TIDMJLP

RNS Number : 2975U

Jubilee Metals Group PLC

02 December 2021

Jubilee Metals Group Plc

Registration number (4459850)

Altx share code: JBL

AIM share code: JLP

ISIN: GB0031852162

2 December 2021

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMED. ON PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

Jubilee Metals Group Plc

("Jubilee" or the "Company" or the "Group")

Audited results for the year ended 30 June 2021

Notice of Annual General Meeting and availability of Annual Financial Statements

Jubilee, the AIM and Altx traded metals processing company is pleased to announce its audited results for the year ended 30 June 2021.

Financial Highlights

o Total revenue for the year increased by a strong 143% to GBP 133 million (ZAR 2.8 billion)(1) (2020: GBP 54.8 million (ZAR 1.1 billion))

o Attributable operational earnings(2) growth of 183% to GBP 71 million (ZAR 1.5 billion) (2020: GBP 25 million (ZAR 494.5 million)) and a return on equity of 35.4%, compared with 21.2% in the previous year

o Adjusted(3) profit before tax up 324% to GBP 52 million (ZAR 1.1 billion) (2020: GBP 12.3 million (ZAR: 242 million))

o Profit after tax adjusted for non-cash expenses including impairments, gain on bargain purchase and share based payments up 194% to GBP 49 million (ZAR 1 billion) (2020: GBP 17 million (ZAR: 331 million))

o Adjusted earnings per share up 163% to 2.25 pence (ZAR 46.66 cents) (2020: 0.86 pence (ZAR 16.9 cents))

o Revenue and earnings growth was achieved during a period of substantial infrastructure investment, integration and planned operational downtime and has provided a tremendous platform for further future growth

o Jubilee delivered strong cash flows from operating activities of GBP 23.8 million (ZAR 108 million) (2020: positive cash flow of GBP 19.4 million (ZAR 415.4 million))

o During the year under review, a total of GBP 19.8 million (ZAR 391.9 million) was invested in acquisitions and purchases of property, plant and equipment compared with the previous year's total investment of GBP 26.1 million (ZAR 558 million) while a further GBP 1.8 million (ZAR 35.5 million) (2020: GBP 4.2 million (ZAR 89 million)) of external debt obligations were repaid

o Earnings per share up 93%, to 1.81 pence (ZAR 37.50 cents) (2020: 0.94 pence (ZAR 18.47 cents))

o The Group boosted its operating profit by a strong 189%, to GBP 45.9 million (ZAR 949 million) (2020: profit of GBP 15.9 million (ZAR 313.2 million)), with an operating margin of 35% (2020: 29%)

o The Group's balance sheet strengthened substantially, with total assets increasing by 49 %, to GBP 195 million (ZAR 3.9 billion) (2020: GBP 130.6 million (ZAR 2.8 billion))

o Total equity increased to GBP 136.5 million (ZAR 2.7 billion), from GBP 94.2 million (ZAR 2 billion) the year earlier, maintaining a strong equity ratio of 70% (2020: 72%)

o The Group's gearing remains low, with the net cash position and current assets(4) covering 147% (2020: 92.7%) of total liabilities

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

2. Attributable operational earnings represent Jubilee's net share of

operational earnings after distributions to JV     partners and before development costs 

3. Adjusted for non-cash expenses including impairments, gain on bargain purchase and share based payments

4. Current assets include inventory, trade and other receivables and

cash and cash   equivalents 

Operational Highlights

o Achieved stated target of 50 162 PGM(5) ounces for FY2021 (up 23% compared with 40 743 ounces for FY2020); this was achieved during a period which included the construction and commissioning of two new chrome beneficiation facilities and the commencement of the construction of the expanded and refocused Inyoni PGM operation

o Chrome Operations delivered 751 223 tonnes of chrome concentrate (2020: 377 883 tonnes), generating chrome revenue of GBP 34.5 million (ZAR 714 million) (2020: GBP 17.2 million (ZAR 339.1 million)) on the back of increased operational capacities; this is set to increase further with the commencement of commissioning of the new Chrome Beneficiation circuit completed during Q2 CY2021

o Secured the rights to a further approximately 150 million tonnes of copper containing surface tailings, targeted to be upgraded at site before refining at Jubilee's targeted Northern Refinery in Zambia. This will be done through a joint operation with the mining rights' holder. Project Elephant alone holds the potential to produce copper concentrates in excess of the total Sable Refinery capacity of 14 000 tonnes per annum of copper cathode

o Copper production reached 2 026 tonnes since commissioning as part of enabling operational readiness to accept first copper concentrate production from Project Roan. Project Roan's integrated copper concentrator is on track for commissioning by January 2022

o Sable Refinery achieved positive earnings as part of its operational readiness activities with attributable operating earnings of GBP 3.7 million for FY2021 compared with GBP 1.2 million for FY2020

5. 6 Element Platinum Group Metals (platinum, palladium, rhodium, ruthenium, iridium + gold)

Operational Highlights Post the Period Under Review

o On 24 August 2021, Jubilee executed a binding Memorandum of Understanding with Mopani Copper Mines Plc, a subsidiary of ZCCM Investment Holdings Plc in Zambia, ("Mopani", "ZCCM" and collectively the "Parties") for the implementation of additional copper and cobalt refining capacity as part of the implementation of Jubilee's Northern Copper and Cobalt Refining Strategy (the "Agreement")

o The Northern Refining Strategy targets to establish an initial 17 000 tonnes of copper refining capacity in addition to the Sable Refinery's 14 000 tonnes per annum. In addition, a cobalt refining capacity is being targeted as part of the Northern Refining Strategy

o The Northern Refining Strategy targets the processing of the Kitwe and Luanshya copper and cobalt tailings project to fast track the implementation of the Project which has access to more than 275 million tonnes of tailings

o The Northern Refining Strategy offers the opportunity for accelerated investment into the region

o Jubilee is committed to prioritising local employment for the accelerated Project implementation

o Project Roan successfully navigated the challenges posed by Covid-19 restrictions and is set to commence commissioning targeting to reach commercial production by Q1 CY2022

o The expansion project of Inyoni PGM operations including an extended recovery circuit to target a variety of feed materials, was completed during October 2021

o On 15 September 2021, Jubilee successfully concluded the buy-out of the JV partner in Project Roan while also increasing its JV position at Project Elephant.

