TIDMJLP

RNS Number : 4107T

Jubilee Metals Group PLC

25 March 2021

Registration number (4459850)

Altx share code: JBL

AIM share code: JLP

ISIN: GB0031852162

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")

UNAUDITED INTERIM RESULTS

FOR THE SIX MONTHSED 31 DECEMBER 2020

Jubilee, the AIM and Altx traded metals processing company is pleased to announce its unaudited interim results of the Group for the six months ended 31 December 2020, a period that has seen exceptional operational and financial growth. These results are compared with the period for the six months ended 31 December 2019 as the comparative period unless stated otherwise.

HIGHLIGHTS

Financial highlights

Six-month period under review

-- Jubilee attributable earnings (i) for the six-month period increased sharply by 212 %, to a record GBP 30.9 million (ZAR 656 million) (ii) (2019: GBP 9.9 million (ZAR 170.4 million)), driven mainly by increased operational output with PGM production surging by 34 % and increased metal prices over the period (iii)

-- Adjusted EBITDA (iv) for the six-month period increased by 237 % to GBP 29.3 million (ZAR 622 million) (2019: GBP 8.7 million (ZAR 150 million))

-- Basic earnings per share for the six-month period increased by 160 % to 0.91 pence (ZAR 19.21 cents) (2019: 0.35 pence (ZAR 6.09 cents))

-- Revenue increased 110 % to GBP 53.4 million (ZAR 1.1 billion) (2019: GBP 25.4 million (ZAR 439.4 million))

-- Operating profit increased sharply by 355 % to GBP 25.5 million (ZAR 541 million) (2019: GBP 5.6 million (ZAR 97.7 million))

-- Cash generated from operations before movements in working capital increased by 265 % to GBP 28.8 million (ZAR 611.4 million) (2019: GBP 7.9 million (ZAR 136.3 million)) (v)

-- The Group balance sheet strengthened further on the back of the strong operational performance, with total assets at GBP 152.9 million (ZAR 3.1 billion), up from GBP 131 million (ZAR 2.8 billion) at the end of June 2020, total equity increasing by 21.3 % to GBP 114 million (ZAR 2.3 billion), for the same period, maintaining a high 75 % equity ratio (30 June 2020: 72 %)

-- Cash and cash equivalents stood at GBP 9.8 million (ZAR 195 million), with short term assets covering a healthy 301 % of short-term liabilities compared to 235 % at 30 June 2020

Post the period under review

-- Jubilee through its South African subsidiary Windsor SA, executed a scalable working capital credit facility with ABSA Bank, which signals Jubilee's ability to attract bank and structured funding to support its growth objectives, on the back of its repeated quality earnings

(i) Attributable earnings refer to earnings attributable to the group based on its contractual rights in each project

(ii) Conversion rates used for revenue and earnings are at the average conversion rate for the period and for balance sheet at the spot rate at period end. Conversion rates used for capital expenditure and acquisitions are at current spot rates

(iii) The average Platinum price increased 11% from US$501/oz to US$557/oz, Palladium increased 19% from US$347/oz to US$413/oz and Rhodium increased 245% from US$373/oz to U$1 286/oz from 31 December 2019 to 31 December 2020

(iv) Adjusted EBITDA refers to EBITDA adjusted for non-cash expenses including impairments, gain on bargain purchase and foreign exchange differences

   (v)                   Refer to the table on Group Cash below 

Operational highlights

PGM

Six-month period under review

   --    PGM (vi() production for the six-month period up 34 % to 28 187 ounces (2019: 21 082 ounces) 

-- PGM revenue up 125 % to GBP 36.6 million (ZAR 776 million) (2019: GBP 16.3 million (ZAR 281.6 million))

-- PGM attributable earnings (vii) up 172 % to GBP 26.4 million (ZAR 560 million) (2019: GBP 9.7 million (ZAR 167.7 million))

-- Increased PGM production was achieved, including record production during December, despite the planned scale down of operations at Jubilee's Eland Platinum JV PGM partner

Post the period under review

-- Inyoni expansion currently underway targeting to further improve PGM production rates and targeted PGM recoveries, expansion expected to conclude during Q2 2021

(vi) Platinum Group Metals (6E platinum, palladium, rhodium, iridium, osmium, and gold).

(vii) All numbers reflect only production attributable to Jubilee and excludes that portion of production attributable to its JV partner.

CHROME

Six-month period under review

-- Chrome production for the six-month period up 72 % to 319 834 tonnes of saleable chromite concentrate (2019: 186 249 tonnes)

-- Chrome revenue up 27 % to GBP 11.6 million (ZAR 245.3 million) (2019: GBP 9.12 million (ZAR 157.8 million))

-- Attributable chrome earnings are up 333 % to GBP 1.3 million (ZAR 28 million) (2019: GBP 0.3 million (ZAR 4.7 million))

-- The increase in chrome earnings was supported by the implementation of the new fixed margin chrome processing contracts

-- The new 35 000 tonnes per month chrome beneficiation facility named, Windsor 8, commenced operations in October 2020

-- Jubilee commenced with the construction of an additional new 80 000 tonne per month chrome beneficiation operation near its Inyoni PGM Operations. The facility will consist of four integrated chrome recovery circuits to maximise chrome efficiencies and is expected to be fully commissioned within Q2 2021

Post the period under review

-- Jubilee commenced with the commissioning of the first of the four integrated chrome recovery circuits combined forming the new 80 000 tonnes per month chrome beneficiation facility, with the second and third process scheduled to commence commissioning immediately

COPPER

Period under review

-- Jubilee's Sable Refinery achieves early earnings from its copper and cobalt production as part of securing operational readiness to accept first production from Project Roan, producing a total of 1 447 tonnes of plated copper cathode to date

-- The construction of the first processing facility, named Project Roan, has commenced and will be commissioned in three phases to allow the early production of partially upgraded copper concentrates for refining at the Sable Refinery

-- A capital budget of US$ 17 million has been allocated to Project Roan which is funded from Jubilee's own cash-flow

-- Jubilee secured the rights to in excess of 300 million tonnes of copper and cobalt containing material at surface, which combined will be the primary feed source to the three copper and cobalt processing facilities being targeted for construction

Post the period under review

-- Phase one of Project Roan reaching completion and targeting to commence delivery of intermediate copper concentrate to Sable Refinery during April 2021 despite severe disruptions caused by heavy rains in the region

Leon Coetzer, CEO of Jubilee, commented: "The acquisition of the rights to almost 300 million tonnes of copper and cobalt tailings with the completion of five major transactions in Zambia; the maturity of operations and continued delivery of record PGM and Chrome earnings in South Africa; and a 110 % increase in Group Revenue to GBP 53.4 million resulting in attributable earnings of GBP 30.9 million, are just a few of the milestones met by the Jubilee team during the six-month period under review. Despite the unprecedented challenges posed by the ongoing pandemic, H2 2020 was a period of significant growth for the Company.

"Central to achieving the above milestones is our commitment to 'The Jubilee Way', and I am extremely grateful to the Jubilee team which has continuously demonstrated its resilience and commitment to this, always striving to translate leading in-house processing and metals recovery excellency into industry leading operational efficiencies.

"On the back of new third party and ore supply agreements as well as improved efficiencies across our chrome and PGM operations, we have delivered both record production and financial performance at our South African operations. Importantly, thanks to this sustained earnings growth, we have been able to fund the capitalisation of our Sable Refinery and Project Roan currently under construction in Zambia which has been the focus of much of our efforts over the six-month period.

"We are now ramping up production with the first copper concentrator currently under construction at Project Roan and set to commence delivery of the first intermediate copper concentrate to Sable Refinery within the next three weeks. We are fully committed to achieving our target of producing 25 000 tonnes of copper per annum within the next four years.

"Our success in South Africa and progress in Zambia is a clear demonstration of our technical know-how and IP when it comes to surface material into value and we are now perfectly poised to play a commanding role in the sector including in Zambia."

Chairperson's Statement

Jubilee has delivered an exceptional performance for the six-month reporting period with significant gains achieved at both an operational and financial level.

Despite the challenges faced due to the continued Covid-19 pandemic the Company was able to largely buffer the impact on the operations by adjusting to more regulated working conditions and maintaining a robust protocol for the management of Covid-19 which was in line with government guidelines and in some cases beyond. Consistent with our operational philosophy, the entire Jubilee team demonstrated support and commitment whilst dealing with the potential negative effects of the pandemic and we thank everyone for their hard work and support in this regard.

