REG - Jubilee Metals Group - Interim Results for Six Months to 31 December 2021
24/03/2022 07:00
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RNS Number : 8860F Jubilee Metals Group PLC 24 March 2022
Registration number
(4459850)
Altx share code: JBL
AIM share code:
JLP
ISIN: GB0031852162
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Jubilee Metals Group PLC
("Jubilee" or "the Company" or "the Group")
UNAUDITED CONDENSED INTERIM RESULTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2021
Jubilee, the AIM and Altx traded metals processing company, announces its
unaudited interim results for the six months ended 31 December 2021 ("H2
CY2021"). The results follow the operational update released on 8 February
2022. The period under review marks a period of significant investment, with
of £ 35 million (ZAR 750 million) having been invested into both the South
African and Zambian operations as the Company lays the foundation for
sustained growth in South Africa while rapidly nearing the completion of its
Southern Copper Refining Strategy in Zambia, targeted to deliver more than
10 000 tonnes of copper per annum.
The period review included the completion of the construction of the Company's
now fully integrated, world-class, Inyoni chrome and PGM facility in South
Africa during November 2021 and ramping up of the upgraded facility to reach
full production during December 2021. In addition, the Group continued to
further deliver on its Southern Copper Refining Strategy in Zambia with
increased interim copper production and the new Roan copper concentrator
entering its commissioning phase post the period under review, expected to
fully ramp up its production during May 2022.
H2 CY2021 results are compared with the period for the six months ended 31
December 2020 ("H2 CY2020"). All amounts in this announcement are converted at
average conversion rates for the period for income statement purposes and at
the period end spot rate for balance sheet purposes, unless stated otherwise.
Highlights
Period under review
· Major milestone reached as Jubilee completed its fully integrated,
world-class, Inyoni chrome and PGM facility in South Africa ("Inyoni
Facility") in November 2021 and ramping back up to full production during
December 2021
· The new integrated Inyoni Facility further increases the Company's
access to chrome processing capacity, to approximately 3 million tonnes
annually, making Jubilee one of the world's largest chrome processors in
operation. It also increases the Inyoni PGM production potential capacity to
the equivalent of 44 000 PGM ounces per annum, offsetting any short-term
production loss linked to the construction phase during the period, with the
potential of sustained long-term growth
· The proportion of PGM ounces now produced that are fully attributable
to Jubilee has significantly increased compared with the considerable dilution
of earnings caused historically by the Windsor PGM JV, where 40% of earnings
was attributable to the JV partner
· A period of substantial investment for the future with a total of £
35 million invested (ZAR 750 million); of which, £ 20.5 million (ZAR 442
million) was invested in the expansion of Jubilee's Inyoni chrome and PGM
facility in South Africa and a further £ 14.5 million (ZAR 311 million)
invested in Jubilee's copper projects in Zambia, more specifically Project
Roan, signals the implementation of the fully integrated Southern Copper
Refining Strategy
· Group revenue up 18% to £ 63 million (ZAR 1.3 billion) driven mainly
by the sharp growth in chrome processing capacity that is the facilitator for
the increased production of the PGM rich feed stream for the expanded Inyoni
Facility
· Despite the significant investment to sustain growth, the Company
strengthened its working capital position; cash and cash equivalents increased
to £21.5 million (ZAR 462 million) (30 June 2021: £ 20 million (ZAR 389
million)), with short term assets covering a healthy 199% of short-term
liabilities
· The Group's balance sheet continued to strengthen substantially, with
total assets increasing by 30% to £ 253 million (ZAR 5.4 billion) (30 June
2021: £ 195 million (ZAR 3.9 billion))
· Total equity increased by 34% to £ 184 million (ZAR 4 billion), (30
June 2021: £ 137 million (ZAR 2.7 billion)), maintaining a strong equity
ratio of 73% compared with 70% as at 30 June 2021
· The Group's gearing remains low, with the net cash position and
current assets covering 154% of total liabilities compared with 147% as at 30
June 2021. Post the period under review, these parameters strengthened even
further
Post the period under review
· Southern Copper Refining Strategy continues to deliver with increased
interim copper production and Project Roan entering its commissioning phase
targeting to complete the operational ramp up during May 2022
· Settled entire long-term historical debt balance leaving the balance
sheet completely long-term debt free and paving the way for Jubilee to
leverage its balance sheet for structured debt funding on significantly better
terms of its Northern Zambian Copper Strategy which is set to more than double
its copper production and introduce and materially expand cobalt production
· Group safety performance maintained with LTIFR equalling 0.323 for
the period and zero group fatalities recorded
· The Northern Copper Refining Strategy is currently targeting an
additional 15 000 tonnes of copper per annum, but also holds the potential to
substantially increase this target on the back of Jubilee's recognised brand
of process excellence in the recovery of metals from waste and the vast
opportunities offered in waste recovery in Zambia
Leon Coetzer, CEO of Jubilee, commented: "The first half of the financial year
saw the Group ramp-up our investment into both our South African and Zambian
operations.
"In South Africa we completed the new fully integrated Inyoni chrome and PGM
operations to deliver not only a facility able to process a variety of sourced
feed materials, fully attributable to us, but also reducing Jubilee's reliance
on its Windsor JV agreement to produce its declared PGM ounces. The
transformed Inyoni Facility is a state-of-the-art plant that is uniquely able
to process a wide variety of chrome and PGM containing ores. It means that we
are now able to enter into contracts with multiple suppliers of feedstock,
from tailings to mine production, and process it all through the same facility
while also making us a very significant player in the chrome market. This in
turn reduces the risks associated with a single major contract, but also
allows us to pursue lucrative opportunities that we were not able to before.
Most importantly, this facility makes Jubilee a very efficient metal
production company globally, including benefits from elements like water
usage, to higher efficiency of grinding, far outperforming conventional mining
on a number of metrics.
"The benefits from the completion of our Inyoni Facility have been seen
already and the second half of the financial year has started strongly with
monthly production levels being reflective of the new facility as it reaches
full design capacity.
"In Zambia, Project Roan's integrated copper concentrator nears completion
with early commissioning activities underway at the time of writing and the
ramp-up of production set to commence during May. The Roan concentrator will
have the ability to produce an additional 10 000 tonnes of copper units
annually which will be refined at the Sable Refinery, delivering the fully
integrated Southern Copper Refining Strategy as we move our project focus to
the Northern Refining Strategy.
"Project Lechwe, which forms the first link in the integrated Northern
Refining Strategy, is the Company's second planned copper processing facility
in Zambia and final pilot runs are under way to confirm the design work.
Project Lechwe targets to reach the production of 7 500 copper units per annum
by the second quarter of calendar 2023. The Northern Refining Strategy
currently targets the production of an additional 15 000 tonnes of copper but
offers the potential to be significantly expanded based on the sheer size of
opportunities offered in copper and cobalt recovery from waste in Zambia.
Jubilee's recognised brand in process excellence together with its in-country
track record, places the Company in a commanding position to capitalise on
these opportunities.
