Jubilee Platinum PLC Annual Report 2016 … · towards overall profitability and establishing a...

AnnuAl reportfor the year ended 30 June 2016

1Jubilee Platinum — Annual Report 2016

Contents

Administrative information 2

Strategic report

• Chairman’s statement 3

• CEO’s operations report 4

Report of the Directors 12

Statement of Directors’ responsibilities 21

Report of the Audit and Risk Committee 22

Independent auditor’s report to the members 23

Consolidated statements of financial position 25

Consolidated statements of comprehensive income 26

Consolidated statements of changes in equity 27

Consolidated statements of cash flows 29

Notes to the consolidated financial statements 30

Annexure: Headline earnings per share 68

Shareholder analysis 69

Notice of annual general meeting Attached

Glossary of terms used in the notice of the annual general meeting Attached

Form of proxy Attached

2 Jubilee Platinum — Annual Report 2016

Administrative information

DIRECtORS ColinBird(Non-Executive Chairman)DrMPhosa(Non-Executive Director)LeonCoetzer(Chief Executive Officer)AndrewSarosi(Executive Director)ChristopherMolefe(Non-Executive Director)

SECREtARY CapitaCompanySecretarialServicesLimited34BeckenhamRoadBeckenham,Kent,BR34TU

REGIStERED OFFICE United Kingdom South Africa4thFloor2CromwellPlaceLondon,SW72JE

GroundFloorSupportServicesPlaceJigsawOfficePark7EinsteinStreet,HighveldTechnoParkCenturion,0157

AUDItORS SafferyChampness71QueenVictoriaStreetLondon,EC4V4BE

NOMINAtED ADVISER SparkAdvisoryPartnersLimited5St.John’sLaneLondon,EC1M4BH

BROKER BeaufortSecuritiesLimited131FinsburyPavementLondon,EC2A1NT

SPONSOR SasfinCapital29ScottStreet,WaverleyJohannesburg,2090

BANKERS NationalWestminsterBankPLC246RegentStreetLondonW1B3PB

REGIStRARS United Kingdom South AfricaCapitaAssetServices34BeckenhamRoadBeckenham,Kent,BR34TU

ComputershareInvestorServicesPtyLtd70MarshallStreetJohannesburg,SouthAfrica,2001

SOLICItORS United Kingdom South AfricaFladgateLLP16GreatQueenStreetLondon,WC2B5DG

AJHAttorneysGroundFloor,KingstonHouse20GeorgianCrescentEastBryanston,2021


Strategic reportChairman’s statement

DearShareholder,

Thethemeoflastyear’sreportwasthattheresourceindustryingeneralwasexperiencingverydifficulttimeswithcommoditypricesanddifficultyinaccessingfinanceforsurvival,letalonegrowth.TowardstheendofmyreportIstatedthattheJubileemanagementteamwouldnotbeintimidatedbythesedifficulttimesandwouldcontinuewithitsMine-to-Metalsstrategydespitetheconditions.

IamverypleasedtoreportthatthemanagementteamdidrespondwelltotheirchallengesandJubileehasmadesignificantstepstowardsoverallprofitabilityandestablishingaprominentemergingpositionintheSouthAfricanplatinumindustry.SignificantlywesecuredtheHernicprojectinDecember2015andcompletedbuildingtheDilokongchromiterecoverysectioninFebruary2016.ThecompletionofthesetwoprojectswillresultintheCompanyhavingaprocesscapacitycapableofproducingsome33000ozofplatinumperannumwithconsiderablecontributionfromchromeinthecaseofDilokong.

Weweresuccessfulinaccessingfinanceforthesetwoprojectswiththecombinationofdebtandequity;thisfinancingbeingachievedwhentheindustrywasstillexperiencinggreatdifficultinaccessingfinanceofanykind.

Wecontinue,proactivelyandreactively,tosearchfornewbusinessadditionstoourmodelandfeelconfidentthatwewillmakegainsinthisarea.Wealsorecognisethatachrome/platinumdumpmissioninafiniteenvironmentcanbeself-limitingandthereforehaveexpandedourinvestigationsintoothermetalsandotherareas.Wehaverecognisedandithasbeenrecognisedwithinourindustry,thattheCompanypossessesconsiderableinternaltechnicalstrengthfordumpre-treatmentprojectsandoutsidetheCompany,hascreatedagoodstrategicnetworktoidentify,investigateandfinanciallyinterrogatewhatwouldbefuturedumpre-treatmentprojects.Weintendtogrowonthesestrengthsforthebalanceofthisyearandinto2017.