Our PGM and chrome operational earnings increased sharply to GBP 27.7 million representing an increase of 178 % over the previous reporting period. This increase was supported by strong operational gains in throughput, operational efficiencies and buoyant PGM prices.

PGM operational earnings increased significantly achieving an overall 172 % increase delivering 28 187 PGM ounces and the Windsor chrome operation contributed to the improved earnings with the new Windsor 8 chrome operation commencing production during October 2020. We continue to aggressively grow our chrome beneficiation capacity which also produced, as a by-product, a PGM rich discard stream as further feed to our PGM operations. In November 2020, in line with this chrome strategy, Jubilee commenced with the construction of an additional 80 000 tonnes per month chrome beneficiation facility targeting the processing of chrome Run-Of-Mine ore. On completion of this new facility Jubilee will hold a total chrome feed processing capacity of 250 000 tonnes per month of both chrome ore and tailings.

This dual metal approach has served us well during recent periods with the low chrome metal prices cycle being offset by PGMs providing a robust upside as the PGM basket price demonstrated value increase. We, as a company, are able to react to changing metal prices on a short-term basis assuring that we maximise contribution from our various ore sources. Jubilee has achieved success in the chrome and PGM industry by combining experience and innovation with business acumen taking us to our current strong industry position.

We now welcome the challenge of growing our Zambian copper and cobalt operation. The acquisition of the Sable Refinery in Kabwe was a pivotal component in the implementation of the Company's copper strategy recognising the ability to reach operational readiness of the Sable Refinery in the short term. We can produce, without any expansion, up to 16 000 tonnes of copper cathodes and that is our immediate target. We have capitalised the Sable Refinery achieving full operational readiness to accept the first intermediate copper concentrate from Project Roan and have achieved some early earnings during the interim period. The first of three targeted processing facilities is under construction, which will enhance copper earnings progressively during the first half of this year. At full capacity, Project Roan is targeted to produce 10 000 tonnes per annum of equivalent copper units.

During the period, we announced the acquisitions from various sources of some 300 million tonnes of copper/cobalt tailings as feed for the mid-term future. We intend to construct three new processing plants to process and recover the copper and cobalt in these resources targeting the production of 25 000 tonnes of copper once completed. The first of these processing facilities is dubbed Project Roan.

We are excited about the potential for our copper operations to deliver significant earnings and believe that current prices can not only be maintained but also be increased upon. We are mindful of a world that has not yet beaten or fully managed the Covid-19 pandemic and therefore anticipate global stop start economics. Having said that we are in no doubt that the sheer weight of money directed at infrastructure will maintain demand and that the EV vehicle rollout will be accelerated. Like many in our industry, we expect that these factors will continue to drive strong demand for copper supply and upward pressure on prices over the medium term.

Zambia has vast amounts of waste material produced by past mining and there is huge potential for new mining of copper in the country, providing Zambia with the opportunity to show growth consistent with other major producing nations. Jubilee intends to be part of that growth and as such we will continue to be proactive and offering assistance in realising that growth.

We were fortunate that during the period we have widened our shareholder profile and we now have an enviable balance of retail, institutional and family office shareholders with the larger funds also taking interest in the Company either by investment or regular review. Like all rapidly growing companies we are aware that growth, whilst bringing new opportunities, is not without its challenges and the Board is constantly reviewing its focus and approach to ensure that it is flexible in a rapidly changing world.

We expect the year 2021 to be another transformational year for the Company with South Africa maturing and Zambia evolving, and we are confident that we can grow our earnings consistent with our internal forecast. At the same time, we recognise that resources companies are seldom faced with such broad ranging opportunities that we now see. It is our intention to maintain and accelerate our growth in challenging but exciting times.

Colin Bird

Non-Executive Chairman

GROUP FINANCIAL AND OPERATIONAL PERFORMANCE

 
 
                                      Unit               6 months           6 months         12 months 
                                                               to                 to                to 
                                                                   -----------------  ---------------- 
                                                    31-Dec-20              31-Dec-19         30-Jun-20 
                                                -----------------  -----------------  ---------------- 
  GROUP 
                                     ---------  -----------------  -----------------  ---------------- 
  Revenue                             GBP'000              53 438             25 403            54 775 
                                     ---------  -----------------  -----------------  ---------------- 
  Adjusted attributable earnings 
   (i)                                GBP'000              30 946              9 849            25 088 
                                     ---------  -----------------  -----------------  ---------------- 
  Adjusted attributable earnings 
   margin                                %                     58                 39                46 
                                     ---------  -----------------  -----------------  ---------------- 
  EBITDA                              GBP'000              28 907             10 269            22 210 
                                     ---------  -----------------  -----------------  ---------------- 
  Adjusted EBITDA (ii)                GBP'000              29 325              8 679            22 643 
                                     ---------  -----------------  -----------------  ---------------- 
  Adjusted EBITDA margin                 %                     55                 34                41 
                                     ---------  -----------------  -----------------  ---------------- 
 
  PGM 
                                     ---------  -----------------  -----------------  ---------------- 
  PGM GBP revenue                     GBP'000              36 593             16 280            34 590 
                                     ---------  -----------------  -----------------  ---------------- 
  PGM $ revenue                        $'000               47 791             20 516            43 594 
                                     ---------  -----------------  -----------------  ---------------- 
  Attributable PGM GBP earnings       GBP'000              26 387              9 695            21 486 
                                     ---------  -----------------  -----------------  ---------------- 
  Attributable PGM $ earnings          $'000               34 462             12 218            27 079 
                                     ---------  -----------------  -----------------  ---------------- 
  Attributable PGM earnings 
   margin                                %                     72                 60                62 
                                     ---------  -----------------  -----------------  ---------------- 
  Attributable PGM ounces produced       oz                28 187             21 082            40 743 
                                     ---------  -----------------  -----------------  ---------------- 
  PGM $ revenue per ounce               $/oz                1 696                973             1 070 
                                     ---------  -----------------  -----------------  ---------------- 
  PGM attributable $ earnings 
   per ounce                            $/oz                1 223                580               665 
                                     ---------  -----------------  -----------------  ---------------- 
  Adjusted PGM production $ 
   unit cost (iii)                      $/oz                  470                519               541 
                                     ---------  -----------------  -----------------  ---------------- 
 
  CHROME 
                                     ---------  -----------------  -----------------  ---------------- 
  Chrome GBP revenue                  GBP'000              11 565              9 123            17 158 
                                     ---------  -----------------  -----------------  ---------------- 
  Chrome $ revenue (iv)                $'000               15 105             11 497            21 624 
                                     ---------  -----------------  -----------------  ---------------- 
  Attributable chrome GBP earnings    GBP'000               1 320                271               803 
                                     ---------  -----------------  -----------------  ---------------- 
  Attributable chrome $ earnings       $'000                1 724                341             1 013 
                                     ---------  -----------------  -----------------  ---------------- 
  Attributable chrome earnings 
   margin                                %                     11                  3                 5 
                                     ---------  -----------------  -----------------  ---------------- 
  Attributable chrome tonnes 
   produced                            tonnes             319 834            186 249           377 883 
                                     ---------  -----------------  -----------------  ---------------- 
  Chrome $ revenue per tonne            $/t                    47                 62                57 
                                     ---------  -----------------  -----------------  ---------------- 
  Chrome attributable $ earnings 
   per tonne                            $/t                     5                  2                 3 
                                     ---------  -----------------  -----------------  ---------------- 
 
 

(i) Attributable earnings refer to earnings attributable to the group based on its contractual rights in each project.

(ii) Adjusted EBITDA refers to EBITDA adjusted for non-cash expenses including impairments, gain on bargain purchase

and foreign exchange differences.

(iii) Adjusted PGM production unit cost includes all direct and indirect processing costs attributable to the production of PGMs. The period under review also includes all operating costs for the Windsor PGM Joint Venture allocated to the Jubilee attributable PGM ounces.

(iv) Chrome revenue is recognised on an ex-works basis after costs of export logistics including freight, shipping and marketing.