"Given these successes, in December we were also able to reveal plans for the
roll-out of a global expansion strategy going into 2022. In developing this
global strategy, Jubilee will seek to leverage the unique and proven
intellectual capital it has developed over the past 10 years and from which it
has already created two successful metal recovery businesses, to deploy its
metal processing expertise in other jurisdictions and grow internationally.
"With our strong balance sheet, including a healthy cash position, able to
facilitate our growth, I firmly believe that our ability to process ore from
multiple sources through a single, centralised processing unit, while at the
same time cleaning up historical environmental mine tailings liabilities to
the benefit of all stakeholders, will both create opportunities and give
Jubilee a competitive advantage as it pursues further international
opportunities.
"With our global metals processing strategy in mind, and with a strong balance
sheet position, we are confident that any future bank and structured funding
can be secured on substantially better terms to advance our Zambian Copper
Strategy and growth.
"This interim period has been one of the most significant to date for Jubilee,
and with the newly constructed and commissioned fully integrated Inyoni
Facility now fully operational, we have a tremendous platform for future
growth which firmly demonstrates the skills and expertise that your company
has as we continue to broaden operations. The recent conversion to equity of
all historical debt is another reinforcement of the success of our strategy in
Zambia too, and we are excited for our processing facilities there to come on
line in the coming weeks and to continue the roll out of our global metals
processing strategy over the year ahead."
GROUP FINANCIAL AND OPERATIONAL PERFORMANCE:
The increase in group revenue was mainly as a result of a sharp increase in
the chrome production output which, is subject to a fixed contracted earnings
margin and acts as a feeder to the PGM operations. Chrome revenue contributed
to 48% of total group revenue for the period under review compared to 22% for
the comparable period. This increased revenue has the impact of reducing
overall group earnings margin due to the fixed margin contract.
The reduction in group attributable earnings was mainly as a result of the
planned Inyoni PGM plant operational downtime to allow for the construction
and re-commissioning of the new integrated Inyoni Facility. This resulted in
the Inyoni PGM facility being available at 100% of its operating capacity for
only 41% during the period under review. A further contributor to lower
earnings was the lower average PGM basket price realised per ounce sold which,
reduced by 35% over the period but showed a strong recovery at the end of the
period which, was sustained post the period under review. Total PGM ounces
sold includes the sale, in part, of the PGM in-process stock released through
the stoppage of the Inyoni Facility.
The increase in the PGM unit cost per ounce to US$ 822 was mainly driven by a
transport cost component of US$ 262 per ounce (included in the US$ 822)
incurred for PGM ounces transported from the Eastern Limb Region until such
time as a dedicated PGM facility is secured in the Eastern Limb Region.
Unit 6m to 6m to 12m to
31 Dec 2021 31 Dec 30 Jun 2021
2020
GROUP
Revenue £'000 63 265 53 438 132 845
Attributable earnings((i)) £'000 19 540 30 946 71 112
Adjusted attributable earnings margin((ii)) % 31 58 54
EBITDA £'000 13 664 28 850 50 335
Adjusted EBITDA ((iii)) £'000 14 916 29 325 52 153
Adjusted EBITDA margin % 24 55 39
PGM
PGM £ revenue £'000 24 330 36 593 88 754
PGM US$ revenue US$'000 33 163 47 791 112 779
Attributable PGM £ earnings £'000 13 064 26 387 62 847
Attributable PGM US$ earnings US$'000 17 807 34 462 84 632
Attributable PGM US$ earnings margin % 54 72 75
Total attributable PGM ounces sold comprising: oz 20 316 28 187 50 162
PGM ounces sold oz 14 316 28 187 50 162
PGM in-process stock sold oz 6 000 - -
PGM US$ revenue per ounce((iv)) comprising: US$/oz 1 632 1 696 2 248
PGM ounces sold US$/oz 2 073 - -
PGM in-process stock sold US$/oz 581 - -
PGM attributable US$ earnings per ounce((iv)) US$/oz 818 1 223 1 687
Total adjusted PGM production US$ unit cost comprising: US$/oz 822 470 537
Processing cost((v)) US$/oz 560 470 537
Transport((vi)) US$/oz 262 - -
CHROME
Chrome £ revenue £'000 30 436 11 565 34 506
Chrome US$ revenue((vii)) US$'000 41 487 15 105 47 004
Attributable chrome £ earnings £'000 3 217 1 320 3 082
Attributable chrome US$ earnings US$'000 4 385 1 724 4 150
Attributable chrome earnings margin % 11 11 9
Attributable chrome tonnes sold tonnes 619 900 282 885 727 264
Chrome US$ revenue per tonne sold US$/t 67 53 64
Chrome attributable US$ earnings per tonne sold US$/t 7 5 6
COPPER
Copper £ revenue £'000 8 499 3 791 8 919
Copper US$ revenue US$'000 11 584 4 951 12 011
Attributable copper £ earnings £'000 3 260 1 793 3 690
Attributable copper US$ earnings US$'000 4 443 2 342 4 969
Attributable copper earnings margin % 38 47 41
Attributable copper tonnes sold tonnes 1 216 705 1 460
Copper US$ revenue per tonne sold US$/t 9 527 7 023 8 226
Copper attributable US$ earnings per tonne US$/t 3 654 3 322 3 403
(i) Attributable earnings refer to earnings attributable to the
group based on its contractual rights in each project.
(ii) The increased contribution of chrome to overall group revenue
has the impact of reducing the overall group earnings margin due to the fixed
margin contract on chrome.
(iii) Adjusted EBITDA refers to EBITDA adjusted for non-cash expenses
including impairments, gain on bargain purchase
and foreign exchange differences.
(iv) PGM US$ revenue and attributable earnings per ounce exclude
revenue and costs associated with the sale of 6 000 ounces of in-process
stock released as part of the recommissioning of the Inyoni Facility.
(v) Adjusted PGM production unit cost includes all direct and
indirect processing costs attributable to the production of PGMs. The period
under review also includes all operating costs for the Windsor PGM Joint
Venture allocated to the Jubilee attributable PGM ounces.
(vi) Transport costs incurred for the PGM ounces transported from the
Eastern Limb Region until such time as a dedicated PGM facility is secured in
the Eastern Limb Region.
(vii) Chrome revenue is recognised on an ex-works basis after costs of
export logistics including freight, shipping and marketing.
INTERIM PERIOD REVIEW
Combined Operational and Financial update
The Company saw the culmination of a continued period of planned substantial
infrastructure investment and integration across its projects, which resulted
in scheduled operational downtime at the chrome and PGM operations to
facilitate the construction and integration of new processing circuits. Now
completed, the newly constructed and commissioned fully integrated Inyoni
Facility has set a tremendous platform for future growth for the Company. It
sets the example of the type of facility that the Company plans to develop as
it expands its chrome and PGM operational footprint in the Eastern Limb of the
Bushveld complex in South Africa. This is a strategic development,
demonstrating Jubilee's ability to continue to grow its business by
re-investing its earnings into high growth projects.
