ADVFN Logo ADVFN

We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for default Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.

JLP Jubilee Metals Group Plc

7.10
-0.10 (-1.39%)
16 Apr 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
  -0.10 -1.39% 7.10 7.10 7.20 7.40 7.15 7.40 3,312,002 16:35:19
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Miscellaneous Metal Ores,nec 141.93M 12.91M 0.0047 15.21 195.78M

Jubilee Metals Group PLC Interim Financial Report 6 months to December 2023

26/02/2024 7:00am

RNS Regulatory News


RNS Number : 4127E
Jubilee Metals Group PLC
26 February 2024
 

Jubilee Metals Group PLC

Registration number: 4459850

Altx share code: JBL

AIM share code: JLP

ISIN: GB0031852162

(Jubilee or the Company or the Group)

 

Dissemination of a Regulatory Announcement that contains inside information according to UK Market Abuse Regulations. Not for release, publication or distribution in whole or in part in, into or from any jurisdiction where to do so would constitute a violation of the relevant laws or regulations of such jurisdiction.

 

Unaudited interim financial report for the six months ended 31 December 2023

Jubilee, a leading diversified metals processor in Africa, with its expanding copper operations and its substantial contribution to global chrome concentrate production, has published its unaudited interim financial report for the six months ended 31 December 2023 (H1 FY2024).

Highlights

§ Strong operational performance was delivered by the Group with increased production across all operations delivering growth in revenue and earnings

§ Zambian copper operations continue to show strong growth, driven by the investment in the expansion projects with an expected further sharp increase on completion of the upgrade to the Roan copper concentrator (Roan)

§ Copper cathode and copper in concentrate (copper units) production increased by 46.5% to 1 683 tonnes (t) (H1 FY2023: 1 149t)

§ Chrome concentrate production increased by 7.4% to 718 189t (H1 FY2023: 668 809t)

§ Platinum group metals (PGM) production increased by 11.2% to 20 244 ounces (oz) (H1 FY2023: 18 208oz).

§ The Group invested £12.9 million (H1 FY2023: £30.1) in the expansion of its copper and chrome operations

§ Group revenue increased by 18.4% to £74.7 million (H1 FY2023: £63.1 million) driven by increased production during the period

§ Group earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 13.6% to £11.7 million (H1 FY2023: £10.3 million)

§ Group profit after tax increased by 7.3% to £4.4 million (H1 FY2023: £4.1 million)

§ Earnings per share increased by 6.7% to 0.16 pence per share (H1 FY2023: 0.15 pence per share)

§ Successfully concluded an oversubscribed placing of £13 million before costs at 5.5 pence per share on 4 January 2024 to mainly accelerate the copper expansion drive

§ Partnered with Abu Dhabi's International Resources Holding RSC Limited (IRH) to develop the 'Waste Rock Project' in Zambia, to process an approximate 260 million tonnes (Mt) of copper-containing waste rock with the intention of closing the transaction mid-March

Statement from Leon Coetzer, Chief Executive Officer:

"The extent of our strong production performance, supported by the continued expansion of our copper and chrome operations, was able to offset a significant reduction in PGM metal prices to deliver growth in both revenue and earnings.   

In Zambia, where we are investing and growing production, copper output improved by 46.5% despite the disruption caused by the implementation of the ongoing Roan concentrator front-end upgrade project. As a reminder, this project will allow Roan to process multiple feed sources of copper oxide and sulphides simultaneously with a capacity of 13 000t per annum of copper contained in copper concentrates. The timely completion of the Roan upgrade is key towards achieving the copper guidance for the full period due to the expected significant step-up in copper production this project brings. Initial delays suffered due to international logistical constraints have been addressed by reprioritising local production of key remaining components. The Jubilee technical team continues to actively push the implementation timelines.    

At our Sable refinery, the expansion of the copper sulphide circuit is underway to better accommodate the expected sharp increase in copper production resulting from both our Roan operations and the development of the Munkoyo copper resource project located near Sable.

The exciting partnership on the new waste rock deposit with Abu Dhabi's IRH, announced in December, highlights our commitment to leveraging innovative, cost-effective and environmentally sustainable mining solutions. This initiative is poised to unlock significant value from one of Zambia's largest copper waste rock assets, aligning with our dedication to responsible mining practices.

Our South African operations, with stable production and incremental growth plans, delivered an increase of 7.4% in chrome concentrates reaching in excess of 718 000t over the six-month period, placing us well on track to meet and exceed guidance. Our additional chrome expansion projects are underway with the election to add further chrome processing modules to the Thutse operations as we move closer to achieving our goal of 2 Mt tonnes per annum of chrome concentrate. The PGM output as a by-product of the chrome operations further improved processing efficiencies to increase production by 11.2% for the period under review.

While unit costs increased in the period, largely as a result of the processing of more own-sourced chrome feed material and higher logistics costs for the PGM feeds, South Africa remains a stable, free cash flow-generating base for the Group, capable of funding its own growth projects.

Environmental, social and corporate governance (ESG) efforts continue to be at the forefront of our operations, with renewable energy in Zambia and the roll-out of our Group safety management system providing incremental steps towards sustainable mining in the locations where we operate."