PRESENTATION OF MOVEMENTS IN GROUP CASH

 
                                               6 months       6 months   12 months 
                                                     to             to          to 
                                              31-Dec-20      31 Dec-19   30-Jun-20 
                                             ----------  -------------  ---------- 
                                                GBP'000        GBP'000     GBP'000 
                                             ----------  -------------  ---------- 
 Opening balance                                  9 948         18 865      18 865 
                                             ----------  -------------  ---------- 
            Cash generated from operations 
             before movements in working 
             capital                             28 824          7 880      22 937 
                                             ----------  -------------  ---------- 
 Adjusted for movements in working 
  capital 
                                             ----------  -------------  ---------- 
     (Increase)/decrease in inventories         (5 507)            440        (90) 
                                             ----------  -------------  ---------- 
     (Increase)/decrease in receivables 
      (i)                                      (12 462)            811     (6 787) 
                                             ----------  -------------  ---------- 
     Increase/(decrease) in payables                507        (3 113)       5 899 
                                             ----------  -------------  ---------- 
 Cash generated from operations                  11 362          6 018      21 734 
                                             ----------  -------------  ---------- 
      Less: Taxation paid                       (3 580)              -           - 
                                             ----------  -------------  ---------- 
      Less: Net finance cost                    (1 093)        (1 123)     (2 296) 
                                             ----------  -------------  ---------- 
 Cash from operating activities                   6 689          4 895      19 438 
                                             ----------  -------------  ---------- 
     Acquisition of rights to copper            (1 606)              -           - 
      tails 
                                             ----------  -------------  ---------- 
     Acquisition of PGM and chrome 
      rights                                          -       (11 129)    (14 667) 
                                             ----------  -------------  ---------- 
     Acquisition of Sable Zinc Kabwe 
      Refinery                                        -        (5 295)     (7 732) 
                                             ----------  -------------  ---------- 
     Purchase of property plant 
      and equipment                             (4 799)        (1 101)     (1 390) 
                                             ----------  -------------  ---------- 
     Purchase of intangible assets                (786)              -     (2 322) 
                                             ----------  -------------  ---------- 
     Net proceeds from the issue 
      of new Jubilee ordinary shares                  -          5 902       5 696 
                                             ----------  -------------  ---------- 
     Warrants exercised                              43              -           - 
                                             ----------  -------------  ---------- 
     Repayment of loans                         (1 253)        (2 154)     (4 168) 
                                             ----------  -------------  ---------- 
     Other                                        (175)          (173)         247 
                                             ----------  -------------  ---------- 
     Effect of currency movements 
      on cash                                     1 706            436     (4 019) 
                                             ----------  -------------  ---------- 
 Closing balance                                  9 767         10 247       9 948 
                                             ----------  -------------  ---------- 
 

(i) The significant increase in accounts receivable is mainly due to revenue recognised at the period end for inventories sold and delivered, but subject to final pricing and invoicing post the period end. These receivables are recognised as contract assets in the Statement of Financial Position.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE ("ESG")

Jubilee, as a specialist in processing of historical mine waste and tailings, and through its operations, continuously reduces the negative environmental effects caused by the historical activities of mining in the jurisdictions where it operates.

Registered as a public company and listed on the AIM market of the London Stock Exchange and the Altx board of the Johannesburg Stock Exchange, Jubilee is committed to providing effective, relevant and transparent disclosure of data in relation to all environmental, social and governance ("ESG") aspects of the Group's business activities.

Through its evolving ESG policies and strict operational protocols, the Group is a committed and responsible corporate citizen, incorporating best practices wherever possible for both the operational, social, environmental and governance aspects of the Group's business activities.

Going forward, it is the Board's intention to more formally and in greater detail disclose the progress of the Group's ESG related performance and initiatives. Jubilee will initiate its regular and more structured ESG reporting with the launch of its new corporate website currently under construction.

ENVIRONMENTAL

Jubilee has adopted three core themes to control and further reduce the net carbon footprint of its operations. The three themes are grouped under Effluent Management, Energy Usage and Water Consumption. Under these themes the Company manages a continuous improvement programme along the following principals;

   --    Reviewing and updating where applicable related Policies and Procedures 
   --    Accurate measuring and reporting of operating base line 
   --    Setting and holding to account short- and medium-term targets 
   --    Identifying and implementing intervention projects to achieve targets 
   --    Measuring and reporting of progress made 

Effluent Management

The Company's zero effluent policy is central to its project designs and operational management. Under the policy the company strives to transform historical mine waste sites to a fully contained site with zero effluent egress.

Energy Usage

Energy usage is a focal point of Jubilee's environmental footprint. The major energy usages are in the supply of electricity to sustain operations and through the use of fuels in the transport of materials. At a potential chrome feed capacity of 250 000 tonnes per month, the logistical management of material movement is a key focus area for Jubilee and offers many areas for optimisation to reduce the related carbon footprint. Jubilee has identified key intervention projects to significantly impact its related carbon footprint which will form part of its detailed ESG reporting.

Water Consumption

Water, being a key element in the pumping of material and in the physical separation process of both Chrome and PGMs, forms the basis of Jubilee's production processes. Water usage is strictly monitored by the engineering team and Jubilee strives to maximise the usage of recycled water. Jubilee has launched several intervention projects to further increase the retention of recycled water as it strives to minimise its reliance on any natural resources such as water.

SOCIAL

Jubilee pursues constant engagement with, and involvement of its social partners affected by its operations. These engagements are used to identify key interventions in addition to the social labour programmes managed by Jubilee as defined under the processing conditions set by regulators. Interventions are pursued that result in a sustained impact on Jubilee's social partners.

Workforce

Stakeholder involvement and participation is considered an integral part of labour relations. As such, successful annual wage agreements have been concluded at all of the Company's operations. In South Africa Jubilee currently offers direct employment to 319 people while in Zambia the Jubilee team has grown to a total of 204 local Zambians which is expected to increase sharply on the back of Jubilee's copper strategy.

Community

Jubilee's community and social engagement projects are grouped under education, health and sustainability

Jubilee has to date provided running water to approximately 400 households with a target to increase this number to 700 households over the coming year. The water project includes the installation and maintenance of an irrigated food garden operated sustainably by the local community. The programme is further supported by a feeding programme for the most vulnerable members.

Jubilee currently sponsors four bursaries for higher education and annually sponsors eighteen community members with certificated training of portable skills to enhance their employment prospects.

During 2020, Jubilee was committed to ensuring that where possible it provided support to the local communities with respect to the Covid-19 pandemic. This included donating cloth masks and sanitizers to 1 000 members. The team also believe that the transfer of information is critical in the fight against the virus and as such, Jubilee helped with the distribution of information regarding Covid-19 regulations and health and safety to the communities via the established forums.

Jubilee has prioritised the development and contracting of community established small enterprises. To this end strategic service level agreements were signed to assist local enterprise development, focusing on general maintenance, transport and security. These initiatives have already established sustainable civil, security and transport companies wholly owned by the communities and offering direct employment to their members.

GOVERNANCE

Jubilee's board, consisting of mining, engineering, corporate finance and legal experts, maintains the responsibility of leading the Company towards sustainable growth and is committed to leading the Company with integrity. The Company subscribes to the King IV Code of Corporate Governance in South Africa and the QCA Corporate Governance Code in the UK and applies best practice wherever possible which defines Corporate Governance as the exercise of ethical and effective leadership by the governing body towards the achievement of the following governance goals:

   --             Anti- corruption 
   --             Ethical culture 
   --             Transparency 
   --             Risk Management 
   --             Good performance 
   --             Effective control 
   --             Legitimacy 
   --             Quantitative data 

Jubilee continues to drive transparency in its stakeholder engagement through the regular publishing of updates regarding the Group's performance, strategy and operational developments. The Company also engages with stakeholders via CEO interviews, which are published on Jubilee's website and with the releasing of financial results on a half yearly basis.

INTERIM PERIOD REVIEW

Jubilee's South African operations maintained their growth trajectory during the six-month period on the back of a record operational performance for both its PGM and chrome operations. During the period under review Jubilee commissioned its new Windsor 8 chrome beneficiation plant further increasing its chrome processing capacity by 35 000 tonnes per month, while also commencing with the construction of its new 80 000 tonnes per month chrome beneficiation plant situated near its Inyoni Operation. PGM and Chrome operational earnings increasing by a record 178 % to GBP 27.7 million compared to the same comparative six-month period in 2019.

In addition to the strong performance of its South African operations, Jubilee has made exceptional progress in the implementation of its Copper and Cobalt strategy in Zambia. At the beginning of the reporting period, in July 2020, Jubilee outlined its plans to expand its business model into all aspects of copper in Zambia due to the vast quantities of tailings available, with the long term target of achieving production of 25 000 tonnes of copper per annum within four years. Six months on, this copper and cobalt strategy has already gained significant momentum, with Jubilee having secured almost 300 million tonnes of copper and cobalt tailings located in three zones across Zambia via the completion of five major transactions. The roll-out of this strategy has the potential to significantly increase earnings growth and the Company is committed to reaching its targeted goal of 25 000 tonnes per annum within the defined four-year period. Jubilee has targeted to construct three copper processing facilities to process the copper tailings to produce a copper concentrate that will be refined at Jubilee's Sable Refinery. The three copper processing projects have been named Projects Roan, Elephant One and Elephant Two, with Project Roan commencing construction and set to produce its first intermediate copper concentrate for further refining at Sable during April 2021.

