Audited Results for the year ended 30 June 2024
Jubilee Metals Group PLC
Registration number (4459850)
AIM share code: JLP
Altx share code: JBL
ISIN: GB0031852162
("Jubilee" or "the Company" or "the Group")
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Audited Results for the year ended 30 June 2024
Jubilee, a diversified metals producer with operations in South Africa and Zambia, is pleased to announce its audited results for the year ended 30 June 2024 (FY2024). Jubilee delivered another profitable performance achieving notable growth in chrome production while successfully meeting its revised copper targets.
Highlights for the year ended 30 June 2024
· Strong operational performance was delivered by the Group with increased production in chrome and copper supported by the ongoing expansion of processing capacity in both chrome and copper.
· Group revenue increased by 20.2% to US$205.4 million (FY2023: US$170.9 million) driven by the increase in chrome and copper production during the period which was able to offset the sharp pullback in platinum group metals (PGM) basket prices.
· Chrome concentrate production increased by 20.0% year-on-year to 1 548 205 tonnes (FY2023: 1 289 891 tonnes), exceeding full-year guidance.
· Copper cathode and copper in concentrate (copper units) production for the financial year increased by 17.1% to 3 422 tonnes (FY2023: 2 923 tonnes) in line with our revised guidance for FY2024 of 3 250 - 4 000 tonnes.
· 6E PGM production decreased by 14.2% to 36 411oz (FY2023: 42 433oz) driven by increased focus on chrome production given the improved economic merits of our chrome material.
· Chrome EBITDA increased by 154.3% to US$17.8 million (FY2023: US$7.0 million) helping offset decreased PGM earnings. Chrome contributed to 73.1% (FY2023: 56.8%) of the Group's revenue whilst PGM contributed to 17.9% (FY2023: 31.3%) of the Group's revenue.
· Copper EBITDA (excluding fair value adjustments), increased by 71.4% to US$3.6 million (FY2023:US$2.1 million) driven mainly by the increased sale of copper units in concentrate for Roan which is sold at a higher margin and which contributed to 57% of total copper units sold during the period (FY2023: 24%).
· Group EBITDA decreased by 7.1% to US$27.7 million (FY2023: US$29.8 million) supported by increased chrome production helping partially offset the impact of the sharp decline in PGM EBITDA.
· Both copper and chrome processing capacities continue to expand with the completion of the upgrade to the Roan Concentrator in August 2024 and the addition of two further chrome modules currently being completed and expected to be brought into operation during November 2024.
· Jubilee's focus in Zambia now shifts to bringing into operation its copper resources to utilise its expanding copper processing capacity such as:
o the acquisition of the Munkoyo open-pit mining project on 28 June 2024, which was brought into operation during July 2024, ahead of schedule, with mined run-of-mine (ROM) grades exceeding 3.5% copper which is delivered to Sable for refining.
o Roan commencing with the processing of historically mined low grade surface stockpiles
o The large Waste Rock Project, with approximately 260 million tonnes of surface rock, which is set to begin an industrial trial of 15 000 tonnes through Roan's front-end module in November 2024 as part of the final due diligence review.
o The completion of the technical review of Project G, as Jubilee's potential second targeted copper open-pit mining opportunity.
· Completed an oversubscribed placing of US$16.5 million before costs at 5.5 pence per share on 5 January 2024 to accelerate the Zambian copper expansion drive.
· The Group invested US$39.9 million (FY2023: US$65.9 million) in capital and intangible asset expenditure and other assets to expand its Zambian and South African operations.
Statement from Leon Coetzer, Chief Executive Officer:
"I am pleased to report strong operational performance, with significant growth across our copper and chrome operations. Our South African operations delivered considerable growth to achieve a new record in chrome production, which was able to in part offset a challenging PGM market.
The expansion of our Zambian copper processing capacity has been a key focus for this year. Completing the Roan copper concentrator upgrade in August 2024 has positioned the Company to handle multiple feed sources of copper oxide and sulphides simultaneously, increasing Roan's copper output capacity to 13 000 tonnes per annum (tpa). This achievement by the Jubilee team comes despite facing several challenges during the implementation of the project which delayed the commissioning of the project and impacted full year copper production. The upgrade and expansion of the Sable Refinery is currently underway and is targeted to be completed over the coming 10 months to reach a capacity of 16 000tpa. With Roan capable of operating independently of Sable this will increase Jubilee's copper processing capacity to in excess of its initial target of 25 000tpa of copper. Our focus now shifts to bring into operation our various copper resources to take-up this expanded processing footprint.
In South Africa, chrome production has been a highlight, with a 20.0% year-on-year increase, reaching 1 548 205 tonnes for FY2024. This growth allowed us to exceed our full-year guidance of 1 450 000 tonnes and keeps us on track to achieve our goal of producing 2 million tonnes of chrome concentrate per annum.
Our PGM production decreased by 14.2% to 36 411 ounces. However, this was offset by our strategic prioritisation of higher margin chrome material, which provided improved economic returns.
The Group's financial performance demonstrates the strength of our operations and the diversification of revenue. Increased chrome production helped offset the reduction in PGM revenue, given the challenging pricing environment. In January 2024, we concluded an oversubscribed placing, which supported the acceleration of our copper expansion projects.
Looking ahead, we remain committed to our production guidance. The strategy for the year ahead lies in tapping into the full potential of our varied metals portfolio, using our technical excellence, while staying dedicated to sustainable and responsible mining.
In conclusion, I would like to thank our shareholders for their continued support and confidence in Jubilee. The progress made this year has laid a solid foundation for the future, and I look forward to reporting further achievements in the year ahead."
Key Operational and Financial Indicators
Indicator | Metric | FY2024 | FY2023 | % | |
Production - Copper (Note 1) | Tonnes | 3 422 | 2 923 | 17.1% | |
Production - Chrome | Tonnes | 1 548 205 | 1 289 891 | 20.0% | |
Production - PGM (Note 2) | Ounces | 36 411 | 42 433 | (14.2%) | |
Sold - Copper (Note 1) | Tonnes | 2 655 | 2 728 | (2.7%) | |
Sold - Chrome | Tonnes | 1 569 817 | 1 275 558 | 23.1% | |
Sold - PGM (Note 2) | Ounces | 36 411 | 42 433 | (14.2%) | |
Average revenue - Copper (Note 3) | US$/tonne | 6 964 | 7 451 | (6.5%) | |
Average revenue - Chrome | US$/tonne | 96 | 76 | 26.3% | |
Average revenue - PGM | US$/ounce | 1 009 | 1 262 | (20.1%) | |
Average cost - Copper | US$/tonne | 4 294 | 5 281 | (18.7%) | |
Average cost - Chrome (Note 4) | US$/tonne | 84 | 67 | 25.4% | |
Average cost - PGM (Note 4) | US$/ounce | 709 | 785 | (9.7%) | |
Group revenue | US$ 000 | 205 404 | 170 901 | 20.2% | |
Group cost of sales | US$ 000 | (169 425) | (133 102) | 27.3% | |
Group EBITDA | US$ 000 | 27 718 | 29 842 | (7.1%) | |
Group profit after tax (Note 5) | US$ 000 | 6 388 | 15 617 | (59.1%) | |
Attributable earnings | US$ 000 | 5 955 | 15 550 | (61.7%) | |
Earnings per share | US$ cents | 0.21 | 0.58 | (63.8%) | |
Net debt (Note 6) | US$ 000 | (11 922) | (2 025) | 488.7% | |
Total capital and intangible expenditure | US$ 000 | 39 876 | 65 900 | (39.5%) | |
Net asset value per share | US$ cents | 5.07 | 5.77 | (12.1%) | |
Number of shares in issue | Millions | 3 005 659 | 2 738 130 | 9.8% | |
Weighted average number of shares in issue | Millions | 2 856 010 | 2 687 683 | 6.3% | |
Note 1: Year-on-year copper production increased by 17.1% outpacing copper sales due to increased product held in stock. Note 2: In the prior financial year, PGM production included 9 057 ounces of third-party material processed and sold. Note 3: Copper unit revenue per tonne decreased mainly due to an increased proportion of copper units sold as copper concentrate versus copper cathode. The copper units in concentrate is sold at a percentage discounted below the LME copper price which has the effect of lowering the average traded copper price. Note 4: Certain operating costs were re-allocated between two of Jubilee's PGM operating plants and two Inyoni chrome processing plants to more accurately reflect the costs for each operation in relation to output. The costs re-allocated amounted to US$9.9 million (FY2023: US$4.3 million). Note 5: The decrease in Group profit after tax is mainly attributable to: · An increase in deferred tax of US$5.7 million contributing to 33.4% of the decrease in profit after tax. The increase is mainly attributable to increased deferred tax of US$4.0 million on unrealised foreign exchange translation differences (due to the depreciation of the ZAR and the ZMW against the US$) and increased deferred tax of US$1.6 million on year-end sales provisions. · Decrease in gross profit from PGM operations of 55.5% due to a 31.4% decrease in PGM revenue; · Increased depreciation and amortisation of US$12.3 million (FY2023: US$10.8 million) on property, plant and equipment as well as intangibles at the period end; · Increased finance costs of US$8.8 million (FY2023: US$6.2 million) driven by increased metal trade finance to fund higher copper and chrome production and increased borrowings to fund the Group's expansion in Zambia; and · A share based payment expense of US$2.1 million (US$.6 million) (refer note 8 for details). Note 6: Net debt represents total borrowings less cash and cash equivalents for the period under review. The increase is mainly due to increased banking facilities of US$5.4 million to fund working capital requirements to support increased chrome and copper production for the period under review as well as a US$4.8 million increase in borrowings to fund the Group's expansion in Zambia. | |||||
Operational Highlights
Zambia
· Safety performance improved with 488 consecutive days achieved without a lost time injury (LTI-free) in the current fiscal year, compared to 122 LTI-free days in FY2023), and commensurately realising a reduction in the LTI Frequency Rate (LTIFR) to zero (FY2023: 2.4).