 

Operational highlights

Zambia

§ Copper units produced increased by 46.5% to 1 683t (H1 FY2023: 1 149t). The improved copper production was achieved despite the operational disruptions at Roan as part of the ongoing front-end module upgrade project which is set to significantly increase copper production during the remaining half-year period

§ The safety performance in Zambia showed significant improvement, with the lost time injury frequency rate (LTIFR) reducing to 0.61 (H1 FY2023: 2.9)

 

South Africa

 

§ Chrome production increased by 7.4% to 718 189t (H1 FY2023: 668 809t)

§ Chrome revenue per tonne increased by 36.4% to US$90/t (H1 FY2023: US$66/t), supported by a strong chrome pricing environment and Jubilee's strategy to process additional own-sourced material

§ Chrome cost per tonne increased by 19.7% to US$73/t (H1 FY2023: US$61/t), as a result of purchasing and processing more own-sourced chrome feed material

§ PGM production increased by 11.2% to 20 244oz (H1 FY2023: 18 208oz)

§ PGM cost per ounce increased by 16.4% to US$895/oz (H1 FY2023: US$769/oz), driven by higher logistics costs associated with the tailings material processed in the current reporting period

§ The South African operations' safety remains a focus point, with LTIFR regressing to 2.17 (H1 FY2023: 1.0)

 

Financial highlights

 

Group

§ Group revenue increased by 18.4% to £74.7 million (H1 FY2023: £63.1 million) comprising:

o Copper units revenue increased by 23.5% to £6.3 million (H1 FY2023: £5.1 million), supported by improved average copper cathode market prices of US$8 262/t (H1 FY2023: US$7 864/t) achieved

o Chrome revenue increased by 46.2% to £51.9 million (H1 FY2023: £35.5 million) due to of chrome concentrate tonnes sold increasing by 13.9% to 721 974t (H1 FY2023: 634 111t), supported by the average chrome concentrate price per tonne received increasing by 36.4% to US$90/t (H1 FY2023: US$66/t)

o PGM revenue decreased by 26.7% to £16.5 million (H1 FY2023: £22.5 million), being negatively impacted by a 29.7% decrease in the average US$ PGM basket price received to US$1 021/oz (H1 FY2023: US$1 453/oz) while offset by PGMs sold increasing by 11.2% to 20 244oz (H1 FY2023: 18 208oz)

§ Group cost of production increased by 24.4% to £60.7 million (H1 FY2023: £48.8 million) predominantly due to an increase in our chrome feed purchases and higher logistical costs of PGM tailings materials processed during the period   

§ Group EBITDA increased by 13.6% to £11.7 million (H1 FY2023: £10.3 million)

§ The Group's capital investment in non-current assets decreased to £13.2 million (H1 FY2023: £30.5 million) because of expansion projects concluding in Zambia and South Africa during the period under review

§ The Group had £5.0 million in cash at the end of the period (30 June 2023: £12.6 million), noting that, on 4 January 2024, the Company raised £13 million before expenses through an equity placing to fund its Zambian strategy and growth

Zambia

 

§ Copper units revenue improved by 23.5% to £6.3 million (H1 FY2023: £5.1 million)

§ Copper units cost per tonne improved by 13.0% to US$4 554/t (H1 FY2023: US$5 232/t), mainly due to the improved copper production period-on-period

§ Copper units gross profit improved by 66.6% to £2.0 million (H1 FY2023: £1.2 million)

 

South Africa

 

§ Chrome revenue increased by 46.5% to £52.0 million (H1 FY2023: £35.5 million), benefiting from the new Thutse Project and the following:

o Chrome concentrate sales tonnes increased by 13.9% to 721 974t (H1 FY2023: 634 111t)

o The average chrome concentrate price per tonne received increased by 36.4% to US$90/t (H1 FY2023: US$66/t)

§ The average chrome cost per tonne increased by 19.7% to US$73/t (H1 FY2023: US$61/t), given the additional own-sourced chrome feed material purchased in the current reporting period

§ Chrome gross profit increased by 296.0% to £9.9 million (H1 FY2023: £2.5 million)

§ PGM revenue decreased by 26.7% to £16.5 million (H1 FY2023: £22.5 million), predominantly due to:

o PGM ounces sold increased by 11.2% to 20 244oz (H1 FY2023: 18 208oz)

o The US$ PGM average basket price per ounce received decreasing by 29.7% to US$1 021/oz (H1 FY2023: US$1 453/oz)

§ PGM cost per ounce increased by 16.4% to US$895/oz (H1 FY2023: US$769/oz) due to higher logistical costs associated with the tailings feed sources for the Inyoni plant in the current period

§ PGM gross profit decreased by 80.9% to £2.0 million (H1 FY2023: £10.5 million)

Outlook

 

§ The Group's focus is on innovative modular processing technology to achieve low-cost, near-term production growth, with a strategic goal to expand operations to exceed 25 000t per annum of copper content in copper cathode and concentrates achieved by:

o Upgrading the Sable refinery and the Roan concentrator to increase production capacities, with Sable's capacity expansion to 16 000t and Roan's to 13 000t of copper units per annum. A significant upgrade includes the

construction of Sable's sulphide circuit expected in Q3 CY2024 and the commissioning and ramp-up of a new copper processing module at Roan by the end of April 2024, aiming to boost copper production significantly

o Jubilee's Project Munkoyo, advancing on schedule near Sable, anticipates its first test material delivery in Q4 FY2024, supporting long-term quality copper supply starting early in CY2025, aligning with the strategy to enhance copper resources and processing capacity through innovative projects and further opportunities in Zambia

o Concluding the Waste Rock Project acquisition with our partners IRH by mid-March 2024, which will provide the Group with a fully funded 30% position in one of Zambia's largest waste rock dumps while being appointed under a management contract to design, implement and operate the project

§ The Group is uniquely positioned to enhance Thutse's capacity by constructing two additional 50 000t per month modules, thereby achieving our long-term annual production target of 2Mt of chrome concentrates

§ The Group's FY2024 production guidance:

o Guidance of 5 850t for copper units is unchanged pending the timely commissioning of the front-end upgrade of Project Roan

o Chrome operations expected to exceed guidance of 1.45Mt of chrome concentrate

o PGM production guidance of 42 000oz remains unchanged

Sustainability

 

Zambia renewable energy

Jubilee's environmentally sustainable methods in copper production are highlighted by its 'green copper' processing in Zambia. In the period reviewed, 85% of the power generation for the Zambian operations came from renewable energy, mainly hydroelectricity. The renewable energy sources make the operations in Zambia a low source of Scope 2 greenhouse gas emissions, emitting less than 0.5 tonnes of carbon dioxide (CO2) equivalent per month.                                                                                                                                                                                                                                                           

With this renewable energy profile and the secondary and historical waste rock and tailings sources, Jubilee reinforces its commitment and participation in eco-friendly 'green copper' mining and processing methods in its operations.

