Final Results and Notice of AGM

Jubilee Metals Group PLC

11 October 2023

 

Jubilee Metals Group PLC

Registration number (4459850)

AltX share code: JBL

AIM share code: JLP

ISIN: GB0031852162

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

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

Audited Results for the year ended 30 June 2023

Notice of Annual General Meeting

Integrated Annual Report

Jubilee Metals Group PLC (AIM: JLP/Altx: JBL), a diversified leader in metals processing with operations in Africa, is pleased to announce its audited results for the year ended 30 June 2023 ("FY2023"). Today, Jubilee is also publishing, its Integrated Annual Report.

Jubilee has delivered a strong operational performance which has assisted in buffering some of the challenging market conditions, brought on by a fast-depreciating PGM basket price and infrastructural challenges in both operating jurisdictions. The operational performance served to demonstrate Jubilee's ability to challenge industry norms by breaking through technical barriers and implementing solutions that extract value from materials and ore sources that were previously regarded by others as waste or too complex.

Key milestones and achievements for the year

·        Record production figures across our PGM, chrome and copper operations with 42 433 PGM oz (exceeding guidance and up 2% year-on-year) 1 289 890 chrome concentrate tonnes (up 7%) and 2 923 copper tonnes (up 29%).

·        Successfully implemented an investment programme of £36 million (FY2022: £58 million) equivalent to US$44 million (FY2022: US$70 million) to diversify and expand our operations in chrome, PGM, copper and cobalt.

·        Commissioned a state-of-the-art expanded PGM processing facility, designed to process PGM tailings and ores, previously regarded as waste. This versatile facility boasts an annual production capacity of 44 000 oz of PGMs.

·        Further expanded the chrome operational footprint through the implementation of a long-term chrome ROM offtake agreement offering increased chrome margins capable of offsetting the lower PGM margins.

·        In South Africa, to address the infrastructure challenges, we initiated the installation of backup power units at our chrome facilities and managed stock levels to ensure continuous operations.

·        In Zambia, we achieved significant advancements by formulating breakthrough process flow sheets for the treatment of mixed and transitional copper reefs as part of our 14 000 tonnes per annum Southern copper strategy. These breakthroughs form part of the process flowsheet upgrade at Roan currently underway.

·        The upgraded flowsheet offers significant lower capital expansion opportunities within Zambia.

·        The technical team is in the process of innovating a copper waste leach circuit for the treatment of copper and cobalt tailings, as part of our Northern Refining copper strategy. The development phase has commenced with upscaled continuous pilot runs to confirm the encouraging results achieved to date.   

·        Effectively addressed the infrastructure issues associated with the new Roan Concentrator. A modern water infrastructure system was completed in December 2022, followed by an enhanced power infrastructure finalised in February 2023.

Financial highlights

·        Revenue from operations increased by 1% to £142 million (FY2022: £140 million) equating to US$171 million (FY2022: US$186 million) with growth in US$ chrome revenue predominately offsetting the market driven decrease in PGM revenue.

·        Gross profit was lower at £31 million (FY2022: £45 million) equivalent to US$38 million (FY2022: US$60 million) impacted mainly by:

o   Lower average PGM basket prices year-on-year decreasing by 22% to US$1 262 (FY2022: US$1 615)

o   Increase of 11% in US$ operating cost per PGM oz driven mainly by the increase in power and logistic costs

o   Initial decrease during H1 FY2023 in chrome margins mainly due to power constraints which was addressed through the roll-out of back-up power systems

o   Decrease in copper revenue per tonne of 19% to US$7 451 (FY2022: US$9 210)

o   Continued expected growth of the chrome operations offering the potential to offset lower PGM margins

·        EBITDA decreased to £24.8 million (FY2022: £36.8million) or US$29.8 million (FY2022: US$48.9 million).

·        Cash from operating activities was supported by increased contribution from operational expansions and remained strong at £31 million (FY2022: £35 million) equivalent to US$37 million (FY2022:US$42 million).