Platinum Group Metals (PGM) Operations - South Africa

Jubilee's PGM operations consist of the Inyoni and Windsor PGM Operations. The PGM operations delivered a strong performance during the period with revenue up 125 % to GBP 36.6 million (ZAR 776 million) when compared to the same period last year. PGM operational earnings also increased by 172 % to GBP 26.4 million (ZAR 560 million) from H2 2019. Whilst the Windsor PGM Operations shut down temporarily as planned for part of the December period, the Company's Inyoni PGM Operations continued to operate. The expansion of the Inyoni Operation was approved and commenced construction post the period under review to further improve operation throughputs and overall PGM efficiencies. The average Platinum price increased 11 % from US$ 501/oz to US$ 557/oz, Palladium increased 19 % from US$ 347/oz to US$ 413/oz and Rhodium increased 245 % from US$ 373/oz to US$ 1 286/oz from 31 December 2019 to 31 December 2020.

The table below presents the combined operational revenue and earnings performance for PGMs for the period under review. The figures represent the final results based on reconciled production inputs and the allocation of costs have been standardised to fully account for all in sustainable costs:

 
 PGM           Tailings     PGM ounces   Attributable   Attributable   Jubilee         Jubilee         Unit 
                processed    delivered    project        project        attributable    attributable    cost/ 
                tonnes                    revenue        revenue        earnings        earnings        PGM oz 
                                          (GBP'000)      (ZAR'000)      (GBP'000)       (ZAR'000)       (i) (US$) 
 H2 2019          553 672       21 082         16.280        297.530           9 695         167.718          519 
              -----------  -----------  -------------  -------------  --------------  --------------  ----------- 
 H2 2020          595 664       28 187         36.593        776.032          26.387         560.450          470 
              -----------  -----------  -------------  -------------  --------------  --------------  ----------- 
 FY 30 June         1 035 
  2020                025       40 743         34.590        682.249          21.486         423.787         541 
              -----------  -----------  -------------  -------------  --------------  --------------  ----------- 
 

(i) The unit cost per ounce of PGM is influenced by a component of the acquisition cost for third party Run-Of-Mine ore.

Looking ahead to 2021, demand for the metals is expected to remain well supported with a deficit in supply of both platinum and palladium being predicted which is expected to provide strong support for PGM prices.

Chrome Operations - South Africa

Jubilee has pursued an aggressive growth strategy of its chrome operations. The chrome operations play a vital role to secure a sustained feed supply to both the chrome and PGM operations. Chrome ore is processed at the Jubilee chrome beneficiation plants to produce a saleable chrome concentrate and a PGM containing discard which is fed to the PGM recovery plants. Jubilee has expanded its chrome operations to reach an overall processing capacity of chrome ore of 115 000 tonnes per month which is in addition to its 55 000 tonnes per month chrome tailings facility at the Inyoni Operation.

Jubilee has further commenced with the construction of an additional 80 000 tonnes per month of chrome ore processing facility which at completion will increase Jubilee's overall processing capacity to 250 000 tonnes per month. At the time of writing this report, Jubilee had commenced the commissioning of its new 80 000 tonnes per month chrome processing facility.

During the period under review, Jubilee entered into a third-party Run-Of-Mine ("ROM") chrome ore offtake agreement fully committing both its Windsor Chrome beneficiation plant as well as the future capacity of the new 80 000 tonnes per month chrome beneficiation facility for the next three years, with an option for this to be extended further, supplementing the already secured surface chrome tailings stockpiles.

As a result of the completion of these agreements, as well as efficiency improvements, the Company's chrome earnings and revenue increased dramatically during the period. Chrome earnings increased by 387 % to GBP 1.3 million (ZAR 28 million) compared to the same period last year with chrome revenue increasing by 27 % to GBP 11.6 million (ZAR 245.3 million) from H2 2019.

The table below presents the combined operational revenue and earnings performance for chrome for the period under review. The figures represent the final results based on reconciled production inputs and the allocation of costs have been standardised to fully account for all in sustainable costs:

 
 CHROME            Chromite      Project      Project         Jubilee         Jubilee 
                concentrate      revenue      revenue    attributable    attributable 
                   produced    (GBP'000)    (ZAR'000)        earnings        earnings 
                     Tonnes                                 (GBP'000)       (ZAR'000) 
 H2 2019            186 249        9.123      157.821             271           4.686 
              -------------  -----------  -----------  --------------  -------------- 
 H2 2020            319 834       11.565      244.435           1.320          28.522 
              -------------  -----------  -----------  --------------  -------------- 
 FY 30 June 
  2020              377 883       17.158      338.422             803          15.847 
              -------------  -----------  -----------  --------------  -------------- 
 

Chrome prices continued to remain volatile due to the disruptions in the supply chain over the six- month period, and these price fluctuations are expected to continue over the next six months as the world emerges from the Covid-19 pandemic and supply and demand fundamentals are better matched.

Copper and Cobalt Operations - Zambia

Jubilee's Sable Refinery achieved early earnings from its copper and cobalt production as part of securing operational readiness to accept first production from Project Roan, producing a total of 1 447 tonnes of plated copper cathode to date.

The Sable Refinery is fully operational and ready to commence refining of Project Roan's material and has already achieved earnings of GBP 1.8 million (ZAR 38.4 million) from production during this phase. Copper prices increased strongly during the period, reaching a seven year high in December 2020, driven by strong demand fundamentals which are expected to last over the medium term.

The Company's Kabwe Project combined with its multi-metal Sable Refinery establishes Jubilee's fully integrated multi-metal recovery and refining operational footprint in Zambia. The Sable Refinery acts as a central processing facility for third party copper material in the region as well as the refinery offtake for the targeted copper tailings projects. Jubilee acquired the Sable Refinery to serve as an entry point into Zambia, from which to expand operations and take advantage of the various base metal opportunities in the country. As previously announced the Company has targeted to complete the zinc refining circuit to produce a zinc concentrate by Q4 2021. The zinc circuit will target the processing of both third-party zinc ore supplies within the region and the Kabwe tails located adjacent to the Sable Refinery. The vanadium circuit remains on-hold, pending a recovery in the market fundamentals.

At the beginning of the reporting period, in July 2020, Jubilee outlined its intention to expand its copper and cobalt operations in Zambia with the target of producing 25 000 tonnes of copper per annum within four years. The Company's copper and cobalt strategy gained significant momentum over the six-month period under review with the completion of five major acquisitions, securing the rights to a total of almost 300 million tonnes of copper and cobalt tailings. The tailings, which are spread across three different locations, will be developed by Jubilee as three separate projects with a processing facility being constructed at each: Project Roan, Project Elephant One and Project Elephant Two. The concentrates produced at each project will then be sent for further refining at the Company's Sable Refinery with the option of either expanding Sable Refinery or securing further refining capacity through JV partnerships or acquisition to match the ramp-up of the three processing facilities. The refining capacity at the Sable Refinery is currently limited to 16 000 tonnes per annum. Jubilee intends to increase its access to copper refining capacity to achieve 25 000 tonnes per annum within four years to ensure it is able to cater for material received from all three projects in line with its copper strategy.

During the period under review, the first of the three processing facilities entered into its construction phase at Project Roan and will be targeting an annual production rate of 10 000 tonnes of equivalent copper units. A capital expenditure of US$ 17 million has been allocated towards the implementation of Project Roan which will be funded from Jubilee cash flows. The processing facility will be commissioned over three phases to accelerate the delivery of copper units to the Sable Refinery. Phase one was expected to commence delivery of copper units to the Sable Refinery by end February 2021 but has been delayed mainly due to the heavy rains experienced within the region destroying access roads and delaying the commissioning to April 2021. The delivery of this intermediate copper concentrate to Sable Refinery will result in the first significant increase in production, with a target of achieving 400 copper units per month.