· Jubilee commenced production at its newly constructed Roan front-end module post the year end on 8 August 2024.
· Roan's new frond-end capacity has been constructed adjacent to the already operating milling and flotation circuits increasing the overall capacity of Roan to a maximum design of 13 000tpa of copper.
· Roan front-end upgrade forms part of Jubilee's overall operational capacity increase strategy which includes the Sable Refinery upgrade project currently underway, targeting to reach a combined processing capacity of 25 000tpa of copper.
· Copper units produced for the financial year increased by 17.1% to 3 422 tonnes (FY2023: 2 923 tonnes) meeting the revised guidance for FY2024 of 3 250 - 4 000 tonnes.
· Capital investment reached US$17.5 million (FY2023: US$37.6 million), principally focused on the Roan front-end upgrade.
· Copper revenue decreased by 9.0% to US$18.5 million (FY2023: US$20.3 million).
· Copper unit revenue per tonne decreased to US$6 964/t (FY2023: US$7 451/t). This mainly resulted from an increased proportion of copper units sold as copper concentrate which is priced at percentage discount below the LME copper price which has the effect of lowering the revenue per copper unit.
· The average LME copper price increased by 5% to US$8 678/t (FY2023: US$8 289/t).
· Average copper unit cost per tonne improved by 18.7% to US$4 294/t (FY2023: US$5 281/t).
· Copper gross profit margin improved to 38.3% (FY2023: 29.1%) mainly driven by an increasing proportion of copper units in concentrates sales compared to copper cathode.
South Africa
· Operations achieved 88 LTI-free days (FY2023: 177 LTI-free days), reflecting a consistent LTIFR rate of 1.62, in line with performance from the previous year.
· Chrome concentrate produced for FY2024 increased by 20.0% year-on-year to 1 548 205 tonnes (FY2023: 1 289 891 tonnes) exceeding full-year guidance of 1 450 000tpa.
· PGM feed grades delivered with higher chrome recoverable material being prioritised to benefit from favourable chrome market conditions.
· PGM production for FY2024 decreased by 14.2% to 36 411oz (FY2023: 42 433oz) offset by the significant increase in chrome production given the prioritisation to improved economic merits of our chrome material.
· Jubilee's chrome processing capacity is set to increase further with the addition of two additional chrome modules currently being completed which are targeted to be brought into operation during November 2024.
· Capital investment reached US$22.3 million (FY2023: US$28.0 million), focused on the expansion of Jubilee's chrome operations.
· Revenue from South African operations increased by 24.1% to US$186.9 million (FY2023: US$150.6 million).
· Average CIF chrome price increased by 13.8% to US$296/t (FY2023: US$260/t)
· Chrome concentrate cost per tonne increased to US$84/t (FY2023: US$67/t), driven by additional chrome material externally sourced.
· PGM cost per ounce reached US$709 (FY2023: US$785), remaining profitable despite challenging PGM market conditions.
· Gross profit margin from South African operations decreased to 15.5% (FY2023: 21.2%) predominately impacted by a 31.4% decline in PGM revenue.
· The average PGM basket price decreased by 21.1% to US$1 351/oz (FY2023: US$1 712/oz).
Sustainability
As part of its sustainability efforts, Jubilee embraces an innovative approach that redefines traditional mining practises by reprocessing previously processed material, previously mined material and open-pit mining materials, thereby creating sustainable solutions for resource utilisation.
Jubilee consistently strives to improve operational efficiencies and challenge industry norms by being a leading metals recovery group unlocking value from overlooked resources. With a wealth of low-cost resources and an innovative low-capital modular approach significant opportunities for growth exists, from which shareholder value can be enhanced through world class processing technology and a highly experienced management team.
Jubilee operates its projects within communities that are integrated into the success of the projects through its novel corporate social investment programmes.
Zambia
· Safety Performance
o The Zambian operations achieved a remarkable improvement in the LTIFR to zero, with the last LTI occurring in February 2023.
· Environmental Performance
o Scope 1 emissions for FY 2024 totalled 645 tonnes of CO2, a decrease from 885 tonnes in FY2023.
o Scope 2 emissions increased to 110 tonnes compared to 103 tonnes in FY2023.
· Electricity Usage
o Zambian operations are regularly impacted by power failures and disturbances to address this challenge, a three-year renewable power purchase agreement has been signed with Lunsemfwa Hydro Power Company (LHPC), an independent hydro and solar power producer in Zambia. This agreement provides additional reliable power supply for both the Roan and Sable operations at rates competitive with current power tariffs, effective from 1 September 2024.
o Electricity consumption decreased by 14.7% to 5,360 kWh per tonne of copper produced (FY2023: 6,282 kWh per tonne of copper produced).
· Water Usage
o Total water usage for FY 2024 was 1.56 million litres (1.56 ML), compared to 1.365 million litres (1.37 ML) in FY 2023.
· Corporate social responsibility
o Jubilee conducted a detailed community baseline and needs assessments in Zambia, involving data collection, surveys and focussed group discussions. Following the assessments, comprehensive infrastructure investment community upliftment programs are developed in consultation with relevant stakeholders, aiming to improve the quality of life for local residents.
o Key initiatives include providing access to clean running water to alleviate water scarcity, implementing sustainable sanitation solutions through a capacity-building program for compost toilets, enhancing education and infrastructure, improving roads and installing solar pumps and water storage to facilitate better access to water and sanitation.
South Africa
· Safety Performance
o The LTIFR regressed to 1.62 (FY2023: 1.16). The increase in lost time injuries was due to one additional injury in the comparable period.
o A significant focus has been placed on enhancing access control measures, which contributed to more accurate reporting of man hours worked. This improved accuracy also impacted the reported LTIFR.
· Environmental Performance
o Total emissions increased to 42.85 kg CO2e per tonne Chromite (FY2023: 40.91). This increase reflects a 4.5% rise in greenhouse gas emissions compared to the previous year.
o Notably there was a 22.0% increase in feed and a 20% increase in production of chrome concentrate. This growth is associated with the deployment of 222 trucks per day for delivering both ROM material and dispatching PGM bearing concentrates, along with the relevant yellow machines used in the operations.
· Electricity Consumption
o Electricity consumption increased by 2.5% to 33.86 kWh per tonne of chrome produced (FY2023: 33.04 kWh per tonne of chrome produced).
o All Jubilee's plants are fitted with diesel generators to ensure continuous operations during loadshedding periods. There was a total of 6 077 generator hours, which also contributed to an increase in Scope 1 emissions.
o Generators contributed to a 71% increase in diesel consumption compared to the comparative year, however yellow machines' diesel consumption decreased by 12%.
