579) (3 842) (7 896)
Attributable to:
Owners of the Parent (23 451) (3 840) (7 400)
Non-controlling interest (128) (2) (497)
Total other comprehensive loss (23 579) (3 842) (7 897)
Weighted average number of shares ('000) 2 738 130 2 664 488 2 738 130
Earnings per share (pence) 2 0.16 0.15 0.48
Diluted earnings for the period 4 384 3 928 12 970
Diluted weighted average number of shares ('000) 2 744 924 2 716 128 2 733 244
Diluted earnings per share (pence) 0.16 0.15 0.47
Consolidated statements of financial position as at 31 December 2023
Unaudited Unaudited Audited
Figures in pound sterling ('000) Notes H1 FY2024 H1 FY2023 FY2023
Assets
Non-current assets
Property, plant and equipment 75 913 87 840 88 697
Intangible assets 77 650 80 069 79 883
Other financial assets 5 14 587 14 925 14 138
Non-current inventory 13 199 12 572 13 506
Deferred tax 4 785 4 188 5 930
Total non-current assets 186 134 199 594 202 154
Current assets
Inventories 32 727 32 988 35 665
Other financial assets 5 346 462 338
Current tax 804 1 213 695
Trade and other receivables 35 853 47 064 29 681
Contract assets 17 362 7 729 19 009
Cash and cash equivalents 4 961 11 708 12 596
Total current assets 92 053 101 164 97 984
Total assets 278 187 300 758 300 138
Equity and liabilities
Share capital 6 161 120 157 578 161 120
Reserves (25 227) 15 736 2 608
Retained income 42 101 28 731 37 717
Total equity before non-controlling interest 177 994 202 045 201 445
Non-controlling interest 3 085 3 708 3 213
Total equity 181 079 205 753 204 658
Non-current liabilities
Other financial liabilities - 2 803 2 803
Lease liability 2 719 191 24
Deferred tax liability 11 808 16 463 13 852
Long-term provisions 626 891 938
Total non-current liabilities 15 153 20 348 17 617
Current liabilities
Trade and other payables 60 263 55 815 59 640
Revolving credit facility 17 091 15 906 14 171
Current tax payable 4 601 2 936 4 052
Total current liabilities 81 955 74 657 77 863
Total liabilities 97 108 95 005 95 480
Total equity and liabilities 278 187 300 758 300 138
Consolidated statements of changes in equity as at 31 December 2023
Figures in pound sterling ('000) Share capital Merger reserve Share-based payment reserve Currency translation reserve Total reserves Retained earnings Total attributable to Parent of equity holders Non-controlling interest Total equity
Balance as at 1 July 2022 155 539 23 184 3 372 (3 052) 23 504 24 803 203 846 3 710 207 556
Profit for the year - - - - - 12 914 12 914 (497) 12 417
Other comprehensive loss - - - (20 313) (20 313) - (20 313) - (20 313)
Total comprehensive (loss)/profit for the year - - - (20 313) (20 313) 12 914 (7 399) (497) (7 897)
Issue of share capital net of costs 4 563 - - - - - 4 563 4 563
Share warrants exercised 935 - (935) - (935) - - - -
Share options exercised/lapsed 83 - (83) - (83) - - - -
Share options granted - - 435 - 435 - 435 - 435
Total changes 5 581 - (583) (20 313) (20 896) 12 914 (2 401) (497) (2 898)
Balance as at 1 July 2023 161 120 23 184 2 789 (23 365) 2 608 37 717 201 445 3 213 204 658
Profit for the period - - - - - 4 384 4 384 (128) 4 256
Other comprehensive loss - - - (27 835) (27 835) - (27 835) - (27 835)
Total comprehensive (loss)/income for the period - - - (27 835) (27 835) 4 384 (23 451) (128) (23 579)
Total changes - - - (27 835) (27 835) 4 384 (23 451) (128) (23 579)
Balance as at 31 December 2023 161 120 23 184 2 789 (51 200) (25 227) 42 101 177 994 3 085 181 079
Consolidated statements of cash flow for the six months ended 31 December 2023
Unaudited Unaudited Audited
Figures in pound sterling ('000) H1 FY2024 H1 FY2023 FY2023