Wearesomewhatdisappointedthatplatinumhasbeensoresilientatitslowerlevelsandthemuchexpectedbreakoutinapositivewaydidnotoccur.Ihavebeencynicaloverthelinkbetweengoldandplatinumandhaveoftenstatedthatthecouplinghaslittlesensesinceplatinumisacommodityandshouldthereforerespondtosupplyanddemandfundamentals.MorenewcarshavebeensoldwithinthedevelopedandemergingworldandyettheplatinumpricehascontinuedtoremainataroundaUSD1 000perozmarkwithmoderateincreasesanddecreases.Unlikeothermetals,platinumproducedissoldwithoutevidenceofanysignificantinventoriesbeingbuiltupwhichcandistortthepriceorleadtopricemanipulation.Theboardseesahealthymarketforplatinumwithexpectationofhigherpricesbutisconfidentofmakinggoodreturnsoninvestmentatcurrentplatinumpricelevels.OurchromeoperationatDilokonghasbenefitedconsiderablybyincreasedpricesforchromeandweareencouragedbyoureffortandopportunitiesinthelocalchromearena.

Onamoregeneralnote,theresourcesectorappearstobereadytomovebacktobeingafavouredsectorasopposedtothe“Cinderella”ofstockmarkets.Myexperiencehasbeenthatsuchchangingsentimentcanberapidandmanagementshouldnotbecaughtasleepwhentheysensethechange.IbelievethatsignificantopportunitiescanavailtoJubileewithinitsstatedmissionandanextensionofthatmission.Financingpotentialhasdefinitelyimprovedandnowthereexistconsiderablefinancialinterestfornewprojectsheldbyastrongmanagementteamwithatrackrecord.

TheGroupreportedalosspersharefortheyearended30June2016oncontinuingoperationsof0.38pence(ZARcents8.07)areductionof15.6%onlastyearandalosspershareondiscontinuedoperationsforthethreemonthsto30September2016of0.03pence(ZARcents0.67)(2015:losspershareoncontinuingoperationsof0.45pence(ZARcents8.12)andalosspershareondiscontinuedoperationsfortheyearending30 June2015of0.10pence(ZARcents1.76)).

FinallyIwouldliketothankmyfellowdirectorsandparticularlytheexecutivedirectorswhohaveperformedextremelywellinsecuringthetwoassetsandpositioningthecompanywithinSouthAfrica.

Iwouldalsoliketothankmanagementandexternalconsultantswhohaveintegratedasindividualsandcompaniesintoourbusinessplan.Ilookforwardtoanexciting2017andexpecttobeannouncingmoreacquisitionsandacceleratedgrowth,alldesignedtoenhanceshareholdervalue.

Colin BirdNon-Executive Chairman

11November2016


Chief Executive Officer’s operations report

HighlightsFinancial

• MiddelburgOperationsandPowerPlantdisposal (“DisposalGroup”)completedforagrosscashsumofZAR110.5 million(£5.3 million).(i)

• Operatingexpensesfromcontinuingoperations(excludingshare-basedpaymentchargesandimpairments)aredown16.27%to£2.4million.(ii)

• TheGroupreportedalosspersharefortheyearended30June2016oncontinuingoperationsof0.38pence(ZARcents8.07)areductionof15.6%onlastyearandalosspershareondiscontinuedoperationsforthethreemonthsto30September2016of0.03pence(ZARcents0.67)(2015:losspershareoncontinuingoperationsof0.45pence(ZARcents8.12)andalosspershareondiscontinuedoperationsfortheyearending30 June2015of0.10pence(ZARcents1.76)).

Mining and exploration

• Jubilee’ssubsidiaryCompany,TjatePlatinumCorporationPtyLtd(“Tjate”),securedanEnvironmentalRehabilitationGuarantee(“ERG”)Policybond for £1.5million (ZAR27million) in termsof theMinerals andPetroleumResourcesDevelopmentAct(“MPRDA”)ofSouthAfrica.TjateawaitsthenotarialexecutionoftheminingrightforitsTjatePlatinumProjectbytheDepartmentofMineralsandResources (“DMR”).