· Corporate social responsibility
o Jubilee conducts comprehensive community baseline and needs assessments in South Africa involving data collection, surveys and focussed group discussions to identify areas where communities lack access to essential and basic water, sanitation and other facilities.
o Key initiatives include social upliftment of which childhood development remains a significant social responsibility in South Africa.
o Furthermore, improvement of infrastructure and facilities provides communities with access to clean water and proper sanitation facilities, schools and clinics.
o Local and preferential procurement is a cornerstone of Jubilee's community development strategy that demonstrates a commitment to supporting and diversifying local economies.
Looking forward to FY2025
· Chrome concentrate production guidance is 1.65 million tonnes (6.6% increase year-on-year), and 6E PGM production guidance is 36 000oz (similar year-on-year).
· Copper units production guidance of between 5 850 tonnes (71.0% year-on-year production increase) and 7 500 (119.2% year-on-year production increase) tonnes.
Group financial performance analysis for the year ending 30 June 2024
Change in presentation currency
The Group has changed its presentation currency for financial results from GBP to US$. The rationale for the change is to present the Group's results in US$ to align with industry norms and to assist with comparability of financial information. The majority of the Group's revenues are also recognised in US$. This change in presentation currency constitutes a voluntary change in accounting policy under IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors. Consequently, the change requires the restatement of comparative figures.
Management believes that reporting in US$ provides a more relevant representation of the Group's financial position, funding and treasury functions, the Group's financial performance and cash flows.
The functional currencies, which are the South African Rand (ZAR) and Zambian Kwacha (ZMW), remain unchanged as they represent the primary economic environments in which the Group operates. Foreign exchange exposures, therefore, remain unaffected by the change. However, the foreign currency translation reserve will now be presented in US$ due to the difference between the functional currencies and the Group's presentation currency.
Exchange rates and their impact on results
Jubilee's subsidiaries are incorporated in multiple jurisdictions including South Africa (ZAR), Zambia (ZMW), Mauritius (US$), the United Kingdom (£/GBP) and Australia (AUD). The Group's operating subsidiaries are in South Africa and Zambia where revenue is invoiced in US$ and recorded in ZAR and ZMW, respectively. Costs incurred in South Africa are in ZAR. Costs incurred in Zambia are in both ZMW and US$. The functional currency for South Africa is ZAR and for Zambia it is ZMW, while the Group's reporting currency is United States Dollars (US$).
Year-on-year changes in the currency rates, respectively, must be considered when comparing year-on-year results. During the period under review, spot and average exchange rates moved as illustrated below.
FY2024 | FY2023 | % change | |
Spot exchange rate | |||
US$/ZAR | 18.16 | 18.83 | (3.6%) |
US$/ZMW | 24.00 | 17.54 | 36.8% |
US$/GBP | 0.79 | 0.79 | (-%) |
Average exchange rate | |||
US$/ZAR | 18.70 | 17.75 | 5.4% |
US$/ZMW | 23.48 | 17.70 | 32.7% |
US$/GBP | 0.79 | 0.83 | (4.8%) |
Revenue
Copper units' revenue decreased by 8.9% to US$18.5 million (FY2023: US$20.3 million) due to:
o The average copper unit revenue received decreased by 6.5% to US$6 964/t (FY2023: US$7 451/t). The lower average copper revenue per unit was due to an increase in copper sulphide concentrate sales year- on-year. In the current year, copper sales from sulphide concentrates accounted for 57% of the group's total copper sales (FY2023: 24%).
o Copper units sold decreased by 2.7% to 2 655 tonnes (FY2023: 2 728 tonnes)
o Copper contributed 9.0% (FY2023: 11.9%) to total revenue.
Chrome revenue increased by 54.8% to US$150.2 million (FY2023: US$97.0 million) driven by:
o Chrome concentrate tonnes sold increasing by 23.1% to 1 569 817 tonnes in FY2024 (FY2023: 1 275 558 tonnes)
o Chrome revenue supported by a favourable average chrome concentrate price per tonne received increasing by 4.8% to US$305/t (FY2023: US$291/t).
o Chrome contributed 73.1% (FY2023: 56.8%) to Group revenue.
PGM revenue decreased by 31.4% to US$36.7million (FY2023: US$53.5 million) as a result of:
o Impacted significantly by challenging PGM pricing environment resulting in a 21.2% decrease in the average US$ PGM basket price to US$1 349/oz (FY2023: US$1 713/oz).
o PGM ounce production for FY2024 decreased by 14.2% to 36 411oz (FY2023: 42 433oz) offset by the significant increase in chrome production given the prioritisation to improved economic merits of our chrome material.
o PGMs contributed 17.9% (FY2023: 31.3%) to Group revenue.
Cost of production
Cost of production increased by 27.3% to US$169.4 million (FY2023: US$133.1 million). The increase in the Group's production costs was primarily driven by the sourcing of additional chrome-bearing ore to process, which enhanced the Group's chrome revenue and production profile.
Cost of production for the chrome and PGM operations in South Africa contributed 93.27% of the Group's cost of production amounting to US$158.0 million (FY2023: US$118.7 million (89.2%)).
The main categories of cost of production for chrome and PGM operations include:
o Electricity costs increased by 46.7% in South Africa to US$4.4 million (FY2023: US$3.0 million) due to continued tariff increases, higher chrome production and diesel generation costs to counter the power challenges in South Africa.
o Salaries and wages increased by 56.4% to US$12.2 million (FY2023: US$7.8 million) contributing 7.2% of the Group's total cost of production (FY2023: 5.9%). The increase is mainly driven by new chrome projects that came online during the period under review.
o Mining and processing costs increased by 31.0% to US$141.4 million (FY2023: USS$107.9 million), mainly driven by a 31% increase in ROM and tailings costs as the chrome operations expanded into own-sourced material during the period under review. ROM and tailings costs contributed 53.15% of the Group's total cost of production (FY2023: 51.64%).
Cost of production for the Zambian operations decreased by 20.8% to US$11.4 million (FY2023: US$14.4 million) due to the sourcing and processing of high-grade copper bearing concentrates at Sable and Roan providing improved copper margins. The Zambian operations contributed 6.73% of the Group's cost of production (FY2023: 10.8%).
EBITDA
EBITDA decreased to US$27.7 million (FY2023: US$29.8 million) driven mainly by decreased earnings from the Group's PGM operations. The table below sets out the contribution of each operating unit to the Group's EBITDA:
FY2024 | Copper | Chrome | PGM | Corporate | Total |
Figures in US$ |
|
|
|
|
|
Profit before taxation | 4 181 253 | 14 229 269 | (6 126 729) | (3 641 433) | 8 642 360 |
Depreciation, amortisation and impairments | 1 438 159 | 1 629 900 | 8 700 230 | 524 807 | 12 293 096 |
Investment revenue | - | (125 426) | (763 415) | (1 161 635) | (2 050 476) |
Finance costs | 1 486 893 | 2 112 865 | 4 909 232 | 324 095 | 8 833 085 |
EBITDA FY2024 | 7 106 305 | 17 846 608 | 6 719 318 | (3 954 166) | 27 718 065 |
FY2023 | Copper | Chrome | PGM | Corporate | Total |
Profit before taxation | (1 095 073) | 5 566 282 | 12 799 618 | (2 482 349) | 14 788 478 |
Depreciation, amortisation and impairments | 2 087 686 | 316 535 | 7 903 179 | 471 510 | 10 778 910 |
Investment revenue | - | (134 829) | (780 368) | (1 029 264) | (1 944 461) |
Finance costs | 1 057 100 | 1 211 564 | 3 950 282 | - | 6 218 946 |
EBITDA FY2023 | 2 049 713 | 6 959 552 | 23 872 711 | (3 040 103) | 29 841 873 |
Operating expenses
The Group's operating expenses increased by 26.7% to US$24.2 million (FY2023: US$19.1 million). The previous period included a previously recognised upward fair value adjustment on chrome bearing tailings in the amount of US$4.2 million.
Finance cost
Finance cost increased by 41.9% to US$8.8 million (FY2023: US$6.2 million). The increase is mainly due to increased banking facilities of US$5.4 million to fund working capital requirements to support increased chrome and copper production for the period under review as well as an increase in borrowings to fund the Group's expansion in Zambia.
Fair value adjustments - Business Combination
In 2018, Jubilee acquired 100% of Enviro Mining Limited from Kendrick Resources, thereby securing full ownership and control over Kabwe Operations Limited during June 2020. The acquisition resulted in the recognition of a fair valuation liability of US$3.5 million, contingent on the earnings payable from the Kabwe Project. Subsequent to the acquisition, the fair value liability was reassessed following recent project assessments, leading to a downward adjustment of US$3.5 million in the liability's fair value.