ESG highlights

§ Jubilee's ESG performance over the past six months has demonstrated notable achievements and areas of improvement

§ Regarding safety, the Zambian operations achieved zero lost time injuries in the reporting period, significantly lowering the LTIFR from 2.36 to 0.61.

§ The successful roll-out of the mySHEQ safety management system is enhancing safety protocols by centralising all safety, health and environmental matters into one accessible system. This will help to enhance the safety performance of the South African operations in the future.

§ Scope 1 emissions increased by 20%, attributed predominantly to the increase in the Group's chrome production profile and the increased diesel usage associated with the transport of ROM to our modular chrome processing facilities. This resulted in an increase in kilogramme CO2 emissions per chrome tonne to 6.62 (H1 FY2023: 4.95)

§ Scope 2 emissions increased marginally by 3%, with kilogramme CO2 emissions per chrome tonne reaching 7.71 (H1 FY2023: 7.49).

§ There has been a 30% reduction in water usage, averaging 1.6 (H1 FY2023: 2.3) cubic metres per chrome tonne produced

§ On a social responsibility front:

o In demonstrating Jubilee's commitment to local communities, the Group invested in two additional boreholes in the Windsor 8 community

o Front end loader training was provided to Inyoni community members; similar training is underway for members of Windsor SA Plant 1-7

Operational review, strategy and growth projects

Zambia

Sable and Roan

Jubilee gained its footprint in Zambia when acquiring the Sable in 2019. In April 2021, Jubilee commenced site construction and, in May 2021, Jubilee established its inaugural copper concentrator, named Roan, in Ndola. Since operating these two facilities, the Jubilee Technical Services (JTS) team has been working tirelessly to develop low-cost, near-term production growth through innovative modular processing technology for its Zambian operations.

 

The Company's strategy in Zambia is to expand its operations to reach an initial goal of
25 000t per annum of copper content in copper cathode and copper concentrates. The strategy includes the expansion of both Jubilee's processing capacity and copper resource base.

 

Jubilee is currently in the process of upgrading its Sable refinery and Roan concentrator, to expand Sable's capacity from 14 000t of copper units to 16 000t of copper units per annum. Roan will be able to process multiple feed sources of copper oxide and sulphides simultaneously with a capacity of 13 000t per annum of copper units.

 

Construction of Sable's expansion to the sulphide circuit is expected to commence during Q3 CY2024. The upgrade forms part of Jubilee's strategy to expand Sable's capacity to produce up to 16 000t copper units per annum.

 

As announced on 8 February 2024, the manufacturing and testing of the new 50 000t per month copper processing module is now complete, with the final components being prepared for transit to Roan for commissioning and will be delivered within the nine-week timeline as previously communicated. The copper processing module will be in production and contributing to the copper production by the end of April 2024.

 

Project Munkoyo

 

The development of Project Munkoyo near Sable is progressing to schedule with the first feed material from this exciting copper resource expected to be delivered to Sable during Q4 FY2024. The material forms part of the development of a detailed surface copper resource definition, which offers the potential of a long-term quality copper supply to Sable from early in CY2025.  

 

Project Munkoyo and the Waste Rock Project as detailed below, align with Jubilee's strategy of unlocking overlooked copper resources through the application of processing capability. Jubilee has identified several further similar opportunities in Zambia which it seeks to secure in the near term as it drives to continuously increase its copper resource base as the catalyst for further expanding its processing capacity.

Waste Rock Project

In November 2023, Jubilee announced a partnership with Abu Dhabi's IRH to develop the 'Waste Rock Project' in Zambia, targeting the production of 24 000t of copper units annually at a cost below US$4 000 per tonne. This project, leveraging Jubilee's modular units and a potential US$50 million investment from IRH, aims to process a confirmed 260Mt of historical waste rock with copper grades over 1.5%. Jubilee and IRH are in the process of completing due diligence and documentation. Jubilee is finalising project details, including detailed drilling and processing trials, with a completion target of mid-March 2024, emphasising cost-effective and sustainable mining solutions.

The accelerated development of the newly secured large copper waste rock asset is being progressed along various work streams. This includes the development of a more detailed resource definition, undertaking bulk processing trials of the source material by the JTS to confirm detailed designs of the processing units and securing of manufacturing capacity for plant and equipment.  

Mufulira Slag Project

The Mufulira Slag Project is a new project which targets the processing of all historical slag waste from the Mufulira smelter operations under a joint venture agreement with Mopani Copper Mines. The JTS has commenced the joint technical review of the project to create an environmentally friendly processing solution. More information about the project will be available once the JTS concludes this initial technical review.

South Africa

Jubilee's ability and capacity to feed multiple types of material and produce multiple commodities are advantageous as this helps to mitigate the impact of market fluctuations. This diversified approach has provided stability and resilience for Jubilee during the period under review.

Five years ago, Jubilee installed its first chrome processing module in South Africa. Today, the Company has eight individual chrome modules, placing Jubilee as one of the world's largest chrome concentrate producers. Jubilee's chrome operations also contribute to its downstream capability to produce 44 000oz of PGMs per annum.

Chrome operations

The Group is making progress in negotiations to establish additional life-of-mine partnerships at its Thutse Project. At the same time, the Company is focusing on expanding its chrome operations through the implementation of two additional processing modules. This initiative is part of the strategic plan to achieve a future annual chrome concentrate production milestone in excess of 2Mt per annum. It is expected that these two chrome modules will be operational by Q3 CY2024 and will be capable of producing 300 000t of chrome concentrates per annum.

