Audited Preliminary Results

RNS Number : 4336E

Jubilee Platinum PLC

26 September 2008

 



AIM: JLP

JSE: JBL

Registration number: 4459850

ISIN: GB0031852162

JUBILEE PLATINUM PLC

('Jubilee' or 'the Company')

AUDITED PRELIMINARY results FOR THE YEAR ENDED 30 June 2008

Highlights 

• Tjate accelerates feasibility study with eight drilling machines now operating

• Thicker zone (1.8 metres) identified at Tjate in some 72% of the current area modeled 

• Platinum group metals discovered at Ambodilafa, Madagascar

• Company has sufficient funds to complete its feasibility study 

• The Company accelerated the Tjate drilling with eight rigs on site. In the year under review, the metres drilled increased by a factor of some 450% compared with the previous twelve months

• Tjate feasibility study commenced in January 2008

• Preliminary structural modeling of initial borehole data available suggests the occurrence, in the area modeled, of broadly two zones of different Merensky Reef thicknesses: a wide type zone    (1.8 metres thick) and a thinner type zone (1.0 metres thick)

• The wide type Merensky Reef zone represents some 72% of tonnage and 78% of 4E (platinum, palladium, rhodium and gold) in the area identified  

• Borehole ALF004 on the Ambodilafa project in Madagascar intersected 3.99g/t 4E over 0.89 metres 

• Drilling commenced on the Bebasy gold project in the southwest of the Ambodilafa license area

Chairman's Statement

Dear Shareholder,

The Company has experienced a very progressive year in all areas of its operations and our flagship Tjate project continues to progress favourably to feasibility study.

Section 11 approval was received from the Department of Minerals and Energy and the South African Reserve Bank, allowing the Company to acquire a direct and indirect interest in the Tjate project of 63 %. These approvals represent a significant milestone for Jubilee and add considerable value to its shareholders.

The previously reported scoping study gave the Board sufficient confidence for a 'stand alone' mine and in late October 2007 the Board resolved to raise some £11.2 million to carry out a feasibility study. The financing was completed on 7 November 2007, by way of placing 13.2 million ordinary shares of  1 pence each priced at 89 pence on the Alternative Investment Market (AIM) of the London Stock Exchange and ZAR12.5 on the Johannesburg Stock Exchange (JSE).

The Mineral Corporation was appointed as the independent Competent Person to manage the feasibility study. The Mineral Corporation is one of South Africa's leading independent mining advisory and consulting groups and has proven platinum evaluation and mine design expertise. The number of drilling machines in use at the site has been increased during the period from three to eight. The results for the year under review will be reported in detail in the operations report. The general technical/financial trend is positive with some potential key operating benefits emerging.  

Drilling in Madagascar produced positive and encouraging results over a diverse area with significant nickel/copper mineralisation being intersected at both Londokomanana and Ambodilafa. Drilling results from the eastern side of the Ambodilafa intrusion (drill hole ALF4) gave a 0.9 metre intersection of 3.99 g/t platinum, palladium, rhodium and gold ('4E'), which is very encouraging and drilling is currently in progress to further test this area.

At Ambodilafa, it was considered that a regional approach of flying an aeromagnetic survey would be beneficial and a 'down the hole' geophysical survey would assist in identifying sulphide mineralisation in proximity to recent drilling programmes. Both these geophysical activities have been completed and the results are being analysed.

The drilling programme currently underway is targeted towards nickel/copper sulphide mineralisation at Londokomanana and Ambodilafa (West). Drilling at Ambodilafa (East) is targeting a 'layered complex' for potential 4E mineralisation similar to ALF 4.

The Company decided to drill test the historically recorded Bebasy gold project which is situated within the Ambodilafa license area. The area is known to contain gold mineralisation as it has been a location for artisanal gold mining. The drilling programme is designed to test the potential for a large bulk mining target.

In general all our activities in Madagascar are progressing favourably and our partners continue to be supportive.