·        The Group's earnings per share decreased by 35% to 0.48 pence (FY2022: 0.73 pence), as a result of the weighted average number of shares increasing by 9% to 2 687.7 million shares (FY2022: 2 455.5 million shares) predominately due to the exercise of warrants during the financial year and earnings attributable to owners of the parent decreasing by 28% to £12.9 million (FY2022: £18.0 million) or US$15.5 million (FY2022: US$24.0million).

·        Group cash and cash equivalents at 30 June 2023 of £12.5million (FY2022: £16 million) or US$15.9 million (FY2022 US$19.5 million).

·        A robust net cash position supporting the Group's current assets to cover total liabilities by 103% (FY2022: 131%).

·        The Group's equity reduced marginally to £205 million (FY2022: £207 million), predominately due to the profit after taxation off-set by the movement in the foreign currency translation reserve as a result of the weakening ZAR and ZMW against the pound during the period under review. The Group continues to maintain a strong equity ratio of 68% (FY2022: 71%).

Project and operational highlights

South Africa

·        In FY2023, our South African operations achieved 177 days without any Lost Time Injuries (LTIs), compared to 162 days in FY2022. This translates to a consistent LTIFR rate of 1.5, mirroring our previous year's performance.

o  The company was saddened by the loss of life suffered by a service provider to our operations earlier in the year.

·        PGM oz sold increased by 2% to 42 433 oz (FY2022: 41 586 oz), exceeding full year guidance of 38 000 oz.

·        Chrome tonnes sold increased by 4% to 1 275 287 tonnes (FY2022: 1 222 452 tonnes) exceeding full year guidance of 1 200 000 tonnes.

·        Net cost per PGM oz net of chrome credits of US$508 (FY2022:US$408), remaining firmly as one of the lowest cost producers of PGMs.

·        South African operations have reached stable production meeting the market guidance and offering significant growth opportunities.

·        On 6 June 2023, we proudly announced a significant, long-term processing partnership. This collaboration increases our chrome ore processing capacity by 360 000 tonnes annually offering the potential to produce an additional 160 000 tonnes of chrome concentrate per annum at improved margins together with an associated feed to our PGM operations of 10 000 PGM ounces. The move into higher margin chrome offtakes offers Jubilee:

o  The opportunity to obtain greater exposure to the chrome price and achieve higher margins compared with the existing fixed price chrome tolling agreements;

o  The option to further expand the partnership to expand the processing capacity to 720 000 tonnes per annum of chrome ore;

o  The opportunity of additional expansion opportunities leveraging Jubilee's proven chrome efficiency capability, setting a target annualised chrome concentrate production rate of 2 million tonnes (60% expansion) over the next two years further strengthening Jubilee's position as one of the largest chrome producers globally.

Zambia

·        Zambian operations sustained a robust safety performance, achieving 122 LTI free days (FY2022: 185 LTI free days), and commensurately realising a reduction in the LTIFR to 2.4 (FY2022: 2.9).

·        Successfully mitigated power and water disruptions by completing a new, privately-owned water infrastructure in December 2022 and augmenting the power infrastructure in February 2023.

·        Copper production improved by 29% to 2 923 tonnes (FY2022: 2 269 tonnes), marginally below the Group's revised guidance of 3 000 tonnes primarily due to previously announced power and water disruptions in Zambia, impacting the ramp-up of the Roan Concentrator.

·        Decision taken to further upgrade the Roan concentrator to implement new technical advances and address lessons learnt in the processing of weathered and transitional copper ores. The expansion and upgrade of Roan has commenced and is expected to be completed during Q2 FY 2024.

·        Jubilee successfully developed a breakthrough process flow sheet for the treatment of mixed and transitional copper reefs as part of our 14 000 tonnes per annum Southern copper strategy.

·        This modular flowsheet development offers the potential to unlock numerous transitional copper ore opportunities in Zambia at a significantly reduced capital investment per opportunity.

·        The Northern Copper Strategy continues to progress with the development phase entering upscaled continuous pilot trials to confirm results achieved to date. If successful, Jubilee believes this would solve the technical barrier to unlock the recovery of copper and cobalt from the vast quantity of copper tailings at surface in Zambia.