UNAUDITED INTERIM RESULTS FOR THE SIX MONTHSED 31 DECEMBER 2020

Consolidated Statement of Comprehensive Income for the six months ended 31 December 2020

 
                                                  Unaudited         Unaudited          Audited 
                                                   6 months          6 months        12 months 
                                                         to                to               to 
                                           ----------------  ----------------  --------------- 
                                                31 December       31 December      ended 30 
                                                                                     June 
                                           ----------------  ----------------  --------------- 
                                                       2020              2019             2020 
                                           ----------------  ----------------  --------------- 
                                                   GBP '000          GBP '000         GBP '000 
                                           ----------------  ----------------  --------------- 
 
 Revenue                                             53 438            25 403           54 775 
                                           ----------------  ----------------  --------------- 
 Cost of sales                                     (22 492)          (15 554)         (29 687) 
                                           ----------------  ----------------  --------------- 
                                                     30 946             9 849           25 088 
                                           ----------------  ----------------  --------------- 
 Operating costs                                    (6 298)           (4 260)         (10 670) 
                                           ----------------  ----------------  --------------- 
 Other income                                           850                60            1 471 
                                           ----------------  ----------------  --------------- 
 Operating profit                                    25 498             5 649           15 889 
                                           ----------------  ----------------  --------------- 
 Gain on bargain purchase                                 -             2 309            6 607 
                                           ----------------  ----------------  --------------- 
 Fair value adjustments                                   -                 -          (5 022) 
                                           ----------------  ----------------  --------------- 
 Investment income                                      165                50              125 
                                           ----------------  ----------------  --------------- 
 Finance costs                                      (1 167)           (1 324)          (2 421) 
                                           ----------------  ----------------  --------------- 
 Share of loss from associates                         (57)             (121)          (1 445) 
                                           ----------------  ----------------  --------------- 
 Profit before taxation                              24 440             6 563           13 733 
                                           ----------------  ----------------  --------------- 
 Taxation                                           (5 181)                 -            4 496 
                                           ----------------  ----------------  --------------- 
 Profit for the period                               19 259             6 563           18 229 
                                           ----------------  ----------------  --------------- 
 Attributable to: 
                                           ----------------  ----------------  --------------- 
 Owners of the parent                                19 135             6 660           18 320 
                                           ----------------  ----------------  --------------- 
 Non-controlling interest                               124              (97)             (92) 
                                           ----------------  ----------------  --------------- 
                                                     19 259             6 563           18 229 
                                           ----------------  ----------------  --------------- 
 
 Weighted average number of shares 
  ('000)                                          2 112 818         1 891 445        1 955 965 
                                           ----------------  ----------------  --------------- 
 Diluted weighted average number 
  of shares ('000)                                2 161 356         1 909 126        1 975 264 
                                           ----------------  ----------------  --------------- 
 Earnings per share (pence)                            0.91              0.35             0.94 
                                           ----------------  ----------------  --------------- 
 Diluted earnings per share (pence)                    0.89              0.35             0.93 
                                           ----------------  ----------------  --------------- 
 
 Reconciliation of other comprehensive 
  income: 
                                           ----------------  ----------------  --------------- 
 Profit for the period                               19 259             6 563           18 229 
                                           ----------------  ----------------  --------------- 
 Other comprehensive income 
                                           ----------------  ----------------  --------------- 
 Loss on translation of foreign 
  subsidiaries                                          794           (3 112)         (12 389) 
                                           ----------------  ----------------  --------------- 
 Total comprehensive income attributable 
  to:                                                20 053             3 451            5 840 
                                           ----------------  ----------------  --------------- 
 Owners of the parent                                19 906             3 634            6 318 
                                           ----------------  ----------------  --------------- 
 Non-controlling interest                               147             (183)            (478) 
                                           ----------------  ----------------  --------------- 
                                                     20 053             3 451            5 840 
                                           ----------------  ----------------  --------------- 
 

Consolidated Statement of Financial Position as at 31 December 2020

 
                                              Unaudited       Unaudited          Audited 
                                               6 months        6 months        12 months 
                                                     to              to               to 
                                       ----------------  --------------  --------------- 
                                            31 December     31 December          30 June 
                                       ----------------  --------------  --------------- 
                                                   2020            2019             2020 
                                       ----------------  --------------  --------------- 
                                               GBP '000        GBP '000         GBP '000 
                                       ----------------  --------------  --------------- 
 Assets 
                                       ----------------  --------------  --------------- 
 Non-current assets 
                                       ----------------  --------------  --------------- 
 Property, plant and equipment                   22 433          26 946           20 076 
                                       ----------------  --------------  --------------- 
 Intangible assets                               70 482          60 431           72 901 
                                       ----------------  --------------  --------------- 
 Investments in associates                          394           1 774              451 
                                       ----------------  --------------  --------------- 
 Other financial assets                           5 378           5 848            3 407 
                                       ----------------  --------------  --------------- 
 Right of use asset                                 307               -                - 
                                       ----------------  --------------  --------------- 
 Total non-current assets                        98 993          95 000           96 835 
                                       ----------------  --------------  --------------- 
 
 Current assets 
                                       ----------------  --------------  --------------- 
 Inventories                                      8 037           1 605            2 140 
                                       ----------------  --------------  --------------- 
 Deferred tax                                     3 951               -            3 223 
                                       ----------------  --------------  --------------- 
 Trade and other receivables                     17 469          11 948           13 083 
                                       ----------------  --------------  --------------- 
 Contract assets (i)                             14 427               -            5 409 
                                       ----------------  --------------  --------------- 
 Cash and cash equivalents                        9 767          10 247            9 948 
                                       ----------------  --------------  --------------- 
 Total current assets                            53 907          23 800           33 803 
                                       ----------------  --------------  --------------- 
 Total assets                                   152 899         118 800          130 638 
                                       ----------------  --------------  --------------- 
 
 Equity and liabilities 
                                       ----------------  --------------  --------------- 
 Share capital                                  114 628         111 723          114 585 
                                       ----------------  --------------  --------------- 
 Reserves                                        11 089          19 293           10 318 
                                       ----------------  --------------  --------------- 
 Accumulated loss                              (14 066)        (45 183)         (33 201) 
                                       ----------------  --------------  --------------- 
 Total equity before non-controlling 
  interest                                      111 650          85 833           91 702 
                                       ----------------  --------------  --------------- 
 Non-controlling interest                         2 626           2 211            2 479 
                                       ----------------  --------------  --------------- 
 Total equity                                   114 276          88 044           94 181 
                                       ----------------  --------------  --------------- 
 
 Non-current liabilities 
                                       ----------------  --------------  --------------- 
 Other financial liabilities                      9 575           7 197           10 429 
                                       ----------------  --------------  --------------- 
 Deferred tax liability                          10 312           8 700           10 945 
                                       ----------------  --------------  --------------- 
 Long term provisions                               544             531              694 
                                       ----------------  --------------  --------------- 
 Lease liability                                    260               -                - 
                                       ----------------  --------------  --------------- 
 Total non-current liabilities                   20 692          16 428           22 068 
                                       ----------------  --------------  --------------- 
 
 Current liabilities 
                                       ----------------  --------------  --------------- 
 Other financial liabilities                      1 062          12 327            1 461 
                                       ----------------  --------------  --------------- 
 Trade and other payables                        10 785           2 001           12 423 
                                       ----------------  --------------  --------------- 
 Current tax payable                              2 409               -                - 
                                       ----------------  --------------  --------------- 
 Contract liabilities (ii)                        3 676               -              505 
                                       ----------------  --------------  --------------- 
 Total current liabilities                       17 931          14 328           14 389 
                                       ----------------  --------------  --------------- 
 Total liabilities                               38 623          30 756           36 457 
                                       ----------------  --------------  --------------- 
 Total equity and liabilities                   152 899         118 800          130 638 
                                       ----------------  --------------  --------------- 
 

(i) Revenue recognised at the period end for inventories sold and delivered, but subject to final pricing are recognised as contract assets

(ii) Payments received in advance for concentrate that is only delivered and invoiced post the year end are recognised as contract liabilities