The modules will cost approximately US$12 million, funded through cash generated by the chrome operations. The project's initiation is dependent on internal approvals and securing the necessary working capital funding to purchase and stockpile ROM material for the Thutse chrome processing modules.

PGM operations

The Group's PGM operations are performing strongly and are on track despite the fluctuation of metals prices. The PGM operations will benefit from the targeted increased production of chrome concentrates. While the Group's production capacity of 44 000 PGM ounces per annum will likely be exceeded with the expansion of the chrome production, we will look towards established relationships and surplus PGM concentrate refining capacity to be treated. In the current year, the Group processed no third-party material.

The table below sets out the operational and financial unit results contributing to revenue and gross profit for the period under review.

 

 

 

Unaudited

Unaudited

 

Audited

 

 

H1 FY2024

H1 FY2023

% change*

FY2023

GROUP

Unit

 

 


 

Revenue

£'000

74 718

63 098

18.4%

141 929

Gross profit

£'000

13 995

14 312

(2.2%)

31 391

Gross profit percentage

%

19

23

(17.4%)

22

EBITDA

£'000

11 657

10 286

13.3%

24 783

PGM






Revenue

£'000

16 483

 22 505

(26.8%)

44 477

Revenue

US$'000

20 667

26 455

(21.9%)

53 556

Gross profit

£'000

 2 037

 10 587

(80.8%)

16 815

Gross profit

US$'000

2 554

12 445

(79.5%)

20 248

Gross profit percentage

%

12

47

(74.5%)

38

Ounces sold

oz

 20 244

 18 208

 11.2%

43 433

Revenue per ounce

US$/oz

1 021

1 453

(29.7%)

1 262

Cost per ounce

US$/oz

895

769

16.4%

785

Gross profit margin

US$/oz

126

684

 (81.6%)

    477

CHROME






Revenue

£'000

51 954

 35 500

46.3%

80 575

Revenue

US$'000

65 141

41 731

56.1%

97 023

Gross profit

£'000

9 970

2 501

298.6%

9 773

Gross profit

US$'000

12 501

2 940

325.2%

    11 768

Gross profit percentage

%

19

 7

171.4%

12

Tonnes produced

t

718 189

668 809

7.4%

1 289 890

Tonnes sold

t

721 974

634 111

13.9%

1 275 558

Revenue per tonne

US$/t

90

66

36.4%

76

Cost per tonne

US$/t

73

61

19.7%

67

Gross profit margin

US$/t

17

 5

240%

9

COPPER UNITS






Revenue

£'000

6 280

 5 092

23.3%

16 877

Revenue

US$'000

 7 874

 5 986

31.5%

20 322

Gross profit

£'000

1 988

 1 227

62.0%

4 915

Gross profit

US$'000

2 492

1 442

72.8%

5 918

Gross profit percentage

%

 31.7

 24.1

31.5%

29

Tonnes sold

t

1 182

868

36.2%

2 728

Revenue per tonne

US$/t

6 663

6 893

(3.3%)

7 451

Cost per tonne

US$/t

4 554

5 232

(13.0%)

5 281

Gross profit margin

US$/t

2 109

 1 661

27.0%

2 171

* Due to rounding the percentages listed in the table above may differ to percentages listed in the highlights

 

Financial performance analysis

 

Exchange rates and their impact on results

 

Jubilee subsidiaries are incorporated in multiple jurisdictions including South Africa (ZAR), Zambia (ZMW), Mauritius (US$), the United Kingdom (£/GBP) and Australia (AUD). The Group's operating subsidiaries are in South Africa and Zambia where revenue is invoiced in US$ and recorded in ZAR and ZMW, respectively. Costs incurred in South Africa are in ZAR. Costs incurred in Zambia are in both ZMW and US$. The functional currency for South Africa is ZAR and for Zambia it is ZMW, while the Group's reporting currency is pound sterling (£/GBP).

 

Period-on-period changes in the currency rates, respectively, must be considered when comparing period-on-period results. During the period under review, spot and average exchange rates moved as illustrated below.

 

SPOT

H1 FY2024

H1 FY2023

% change

US$/GBP

1.27

      1.21

5.0%

ZAR/GBP

   23.27

 20.55

13.2%

ZMW/GBP

   32.78

    21.78

50.5%

AVERAGE

H1 FY2024

H1 FY2023

% change

US$/GBP

     1.25

      1.18

5.9%

ZAR/GBP

  23.41

    20.33

15.1%

ZMW/GBP

   26.44

    19.20

37.7%

 

Revenue

 

Revenue for the period increased by 18.4% to £74.7 million (H1 FY2023: £63.1 million) mainly driven by increased chrome concentrate sales by 13.9% from H1 FY2023 to 721 974t in H1 FY2024 and a 36.4% increase in the US$ chrome price per tonne achieved. Chrome revenue contributed 69.5% (FY2023: 56.2%) to total Group revenue. PGM revenue decreased by 26.8% with PGM basket prices regressing by 29.7% to US$1 021/oz. Copper units revenue increased by 23.5% to £6.3 million (H1 FY2023: £5.1 million) mainly attributable to a 36.2% increase in copper units tonnes sold.

 

Cost of production

 

Cost of production increased by 24.4% to £60.7 million (H1 FY2023: £48.8 million). Cost of production for the chrome and PGM operations in South Africa contributed 93.1% of the Group's cost of production amounting to £56.5 million (H1 FY2023: £44.9 million (92%)).

 

The main categories of cost of production for chrome and PGM operations include:

 

-     Electricity costs increased by 41.7% in South Africa to £1.7 million (H1 FY2023: £1.2 million) due to tariff increases, higher production and diesel generation costs to counter the power challenges in South Africa

 

-     Salaries and wages increased by 22.6% to £3.8 million (H1 FY2023: £3.1 million) contributing 6.3% of the Group's total cost of production (H1 FY2023: 6.3%). As the chrome operations have expanded, the salaries and wages have commensurately increased

 

-     Mining and processing costs increased by 25.6% to £51.0 million (H1 FY2023: £40.6 million), mainly driven by a 29.4% increase in run-of-mine (ROM) and tailings costs as the chrome operations expanded into own-sourced material during the period under review. ROM and tailings costs contributed 55.5% of the Group's total cost of production (H1 FY2023: 53.3%).