Cash flow from operating activities
Profit before taxation 4 374 4 264 12 281
Adjustments for:
Depreciation and amortisation 4 978 4 648 8 952
Investment income (823) (845) (1 615)
Finance cost 3 127 1 604 5 165
Share-based payments - - 436
Fair value adjustments (2 874) (362) (313)
Other movements (312) (38) 4
Effect of exchange rate movement on cash balances (662) (1 688) (5 789)
Working capital changes
- Inventories 2 631 (5 317) (9 826)
- Trade and other receivables (4 526) 13 034 20 220
- Trade and other payables 623 4 265 7 008
Cash generated from operations 6 536 19 565 36 523
Investment income 823 845 1 615
Finance cost (3 127) (1 604) (5 165)
Taxation paid (1 639) (1 847) (1 966)
Net cash from operating activities 2 593 16 959 31 007
Cash flow from investing activities
Purchase of property, plant and equipment (10 216) (26 539) (33 782)
Sale of property, plant and equipment - 11 28
Purchase of intangible assets (3 018) (3 706) (9 130)
Increase in other financial assets - (253) -
Sale/(purchase) of non-current inventory 307 - (999)
Net cash used in investing activities (12 927) (30 487) (43 883)
Cash flow from financing activities
Proceeds from share issues net of costs - 2 039 4 563
Proceeds from revolving credit facilities 2 920 7 435 5 700
Increase in loans to joint ventures - - 40
Decrease in other financial liabilities - (1) (1)
Lease payments (174) (168) (336)
Net cash generated from financing activities 2 746 9 305 9 966
Net decrease in cash and cash equivalents (7 588) (4 223) (2 910)
Cash and cash equivalents at the beginning of the period 12 596 16 018 16 018
Effects of foreign exchange on cash and cash equivalents (47) (87) (512)
Cash and cash equivalents at the end of the period 4 961 11 708 12 596
NOTES TO THE UNAUDITED INTERIM RESULTS
1. Basis of preparation
The Group's unaudited interim results for the six months ended 31 December
2023 have been prepared using the accounting policies applied by the Company
in compiling its 30 June 2023 annual financial statements which are in
accordance with
§ International Accounting Standards (IAS), issued by the International
Accounting Standards Board as adopted for use in the European Union
(International Financial Reporting Standards (IFRS) and UK- adopted
international accounting standards
§ South African Institute of Chartered Accountants (SAICA) Financial
Reporting Guides as issued by the Accounting Practices Committee, IAS 34:
Interim Financial Reporting
§ Listings Requirements of the JSE Limited (JSE)
§ Alternative Investment Market (AIM) rules of the London Stock Exchange
§ Companies Act 2006 (UK)
This condensed consolidated interim financial report does not include all
notes of the type normally included in an annual financial report.
Accordingly, this report is to be read in conjunction with the integrated
annual report for the year ended 30 June 2023 and any public announcements by
Jubilee Metals Group PLC. All monetary information is presented in the
presentation currency of the Company being Great British Pound. The Group's
principal accounting policies and assumptions have been applied consistently
over the current and prior comparative financial periods. The financial
information for the year ended 30 June 2023 contained in this interim report
does not constitute statutory accounts as defined by section 435 of the
Companies Act 2006. A copy of the statutory accounts for that year has been
delivered to the Registrar of Companies. The auditor's report on those
accounts was unqualified and did not contain a statement under section
498(2)-(3) of the Companies Act 2006.