 
 Consolidated 
 Statement of 
 Changes in Equity 
 as at 31 
 December 2020 
-------------------  ---------  -------------------  ------------  -------------  ----------  ------------  --------------  --------------------------- 
 Figures in pound        Share    Merger      Share   Convertible       Currency       Total   Accumulated           Total    Non-controlling     Total 
 sterling              capital   reserve      based    instrument    translation    reserves          loss    attributable           interest    equity 
 (GBP '000)                                 payment       reserve        reserve                                 to parent 
                                            reserve                                                              of equity 
                                                                                                                   holders 
                     ---------  --------  ---------  ------------  -------------  ----------  ------------  --------------  -----------------  -------- 
 Balance at 1 July         105 
  2019                     820    23 184      2 520           203        (3 587)      22 319      (51 843)          76 297              2 393    78 690 
                     ---------  --------  ---------  ------------  -------------  ----------  ------------  --------------  -----------------  -------- 
 Profit for the 
  year                                                                                              18 320          18 320              (478)    17 843 
                     ---------  --------  ---------  ------------  -------------  ----------  ------------  --------------  -----------------  -------- 
 Other 
  comprehensive                                                                                                                                     (12 
  income                                                                (12 003)    (12 003)                      (12 003)                  -      003) 
                     ---------  --------  ---------  ------------  -------------  ----------  ------------  --------------  -----------------  -------- 
 Total 
  comprehensive 
  income 
  for the period                                                        (12 003)    (12 003)        18 320           6 318              (478)     5 840 
                     ---------  --------  ---------  ------------  -------------  ----------  ------------  --------------  -----------------  -------- 
 Issue of share 
  capital net 
  of costs               8 765                                                                                       8 765                        8 765 
                     ---------  --------  ---------  ------------  -------------  ----------  ------------  --------------  -----------------  -------- 
 Share warrants 
  issued                                        206                                      206                           206                  -       206 
                     ---------  --------  ---------  ------------  -------------  ----------  ------------  --------------  -----------------  -------- 
 Share options 
  expired/exercised                           (325)                                    (325)           321             (4)                  -       (4) 
                     ---------  --------  ---------  ------------  -------------  ----------  ------------  --------------  -----------------  -------- 
 Share options 
  granted                                       120                                      120                           120                          120 
                     ---------  --------  ---------  ------------  -------------  ----------  ------------  --------------  -----------------  -------- 
 Business 
  combinations                                                                                                                            564       564 
                     ---------  --------  ---------  ------------  -------------  ----------  ------------  --------------  -----------------  -------- 
 Total changes           8 765                    1                     (12 003)    (12 001)        18 641          15 405                 86    15 491 
                     ---------  --------  ---------  ------------  -------------  ----------  ------------  --------------  -----------------  -------- 
 Balance at 1 July         114 
  2020                     585    23 184      2 521           203       (15 590)      10 318      (33 201)          91 702              2 479    94 181 
                     ---------  --------  ---------  ------------  -------------  ----------  ------------  --------------  -----------------  -------- 
 Profit for the 
  year                                                                                              19 135          19 135                147    19 282 
                     ---------  --------  ---------  ------------  -------------  ----------  ------------  --------------  -----------------  -------- 
 Other 
  comprehensive 
  income                                                                     771         771                           771                          771 
                     ---------  --------  ---------  ------------  -------------  ----------  ------------  --------------  -----------------  -------- 
 Total 
  comprehensive 
  income 
  for the period                                                             771         771        19 135          19 906                147    20 053 
                     ---------  --------  ---------  ------------  -------------  ----------  ------------  --------------  -----------------  -------- 
 Issue of share 
  capital net 
  of costs                  43                                                                                          43                  -        43 
                     ---------  --------  ---------  ------------  -------------  ----------  ------------  --------------  -----------------  -------- 
 Total changes              43                                               771         771        19 135          19 949                147    20 095 
                     ---------  --------  ---------  ------------  -------------  ----------  ------------  --------------  -----------------  -------- 
 Balance at 31             114                                                                                                                      114 
  December 2020            628    23 184      2 520           203       (14 819)      11 089      (14 066)         111 650              2 626       276 
                     ---------  --------  ---------  ------------  -------------  ----------  ------------  --------------  -----------------  -------- 
 
 

Consolidated Statement of Cash flow for the six months ended 31 December 2020

 
                                                      Unaudited            Unaudited          Audited 
 --------------------------------------------- 
                                                       6 months             6 months        12 months 
                                                             to                   to               to 
 ---------------------------------------------   --------------  -------------------  --------------- 
                                                    31 December          31 December          30 June 
 ---------------------------------------------   --------------  -------------------  --------------- 
                                                           2020                 2019             2020 
  ---------------------------------------------  --------------  -------------------  --------------- 
                                                       GBP '000             GBP '000         GBP '000 
 ---------------------------------------------   --------------  -------------------  --------------- 
 Cash flows from operating activities 
                                                 --------------  -------------------  --------------- 
 Profit before taxation                                  24 440                6 563           13 733 
                                                 --------------  -------------------  --------------- 
 Adjustments for: 
                                                 --------------  -------------------  --------------- 
 Depreciation and amortisation                            3 243                2 382            6 502 
                                                 --------------  -------------------  --------------- 
 Gain on bargain purchase                                     -              (2 309)          (6 607) 
                                                 --------------  -------------------  --------------- 
 Fair value adjustments                                       -                    -            5 022 
                                                 --------------  -------------------  --------------- 
 Profit on sale of non-current assets                      (10)                    -                - 
                                                 --------------  -------------------  --------------- 
 Share based payments                                         -                    -              322 
                                                 --------------  -------------------  --------------- 
 Results of equity accounted investments                     57                  121            1 445 
                                                 --------------  -------------------  --------------- 
 Investment income                                         (73)                 (50)            (125) 
                                                 --------------  -------------------  --------------- 
 Finance 
  cost                                                    1 167                1 173            2 421 
----------------------------------------------   --------------  -------------------  --------------- 
 Working capital changes 
                                                 --------------  -------------------  --------------- 
          (Increase)/decrease in inventories            (5 507)                  440             (90) 
                                                 --------------  -------------------  --------------- 
  (Increase)/decrease in receivables 
   (i)                                                 (12 462)                  811          (6 787) 
 ----------------------------------------------  --------------  -------------------  --------------- 
  Increase/(decrease) in payables                           507              (3 113)            5 899 
 ----------------------------------------------  --------------  -------------------  --------------- 
 Cash generated from operations                          11 362                6 018           21 734 
                                                 --------------  -------------------  --------------- 
 Investment income                                           73                   50              125 
                                                 --------------  -------------------  --------------- 
 Finance 
  cost                                                  (1 167)              (1 173)          (2 421) 
----------------------------------------------   --------------  -------------------  --------------- 
 Tax paid                                               (3 580)                    -                - 
----------------------------------------------   --------------  -------------------  --------------- 
 Net cash from operating activities                       6 689                4 895           19 438 
                                                 --------------  -------------------  --------------- 
 Cash flows from investing activities 
                                                 --------------  -------------------  --------------- 
 Purchase of intangible assets                            (786)             (11 129)         (16 713) 
                                                 --------------  -------------------  --------------- 
 Business combinations                                        -              (5 295)          (8 008) 
                                                 --------------  -------------------  --------------- 
 Purchase of property, plant and 
  equipment                                             (4 799)              (1 101)          (1 390) 
                                                 --------------  -------------------  --------------- 
 Purchase of rights to copper tails                     (1 606)                    -                - 
                                                 --------------  -------------------  --------------- 
 Sale of property, plant and equipment                       10                    -              247 
                                                 --------------  -------------------  --------------- 
 Increase in other financial assets                        (35)                (173)                - 
                                                 --------------  -------------------  --------------- 
 Net cash used in investing activities                  (7 216)             (17 698)         (25 864) 
                                                 --------------  -------------------  --------------- 
 Cash flows from financing activities 
                                                 --------------  -------------------  --------------- 
 Proceeds from share issues net 
  of costs                                                   43                5 902            5 696 
                                                 --------------  -------------------  --------------- 
 Finance lease payments                                   (150)                    -                - 
                                                 --------------  -------------------  --------------- 
 Decrease in other financial liabilities                (1 253)              (2 154)          (4 168) 
                                                 --------------  -------------------  --------------- 
 Net cash generated from financing 
  activities                                            (1 360)                3 749            1 528 
                                                 --------------  -------------------  --------------- 
 Net decrease in cash and cash equivalents              (1 887)              (9 054)          (4 898) 
                                                 --------------  -------------------  --------------- 
 Cash and cash equivalents at beginning 
  of the period                                           9 948               18 865           18 865 
                                                 --------------  -------------------  --------------- 
 Effects of foreign exchange                              1 706                  436          (4 019) 
                                                 --------------  -------------------  --------------- 
 Cash and cash equivalents at the 
  end of the period                                       9 767               10 247            9 948 
                                                 --------------  -------------------  --------------- 
 

(ii) The significant increase in accounts receivable is mainly due to revenue recognised at the period end for inventories sold and delivered, but subject to final pricing and invoicing post the period end. These receivables are recognised as contract assets in the Statement of Financial Position.