Key financial and operational indicators

 
                                               12 months  12 months 
                                        Unit          to         to 
                                                 30 June    30 June 
                                                    2021       2020 
====================================  =======  =========  ========= 
Group 
Revenue                               GBP'000    132 845     54 775 
Attributable earnings (1)             GBP'000     71 112     25 088 
Attributable earnings margin             %            54         46 
EBITDA                                GBP'000     50 335     22 210 
Adjusted EBITDA (2)                   GBP'000     52 153     22 643 
Adjusted EBITDA margin                   %            39         41 
====================================  =======  =========  ========= 
 
  PGM 
PGM revenue                           GBP'000     88 754     34 590 
PGM revenue                            $'000     112 779     43 594 
Attributable PGM earnings             GBP'000     62 847     21 486 
Attributable PGM earnings              $'000      84 632     27 079 
Attributable PGM earnings margin         %            75         62 
Attributable PGM ounces produced        oz        50 162     40 743 
PGM revenue per ounce                  $/oz        2 248      1 070 
PGM attributable earnings per ounce    $/oz        1 687        665 
Adjusted PGM production unit cost 
 (3)                                   $/oz          537        541 
====================================  =======  =========  ========= 
 
  Chrome 
Chrome revenue                        GBP'000     34 506     17 158 
Chrome revenue (4)                     $'000      47 004     21 624 
Attributable chrome earnings          GBP'000      3 082        803 
Attributable chrome earnings           $'000       4 150      1 013 
Attributable chrome earnings margin      %             9          5 
Attributable chrome tonnes produced   tonnes     751 223    377 883 
Chrome revenue per tonne                $/t           63         57 
Chrome attributable earnings per 
 tonne                                  $/t            6          3 
====================================  =======  =========  ========= 
 

1. Attributable earnings refer to earnings allocated to the group based on the group's contractual rights in each project and excludes Group overheads and non-cash expenses including impairments, gain on bargain purchase, share based payments and foreign exchange differences.

2. Adjusted EBITDA refers to EBITDA adjusted for non-cash expenses including impairments, gain on bargain purchase, share based payments and foreign exchange differences on transactions.

3. The adjusted PGM production unit cost includes all direct and indirect costs attributable to the project including allocated corporate charges. The costs for the period under review includes all the operating costs for the Windsor PGM JV allocated to the Jubilee attributable PGM ounces.

4. The chrome revenue is recognised on an ex-works basis after costs of export logistics including freight, shipping and marketing.

Chief Executive Officer's Review

The Jubilee team delivered an exceptional performance during this financial year, achieving growth in all of our core business units; PGMs and Chrome and also generating maiden earnings from our new Zambian Copper portfolio. During this period, Jubilee in addition executed a number of targeted transactions and investments valuing GBP 20 million, to not only underpin our growth but which also offer the opportunity for further growth. A brief summary of the transactions and investments included:

Chrome and PGM

o On 13 August 2020, Jubilee entered into a third party Run-Of-Mine ("ROM") chrome ore offtake agreement that fully commits its 70 000 tonnes per month Windsor chrome beneficiation plant for the next three years, with an option for this to be extended further;

o On 24 August 2020, Jubilee executed a processing agreement whereby it was appointed as operator to design, operate and capitalise the expansion of a ROM chrome beneficiation plant to reach 80 000 tonnes per month for a minimum period of 3 years;

o During February 2021, Jubilee commenced with the capitalisation and expansion of the 50 000 tonnes per month Inyoni PGM plant to a 75 000 tonnes per month processing facility. This formed part of the refocusing of the Inyoni Operation to a third-party processing facility for a variety of clients;

o On 3 June 2021, Jubilee has entered into a further long-term, 10+ years of mine life, PGM feed supply agreement, with a chrome mining customer, offering Jubilee the opportunity to expand its PGM Operations into the Eastern Limb of the PGM-rich Bushveld Complex. In addition, Jubilee has acquired the rights to the processing of 255 000 tonnes of PGM containing chrome tailings in the Eastern Limb, further increasing Jubilee's existing surface PGM tailings;

o On 4 June 2021, Jubilee announced that it had in addition secured the right to process a further 944 000 tonnes of PGM containing tailings in the Eastern Limb of the PGM-rich Bushveld Complex

Copper and Cobalt

o On 6 August 2020, Jubilee established Project Roan by signing a joint venture agreement with a private Zambian company, to secure the rights to process 2 million tonnes of copper ROM material containing in excess of 2% copper, with the potential to increase the ROM material to 4 million tonnes in addition to a further approximate 6 million tonnes of copper tailings. The construction of the new copper concentrator is underway targeting to commence commissioning activities by January 2022;

o On 5 November 2020, Jubilee established Project Elephant by concluding a further JV copper tailings transaction to secure the rights to an additional approximately 115 million tonnes of copper and cobalt containing surface tailings in Zambia. This transaction combined with the 150 million tonnes secured at Luanshya established the Northern Copper and Cobalt Refinery strategy;

o Jubilee completed the capitalisation of the ROM ore processing circuit to enhance the Sable Refinery's processing capabilities.

Post the period under review

o On 24 August 2021, Jubilee executed a binding Memorandum of Understanding with Mopani Copper Mines Plc as part of its Northern Copper and Cobalt Refining Strategy;

o On 15 September 2021, Jubilee successfully concluded the buy-out of the JV partner in Project Roan while also increasing its JV position at Project Elephant.

While all of this work understandably has put significant pressure on day-to-day operations, I am thrilled to still be reporting further production and earnings progress. Crucially, the investment, time and effort spent in building and integrating these facilities has set a platform for tremendous potential growth opportunities. The significant upgrade undertaken at the Inyoni PGM Operations which was completed post the period under review in October 2021, has enabled Inyoni to pursue a variety of PGM feed materials ensuring a long-term sustainable operation. The disruption to production caused by this significant upgrade during the current H2 CY2021 period is expected to be recovered during H1 CY2022.

We have seen further growth in South Africa during the period under review, with a number of new, long term PGM supply agreements, each of significant strategic value given their locations on the Eastern Limb of the mineral-rich Bushveld Complex. As well as demonstrating our ability to win and form partnerships with key chrome mining clients, these new supply agreements provide us with the opportunity to replicate the success of our Inyoni Operation in the Western Limb region, which is of significant value to us in supplying a continued and sustained chrome and PGM feed.

With the support of our long-term stakeholders, along with some very welcome blue-chip institutional investors to the share register during the period, our maturing Company continues on a very exciting growth trajectory, both operationally and financially, as our strategy continues to be implemented.

Operationally, the Company has achieved its stated target of 50 000 PGM ounces for FY 2021 at 50 162 ounces (an increase of 23% compared with 40 743 ounces for FY2020). This target was achieved during a period which included the construction and commissioning of two new chrome beneficiation facilities and the commencement of the construction of the expanded Inyoni PGM operation which is expected to be completed during Q4 of CY2021. The expansion and upgrade of the Inyoni operations is in-line with the re-focusing of the Inyoni operations from previously only processing historical tails stockpiled and generated by Hernic Ferrochrome Proprietary Limited, prior to it being placed in Business Rescue and the assets ultimately being sold to Samancor, to focusing Inyoni on the processing of feed material supplied by a variety of clients secured under medium- and long-term feed supply agreements. During the period under review, the Company also expanded its operational footprint in the Eastern Limb of the Bushveld Complex in South Africa - a strategic development which demonstrates Jubilee's ability to continue to grow its business by re-investing its earnings into high growth projects.

Chrome operations achieved 751 223 chrome concentrate tonnes for FY2021 (377 883 tonnes during FY2020) on the back of increased operational capacities. This is set to increase further with the commissioning of the new Chrome Beneficiation circuit, which was completed at the end of Q2 CY2021.