 

Cost of production for the Zambian operations increased by 7.7% to £4.2 million (H1 FY2023: £3.9 million). The Zambian operations contributed 6.9% of the Group's cost of production.

 

Other operating costs

 

Other operating expenses increased by 5.2% to £10.2 million (H1 FY2023: £9.7 million) predominantly due to inflationary increases during the period under review.

 

Finance cost

 

Finance cost increased 93.8% to £3.1 million (H1 FY2023: £1.6 million). The increase is a result of holding higher quantities of ROM and tailings which were funded by new working capital facilities.

 

Fair value adjustments

 

In 2018, Jubilee acquired 100% of Enviro Mining Limited from Kendrick Resources, thereby securing full ownership and control over Kabwe Operations Limited during June 2020. The acquisition resulted in a fair valuation of a £2.8 million liability, contingent on the earnings payable from the Kabwe Project. Following the acquisition, the fair value of this liability was reassessed due to recent project assessments, leading to a downward adjustment of £2.8 million in the liability's fair value.

 

Capital expenditure

 

During the period, the Company invested £12.9 million (H1 FY2023: £30.5 million) in capital to expand its South African chrome operations and to continue with the upgrade and expansion of its Roan copper concentrator's processing facility in Zambia.

 

Cash and debt facilities

 

As at 31 December 2023, the Company's cash and cash equivalents balance was £5.0 million (FY2023: £12.6 million). Net cash generated from operating activities was £2.6 million (FY2023: £31.0 million), impacted predominately due to a lower change in working capital period-on-period of £1.3 million (FY2023: £17.4 million).

 

For the period under review the Company is reviewing strategies to consolidate debt and working capital facilities. Additionally, the Absa £12.9 million (ZAR300 million) revolving credit facility will be refinanced by mid-April 2024.

Investor call

Management will host a presentation and Question and Answer session for investors at 09:00 UK time on 28 February 2024. Investors can sign up to Investor Meet Company at no cost at https://bit.ly/3kT8Fb9

Investors who already follow Jubilee Metals on the Investor Meet Company platform have automatically been invited. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 09:00 the day before the meeting or at any time during the live presentation.

Analyst conference call and webcast

Jubilee will host a conference call and webcast for analysts at 11:00 UK time on 28 February 2024. To attend the analysts' call, please contact investor relations at jubilee@tavistock.co.uk

26 February 2024

For further information, visit www.jubileemetalsgroup.com, follow Jubilee on Twitter (@Jubilee_Metals) or contact:

Jubilee Metals Group PLC 

Leon Coetzer (CEO)/Neal Reynolds (CFO)

Tel: +27 (0) 11 465 1913 

 

Nominated adviser - SPARK Advisory Partners Limited 

Andrew Emmott/James Keeshan 

Tel: +44 (0) 20 3368 3555 

 

Public Relations and Investor Relations adviser - Tavistock 

Jos Simson/Gareth Tredway

Tel: +44 (0) 20 7920 3150 

 

Joint broker - Berenberg 

Matthew Armitt/Jennifer Lee/Detlir Elezi 

Tel: +44 (0) 20 3207 7800 

 

Joint broker - WHIreland 

Harry Ansell/Katy Mitchell  

Tel: +44 (0) 20 7220 1670/+44 (0) 113 394 6618 

 

JSE sponsor - Questco Corporate Advisory Proprietary Limited 

Alison McLaren

Tel: +27 (0) 11 011 9207

About Jubilee

Jubilee is a low-cost, diversified producer, specialising in the recovery of metal from previously overlooked resources, such as unprocessed historical waste rock, run-of-mine materials and tailings in South Africa and Zambia. The Company's low-capex, modular processing facilities are deployed close to these various types of material, producing high grade concentrates for sale or further refining to finished metal at the Company's downstream facilities. Production currently consists of chrome, copper and platinum group metals (PGMs). The modular processing facilities offer a platform for growth and the rapid expansion of its operational footprint. Jubilee's success is derived from operational excellence, a highly experienced management team and a pioneering Technical Development Centre.

 

UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2023

 

Consolidated statements of comprehensive income for the six months ended 31 December 2023

 



Unaudited

Unaudited

Audited

Figures in pound sterling ('000)

Notes

H1 FY2024

H1 FY2023






Revenue


74 718

 63 098

141 929

Cost of sales


 (60 723)

 (48 786)

(110 538)

Gross profit


13 995

 14 312

31 391

Operating costs


 (10 191)

 (9 651)

(15 873)

Operating profit

 

3 804

4 661

15 518

Investment income


823

845

1 615

Fair value adjustments


2 874

 362

313

Finance costs


 (3 127)

 (1 604)

(5 165)

Profit before taxation

 

4 374

 4 264

12 281

Taxation


 (5)

 (198)

688

Profit for the period

 

4 369

4 066

12 970

Attributable to:





Owners of the Parent


4 384

 3 928

12 914

Non-controlling interest


(15)

 138

56

Profit for the period


4 369

4 066

12 970

Reconciliation of other comprehensive loss:





Other comprehensive loss





Profit for the period


4 369

4 066

12 970

Loss on translation of foreign subsidiaries

 

           (27 948)

           (7 908)

(20 866)

Total other comprehensive loss

 

(23 579)

(3 842)

(7 896)

Attributable to:


 

 

 

Owners of the Parent


 (23 451)

 (3 840)

(7 400)

Non-controlling interest


(128)

(2)

(497)

