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JLP Jubilee Metals Group Plc

5.60
0.15 (2.75%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Jubilee Metals Group Plc LSE:JLP London Ordinary Share GB0031852162 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.15 2.75% 5.60 5.50 5.60 5.80 5.55 5.55 6,010,693 16:35:05
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Miscellaneous Metal Ores,nec 141.93M 12.91M 0.0047 12.02 154.7M

Jubilee Platinum PLC Notice of AGM & Audited results for the year (1140W)

10/11/2017 7:00am

UK Regulatory


Jubilee Metals (LSE:JLP)
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TIDMJLP

RNS Number : 1140W

Jubilee Platinum PLC

10 November 2017

Registration number (4459850)

AltX share code: JBL

AIM share code: JLP

ISIN: GB0031852162

10 November 2017

Jubilee Platinum PLC

("Jubilee" or the "Company")

Notice of Annual General Meeting

Audited results for the year ended 30 June 2017

The directors of AIM traded Jubilee, the Mine-to-Metals company, are pleased to release its audited results for the year ended 30 June 2017.

Notice of Annual General Meeting

The Company also hereby gives notice of the Company's 2017 Annual General Meeting, which will be held on 4 December 2017 at 11:00 am UK time at Fladgate LLP, 16 Great Queen Street, London, WC2B 5DG to transact the business as stated in the notice of Annual General Meeting. The Group's Annual Report for the year ended 30 June 2017 has been posted to the website, www.jubileeplatinum.com, with the notice of the Company's 2017 Annual General Meeting. Shareholders are advised that the Notice of Annual General Meeting, including a Form of Proxy, for the year ended 30 June 2017 has been posted to Jubilee shareholders today, 10 November 2017.

Highlights for period under review

Financial Highlights

-- Group revenue up to GBP 9.81 million (ZAR 169.59 million)(1) ((2016: GBP 1.47 million (ZAR 25.41 million))

-- Group loss for the year from continuing operations, excluding once off non-cash items (2) , decreased by 61.87 % to GBP 2.10 million (ZAR 36.42 million) ((2016: loss of GBP 3.41 million (ZAR 58.97 million))

-- Group loss per share from operations, excluding once off non-cash items(2) is 0.25 pence (ZAR 4.27 cents) ((2016: 0.38 pence) (2016: ZAR 8.07 cents))

-- Operating expenses from continuing operations down 26.69 % to GBP 3.44 million (ZAR 59.46 million) ((2016: GBP 4.69 million) (ZAR 81.06 million))

(1= for income statement purposes conversions are at the average GBP: ZAR rate for the period under review and for balance sheet purposes conversions are at the closing rate as at the period end. All other conversions are at rates as at the time announced.)

2= Impairment of intangible assets totaled GBP8.47 million, net of tax, which if included equates to a group loss per share of 1.07 pence (ZAR 18.55 cents)

Operational Highlights

-- The DCM Operations deliver first full year of production with total chrome concentrate produced of 78 588 tonnes, resulting in revenue of GBP 9.37 million (ZAR 161.94 million)

-- The Hernic PGM and chrome project is bought into operation and delivers its first saleable PGM concentrate in April 2017 producing 808 PGM(1) ounces by end June 2017 and resulting in revenue of GBP 0.43 million (ZAR 7.43 million)

-- Jubilee acquires the rights to the PGMs contained in the PlatCro material estimated at 1 400 000 tonnes of PGM containing surface material

   --     The Tjate Platinum project is awarded its mining right in March 2017 

1= Precious Group Metals ( platinum, palladium, rhodium, iridium, ruthenium and gold)

Highlights post the period under review

-- DCM chrome and PGM processing agreement replaced with a 50/50 partnership agreement on all chrome concentrate produced at DCM while reaffirming its exclusive PGM right

-- 3(rd) Party chrome ore processing agreement executed with DCM targeting the of up to 40 000 tonnes per month of chrome ore to supplement the DCM material

-- Joint Venture agreement executed with BMR Group PLC for the Kabwe lead, zinc and vanadium surface processing project estimated to contain 6 400 000 tonnes of lead, zinc and vanadium rich material at surface

-- Jubilee executes a USD 50 million funding agreement to support the Company's targeted project build program

Overview

Jubilee has delivered a remarkable operational performance during the period under review with continued strong growth post the period under review. The period has seen Jubilee being awarded the mining licence for the Tjate platinum project and ramping-up the DCM chrome operation to reach 78 588 tonnes of saleable chrome concentrate, while delivering the Hernic chrome and platinum recovery plant targeting 660 000 feed tonnes per annum.

Post the period under review, Jubilee continued acquiring further access to valuable surface resources which included the acquisition of the PGMs contained in the surface material at PlatCro Minerals ("PlatCro") in South Africa as well as entering into a joint venture agreement with BMR Group PLC to execute the Kabwe surface processing project targeting the recovery of lead, zinc and vanadium from surface material in Zambia. These transactions extended Jubilee's reach beyond the borders of South Africa into both PGMs and base metals leveraging off its in-house metallurgical skill, project execution track record and operational performance.

Jubilee now holds a project portfolio containing low risk, high return, short term projects which includes:

-- Platinum project to recover PGMs from the estimated 1 400 000 tonnes surface stock at PlatCro in South Africa

-- Platinum project to recover PGMs from the estimated 800 000 tonnes at surface at DCM in South Africa

-- Kabwe project to recover lead, zinc and vanadium from the estimated 6 400 000 tonnes (3 200 000 tonnes JORC compliant) surface tailings at the Kabwe operations in Zambia

The Company continues to actively pursue further projects consistent with its stated mission to grow the Company's processing capacity of at or near-surface material.

Jubilee has responded well to challenges in the global PGM markets as reflected in PGM prices by diversifying its earnings generation to include chrome and PGMs and expanding its project portfolio into base metals such as lead, zinc and vanadium. Jubilee's surface projects remain robust at these metal prices as reflected in Jubilee's Q3 2017 update, recording a unit cost per PGM ounce produced of USD 476, which is set to reduce further as the project continues to increase its production. Jubilee's surface projects has the benefit of not being exposed to mining cost or associated mining risk.

Jubilee's operations

Hernic - South Africa

The Hernic project is the second of the Company's operating PGM-bearing surface tailings projects and targets processing in excess of 660 000 feed tonnes tailings per year. The project has access to an estimated 3 000 000 tonnes of PGM material, to which Hernic continues to add further current arisings material. The project, which is estimated to contain in excess of 224 000 (3PGM + Au) ounces, is the largest PGM beneficiation plant in South Africa to process surface chrome tailings.

The Hernic project commenced construction in June 2016 with commissioning starting in January 2017 and delivering its first PGM ounces to market in April 2017. Total project capital spent on the targeted 660 000 tonnes per annum chrome and PGM processing facility reached GBP 12.97 million (ZAR 220 million) of which the total debt burden of the project was reduced to GBP 2.98 million (ZAR 50.54 million) as at the date of this report.

The data below in table 1 captures the commissioning and ramp-up phases of the project with the data for Q3 2017 illustrating the continued increase in production and earnings growth following the period under review. The unit cost per PGM ounce produced has reduced to USD 476 during Q3 2017 and is set to reduce further in-line with the expected continued increase in production for Q4 2017.