Capital expenditure
During the period, the Group invested cash of US$39.9 million (FY2023: US$65.9 million) in capital and intangible expenditure and other assets to expand its South African chrome operations and to continue with the upgrade and expansion of its copper processing facilities in Zambia.
FY2024 | Copper | Chrome and PGM | Exploration | Total |
Figures in US$ |
|
|
|
|
Capital Expenditure | 15 290 810 | 13 769 914 | - | 29 060 724 |
Intangible Expenditure | 1 782 606 | 7 896 466 | 122 200 | 9 801 272 |
Business combination | 250 000 | - | - | 250 000 |
Other assets | 151 398 | 612 304 | - | 763 702 |
Total | 17 474 814 | 22 278 684 | 122 200 | 39 875 698 |
FY2023 | Copper | Chrome and PGM | Exploration | Total |
Capital Expenditure | 34 842 692 | 18 065 089 | - | 52 907 781 |
Intangible Expenditure | 2 393 022 | 8 433 030 | 298 589 | 11 124 641 |
Other assets | 372 091 | 1 495 895 | - | 1 867 986 |
Total | 37 607 805 | 27 994 014 | 298 589 | 65 900 408 |
Key investments during the year were the acquisition of the Munkoyo open-pit mining project for US$1.75 million through cash of US$250 000 and the issuance of 15.1 million shares through an asset-for-share transaction and the Company's investment in the large Waste Rock Project.
An amount of US$2.5 million advanced to secure the rights to the large Waste Rock Project. Under the large Waste Rock Project acquisition agreement - Jubilee has until 6 November 2024 to complete its due diligence and elect to either acquire the asset or the company holding the rights to the large Waste Rock Project material. Post the period end, Jubilee has requested an extension of the due diligence period to January 2025 to ensure sufficient time for the technical and commercial terms to analyse the results of the industrial trial. The advance was made as part of the overall acquisition price of US$30 million, payable quarterly over 18 months, contingent on the successful completion of a due diligence by Jubilee. According to the terms of the agreement, Jubilee will forfeit the payments made to date, should it conclude not to proceed with the large Waste Rock Project. An amount of US$4.95 million has been advanced up to the date of this release.
Cash and debt facilities
At the year end, the Group's cash and cash equivalents stood at US$19.3 million (FY2023: US$15.9 million). Net cash generated from operating activities totalled US$17.6 million (FY2023: US$49.9 million), impacted predominately by a lower change in working capital period-on-period of US$17.3 million. During the period under review the Company increased the usage of its revolving credit facilities with ABSA Bank Limited in the amount of US$23.3 million (FY2023: US$17.9 million), and refinanced these facilities post the period in July 2024. These facilities are for a twelve-month period with the option to extend for a further twelve month period from refinancing.
Earnings per share and equity
The Group's earnings per share decreased by 63.8% to 0.21 US$ cents or 0.17 pence (FY2023: 0.58 US$ cents or 0.48 pence), partly due to the issue of 236.4 million new Jubilee ordinary shares (Shares) in January 2024 to raise funding for the Group's Zambian operations. A further 16.1 million Shares were issued pursuant to warrant and option exercises and 15.1 million Shares were issued in relation to the acquisition of an open-pit mining operation Munkoyo, in Zambia.
Earnings attributable to owners of the parent decreased by 61.9% to US$6.0 million (FY2023: US$15.5 million). The Group's equity remained static at US$259.0 million (FY2023: US$259.2 million), predominately due to the profit after taxation off-set by a 79.9% increase in foreign exchange currency translation losses incurred on translation of the Group's foreign operations in the amount of US$26.5 million (FY2023: US$14.8 million). This is due to the weakening ZAR and ZMW functional currencies against the US$ reporting currency in the period under review.
Directorship changes
Dr Evan Kirby resigned from the Jubilee board effective 31 March 2024.
AIM listing
The financial information for the year ended 30 June 2024 does not constitute statutory accounts as defined in sections 435(1) and 435(2) of the UK Companies Act 2006 (Companies Act 2006) but has been derived from those accounts. Statutory accounts for the year ended 30 June 2023 have been delivered to the Registrar of Companies and those for 2024 will be delivered following the Company's Annual General Meeting. Crowe UK LLP, the external auditor registered in the UK, has reported on these accounts for the year ended 30 June 2024.
Audit Opinion
The audit report for 30 June 2024 was unqualified, did not include a reference to any matters to which auditors draw attention by way of emphasis of matter, and did not contain a statement under section 498(2) or 498(3) of the Companies Act 2006. These statutory accounts have been prepared in accordance with IFRS and IFRS Interpretations Committee interpretations adopted for use by the European Union, with those parts of the Companies Act 2006 applicable to companies reporting under IFRS.
Integrated Annual Report
The Integrated Annual Report for the year ended 30 June 2024, and the Notice of Annual General Meeting are expected to be published on or about 14 October 2024. Physical copies of the Annual Report will be posted to shareholders who have elected to receive them.
3 October 2024
For further information visit www.jubileemetalsgroup.com, follow Jubilee on Twitter (@Jubilee_Metals) or contact:
Jubilee Metals Group PLC
Leon Coetzer (CEO)
Tel: +27 (0) 11 465 1913
Nominated Adviser - SPARK Advisory Partners Limited
Andrew Emmott/James Keeshan
Tel: +44 (0) 20 3368 3555
PR & IR Adviser - Tavistock
Jos Simson/ Gareth Tredway
Tel: +44 (0) 207 920 3150
Joint Broker - RBC Capital Markets
Farid Dadashev/Jamil Miah
Tel +44 (0) 20 7653 4000
Joint Broker - Zeus Capital
Harry Ansell/Katy Mitchell
Tel: +44 (0) 20 7220 1670/+44 (0) 113 394 6618
JSE Sponsor - Questco Corporate Advisory Proprietary Limited
Alison McLaren
Tel: +27 (0)11 011 9207
Group statements of financial position
at 30 June 2024
Figures in United States Dollars (US$) | Note | FY2024 | FY2023 | FY2022 |
| (Restated) | (Restated) | ||
Assets | ||||
Non-current assets | ||||
Property, plant and equipment | 114 520 955 | 112 303 429 | 84 869 888 | |
Intangible assets | 106 652 664 | 101 196 677 | 95 379 452 | |
Other financial assets | 19 102 411 | 17 901 240 | 17 089 148 | |
Inventories | 17 015 084 | 17 100 213 | 5 277 967 | |
Deferred tax | 6 013 455 | 7 508 375 | 15 190 450 | |
263 304 569 | 256 009 934 | 217 806 905 | ||
Current assets |
| |||
Other financial assets | - | 428 056 | 852 402 | |
Derivative financial instruments | 552 109 | - | - | |
Inventories | 32 329 465 | 45 156 976 | 33 687 817 | |
Tax assets | 1 133 583 | 880 511 | 1 203 339 | |
Trade and other receivables | 64 305 137 | 37 579 992 | 67 217 814 | |
Contract assets | 33 013 201 | 24 068 359 | 22 926 344 | |
Cash and cash equivalents | 19 322 996 | 15 948 656 | 19 455 073 | |
150 656 491 | 124 062 550 | 145 342 789 | ||
Total assets | 413 961 060 | 380 072 484 | 363 149 694 | |
Equity and liabilities |
| |||
Equity attributable to equity holders of parent |
| |||
Share capital and share premium | 6 | 264 953 093 | 246 783 193 | 239 968 379 |
Reserves | (50 850 393) | (26 058 429) | (11 165 912) | |
Retained income | 40 365 168 | 34 410 270 | 18 860 329 | |
254 467 868 | 255 135 034 | 247 662 796 | ||
Non-controlling interest | 4 495 849 | 4 045 695 | 4 506 394 | |
258 963 717 | 259 180 729 | 252 169 190 | ||
Liabilities |
| |||
Non-current liabilities |
| |||
Other financial liabilities | - | 3 549 568 | 3 404 995 | |
Lease liabilities | 2 520 268 | 30 570 | 436 842 | |
Deferred tax liability | 18 208 504 | 17 538 777 | 22 131 024 | |
Provisions | 932 978 | 1 187 158 | 1 128 828 | |
21 661 750 | 22 306 073 | 27 101 689 | ||
Current liabilities |
| |||
Other financial liabilities | 4 751 055 | - | 1 257 | |
Trade and other payables | 74 791 056 | 75 512 719 | 70 373 166 | |
Contract liabilities | 25 761 787 | - | - | |
Banking facilities | 10 | 23 311 917 | 17 942 738 | 10 288 741 |
Current tax liabilities | 4 057 888 | 5 130 225 | 3 215 651 | |
Lease liabilities | 661 890 | - | - | |
133 335 593 | 98 585 682 | 83 878 815 | ||
Total liabilities | 154 997 343 | 120 891 755 | 110 980 504 | |
Total equity and liabilities | 413 961 060 | 380 072 484 | 363 149 694 | |
During the period under review, the Group changed its reporting currency to United States Dollars (US$). The comparative financial information has been restated accordingly to reflect this change from GBP to US$. For further details, please refer to note 2.