Financial highlights

South Africa

·        Net revenue from our South African operations for FY2023 increased to £125 million (FY2022: £121million) up 3% from FY2022, equivalent to US$151 million (FY2022: US$162 million).

·        Gross profit from South African operations for FY2023 reached £27 million (US$32 million) down 30% from FY2022 maintaining a healthy of 21% despite a 22% decline in the PGM US$ revenue per oz and external operating cost drivers of power and logistics.

·        Chrome earnings margin of 12% (FY2022:13%) despite a rise in operating costs of 10% to £56/t (FY2022: £51/t). Operating costs in US$ terms remained consistent year-on-year.

·        PGM cost per oz US$508 (FY2022: US$408) net of chrome credits driven higher mainly by cost of power and reliance on back-up power.

Zambia

·        Net revenue from Zambian operations decreased by 8% driven by sifter market prices to £17 million (FY2022: £18 million) equivalent to US$20 million (FY2022: US$24 million) for the year.

·        Gross profit from Zambian operations decreased by 35% to £5 million (FY2022: £8 million) and in US$ terms US$ 7.5 million (FY2022: US$10 million) for the year.

·        Copper unit cost per tonne down 2% to US$5 281 (FY2022: US$5 386).

·        Total capital investment to date to deliver the integrated Southern Copper Refining Strategy of £63 million (US$74 million) which includes the integrated Sable Copper and Cobalt Refinery and the Roan Concentrator.

Prospects for FY2024

SOUTH AFRICA

·        FY2024 offers the potential for growth in earnings as it benefits from the expansion drive into high margin chrome operations at a time when the market is experiencing strong demand for chrome products:

o   An additional 60 000 tonnes of higher margin chrome concentrate is targeted for the first 6 months of FY2024 (150 000 tonnes over the full period) reaching an additional 15 000 tonnes per month at stable production.

o   The production of chrome forms a critical part of the South African business' profitability and cost competitiveness. Jubilee will continue to expand its chrome operational footprint on attractive, market-linked terms during the period. 

·        The Company confirms its guidance of achieving 1.45 million tonnes of chrome concentrate for FY 2024.

·        The Company will seek to incrementally expand its PGM production footprint to match the growing demand from the expansion of the chrome operations.

·        Considering the prevailing PGM basket prices, the Company has opted to prioritise enhancing the efficiency of existing PGM capacity. We are also assessing potential Joint Ventures to accommodate additional PGM feed materials, which presents a cost-effective PGM expansion option for the Group. As part of this decision the construction of a new PGM facility in the eastern limb of South Africa has been placed under review.

·        The Company confirms its guidance of 42 000 PGM ounces for FY2024.

Zambia

·        The Southern Copper strategy targets the processing of weathered and transitional copper reefs traditionally discarded as waste.

o   Jubilee developed breakthrough modular circuit designs targeting the recovery of copper from these reefs;

o   Modular circuit design offers potential for rapid deployment based on learnings from the South African operations; 

o   Modules range from 15 000 to 50 000 tonnes per month processing capacity at lower capital of US$2.5 million for a 15 000 tonnes per month module;

o   Modules targeted as part of Roan upgrade with two further modules considered under current long term offtake agreements being negotiated.

·        The Company confirms its guidance of 5 850 tonnes of copper for FY 2024 which is impacted by the upgrade at Project Roan.

·        As part of the development of the Northern Copper strategy, upscaled continuous process trials have commenced to both confirm the results achieved to date as well as the process flow sheet assumptions.  The continuous trials will run over an extended period of approximately 10 weeks to ensure the accuracy of the results.

Leon Coetzer, CEO, commented: "I am pleased to report another year of significant growth at Jubilee in which we have demonstrated our ability to navigate through some challenging infrastructure conditions. The company successfully countered the sharp drop in the PGM basket price by expanding its chrome operations into higher-margin offtake agreements, resulting in a robust net cash position and strong cash generation. Investments in power infrastructure in South Africa and Zambia were crucial in addressing power outages and stabilizing supply, while a new private water infrastructure investment resolved disruptions issues at the Roan operations.