During this period, the Company maintained its contractual obligations to
deliver the required PGM production despite its Inyoni PGM operation only
being partially operational to achieve 20 316 PGM ounces sold for H2 CY2021
(H1 CY2021: 21 975 ounces). The PGM results are skewed and impacted by the
staged decommissioning and re-commissioning of the Inyoni Facility over the
reporting period resulting in the one-off release of a quantity of in-process
lower-grade PGM inventories and refilling of the operational pipeline over the
period. The total PGM ounces sold included in-process stock released as part
of the recommissioning of the Inyoni Facility. The in-process stock was sold
as a lower-grade PGM material and prior to the completion of the newly
commissioned final product cleaning circuit. This release of inventory does
not reflect the normally incurred full operational revenues and cost and
therefore skews the overall PGM unit cost and PGM revenues delivered. These
ounces are therefore excluded from the calculation of the reported PGM unit
cost.
Chrome operations achieved 609 734 chrome concentrate tonnes for H2 CY2021
(431 390 tonnes during H1 CY2021) on the back of increased operational
capacities following the commissioning of the new OBB chrome beneficiation
circuit, which was fully integrated with the Inyoni Facility during the period
under review. The significant increase in chrome production resulted in an
increase of 18% in revenue compared with the previous six-month reporting
period and increasing its contribution to overall Group revenue to 48% up from
22% during the comparable six- month period. The chrome operations operate on
a fixed margin contract of approximately 11% and is the facilitator to the
production of increased PGM rich discard that is processed by the newly
expanded Inyoni Facility.
In Zambia, copper production during the period increased to 1 314 tonnes of
copper (H1 CY2021: 774 tonnes) as part of ensuring operational readiness to
accept first copper concentrate production from Project Roan. Project Roan's
integrated copper concentrator neared completion during the reporting period
with early commissioning activities underway at the time of writing. The Roan
concentrator is targeted to ramp up during the current period to deliver a
targeted 10 000 tonnes of copper units annually. The fully operational Sable
Refinery delivered increased positive earnings as part of its operational
readiness activities with attributable operational earnings of £ 3.3 million
for H2 CY2021, compared with £ 1.8 million for H1 CY2021.
As announced on 7 March 2022, post the period under review, Jubilee received
notice from ACAM LP ("ACAM") to convert its remaining convertible loan notes
("Loan Notes"), totalling US$ 7.8 million (£5.89 million) of principal debt
and accrued interest, into new ordinary shares in the Company. The ACAM
convertible loan notes formed a key part in the funding of the acquisition and
successful recapitalisation of Jubilee's Sable Refinery which launched the
Zambian copper strategy. The conversion welcomes ACAM as a strategic
shareholder with keen interest to further support Jubilee's copper ambitions.
The settlement of all long-term debt and release of the associated security,
paves the way for Jubilee to leverage its balance sheet for structured debt
funding of its Zambian Copper Strategy. Both the Company's Zambian and its
South African operations carry no further long term secured debt.
PGM Operations - South Africa
Jubilee's PGM operations consist of the Inyoni PGM operations and the Windsor
PGM JV (operated under a JV agreement with Eland Platinum). Jubilee
successfully completed and commissioned the Inyoni Facility during November
2021. This investment has materially increased the Group's production capacity
of PGM ounces and, most importantly, increases the proportion of the ounces
produced that are fully attributable to Jubilee along with the associated
earnings compared with the considerable dilution of earnings caused by the
Windsor PGM JV where 40% of earnings was attributable to the JV partner.
The Inyoni Facility integrates the new 80 000 tonnes per month OBB Chrome
Plant with the expanded and upgraded Inyoni PGM operations. The Inyoni PGM
operations were also expanded to increase processing capacity by 45% to 75 000
tonnes per month and to diversify capacity with the addition of a multi feed
blending circuit and additional PGM recovery circuit. This has allowed for the
feeding and recovering of PGMs from a wide variety of feed material. This new
fully integrated chrome and PGM circuit has overcome the historical
limitations of only being able to process material from the then Hernic
operations and historical waste. The new integrated chrome and PGM facility
increases Jubilee's Inyoni operational capacity to 615 000 tonnes per annum
of chrome concentrate and 44 000 ounces of PGM per annum. This increased
Inyoni capacity reduces Jubilee reliance on the Windsor PGM JV, reducing
future earnings dilution and exposure to significantly reduced efficiencies.
Jubilee now holds an annual PGM capacity that consists of up to 44 000 PGM
ounces at Inyoni (previously only 30 000 PGM ounces) with the additional
option of accessing the Windsor PGM JV at a capacity of 16 000 PGM ounces -
this represents a material increase in the anticipated production of PGM
ounces which will be 100% attributable to Jubilee. Following the
recommissioning of the Inyoni Facility and the restocking of the in-process
pipeline, the expected production target for the full financial period is
readjusted to between 43 000 to 48 000 PGM ounces depending on the
supplementary production achieved for the remaining period through the Windsor
PGM JV (as previously announced).
The investment by Jubilee into the completed integrated project totalled £
20.5 million (ZAR 442 million) and illustrates Jubilee's continued commitment
to investing into its operations to create the foundation for sustained future
growth.
As announced on the 3(rd) and 4(th) of June 2021, Jubilee's current PGM
operational footprint has been largely focused on the Western Limb, a single
area of the two main PGM areas in South Africa. The Eastern Limb has been a
key focus for Jubilee to expand its PGM reach and operational capacity
following the completion of its fully integrated Inyoni facility. Jubilee
secured additional PGM Supply Agreements for the supply of material from the
Eastern Limb, giving Jubilee access to the Eastern Limb by offering a platform
to establish a dedicated integrated chrome and PGM facility and to pursue
further growth opportunities.
The Eastern Limb PGM Supply Agreements are mostly based on the LG6 chrome reef
known for its high rhodium and palladium content accounting for approximately
12% in the case of rhodium and 20% in the case of palladium of a produced PGM
ounce compared with as low as 7% and 16% respectively of other chrome reefs.
The PGM Supply Agreements have secured the rights to long term PGM feed supply
with the potential to produce up to 14 500 PGM ounces per annum, with further
growth opportunities available. Jubilee will initially process the increased
PGM feed at the Company's Inyoni Facility, while pursuing the implementation
of a dedicated processing facility in the Eastern Limb. The temporary increase
in costs to transport this material to our Western Limb Inyoni Facility is
offset by the strategic investment to secure material for the Eastern Limb
strategy and the long-term growth it offers.
During the period, the Company maintained its contractual obligations to
deliver the required PGM production, despite its Inyoni PGM operation only
being partially operational, to achieve 20 316 PGM ounces sold for H2 CY2021
(H1 CY2021: 21 975 ounces). The PGM results are skewed and impacted by the
staged decommissioning and recommissioning of the new integrated Inyoni
facility over the reporting period resulting in the one-off release of certain
lower PGM grade inventories and the refilling of the operational pipeline over
the period. The total PGM ounces sold included in-process stock released as
part of the recommissioning of the expanded and upgraded PGM facility. The
in-process stock was sold as a lower grade PGM material and prior to the
completion of the newly commissioned final product cleaning circuit. This
release of stock, which does not reflect the normal incurred full operational
cost, skews the PGM unit cost and PGM revenues delivered. These ounces are
excluded from the calculation of the reported PGM unit cost below.