The market capitalisation of the Company has been significantly eroded during the period despite the excellent results received at Tjate and favourable progress in Madagascar. The global credit crisis has impacted all market sectors and the junior resource sector has seen value depletion of up to 70 %. The Platinum juniors have all lost value, generally in inverse proportion to their technical and financial progress. The arena for Platinum juniors is very small and most have maturing projects in a market, which has been in under supply for 15 years. As a result of this downturn, market capitalisations throughout the sector are a fraction of what they were during the last quarter of 2007.

The ongoing media debate about switching from resource stocks to financial stocks continues, notwithstanding almost daily reports on write-downs and liquidity problems in the financial sector. Conversely, the resource sector is reporting record quality earnings, which can be reliably projected forward against long term contracts.

The Board are convinced that the fundamentals that initiated the revived commodity demand are still in place and that company values will be recognised once the credit crisis has worked itself through and investor confidence has been restored.

During the period under review, the loss for the year after taxation was £4,076,390 (2007 £1,798,378), and a total of £835,114 (2007 £573,911) was capitalised on exploration projects during the year. The loss per ordinary share increased to 3.45 pence in the current year compared to 2.13 pence per ordinary share in 2007. The current year's loss has increased due to the write-off of £1,509,623 receivable from TransAsia Minerals Ltd following the joint decision by the Company and its co-shareholder not to pursue the Itsindro project and a charge of £1,460,886 included in the Income Statement relating to consultancy fees associated with the ongoing acquisition of additional shares in the Company's flagship Tjate project. A share-based payment charge of £476,383 is included in the Income Statement in line with the requirements of IFRS2. The loss for the current year also includes a charge of £78,603 relating to impairment of intangible assets following a review of the Group's intangible asset base in accordance with accounting policies.

The Company has adequate cash to pursue its current feasibility study mission and management is committed to realising value for industry recognition and shareholders' benefit.

Finally, I would like to thank my fellow directors, management, staff and consultants for their efforts during a very difficult period for junior resource companies.

I look forward to reporting more positive progress in the coming year with value recognition being our prime objective.

MALCOLM BURNE

CHAIRMAN

JUBILEE PLATINUM PLC

AUDITED CONSOLIDATED INCOME STATEMENT

FOR THE YEAR ENDED 30 JUNE 2008

		Year ended 30 June 2008	Year ended 30 June 2007
		£	£
Administrative expenses		(4,796,595)	(1,967,994)
Loss from operations		(4,796,595)	(1,967,994)
Finance income		839,750	347,703
Finance costs		(1,330)	(144,793)
Share of operating loss in associate		(118,215)	(33,294)
Loss before income tax expense		(4,076,390)	(1,798,378)
Income tax expense		-	-
Loss for the period after income tax expense		(4,076,390)	(1,798,378)
Minority interests:
Equity		744,740	101,015
Loss attributable to members of Jubilee Platinum plc		(3,331,650)	(1,697,363)
Basic and diluted loss per share (pence)		(3.45)	(2.13)

  JUBILEE PLATINUM PLC

AUDITED CONSOLIDATED BALANCE SHEET

AS AT 30 JUNE 2008

		Year ended 30 June 2008	Year ended 30 June 2007
		£	£
Assets
Non-current assets
Intangible assets		6,473,781	5,343,942
Property, plant and equipment		95,762	56,251
Investments in associates		7,882,758	2,392,323
Other receivables		1,310,742	1,998,790
Total non-current assets		15,763,043	9,791,306
Current assets
Trade and other receivables		5,314,524	3,710,486
Cash and cash equivalents		9,234,217	7,495,213
Other receivables		1,310,741	1,998,791
Total current assets		15,859,482	13,204,490
Total assets		31,622,525	22,995,796
Current liabilities
Trade and other payables		(377,925)	(3,339,140)
Total current liabilities		(377,925)	(3,339,140)
Total liabilities		(377,925)	(3,339,140)
Net current assets		15,481,557	9,865,350
Net assets		31,244,600	19,656,656
Equity
Called up share capital		1,049,966	858,174
Share premium account		33,337,634	18,343,249
Share based payment reserve		1,178,836	702,453
Currency translation reserve		(812,540)	(818,954)
Other reserves		1,034,752	1,761,448
Retained earnings		(6,373,314)	(3,768,360)
Equity attributable to equity holders of the parent		29,415,334	17,078,010
Equity interests of minorities		1,829,266	2,578,646
Total equity		31,244,600	19,656,656