Group statements of comprehensive income
or the year ended 30 June 2024
Figures in United States Dollars (US$) | Note | FY2024 | FY2023 |
| (Restated) | ||
| |||
Revenue | 205 404 178 | 170 900 977 | |
Cost of sales | (169 425 111) | (133 101 963) | |
Gross profit | 35 979 067 | 37 799 014 | |
Operating expenses | (24 193 702) | (19 113 234) | |
Operating profit | 11 785 365 | 18 685 780 | |
Investment revenue | 2 050 476 | 1 944 461 | |
Fair value adjustments | 5 | 3 639 604 | 377 184 |
Finance costs | (8 833 085) | (6 218 947) | |
Profit before taxation | 8 642 360 | 14 788 478 | |
Taxation | (2 254 456) | 828 575 | |
Profit for the year | 6 387 904 | 15 617 053 | |
Earnings for the year attributable to: |
| ||
Owners of the parent | 5 954 898 | 15 549 940 | |
Non-controlling interest | 433 006 | 67 113 | |
6 387 904 | 15 617 053 | ||
Earnings per share (US$ cents) | 3 | 0.21 | 0.58 |
Diluted earnings per share (US$ cents) | 3 | 0.20 | 0.57 |
Basic earnings per share (pence) | 0.17 | 0.48 | |
Diluted basic earnings per share (pence) | 0.16 | 0.47 | |
Reconciliation of other comprehensive income |
| ||
Profit for the year | 6 387 904 | 15 617 053 | |
Other comprehensive income: |
| ||
Exchange differences on translation foreign operations | (26 485 489) | (14 719 254) | |
Total comprehensive (loss)/profit | (20 097 585) | 897 799 | |
Total comprehensive (loss)/profit attributable to: | |||
Owners of the parent | (20 457 177) | 1 358 498 | |
Non-controlling interest | 359 592 | (460 699) | |
(20 097 585) | 897 799 | ||
Group statements of changes in equity
for the year ended 30 June 2024
Figures in United States Dollars (US$) |
Share capital and share premium |
Foreign currency Translation reserve |
Merger reserve |
Share- based payment reserve |
Total reserves |
Retained income |
Total attributable to equity holders of the Company |
Non- controlling interest |
Total equity |
Balance at 30 June 2022 (Restated) | 239 968 379 | (53 791 329) | 36 826 515 | 5 798 902 | (11 165 912) | 18 860 329 | 247 662 796 | 4 506 394 | 252 169 190 |
Changes in equity | |||||||||
Profit for the year | - | - | - | - | - | 15 549 941 | 15 549 941 | - | 15 549 941 |
Other comprehensive income | - | (14 191 441) | - | - | (14 191 441) | - | (14 191 441) | (460 699) | (14 652 140) |
Total comprehensive income for the year | - | (14 191 441) | - | - | (14 191 441) | 15 549 941 | 1 358 500 | (460 699) | 897 801 |
Issue of share capital net of costs | 5 534 614 | - | - | - | - | - | 5 534 614 | - | 5 534 614 |
Share warrants exercised | 1 176 405 | - | - | (1 176 405) | (1 176 405) | - | - | - | - |
Share options exercised/lapsed | 103 795 | - | - | (103 795) | (103 795) | - | - | - | - |
Share options issued | - | - | - | 579 124 | 579 124 | - | 579 124 | - | 579 124 |
Total changes | 6 814 814 | (14 191 441) | - | (701 076) | (14 892 517) | 15 549 941 | 7 472 238 | (460 699) | 7 011 539 |
Balance at 30 June 2023 (Restated) | 246 783 193 | (67 982 770) | 36 826 515 | 5 097 826 | (26 058 429) | 34 410 270 | 255 135 034 | 4 045 695 | 259 180 729 |
Changes in equity |
|
|
|
|
|
|
|
|
|
Profit for the year | - | - | - | - | - | 5 954 898 | 5 954 898 | 433 006 | 6 387 904 |
Other comprehensive income | - | (26 412 074) | - | - | (26 412 074) | - | (26 412 074) | (73 414) | (26 485 488) |
Total comprehensive income for the year | - | (26 412 074) | - | - | (26 412 074) | 5 954 898 | (20 457 176) | 359 592 | (20 097 584) |
Issue of share capital net of costs | 17 703 892 | - | - | - | - | - | 17 703 892 | - | 17 703 892 |
Share warrants exercised | 63 585 | - | - | (63 585) | (63 585) | - | - | - | - |
Share warrants issued | - | - | - | 465 041 | 465 041 | - | 465 041 | - | 465 041 |
Share options exercised | 402 423 | - | - | (402 423) | (402 423) | - | - | - | - |
Share options issued | - | - | - | 1 621 077 | 1 621 077 | - | 1 621 077 | - | 1 621 077 |
Business Combination | - | - | - | - | - | - | - | 90 562 | 90 562 |
Total changes | 18 169 900 | (26 412 074) | - | 1 620 110 | (24 791 964) | 5 954 898 | (667 166) | 450 154 | (217 012) |
Balance at 30 June 2024 | 264 953 093 | (94 394 844) | 36 826 515 | 6 717 936 | (50 850 393) | 40 365 168 | 254 467 868 | 4 495 849 | 258 963 717 |
• The foreign currency translation reserve includes all differences arising from the translation of financial statements of foreign operations. These differences result from using the closing exchange rate at the end of the financial year for the statement of financial position and the average exchange rate during the financial year for statement of comprehensive income.
• The share-based payment reserve is the value of equity-settled share-based payment transactions. This reserve accounts for the share retention incentives granted, recognised over the vesting period of the related share-based payment awards. The value within this reserve represents the cumulative expense recognised in the financial statements for share-based payments that are settled through equity issuance.
• Non-controlling interest is the difference between the carrying amount of non-controlling interests and the consideration paid or received for transactions involving non-controlling interests, provided these transactions do not result in a loss of control over the subsidiary.
Group statements of cash flows
for the year ended 30 June 2024
Figures in United States Dollars (US$) | Note | FY2024 | FY2023 |
| (Restated) | ||
| |||
Cash flows from operating activities | |||
Cash generated from operations | 9 | 27 456 942 | 56 325 816 |
Interest income | 2 050 476 | 1 944 461 | |
Finance costs | (8 833 085) | (6 218 947) | |
Taxation paid | (3 040 154) | (2 177 416) | |
Net cash from operating activities | 17 634 179 | 49 873 914 | |
Cash flows from investing activities |
| ||
Purchase of property, plant and equipment | (29 060 724) | (52 941 790) | |
Sale of property, plant and equipment | - | 34 009 | |
Purchase of intangible assets | (9 801 272) | (11 124 641) | |
Purchase of non-current inventory | - | (1 909 763) | |
Increase in other financial assets | (763 702) | 41 777 | |
Business Combination | 11 | (250 000) | - |
Net cash from investing activities | (39 875 698) | (65 900 408) | |
Cash flows from financing activities |
| ||
Net proceeds on share issues | 16 213 497 | 5 534 614 | |
Proceeds from revolving credit facilities | 5 369 179 | 7 653 997 | |
Increase/(decrease) in other financial liabilities | 4 751 055 | (1 257) | |
Lease payments |
| (490 541) | (406 272) |
Net cash from financing activities | 25 843 190 | 12 781 082 | |
Total cash movement for the year | 3 601 671 | (3 245 412) | |
Total cash at the beginning of the year | 15 948 657 | 19 455 073 | |
Effect of exchange rate movement on cash balances | (227 332) | (261 005) | |
Total cash at end of the year | 19 322 996 | 15 948 656 | |
Notes to the Group annual financial statements
for the year ended 30 June 2024
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 2024 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 accounting standards, International Financial Reporting Standards (IFRS) and IFRC interpretations, in conformity with the requirements of the Companies Act 2006. The financial statements are presented in United States Dollars.