Table 1 below presents the operational performance of the Hernic operations for the period under review (Q2 2017) and the following quarter Q3 2017:

 
          Tailings       PGM       Project     Project       Project      Project      Jubilee        Jubilee      Unit 
          processed    ounces      revenue    revenue(2)   earnings(3)   earnings    attributable   attributable   cost 
           tonnes     delivered      (1)      (ZAR'000)     (GBP'000)    (ZAR'000)     earnings       earnings     / PGM 
                                  (GBP'000)                                           (GBP'000)      (ZAR'000)     ounce 
                                                                                                                   (USD) 
-------  ----------  ----------  ----------  -----------  ------------  ----------  -------------  -------------  ------ 
 Q2          80 
  2017       828         808       459(4)       7.604         (110)       (1.928)       (110)         (1.928)       901 
-------  ----------  ----------  ----------  -----------  ------------  ----------  -------------  -------------  ------ 
 Total 
  Q3         105 
  2017       673        2 874       1.539       26.581         496         8.592         496           8.592        476 
-------  ----------  ----------  ----------  -----------  ------------  ----------  -------------  -------------  ------ 
 

(1= Revenue from the current project phase - 100% attributable to Jubilee until full capital recovery. Revenue is projected based on latest average PGM market prices and USD exchange rates and results are only final once final Quotational Period has passed)

(2= Average monthly conversion rates used)

(3= Project Earnings include all incurred operational costs including management services and mineral royalties)

(4 = Figures as per quarterly updates announced. The annual total can differ from the annual audited result due to different conversion rates used.)

Dilokong Chrome Mine (DCM) - South Africa

Jubilee's subsidiary, Jubilee Tailings and Treatment Company Proprietary Limited ("JTTC"), holds the exclusive rights to beneficiate the PGMs and chrome from the platinum and chrome-containing surface material at Dilokong Chrome Mine Proprietary Limited ("DCM") a subsidiary of ASA Metals Proprietary Limited ("DCM Platinum Project, Processing Agreement").

The Processing Agreement gives Jubilee access to more than 800 000 tonnes (Sept 2012) of surface material containing 74 000 ounces 4E PGM (platinum, palladium, rhodium and gold). JTTC achieved stable project target design operations during Q4 2016. In February 2016 Jubilee executed a further processing agreement ("the Processing Agreement") to expand and operate on DCM's behalf the chrome beneficiation plant.

Immediately following the period under review, and in an ongoing co-operation with DCM, Jubilee executed a new framework treatment of tailings and chrome ore agreement ("New Agreement") with DCM, thereby cancelling and superseding all existing agreements in respect of chrome processing and PGM recovery at DCM. The New Agreement transforms Jubilee's DCM operations as an equal joint venture with DCM, on all chrome ore including 3rd party chrome ore. This New Agreement now affords Jubilee the right to 50 % of all chromite earnings generated from the processing of third party or other Chromite Ore. This New Agreement captures the growth of the DCM project from initially Jubilee holding no rights to earnings from chromite ore at the outset of the DCM project. The New Agreement further secures Jubilee's unencumbered PGM rights from all material processed at DCM irrespective of source.

Jubilee further executed an ore processing agreement ("Ore Agreement") in addition to the New Agreement, in terms of which Jubilee is contracted to toll process up to 40 000 tonnes per month of 3rd party Chrome Ore for an initial three year term period - mutually extendable. Under the terms of the Ore Agreement Jubilee also secured the rights to the PGMs in the 3rd party Chrome Ore which further supplements the existing PGMs already contained in the surface material at DCM. DCM plant's spare capacity will be utilized for this processing, which has the potential to more than double current DCM's operational throughput. The additional PGMs secured provides Jubilee the opportunity to expand its PGM recovery strategy at DCM and materially add to the Company's earnings, since the fixed cost element of DCM's operation would remain relatively unchanged. This Ore Agreement continues Jubilee's organic growth in this field and is a step in its stated intent to consolidate chrome and platinum retreatment in the region.

During the period under review the DCM operations performed well with its first full year of operation under the terms of the Processing Agreement. The New Agreement as announced on 5 September 2017, between DCM and Jubilee became effective on 1 September 2017. The effect of this New Agreement together with the ramp-up of processing 3rd party ore at the DCM operations will reflect in the 2018 financial period.

The table below presents the operational performance of the DCM operations for the period under review and the following quarter Q3 2017:

 
                    Chromite      Project      Project       Project       Project        Jubilee         Jubilee 
                   concentrate     revenue      revenue     earnings(2)    earnings     attributable    attributable 
                    produced      (GBP'000)       (1)        (GBP'000)     (ZAR'000)      earnings        earnings 
                     tonnes                    (ZAR'000)                                 (GBP'000)       (ZAR'000) 
---------------  -------------  -----------  -----------  -------------  -----------  --------------  -------------- 
 Total Q3 
  2016               26 848        2.141        38.368        1.581         28.320          587           10.505 
---------------  -------------  -----------  -----------  -------------  -----------  --------------  -------------- 
 Total Q4 
  2016               19 108        2.642        45.714        1.714         29.668          368            6.367 
---------------  -------------  -----------  -----------  -------------  -----------  --------------  -------------- 
 Total Q1 
  2017               14 973        3.372        55.224        2.407         38.862          408            6.664 
---------------  -------------  -----------  -----------  -------------  -----------  --------------  -------------- 
 Total Q2 
  2017               17 659        1.348        22.731         386          6.504           399            6.727 
---------------  -------------  -----------  -----------  -------------  -----------  --------------  -------------- 
 Total for 
  period 
  under review       78 588       9.503(3)     162.037         6.088       103.354         1.762           30.263 
---------------  -------------  -----------  -----------  -------------  -----------  --------------  -------------- 
 Total Q3 
  2017               15 134        1.129        19.526         184          3.173           356            6.139 
---------------  -------------  -----------  -----------  -------------  -----------  --------------  -------------- 
 

(1= Average monthly conversion rates used)

(2 = Project earnings include project expenditure on plant and equipment)

(3) (= Figures as per quarterly updates announced. The annual total can differ from the annual audited result due to different conversion rates used.)

Chairman's statement

Dear Shareholder,

The year under review has been an exceptional period of growth for Jubilee. Jubilee established itself as a diversified producer of metals entering both the chrome and platinum industry through the ramp-up of its DCM operations and commissioning of the Hernic project while the Tjate platinum project was awarded its mining license. Jubilee continued its drive to grow post the period under review with the acquisition of the surface PGMs at PlatCro and joint venture agreement with BMR Group PLC to execute the Kabwe surface project in Zambia.

At the commencement of the year, the Hernic plant was approximately 50 % built with the Company gaining significant financial contribution from Dilokong enjoying the benefits of increasing chrome prices and our participation in chrome benefits.

We announced on 6 February 2017 that the Hernic plant commenced production and that the first chromite concentrate had been produced. In the same announcement shareholders were advised, that focus had now moved to the commissioning of the PGM recovery plant. The commissioning of the PGM circuit was completed towards the end of March 2017 and we announced PGM production on 29 March 2017. Thereafter we saw increased production of chromite and PGMs as the various circuits underwent troubleshooting and optimisation. Throughout the period under review the Hernic contribution improved month on month and at the time of writing this report, we had reached a total of 3 682 ounces of PGM production. A significant financial performance was the PGM production cost of USD 476 per ounce for the third quarter 2017. This demonstrates that the operation is extremely resilient to the volatile and depressed PGM prices experienced during the year. We continue to optimise at Hernic and are confident of reduced cost throughout the operation, improving productivity and significant financial contribution to the group.

The Dilokong operation continued to grow its earnings with upgraded platinum concentrate stockpiles being accumulated at the operation. During the early part of this year, we advised shareholders that Dilokong financial results would be considerably advanced by the acquisition of third party ore to be processed at Dilokong and towards the end of the first quarter of 2017 we processed our first third party ore.

Post the closing of this review period, we announced a significant new partnership agreement for third party ore which will provide for an additional 40 000 tonnes of ore per month for a minimum three year period. The financial effect of this contract will be very positive to the Dilokong operation and to the attributable income for Jubilee.

In terms of the Middelburg smelter and power station disposal, final proceeds were received mid-March 2017 after full and final settlement post arbitration.

A major milestone for the Company was achieved on 2 March 2017 when we announced that the Tjate Platinum project had been awarded its mining right. The project represents an extremely, large PGM metal resource and in terms of the fourth generation of new platinum mines is favourably positioned in terms of depth, grade continuity and is relatively geologically untroubled compared to its peers. We are now busy carrying out all things necessary to maintain compliance with the terms and conditions of the mining right order. The board are fully aware that new mine development in the platinum industry is not immediately evident, but remain convinced that Tjate will play a significant role in the future growth of South Africa's platinum industry in general and this Company in particular.