  JUBILEE PLATINUM PLC

AUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 JUNE 2008

	Share Capital	Share Premium	Share based payment reserve	Other reserves	Retained earnings	Currency translation reserve	Total
	£	£	£	£	£	£	£
Balance at 30 June 2006	786,489	11,859,073	249,667	-	(2,070,997)	(537,568)	10,286,664
Issue of share capital	71,685	-	-	-	-	-	71,685
Premium on issue of share capital	-	6,619,065	-	-	-	-	6,619,065
Cost on issue of shares	-	(134,889)	-	-	-	-	(134,889)
Share-based payment charge	-	-	452,786	-	-	-	452,786
Other reserves	-	-	-	1,761,448	-	-	1,761,448
Net loss for the year	-	-	-	-	(1,697,363)	-	(1,697,363)
Currency translation adjustments	-	-	-	-	-	(281,386)	(281,386)
Balance at 30 June 2007	858,174	18,343,249	702,453	1,761,448	(3,768,360)	(818,954)	17,078,010
Issue of share capital	191,792	-	-	-	-	-	191,792
Premium on issue of share capital	-	15,711,441	-	-	-	-	15,711,441
Cost on issue of shares	-	(717,056)	-	-	-	-	(717,056)
Share-based payment charge	-	-	476,383	-	-	-	476,383
Other reserves	-	-	-	(726,696)	726,696	-	-
Net loss for the year	-	-	-	-	(3,331,650)	-	(3,331,650)
Currency translation adjustments	-	-	-	-	-	6,414	6,414
Balance at 30 June 2008	1,049,966	33,337,634	1,178,836	1,034,752	(6,373,314)	(812,540)	29,415,334

  JUBILEE PLATINUM PLC

AUDITED CONSOLIDATED CASH FLOW STATEMENT

AS AT 30 JUNE 2008

	Notes	Year ended 30 June 2008	Year ended 30 June 2007
		£	£
Cash flow from operations	5	(9,442,992)	(1,276,438)
Interest receivable		839,750	271,113
Interest payable		(1,330)	(144,955)
Net cash outflow from operating activities			(1,150,280)
Cash flows utilised by investing activities
Increase in loans and investments		(11,456)	(2,863,960)
Purchase of exploration assets		(835,114)	(573,911)
Purchase of property, plant and equipment		(80,741)	(35,196)
Proceeds from sale of property, plant and equipment		11,553	-
Net cash outflow from investing activities			(3,473,067)
Cash flow from financing activities
Proceeds from issue of new borrowings		-	2,026,755
Issue of shares and warrants		11,153,694	5,423,606
Net cash inflow from financing activities		11,153,694	7,450,361
Effects of foreign exchange on cash and cash equivalents		105,640	-
Net increase in cash and cash equivalents			2,827,014
Cash and cash equivalents at the beginning of the year		7,495,213	4,668,199
Cash and cash equivalents at the end of the year		9,234,217	7,495,213

  JUBILEE PLATINUM PLC

NOTES TO THE GROUP PRELIMINARY RESULTS 

FOR THE YEAR ENDED 30 JUNE 2008

1.  Basis of preparation and accounting policies

The financial information for the year ended 30 June 2008 has been prepared on the historical cost basis and is in accordance with EU Endorsed International Financial Reporting Standards (IFRS), IFRIC Interpretations and the Companies Act 1985 applicable to companies reporting under IFRS. The accounting policies have been applied consistently throughout the Group and are consistent with those for the financial year ended 30 June 2007. 