2. Change in presentation currency
The Group has changed its presentation currency for financial results from GBP to US$. The rationale for the change is to present the Group's results in US$ to align with industry norm and to assist with comparability of financial information. The majority of the Group's revenues are also recognised in US$. This change in presentation currency constitutes a voluntary change in accounting policy under IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors. Consequently, the change requires the restatement of comparative figures.
Management believes that reporting in US$ provides a more relevant representation of the Group's financial position, funding and treasury functions, financial performance and cash flows. The functional currencies, which are the South African Rand (ZAR) and Zambian Kwacha (ZMK), remain unchanged as they represent the primary economic environments in which the Group operates. Foreign exchange exposures, therefore, remain unaffected by the change. However, the foreign currency translation reserve will now be presented in US$ due to the difference between the functional currencies and the Group's presentation currency.
3. Earnings per share
Basic earnings per share is calculated by dividing the profit for the year attributable to equity holders of the parent by the weighted average number of ordinary shares outstanding during the year. The following table reflects the income and share data used in the basic earnings per share computation:
Figures in United States Dollars (US$) | FY2024 | FY2023 (Restated) |
Earnings attributable to ordinary equity holders of the parent (US$) | 5 954 898 | 15 549 940 |
Weighted average number of shares for basic earnings per share | 2 856 010 000 | 2 687 683 403 |
Effect of dilutive potential ordinary shares |
| |
- Share options and warrants | 71 057 956 | 45 560 690 |
Diluted weighted average number of shares for diluted earnings per share | 2 927 067 956 | 2 733 244 093 |
Basic earnings per share (US$ cents) | 0.21 | 0.58 |
Diluted basic earnings per share (US$ cents) | 0.20 | 0.57 |
Basic earnings per share (pence) | 0.17 | 0.48 |
Diluted basic earnings per share (pence) | 0.16 | 0.47 |
There have been no other transactions involving ordinary shares or potential ordinary shares between the reporting date and the date 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.
4. Dividend per share
No dividends were declared during the current reporting period to shareholders (FY2023: Nil).
5. Fair value adjustments
The Group had the following fair value adjustments during the period under review:
Figures in United States Dollars (US$) | FY2024 | FY2023 |
|
| (Restated) |
|
|
|
Fair value adjustments - Business combinations (Note 11) | 3 549 568 | - |
Fair value adjustments - Other financial assets non-current | 90 036 | 377 184 |
Total | 3 639 604 | 377 184 |
In 2018, Jubilee acquired 100% of Enviro Mining Limited from Kendrick Resources, thereby securing full ownership and control over Kabwe Operations Limited during June 2020. The acquisition resulted in the recognition of a fair valuation liability of US$3 549 568, contingent on the earnings payable from the Kabwe Project. Subsequent to the acquisition, the fair value of this liability was reassessed following recent project assessments, leading to a downward fair value adjustment of US$3 549 568 (FY2023: US$ Nil) in the liability's fair value.
6. Share capital
Figures in United States Dollars (US$) | FY2024 | FY2023 |
| (Restated) | |
| ||
Authorised | ||
The share capital of the Company is divided into an unlimited number of ordinary shares of £0.01 each. | ||
Issued share capital fully paid | ||
Ordinary share capital (US$) | 42 272 464 | 38 830 652 |
Share premium (US$) | 222 680 629 | 207 952 541 |
Total issued capital (US$) | 264 953 093 | 246 783 193 |
The Company issued the following ordinary shares during the period:
Date issued | Number of shares | Issue price pence |
Purpose |
Opening balance at 1 July 2023 | 2 738 129 981 | ||
05-Jan-24 | 236 363 636 | 5.50 | Placing |
12-Mar-24 | 5 000 000 | 1.00 | Options |
12-Mar-24 | 4 000 000 | 3.50 | Options |
06-Jun-24 | 2 000 000 | 4.00 | Options |
06-Jun-24 | 2 000 000 | 6.00 | Options |
06-Jun-24 | 3 068 740 | 4.00 | Warrants |
28-Jun-24 | 15 096 798 | 7.81 | Acquisition |
3 005 659 155 |
On 5 January 2024 the Company raised US$16.5 million to fund its copper strategy in Zambia. The Company did not issue any new shares following the reporting period under review. During the year new share transaction costs accounted for as a deduction from the share premium account amounted to US$0.94 million (FY2023: US$ Nil). The company recognised a share-based payment expense in the share premium account in an amount of US$0.28 million (FY2023: US$1.28 million) in accordance with section 610 (2) of the United Kingdom Companies Act 2006. The charge relates to share-based payments accounted for as a deduction from the share premium account.
7. Warrants
At year-end and at the last practicable date the Company had the following warrants outstanding:
Issue Date | Warrant holder | Purpose | Number of warrants | Issue price (pence) | Expiry date | Share price at issue date (pence) |
19-Nov-19 | Pershing Nominees | Placing fees | 4 750 010 | 4.0 | 19-Nov-24 | 4.1 |
22-Jun-20 | Pershing Nominees | Placing fees | 750 000 | 3.4 | 22-Jun-25 | 3.9 |
21-Jan-21 | Pershing Nominees | Placing fees | 4 036 431 | 13.0 | 21-Jan-26 | 13.2 |
07-Dec-23 | Tennant Metals Group | Metal trade funding fees | 22 279 492 | 7.1 | 07-Dec-25 | 5.2 |
31 815 933 |
Reconciliation of the number of warrants in issue | FY2024 | FY2023 (Restated) |
Opening balance | 12 605 181 | 86 267 125 |
Issued during the year | 22 279 492 | - |
Expired/exercised during the year | (3 068 740) | (73 661 944) |
Closing balance | 31 815 933 | 12 605 181 |
The weighted average life remaining of share warrants at the year-end was 1.17 years (FY2023: 1.12) and the weighted average exercise price 5.97 (FY2023: 9.45) pence. Expected volatility was determined by calculating the historical volatility of the Group's share price over the last year. There are no performance conditions associated with the warrants issued. Warrants have different lives and for the purposes of valuing the warrants an expected warrant life of three years has been applied.