Operational project unit costs expressed as US$ per PGM ounce produced
consisted of US$ 560 per ounce processing unit cost and a US$ 262 per PGM
ounce transport cost for the material sourced from the Eastern Limb. The
average PGM basket price realised per ounce sold reduced by 35% over the
period but showed a strong recovery at the end of the period under review
which, was sustained post the period under review.
The table below presents the combined unaudited operational revenue and
operational earnings performance for PGMs for H2 CY2021:
PGM PGM ounces delivered Project revenue (£'000) Project revenue (ZAR'000) Project earnings (£'000) Project earnings (ZAR'000) Jubilee attributable earnings (£'000) Jubilee attributable earnings (ZAR'000) Unit cost / PGM oz (US$)
H2 CY2020 28 187 36 593 776 032 26 959 572 782 26 387 560 450 470
H1 CY2021 21 975 47 155 956 869 36 725 746 657 36 459 741 335 658
H2 CY2021 20 316 24 330 497 640 14 966 306 117 13 064 267 208 822((i))
(i) Unit cost includes a transport cost component of US$ 262 per
PGM ounce to source material from the Eastern Limb
Chrome Operations - South Africa
In November 2020, Jubilee commenced the construction of an additional 80 000
tonnes per month OBB Chrome Plant, which on completion increased Jubilee's
overall processing capacity to 250 000 tonnes of chrome ore and tailings per
month (includes the Windsor 8 Chrome Plant, completed in 2020). The facility
consists of four integrated chrome recovery circuits to maximise chrome
efficiencies, which includes Jubilee's fine chrome operation.
The final integration of the new OBB Chrome Plant into the Inyoni Facility was
completed in November 2021. The operational levels of the OBB Chrome Plant
were largely maintained during the rebuild and commissioning of the Inyoni
Facility, with the produced PGM discard from the OBB Chrome Plant stockpiled
for later reintroduction into the Inyoni Facility.
Production of chrome concentrate increased by 41% to 609 734 tonnes,
illustrating the early contribution from the new OBB Chrome Plant, which was
brought on-line at the end of Q2 2021 and ramped-up during Q3 2021 before
being integrated with the Inyoni Facility during November 2021. The increased
chrome processing capacity directly contributes to increased PGM feed supply
as a tailings stream produced from the chrome processing circuit. Chrome
operational earnings for H2 CY2021 increased by 83% to £ 3.2 million from H1
CY2021. Chrome revenue for H2 CY2021 increased by 30% to £ 30 million from H1
CY2021.
The table below presents the combined unaudited operational revenue and
operational earnings performance for chrome for H2 CY2021:
CHROME Chromite concentrate produced Project revenue (£'000) Project revenue (ZAR'000) Project and Jubilee attributable earnings (£'000) Project and Jubilee attributable earnings (ZAR'000)
Tonnes
H2 CY2020 319 834 11 565 244 435 1 320 28 522
H1 CY2021 431 390 23 340 468 153 1 762 35 576
H2 CY2021 609 734 30 436 622 548 3 217 65 794
Chrome prices continued to be volatile during the period under review due to
the disruptions in the supply chain over the sixth-month period. These price
fluctuations are expected to continue over the next six months as the world
emerges from the Covid-19 pandemic and supply and demand fundamentals are
better matched.
Copper Operations - Zambia
The roll-out of Jubilee's copper and cobalt strategy offers the potential of
significant continued earnings growth in addition to the achievements of its
PGM and chrome operations.
The Company's Kabwe Project, combined with its multi-metal Sable Refinery,
establishes Jubilee's fully integrated multi-metal recovery and refining
operational footprint in Zambia. The Sable Refinery, which acts as a central
processing facility for third-party material in the region, gives access to a
current resource comprising of an estimated 6.4 million tonnes of surface
waste assets containing zinc, lead and vanadium pentoxide in addition to the
approximately 300 million tonnes of copper and cobalt tailings secured in
2020.
During 2020, Jubilee entered into joint venture agreements to secure rights to
process over 300 million tonnes of copper and cobalt containing tailings in
Zambia. The copper and cobalt tailings are located in three central locations
named Project Roan, Project Lechwe and Project Elephant.
Jubilee aims to construct a processing facility at each of the three
locations. The scope of the processing facilities will be determined by the
refining capacity at its Sable Refinery, currently standing at 14 000 tonnes
per annum. Jubilee has a set target to expand its access to refining
capacity, to achieve a targeted 25 000 tonnes of copper units per annum.
During H1 2021, the first of the processing facilities entered its
construction phase at Project Roan, which targets an annual production rate of
10 000 tonnes of equivalent copper units.
The Project Roan copper concentrator neared completion during the reporting
period with early commissioning activities commencing. The completion of
construction has commenced well post the period, with the final integration of
the copper oxide and copper sulphide circuit targeted for completion during
March 2022 to commence the ramp-up of the fully integrated circuit by May
2022.
Copper production at Jubilee's Sable Refinery increased by 70% to 1 314 tonnes
compared with 774 tonnes for H1 CY2021 as part of the process to ensure
operational readiness to accept first copper concentrate production from
Jubilee's Project Roan.
The Sable Refinery reported revenues from the sale of copper cathode of £ 8.5
million (ZAR 174 million) up 66% from H1 CY2021 and positive earnings as part
of its operational readiness activities with attributable operational earnings
of £ 3.3 million (ZAR 67 million) up 72% from H1 CY2021.
Project Lechwe Update - Zambia
During the period, the completion of the design work for the Company's second
copper processing facility, Project Lechwe, whereby Jubilee has secured the
rights to approximately 150 million tonnes of copper containing surface
tailings, further progressed with final pilot runs under way to confirm the
design work. Project Lechwe targets to reach the production of 7 500 copper
units per annum in addition to Project Roan by Q2 of CY2023.
The table below presents the combined unaudited operational revenue and
operational earnings performance for copper for H2 CY2021:
COPPER Copper units produced Project revenue (£'000) Project revenue (ZAR'000) Project and Jubilee attributable earnings (£'000) Project and Jubilee attributable earnings (ZAR'000)
Tonnes
H2 CY2020 614 3 791 80 648 1 793 38 365
H1 CY2021 774 5 128 101 824 1 897 37 732
H2 CY2021 1 314 8 499 173 847 3 260 66 676
ENVIRONMENTAL, SOCIAL AND GOVERNANCE ("ESG")
Sustainability is core to the Company's business as a metal recovery company.