"This year-on-year improved production performance reflects the company's ongoing investment strategy in expansion opportunities, with a belief in continued positive results in the short and medium term. The organisation remains committed to challenging itself to improve operational efficiencies, embodying what they refer to as the "Jubilee Way."

"In South Africa, our operations continue maintain its status as one of the lowest cost PGM producers and our commitment to safety is evident with 177 days without any Lost Time Injuries. New processing partnerships announced in the year are expected to significantly enhance margins and processing capacities. Jubilee is also poised for growth in Zambia, investing further in our new copper division including upgrading our Roan Concentrator to boost copper output. Technical breakthroughs from the development centre offer substantial near-term growth opportunities in Zambia.

"In conclusion, the success of Jubilee can be attributed to the unwavering dedication of our employees, strategic investments, and agility in addressing challenges. The company remains committed to delivering value to stakeholders and strengthening our market position, and I continue to have every confidence our investments will generate significant returns for shareholders in the short and long term."

GROUP KEY PERFORMANCE INDICATORS

% change	FY2022	FY2023	Unit	GROUP KEY UNITS OF PRODUCTION	Unit	FY2023	FY2022	% change
				PGM ounces sold
(5%)	35 318	33 376	Oz	- Inyoni	Oz	33 376	35 318	(5%)
44%	6 268	9 057	Oz	- Third party JV	Oz	9 057	6 268	44%
2%	41 586	42 433	Oz	Total PGM ounces sold	Oz	42 433	41 586	2%
29%	2 604	2 923	Tonne	Copper tonnes sold	Tonne	2 923	2 604	29%
				UNIT REVENUE
(22%)	1 615	1 262	$/oz	Revenue per PGM ounce	£/oz	1 048	1 215	(14%)
(19%)	9 210	7 451	$/t	Revenue per copper tonne	£/t	6 187	7 047	(12%)
				UNIT COSTS
24%	408	508	$/oz	Net cost per PGM ounce (after by-product credits chrome)	£/oz	422	305	38%
(2%)	5 386	5 281	$/t	Net cost per copper tonne (after by-product credits cobalt)	£/t	4 385	4 165	5%
				UNIT EARNINGS
(38%)	1 207	754	$/oz	Net earnings per PGM ounce	£/oz	627	910	(31%)
(43%)	3 824	2 171	$/t	Net earnings per copper tonne	£/t	1 802	2 882	(37%)
				GROUP KEY FINANCIAL INDICATORS
(1%)	37 643 497	37 443 796	US$	Capital spend	£	47 409 212	30 993 020	53%
(10%)	41 276 419	37 336 216	US$	Cashflow from operating activities	£	31 006 607	31 005 195	0%
(8%)	186 387 702	170 901 624	US$	Revenue	£	141 928 672	140 006 986	1%
(39%)	48 955 819	29 841 994	US$	EBITDA	£	24 782 880	36 773 653	(33%)
(2%)	5.90	5.77	US cent	Tangible net asset value per ordinary share (pence)	pence	4.56	4.86	(6%)

Audit Opinion

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

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

The Company also hereby gives notice of its 2023 Annual General Meeting ("AGM"), which will be held on 3 November 2023 at 11:00 am UK time at the offices of Fladgate LLP, 16 Great Queen Street, London, WC2B 5DG,  to transact the business as stated in the notice of AGM. The Group's Annual Report for the year ended 30 June 2023, along with the Notice of AGM, have been posted to the website, www.jubileemetalsgroup.com.

Salient Dates:

Shareholders on the register who are entitled to receive the notice of AGM (SA)	29 September 2023
Notice of AGM posted to shareholders	11 October 2023
Last date to trade in order to be eligible to participate in and vote at the AGM (SA)	27 October 2023
Record Date for the purposes of determining which shareholders are entitled to participate in and vote at the AGM (UK) Record date for purpose of determining which shareholders are entitled to participate and vote at the AGM (SA)	1 November 2023 1 November 2023
Latest time and date for receipt of CREST Proxy Instruction and other uncertificated instructions (UK) Latest time and date for receipt of dematerialised holding instruction and other uncertified instructions (SA)	11:00 am (UK time) 1 November 2023 1 pm (SA time) 1 November 2023
Annual General Meeting	11:00 a.m. (UK time) 03 November 2023
Results of the Annual General Meeting released on RNS and SENS	03 November 2023

Integrated Annual Report

The Integrated Annual Report for the year ended 30 June 2023 is also available on the Company's website today at www.jubileemetalsgroup.com. Physical copies of the Annual Report will be posted to shareholders who have elected to receive them.