NOTES TO THE UNAUDITED INTERIM RESULTS

   1.                               Basis of preparation 

The Group unaudited interim results for the 6 months ended 31 December 2020 have been prepared using the accounting policies applied by the company in its 30 June 2020 annual report which are in accordance with International Financial Reporting Standards (IFRS and IFRC interpretations) issued by the International Accounting Standards Board ("IASB") as adopted for use in the EU ("IFRS, including the SAICA financial reporting guides as issued by the Accounting Practices Committee, IAS 34 - Interim Financial Reporting, the Listings Requirements of the JSE Limited, the AIM rules of the London Stock Exchange and the Companies Act 2006 (UK)). This condensed consolidated interim financial report does not include all notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2020 and any public announcements by Jubilee Metals Group PLC. All monetary information is presented in the presentation currency of the Company being Great British Pound. The Group's principal accounting policies and assumptions have been applied consistently over the current and prior comparative financial period. The financial information for the year ended 30 June 2020 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 2020 are presented as follows:

 
                                           Unaudited         Unaudited          Audited 
                                            6 months          6 months        12 months 
                                                  to                to               to 
                                      --------------  ----------------  --------------- 
                                       31 December         31 December          30 June 
                                      --------------  ----------------  --------------- 
                                                2020              2019             2020 
                                      --------------  ----------------  --------------- 
 Earnings for the period GBP '000             19 135             6 660           18 320 
                                      --------------  ----------------  --------------- 
 Weighted average number of shares 
  in issue ('000)                          2 112 818         1 891 445        1 955 965 
                                      --------------  ----------------  --------------- 
 Diluted weighted average number 
  of shares in issue ('000)                2 161 356         1 891 445        1 975 264 
                                      --------------  ----------------  --------------- 
 Earnings per share (pence)                     0.91              0.35             0.94 
                                      --------------  ----------------  --------------- 
 Diluted earnings per share (pence)             0.89              0.35             0.93 
                                      --------------  ----------------  --------------- 
 Earnings per share (ZAR cents)                19.21              6.09            18.47 
                                      --------------  ----------------  --------------- 
 Diluted earnings per share (ZAR 
  cents)                                       18.78              6.09            18.29 
                                      --------------  ----------------  --------------- 
 

The Group reported a net asset value of 5.41 (2019: 4.36) pence per share (ZAR 108.2 (2019: ZAR 80.69 cents per share)) and a net tangible asset value per share of 2.07 (2019: 1.37) pence per share (ZAR 41.5 (2019: ZAR 25.31 cents per share)). The total shares in issue as at 31 December 2020 were 2 113 204 million (2019: 2 017 510 million).

   3.                               Dividends 

No dividends were declared during the period under review (2019: nil).

   4.                               Business segments 

The operations of the Group companies currently comprise of three reporting segments being:

the beneficiation of precious metals through operating processing plants for the recovery of metals and minerals, currently recovering PGMs, chrome, copper and cobalt targeting base metals including lead, zinc, vanadium from (mainly) the waste material produced as part of the mining cycle ("Metals beneficiation");

development of exploration assets and also including 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 ("Exploration and development"); and

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

The Group's operations span five countries, South Africa, Australia, Mauritius, Zambia and the United Kingdom. There is no difference between the accounting policies applied in the segment reporting and those applied in the Group financial statements. Management is currently reviewing the Group's segment reporting to better represent the operations and geographical segments of the Group.

Segment report for the 6 months ended 31 December 2020

 
 Figures in pound sterling                                   Exploration 
  ( GBP '000 )                    Metal beneficiation    and development   Corporate       Total 
 Total revenues                                53 438                  -           -      53 438 
                                 --------------------  -----------------  ----------  ---------- 
 Cost of sales                               (22 492)                  -           -    (22 492) 
                                 --------------------  -----------------  ----------  ---------- 
 Forex losses                                      45                  -       (269)       (223) 
                                 --------------------  -----------------  ----------  ---------- 
 Profit/(loss) before 
  taxation                                     25 236                (8)       (789)      24 440 
                                 --------------------  -----------------  ----------  ---------- 
 Taxation                                     (5 181)                  -           -     (5 181) 
                                 --------------------  -----------------  ----------  ---------- 
 Profit/(loss) after 
  taxation                                     20 056                (8)       (789)      19 259 
                                 --------------------  -----------------  ----------  ---------- 
 Interest received                                151                  -          14         165 
                                 --------------------  -----------------  ----------  ---------- 
 Interest paid                                (1 167)                  -           -     (1 167) 
                                 --------------------  -----------------  ----------  ---------- 
 Depreciation and amortisation                (3 237)                  -           -     (3 237) 
                                 --------------------  -----------------  ----------  ---------- 
 Total assets                                 112 636             38 242       2 020     152 899 
                                 --------------------  -----------------  ----------  ---------- 
 Total liabilities                           (33 462)            (4 596)       (565)    (38 623) 
                                 --------------------  -----------------  ----------  ---------- 
 

Segment report for the 6 months ended 31 December 2019

 
 Figures in pound sterling                                  Business   Exploration 
  ( GBP '000 )                    Metal beneficiation    development    and mining   Corporate      Total 
 Total revenues                                25 403              -             -           -     25 403 
                                 --------------------  -------------  ------------  ----------  --------- 
 Cost of sales                               (15 554)              -             -           -   (15 554) 
                                 --------------------  -------------  ------------  ----------  --------- 
 Forex losses                                   (417)              -             -       (181)      (598) 
                                 --------------------  -------------  ------------  ----------  --------- 
 Profit/(loss) before 
  taxation                                      7 339              -             -       (776)      6 563 
                                 --------------------  -------------  ------------  ----------  --------- 
 Taxation                                           -              -             -           -          - 
                                 --------------------  -------------  ------------  ----------  --------- 
 Profit/(loss) after 
  taxation                                      7 339              -             -       (776)      6 563 
                                 --------------------  -------------  ------------  ----------  --------- 
 Interest received                                 39              -             -          11         50 
                                 --------------------  -------------  ------------  ----------  --------- 
 Interest paid                                (1 245)              -             -        (79)    (1 324) 
                                 --------------------  -------------  ------------  ----------  --------- 
 Depreciation and amortisation                (2 382)              -             -           -    (2 382) 
                                 --------------------  -------------  ------------  ----------  --------- 
 Total assets                                  73 098         10 424        26 925       8 354    118 800 
                                 --------------------  -------------  ------------  ----------  --------- 
 Total liabilities                           (23 675)        (3 127)       (1 664)     (2 290)   (30 756) 
                                 --------------------  -------------  ------------  ----------  --------- 
 

Segment report for the year ended 30 June 2020

 
 Figures in pound sterling                                              Business   Exploration 
  ( GBP '000 )                    Metal beneficiation                development    and mining   Corporate      Total 
 Total revenues                                54 775                          -             -           -     54 775 
                                 --------------------  -------------------------  ------------  ----------  --------- 
 Cost of sales                               (29 683)                        (4)             -           -   (29 687) 
                                 --------------------  -------------------------  ------------  ----------  --------- 
 Forex profits/(losses)                           724                          -             -        (65)        658 
                                 --------------------  -------------------------  ------------  ----------  --------- 
 Profit/(loss) before 
  taxation                                     20 107                       (10)           (1)     (6 364)     13 733 
                                 --------------------  -------------------------  ------------  ----------  --------- 
 Taxation                                       3 542                          -             -         954      4 496 
                                 --------------------  -------------------------  ------------  ----------  --------- 
 Profit/(loss) after 
  taxation                                     23 649                       (10)           (1)     (5 409)     18 229 
                                 --------------------  -------------------------  ------------  ----------  --------- 
 Interest received                                101                          -             -          24        125 
                                 --------------------  -------------------------  ------------  ----------  --------- 
 Interest paid                                (2 246)                          -             -       (175)    (2 421) 
                                 --------------------  -------------------------  ------------  ----------  --------- 
 Depreciation and amortisation                (6 502)                          -             -           -    (6 502) 
                                 --------------------  -------------------------  ------------  ----------  --------- 
 Total assets                                  90 719                      3 159        33 508       3 252    130 638 
                                 --------------------  -------------------------  ------------  ----------  --------- 
 Total liabilities                           (32 402)                          -       (3 601)       (453)   (36 457) 
                                 --------------------  -------------------------  ------------  ----------  --------- 
 
   5.                               Share Capital and warrants 

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

 
                                          Unaudited         Unaudited          Audited 
                                           6 months          6 months        12 months 
                                   ----------------  ----------------  --------------- 
                                           ended 31          ended 31         ended 30 
                                           December          December             June 
                                   ----------------  ----------------  --------------- 
                                               2020              2019             2020 
                                   ----------------  ----------------  --------------- 
                                            GBP'000           GBP'000          GBP'000 
                                   ----------------  ----------------  --------------- 
 Ordinary shares of 1 pence each             21 132            20 175           21 125 
                                   ----------------  ----------------  --------------- 
 Share premium                               93 496            91 547           93 460 
                                   ----------------  ----------------  --------------- 
 Total issued capital                       114 628           111 723          114 585 
                                   ----------------  ----------------  --------------- 
 