Total other comprehensive loss


(23 579)

 (3 842)

(7 897)






Weighted average number of shares ('000)


2 738 130

2 664 488

2 738 130

Earnings per share (pence)

2

0.16

0.15

0.48

Diluted earnings for the period


4 384

3 928

12 970

Diluted weighted average number of shares ('000)


2 744 924

2 716 128

2 733 244

Diluted earnings per share (pence)


0.16

0.15

0.47

 

Consolidated statements of financial position as at 31 December 2023

 



Unaudited

Unaudited

 Audited

Figures in pound sterling ('000)

Notes

H1 FY2024

H1 FY2023

FY2023

Assets





Non-current assets





Property, plant and equipment


75 913 

 87 840 

 88 697

Intangible assets


77 650

80 069

79 883

Other financial assets

5

14 587

 14 925

 14 138

Non-current inventory


13 199

 12 572

 13 506

Deferred tax


4 785

 4 188

5 930

Total non-current assets

 

186 134

199 594

202 154

Current assets





Inventories


32 727

32 988

 35 665

Other financial assets

5

346

462

 338

Current tax

 

804

1 213

695

Trade and other receivables

 

35 853

 47 064

29 681

Contract assets

 

 17 362

 7 729

19 009

Cash and cash equivalents

 

4 961

 11 708

 12 596

Total current assets

 

92 053

101 164

 97 984

Total assets

 

 278 187

300 758

 300 138


 




Equity and liabilities

 




Share capital

6

161 120

 157 578

 161 120

Reserves


 (25 227)

 15 736

2 608

Retained income


42 101

28 731

37 717

Total equity before non-controlling interest

 

177 994

 202 045

 201 445

Non-controlling interest


3 085

3 708

3 213

Total equity

 

 181 079

 205 753

 204 658

Non-current liabilities





Other financial liabilities


-

 2 803

 2 803

Lease liability


2 719

191

 24

Deferred tax liability


11 808

 16 463

 13 852

Long-term provisions


 626

891

938

Total non-current liabilities


15 153

 20 348

 17 617 

Current liabilities





Trade and other payables


 60 263

 55 815

59 640

Revolving credit facility


17 091

 15 906

14 171

Current tax payable


4 601

 2 936

4 052

Total current liabilities

 

 81 955

 74 657

77 863

Total liabilities

 

97 108

 95 005

 95 480

Total equity and liabilities

 

278 187

 300 758

 300 138

 


Consolidated statements of changes in equity as at 31 December 2023








 

Figures in pound sterling ('000)

 Share capital

Merger reserve

 Share-based payment reserve

 Currency translation reserve

 Total reserves

Retained earnings

 Total attributable to Parent of equity holders

 Non-controlling interest

 Total equity

Balance as at 1 July 2022

155 539

23 184

3 372

(3 052)

23 504

24 803

203 846

3 710

207 556

Profit for the year

-

-

-

-

-

12 914

12 914

(497)

12 417

Other comprehensive loss

-

-

-

(20 313)

(20 313)

-

(20 313)

-

(20 313)

Total comprehensive (loss)/profit for the year

-

-

-

(20 313)

(20 313)

12 914

(7 399)

(497)

(7 897)

Issue of share capital net of costs

4 563

-

-

-

-

-

4 563


4 563

Share warrants exercised

935

-

(935)

-

(935)

-

-

-

-

Share options exercised/lapsed

83

-

(83)

-

(83)

-

-

-

-

Share options granted

-

-

435

-

435

-

435

-

435

Total changes

5 581

-

(583)

(20 313)

(20 896)

12 914

(2 401)

(497)

(2 898)

Balance as at 1 July 2023

161 120

23 184

2 789

(23 365)

2 608

37 717

201 445

3 213

204 658

Profit for the period

-

-

-

-

-

4 384

4 384

(128)

4 256

Other comprehensive loss

-

-

-

(27 835)

(27 835)

-

(27 835)

-

(27 835)

Total comprehensive (loss)/income for the period

-

-

-

(27 835)

(27 835)

4 384

(23 451)

(128)

(23 579)

Total changes

-

-

-

(27 835)

(27 835)

4 384

(23 451)

(128)

(23 579)

Balance as at 31 December 2023

161 120

23 184

2 789

(51 200)

(25 227)

42 101

177 994

3 085

181 079

 


Consolidated statements of cash flow for the six months ended 31 December 2023

 


Unaudited

Unaudited

Audited

Figures in pound sterling ('000)

H1 FY2024

H1 FY2023

FY2023

Cash flow from operating activities




Profit before taxation

4 374

4 264

12 281

Adjustments for:




Depreciation and amortisation

4 978

 4 648

 8 952

Investment income

(823)

 (845)

 (1 615)

Finance cost

3 127

 1 604

 5 165

Share-based payments

 -  

 -  

436

Fair value adjustments

 (2 874)

 (362)

 (313)

Other movements

 (312)

 (38)

4

Effect of exchange rate movement on cash balances

 (662)

 (1 688)

 (5 789)

Working capital changes




-      Inventories

 2 631

 (5 317)

 (9 826)

-      Trade and other receivables

 (4 526)

 13 034

 20 220

-      Trade and other payables

 623

 4 265

7 008

Cash generated from operations

 6 536

 19 565

 36 523

Investment income

 823

 845

 1 615

Finance cost


 (3 127)

 (1 604)

 (5 165)

Taxation paid


 (1 639)

 (1 847)

 (1 966)

Net cash from operating activities

 2 593

 16 959

 31 007

Cash flow from investing activities




Purchase of property, plant and equipment

 (10 216)

 (26 539)

 (33 782)

Sale of property, plant and equipment

-  

 11

28  

Purchase of intangible assets

 (3 018)

 (3 706)

 (9 130)

Increase in other financial assets

 -  

 (253)

 -  

Sale/(purchase) of non-current inventory

307  

 -  

 (999)