Our new business development in the past has been proactive and responsive and once projects have been acquired, financing structures were sought to achieve the acquisition or earn-in requirements. The board considered this to be a less than satisfactory arrangement and commenced a search for a funding partner who knew our business and shared our aspirations for its growth.

Post balance sheet in August 2017, we announced an agreement with Riverfort Capital Group Limited for a project funding agreement of USD 50 million. We have not yet used this agreement for any new projects but are highly encouraged that we have the arrangement in place as we enter more and more discussions for new projects.

A further major post balance sheet announcement was made on 23 October 2017, which involved the joint venture with BMR Group PLC ("BMR"). This joint venture is based in Zambia and relates to the Kabwe lead, zinc and vanadium historical surface deposits. This project involves Jubilee investigating, developing flow sheets and if appropriate building a treatment plant in joint venture with BMR. The surface deposits are large and entail at least 6 400 000 tonnes of material of which 50 % is JORC compliant. The joint venture entails that Jubilee, stage advances up to GBP 2.30 million and thereafter shares some 40 % of the beneficial earning arising from the project. This agreement is very important on the basis that the Company is now involved in a different company, country and in different commodities thus providing a hedge to the Bushveld complex and South Africa.

In terms of PGM metal prices we remain somewhat disappointed as to their volatility and low top range. This being despite more cars being built and a prosperous new global economy with good signs for emerging markets. There is much talk about the electric car being the answer and therefore displacing the need for fuel cell powered motor cars. The Jubilee board believes that the electric car is an interim step and the emergence of the fuel cell will significantly enhance the fortunes of the platinum producing industry.

In any event we are seeing the normal supply demand attrition and supply response which is a cycle common to all commodities.

Jubilee has emerged, at the time of writing this report as a diversified producer with many significant opportunities currently being investigated and negotiated at an advanced level. A number of these opportunities, if brought to completion, could change the short-term prospects for Jubilee and make the mid-cap space, to which I often allude, a reachable target.

Jubilee, having completed two projects, is now at a very important stage in its evolution and the board has to consider the merits of organic growth against corporate acquisition growth or combination thereof. We are mindful that the resource world has not rebounded from the woes of the past and that major opportunities exist for companies committed to growth. Jubilee is one of those companies.

Although the board expects to realise the value of the Nickel Tailings Project, the board felt it prudent to impair the asset until the legal impasse with BHP is resolved. The Group reported a loss per share from continuing operations for the period under review, excluding impairments of intangible assets, of 0.25 pence (ZAR 4.27 cents) compared to a loss of 0.38 pence (ZAR 8.07 cents) for the comparative period. Impairment of intangible assets totaled GBP 8.47 million, net of tax, which if included equates to a group loss per share of 1.07 pence (ZAR 18.55 cents).

Finally I would like to thank everyone concerned at whatever level in Jubilee who have assisted in taking the Company to its current position. In particular I would like to thank the Chief Executive Officer Leon Coetzer and his immediate team for their commercial prowess and intellectual and managerial contribution to our projects. Their efforts have been instrumental in creating the Jubilee brand, which is now exportable, credible and achieving global recognition.

Colin Bird

Non-Executive Chairman

Financial statements for the year ended 30 June 2017

Consolidated statement of comprehensive income for the year ended 30 June 2017

 
Figures in Sterling         2017    2016 
 
 
 
                                               9 805          1 473 
Continuing operations                            701            921 
                                              (8 038 
 Revenue Cost of sales                          731)      (608 309) 
-----------------------------------------  ---------  ------------- 
                                               1 766 
Gross profit                                     970        865 612 
Other income                                     348         10 725 
                                              (3 439         (4 690 
Operating expenses                              040)           862) 
-----------------------------------------  ---------  ------------- 
                                              (1 671         (3 814 
Operating loss                                  722)           525) 
Investment revenue                            18 673        144 077 
Gain on non-current assets 
 held for sale or 
disposal groups                                    -         84 680 
Impairment of intangible                     (18 570 
 assets                                         584)              - 
                                                (198 
Finance costs                                   565)       (13 418) 
-----------------------------------------  ---------  ------------- 
                                             (20 422         (3 599 
Loss before taxation                            198)           186) 
                                               9 849 
Taxation                                         606        201 901 
-----------------------------------------  ---------  ------------- 
                                             (10 572         (3 397 
Loss from continuing operations                 592)           285) 
Discontinued operations 
Loss from discontinued 
 operations                                        -      (276 660) 
-----------------------------------------  ---------  ------------- 
                                             (10 572         (3 673 
Loss for the year                               592)           945) 
Other comprehensive income: 
Exchange differences on translating            6 104          2 653 
 foreign operations                              352            926 
-----------------------------------------  ---------  ------------- 
                                              (4 468         (1 020 
Total comprehensive loss                        240)           019) 
-----------------------------------------  ---------  ------------- 
 
  Attributable to: 
Owners of the parent: 
                                                 (10 
Loss for the year from continuing                570         (3 412 
 operations                                     058)           174) 
Loss for the year from discontinuing 
 operations                                        -      (283 749) 
-----------------------------------------  ---------  ------------- 
                                                 (10 
Loss for the year attributable                   570         (3 695 
 to owners of the parent                        058)           923) 
-----------------------------------------  ---------  ------------- 
 
  Non-controlling interest: 
(Loss)/profit for the year from 
 continuing operations                       (2 534)         14 889 
Profit for the year from discontinuing 
 operations                                        -          7 089 
-----------------------------------------  ---------  ------------- 
Profit for the year attributable 
 to non-controlling interest                 (2 534)         21 978 
-----------------------------------------  ---------  ------------- 
 
  Total comprehensive loss attributable 
  to: 
                                              (4 878         (1 009 
Owners of the parent                            961)           610) 
Non-controlling interest                     410 721       (10 409) 
-----------------------------------------  ---------  ------------- 
                                              (4 468         (1 020 
                                                240)           019) 
-----------------------------------------  ---------  ------------- 
Basic and diluted loss per share 
 (pence) - continuing 
 
operations                                    (1.07)       (0.38) 
 
Basic and diluted loss per share 
 (pence) - discontinued 
operations                                         -       (0.03) 
-----------------------------------------  ---------  ----------- 
Loss per share                                (1.07)       (0.41) 
-----------------------------------------  ---------  ----------- 
 
 

Consolidated statement of financial position as at 30 June 2017

 
 
Figures in Sterling                                                   2017              2016 
Assets 
Non-current assets 
Property, plant and equipment                                   13 161 021     4 977 784 
Intangible assets                                               48 166 942    61 838 764 
                                                                                         218 
Deferred tax                                                             -               345 
-------------------------------  ---------------------------  ------------  ---------------- 
                                                                    61 327        67 034 
                                                                       963           893 
------------------------------------------------------------  ------------  ------------ 
Current assets 
Inventories                                                         44 789             - 
Other financial assets                                                   -       555 159 
Current tax receivable                                              15 870        15 870 
Trade and other receivables                                      3 222 150     1 074 509 
Cash and cash equivalents                                        4 635 636     4 414 908 
-------------------------------  ---------------------------  ------------  ------------ 
                                                                 7 918 445     6 060 446 
------------------------------------------------------------  ------------  ------------ 
                                                                    69 246 
Total assets                                                           408   73 095 339 
------------------------------------------------------------  ------------  ------------ 
Equity and liabilities 
Equity attributable to equity 
 holders of parent 
Share capital                                                   87 674 940    82 515 169 
Reserves                                                        23 078 043    17 997 713 
Accumulated loss                                              (57 261 760)  (46 799 127) 
-------------------------------  ---------------------------  ------------  ------------ 
                                                                53 491 223    53 713 755 
Non-controlling interest                                         2 867 039     2 456 318 
------------------------------------------------------------  ------------  ------------ 
                                                                56 358 262    56 170 073 
------------------------------------------------------------  ------------  ------------ 
Liabilities 
 Non-current liabilities 
 Other financial liabilities                                       688 000             - 
 Deferred tax                                                    5 362 500    14 677 152 
------------------------------------------------------------  ------------  ------------ 
                                                                 6 050 500    14 677 152 
------------------------------------------------------------  ------------  ------------ 
Current liabilities 
Other financial liabilities                                      3 083 581             - 
Trade and other payables                                         3 754 065     2 248 114 
                                                                 6 837 646     2 248 114 
------------------------------------------------------------  ------------  ------------ 
Total liabilities                                               12 888 146    16 925 266 
------------------------------------------------------------  ------------  ------------ 
Total equity and liabilities                                    69 246 408    73 095 339 
------------------------------------------------------------  ------------  ------------ 
 