During the period under review the Company issued the following new Jubilee shares:

 
                                                 Issue price 
                               Number of shares      (pence)             Purpose 
Opening balance                   2 112 509 573 
                            -------------------  -----------  ------------------ 
07 Dec 2020                             694 445         6.12  Warrants exercised 
                            -------------------  -----------  ------------------ 
Balance at the end of the 
 period                           2 113 204 018 
                            -------------------  -----------  ------------------ 
 

Post the period under review the Company issued the following new Jubilee shares:

 
                                                    Issue price 
                                  Number of shares      (pence)             Purpose 
Opening balance                      2 113 204 018 
                              --------------------  ------------------------------- 
12 Jan 2021                             19 417 476         3.38  Warrants exercised 
                              --------------------  -----------  ------------------ 
13 Jan 2021                                610 445         4.00  Warrants exercised 
                              --------------------  -----------  ------------------ 
13 Jan 2021                              1 473 055         3.38  Warrants exercised 
                              --------------------  -----------  ------------------ 
                                                                      Settlement of 
21 Jan 2021                             80 728 619         2.81                debt 
                              --------------------  -----------  ------------------ 
                                                                      Settlement of 
21 Jan 2021                             19 154 466         3.25                debt 
                              --------------------  -----------  ------------------ 
03 Feb 2021                              4 000 000         3.40  Warrants exercised 
                              --------------------  -----------  ------------------ 
08 Feb 2021                              3 000 000         6.00   Options exercised 
                              --------------------  -----------  ------------------ 
18 Feb 2021                                 80 000         6.12  Warrants exercised 
                              --------------------  -----------  ------------------ 
09 Mar 2021                                200 000         6.12  Warrants exercised 
                              --------------------  -----------  ------------------ 
11 Mar 2021                                502 500         6.12  Warrants exercised 
                              --------------------  -----------  ------------------ 
Balance at the date of this 
 announcement                        2 242 370 579 
                              --------------------  ------------------------------- 
 

Warrants

At 31 December 2020 the Company had the following warrants outstanding:

 
                                                                                  Share price 
                                               Subscription                          at issue 
         Number of warrants   Issue date      price (pence)    Expiry date       date (pence) 
                 63 800 833   2018/01/19               6.12     2023/01/19               3.55 
                             -----------  -----------------  -------------  ----------------- 
                 12 944 984   2018/12/28               3.38     2023/01/19               2.40 
                             -----------  -----------------  -------------  ----------------- 
                  7 818 750   2019/11/19               4.00     2022/11/19               4.13 
                             -----------  -----------------  -------------  ----------------- 
                    750 000   2020/06/22               3.40     2023/06/22               3.90 
                             -----------  -----------------  -------------  ----------------- 
                 85 314 567 
                             -----------  -----------------  -------------  ----------------- 
 

At 30 June 2020 the Company had the following warrants outstanding:

 
                                             Subscription                       Share price 
                                                    price                          at issue 
         Number of warrants   Issue date          (pence)    Expiry date       date (pence) 
                 65 277 778   2018/01/19             6.12     2023/01/19               3.55 
                             -----------  ---------------  -------------  ----------------- 
                 32 362 460   2018/12/28             3.38     2023/01/19               2.40 
                             -----------  ---------------  -------------  ----------------- 
                  1 473 055   2019/03/20             3.38     2021/03/20               2.45 
                             -----------  ---------------  -------------  ----------------- 
                  8 429 195   2019/11/19             4.00     2022/11/19               4.13 
                             -----------  ---------------  -------------  ----------------- 
                  4 750 000   2020/06/22             3.40     2023/06/22               3.90 
                             -----------  ---------------  -------------  ----------------- 
                112 292 488 
                             -----------  ---------------  -------------  ----------------- 
 

At the date of releasing these results the Company had the following warrants outstanding:

 
                                                                                   Share price 
                                              Subscription                           at issue 
         Number of warrants  Issue date       price (pence)      Expiry date       date (pence) 
                 63 800 833   2018/01/19               6.12       2023/01/19               3.55 
                             -----------  -----------------  ---------------  ----------------- 
                 12 944 984   2018/12/28               3.38       2023/01/19               2.40 
                             -----------  -----------------  ---------------  ----------------- 
                  7 818 750   2019/11/19               4.00       2022/11/19               4.13 
                             -----------  -----------------  ---------------  ----------------- 
                    750 000   2020/06/22               3.40       2023/06/22               3.90 
                             -----------  -----------------  ---------------  ----------------- 
                  4 036 431   2021/01/21              13.00       2024/01/21              13.00 
                             -----------  -----------------  ---------------  ----------------- 
                 89 350 998 
                             -----------  -----------------  ---------------  ----------------- 
 
   6.                               Going concern 

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

   7.                               Unaudited results 

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

   8.                               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

The financial information in this announcement is unaudited.

United Kingdom

25 March 2020

**S**

   For further information visit www.jubileemetalsgroup.com   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 - Sasfin Capital (a member of the Sasfin group)

Sharon Owens

Tel +27 (0) 11 809 7500

PR & IR Adviser - St Brides Partners Limited

Catherine Leftley/Juliet Earl

Tel +44 (0) 20 7236 1177

Annexure 1

Headline earnings per share ("HEPS") is calculated using the weighted average number of shares in issue during the period under review and is based on earnings attributable to ordinary shareholders, after excluding those items as required by Circular 1/2019 issued by the South African Institute of Chartered Accountants (SAICA). In compliance with paragraph 18.19 (c) of the JSE Listings Requirements the table below represents the Group's Headline earnings and a reconciliation of the Group's loss reported and headline earnings used in the calculation of headline earnings per share:

 
 Reconciliation of headline earnings per 
  share                                           Unaudited          Unaudited     Audited 
                                                   6 months           6 months   12 months 
                                                         to                 to       to 
                                                -----------  -----------------  ---------- 
                                                     Dec-20             Dec-19      Jun-20 
                                                -----------  -----------------  ---------- 
                                                   GBP '000           GBP '000    GBP '000 
                                                -----------  -----------------  ---------- 
 
 Profit attributable to ordinary equity 
  holders of the parent                              19 135              6 660      18 320 
                                                -----------  -----------------  ---------- 
 Adjusted for: 
                                                -----------  -----------------  ---------- 
 Gain on bargain purchase                                 -            (2 309)     (6 607) 
                                                -----------  -----------------  ---------- 
 De-recognition of other financial assets 
  through profit or loss                                  -                  -       5 022 
                                                -----------  -----------------  ---------- 
 Share of impairment loss of equity accounted 
  associate                                               -                  -       1 964 
                                                -----------  -----------------  ---------- 
 Total tax effects of adjustments                         -                  -     (1 544) 
                                                -----------  -----------------  ---------- 
 Headline earnings                                   19 135              4 350      17 155 
                                                -----------  -----------------  ---------- 
 Weighted average number of shares in                 2 112              1 891       1 955 
  issue ('000)                                          818                445         965 
                                                -----------  -----------------  ---------- 
 Diluted weighted average number of shares            2 161              1 909       1 975 
  in issue ('000)                                       356                126         264 
                                                -----------  -----------------  ---------- 
 Headline earnings per share (pence)                   0.91               0.23        0.88 
                                                -----------  -----------------  ---------- 
 Headline earnings per share (ZAR cents)              19.21               3.98       17.30 
                                                -----------  -----------------  ---------- 
 Diluted headline earnings per share (pence)           0.89               0.23        0.87 
                                                -----------  -----------------  ---------- 
 Diluted headline earnings per share (ZAR 
  cents)                                              18.78               3.98       17.13 
                                                -----------  -----------------  ---------- 
 Average conversion rate used for the 
  period under review GBP :ZAR                       0.0471             0.0545      0.0507 
                                                -----------  -----------------  ---------- 
 

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 JIMLTMTJTBMB

(END) Dow Jones Newswires

March 25, 2021 03:00 ET (07:00 GMT)

Jubilee Metals (LSE:JLP)
Gráfica de Acción Histórica
De Dic 2021 a Ene 2022 Haga Click aquí para más Gráficas Jubilee Metals.
Jubilee Metals (LSE:JLP)
Gráfica de Acción Histórica
De Ene 2021 a Ene 2022 Haga Click aquí para más Gráficas Jubilee Metals.