8. Share-based payments
Reconciliation of the number of options in issue | FY2024 | FY2023 (Restated) |
Opening balance | 69 650 000 | 129 900 000 |
Exercised during the year | (13 000 000) | (10 750 000) |
Issued during the year | 61 030 000 | - |
Expired/cancelled during the year | - | (49 500 000) |
Closing balance | 117 680 000 | 69 650 000 |
Reconciliation of the share-based payment reserve:
Figures in United States Dollars (US$) | FY2024 | FY2023 |
| (Restated) | |
| ||
Opening balance | 5 097 826 | 5 798 902 |
New options granted | 1 621 077 | 579 124 |
Options lapsed/exercised | (402 423) | (103 795) |
Share warrants issued | 465 041 | - |
Share warrants exercised/lapsed | (63 585) | (1 176 405) |
Closing balance | 6 717 936 | 5 097 826 |
9. Cash generated from operations
Figures in United States Dollars (US$ | FY2024 | FY2023 |
|
| (Restated) |
|
| |
Profit before taxation | 8 642 360 | 14 788 477 |
Adjustments for: |
| |
Depreciation and amortisation | 12 293 096 | 10 778 910 |
Loss on sale of fixed assets | 1 839 | (4 510) |
Interest received | (2 050 476) | (1 944 461) |
Finance costs | 8 833 085 | 6 218 946 |
Fair value adjustments | (3 639 604) | (377 184) |
Effect of exchange differences on translation | (970 153) | 5 853 590 |
Share-based payments | 2 083 646 | 579 124 |
Other movements | (790 481) | 58 331 |
Changes in working capital: |
| |
Inventories | 12 912 646 | (13 260 772) |
Trade and other receivables | (34 899 139) | 28 495 810 |
Trade and other payables | 25 040 123 | 5 139 555 |
27 456 942 | 56 325 816 |
Net debt reconciliation
Figures in United States Dollars (US$) | FY2024 | FY2023 |
| ||||||||||||||||||||
| (Restated) |
| |||||||||||||||||||||
|
| ||||||||||||||||||||||
Net debt comprises the following: |
| ||||||||||||||||||||||
Revolving and general banking facilities | (23 311 917) | (17 942 739) |
| ||||||||||||||||||||
Cash and cash equivalents | 19 322 995 | 15 948 656 |
| ||||||||||||||||||||
Borrowings | (4 751 055) | - |
| ||||||||||||||||||||
Lease liabilities | (3 182 158) | (30 570) |
| ||||||||||||||||||||
Net Debt | (11 922 135) | (2 024 653) |
| ||||||||||||||||||||
Debt interest rate profile |
|
| |||||||||||||||||||||
Debt at fixed interest rates | (4 751 055) | - |
| ||||||||||||||||||||
Debt at variable interest rates | (26 494 075) | (17 973 309) |
| ||||||||||||||||||||
(31 245 130) | (17 973 309) |
| |||||||||||||||||||||
|
|
|
|
| |||||||||||||||||||
Liabilities from financing activities |
Borrowings |
Leases |
Sub-total | Banking facilities | Total |
| |||||||||||||||||
Debt as at 01 July 2022 (Restated) | - | (492 557) | (492 557) | (10 725 592) | (11 218 149) |
| |||||||||||||||||
Cash flows | |||||||||||||||||||||||
- New funding | - | - | - | (3 824 185) | (3 824 185) |
| |||||||||||||||||
- Repayment (Capital) | - | 390 717 | 390 717 | - | 390 717 |
| |||||||||||||||||
- Repayment (Interest) | - | 37 828 | 37 828 | 931 327 | 969 155 |
| |||||||||||||||||
Realised foreign exchange differences | - | 10 655 | 10 655 | (3 181 783) | (3 171 128) |
| |||||||||||||||||
Other movements | - | 22 787 | 22 787 | (1 142 506) | (1 119 719) |
| |||||||||||||||||
Debt as at 30 June 2023 (Restated) | - | (30 570) | (30 570) | (17 942 739) | (17 973 309) |
| |||||||||||||||||
Cash flows |
|
|
| ||||||||||||||||||||
- New funding | (4 728 121) | - | (4 728 121) | (5 066 107) | (9 794 228) |
| |||||||||||||||||
- Repayment (Capital) | - | 634 175 | 634 175 | - | 634 175 |
| |||||||||||||||||
- Repayment (Interest) | 77 615 | 391 759 | 469 374 | 1 960 616 | 2 429 990 |
| |||||||||||||||||
New leases | - | (3 642 129) | (3 642 129) | - | (3 642 129) |
| |||||||||||||||||
Realised foreign exchange differences | (100 549) | (133 048) | (233 597) | (1 797 925) | (2 031 522) |
| |||||||||||||||||
Other movements | - | (402 345) | (402 345) | (465 762) | (868 107) |
| |||||||||||||||||
Debt as at 30 June 2024 | (4 751 055) | (3 182 158) | (7 933 213) | (23 311 917) | (31 245 130) |
| |||||||||||||||||
10. Banking Facilities
Figures in United States Dollars (US$) FY2024 FY2023
(Restated)
Revolving credit facilities - ABSA Bank Limited | 21 650 754 | 17 942 738 |
Jubilee has a revolving credit facility (RCF) with ABSA Bank (South Africa) Limited in the amount of US$16.5million.
The RCF is secured as follows:
· PLC corporate guarantee security cession and pledge over the issued capital and assets of certain South African Jubilee subsidiaries.
· Parent Shareholder Pledge and Cession from Jubilee including all shareholder loan claims and related rights.
· General Notarial Bond registered over relevant assets of Windsor SA, a wholly owned subsidiary of Jubilee.
The RCF is available for a period of 12 months and can be extended for a further 12 months by mutual agreement. The RCF bears interest rate at the aggregate of JIBAR plus a margin of 2.8%. At the period end the RCF was fully drawn. Interest in an amount of US$1.7 million (FY2023: US$1.2 million) was charged to profit or loss for the period under review.
At the period end, Jubilee had a revolving credit facility with ABSA Bank (Mauritius) Limited in the amount of US$5 million. The RCF is secured by a parent corporate guarantee, no pledge and subordination from Jubilee including all shareholder loan claims and related rights. The RCF is available for a period of 12 months and can be extended for a further 12 months by mutual agreement. The RCF bears interest at the daily compounded JIBAR plus a margin of 2.3%. The facility is used to fund working capital requirements for Jubilee's Zambian copper operations. At the period end Jubilee has drawn down US$5 million. Interest in an amount of US$ 0.39 million (FY2023: US$ 0.24 million) was charged to profit or loss for the period under review. Post the period end the RCF was increased to US$7.5 million on the same terms and conditions for a further 12 months from 9 July 2024.
General Banking Facility - First Rand Bank Limited | 1 661 163 | - |
On 6 June 2024, Jubilee through its wholly owned subsidiary Jubilee Treasury Management Services, entered into a general banking facility agreement (GBF) with First Rand Bank Limited. The agreement includes:
· A demand overdraft facility of US$11 million with a 12-month tenure from the available date of 6 June 2024 and subject to terms and conditions normal for this type of facility;
· A US$3.3 million commodity hedging facility subject to terms and conditions normal for this type of facility;
· A US$5.0 million facility for forward exchange contracts subject to terms and conditions normal for this type of facility.
The GBF is used to provide general banking treasury services to the Group companies to simplify banking relationships and to consolidate facilities. Interest of US$8 902 (FY2023: US$ Nil) on the demand overdraft facility was recognised in profit or loss for the period under review. The total GBF is subject to a guarantee in favour of First Rand Bank Limited by Jubilee. Interest is payable at First Rand Bank Limited's prime overdraft rate minus 45 basis points.
Total Banking Facilities | 23 311 917 | 17 942 738 |
Financial covenants
The financial covenants listed below are in place for the following facilities:
· The net debt-to-equity ratio must be less than 1.8:1 - ABSA facilities (revised to 2.25:1 post the period under review)
· The net debt-to-equity ratio must be less than 3:1 - RMB facilities
· The interest cover ratio must be greater than 4 times - ABSA facilities.
The financial covenants for the reporting period were met.
11. Business Combination
On 1 November 2023, Jubilee, through its subsidiary Sable Zinc Kabwe, entered into an agreement to acquire 95% of the issued share capital of Munkoyo Mining Limited (Munkoyo) for a total consideration of US$1.75 million. The acquisition concluded on 28 June 2024 and is classified as a business combination under IFRS 3 Business Combinations and is expected to enhance the supply of copper ore to the Sable Refinery, thereby securing feedstock for processing operations.
The total consideration for the acquisition was structured as follows:
· US$250 000 paid on 1 November 2023.
· On 28 June 2024, Jubilee exercised its option to finalise the acquisition by issuing 15 096 798 new Jubilee shares valued at US$1.5 million. The shares were issued at 7.81 pence per share, calculated based on the 30-day volume-weighted average price preceding the issuance date. Of the 15 096 798 shares issued, 1 509 680 shares (representing 10% of the total) are subject to a 24-month lock-in period from the date of issuance.
No goodwill has been recognised as part of this transaction, as the consideration paid was equal to the provisional fair value of the net assets acquired. The non-controlling interest (NCI) in Munkoyo has been measured at the proportionate share of the net identifiable assets at the acquisition date, amounting to US$90 562.
The transaction has been accounted for as a business combination in accordance with IFRS 3. The identifiable assets acquired, and liabilities assumed have been recognised at their provisional fair values as of the acquisition date. The fair value adjustments primarily relate to the recognition of intangible assets associated with the mining rights and the corresponding deferred tax liabilities. No significant subsequent events related to the business combination have been identified between the acquisition date and the reporting date. Management is actively working to conclude the accounting for the business combination and expects to complete the purchase price allocation within 6 months from the acquisition date, in accordance with IFRS 3 requirements.
The following table summarises the recognised amounts of assets acquired at the date of acquisition:
Figures in United States Dollars (US$) FY2024 FY2023
Assets acquired |
| |
Intangible asset | 2 629 374 | - |
Deferred tax | (788 812) | - |
Carrying value of the assets acquired | 1 840 562 | - |
Non-controlling interest | (90 562) | - |
Fair value of assets acquired | 1 750 000 | - |
Fair value of the consideration - Cash payments |
(250 000) |
- |
- Through the issue of the Acquisition Shares | (1 500 000) | - |
- | - |
12. Business segments
Segment information is presented as follows:
· Copper and cobalt - the processing of Copper and Cobalt containing materials;
· PGM and chrome - the processing of PGM and chrome containing materials; and
· Other - Exploration and corporate overheads
The Group's operations span over 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.