 

The financial statements were authorised for issue and approved by the Board on 9 November 2017 and signed on its behalf by:

Leon Coetzer

Chief Executive Officer

Company number 04459850

Consolidated statement of changes in equity for the year ended 30 June 2017

 
                                                                                                Total 
                                                                                         attributable 
                               Foreign                                                      to equity 
                              currency             Share-based                                holders         Non- 
Figures             Share  translation    Merger       Payment      Total   Accumulated        of the  controlling 
 in Sterling      capital      reserve   reserve       reserve   reserves          loss         Group     interest   Total equity 
--------------  ---------  -----------  --------  ------------  ---------  ------------  ------------  -----------  ------------- 
 
Balance 
 at 1 July         75 896      (11 640    23 184         5 199     16 742       (43 495        49 142          365 
 2015                 582         768)       000           026        258          910)           930          071     49 508 001 
--------------  ---------  -----------  --------  ------------  ---------  ------------  ------------  -----------  ------------- 
Changes 
 in equity 
--------------  ---------  -----------  --------  ------------  ---------  ------------  ------------  -----------  ------------- 
Total 
 comprehensive 
 income for                      2 686                              2 686        (3 695        (1 009          (10 
 the year               -          313         -             -        313          923)          616)         409)    (1 020 019) 
--------------  ---------  -----------  --------  ------------  ---------  ------------  ------------  -----------  ------------- 
Issue of 
 share capital      6 618                                                                       6 618 
 net of costs         587            -         -             -          -             -           587            -      6 618 587 
--------------  ---------  -----------  --------  ------------  ---------  ------------  ------------  -----------  ------------- 
Disposal 
 of                              1 820                              1 820        (1 820                       (397 
 subsidiaries           -          818         -             -        818          818)             -         268)      (397 268) 
--------------  ---------  -----------  --------  ------------  ---------  ------------  ------------  -----------  ------------- 
Warrants                                                   304        304 
 issued                 -            -         -           925        925             -       304 925            -        304 925 
--------------  ---------  -----------  --------  ------------  ---------  ------------  ------------  -----------  ------------- 
Options 
 issued under                                            1 155      1 155                       1 155 
 new scheme             -            -         -           847        847             -           847            -      1 155 847 
--------------  ---------  -----------  --------  ------------  ---------  ------------  ------------  -----------  ------------- 
Option 
 cancelled 
 under old                                              (4 450     (4 450         4 450 
 scheme                 -            -         -          210)       210)           210             -            -              - 
--------------  ---------  -----------  --------  ------------  ---------  ------------  ------------  -----------  ------------- 
Warrants                                                  (258       (258 
 exercised              -            -         -          306)       306)       258 306             -            -              - 
--------------  ---------  -----------  --------  ------------  ---------  ------------  ------------  -----------  ------------- 
Warrants 
 lapsed                 -            -         -       (3 932)    (3 932)         3 932             -            -              - 
--------------  ---------  -----------  --------  ------------  ---------  ------------  ------------  -----------  ------------- 
Adjustment                                                                       (2 498        (2 498        2 498 
 to NCI                 -            -         -             -          -          923)          923)          923              - 
--------------  ---------  -----------  --------  ------------  ---------  ------------  ------------  -----------  ------------- 
                    6 618        4 507                  (3 251      1 255        (3 303         4 570        2 091 
Total changes         587          131         -          676)        455          216)           826          246      6 662 072 
--------------  ---------  -----------  --------  ------------  ---------  ------------  ------------  -----------  ------------- 
Balance 
 at 1 July         82 515       (7 133    23 184         1 947     17 997       (46 799        53 713        2 456 
 2016                 169         637)       000           350        713          126)           756          317     56 170 073 
--------------  ---------  -----------  --------  ------------  ---------  ------------  ------------  -----------  ------------- 
 
Total 
 comprehensive 
 income for                   5 691                               5 691      (10 572        (4 878         410 
 the year           -          097         -           -           097         592)          961)          721       (4 468 239) 
--------------  ---------  -----------  --------  ------------  ---------  ------------  ------------  -----------  ------------- 
Issue of 
 share capital 
 net of costs   5,159,771       -          -           -            -           -             -             -             - 
--------------  ---------  -----------  --------  ------------  ---------  ------------  ------------  -----------  ------------- 
Warrants 
 issued             -           -          -         22,025      22,025         -           22,025          -          22,025 
--------------  ---------  -----------  --------  ------------  ---------  ------------  ------------  -----------  ------------- 
Warrants 
 exercised          -           -          -       (632,792)    (632,792)    632,792          -             -             - 
--------------  ---------  -----------  --------  ------------  ---------  ------------  ------------  -----------  ------------- 
Increase 
 in investment      -           -          -           -            -       (525,367)     (525,367)         -         (525,367) 
--------------  ---------  -----------  --------  ------------  ---------  ------------  ------------  -----------  ------------- 
                              5 691                               5 080                                    410 
Total changes   5,159,771      097         -       (610,767)       330     (13,374,298)   (255 066)        721         188,190 
--------------  ---------  -----------  --------  ------------  ---------  ------------  ------------  -----------  ------------- 
Balance 
 at 30 June      87 674      (1 442      23 184      1 336       23 078      (57 261        53 491        2 867 
 2017              940         540)        000         583         043         760)           223          039       56 358 262 
--------------  ---------  -----------  --------  ------------  ---------  ------------  ------------  -----------  ------------- 
 

Consolidated statement of cash flow for the year ended 30 June 2017

 
Figures in Sterling                                                                   2017    2016 
Cash flows from operating activities                                             (160 100)               (688 883) 
 Cash used in operations                                                            18 673                 144 077 
 Interest income Finance costs                                                   (384 935)                (13 418) 
------------------------------------------------------------------------  ----------------  ---------------------- 
Net cash from operating activities                                                 526 362               (558 224) 
------------------------------------------------------------------------  ----------------  ---------------------- 
Cash flows from investing 
 activities 
Purchase of property, plant                                                                                 (4 548 
 and equipment                                                                 (7 161 323)                    858) 
Sale of property, plant 
 and equipment                                                                      19 145                       - 
Purchase of other intangible 
 assets                                                                           (37 685)                 (4 239) 
Net cash flow from disposal                                                                                  3 986 
 of discontinued operations                                                              -                     126 
Decrease/(increase) in 
 loans                                                                             555 159               (555 159) 
Payments in advance for 
 tailings                                                                      (1 179 220)                       - 
-------------------------------------------  ---------------------------  ----------------  ---------------------- 
                                                                                                            (1 122 
Net cash from investing activities                                             (7 803 924)                    130) 
------------------------------------------------------------------------  ----------------  ---------------------- 
Cash flows from financing activities 
                                                                                                                 5 865 
Net proceeds on share issues                                                     5 159 771                         560 
                                                                                    (2 986 
Proceeds from other financial liabilities                                             434)                   (102 490) 
Repayment of other financial liabilities                                         6 135 647                           - 
------------------------------------------------------------------------  ----------------  -------------------------- 
                                                                                                                 5 763 
Net cash from financing activities                                               8 308 984                         070 
------------------------------------------------------------------------  ----------------  -------------------------- 
                                                                                                                 4 082 
Total cash movement for the year                                                    21 302                         716 
Total cash at the beginning of the                                                   4 414 
 year                                                                                  908                     360 829 
Effect of exchange rate movement on 
 cash balances                                                                     242 030                    (28 637) 
------------------------------------------------------------------------  ----------------  -------------------------- 
Total cash at end of the                                                             4 635                       4 414 
 year                                                                                  636                         908 
-------------------------------------------  ---------------------------  ----------------  -------------------------- 
 
 

NOTES TO THE AUDITED RESULTS FOR THE YEARED 30 JUNE 2017

   1.    Statement of accounting policies 

The Group and Company results for the year ended 30 June 2017 have been prepared using the accounting policies applied by the Company in its 30 June 2016 annual report which are in accordance with International Financial Reporting Standards (IFRS and IFRC interpretations) 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 and the Companies Act 2006 (UK). They are presented in Pound Sterling.