In Zambia, early earnings from copper production were achieved. Copper production increased to 1 387 tonnes of copper for FY2021 as part of the process of securing operational readiness to accept first copper concentrate production from Project Roan. Project Roan's integrated copper concentrator is set for commissioning and targeting to commence commercial operations during Q1 CY2022, which will result in the first significant increase in copper production by the Sable Refinery targeting 10 000 tonnes of copper units annually. The fully operational Sable Refinery achieved positive earnings as part of its operational readiness activities with attributable operational earnings of GBP 3.7 million for FY2021 compared to GBP 1.2 million for FY2020.

Achieving first delivery, on time, of partially upgraded copper concentrate from Project Roan to the fully operational Sable Refinery was the first major step in Jubilee's commitment to achieving its targeted production of 25 000 tonnes per annum of copper within the next four years. The commissioning of the integrated copper concentrator is on track and scheduled to reach commercial production in Q1 CY2022, while Jubilee's second copper project, located in the Luanshya area, has completed the development programme and is concluding the detail design phase to commence the implementation programme in the next few months.

On 24 August 2021, Jubilee executed a binding Memorandum of Understanding with Mopani Copper Mines Plc, a subsidiary of ZCCM Investment Holdings Plc in Zambia, ("Mopani", "ZCCM" and "Parties") for the implementation of additional copper and cobalt refining capacity through the re-capitalisation of existing refining capacity placed under care and maintenance by Mopani (the "Agreement"). The Agreement forms a key part of Jubilee's Northern Refining strategy which offers the potential to establish an accelerated refining presence at both its Sable Refinery in the South as well as at Kitwe in the North to better serve all of its secured copper and cobalt tailings projects - offering the potential of a combined refining capacity of 31 000 tonnes of copper units per annum. Jubilee is now able to accelerate the implementation of its Zambian copper strategy at significantly reduced capital and project risk.

Chairman's Statement

As we have done over recent years, our company has experienced another year of significant progress across all aspects of the business. Jubilee has delivered a strong financial performance with growth in all aspects of the business, both in South Africa and in Zambia, during a phase of new build, extension to existing facilities and feed and new project acquisitions.

As a rapidly developing company, the Board has exercised considerable attention to ESG matters to ensure that there is no disconnect between operational and financial performance, against our environmental, social and governance obligations. ESG has always been at the heart of what Jubilee does and is captured in The Jubilee Way of doing business. I am pleased to say that the word "obligations", whilst being a modern requirement, has always been at the forefront of the Board's mind and as such further formalisation of our protocols has not been unduly onerous. We continue to progress formalisation to ensure that all aspects of our business remain synchronised, with a common mission of responsible, efficient and strongly commercial growth.

The effects and uncertainty of the COVID-19 pandemic remains to be felt by the world. Jubilee continues to navigate these effects with our operations being able to, in the most part, avoid any direct impact. While our construction projects in Zambia were impacted for a time by the disruptions in supply chains and freight logistics, I am pleased that, despite these impacts, we will shortly commence with the commissioning of our new copper concentrator at Project Roan in Zambia with delivery of copper concentrates to our Sable Refinery on track for Q1 CY2022 next year. At the outset of the pandemic, we put in stringent testing and reporting measures to protect our staff. I do thank everyone involved in the Company for the responsible approach to this pandemic, which we remain incredibly vigilant of.

The year under review was about successfully extending and consolidating our chrome and PGM operations in South Africa as we aimed to serve a wider client base to de-risk the business from any one source, especially following the financial collapse of Hernic Ferrochrome, while also establishing and expanding our copper presence in Zambia. We successfully completed a major upgrade programme at Inyoni which has significantly enhanced our processing capabilities with us now able to process a wide variety of third-party materials leaving us in a unique position to further capitalise on the materials in the market.

In terms of our Zambian operations, we announced during the year the acquisition of several tailings projects in Luanshya and Kitwe, which amounted to gaining the rights to some 300 million tonnes of tailings of varying grades of copper, and in some cases cobalt. The period saw the ramping up of production at the Sable Refinery as they prepare for the commissioning of Project Roan which targets an annual 10 000 tonnes of copper, which may increase to 14 000 tonnes per annum.

Post the period under review, we announced a binding MOU for the Mopani Refining Facility and peripheral hardware which will significantly accelerate our production plans for the Luanshya and Kitwe tailings as part of our Northern Copper and Cobalt refining strategy. The acquisition of these redundant facilities and refurbishing, together with localised tailings dams, will greatly reduce our capital requirements and bring forward processing availability timing by at least 2 years. In general, our achievements in the Zambian copper arena are advancing to plan and we fully expect to attain our target of 25 000 tonnes of annualised copper production to be achieved. The copper potential of Zambia remains and as such we maintain an aggressive programme to advance our position and annual production in country.

At the beginning of May 2021, we announced our option with Caerus Mineral Resources Plc to research and test dumps in Cyprus left by many mining operations over many years. The dumps are likely to be copper and gold containing, and a number of cases could be quite sizable. We are currently carrying out test work on a number of samples derived from various sites, with a view to assessing likely processing results. The dumps are thought to be high grade, both in copper and gold. This option represents our first venture out of Africa and commences the role out of our brand, which we call The Jubilee Way, since the way of doing business in the tailings space is unique to our company.

In terms of PGM and chrome production, we increased our financial performance throughout the period despite a planned significant upgrading of our Inyoni Operations, which was disruptive to the current operation and completed post the period under review in October 2021. The new expanded Inyoni Operations are now able to process a variety of feed sources which was previously limited to the treatment of historical material provided by the then Hernic.

Towards year end we announced a substantial acquisition for the rights to 944 000 tonnes of PGM containing tailings in the Eastern Limb, which marks our entry into gaining position in the Eastern Limb of the South African Bushveld Complex. The move to PGM supply agreements in the Eastern Limb was a key strategic decision too, giving access to this area offering a platform to pursue further growth opportunities.

During the year we have seen with the pandemic biting into everyone's lives in various ways, showing no respite and reproducing itself in new forms and the uncertainty of pandemic management still exists. Against this uncertain environment stock markets have advanced to all-time highs and commodity prices have seen unprecedented growth. Any and all metals which will be required for future clean energy generation or storage have seen significant price increases. The outlook for copper in particular remains buoyant, with many predictions that the year CY2030 will see a doubling in demand for copper. I for one, see the supply side being severely challenged, with Chile as a major contributor to the copper supply, being challenged technically and socially. The large copper systems that are now in favour are few and far between and have a gestation period of some twelve years. The lack of big projects being developed will, to me, facilitate smaller copper production from both surface and underground mines. The reason being simply that the period to bring into production is much less. The inability of supply to keep up the demand should keep the price of copper above US$ 8 500 per tonne. We do, however, anticipate that prices may exceed US$ 11 000 per tonne during CY2023 and beyond. The possession of copper secondaries, mined and on surface, gives Jubilee a very good position in tomorrow's copper production and promises superior returns to its shareholders.