FY2024
Figures in United States Dollars (US$) | Copper and Cobalt | PGM and chrome |
Other |
Total |
|
Total Assets | 122 695 645 | 216 922 207 | 74 343 208 | 413 961 060 | |
Total Liabilities | 33 975 735 | 106 043 041 | 14 978 567 | 154 997 343 | |
Revenue | 18 487 721 | 186 916 457 | - | 205 404 178 | |
Gross Profit | 7 089 254 | 28 889 813 | - | 35 979 067 | |
Depreciation and Amortisation | (1 438 159) | (10 330 130) | (524 807) | (12 293 096) | |
Operating Expenses | (3 532 516) | (4 323 888) | (4 044 202) | (11 900 606) | |
Operating Profit | 2 118 579 | 14 235 795 | (4 569 009) | 11 785 365 | |
Investment revenue | - | 888 842 | 1 161 634 | 2 050 476 | |
Fair value adjustments | 3 549 567 | - | 90 037 | 3 639 604 | |
Net Finance costs | (1 486 893) | (7 022 097) | (324 095) | (8 833 085) | |
Profit before taxation | 4 181 253 | 8 102 540 | (3 641 433) | 8 642 360 | |
Taxation | 887 030 | (2 998 716) | (142 770) | (2 254 456) | |
Profit after Taxation | 5 068 283 | 5 103 824 | (3 784 203) | 6 387 904 | |
EBITDA | 7 106 305 | 24 565 926 | (3 954 166) | 27 718 065 | |
Capital expenditure | 15 290 810 | 13 769 914 | - | 29 060 724 | |
Intangible expenditure | 1 782 606 | 7 896 466 | 122 200 | 9 801 272 | |
FY2023 (Restated)
Figures in United States Dollars (US$) | Copper and Cobalt | PGM and chrome |
Other |
Total |
Total Assets | 127 449 866 | 177 832 411 | 74 790 209 | 380 072 486 |
Total Liabilities | 42 097 686 | 70 809 745 | 7 984 325 | 120 891 756 |
Revenue | 20 322 090 | 150 578 887 | - | 170 900 977 |
Gross Profit | 5 893 516 | 31 905 498 | - | 37 799 014 |
Depreciation and Amortisation | (2 087 686) | (8 219 714) | (471 510) | (10 778 910) |
Operating Expenses | (3 868 537) | (1 048 517) | (3 417 270) | (8 334 324) |
Operating Profit | (62 707) | 22 637 267 | (3 888 780) | 18 685 780 |
Investment revenue | - | 915 197 | 1 029 264 | 1 944 461 |
Fair value adjustments | - | - | 377 184 | 377 184 |
Net Finance costs | (1 057 100) | (5 161 847) | - | (6 218 947) |
Profit before taxation | (1 119 807) | 18 390 617 | (2482332) | 14 788 478 |
Taxation | 1 365 125 | (379 112) | (157 438) | 828 575 |
Profit after taxation | 245 318 | 18 011 505 | (2 639 770) | 15 617 053 |
EBITDA | 2 049 713 | 30 832 263 | (3 040 103) | 29 841 873 |
Capital expenditure | 34 876 701 | 18 065 089 | - | 52 941 790 |
Intangible expenditure | 2 398 022 | 8 433 030 | 298 589 | 11 124 641 |
13. Commitments
The Group had no material contingent liabilities in the current or prior reporting period. The Group had contracted outstanding open orders at period end of US$8.1 million. Outstanding orders in the current reporting period related primarily to the Roan front-end module construction.
The Group had the following parent guarantees in place at the period end:
· US$37.0 million in favour of Tennant Metals Corporation for metal trade financing facilities;
· US$22.5 million in favour of ABSA Bank Limited for revolving credit facilities (Note 10); and
· US$11.0 million in favour of First Rand Bank Limited for general banking facilities (Note 10).
Operating lease commitments, which fall due within the next financial year, amounted to US$3.2 million (FY2023: US$0.03 million).
14. Going concern
The Group closely monitors and manages its liquidity risk though cash flow forecasts and assessing sensitivities run for different scenarios including, but not limited to, changes in commodity and metal prices and different production profiles from the Group's business units. The Group had US$9.1 million (FY2023: US$2.5 million) of available debt facilities and US$19.3 million (FY2023: US$15.9 million) of cash and cash equivalents at 30 June 2024. Refer to note 10 for details of the Group's banking facilities. The Group meets its day‐to‐day working capital requirements through cash generated from operations and trade finance facilities.
The Group has considered the going concern forecast through to 31 December 2026, using a reasonable downside forecast assumptions on commodity and metal prices of Copper US$8 370, chrome 40%-42% of US$284/t and a PGM net basket price of US$924/oz.
The Group's forecast highlights that it will have sufficient liquidity headroom to meet its obligations, under both scenarios, in the ordinary course of business and will comply with financial covenants for the 12 months from the date of approval of the financial statements; in the reasonable downside case, this includes mitigating actions which are within management's control.
The board has a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the Group continues to adopt the going concern basis of accounting in preparation of the 30 June 2024 financial statements.
15. Events after the reporting period
15.1 Revolving Credit Facility - ABSA Bank Limited - South Africa
Post the period under review, during August 2024, the Company renewed its revolving credit facility in an amount of US$16 million with ABSA Bank Limited - South Africa.
The RCF is secured as follows:
• PLC corporate guarantee security cession and pledge over the issued capital and assets of certain South African Jubilee subsidiaries.
• Parent Shareholder Pledge and Cession from Jubilee including all shareholder loan claims and related rights.
• General Notarial Bond registered over relevant assets of Winsor SA, a wholly owned subsidiary of Jubilee.
The RCF is available for a period of 12 months and can be extended for a further 12 months by mutual agreement. The RCF bears interest rate at the aggregate of JIBAR plus a margin of 2.8%. At the period end the RCF was fully drawn. Interest in an amount of US$1.7 million (FY2023: US$1.2 million) was charged to profit or loss for the period under review.
15.2 Revolving Credit Facility - ABSA Bank Limited - Mauritius
Jubilee, through its wholly owned subsidiary Braemore Holdings Mauritius (Pty) Ltd, secured a revolving credit facility with ABSA BANK (MAURITIUS) LIMITED in the amount of US$5 million. The RCF is secured by a parent corporate guarantee, no pledge and subordination from Jubilee including all shareholder loan claims and related rights. The RCF is available for a period of 12 months and can be extended for a further 12 months by mutual agreement. The RCF bears interest at the daily compounded JIBAR plus a margin of 2.3%. The facility is used to fund working capital requirements for Jubilee's Zambian copper operations. At the period end Jubilee has drawn down US$5.0 million. Interest in an amount of US$0.39 million (FY2023: US$ 0.24 million) was charged to profit or loss for the period under review. Post year-end the RCF was increased to US$7.5 million on the same terms and conditions for a further 12 months from 9 July 2024.
Annexure A
Headline Earnings
Headline earnings per share (HEPS) is calculated using the weighted average number of shares in issue during the period under review and is based on earnings attributable to ordinary shareholders, after excluding those items as required by Circular 1/2023 issued by the South African Institute of Chartered Accountants (SAICA). In compliance with paragraph 18.19 (c) of the JSE Listings Requirements the table below represents the Group's Headline earnings, and a reconciliation between the Group's reported earnings and headline earnings used in the calculation of headline earnings per share:
Reconciliation of headline earnings per share
FY2024 | FY2023 (Restated) | |||||||
Figures in United States Dollars (US$) | Gross
| Net
| Gross
| Net
| ||||
Earnings for the period attributable to ordinary shareholders |
| 5 954 898 | - | 15 549 940 | ||||
Fair value adjustments | (3 639 604) | (3 639 604) | (377 184) | (377 184) | ||||
Headline earnings from continuing operations |
| 2 315 294 | 15 172 756 | |||||
Weighted average number of shares in issue | 2 856 010 000 | 2 687 683 403 | ||||||
Diluted weighted average number of shares in issue | 2 927 067 955 | 2 733 244 093 | ||||||
Headline earnings per share from continuing operations (US$ cents) | 0.08 | 0.56 | ||||||
Headline earnings per share from continuing operations (ZAR cents) | 1.52 | 10.02 | ||||||
Diluted headline earnings per share from continuing operations (US$ cents) | 0.08 | 0.56 | ||||||
Diluted headline earnings per share from continuing operations (ZAR cents) | 1.48 | 10.34 | ||||||
Average conversion rate used for the period under review ZAR:US$ | 18.70 | 18.63 | ||||||
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