This 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 2017 and any public announcements by Jubilee Platinum PLC after that date to the date of publication of these results.

All monetary information is presented in the functional 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 2016 contained in this 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 did not contain a statement under section 498(2)-(3) of the Companies Act 2006.

   2.    Financial review 

The Group reported a loss per share from continuing operations for the period under review, excluding impairments of intangible assets, of 0.25 pence (ZAR 4.27 cents) compared to a loss of 0.38 pence (ZAR 8.07 cents) for the comparative period. Impairment of intangible assets totaled GBP 8.47 million, net of tax, which if included equates to a group loss per share of 1.07 pence (ZAR 18.55 cents). The impairment relates to the Group's interest in its Nickel Tailings Project in Australia. Although the board expects to realise the value of the Nickel Tailings Project, the board felt it prudent to impair the asset until the legal impasse with BHP is resolved.

The Group managed to continue to tightly control costs. Total operating expenses from continued operations is down 26.69 % to GBP 3.44 million (ZAR 59.46 million) ((2016: GBP 4.69 million) (ZAR 81.06 million)).

Earnings per share for the year ended 30 June 2017 were as follows: 2017

2016

 
Basic loss for the year - continuing 
 operations (GBP'000)                       (10 570)  (3 412) 
 Basic loss for the year - discontinuing 
  operations (GBP'000)                             -    (283) 
------------------------------------------  --------  ------- 
Total loss for the year (GBP'000)           (10 570)  (3 695) 
------------------------------------------  --------  ------- 
Weighted average number of shares in 
 issue ('000)                                984 780  906 241 
Loss per share - continuing operations 
 (pence)                                      (1.07)   (0.38) 
Loss per share - discontinuing operations 
 (pence)                                           -   (0.03) 
------------------------------------------  --------  ------- 
                                              (1.07)   (0.41) 
------------------------------------------  --------  ------- 
Loss per share - continuing operations 
 (ZAR cents)                                 (18.55)   (8.07) 
Loss per share - discontinuing operations 
 (ZAR cents)                                       -   (0.67) 
------------------------------------------  --------  ------- 
                                             (18.55)   (8.74) 
------------------------------------------  --------  ------- 
 

The Group reported a net asset value of 5.04 pence (ZAR 85.54 cents) (2016: 5.65 pence (ZAR 112.38 cents) per ordinary share. The total shares in issue as at 30 June 2017 were 1 118 360 942 (2016: 991 087 994). Refer to note 6 below for details of shares issued during the period under review.

   3.    Dividends 

The Board did not declare any dividends for the period under review. (2016: Nil)

   4.    Auditor's review opinion 

These results have been audited by the Group's auditors, Saffery Champness LLP and their report is available for inspection at the Company's registered office. A copy of the report is also attached to the back of this announcement as annexure 1.

   5.    Board 

There were no changes to the board during the period under review and up to the date of this announcement.

   6.    Share capital 
 
                                                 30 June            30 June 
 Authorised                                         2017               2016 
  The share capital of the Company 
   is divided into an unlimited number 
   of ordinary shares of 1 pence 
   each. 
  Issued 
  Ordinary shares of 1 pence each 
   (GBP) 
  Share premium (GBP) 
                                              11 183 609          9 910 872 
                                              76 491 331         72 604 297 
---------------------------------------  ---------------  ----------------- 
Total issued capital (GBP)                    87 674 940         82 515 169 
---------------------------------------  ---------------  ----------------- 
Number of shares in issue 
 Ordinary shares                           1 118 360 942        991 087 194 
---------------------------------------  ---------------  ----------------- 
 

The Company issued the following shares during the period and up to the date of this annual report:

 
                                        Number  Issue price 
                                            of            -        Purpose 
Date                                                                of the 
                                        shares        Pence          issue 
-----------------------------------  ---------  -----------  ------------- 
                                       991 087 
Opening balance                            194 
-----------------------------------  ---------  -----------  ------------- 
                                        25 000 
21 November 2016                           000         3.55       Warrants 
-----------------------------------  ---------  -----------  ------------- 
                                                                  Director 
  21 November 2016                   1 848 167         2.44   remuneration 
-----------------------------------  ---------  -----------  ------------- 
23 January 2017                      2 300 000         3.16       Warrants 
-----------------------------------  ---------  -----------  ------------- 
31 January 2017                      2 500 000      3.15975       Warrants 
-----------------------------------  ---------  -----------  ------------- 
                                        10 550 
03 February 2017                           581         3.23       Warrants 
-----------------------------------  ---------  -----------  ------------- 
09 February 2017                     2 500 000      3.15975       Warrants 
-----------------------------------  ---------  -----------  ------------- 
14 February 2017                     2 000 000      3.15975       Warrants 
-----------------------------------  ---------  -----------  ------------- 
17 February 2017                     2 000 000      3.15975       Warrants 
-----------------------------------  ---------  -----------  ------------- 
22 February 2017                     1 450 000      3.15975       Warrants 
-----------------------------------  ---------  -----------  ------------- 
27 February 2017                       625 000          2.0       Warrants 
-----------------------------------  ---------  -----------  ------------- 
27 February 2017                       500 000          2.5       Warrants 
-----------------------------------  ---------  -----------  ------------- 
                                        10 000 
10 March 2017                              000        4.725       Warrants 
-----------------------------------  ---------  -----------  ------------- 
                                        66 000                       Issue 
23 March 2017                              000          5.0       for cash 
-----------------------------------  ---------  -----------  ------------- 
                                     1 118 360 
Closing balance at year-end                942 
-----------------------------------  ---------  -----------  ------------- 
Balance as at the last practicable   1 118 360 
 date                                      942 
-----------------------------------  ---------  -----------  ------------- 
 

The Company did not issue any shares after year-end to the date of this report.

During the year transaction costs accounted for as a deduction from equity amounted to GBP 314 050.

At year-end and at the last practicable date the Company had the following warrants outstanding:

 
                        Subscription    End of                Spot at 
                                                               Issue 
                           price       exercise   Volatility    date 
Number of     Issue 
 warrants      date        pence        period        %        pence 
----------  ----------  ------------  ----------  ----------  ------- 
3 591 742   2015-08-12     4.750      2018-08-12    77.49      4.48 
8 244 825   2016-03-23     4.725      2019-03-23    83.81      2.94 
---------- 
11,836,567 
---------- 
 

The fair value of these warrants was determined using the Black-Scholes Valuation Model with the inputs illustrated in the table above. A risk free rate of 0.5 % were applied in the valuation. The company recognised a share-based payment charge against the share-based payment reserve in the amount of GBP22 025 (2016: GBP304 925) in accordance with section 610 (2) of the United Kingdom Companies Act 2006. This charge relates to equity placings successfully completed.