Likewise, in the PGM space, we see the emergence of the fuel cell, particularly in China, which will underpin the PGM price and increase the price as demand for fuel cell energy increases over the coming years. Your company is well positioned in the new energy space and has a style of doing business which is both unique and transferable, The Jubilee Way.

We look forward to continuing to deliver to our shareholders with our further growth and development in the exciting space of waste retreatment. We most definitely have a first mover advantage.

Finally, I would like to thank everyone in our team for the tireless efforts in producing splendid results in challenging times. Upwards and onwards, and long may it continue.

Colin Bird

Non-executive Chairman

2 December 2021

Group statements of financial position at 30 June 2021

 
 
Figures in Sterling                                   2021        2020 
=========================================  ===  ==========  ========== 
 
  Assets 
Non-current assets 
Property, plant, and equipment                  33 011 518  20 076 448 
Intangible assets                               58 831 075  72 901 175 
Investments in subsidiaries                              -           - 
Investments in associates                          426 505     450 598 
Loans to Group companies                                 -           - 
Other financial assets                           7 234 002   3 406 644 
Deferred tax                                     9 463 653   3 223 254 
                                                ----------  ---------- 
                                                   108 966     100 058 
                                                       753         119 
                                                ----------  ---------- 
Current assets 
Other financial assets                             544 195           - 
Inventories                                     17 765 937   2 140 239 
Current tax assets                                 466 176           - 
Trade and other receivables                     38 126 369  13 083 307 
Contract assets                                  9 154 250   5 408 622 
Cash and cash equivalents                       19 643 047   9 947 822 
                                                ----------  ---------- 
                                                85 699 974  30 579 990 
                                                ----------  ---------- 
                                                   194 666     130 638 
Total assets                                           727         109 
                                                ----------  ---------- 
 
  Equity and liabilities 
Equity attributable to equity holders of 
 parent 
Share capital and share                            120 013     114 585 
 premium                                               187         392 
Reserves                                         6 612 905  10 317 560 
                                                               (33 201 
Accumulated profit/(loss)                        6 753 964        211) 
                                                ----------  ---------- 
                                                   133 380 
                                                       056  91 701 741 
Non-controlling interest                         3 162 527   2 479 277 
                                                ----------  ---------- 
                                                   136 542 
                                                       583  94 181 018 
                                                ----------  ---------- 
Liabilities 
Non-current liabilities 
Other financial liabilities                      2 803 434  10 428 719 
Lease liabilities                                  164 088           - 
Deferred tax liability                          14 997 333  10 944 698 
Provisions                                         720 759     694 358 
                                                ----------  ---------- 
                                                18 685 614  22 067 775 
                                                ----------  ---------- 
Current liabilities 
Other financial liabilities                      5 337 310   1 460 968 
Trade and other payables                        29 338 988  12 422 880 
Contract liabilities                                     -     505 468 
Revolving credit facility                        3 839 225           - 
Current tax liabilities                            923 007           - 
                                                ----------  ---------- 
                                                39 438 530  14 389 316 
                                                ----------  ---------- 
Total liabilities                               58 124 144  36 457 091 
                                                ----------  ---------- 
                                                   194 666     130 638 
Total equity and liabilities                           727         109 
                                                ----------  ---------- 
 
 

The financial statements were authorised for issue and approved by the Board on 2 December 2021 and signed on its behalf by:

Leon Coetzer

Chief Executive Officer

Company number: 04459850

Group statements of comprehensive income for the year ended 30 June 2021

 
Figures in Sterling                               2021            2020 
                                               132 845 
Revenue                                            252      54 774 818 
                                               (61 733 
Cost of sales                                     675)    (29 687 220) 
=======================================  =============  ============== 
Gross profit                                71 111 577      25 087 598 
Other income                                         -       1 470 631 
                                               (25 728 
Operating expenses                                382)    (10 670 041) 
=======================================  =============  ============== 
Operating profit                            45 383 195      15 888 188 
Investment revenue                             500 173         125 264 
Fair value adjustments                     (1 161 418)     (5 021 585) 
Gain on bargain purchase through 
 business combinations                               -       6 606 755 
Finance costs                              (1 673 787)     (2 420 875) 
Share of loss from associates                 (24 093)     (1 444 879) 
=======================================  =============  ============== 
Profit before taxation (1)                  43 024 070      13 732 868 
Taxation                                   (2 792 867)       4 495 716 
=======================================  =============  ============== 
Profit for the year                         40 231 203      18 228 584 
=======================================  =============  ============== 
Earnings for the year 
Attributable to: 
Owners of the parent                        39 599 917      18 320 392 
Non-controlling interest                     (631 287)        (91 808) 
=======================================  =============  ============== 
                                            40 231 203      18 228 584 
=======================================  =============  ============== 
Earnings per share (pence)                        1.81            0.94 
Diluted earnings per share 
 (pence)                                          1.78            0.93 
Reconciliation of other comprehensive 
 income: 
Profit for the year                         40 231 203      18 228 584 
Other comprehensive income: 
Exchange differences on translation 
 foreign operations                        (3 863 624)    (12 388 588) 
=======================================  =============  ============== 
Total comprehensive profit                  36 367 579       5 839 996 
=======================================  =============  ============== 
Total comprehensive profit 
 attributable to: 
Owners of the parent                        35 707 874       6 317 824 
Non-controlling interest                       659 705       (477 828) 
=======================================  =============  ============== 
                                            36 367 579       5 839 996 
=======================================  =============  ============== 
 

Group statements of changes in equity for the year ended 30 June 2021

 
                                                                                                                             Total 
                                                                                                                      attributable 
                         Share        Foreign                     Share-   Convertible                                   to equity 
                       capital       currency                      based         notes                                     holders          Non- 
 Figures in          and share    Translation        Merger      payment       reserve        Total     Accumulated  of the Group/   controlling 
 Sterling              premium        reserve       reserve      reserve                   reserves            loss        Company      interest   Total equity 
=================  ===========  =============  ============  ===========  ============  ===========  ==============  =============  ============  ============= 
Group 
 