By processing remnant mining residues and waste material, we are not only
addressing the physical legacies of historical mining operations by
rehabilitating the environment and clearing away pollution, but we are also
doing so in a manner that improves the quality of life of those living in
proximity of these installations. Jubilee is committed to operating in a
manner that is transparent, environmentally responsible, ensures the longevity
of our operations, and supports the socio-economic uplift of our host
communities.
As a company involved in a primary sector, Jubilee recognises that we have an
opportunity and role to play in positively contributing to broader
sustainability. The United Nations' Sustainable Development Goals ("SDGs")
provide a useful framework by which to assess and monitor our efforts towards
sustainable development, as well as our ESG performance.
The SDGs, which came into effect in January 2016, are a collection of 17
interlinked global goals and targets designed to be a "blueprint to achieve a
better and more sustainable future for all". They were developed to support
the United Nations 2030 Agenda which ultimately aims to:
1. end poverty and inequality;
2. protect the planet; and
3. ensure that all people enjoy peace and prosperity.
We have interrogated the SDGs to identify those most aligned with our core
business and with our responsibilities as a responsible corporate citizen.
These include:
SDG 3: Good Health and Wellbeing - The safety and well-being of Jubilee's
employees and contractors is our highest priority, and, to this end, we have
maintained a strong track record of good employee health and safety. Group
safety performance maintained with LTIFR equalled 0.323 for the period and
zero group fatalities recorded.
SDG 4: Quality Education - Jubilee is committed to ensuring inclusive and
equitable quality education and helping to promote lifelong learning
opportunities for all. We provide bursary opportunities to a number of
community residents, assist groups of students from local communities with
portable skills training, and sponsor children with much needed stationery
supplies.
SDG 6: Clean Water and Sanitation - As we recognise access to water is a basic
human right, we have invested in water supply projects in our host communities
to ensure access to clean water and sanitation.
SDG 8: Decent Work and Economic Growth - Jubilee believes in promoting
sustained, inclusive and sustainable economic growth through the provision of
productive and decent employment opportunities. We are committed to employing
local labour in the areas of our operations.
SDG 12: Responsible Consumption and Production - The processing and clearing
of mine waste material have the advantage of reducing mining's carbon
footprint. As this is Jubilees principle activity, we are at the forefront of
global efforts to reduce carbon emissions and tackle climate change.
Water consumption rate per PGM ounce produced was 3.23 m(3)/oz for the period
under review.
Power consumption per PGM ounce produced was 770 KWh/oz
SDG 13: Climate Action - The processing and clearing of mine waste material
have the advantage of reducing mining's carbon footprint. As this is Jubilee's
principle activity, we ae at the forefront of global efforts to reduce carbon
emissions and tackle climate change.
SDG 17: Partnerships for the Goals - Jubilee recognises the value in
partnering with other organisations, particularly government institutions, in
furthering the goals of sustainable development. One of our key partnerships
is with the Zambia Mining and Environmental Remediation and Improvement
Project, a government initiative to reduce environmental health risks to the
local population in critically polluted mining areas in Zambia, including the
Kabwe municipality.
Environment
Responsible and sustainable environmental stewardship is core to our business
as a metal recovery company. By processing remnant mining residues and waste
material we are addressing the physical legacies of historical mining
operations by rehabilitating the environment and clearing away pollution.
In ensuring good environmental stewardship remains at the heart of our
business, Jubilee endeavours to:
· improve waste minimisation measures, energy efficiencies and air,
land and management systems;
· manage and mitigate the impact on affected natural ecosystems;
· contribute towards biodiversity conservation;
· ensure effective and appropriate land rehabilitation; and
· ensure that comprehensive disaster management plans are in place.
A key illustration of our commitment to good environmental stewardship is our
membership of the Zambia Mining and Environmental Remediation and Improvement
Project, a government initiative to reduce environmental health risks to the
local population in critically polluted mining areas in Zambia, including the
Kabwe municipality.
Key environmental legislation regulates the mining industry in South Africa
and Jubilee aims to maintain a comprehensive environmental management plan for
current and future operations. These plans address the risks associated with
current and legacy mining waste.
Social
Jubilee Metals believes it has a responsibility to protect and improve the
lives of employee and community stakeholders. We take every opportunity to
enhance Jubilee's social practices and policies.
Governance
Jubilee is committed to maintaining the highest standards in corporate
governance throughout its operations and to ensure all its practices are
conducted transparently, ethically and efficiently. The Board has oversight
and overall accountability for guiding the strategic direction of the Company,
maintaining an ethical culture and effective control of its operations.
Jubilee believes in scrutinising all aspects of its business and reflecting,
analysing and improving its procedures to maintain the continued success of
the business and deliver value to shareholders. Therefore, and in accordance
with the AIM Rules for Companies, the Jubilee has chosen to formalise its
governance policies by complying with the UK's Quoted Companies Alliance
Corporate Governance Code.
For further information visit www.jubileemetalsgroup.com
(http://www.jubileemetalsgroup.com) , follow Jubilee on Twitter
(@Jubilee_Metals) or
Jubilee Metals Group PLC
Colin Bird/Leon Coetzer
Tel +44 (0) 20 7584 2155 / Tel +27 (0) 11 465 1913
Nominated Adviser - SPARK Advisory Partners Limited
Andrew Emmott/James Keeshan
Tel: +44 (0) 20 3368 3555
Broker - Shard Capital Partners LLP
Damon Heath/Erik Woolgar
Tel +44 (0) 20 7186 9900
Joint Broker - WHIreland
Harry Ansell/Katy Mitchell
Tel: +44 (0) 20 7220 1670/+44 (0) 113 394 6618
JSE Sponsor - Questco Corporate Advisory Proprietary Limited
Sharon Owens
Tel: +27 (11) 011 9212
PR & IR Adviser - Tavistock
Jos Simson/ Gareth Tredway/Charles Vivian
Tel: +44 (0) 207 920 3150
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2021
Consolidated Statements of Comprehensive Income for the six months ended 31
December 2021
Unaudited Unaudited Audited
6 months to 6 months to 12 months to
31 December 31 December ended 30 June
2021 2020 2021
Note £ '000 £ '000 £ '000
Revenue 63 265 53 438 132 845
Cost of sales (43 725) (22 492) (61 734)
Gross profit 19 540 30 946 71 111
Operating costs (10 918) (6 298) (25 728)
Other income - 850 -
Operating profit 8 622 25 498 45 383
Investment income 857 165 500
Fair value adjustments 658 - (1 161)
Finance costs (753) (1 167) (1 674)
Share of loss from associates (48) (57) (24)
Profit before taxation 9 336 24 440 43 024
Taxation (966) (5 181) (2 793)
Profit for the period 8 370 19 259 40 231
Attributable to:
Owners of the parent 8 060 19 135 39 600
Non-controlling interest 310 124 631
8 370 19 259 40 231
Reconciliation of other comprehensive income:
Other comprehensive income
Profit for the period 8 370 19 259 40 231
Loss on translation of foreign subsidiaries 10 183 794 (3 864)
Total comprehensive income 18 553 20 053 36 368
Attributable to:
Owners of the parent 18 315 19 906 35 708
Non-controlling interest 238 147 660