11 October 2023

For further information visit www.jubileemetalsgroup.com  or contact:

Jubilee Metals Group PLC Leon Coetzer	Tel: [phone]
PR & IR Adviser - Tavistock Jos Simson/ Gareth Tredway	Tel: [phone]
Nominated Adviser - SPARK Advisory Partners Limited Andrew Emmott/ James Keeshan	Tel: [phone]
Joint Broker - Berenberg Matthew Armitt/ Jennifer Lee/ Detlir Elezi	Tel: [phone]
Joint Broker - WHIreland Harry Ansell/ Katy Mitchell	Tel: [phone]/  [phone]
JSE Sponsor - Questco Corporate Advisory Pty Ltd Alison McLaren	Tel: [phone]

GROUP ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

Group statements of financial position at 30 June 2023

Figures in Pound Sterling		2023	2022
Assets
Non-current assets
Property, plant and equipment		88 696 783	69 875 918
Intangible assets		79 883 128	78 466 341
Other financial assets		14 138 325	15 283 501
Inventories		13 505 677	12 506 751
Deferred tax		5 930 084	4 345 508
		202 153 997	180 478 019
Current assets
Other financial assets		338 077	701 808
Inventories		35 664 792	27 736 150
Tax assets		695 422	990 746
Trade and other receivables		29 680 525	48 820 613
Contract assets		19 009 089	18 875 946
Cash and cash equivalents		12 596 183	16 017 944
		97 984 088	113 143 207
Total assets		300 138 085	293 621 226
Equity and liabilities
Equity attributable to equity holders of parent
Share capital and share premium	3	161 119 978	155 538 672
Reserves		2 608 390	23 503 904
Accumulated profit		37 716 975	24 803 165
		201 445 343	203 845 741
Non-controlling interest		3 212 940	3 710 249
		204 658 283	207 555 990
Liabilities
Non-current liabilities
Other financial liabilities		2 803 434	2 803 434
Lease liabilities		24 144	359 665
Deferred tax liability		13 852 052	18 221 132
Provisions		937 613	929 398
		17 617 243	22 313 629
Current liabilities
Other financial liabilities		-	1 035
Trade and other payables		59 639 629	52 632 003
Revolving credit facility		14 171 100	8 471 028
Current tax liabilities		4 051 830	2 647 541
		77 862 559	63 751 607
Total liabilities		95 479 802	86 065 236
Total equity and liabilities		300 138 085	293 621 226

Group statements of comprehensive income for the year ended 30 June 2023

Figures in Pound Sterling		2023	2022
Revenue		141 928 672	140 006 986
Cost of sales		(110 537 605)	(94 669 908)
Gross profit		31 391 067	45 337 078
Operating expenses		(15 873 028)	(19 693 753)
Operating profit		15 518 039	25 643 325
Investment revenue		1 614 824	1 400 599
Fair value adjustments		313 241	913 929
Finance costs		(5 164 668)	(1 445 307)
Share of loss from associate		-	(6 505)
Profit before taxation		12 281 436	26 506 041
Taxation		688 109	(8 133 615)
Profit for the year		12 969 545	18 372 426
Profit for the year attributable to:
Owners of the parent		12 913 810	18 037 001
Non-controlling interest		55 735	335 425
		12 969 545	18 372 426
Earnings per share (pence)	2	0.48	0.73
Diluted earnings per share (pence)	2	0.47	0.70
Reconciliation of other comprehensive income:
Profit for the year		12 969 545	18 372 426
Other comprehensive income:
Exchange differences on translation foreign operations		(20 866 371)	16 810 787
Taxation related to components of other comprehensive income		-	(168 048)
Total comprehensive income		(7 896 826)	35 015 165
Total comprehensive income attributable to:
Owners of the parent		(7 399 517)	34 467 442
Non-controlling interest		(497 309)	547 723
		(7 896 826)	35 015 165