Balance at 30          105 820                                                               22 319 
 June 2019                 411    (3 587 451)    23 184 000    2 519 435       203 040          024    (51 842 700)     76 296 733     2 393 082     78 689 814 
Changes in equity 
Profit for the 
 year                        -              -             -            -             -            -      18 320 392     18 320 392     (477 828)     17 842 564 
Other 
 comprehensive                        (12 002                                               (12 002                        (12 002                      (12 002 
 income                      -           568)             -            -             -         568)               -           568)             -           568) 
                   -----------  -------------  ------------  -----------  ------------  -----------  --------------  -------------  ------------  ------------- 
Total 
 comprehensive 
 income                               (12 002                                               (12 002 
 for the year                -           568)             -            -             -         568)      18 320 392      6 317 824     (477 828)      5 839 996 
                   -----------  -------------  ------------  -----------  ------------  -----------  --------------  -------------  ------------  ------------- 
Issue of share 
 capital 
 net of costs        8 764 981              -             -            -             -            -               -      8 764 981             -      8 764 981 
Share warrants 
 issued                      -              -             -      205 903             -      205 903               -        205 903             -        205 903 
hare options 
 exercised/lapsed            -              -             -    (324 597)             -    (324 597)         321 097        (3 500)             -        (3 500) 
Share options 
 issued                      -              -             -      119 800             -      119 800               -        119 800             -        119 800 
Business 
 combinations                -              -             -            -             -            -               -              -       564 024        564 024 
                   -----------  -------------  ------------  -----------  ------------  -----------  --------------  -------------  ------------  ------------- 
                                      (12 002                                               (12 001 
Total changes        8 764 981           568)             -        1 106             -         462)      18 641 489     15 405 008        86 196     15 491 204 
                   -----------  -------------  ------------  -----------  ------------  -----------  --------------  -------------  ------------  ------------- 
Balance at 30          114 585        (15 590                                                10 317 
 June 2020                 392           019)    23 184 000    2 520 541       203 040          562    (33 201 211)     91 701 741     2 479 278     94 181 020 
Changes in equity 
Profit for the 
 year                        -              -             -            -             -            -      39 599 917     39 599 917       659 705     40 259 622 
Other 
 comprehensive                                                                               (3 892 
 income                      -    (3 892 044)             -            -             -         044)               -    (3 892 044)                  (3 892 044) 
                   -----------  -------------  ------------  -----------  ------------  -----------  --------------  -------------  ------------  ------------- 
Total 
 comprehensive 
 income                                                                                      (3 892 
 for the year                -    (3 892 044)             -            -             -         044)      39 599 917     35 707 873       659 705     36 367 578 
                   -----------  -------------  ------------  -----------  ------------  -----------  --------------  -------------  ------------  ------------- 
Issue of share 
 capital 
 net of costs        5 427 796              -             -            -             -            -               -      5 427 796             -      5 427 796 
Share warrants 
 exercised                   -              -             -    (232 812)             -    (232 812)         232 812              -             -              - 
Share warrants 
 issued                      -              -             -      161 974             -      161 974               -        161 974             -        161 974 
Share options 
 exercised/lapsed            -              -             -    (156 821)             -    (156 821)         145 990       (10 830)             -       (10 830) 
Share options 
 issued                      -              -             -      415 046             -      415 046               -        415 046             -        415 046 
Changes in 
 ownership no 
 control lost                -              -             -            -             -            -        (23 544)       (23 544)        23 544              - 
                   -----------  -------------  ------------  -----------  ------------  -----------  --------------  -------------  ------------  ------------- 
                                                                                             (3 704 
Total changes        5 427 796    (3 892 044)             -      187 387             -         657)      39 955 175     41 678 315       683 249     42 361 563 
                   -----------  -------------  ------------  -----------  ------------  -----------  --------------  -------------  ------------  ------------- 
Balance at 30          120 013        (19 482                                                                              133 380                      136 542 
 June 2021                 187           063)    23 184 000    2 707 928       203 040    6 612 905       6 753 964            056     3 162 527            583 
                                                                          ------------ 
 
 

Group statements of cash flow for the year ended 30 June 2021

 
Figures in Sterling                                    2021           2020 
Cash flows from operating activities 
Cash generated from operations                   33 002 604     21 734 031 
Interest income                                     500 173        125 264 
Finance costs                                   (1 673 787)    (2 420 875) 
Taxation paid                                   (8 034 521)              - 
============================================  =============  ============= 
Net cash from operating activities               23 794 469     19 438 420 
============================================  =============  ============= 
Cash flows from investing activities 
Purchase of property, plant, and                    (17 865 
 equipment                                             679)    (1 389 730) 
Sale of property, plant, and equipment              (8 427)        246 783 
                                                                   (16 713 
Purchase of intangible assets                   (1 942 019)           185) 
Business combinations                                     -    (7 732 100) 
                                                    (19 816        (25 588 
Net cash from investing activities                     125)           232) 
============================================  =============  ============= 
Cash flows from financing activities 
Net proceeds on share issues                      1 144 436      5 696 278 
Proceeds from revolving credit 
 facilities                                       3 839 225              - 
Proceeds from trade financing arrangements        2 525 914              - 
Increase in loans to joint ventures             (4 371 552)      (276 235) 
Decrease in other financial liabilities         (1 795 310)    (4 168 297) 
Lease payments                                    (219 847)              - 
============================================  =============  ============= 
Net cash from financing activities                1 122 866      1 251 746 
============================================  =============  ============= 
Total cash movement for the year                  5 101 210    (4 898 066) 
Total cash at the beginning of 
 the year                                         9 947 822     18 865 288 
Effect of exchange rate movement 
 on cash balances                                 4 594 015    (4 019 400) 
============================================  =============  ============= 
Total cash at end of the year                    19 643 047      9 947 822 
============================================  =============  ============= 
 

Notes to the Group financial statements for the year ended 30 June 2021

   1.       Statement of accounting policies 

Jubilee Metals Group PLC is a public company listed on AIM of the LSE and Altx of the JSE, incorporated and existing under the laws of England and Wales, having its registered office at 1st Floor, 7/8 Kendrick Mews, London, SW7 3HG, United Kingdom.

The Group and Company results for the year ended 30 June 2021 have been prepared using the accounting policies applied by the Company in its 30 June 2021 annual report, which are in accordance with International Financial Reporting Standards ("IFRS") and IFRC interpretations, as issued by the International Accounting Standards Board ("IASB") and 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).

The financial statements are presented in Pound Sterling. For income statement purposes conversions are at average exchange rates and for balance sheet purposes at the closing rate as at the period end. All other conversions are at rates as at the time announced.

   2.         Earnings per share 

Figures in Sterling 2021 2020

 
Earnings attributable to ordinary equity holders 
 of the parent (GBP)                                   39 599 917  18 320 392 
=====================================================  ==========  ========== 
Weighted average number of shares for basic earnings    2 185 345   1 955 965 
 per share                                                    903         289 
Effect of dilutive potential ordinary shares 
- Share options and warrants                           40 742 711  19 299 151 
=====================================================  ==========  ========== 
Diluted weighted average number of shares for           2 226 088   1 975 264 
 diluted earnings per share                                   614         440 
=====================================================  ==========  ========== 
Basic earnings per share (pence)                             1.81        0.94 
Diluted basic earnings per share (pence)                     1.78        0.93 
=====================================================  ==========  ========== 
 

The Group reported a net asset value of 6.09 pence (ZAR 120.43 cents) (2020: 4.46 pence (ZAR 95.26 cents)) per ordinary share. Tangible net asset value for the period under review was 1.99 pence (ZAR 39.42 cents) (2020: 1.01 pence (ZAR 21.52 cents)). The total number of ordinary shares in issue at 30 June 2021 was 2 242 509 468 (2020: 2 112 509 573) shares.

There have been no other transactions involving ordinary shares or potential ordinary shares between the reporting date and the date of authorisation of these financial statements. There were no share transactions post year end to the date of this report that could have impacted earnings per share had it occurred before year end.