18 553 20 053 36 368
Weighted average number of shares ('000) 2 345 238 2 112 818 2 185 346
Earnings per share (pence) 2 0.34 0.91 1.81
Diluted profit for the period 8 389 19 135 40 862
Diluted weighted average number of shares ('000) 2 673 482 2 161 356 2 226 089
Diluted earnings per share (pence) 0.31 0.89 1.78
Consolidated Statements of Financial Position as at 31 December 2021
Unaudited Unaudited Audited
6 months to 6 months to 12 months to
31 December 31 December 30 June
2021 2020 2021
Note £ '000 £ '000 £ '000
Assets
Non-current assets
Property, plant and equipment 52 211 22 740 33 011
Intangible assets 61 898 70 482 58 831
Investment in associate 379 394 427
Investment in joint operations 5 9 048 - -
Other financial assets 6 12 381 5 378 7 234
Deferred tax 10 709 - 9 464
Total non-current assets 146 626 98 993 108 967
Current assets
Inventories 18 955 8 292 17 766
Other financial assets 828 - 544
Current tax 351 - 466
Deferred tax - 3 951 -
Trade and other receivables 56 749 17 469 38 127
Contract assets ((i)) 7 733 14 427 9 154
Cash and cash equivalents 21 494 9 767 19 643
Total current assets 106 110 53 906 85 700
Total assets 252 736 152 899 194 667
Equity and liabilities
Share capital 7 148 628 114 628 120 013
Reserves 16 890 11 089 6 613
Accumulated loss 14 814 (14 066) 6 754
Total equity before non-controlling interest 180 332 111 650 133 380
Non-controlling interest 3 401 2 626 3 163
Total equity 183 733 114 276 136 543
Non-current liabilities
Other financial liabilities 2 804 9 575 2 804
Deferred tax liability 11 419 10 312 14 997
Long term provisions 1 067 544 721
Lease liability 547 260 164
Total non-current liabilities 15 837 20 692 18 686
Current liabilities
Other financial liabilities 5 298 1 062 5 337
Trade and other payables 36 754 10 785 29 339
Contract liabilities ((ii)) - 3 676 -
Revolving credit facility 7 008 - 3 839
Current tax payable 4 106 2 409 923
Total current liabilities 53 166 17 931 39 438
Total liabilities 69 003 38 623 58 124
Total equity and liabilities 252 736 152 899 194 667
(i) Revenue recognised at the period end for inventories sold and
delivered, but subject to final pricing are recognised as contract assets
(ii) Payments received in advance for concentrate that is only
delivered and invoiced post the year end are recognised as contract
liabilities
Consolidated Statements of Changes in Equity as at 31 December 2021
Figures in pound sterling (£ '000) Share capital Merger reserve Share based payment reserve Convertible instrument reserve Currency translation reserve Total reserves Accumulated loss Total attributable to parent of equity holders Non-controlling interest Total equity
Balance at 1 July 2020 114 585 23 184 2 521 203 (15 590) 10 318 (33 201) 91 702 2 479 94 181
Profit for the year - - - - - - 39 600 39 600 660 40 260
Other comprehensive income - - - - (3 892) (3 892) - (3 892) - (3 892)
Total comprehensive income for the period - - - - (3 892) (3 892) 39 600 35 708 660 36 368
Issue of share capital net of costs 5 428 - - - - 5 428 - 5 428
Share warrants exercised - - (233) - - (233) 233 - -
Share warrants issued - - 162 - - 162 - 162 - 162
Share options exercised/lapsed - - (157) - - (157) 146 (11) - (11)
Share options granted - - 415 - - 415 - 415 - 415
Changes in ownership no control lost - - - - - (24) (24) 24 -
Total changes 5 428 - 187 - (3 892) (3 705) 39 955 41 678 683 42 362
Balance at 1 July 2021 120 013 23 184 2 708 203 (19 482) 6 613 6 754 133 380 3 163 136 543
Profit for the year - - - - 8 060 8 060 238 8 298
Other comprehensive income - - - - 10 255 10 255 - 10 255 - 10 255
Total comprehensive income for the period - - - - 10 255 10 255 8 060 18 315 238 18 553
Issue of share capital net of costs 28 615 - - - - - - 28 615 28 615
Share warrants issued - - - - - - - - - -
Share options expired/exercised - - - - - - - - - -
Share options granted - - 22 - - 22 - 22 - 22
Total changes 28 615 - 22 - 10 255 10 277 8 060 46 952 238 47 190
Balance at 31 December 2021 148 628 23 184 2 730 203 (9 227) 16 890 14 814 180 332 3 401 183 733
Consolidated Statements of Cash flow for the six months ended 31 December 2021
Unaudited Unaudited Audited
6 months 6 months 12 months
31 December 31 December 30 June
2021 2020 2021
£ '000 £ '000 £ '000
Cash flows from operating activities
Profit before taxation 9 336 24 440 43 024
Adjustments for:
Depreciation and amortisation 4 432 3 243 3 893
(Profit)/loss on sale of non-current assets - (10) 76
Investment income (858) (73) (500)
Finance cost 753 1 167 1 674
Results from equity accounted investments 48 57 24
Share based payments 22 - 406
Fair value adjustments (658) - 1 161
Other movements 346 - 103
Working capital changes
(Increase)/decrease in inventories (1 188) (5 507) (3 664)
(Increase)/decrease in receivables (17 201) (12 462) (30 553)
Increase/(decrease) in payables 7 416 507 17 359
Cash generated from operations 2 448 11 362 33 003
Investment income 858 73 500
Finance cost (753) (1 167) (1 674)
Tax paid (210) (3 580) (8 035)
Net cash from operating activities 2 343 6 689 23 794
Cash flows from investing activities
Purchase of intangible assets (1 945) (786) (1 942)
Purchase of property, plant and equipment (18 600) (4 799) (17 866)
Purchase of rights to copper tails - (1 606) -
Sale of property, plant and equipment - 10 (8)
Increase in other financial assets (5 431) (35) -
Investment in joint operations (9 047) - -
Net cash used in investing activities (35 023) (7 216) (19 816)
Cash flows from financing activities
Proceeds from share issues net of costs 28 615 43 1 144
Proceeds from revolving credit facilities 3 169 - 3 839
Proceeds from trade financing arrangements - - 2 526
Increase in loans to joint ventures - - (4 372)
Finance lease payments (341) (150) (220)
Increase/(decrease) in other financial liabilities 618 (1 253) (1 795)
Net cash generated from financing activities 32 061 (1 360) 1 123
Net decrease in cash and cash equivalents (619) (1 887) 5 101
Cash and cash equivalents at beginning of the period 19 643 9 948 9 948
Effects of foreign exchange 2 470 1 706 4 594
Cash and cash equivalents at the end of the period 21 494 9 767 19 643
NOTES TO THE UNAUDITED INTERIM RESULTS
1. Basis of
preparation
The Group unaudited interim results for the 6 months ended 31 December 2021
have been prepared using the accounting policies applied by the company in its
30 June 2021 annual report which are in accordance with in accordance with
International Accounting Standards in conformity with the requirements of the
Companies Act 2006 issued by the International Accounting Standards Board
("IASB") as adopted for use in the EU ("IFRS, including the SAICA financial
reporting guides as issued by the Accounting Practices Committee, IAS 34 -
Interim Financial Reporting, the Listings Requirements of the JSE Limited, the
AIM rules of the London Stock Exchange and the 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 annual report for the year ended
30 June 2021 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 period. The financial information for the year ended 30
June 2021 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 2021 are presented as
follows:
Unaudited Unaudited Audited
6 months to 6 months to 12 months to
31 December 31 December 30 June
2021 2020 2021
Earnings for the period £ '000 8 060 19 135 39 600
Weighted average number of shares in issue ('000)
2 345 238 2 112 818 2 185 346
Diluted weighted average number of shares in issue ('000)
2 673 482 2 161 356 2 226 089
Earnings per share (pence) 0.34 0.91 1.81
Diluted earnings per share (pence) 0.31 0.89 1.78
Earnings per share (ZAR cents) 7.03 19.21 37.50
Diluted earnings per share (ZAR cents) 6.42 18.78 36.82
The Group reported a net asset value of 7.6 (2020: 5.4) pence per share (ZAR
162.6 (2020: ZAR 108.2 cents per share)) and a net tangible asset value per
share of 5 pence (2020: 2.1) per share (ZAR 107.8 (2020: ZAR 41.5 cents per
share)). The total number of shares in issue as at 31 December 2021
were 2 429 659 million (2020: 2 113 204 million).
