JLP Jubilee Metals

Jubilee Metals Group PLC

Registration number (4459850)

AIM share code: JLP

Altx share code: JBL

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 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