   3.         Share Capital, Share Premium and Warrants 

Figures in pound sterling 2021 2020

 
Authorised 
The share capital of the Company is divided into 
 an unlimited number of ordinary shares of GBP 
 0.01 each. 
Issued share capital fully paid 
Ordinary shares of 1 pence each                    22 425 093  21 125 096 
Share premium                                      97 588 094  93 460 296 
=================================================  ==========  ========== 
                                                      120 013     114 585 
Total issued capital                                      187         392 
=================================================  ==========  ========== 
 

The Company issued the following shares during the period:

 
                                 Number of  Issue price 
  Date issued                       shares      (pence)    Purpose 
===========================  =============  ===========  ================= 
Opening balance at 1 July 
 2020                        2 112 509 573 
07-Dec-20                          694 445        6.120  Warrants 
12-Jan-21                       19 417 476        3.375  Warrants 
13-Jan-21                          610 445        4.000  Warrants 
13-Jan-21                        1 473 055        3.380  Warrants 
21-Jan-21                       80 728 619        2.810  Debt settlement 
21-Jan-21                        4 393 736       13.000  Director dealing 
21-Jan-21                       14 760 730       13.000  Director dealing 
03-Feb-21                        4 000 000        3.400  Warrants 
08-Feb-21                        3 000 000        6.000  Options exercised 
18-Feb-21                           80 000        6.120  Warrants 
09-Mar-21                          200 000        6.120  Warrants 
11-Mar-21                          502 500        6.120  Warrants 
14-May-21                          138 889        6.120  Warrants 
===========================  =============  ===========  ================= 
Closing balance at 30 June 
 2021                        2 242 509 468 
===========================  =============  ===========  ================= 
 

During the year share transaction costs accounted for as a deduction from the share premium account amounted to GBP 314 842 (2020: GBP 747 412). On 21 September 2021, post the period under review, the Company issued 187 149 096 new ordinary shares at a price of 16.03 pence to raise GBP 30 million before expenses, bringing the total shares in issue at the date of this report to 2 429 658 564 shares.

The company recognised a share-based payment expense in the share premium account in an amount of GBP 161 974 (2020: GBP 205 903) in accordance with section 610 (2) of the United Kingdom Companies Act 2006. The charge relates to the issue of new Jubilee shares in lieu of warrants exercised and the amount was accounted for as a deduction from the share premium account.

Warrants

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

 
                                              Subscription                  Share price 
 Issue Date                        Number of         Price       Expiry   at issue date 
                                    warrants         pence         date         (pence) 
=======================  ===================  ============  ===========  ============== 
19 Jan 2018                       63 661 944          6.12  19 Jan 2023               3.55 
28 Dec 2018                       10 000 000          3.38  28 Dec 2023               2.40 
19 Nov 2019                        7 818 750          4.00  19 Nov 2022               4.13 
22 Jun 2020                          750 000          3.40  22 Jun 2023               3.90 
21 Jan 2021                        4 036 431         13.00  21 Jan 2024              13.20 
=======================  ===================  ============  ===========  ================= 
                                  86 267 125 
=======================  ===================  ============  ===========  ================= 
 
 Reconciliation of the number of warrants 
  in issue                                                         2021            2020 
 =========================================================  ===========  ============== 
                                                                112 292 
 Opening balance                                                    488      99 113 293 
 Issued during the year                                       4 036 431      13 179 195 
                                                                (30 061 
 Expired/exercised during the year                                 794)               - 
 =========================================================  ===========  ============== 
                                                                                112 292 
 Closing balance                                             86 267 125             488 
 =========================================================  ===========  ============== 
 
 
   4.         Segmental analysis 

In the opinion of the Directors, the operations of the Group companies comprise of four reporting segments being:

o the processing of PGM, chrome and copper containing materials ("Metals Processing");

o a combination of targeted process consulting and developing, focussed on the development and implementation of process solutions, specifically targeting both liquid and solid waste streams from mine processes. This includes existing pilot operations as part of the process development cycle to provide mature solutions which includes extractive-metallurgy, pyro-metallurgy and hydro-metallurgy ("Business Development");

o the exploration (Exploration); and

o the parent company operates a head office based in the United Kingdom, which incurs certain administration and corporate costs. ("Corporate").

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

Segment report for the year ended 30 June 2021

 
                                       Metals Processing           Business 
  Figures in Sterling                                           development    Exploration    Corporate          Total 
============================  ==========================  =================  =============  ===========  ============= 
                                                                                                               132 845 
Total revenues                               132 845 176                  -              -            -            176 
                                                                                                               (61 733 
Cost of sales                               (62 398 524)            664 849              -            -           675) 
Profit/(loss) before                                                                             (4 792 
 taxation                                     47 254 824            565 611        (3 707)         657)     43 024 070 
Taxation                                     (2 792 867)                  -              -            -    (2 792 867) 
                                                                                                 (4 792 
Profit/(loss) after taxation                  44 461 957            565 611        (3 707)         657)     40 231 204 
Interest received                                480 418                  -             71       19 685        500 175 
Interest paid                                (1 673 786)                  -              -            -    (1 673 786) 
Depreciation and 
 amortisation                                (5 111 143)                  -              -            -    (5 111 143) 
============================  ==========================  =================  =============  ===========  ============= 
                                                (154 959                           (34 626                    (193 071 
Total assets                                        693)        (3 629 684)           843)      145 210           011) 
============================  ==========================  =================  =============  ===========  ============= 
Total liabilities                             50 721 441       (11 808 622)     16 253 772    1 361 839     56 528 430 
============================  ==========================  =================  =============  ===========  ============= 
 

Segment report for the year ended 30 June 2020

 
                                                  Metals           Business 
  Figures in Sterling                         Processing        development    Exploration    Corporate          Total 
============================  ==========================  =================  =============  ===========  ============= 
Total revenue                                 54 774 818                  -              -            -     54 774 818 
                                                                                                               (29 687 
Cost of sales                               (29 683 413)            (3 807)              -            -           220) 
Forex profits/(losses)                           723 787                  -              -     (65 433)        658 354 
Profit/(loss) before                                                                             (6 363 
 taxation                                     20 107 447           (10 093)          (956)         527)     13 732 871 
Taxation                                       3 541 615                  -              -      954 101      4 495 716 
Profit/(loss) after                                                                              (5 409 
 taxation                                     23 649 062           (10 093)          (956)         427)     18 228 586 
Interest received                                101 214                  -            167       23 883        125 264 
Interest paid                                (2 245 776)                  -             35    (175 134)    (2 420 875) 
Depreciation and 
 amortisation                                (6 501 760)                  -              -            -    (6 501 760) 
============================  ==========================  =================  =============  ===========  ============= 
                                                                                                 (3 251       (130 638 
Total assets                                (90 719 255)        (3 159 299)   (33 507 643)         913)           110) 
============================  ==========================  =================  =============  ===========  ============= 
Total liabilities                             31 175 924         11 130 297     15 958 164      453 299     36 457 091 
============================  ==========================  =================  =============  ===========  ============= 
 
   6.         Going Concern 

Jubilee operates several chrome-Platinum Group Metal (PGM) operations in South Africa and has commissioned a copper and cobalt circuit (the 'Sable' refinery) in Zambia. The Company has a growth pipeline identified and significant opportunities to find new projects in Africa (or globally); more specifically it is looking to increase its copper (cobalt) production in Zambia to make full use of its Sable Refinery. The company model is to treat its own waste materials and to supplement these with third party ores and wastes where possible.