3. Dividends
No dividends were declared during the period under review (2020: nil).
4. Business
segments
In the opinion of the Directors, the operations of the Group companies
comprise of four reporting segments being:
· the processing of PGM, chrome and copper containing materials
("Metals Processing");
· a combination of targeted process consulting and developing, focussed
on the development and implementation of process solutions, specifically
targeting both liquid and solid waste streams from mine processes. This
includes existing pilot operations as part of the process development cycle to
provide mature solutions which includes extractive-metallurgy, pyro-metallurgy
and hydro-metallurgy ("Business Development");
· the exploration of PGMs ("Exploration"); and
· the parent company operates a head office based in the United
Kingdom, which incurs certain administration and corporate costs
("Corporate").
· 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 6 months ended 31 December 2021
Figures in pound sterling Metals processing Business development Exploration Corporate Total
(£ '000)
Total revenues 63 265 - - - 63 265
Cost of sales (43 707) - (18) - (43 725)
Forex losses - - - - -
Profit/(loss) before taxation 11 482 (1 236) (18) (892) 9 336
Taxation (966) - - - (966)
Profit/(loss) after taxation 10 516 (1 236) (18) (892) 8 370
Interest received 849 - - 9 858
Interest paid (753) - - - (753)
Depreciation and amortisation (3 328) (1 104) - - (4 432)
Total assets (204 735) (2 733) (33 146) (12 122) (252 736)
Total liabilities 62 948 - 4 789 1 266 69 003
Segment report for the 6 months ended 31 December 2020
Figures in pound sterling Metals processing Exploration and development Corporate Total
(£ '000)
Total revenues 53 438 - - 53 438
Cost of sales (22 492) - - (22 492)
Forex losses 45 - (269) (223)
Profit/(loss) before taxation 25 236 (8) (789) 24 440
Taxation (5 181) - - (5 181)
Profit/(loss) after taxation 20 056 (8) (789) 19 259
Interest received 151 - 14 165
Interest paid (1 167) - - (1 167)
Depreciation and amortisation (3 237) - - (3 237)
Total assets (112 636) (38 242) (2 020) (152 899)
Total liabilities 33 462 4 596 565 38 623
Segment report for the year ended 30 June 2021
Figures in pound sterling Metals processing Business development Exploration Corporate Total
(£ '000)
Total revenues 132 845 - - - 132 845
Cost of sales (62 398) 665 - - (61 733)
Forex profits/(losses) - - - - -
Profit/(loss) before taxation 47 255 566 (4) (4 793) 43 024
Taxation (2 793) - - - (2 793)
Profit/(loss) after taxation 44 462 566 (4) (4 793) 40 231
Interest received 480 - - 20 500
Interest paid (1 674) - - - (1 674)
Depreciation and amortisation (5 111) - - - (5 111)
Total assets (154 960) (3 630) (34 627) 145 (193 071)
Total liabilities 50 721 - 4 445 1 362 56 528
5. Investments in
joint ventures
A joint venture is a joint arrangement in which Jubilee shares control and has
rights to the assets, and obligations for the liabilities, relating to the
joint venture agreement. During September 2021 Jubilee announced significant
progress at its Copper and Cobalt tailings projects in Zambia with the
successful execution of three strategic transactions (the "Transactions")
which significantly increased Jubilee's beneficial interest across the
Company's copper and cobalt tailings projects in Zambia. The Transactions
include Project Elephant (Kitwe Tailings Project), Project Roan (Ndola
Tailings Project) and the Mufulira Project (collectively, the "Projects").
Completion of the Transactions is subject to fulfilment of certain conditions
precedent that are normal for transactions of this nature including regulatory
approvals and consent.
At the period end Jubilee had the following investments in joint ventures:
Unaudited Unaudited Audited
6 months 6 months 12 months to
to to
31 December 31 December 30 June
2021 2020 2021
£'000 £'000 £'000
Mufulira Project 849 - -
Kitwe Tailings Project 4 204 - -
Ndola Tailings Project 3 995 - -
Total investments in joint ventures 9 048 - -
5.1 Mufulira Project
As a result of Transactions, Jubilee's interest in the Mufulira Project
increased to a 97% beneficial interest in the project. The Mufulira Project
material which is expected to hold similar characteristics to Project
Elephant, is conveniently located near the processing facilities targeted for
Project Elephant.
5.2 Kitwe Tailings Project
At Project Elephant (Northern Refinery Strategy), which is located in the
Kitwe area and targets the production of 10 200 copper units per annum,
Jubilee's subsidiary Braemore acquired a further 23% beneficial interest in
the TD52 tailings dam portion of the overall project, increasing Jubilee's
interest to 80.75%. TD52 holds the highest contained copper and cobalt within
the larger Project Elephant's 114 million tonnes tailings resource at 0.7%
Copper and 0.08% Cobalt.
5.3 Ndola Tailings Project
Project Roan (Southern Refinery Strategy) is rapidly nearing completion
targeting to commence commissioning activities during Q2 of 2022. On
completion, the transaction relating to Project Roan will increase Jubilee's
beneficial interest from 80% to 100%. The Project Roan transaction further
includes additional rights to an estimated further 6.6 million tonnes of
copper tailings near the processing facility while holding the option to
convert the lease agreement of the property where the processing facility is
located to direct ownership of the property. As previously announced, Project
Roan's processing facility is well under way which targets a ramp-up over
three phases to reach full production to a rate of approximately 10 000
tonnes of equivalent copper units per annum.