   7.    Business segments 

In the opinion of the Directors, the continuing operations of the Group companies comprise of four reporting segments (including those reported on for the comparative period) being:

- the beneficiation of Platinum Group Metals ("PGMs") and development of PGM smelters utilising exclusive commercialisation rights of the ConRoast smelting process, located in South Africa ("PGM beneficiation and development");

- the evaluation of the reclamation and processing of sulphide nickel tailings at BHP Billiton's Leinster, Kambalda and Mount Keith properties in Australia (Nickel tailings);

   -           the exploration and mining of Platinum Group Metals ("PGMs") (Exploration and mining); 

- the parent company operates a head office based in the United Kingdom, which incur certain

administration and corporate costs.

The results of the discontinued operations comprise of two segments which have been combined into one segment referred to as Disposal Group being:

   -           base metal smelting in South Africa; and 
   -           electricity generation in South Africa. 

The Group's operations span five countries, South Africa, Australia, Madagascar, Mauritius 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. Mauritius and Madagascar do not meet the qualitative threshold under IFRS 8, consequently no separate reporting is provided.

Segment report for the year ended 30 June 2017

 
                                                                                  Total 
Figures in          PGM beneficiation     Nickel  Exploration        Other   continuing   Disposal 
 Sterling             and development   tailings   and mining   operations   operations      group 
------------------  -----------------  ---------  -----------  -----------  -----------  --------- 
                               (9 805                                            (9 805 
Total revenues                   702)          -            -            -         702)          - 
                                8 038                                             8 038 
Cost of sales                     731          -            -            -          731          - 
Forex losses                   47 714          -            -       24 704       72 418          - 
Loss before                     1 511     18 566                                 20 883 
 taxation                         175        747       71 118      734 887          927  (461 728) 
                                         (10 099                                 (9 849 
Taxation                      250 303       909)            -            -         605)          - 
Loss after                      1 761      8 466                                 11 034 
 taxation                         478        838       71 118      734 887          322  (461 728) 
Interest received            (11 609)          -        (760)      (6 304)     (18 673)          - 
Interest paid                 198 565          -            -            -      198 565          - 
Depreciation, 
 amortisation                   1 108     18 554                                 19 679 
 and impairments                  866        683       15 901            -          451 
------------------  -----------------  ---------  -----------  -----------  -----------  --------- 
                               24 149     15 131       26 524        3 440       69 246 
Total assets                      529        292          677          910          408 
------------------  -----------------  ---------  -----------  -----------  -----------  --------- 
                               (7 138     (2 275       (2 414       (1 059      (12 888 
Total liabilities                099)       862)         659)         526)         146) 
------------------  -----------------  ---------  -----------  -----------  -----------  --------- 
 

Segment report for the year ended 30 June 2016

 
                                                                                  Total 
Figures in          PGM beneficiation     Nickel  Exploration        Other   continuing  Disposal 
 Sterling             and development   tailings   and mining   operations   operations     group 
------------------  -----------------  ---------  -----------  -----------  -----------  -------- 
                               (1 127                                            (1 473    (1 420 
Total revenues                   880)          -            -    (346 041)         921)      145) 
Cost of sales                 589 290          -            -       19 019      608 309   682 365 
Forex losses                  (7 658)          -            -       77 571       69 913         - 
Loss before                                                          2 784        3 599 
 taxation                     787 554     10 711       16 174          748          187   276 660 
Taxation                            -          -            -            -            -         - 
Loss after                                                           2 784        3 599 
 taxation                     787 554     10 711       16 174          748          187   276 660 
Interest received           (120 301)          -         (75)     (23 701)    (144 077)     (193) 
Interest paid                       5          -            -       13 413       13 417         - 
Depreciation 
 and amortisation             597 613          -          838            -      598 451         - 
------------------  -----------------  ---------  -----------  -----------  -----------  -------- 
                               14 004     31 666       23 626        3 797       73 095 
Total assets                      569        391          458          622          339         - 
------------------  -----------------  ---------  -----------  -----------  -----------  -------- 
                               (2 904     (9 656       (3 885                   (16 925 
Total liabilities                304)       474)         972)    (478 516)         267)         - 
------------------  -----------------  ---------  -----------  -----------  -----------  -------- 
 
   8.    Going concern 

The Directors have adopted the going-concern basis in preparing the financial statements.

The period under review was transformational for the Jubilee Group of companies and it has continued to successfully implement its Metals Recovery Strategy which is advancing at an encouraging pace and the Board is confident that the Group can make further acquisitions to complement its existing projects and extend its brand and capabilities into other global surface projects.

The objectives of Jubilee's Metals Recovery Strategy are threefold:

- Secure low risk, low capital intensive, long-term commodity production from mine waste at an attractive point on the global cost curve by using advanced, environmentally sustainable metal recovery techniques;

- Diversify across multiple commodities including platinum, cobalt, copper and gold to hedge income risk and to align with global trends; and

- Rehabilitate the adverse footprint left by legacy mining in accordance with International Environmental Standards.

The field of extractive metallurgy has made substantial technological progress in the last 10 years increasing the ability to profitably re-process materials that contain metals and minerals missed by the initial recovery path. For several years now, Jubilee has developed successful proprietary processing techniques to optimise metal recovery in an environmentally friendly and sustainable manner for many companies including large blue-chip mining houses. Jubilee Processing is well positioned to capitalise on its in-house expertise to become a global leader in this field.

-- On 9 August 2017, Jubilee secured a project funding structure, provided by RiverFort Capital Group Limited ("RiverFort"), which is modelled on the successful Hernic platinum and chrome recovery project which was also financed through RiverFort.

The key features of the Agreement are:

- Funding will be provided at project-level directly to the Jubilee project subsidiary by RiverFort

- USD 50 million pre-approved debt funding targeting multiple surface based metal recovery projects based on established individual project criteria

- The funding commitment is for an initial 33-month period with the flexibility for mutual extension

- In recognition of the funding commitment, RiverFort has been granted the right to exercise a 2.5 % maximum preference equity stake in the subsidiary Jubilee Processing

-- As previously announced on 31 March 2016, the remaining purchase consideration of the Middelburg Disposal was calculated at approximately GBP 0.39 million (ZAR 8.90 million) net of closing adjustments including stock and supplier adjustments. The final settlement amount of GBP 0.46 million (ZAR 7.40 million) has been received by Jubilee in March 2017. These proceeds strengthened the Group's cash flow and its ability to fund its projects.

-- During March 2017 the Company successfully completed a placing of 66 000 000 new ordinary shares of 1 pence each ("Ordinary Shares") in Jubilee (the "Placing Shares") at a price of 5.0 pence (ZAR 78.70 cents) per share to raise approximately GBP 3.30 million before expenses (ZAR 51.90 million at current conversion rates).

The Directors are of the opinion that the Group and Company are funded sufficiently to enable it to continue with its operations as a going concern.

   9.    Events after the reporting period 

9.1 PlatCro Platinum and Chrome Tailings Project ("PlatCro project")

Post the period under review the Company executed a Framework and Processing of Tailings Agreement ("the Agreement") with PlatCro in March 2017 for the acquisition of new platinum, palladium, rhodium and gold ("4E PGMs") bearing surface material existing at PlatCro as well as all future surface material at PlatCro. The existing surface material is estimated at 1 250 000 tonnes with an estimated grade of 2.7 g/t 4E PGMs. This ensured Jubilee the sole right to future earnings from the platinum bearing material.

The PlatCro project will target a processing rate of 25 000 tonnes per month to complement Jubilee's surface tailings platinum production by a further 14 200 ounces of PGMs per annum. This projects a total production target at stable operations of approximately 50 000 ounces of PGMs per annum for Jubilee from all its surface tailings and 3(rd) party ore projects.

Under the Agreement Jubilee will acquire the existing material for a total consideration of GBP 3.13 (ZAR 50.00) per tonne of surface material remaining after on-going further recovery of residual chromite by PlatCro. Approximately 79 % of the material is estimated to remain following chromite removal, which equates to a 4E PGM acquisition value of GBP 3.50 million (ZAR 55.40 million).