Group statements of changes in equity as at 30 June 2023

Figures in Pound Sterling	Share capital and share premium	Foreign currency Translation reserve	Merger reserve	Share- based payment reserve	Convertible notes reserve	Total reserves	(Accumulated Loss)/ retained earnings	Total attributable to equity holders of the Company	NCI	Total equity
Group
Balance at 30 June 2021	120 013 188	(19 482 063)	23 184 000	2 707 928	203 040	6 612 905	6 753 964	133 380 054	3 162 526	136 542 582
Changes in equity
Profit for the year	-	-	-	-	-	-	18 037 001	18 037 001	547 723	18 584 724
Other comprehensive income	-	16 430 407	-	-	-	16 430 407	-	16 430 407	-	16 430 407
Total comprehensive income for the year	-	16 430 407	-	-	-	16 430 407	18 037 001	34 467 408	547 723	35 015 131
Issue of share capital net of costs	35 129 124	-	-	-	-	-	-	35 129 124	-	35 129 124
Share warrants expired	20 026	-	-	(20 026)	-	(20 026)	-	-	-	-
Share warrants issued	-	-	-	22 500	-	22 500	-	22 500	-	22 500
Share options exercised/lapsed	173 294	-	-	(185 494)	-	(185 494)	12 200	-	-	-
Share options issued	-	-	-	846 652	-	846 652	-	846 652	-	846 652
Transfer between reserves	203 040	-	-	-	(203 040)	(203 040)	-	-
Total changes	35 525 484	16 430 407	-	663 632	(203 040)	16 890 999	18 049 201	70 465 683	547 723	71 013 406
Balance at 30 June 2022	155 538 672	(3 051 656)	23 184 000	3 371 560	-	23 503 904	24 803 165	203 845 740	3 710 249	207 555 988
Changes in equity
Profit for the year	-	-	-	-	-	-	12 913 810	12 913 810	(497 309)	12 416 501
Other comprehensive income	-	(20 313 293)	-	-	-	(20 313 293)	-	(20 313 293)	-	(20 313 293)
Total comprehensive income for the year	-	(20 313 293)	-	-	-	(20 313 293)	12 913 810	(7 399 483)	(497 309)	(7 896 792)
Issue of share capital net of costs	4 563 360	-	-	-	-	-	-	4 563 360	-	4 563 360
Share warrants exercised	935 414	-	-	(935 414)	-	(935 414)	-	-	-	-
Share options exercised/lapsed	82 532	-	-	(82 532)	-	(82 532)	-	-	-	-
Share options issued	-	-	-	435 725	-	435 725	-	435 725	-	435 725
Total changes	5 581 306	(20 313 293)	-	(582 221)	-	(20 895 514)	12 913 810	(2 400 398)	(497 309)	(2 897 707)
Balance at 30 June 2023	161 119 978	(23 364 949)	23 184 000	2 789 339	-	2 608 390	37 716 975	201 445 342	3 212 940	204 658 281
Note:	3

Group statements of cash flow as at 30 June 2023

Figures in Pound Sterling		2023	2022
Cash flows from operating activities
Cash generated from operations		36 523 227	34 901 495
Interest income		1 614 824	1 400 599
Finance costs		(5 164 668)	(1 445 307)
Taxation paid		(1 966 776)	(3 851 592)
Net cash from operating activities		31 006 607	31 005 195
Cash flows from investing activities
Purchase of property, plant and equipment		(33 782 332)	(36 451 781)
Sale of property, plant and equipment		28 236	-
Purchase of intangible assets		(9 129 681)	(15 662 685)
Purchase of non-current inventories		(998 926)	(12 506 751)
Net cash from investing activities		(43 882 703)	(64 621 217)
Cash flows from financing activities
Net proceeds on share issues		4 563 360	35 129 124
Proceeds from revolving credit facilities		5 700 072	4 631 802
Increase in loans to joint ventures		39 644	(6 933 571)
Decrease in other financial liabilities		(1 035)	(4 062 392)
Lease payments		(335 521)	(588 317)
Net cash from financing activities		9 966 520	28 176 646
Total cash movement for the year		(2 909 576)	(5 439 376)
Total cash at the beginning of the year		16 017 944	19 643 047
Effect of exchange rate movement on cash balances		(512 185)	1 814 272
Total cash at end of the year		12 596 183	16 017 944