6. Other financial
assets
Unaudited Unaudited Audited
6 months 6 months 12 months to
to to
31 December 31 December 30 June
2021 2020 2021
£'000 £'000 £'000
At amortised cost
Horizon Corporation Limited - Star Tanganika 4 027 3 161 3 710
Horizon Mining Limited - Kitwe Project 7 383 - 2 626
Mash Rock Mining (Pty) Ltd 435 - 420
11 845 3 161 6 756
Loans and receivables
Amava Minerals 593 - 544
Kgato Investments (Pty) Ltd 536 373 478
Other 235 1 844 -
1 364 2 217 1 021
Total other financial assets 13 209 5 378 7 778
Current assets
Loans receivable 828 - 544
Non-current assets
Loans receivable 536 2 217 478
At amortised cost 11 845 3 161 6 756
12 381 5 378 7 234
Total other financial assets 13 209 5 378 7 778
7. Share Capital
and warrants
The share capital of the Company is divided into an unlimited number of
ordinary shares of £0.01 each.
Unaudited Unaudited Audited
6 months 6 months 12 months
ended 31 December ended 31 December ended 30
June
2021 2020 2021
£'000 £'000 £'000
Ordinary shares of 1 pence each 24 297 21 132 22 425
Share premium 124 331 93 496 97 588
Total issued capital 148 628 114 628 120 013
During the period under review the Company issued the following new Jubilee
ordinary shares:
Number of shares ('000) Issue price Purpose
(pence)
Opening balance 2 242 510
21 September 2021 187 149 16.03 Placing for cash
Balance at the end of the period 2 429 659
During the period under review the Company issued 187 149 million new Jubilee
shares to raise
£ 30 million before expenses of £ 1.4 million which were recognised in the
share premium account
in accordance with section 610(2) of the United Kingdom Companies Act 2006.
Post the period under review the Company issued the following new Jubilee
shares:
Number of shares ('000) Issue price Purpose
(pence)
Opening balance 2 429 659
11 March 2022 209 448 2.81 Conversion of debt
11 March 2022 2 944 3.38 Warrant exercise
Balance at the end of the period 2 642 051
Warrants
At the date of this report the Company had the following warrants outstanding:
Number of warrants Issue date Subscription price (pence) Expiry date Share price at issue date (pence)
63 661 944 2018/01/19 6.12 2023/01/19 3.55
10 000 000 2018/12/28 3.38 2023/01/19 2.40
7 818 750 2019/11/19 4.00 2022/11/19 4.13
750 000 2020/06/22 3.40 2023/06/22 3.90
4 036 431 2021/01/21 13.00 2024/01/21 13.20
86 267 125
At 30 June 2021 and 31 December 2021 the Company had the following warrants
outstanding:
Number of warrants Issue date Subscription price (pence) Expiry date Share price at issue date (pence)
63 661 944 2018/01/19 6.12 2023/01/19 3.55
12 944 984 2018/12/28 3.38 2023/01/19 2.40
7 818 750 2019/11/19 4.00 2022/11/19 4.13
750 000 2020/06/22 3.40 2023/06/22 3.90
4 036 431 2021/01/21 13.00 2024/01/21 13.20
89 212 109
At 31 December 2020 the Company had the following warrants outstanding:
Number of warrants Issue date Subscription price (pence) Expiry date Share price at issue date (pence)
63 800 833 2018/01/19 6.12 2023/01/19 3.55
12 944 984 2018/12/28 3.38 2023/01/19 2.40
7 818 750 2019/11/19 4.00 2022/11/19 4.13
750 000 2020/06/22 3.40 2023/06/22 3.90
85 314 567
8. Going concern
The financial position of the Group, its cash flows, liquidity position and
debt facilities are set out in the Group's condensed consolidated interim
results for the six months ended 31 December 2021. The Group reported a cash
position of £ 21.5 million at the period end (31 December 2020: £ 9.8
million and 30 June 2021: £ 19.6 million).
The Group maintained sufficient liquidity throughout the period under review.
It also has access to external funding through revolving credit facilities and
metal trade finance. After reviewing the effects of COVID-19, the financial
position, operational performance, budgets and forecasts as well as the timing
of cash flows, the directors are satisfied that the Company and the Group's
liquidity position is sufficient to sustain its operations for the foreseeable
future. For this reason, the Group continues to adopt the going-concern basis
in the preparation of its financial statements, including these condensed
consolidated interim financial statements.
9. Events after the
reporting date
9.1 Conversion of Loan Notes
On 4 March 2022, further to the US$ 8 million (ZAR 127 million at current
conversion rates) secured debt funded by ACAM LP on 21 March 2019, the Company
has received notice from ACAM to convert all outstanding Loan Notes into
equity totalling US$ 7.8 million (£5.89 million) (ZAR 127 million) into
209 448 million Conversion Shares at a price of 2.81 pence (ZAR 43 cents) per
Conversion Share. This follows the conversion of Loan Notes totalling US$ 2.5
million (ZAR 38.5 million) into ordinary shares in the Company at a price of
2.81 pence (ZAR 43 cents) per ordinary share as announced on 15 January 2021,
and therefore fully discharging the debt to ACAM.
9.2 Warrants exercised
The Company received notification from a warrant holder on 4 March 2022 to
exercise 2 944 784 existing warrants of the Company, representing 0.11 % of
the enlarged issued share capital of Jubilee at a price of 3.375 pence (ZAR 69
cents) per share amounting to a cash value of £ 99 393 (ZAR 2 027 617).
10. Unaudited results
These interim results have not been reviewed or audited by the Group's
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)
The financial information in this announcement is unaudited.
United Kingdom
24 March 2022
Annexure 1
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 loss reported and headline earnings used
in the calculation of headline earnings per share:
Reconciliation of headline earnings per share Unaudited Unaudited Audited
6 months to 6 months to 12 months to
Dec-21 Dec-20 Jun-21
£ '000 £ '000 £ '000
Profit attributable to ordinary equity holders of the parent 8 060 19 135 39 600
Adjusted for:
Share of impairment loss of equity accounted associate - - 31
Fair value adjustments (658) - 1 161
Total tax effects of adjustments - - (7)
Headline earnings 7 402 19 135 40 785
Weighted average number of shares in issue ('000) 2 345 238 2 112 818 2 185 346
Diluted weighted average number of shares in issue ('000) 2 673 482 2 161 356 2 226 089
Headline earnings per share (pence) 0.32 0.91 1.87
Headline earnings per share (ZAR cents) 6.46 19.21 38.62
Diluted headline earnings per share (pence) 0.31 0.89 1.83
Diluted headline earnings per share (ZAR cents) 6.42 18.78 37.92
Average conversion rate used for the period under review £:ZAR 0.049 0.047 0.048
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