The Agreement allows for a two-stage payment over an estimated three month period following the conclusion of the Agreement. Future material will be acquired at a value of GBP 3.13 (ZAR 50.00) per tonne of material post chromite removal. The surface material is located within trucking distance of Jubilee's Hernic operation, thereby offering the opportunity to process the additional material at the Company's existing Hernic plant for PGM recovery. Jubilee also holds the option to acquire property located adjacent to the surface material for the construction of a dedicated platinum processing plant, if deemed appropriate, and at Jubilee's election.

On 9 May 2017 Jubilee executed the first payment of GBP 1.16 million (ZAR 20 million) as part of the PlatCro project. The PlatCro project includes the upfront acquisition of all PGMs contained in surface material as well as future PGMs from further processing and mining operations.

The final payment for the existing surface PGMs is subject to the completion of the surface drill programme and receiving regulatory approval to commence with the processing of the PGMs. The first payment was recognised in the statement of financial position as a prepayment until such time as the necessary conditions have been met. On 31 July 2017 Jubilee notified PlatCro that it has undertaken and completed a survey of the dam as provided for in the Agreement.

9.2 Project funding secured

On 9 August 2017, Jubilee secured a USD50 million project funding structure, provided by RiverFort Capital Group Limited ("RiverFort"), which is modelled on the successful Hernic platinum and chrome recovery project which was also financed through RiverFort.

10. Contingencies and commitments

Other than disclosed below, there are no material contingent assets or liabilities as at 30 June 2017.

10.1 PlatCro Platinum and Chrome Tailings Project ("PlatCro project")

Jubilee executed a framework and processing of tailings agreement ("the Agreement") with PlatCro Proprietary Limited ("PlatCro"). The Agreement provides for the acquisition of the platinum, palladium, rhodium and gold ("4E"or "PGMs") contained in the existing surface material as well as all future material at the PlatCro. Existing surface material is estimated to be 1.25 million tonnes at an estimated grade of 2.7 g/t 4E PGMs. On 9 May 2017 Jubilee executed the first payment of GBP 1.16 million (ZAR 20 million) as part of the PlatCro project.

The PlatCro project includes the upfront acquisition of all PGMs contained in surface material as well as future PGMs from further processing and mining operations of which the first payment equates to approximately 50 % of the acquisition value. The final payment for the existing surface PGMs is subject to the completion of the surface drill programme and receiving regulatory approval to commence with the processing of the PGMs. The first payment was recognised in the statement of financial position as a prepayment until such time as the necessary conditions have been met. On 31 July 2017 Jubilee notified PlatCro that it has undertaken and completed a survey of the dam as provided for in the Agreement. As at the period end Jubilee recognised the first payment of the acquisition value as a prepayment in an amount of GBP 1.16 million (ZAR 20 million).

Contacts

Jubilee Platinum PLC

Colin Bird/Leon Coetzer

Tel +44 (0) 20 7584 2155 / Tel +27 (0) 11 465 1913

Andrew Sarosi

Tel +44 (0)1752 221937

JSE Sponsor

Sasfin Capital, (a member of the Sasfin group)

Sharon Owens

Tel +27 (0)11 809 7500

Nominated Adviser

SPARK Advisory Partners Limited

Mark Brady/Andrew Emmott

Tel: +44 (0)203 368 3551

Broker

Beaufort Securities Limited

Jon Belliss

Tel: +44 (0) 20 7382 8300

Annexure 1

Jubilee Platinum Plc

Independent auditors' report to the members

Opinion

We have audited the financial statements of Jubilee Platinum Plc for the year ended 30 June 2017 which comprise the Consolidated and Company Statements of Comprehensive Income, the Consolidated and Company Statements of Financial Position, the Consolidated and Company Statements of Changes in Equity, the Consolidated and Company Statements of Cash flows and notes to the financial statements, including a summary of significant accounting policies set out on pages 30 to 71. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards ("IFRS") as adopted by the European Union.

In our opinion, the financial statements:

-- give a true and fair view of the state of affairs of the Group and of the parent company as at 30 June 2017 and of their losses for the period then ended;

-- have been properly prepared in accordance with IFRS as adopted by the European Union; and

   --                have been prepared in accordance with the requirements of the Companies Act 2006. 

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) ("ISAs (UK)") and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

-- the Directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-- the Directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) we identified, including those which had the greatest effect on: the overall audit strategy, the allocation of resources in the audit; and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the financial statement as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. This is not a complete list of all risks identified by our audit.

 
 Key audit matter                                                  How our audit addressed 
                                                                    the key audit matter 
----------------------------------------------------------------  ------------------------------------------------------------- 
 Carrying value of intangible 
  assets                                                            Our audit procedures included 
  The carrying value of                                             the following: 
  intangible assets included                                         *    Assessing the methodology used by the Directors to 
  in the Group's balance                                                  calculate recoverable amounts and evaluated if it 
  sheet at 31 December 2017                                               complies with the requirements of IAS 36; 
  was stated at GBP48.2m, 
  contained within 3 cash 
  generating units ("CGUs").                                         *    Assessing the viability of the platinum group 
                                                                          elements ("PGE") exploration asset by analysing 
  The Directors assess at                                                 future projected cash flows used in the value in use 
  each reporting period                                                   calculations for the CGU to determine whether the 
  end whether there is any                                                assumptions used in projecting the cash flows are 
  indication that an asset                                                reasonable and supportable given the current 
  may be impaired and intangible                                          macroeconomic climate; 
  assets with an indefinite 
  life must be tested for 
  impairment on an annual                                            *    Performing sensitivity analysis on key assumptions 
  basis. The determination                                                and testing the mathematical accuracy of models; 
  of recoverable amount, 
  being the higher of value-in-use 
  and fair value less costs                                          *    Comparing foreign exchange rates used in management's 
  to dispose, requires judgement                                          calculations against third party sources; 
  on the part of management 
  in both identifying and 
  then valuing the relevant                                          *    Understanding the commercial prospects of the assets, 
  CGUs, especially for projects                                           and where possible comparison of assumptions with 
  where the there is an                                                   external data sources; 
  uncertain timeframe. 
 
  Deferred tax liabilities                                           *    Reviewing correspondence and other sources for 
  are recognised on certain                                               evidence of impairment; 
  intangible assets following 
  business combinations 
  and these liabilities                                              *    Reviewing the recoverability of intercompany loans 
  are re-evaluated at each                                                within the parent company and indicators of 
  reporting period end.                                                   impairment in investments in subsidiaries; 
 
  Any impairment in these 
  CGUs could lead to subsequent                                      *    Assessing the appropriateness and completeness of the 
  impairments in the parent                                               related disclosures in note 8, intangible assets, of 
  company investments in                                                  the group financial statements; and 
  subsidiaries or intercompany 
  loans to these subsidiaries. 
                                                                     *    Recalculating the deferred tax liability relating to 
  Due to the significance                                                 specific intangible assets and assessing applicable 
  of the intangible assets                                                tax rates. 
  to the consolidated financial 
  statements, the significant 
  judgements involved in 
  these calculations and                                            Based on our procedures, 
  the potential impact to                                           we noted no material exceptions 
  parent company investments                                        and considered management's 
  and intercompany loans,                                           key assumptions to be within 
  the carrying value of                                             reasonable ranges. 
  intangible assets is a 
  key audit matter. 
----------------------------------------------------------------  ------------------------------------------------------------- 
 Key audit matter                                                  How our audit addressed 
                                                                    the key audit matter 
----------------------------------------------------------------  ------------------------------------------------------------- 
      Revenue recognition 
      Revenue for the year was                                      Our audit procedures included 
      GBP9.8m, representing                                         the following: 
      a significant increase                                         *    Evaluating the Group's revenue recognition policy and 
      on 2016. Additionally,                                              management's current year accounting assessment for 
      this is the first year                                              the fair value of consideration receivable; 
      of production at Hernic, 
      leading to the recognition 
      of revenue from platinum                                       *    Confirming the implementation of the Group's policy 
      group metals ("PGM") concentrate                                    to both PGM concentrate sales at Hernic and chromite 
      sales as well as chromite                                           concentrate sales at DCM by performing tests to 
      concentrate.                                                        confirm our understanding of the process by which 
                                                                          revenue is calculated; 
      As required by IFRS as 
      adopted by the European 
      Union, an entity is required                                   *    Confirming that fair value measurements are 
      to recognise revenue at                                             determined in accordance with IFRS 13; 
      the fair value of the 
      consideration received 
      or receivable when the                                         *    Comparing foreign exchange rates used in management's 
      following conditions have                                           calculations; 
      been satisfied: 
 