Notes to the Group financial statements for the year ended 30 June 2023

1.          Statement of accounting policies

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

The Group and Company results for the year ended 30 June 2023 have been prepared using the accounting policies applied by the Company in its 30 June 2023 annual report, which are in accordance with UK adopted International Financial Reporting Standards ("IFRS") and IFRC interpretations, in conformity with the requirements of the Companies Act 2006. The financial statements are presented in Pound Sterling.

2.            Earnings per share

Figures in Sterling	2023	2022
Earnings attributable to ordinary equity holders of the parent (£)	12 913 810	18 037 001
Weighted average number of shares for basic earnings per share	2 687 683 403	2 455 458 009
Effect of dilutive potential ordinary shares
- Share options and warrants	45 560 690	123 943 501
Diluted weighted average number of shares for diluted earnings per share	2 733 244 093	2 579 401 510
Basic earnings per share (pence)	0.48	0.73
Diluted basic earnings per share (pence)	0.47	0.70
Total number of shares in issue at year end	2 738 129 981	2 657 051 370
Tangible net asset value (£)	124 775 155	136 618 835
Tangible net asset value per share (pence)	4.56	4.84

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

3.            Share capital, share premium, options and warrants

Figures in Sterling	2023	2022
Authorised
The share capital of the Company is divided into an unlimited number of ordinary shares of £ 0.01 each.
Issued share capital fully paid
Ordinary shares of 1 pence each	27 381 300	26 570 514
Share premium	133 738 678	128 968 158
Total issued capital	161 119 978	155 538 672

The Company issued the following ordinary shares during the period and as at the date of this announcement:

Date issued	Number of shares	Issue price (pence)	Purpose
Opening balance at 1 July 2022	2 657 051 370
07-Jul-22	25 000	6.12	Warrants
22-Jul-22	1 439 156	6.12	Warrants
01-Sep-22	8 509 713	6.12	Warrants
21-Sep-22	4 659 599	6.12	Warrants
21-Sep-22	2 500 000	3.38	Warrants
10-Nov-22	2 500 000	3.38	Warrants
24-Nov-22	4 659 599	6.12	Warrants
28-Nov-22	8 509 713	6.12	Warrants
21-Dec-22	5 000 000	3.38	Warrants
18-Jan-23	32 159 446	6.12	Warrants
23-Jan-23	366 385	0.06	Warrants
04-May-23	1 250 000	2.50	Options
04-May-23	1 000 000	4.00	Options
04-May-23	2 000 000	4.50	Options
04-May-23	3 500 000	5.50	Options
04-May-23	3 000 000	6.00	Options
	2 738 129 981

During the year share transaction costs accounted for as a deduction from the share premium account amounted to £Nil (FY2022 £1 385 214).  The company recognised a share-based payment expense in the share premium account in an amount of £1 017 946 (                                                      FY2022: £193 320) in accordance with section 610 (2) of the United Kingdom Companies Act 2006. The charge relates to the issue of new Jubilee shares in lieu of warrants exercised and the amount was accounted for as a deduction from the share premium account.

Warrants

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

Issue Date	Number of  warrants	Issue Price (pence)	Expiry  date	Share price    at issue date (pence)
19 Nov 2019	7 818 750	4.00	19 Nov 2023	4.13
22 Jun 2020	750 000	3.40	22 Jun 2024	3.90
21 Jan 2021	4 036 431	13.00	21 Jan 2025	13.20
	12 605 181
Reconciliation of the number of warrants in issue			2023	2022
Opening balance			86 267 125	86 267 125
Expired/exercised during the year			(73 661 944)	-
Closing balance			12 605 181	86 267 125

4.            Segmental analysis

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

·        PGM and Chrome - the processing of PGM and chrome containing materials;