Following conclusion of a number of transactions Jubilee now has increased PGM production capacity built on the back of secured feed availability and sustainability. Strong cash flows were generated from the established and still growing PGM production now bolstered by additional copper cash flows and profit provide for both liquidity and funding of further investments, including now demonstrated ability to raise funding short and long term at very competitive rates.

Jubilee has also secured increased chrome production capacity ensuring sustainability through ROM supply contracts and continuous processing of chrome with fixed margins (no market exposure and locked in profit), which now secures ongoing current arisings PGM feed in addition to the secured historical PGM tails. This gives optimal feed and further increases Jubilee's resource. The transactions have also brought further opportunity for growth and expansion in for example the Eastern Limb of the bushveld.

Copper is already generating cash prior to Project Roan coming on stream. Jubilee is expecting a significant ramp up in copper activities in Zambia from Q1 CY2022, making Zambia capable of being self-sufficient in terms of funding for both current operations and future projects.

Jubilee's business strategy is based on three core business pillars:

Process research and development (R&D)

o Consists of a combination of targeted process consulting and R&D, focussed on the development and implementation of process solutions, specifically targeting both liquid and solid waste streams from

mine processes.

o Our R&D includes existing pilot operations as part of the process development cycle to provide mature solutions which includes extractive-metallurgy, pyro-metallurgy and hydro-metallurgy.

o This process has led to many previously non-viable environmental and metals recovery projects becoming commercially viable. With the growing demand for solutions to mining wastes and the growing requirement for 'Environmental, Social & Corporate Governance' (ESG) in mining investments the pedigree, experience and ability of Jubilee will be of increasing importance.

o Following a very strong demand in Africa, Jubilee has concluded two acquisitions in Zambia to advance its footprint in other jurisdictions.

Operations

o Jubilee owns and operates recovery plants for the recovery of metals and minerals, currently recovering precious metals including PGMs and Chrome and targeting base metals including lead, zinc, vanadium and copper.

o Jubilee has a low-cost, high-margin business that capitalises on Jubilee's experienced, technical management team which has developed innovative processing techniques to generate cash from (mainly) the waste material produced as part of the mining cycle; "the Jubilee Way".

Project Funding

o We are able to provide funding to support our partners within smaller or larger companies to implement the waste recovery projects. Such funding would be aimed at especially assisting in instances where the company holding the mineral right prefers to be a passive investment partner.

o Our successful R&D work has set the pace for the Company to partner with strategic owners of rights and waste material to form joint operations where Jubilee plays the important role of operator and in some instances funder.

The Group meets its day-to-day working capital requirements through cash generated from operations. The Group's current operational projects are all fully funded and self-sustaining.

The current global economic climate creates to some extent uncertainty particularly over:

o the trading price of metals; and

o the exchange rate fluctuation between the US$ and the ZAR and thus the consequence for the cost of the company's raw materials as well as the price at which product can be sold.

The Group's forecasts and projections, taking account of reasonably possible changes in trading performance, commodity prices and currency fluctuations, indicates that the Group should be able to operate within the level of its current cash flow earnings forecasted for the next twelve months.

The Group is adequately funded and has access to further equity placings, which together with contracts with several high-profile customers strengthens the Group's ability to meet its day-to-day working capital requirements, including its capital expenditure requirements. Therefore, the directors believe that the Group is suitably funded and placed to manage its business risks successfully despite identified economic uncertainties.

The directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, thus continuing to adopt the going concern basis of accounting in preparing the annual financial statements.

   7.         Events after the reporting period 

7.1 Jubilee and Mopani Copper Mines Plc enter into binding MOU for Refining Facility for Copper

On 24 August 2021 Jubilee executed a binding Memorandum of Understanding with Mopani Copper Mines Plc, a subsidiary of ZCCM Investment Holdings Plc in Zambia, ("Mopani", "ZCCM" and collectively the "Parties") for the implementation of additional copper and cobalt refining capacity through the recapitalisation of existing refining capacity placed under care and maintenance by Mopani (the "Agreement"). This additional refining capacity targets to increase Jubilee's existing copper refining capacity by a further 17 000 tonnes of copper per annum (the "Project") and, together with the Sable Refinery, increases the Group's total potential refining capacity to in excess of 31 000 tonnes per annum. The Project will establish Jubilee's Northern Zambian refining footprint for the refining of the copper and cobalt concentrates produced at Jubilee's Kitwe and the Luanshya copper and cobalt tailings. Jubilee's Sable Refinery will be dedicated to the refining of concentrates produced by its Project Roan currently under construction and set to commence commissioning by January 2022 as well as its copper tailings at Kabwe and contracted third party ore suppliers.

As previously announced, during 2020 Jubilee entered into joint venture agreements to secure rights to process over 300 million tonnes of copper and cobalt containing tailings in Zambia. The copper and cobalt tailings are located in three central locations in Zambia. With the addition of the refinery at Mopani the project naming convention has been updated for clarity as follows:

o Southern Refinery Strategy (14 000 tpa capacity) which incorporates the Sable Refinery together with Project Roan located in the Ndola area; and

o Northern Refinery Strategy (17 000 tpa capacity) which incorporates the newly targeted refinery at Mopani, called Leopard together with the copper tailings project in the Luanshya area, called Project Lechwe (previously Elephant 1), as well as the copper and cobalt tailings in the Kitwe area called Project Elephant (previously called Elephant 2). Jubilee has secured additional copper and cobalt tailings at Mufulira which is currently being sampled to confirm the quantity and quality and will form part of the Project Elephant resource.

Jubilee is planning to construct a processing facility at each of the three locations. The first of the processing facilities is under construction at Project Roan, which targets a ramp-up over three phase to reach full production to a rate of approximate 10 000 tonnes of equivalent copper units per annum with commissioning scheduled to commence by January 2022 and reaching full production by end of Q2 2022. Roan commenced with the delivery of early concentrate as part of its phase 1 commissioning to Sable Refinery in April of this year.

The completion of the design work for the Company's second copper processing facility, Project Lechwe, whereby Jubilee has secured the rights to approximately 160 million tonnes of copper containing surface tailings, is progressing well and remains on track. Project Lechwe targets to commence production during Q4 2022 targeting a production rate of 7 500 copper units per annum as part of the Northern Refinery Strategy.

   7.2       Agreements to acquire ownership in Zambia Copper and Cobalt Tailings Projects and Placing 

Jubilee announced significant further progress at its Copper and Cobalt tailings projects in Zambia with the successful execution of three strategic transactions (the "Transactions") which significantly increases its beneficial interest across the Group's copper and cobalt tailings projects in Zambia. The Transactions include Project Elephant (Kitwe Tailings Project), Project Roan (Ndola Tailings Project) and the Mufulira Project (collectively, the "Projects"). Completion of the Transactions is subject to fulfilment of certain conditions precedent that are normal for transactions of this nature including regulatory approvals and consent.