2. Financial review
Earnings per share for the six months ended 31 December 2023 are presented as
follows:
Unaudited Unaudited Audited
H1 FY2024 H1 FY2023 FY2023
Earnings for the period (£'000) 4 384 3 928 12 914
Weighted average number of shares in issue ('000) 2 687 683 2 664 488 2 687 683
Diluted weighted average number of shares in issue ('000) 2 733 244 2 716 128 2 733 244
Earnings per share (pence) 0.16 0.15 0.48
Diluted earnings per share (pence) 0.16 0.15 0.47
The Group reported a net asset value of 6.9 pence (H1 FY2023: 7.6 pence) per
share and a net tangible asset value per share of 3.8 pence (H1 FY2023: 7.6
pence) per share. The total number of shares in issue as at 31 December 2023
was 2 738 129 981 (H1 FY2023: 2 694 854 150).
3. Dividends
No dividends were declared during the period under review (H1 FY2023: nil).
4. Business segments
Following the strategic restructuring of Jubilee's operations and business
model, management presents the following segmental information:
§ Chrome and PGM - the processing of PGM and chrome-containing material
§ Copper - the processing of copper units containing material
§ Other - Corporate costs and exploration assets
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.
Segment report for the six months ended 31 December 2023
Chrome and PGM Copper
Figures in pound sterling ('000) Other Total
Total assets 147 547 76 184 54 456 278 187
Total liabilities 64 044 26 723 6 341 97 108
Total revenue 68 438 6 280 - 74 718
Gross profit 12 007 1 988 - 13 995
Profit/(loss) before taxation 3 210 (1 066) 2 232 4 376
Taxation (1 336) 1 417 (87) (6)
Profit after taxation 1 874 350 2 144 4 368
Interest received 365 - 458 823
Interest paid (2 458) (669) - (3 127)
Depreciation and amortisation (4 195) (575) (208) (4 978)
Segment report for the six months ended 31 December 2022
PGM and chrome Copper Other Total
Figures in pound sterling ('000)
Total assets 134 973 95 407 70 378 300 758
Total liabilities 46 188 27 674 21 144 95 006
Total revenue 58 006 5 092 - 63 098
Gross profit 13 084 1 228 - 14 312
Forex losses - operations 3 6 1 10
Profit/(loss) before taxation 5 783 (994) (525) 4 264
Taxation (44) (81) (73) (198)
Profit/(loss) after taxation 5 739 (1 075) (598) 4 066
Interest received 399 - 446 845
Interest paid (1 129) (475) - (1 604)
Depreciation and amortisation (3 507) (973) (167) (4 647)
Segment report for the year ended 30 June 2023
Chrome and PGM Copper Other Total
Figures in pound sterling ('000)
Total assets 140 451 100 659 59 027 300 137
Total liabilities 55 925 33 249 6 306 95 480
Revenue 125 052 16 877 - 141 929
Gross profit 26 497 4 894 - 31 391
Depreciation and amortisation (6 826) (1 734) (392) (8 952)
Operating expenses (871) (3 213) (2 838) (6 922)
Operating profit 18 800 (53) (3 230) 15 517
Investment revenue 760 - 855 1 615
Fair value - - 313 313
Net finance costs (4 287) (878) - (5 165)
Profit/(loss) before taxation 15 273 (931) (2 062) 12 280
Taxation (315) 1 134 (131) 688
Profit/(loss) after taxation 14 958 203 (2 193) 12 968
5. Other financial assets
Unaudited Unaudited Audited
Figures in pound sterling ('000) H1 FY2024 H1 FY2023 FY2023
At fair value through profit or loss - designated
Kendrick Resources Limited 26 60 26
Loans and receivables
Horizon Corporation Limited - Star Tanganika 4 496 4 451 4 390
Horizon Mining Limited - Kitwe Project 9 470 9 259 9 129
Mash Rock Mining Proprietary Limited - 478 -
Amava Minerals 346 491 338
Kgato Investments Proprietary Limited 575 646 563
Other 20 - 30
Total other financial assets 14 933 15 386 14 476
Comprising:
Current assets
Loans receivable 346 491 338
Non-current assets
Loans receivable 595 14 775 593
At fair value through profit or loss 13 992 60 13 545
14 587 14 835 14 138
Total other financial assets 14 933 15 386 14 476
6. Share capital and warrants
The share capital of the Company is divided into an unlimited number of
ordinary shares of £0.01 each.