Net cash used in investing activities

 (12 927)

 (30 487)

 (43 883)

Cash flow from financing activities

   

   

   

Proceeds from share issues net of costs

 -  

 2 039

4 563

Proceeds from revolving credit facilities

2 920

 7 435

 5 700

Increase in loans to joint ventures

 -  

 -  

 40

Decrease in other financial liabilities

 -  

 (1)

 (1)

Lease payments

 (174)

 (168)

 (336)

Net cash generated from financing activities

 2 746

 9 305

 9 966

Net decrease in cash and cash equivalents

 (7 588)

 (4 223)

 (2 910)

Cash and cash equivalents at the beginning of the period

12 596

 16 018

16 018

Effects of foreign exchange on cash and cash equivalents

 (47)

 (87)

 (512)

Cash and cash equivalents at the end of the period

4 961

 11 708

 12 596

 

 

 

 

NOTES TO THE UNAUDITED INTERIM RESULTS

 

1.            Basis of preparation

The Group's unaudited interim results for the six months ended 31 December 2023 have been prepared using the accounting policies applied by the Company in compiling its 30 June 2023 annual financial statements which are in accordance with

§ International Accounting Standards (IAS), issued by the International Accounting Standards Board as adopted for use in the European Union (International Financial Reporting Standards (IFRS) and UK- adopted international accounting standards

§ South African Institute of Chartered Accountants (SAICA) Financial Reporting Guides as issued by the Accounting Practices Committee, IAS 34: Interim Financial Reporting

§ Listings Requirements of the JSE Limited (JSE)

§ Alternative Investment Market (AIM) rules of the London Stock Exchange

§ Companies Act 2006 (UK)

This condensed consolidated interim financial report does not include all notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the integrated annual report for the year ended 30 June 2023 and any public announcements by Jubilee Metals Group PLC. All monetary information is presented in the presentation currency of the Company being Great British Pound. The Group's principal accounting policies and assumptions have been applied consistently over the current and prior comparative financial periods. The financial information for the year ended 30 June 2023 contained in this interim report does not constitute statutory accounts as defined by section 435 of the Companies Act 2006. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The auditor's report on those accounts was unqualified and did not contain a statement under section 498(2)-(3) of the Companies Act 2006.

 

2.            Financial review

 

Earnings per share for the six months ended 31 December 2023 are presented as follows:


Unaudited

Unaudited

 Audited

 

H1 FY2024

H1 FY2023

FY2023

Earnings for the period (£'000)

4 384

3 928

12 914

Weighted average number of shares in issue ('000)

2 687 683

2 664 488

2 687 683

Diluted weighted average number of shares in issue ('000)

2 733 244

2 716 128

2 733 244

Earnings per share (pence)

0.16

0.15

0.48

Diluted earnings per share (pence)

0.16

0.15

0.47

The Group reported a net asset value of 6.9 pence (H1 FY2023: 7.6 pence) per share and a net tangible asset value per share of 3.8 pence (H1 FY2023: 7.6 pence) per share. The total number of shares in issue as at 31 December 2023 was 2 738 129 981 (H1 FY2023: 2 694 854 150).

 

3.            Dividends

 

No dividends were declared during the period under review (H1 FY2023: nil).

 

4.            Business segments

 

Following the strategic restructuring of Jubilee's operations and business model, management presents the following segmental information:

§ Chrome and PGM - the processing of PGM and chrome-containing material

§ Copper - the processing of copper units containing material

§ Other - Corporate costs and exploration assets

The Group's operations span five countries: South Africa, Australia, Mauritius, Zambia and the United Kingdom. There is no difference between the accounting policies applied in the segment reporting and those applied in the Group financial statements. Madagascar does not meet the qualitative threshold under IFRS 8, consequently no separate reporting is provided.                     

 

Segment report for the six months ended 31 December 2023

 

 

Figures in pound sterling ('000)

Chrome and PGM

Copper

 

Other

 

Total

Total assets

147 547

76 184

 54 456

278 187

Total liabilities

64 044

26 723

6 341

97 108

Total revenue

 68 438

6 280

 -  

74 718

Gross profit

12 007

1 988

-

13 995

Profit/(loss) before taxation

3 210

 (1 066)

2 232

4 376

Taxation

 (1 336)

1 417

(87)

(6)  

Profit after taxation

1 874

350

2 144

4 368

Interest received

365

 -  

458

823

Interest paid

 (2 458)

 (669)

 -  

(3 127)  

Depreciation and amortisation

 (4 195)

 (575)

 (208)

(4 978)  

 

Segment report for the six months ended 31 December 2022

 

 

Figures in pound sterling ('000)

PGM and chrome

Copper

Other

Total

Total assets

 134 973

 95 407

 70 378

 300 758

Total liabilities

 46 188

 27 674

 21 144

 95 006

Total revenue

 58 006

 5 092

 -  

63 098  

Gross profit

13 084

1 228

-

14 312

Forex losses - operations

 3

 6

 1

 10  

Profit/(loss) before taxation

 5 783

 (994)

 (525)

4 264

Taxation

 (44)

 (81)

 (73)

(198)  

Profit/(loss) after taxation

 5 739

 (1 075)

 (598)

 4 066

Interest received

 399

 -  

 446

845

Interest paid

 (1 129)

 (475)

 -  

 (1 604) 

Depreciation and amortisation

 (3 507)

 (973)

 (167)

(4 647)  

 

 

Segment report for the year ended 30 June 2023

 

 

Figures in pound sterling ('000)

Chrome and PGM

Copper

Other

Total

Total assets

140 451

100 659

59 027

300 137

Total liabilities

55 925

33 249

6 306

95 480

Revenue

125 052

16 877

-

141 929

Gross profit

26 497

4 894

-

31 391

Depreciation and amortisation

(6 826)

(1 734)

(392)

(8 952)

Operating expenses

(871)

(3 213)