At completion of the Transactions, Jubilee will hold a 100% interest across its integrated Southern Refining Strategy which includes the Sable copper and cobalt refinery (14 000 tonnes per annum copper capacity) together with Project Roan (10 000 tonnes per annum copper concentrator). In addition, Jubilee increases its beneficial interest across its Northern Refining Strategy, with Project Elephant's TD52 portion to 80.75% (highest copper and cobalt concentration of all tailings within Project elephant) which is specifically targeted by the accelerated development of Jubilee's cobalt extraction process, Jubilee's beneficial interest at the Mufulira Project increasing to 97%.

Combined, the Transactions have an aggregate value of c. US$ 24.77 million (c. GBP 17.83 million) and offers Jubilee the flexibility to better schedule the development of the various tailings projects. As such Jubilee will increase its investment into the Southern Refining Strategy by expanding Sable Refinery to increase the copper sulphide recovery circuit as well as expanding the cobalt recovery circuit.

Accordingly, the Company successfully completed an equity placing to raise gross proceeds of c. GBP 30 million (c. US$ 41.8 million) by way of a placing of new ordinary shares at a price of 16.03 pence per share, which will be applied to satisfy the consideration in respect of the Transactions and towards the expansion of Sable Refinery while accelerating the capitalisation and progress of Project Lechwe and Project Elephant.

8. Audit Opinion

The auditor's report on the annual financial statements of the Group was unqualified and did not contain any statements under section 498(2) or (3) of the Companies Act 2006.

Notice of Annual General Meeting and availability of the Group's Annual Financial Statements

The Company also hereby gives notice of its 2021 Annual General Meeting ("AGM") , which will be held on 29 December 2021 at 11:00 am UK time at the offices of Fladgate LLP, 16 Great Queen Street, London, WC2B 5DG, to transact the business as stated in the notice of AGM. The Group's Annual Report for the year ended 30 June 2021, along with the Notice of AGM, has been posted to the website, www.jubileemetalsgroup.com together with the notice of the Company's 2021 Annual General Meeting .

In light of current restrictions on public gatherings and to ensure shareholders can comply with the government measures, the Company has concluded that shareholders will not be permitted to attend in person. The Company therefore requests that shareholders cast their votes by proxy to be received 48 hours (excluding non-business days) in advance of the time of the AGM. Instructions on how shareholder can cast their votes for the AGM are included in the Notice of AGM.

Following the AGM formal business on 29 December 2021, the Company will be hosting a presentation, live streamed to give the shareholders an opportunity for a general Company update and discussion of the group annual audited results. Please send any questions you may have to info@jubileemetalsgroup.com by 27 December 2021 to be addressed during the live stream. The link to participate will be published on the Company's website via separate RNS.

Salient Dates:

 
 Shareholders on the register who are entitled 
  to receive the notice of AGM (SA)                                     26 November 2021 
 Notice of AGM posted to shareholders                                    2 December 2021 
 Last date to trade in order to be eligible 
  to participate in and vote at the AGM (SA)                            21 December 2021 
 Record date for the purposes of determining 
  which shareholders are entitled to participate                        23 December 2021 
  in and vote at the AGM (UK) 
 Latest time and date for receipt of CREST 
  Proxy Instruction and other                           11:00 a.m. (UK time) 23 December 
  uncertificated instructions (UK)                                                  2021 
 Record date for the purposes of determining 
  which shareholders are                                                24 December 2021 
  entitled to participate in and vote at the 
  AGM (SA) 
 Latest time and date for receipt of Dematerialised 
  Holding Instruction                                       1 p.m. (SA time) 28 December 
  and other uncertified instructions (SA)                                           2021 
 Annual General Meeting                                 11:00 a.m. (UK time) 29 December 
                                                                                    2021 
 Results of the Annual General Meeting released                         29 December 2021 
  on RNS and SENS 
 

*Ends*

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

Jubilee Metals Group PLC

Colin Bird/Leon Coetzer

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

Nominated Adviser - SPARK Advisory Partners Limited

Andrew Emmott/James Keeshan

Tel: +44 (0) 20 3368 3555

Broker - Shard Capital Partners LLP

Damon Heath/Erik Woolgar

Tel +44 (0) 20 7186 9900

Joint Broker - WHIreland

Harry Ansell/Katy Mitchell

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

JSE Sponsor - Questco Corporate Adviser

Sharon Owens

Tel +27 (0) 11 809 7500

PR & IR Adviser - Tavistock

Jos Simson/ Gareth Tredway/Charles Vivian

Tel: +44 (0) 207 920 3150

PR & IR Adviser - St Brides Partners Limited

ANNEXURE 1 - Headline earnings per share

Accounting policy

Headline earnings per share ("HEPS") is calculated using the weighted average number of shares in issue during the period under review and is based on earnings attributable to ordinary shareholders, after excluding those items as required by Circular 1/2021 issued by the South African Institute of Chartered Accountants (SAICA).

In compliance with paragraph 18.19 (c) of the JSE Listings Requirements the table below represents the Group's Headline earnings and a reconciliation of the Group's loss reported and headline earnings used in the calculation of headline earnings per share:

Reconciliation of headline earnings per share

 
                                                    June 2021                               June 2020 
                                       =========================  ==========  ==================================== 
                                                      Gross         Net                  Gross            Net 
                                                     GBP'000         GBP'000              GBP'000          GBP'000 
=====================================  =========================  ==========  ===================  =============== 
Earnings for the period attributable 
 to ordinary shareholders                                             39 600                    -           18 320 
De-recognition of other financial 
 assets through profit or loss                                             -                5 021            4 067 
Gain on bargain purchase                                                   -              (6 607)          (6 607) 
Share of impairment loss from equity 
 accounted associate                                          31          24                1 964            1 375 
Fair value adjustments                                     1 161       1 161                    -                - 
=====================================  =========================  ==========  ===================  =============== 
Headline earnings from continuing 
 operations                                                           40 785                                17 155 
=====================================  =====================================  ==================================== 
Weighted average number of shares 
 in issue ('000)                                                   2 185 346                             1 955 965 
Diluted weighted average number 
 of shares in issue ('000)                                         2 226 089                             1 975 264 
Headline earnings per share from 
 continuing operations (pence)                                          1.87                                  0.88 
Headline earnings per share from 
 continuing operations (ZAR cents)                                     38.62                                 17.30 
Diluted headline earnings per share 
 from continuing operations (pence)                                     1.83                                  0.87 
Diluted headline earnings per share 
 from continuing operations (ZAR 
 cents)                                                                37.92                                 17.13 
Average conversion rate used for 
 the period under review GBP:ZAR                                       0.048                                 0.051 
=====================================  =========================  ==========  ===================  =============== 
 

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END

FR MZMGZGMLGMZZ

(END) Dow Jones Newswires

December 02, 2021 02:00 ET (07:00 GMT)

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