Figures in pound sterling ('000) Unaudited Unaudited Audited
H1 FY2024 H1 FY2023 FY2023
Ordinary shares of £0.01 each 27 381 26 949 27 381
Share premium 133 739 130 629 133 739
Total issued capital 161 120 157 578 161 120
During the period under review, the Company did not issue any new Jubilee
ordinary shares. Post the period under review, the Company issued the
following new Jubilee shares pursuant to an equity placing. Refer to note 9.1
for more details.
Number of shares ('000) Issue price Purpose
(pence)
Shares in issue at 31 December 2023 2 738 130
Issued on 4 January 2024 236 364 5.5 Equity placing
Shares in issue at the last practicable date 2 974 494
7. Warrants
At the period-end and at the date of this report, 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 2024 4.13
22 Jun 2020 750 000 3.40 22 Jun 2025 3.90
21 Jan 2021 4 036 431 13.00 21 Jan 2026 13.20
7 Dec 2023 22 279 492 7.14 7 Dec 2025 5.20
Total 34 884 673
8. Going concern
The financial position of the Group is set out in these condensed unaudited
interim results for the six months ended 31 December 2023. The Group adopted
the going concern basis of accounting in the preparation of these interim
results.
The Directors have considered the Group's liquidity position at the period end
as well as at the date of the publication of these results. The Group has
sufficient liquidity, working capital and cash resources to meet its
obligations and to continue in operational existence for at least twelve
months from the date of approval of these results.
9. Events after the reporting date
9.1 Equity placing
On 4 January 2024, the Company issued 236 363 636 new Jubilee shares
pursuant to an equity placing concluded to raise £13 million before expenses.
The proceeds are specifically targeting the Group's Zambian Copper operations
to:
§ Pay the initial payment of US$1.75 million, due under the agreement for the
acquisition of the copper waste rock dump announced on 12 December 2023
detailed above and progress resource and process design (US$4.5 million)
§ Expand the sulphide recovery circuits at Sable to accommodate increased
sulphide concentrate production from newly acquired projects (US$5.7 million)
§ Progress the project development phase of the Mufulira slag project, with
early-stage bulk trial and processing (US$2.5 million) and
§ For general working capital purposes.
10. Unaudited results
These interim results have not been reviewed or audited by the Group auditors.
11. Interim report
From the date of this report, copies of the interim report are available for
download from the Company's website www.jubileemetalsgroup.com
(http://www.jubileemetalsgroup.com)
United Kingdom
26 February 2024
Annexure 1
Headline earnings per share 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 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 profit reported and headline
earnings used in the calculation of headline earnings per share.
Reconciliation of headline earnings per share Unaudited Unaudited Audited
Figures in pound sterling ('000) H1 FY2024 H1 FY2023 FY2023
Profit attributable to ordinary equity holders of the Parent 4 384 3 928 12 914
Adjusted for:
Fair value adjustments (2 874) (362) (313)
Headline earnings from continuing operations 1 509 3 567 12 601
Weighted average number of shares in issue ('000) 2 738 130 2 664 488 2 738 130
Diluted weighted average number of shares in issue ('000) 2 733 244 2 716 128 2 733 244
Headline earnings per share (pence) 0.06 0.13 0.46
Headline earnings per share (ZAR cents) 1.40 2.72 9.84
Diluted headline earnings per share (pence) 0.06 0.13 0.46
Diluted headline earnings per share (ZAR cents) 1.40 2.67 9.86
Average conversion rate used for the period under review ZAR/GBP 23.27 20.55 21.28
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