       *    the entity has transferred to the buyer the              *    Substantive tests agreeing concentrates to 
            significant risks and rewards of ownership of the             weighbridge tickets and underlying calculations to 
            goods;                                                        terms stipulated in individual customer contracts ; 
                                                                          and 
 
       *    the entity retains neither continuing managerial 
            involvement to the degree usually associated with        *    Assessing the appropriateness of the related 
            ownership nor effective control over the goods sold;          disclosures in notes 1.1 and 3, revenue recognition 
                                                                          accounting policy and revenue split by commodity, of 
                                                                          the group financial statements. 
       *    the amount of revenue can be measured reliably; 
 
 
       *    it is probable that the economic benefits associated    Based on our procedures, 
            with the transaction will flow to the entity; and       we noted no material exceptions 
                                                                    and considered management's 
                                                                    key assumptions to be within 
       *    the costs incurred or to be incurred in respect of      reasonable ranges. We consider 
            the transaction can be measured reliably.               that revenue recognition 
                                                                    has been recognised appropriately 
                                                                    and is in accordance with 
                                                                    the Group's revenue recognition 
      For the sale of chromite                                      policy. 
      concentrate and PGM concentrate, 
      revenue is initially recognised 
      at the fair value of the 
      consideration receivable, 
      which is an estimate of 
      the final sales price 
      (see note 1.11, revenue 
      recognition accounting 
      policy, for the full revenue 
      recognition policy). 
 
      Due to the significance 
      of revenue to the consolidated 
      financial statements, 
      the judgement involved 
      in estimating consideration 
      receivable and this being 
      the first year of revenue 
      generated at the Hernic 
      project, revenue recognition 
      is a key audit matter. 
----------------------------------------------------------------  ------------------------------------------------------------- 
 
 
 Key audit matter                     How our audit addressed 
                                       the key audit matter 
-----------------------------------  -------------------------------------------------------------- 
 Accounting for project 
  finance raised in the year 
                                        Our audit procedures included 
  The carrying value of project         the following: 
  finance liabilities at                 *    Reviewing loan agreements to determine all individual 
  30 June 2017 was GBP3.8m.                   cash flows necessary to calculate the effective 
  Funding was raised in the                   interest rate required to hold the loans at amortised 
  year to finance the construction            cost; 
  and working capital of 
  the Hernic project. 
                                         *    Recalculating the effective interest rate and the 
  These borrowings are required               total liability as at 30 June 2017; 
  to be held at amortised 
  cost under IAS 39. Additionally, 
  when the conditions for                *    Reviewing loan agreements and other third party 
  borrowing costs to be capitalised           evidence to determine when the conditions under IAS 
  are met these are required                  23 where met to commence and cease capitalisation of 
  to be capitalised in accordance             borrowing costs; 
  with IAS 23. 
 
  Due to the introduction                *    Recalculating the borrowing costs required to be 
  of new, and significant,                    capitalised during the year; 
  liabilities during the 
  year, together with the 
  requirement to capitalise              *    Comparing foreign exchange rates used in management's 
  certain elements of borrowing               calculations; and 
  costs, accounting for project 
  finance is a key audit 
  matter.                                *    Assessing the appropriateness and completeness of the 
                                              related disclosures in notes 19 and 21, other 
                                              financial liabilities and financial instruments. 
 
 
 
                                        Based on our procedures, 
                                        we noted no material exceptions 
                                        and considered that disclosures 
                                        relating to project finance 
                                        have been made appropriately. 
-----------------------------------  -------------------------------------------------------------- 
 

Our application of materiality

We apply the concept of materiality in planning and performing our audit, in evaluating the effect of any identified misstatements and in forming our opinion. Our overall objective as auditor is to obtain reasonable assurance that the financial statements as a whole are free from material misstatement, whether due to fraud or error. We consider a misstatement to be material where it could reasonably be expected to influence the economic decisions of the users of the financial statements.

We have determined a materiality of GBP620,000 (2016: GBP500,000) for both the Group and Company financial statements. This is based on 1% of net assets prior to audit.

An overview of the scope of our audit

We tailored the scope of our audit to ensure that we obtained sufficient evidence to support our opinion on the financial statements as a whole, taking into account the structure of the Group and the Company, the accounting processes and controls and the industry in which the Group operates.

As Group auditors we carried out the audit of the Company financial statements and, in accordance with ISA 600, obtained sufficient evidence regarding the audit of seven subsidiaries undertaken by component auditors in South Africa and Australia. These seven subsidiaries were deemed to be significant to the Group financial statements either due to their size or their risk characteristics. The Group audit team directed, supervised and reviewed the work of the component auditors in South Africa and Australia, which involved issuing detailed instructions, holding regular discussions with component audit teams, performing detailed file reviews and visiting South Africa to attend local audit meetings with management. Audit work in South Africa and Australia was performed at materiality levels of GBP100,000, lower than Group materiality.

As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements. In particular, we looked at where the Directors made subjective judgements, for example in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. We also addressed the risk of management override of internal controls, including evaluating whether there was evidence of bias by the Directors that represented a risk of material misstatement due to fraud.

Other information

The Directors are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information; we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-- the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-- the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

-- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-- the financial statements are not in agreement with the accounting records and returns; or

   --                certain disclosures of Directors' remuneration specified by law are not made; or 

-- we have not received all the information and explanations we require for our audit.

Responsibilities of Directors

As explained more fully in the Directors' Responsibilities Statement set out on page 20, the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

.........................................

Andrew Gaskell (Senior Statutory Auditor)

for and on behalf of Saffery Champness LLP

Chartered Accountants

Statutory Auditors

71 Queen Victoria Street

London

EC4V 4BE

9 November 2017

Annexure 2 - Headline earnings per share

Accounting policy

Headline earnings per share (HEPS) is calculated using the weighted average number of shares in issue during the period under review and is based on earnings attributable to ordinary shareholders, after excluding those items as required by Circular 2/2013 issued by the South African Institute of Chartered Accountants (SAICA).

                                                                                                                                                              30 June 2017     30 June 2016 
 
Headline loss per share comprises 
 the following: 
Continuing operations 
Loss from continuing operations for 
 the period attributable to ordinary 
 shareholders                                (10 570)  (3 412) 
Impairment of other financial assets 
 net of tax                                     8 522      856 
Loss on sale of property plant and 
 equipment                                          -        1 
Loss on exchange differences                       72       81 
-------------------------------------------  --------  ------- 
Headline loss from continuing operations      (1 976)  (2 474) 
-------------------------------------------  --------  ------- 
Weighted average number of shares 
 in issue                                     984 780  906 241 
Headline loss per share from continuing 
 operations (pence)                            (1.07)   (0.27) 
Headline loss per share from continuing 
 operations (ZAR cents)                       (18.55)   (5.85) 
Discontinued operations 
Loss from discontinued operations 
 for the period attributable to ordinary 
 shareholders                                       -    (283) 
Headline loss from discontinued operations          -    (283) 
-------------------------------------------  --------  ------- 
Weighted average number of shares 
 in issue                                     984 780  906 241 
Headline loss per share from discontinued 
 operations (pence)                                 -   (0.03) 
Headline loss per share from discontinued 
 operations (ZAR cents)                             -   (0.67) 
Average conversion rate used for 
 the period under review GBP:ZAR              0.05786  0.04667 
-------------------------------------------  --------  ------- 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

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