2.  Balance sheet

The value of the Group's exploration and evaluation intangible assets at 30 June 2008 was 3.22 pence per share (2007: 2.49 pence per share), calculated on the weighted average number of shares of 98,934,900 (2007: 82,305,193)

3.  Income statement

The headline loss for the financial year 2008 was 3.45 pence (2007: 2.13 pence) calculated on a weighted average number of shares of 98,934,900 (2007: 82,305,193).

There were no dividends paid or declared

4.  Segment reporting

Business segments

The Group's only business segment is the exploration for and development of Platinum Group Metals (PGMs) and associated metals.

Geographical segments

An analysis of loss on ordinary activities before taxation, net assets and exploration expenditure by geographical area is given below.

	2008	2007
	£	£
Loss on ordinary activities (excluding associates)
United Kingdom	(2,029,740)	(682,210)
South Africa	(634,172)	(805,624)
Madagascar	224,338	(271,653)
Mauritius	(1,518,601)	(5,597)
	(3,958,175)	(1,765,084)
Loss on ordinary activities in associates
South Africa	(118,215)	(33,294)
	(118,215)	(33,294)
Total loss before minority interests	(4,076,390)	(1,798,378)
	2008	2007
	£	£
Assets and liabilities by location (excluding associates)
Assets
United Kingdom	12,269,726	11,476,757
South Africa	5,579,554	3,025,885
Madagascar	3,266,922	2,101,371
Mauritius	2,623,566	3,999,460
	23,739,768	20,603,473
Liabilities
United Kingdom	325,656	1,280,225
South Africa	-	2,030,455
Madagascar	49,677	25,882
Mauritius	2,593	2,578
	377,926	3,339,140
Net assets in associates
South Africa	7,882,758	2,392,323
	7,882,758	2,392,323
Total net assets	31,244,600	19,656,656
Exploration expenditure
South Africa	642	-
Madagascar	834,472	573,911
Total exploration expenditure	835,114	573,911

5.  Cash flow statement

Reconciliation of net loss for the year to cash utilized by operations

	2008	2007
	£	£
Cash flow from operations
Loss for the year	(4,796,595)	(1,967,994)
Depreciation	31,879	24,619
Loss on sale of property, plant and equipment	1,484	-
Amounts written off exploration expenditure	78,603	220,313
Increase in receivables	(2,091,547)	-
Decrease in payables	(2,961,215)	(6,162)
Foreign exchange on retranslation of overseas subsidiaries	(181,984)	-
Share based payments charge	476,383	452,786
Net cash outflow from operating activities

6.  Capital and reserves

Shares issued

During the year ended 30 June 2008 19,179,214 (2007: 7,168,434) ordinary shares were issued for a cash consideration of £11,153,694 (2007: 5,185,673).

Share options and warrants

      The Company issued the following share options:

Date granted         Period Exercisable    Exercise price        Number of

                                                                  per share               options

11 January 2008       4 years                                  81p                200,000

12 March 2008         2 years                                  70p                400,000

30 April 2008          10 years                                  85p                 50,000

Translation reserve

The translation reserve comprises all foreign exchange differences arising from the translation of the financial statements of foreign operations that do not have a UK£ functional currency. Exchange differences arising are classified as equity and transferred to the Group's translation reserve.  

7.  Financial statements

These preliminary financial statements are extracts from the company's audited financial statements to 30 June 2008, which have been audited by our auditors Saffery Champress, and a copy of their unqualified audit report is available for inspection at the registered office of the company. Audited financial statements compliant with the Companies Act and International Financial Reporting Standards ('IFRS') will be posted to shareholders on Monday 29 September 2008. The annual general meeting of shareholders will be held on 26 November 2008.

8.  Directorate

There have been no changes in the board of directors during the year ended 30 June 2008.

Signed on behalf of the board

Colin Bird

Chief of Executive Officer

26 September 2008

 

END

 

 

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