·        Copper and Cobalt - the processing of Copper and Cobalt containing materials;

·        Other - administrative and corporate expenses

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

2023

Figures in Pound Sterling	PGM and Chrome	Copper and Cobalt	Other	Total
Total assets	140 451 298	100 659 374	59 027 411	300 138 083
Total liabilities	55 925 242	33 248 577	6 305 986	95 479 805
Revenue	125 051 722	16 876 950	-	141 928 672
Gross profit	26 496 660	4 894 407	-	31 391 067
Depreciation and amortisation	(6 826 254)	(1 733 769)	(391 577)	(8 951 600)
Operating expenses	(870 765)	(3 212 716)	(2 837 949)	(6 921 430)
Operating profit	18 799 641	(52 078)	(3 229 526)	15 518 037
Investment revenue	760 047	-	854 777	1 614 824
Fair value	-	-	313 241	313 241
Net finance costs	(4 286 774)	(877 893)	-	(5 164 667)
Profit before taxation	15 272 914	(929 971)	(2 061 508)	12 281 435
Taxation	(314 842)	1 133 699	(130 748)	688 109
Profit after taxation	14 958 072	203 728	(2 192 256)	12 969 544

2022

Figures in Pound Sterling	PGM and Chrome	Copper and Cobalt	Other	Total
Total assets	130 862 228	101 905 479	60 853 519	293 621 226
Total liabilities	28 026 802	13 309 255	14 729 179	56 065 236
Revenue	121 655 367	18 351 619	-	140 006 986
Gross profit	37 832 751	7 504 327	-	45 337 078
Depreciation and amortisation	(7 553 949)	(1 387 261)	(1 281 692)	(10 222 902)
Operating expenses	(4 770 379)	(1 909 100)	(2 791 372)	(9 470 851)
Operating profit	25 508 423	4 207 966	(4 073 064)	25 643 325
Investment revenue	588 435	795 786	16 378	1 400 599
Fair value	-	580 933	332 996	913 929
Net finance costs	(827 726)	(617 581)	-	(1 445 307)
Income from equity account investments	-	-	(6 505)	(6 505)
Profit before taxation	25 269 132	4 967 104	(3 730 195)	26 506 041
Taxation	(6 487 979)	(535 544)	-	(8 133 615)
Profit after taxation	18 781 153	4 431 560	(3 730 195)	18 372 426

5.            Going Concern

The Group's business activities, together with the factors likely to affect its future development, performance and position are set out in the Group's Integrated Annual Report. The Group meets its day‐to‐day working capital requirements through cash generated from operations and trade finance facilities.

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

·        the trading price of metals; and

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

The Group's forecasts and projections to 31 December 2024, taking account of reasonably possible changes in trading performance, commodity prices and currency fluctuations, indicates that the Group should be able to operate within the level of its current cash flow earnings forecasted for at least the next twelve months from the date of approval of the financial statements.

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

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

6.          Events after the reporting period

The directors confirm that there have been no significant events affecting the company since the end of the reporting period and up to the date of approval of these financial statements that would require adjustments to or disclosure in the financial statements.

Annexure 1

Headline earnings per share

Accounting policy

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

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

Reconciliation of headline earnings per share

	June 2023		June 2022
	Gross £'000	Net £'000	Gross £'000	Net £'000
Earnings for the period attributable to ordinary shareholders		12 914	-	18 037
Share of impairment loss from equity accounted associate	-	-	6.5	5
Fair value adjustments	(313)	(313)	(914)	(914)
Headline earnings from continuing operations	12 601		17 128
Weighted average number of shares in issue ('000)	2 738 130			2 455 458
Diluted weighted average number of shares in issue ('000)	2 733 244			2 579 402
Headline earnings per share from continuing operations (pence)		0.46		0.70
Headline earnings per share from continuing operations (ZAR cents)		9.84		14.11
Diluted headline earnings per share from continuing operations (pence)		0.46		0.66
Diluted headline earnings per share from continuing operations (ZAR cents)		9.86		13.43
Average conversion rate used for the period under review £:ZAR		0.047		0.049

 

END