Jubilee Metals Group (LON:JLP) Chief Executive Officer Leon Coetzer caught up with DirectorsTalk for an exclusive interview to discuss their results for the year ended 30 June, growth in earnings and the reason for the placing.
Q1: Results just out for the year ended 30 June, could you provide us a brief overview of the results?
A1: Very proud to have released the results, of course, for the period end of June. Our challenge as a company is always that things happen so fast as we’re implementing our growth strategy that we tend to have our result released in the next quarter already makes those results outdated in our growth strategy.
Very briefly, of course, it’s very nice to report results where our net group earnings is significantly positive delivering earnings of around £7 million, of course our revenues have shot up north of £22 million.
I think importantly, sometimes lost in those numbers, if you draw a number out like capital spend, over this period the company, beyond its cash position that remains very healthy, invested nearly £13.5 million of capital into driving our growth in our company.
So, very proud of our results, it shows tremendous growth in earnings, cash position in the company, balance sheet strengthening so in all areas, we were very happy with the results.
Q2: Now, the results show a big jump in earnings, as you’ve mentioned, is this something that shareholders can look forward to going forward?
A2: Absolutely. If you look at what happened post the period, so that’s after June of this year, Jubilee Metals Group has launched and brought into operation our Windsor PGM project at the end of August this year and we commenced with the construction of our Kabwe project in Zambia.
If you look at just the 3 months following our period under review, so that’s July, August and September, just the operational and into those 3 months are already exceeding £3 million of earnings so if you’re extracting at that forward, you can imagine another significant jump in our earnings to come.
One of the PGM projects has demonstrated its ability to perform, as in the month of September it delivered more than 5,000 ounces which is double our currently Inyoni, or previously called Hernic project.
So, definitely, our growth trajectory has continued post the period.
Q3: You have also reported a placing at a time when Jubilee Metals Group is reporting such high earnings. What’s motivated this placing?
A3: I can imagine, for some shareholders, this would cause frustration because we’re very sensitive to the dilution of our shareholders and the Board took this decision very carefully.
If you look, we’re raising roughly £6.5 million but if you put that into context of what we are implementing on the back of this earnings growth we’ve seen in the company.
We are building the refinery in Zambia, we of course we have entered into a very opportunative transaction, we were able to secure all of the chrome and the PGM rights at our Inyoni operations which has a dramatic impact on that operation’s earnings.
That, together with re-rolling out our fine chrome solutions into our operations, there’s tremendous capital investment into our company, well north of $13 million going into our Group. Of that, we elected to raise a relatively small component of cash compared to our investment to ensure that we can maintain that momentum in our company.
That’s the reason behind the cash raise that we approved and executed.