(2 838)

(6 922)

Operating profit

18 800

(53)

(3 230)

15 517

Investment revenue

760

-

855

1 615

Fair value

-

-

313

313

Net finance costs

(4 287)

(878)

-

(5 165)

Profit/(loss) before taxation

15 273

(931)

(2 062)

12 280

Taxation

(315)

1 134

(131)

688

Profit/(loss) after taxation

14 958

203

(2 193)

12 968

  

 

5.            Other financial assets

 


Unaudited

Unaudited

 Audited

Figures in pound sterling ('000)

H1 FY2024

H1 FY2023

FY2023

At fair value through profit or loss - designated




Kendrick Resources Limited

26

60

26

Loans and receivables




Horizon Corporation Limited - Star Tanganika

4 496

4 451

4 390

Horizon Mining Limited - Kitwe Project

9 470

9 259

9 129

Mash Rock Mining Proprietary Limited

-

478

-

Amava Minerals

346

491

338

Kgato Investments Proprietary Limited

575

646

563

Other

20

-

30

Total other financial assets

14 933

15 386

14 476

Comprising:




Current assets




Loans receivable

346

491

338

Non-current assets




Loans receivable

595

14 775

593

At fair value through profit or loss

13 992

60

13 545


14 587

14 835

14 138

Total other financial assets

14 933

15 386

14 476

 

 

6.            Share capital and warrants

 

The share capital of the Company is divided into an unlimited number of ordinary shares of £0.01 each.

 

Figures in pound sterling ('000)

 Unaudited

 Unaudited

 Audited


H1 FY2024

H1 FY2023

FY2023

Ordinary shares of £0.01 each

27 381

26 949

27 381

Share premium

133 739

130 629

133 739

Total issued capital

161 120

157 578

161 120

 

During the period under review, the Company did not issue any new Jubilee ordinary shares.  Post the period under review, the Company issued the following new Jubilee shares pursuant to an equity placing. Refer to note 9.1 for more details.

 


Number of shares ('000)

Issue price

(pence)

Purpose

Shares in issue at 31 December 2023

2 738 130


 

Issued on 4 January 2024

236 364

5.5

Equity placing

Shares in issue at the last practicable date

2 974 494



 

 

7.            Warrants

 

At the period-end and at the date of this report, the Company had the following warrants outstanding:

 

Issue date

 

Number of 

warrants

Issue

price

(pence)

 

Expiry

 date

Share price    at issue date

(pence)

19 Nov 2019

7 818 750

4.00

19 Nov 2024

4.13

22 Jun 2020

750 000

3.40

22 Jun 2025

3.90

21 Jan 2021

4 036 431

13.00

21 Jan 2026

13.20

7 Dec 2023

22 279 492

7.14

7 Dec 2025

5.20

Total

34 884 673




 

 

 

 

 

 

 

 

 

 

 

8.            Going concern

 

The financial position of the Group is set out in these condensed unaudited interim results for the six months ended 31 December 2023. The Group adopted the going concern basis of accounting in the preparation of these interim results.

 

The Directors have considered the Group's liquidity position at the period end as well as at the date of the publication of these results. The Group has sufficient liquidity, working capital and cash resources to meet its obligations and to continue in operational existence for at least twelve months from the date of approval of these results.

 

9.            Events after the reporting date

 

9.1          Equity placing

 

On 4 January 2024, the Company issued 236 363 636 new Jubilee shares pursuant to an equity placing concluded to raise £13 million before expenses.

 

The proceeds are specifically targeting the Group's Zambian Copper operations to:

§ Pay the initial payment of US$1.75 million, due under the agreement for the acquisition of the copper waste rock dump announced on 12 December 2023 detailed above and progress resource and process design (US$4.5 million)

§ Expand the sulphide recovery circuits at Sable to accommodate increased sulphide concentrate production from newly acquired projects (US$5.7 million)

§ Progress the project development phase of the Mufulira slag project, with early-stage bulk trial and processing (US$2.5 million) and

§ For general working capital purposes.

 

10.          Unaudited results

 

These interim results have not been reviewed or audited by the Group auditors.

 

11.          Interim report

 

From the date of this report, copies of the interim report are available for download from the Company's website  www.jubileemetalsgroup.com

 

United Kingdom

26 February 2024

Annexure 1

 

Headline earnings per share is calculated using the weighted average number of shares in issue during the period under review and is based on earnings attributable to ordinary shareholders, after excluding those items as required by Circular 1/2021 issued by SAICA. In compliance with paragraph 18.19 (c) of the JSE Listings Requirements, the table below represents the Group's headline earnings and a reconciliation of the Group's profit reported and headline earnings used in the calculation of headline earnings per share.

 

Reconciliation of headline earnings per share

 Unaudited

 Unaudited

 Audited

Figures in pound sterling ('000)

H1 FY2024

H1 FY2023

FY2023 

Profit attributable to ordinary equity holders of the Parent

4 384

3 928

12 914

Adjusted for:




Fair value adjustments

(2 874)

(362)

(313)

Headline earnings from continuing operations

1 509

3 567

12 601

Weighted average number of shares in issue ('000)

2 738 130

2 664 488

2 738 130

Diluted weighted average number of shares in issue ('000)

2 733 244

2 716 128

2 733 244

Headline earnings per share (pence)

0.06

0.13

0.46

Headline earnings per share (ZAR cents)

1.40

2.72

9.84

Diluted headline earnings per share (pence)

0.06

0.13

0.46

Diluted headline earnings per share (ZAR cents)

1.40

2.67

9.86

Average conversion rate used for the period under review ZAR/GBP

23.27

20.55

21.28

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
IR TFMFTMTJTMAI

1 Year Jubilee Metals Chart

1 Year Jubilee Metals Chart

1 Month Jubilee Metals Chart

1 Month Jubilee Metals Chart

Your Recent History

Delayed Upgrade Clock