Surface operation and processing

• Co-OperationAgreementexecuted,15December2015betweenJubileeandHernicFerrochromePtyLtd(“Hernic”)toturntoaccountitsplatinumcontainingtailings(“PlatinumTailings”),stockpiledonitssite,byproducingchromiteandPGMconcentrates(“HernicTailingsProject”).

• JubileesecuredfundingfortheconstructionandcommissioningoftheHernicTailingsProject.

• Constructionofthe660000tonnesperyearprocessplantfortheHernicTailingsProjectcommencedFebruary2015,reaching45%completiononscheduleandonbudgetbyyear-end.

• ConstructionoftheDilokongchromiterecoverysection(FirstPhase)oftheDilokongTailingsTreatmentPlant(“DTTP”)wasconcluded in February 2016, targeting the recovery of chromite fromDilokongChromeMine’s (“DCM”) platinum-bearingchromite tailings (“DCM Platinum Tailings”) (“DCM Tailings Project”). DTTP reached its operational design capacity inmid-April 2016.

• Recordproduction,revenuesandearningsfromDCMProjectchromiteachievedbyyear-endaftertwomonthscontinuousoperations.(iii)

• DCMProjectearningsatyear-endreach£0.744million(ZAR14.2million).

• AttributableearningstoJubileefromtheDCMProjectatyear-endreach£0.456million(ZAR8.7million).

OverviewIntheperiodunderreview,theCompanyachievedsignificantmilestonesintheimplementationofitsMine-to-Metalsstrategytoformafully-integratedplatinumminingCompany.

TheCompanycommissionedtheFirstPhaseof itsDCMTailingsProject, reachingstableproduction inApril2016whilesimultaneouslycommencingwiththeconstructionoftheHernicTailingsProject,targetingacombinedprocessinginexcessof900000tonnesperannumofPlatinumTailingsoverthetwoTailingsProjects.TheCompanyexecutedthecashsaleofitsnon-coreFerro-alloysmeltingoperations(“MiddelburgOperations”)foragrossvalueofapproximately£5.3million(ZAR110.5million),andredirectedthefundstowardstheacquisitionandcommissioningofitsplatinumandchrometailingsprojects.

TheFirstPhaseoftheDCMTailingsProjecttargetedtheproductionofachromiteconcentratewhileconcurrentlytheCompanyconcludedadetailedplatinumprocessingoptionstudy.Theoptionstudywasconcludedposttheperiodunderreview.The

(i) Refer to note 22 on page 56 of this annual report for details of the disposal of the Middelburg Operations and the Power Plant.(ii) Refer to the table on page 13 of this annual report for details of the operating expenses for continued and discontinued operations.(iii) Refer to table on page 7 of this annual report for details of the DCM Tailings Project production, revenue and earnings achieved.

Strategic report


optionstudyindicatedtheoptimalstrategyshouldincludepre-concentrationatDCMoftheplatinuminthechrometailingsandcontractingwithanexistingplatinumproducertoupgradefurthertheplatinumpre-concentrateinordertoproduceasaleableplatinumconcentrate.The CompanyengagedwithatargetedtollprocessortoimplementthispreferredplatinumprocessingstrategyatDCM.Postyear-endtheDCMTailingsProjecthascontinuedtoexceedthedesignspecifications,reachingaproductionattheendofQ3ofthe2016calendaryearof43747tonnesofsaleablechromiteconcentrate,generatingtotalrevenuesof£3.1million(ZAR56.5million).

TheCompanysuccessfullycompletedaprojectfundingagreement(the“Funding”)fortheexecutionandcommissioningofitstwoplatinumTailingsProjects.

TheFundingcomprisedthecombinationofSeniorSecuredDebt(toamaximumofUSD10million),UnsecuredDebt(toamaximumofUSD5.3million)andanequityplacing(£2.3million).ThisFundingpackageenabledJubileetoexecutesimultaneouslythetwoplatinumTailingsProjects,whilestillpursuingtheacquisitionorsecuringoffurthersurfaceorshallowplatinum-bearingopportunities.ThesetwoTailingsProjectshavegrowntheCompany’saccessto,inexcessof4milliontonnes,ofplatinum-containingsurfacematerial.

TheHernic Tailings Project reached 45% completion at year-endwith the Project expenditure equalling £4.5million(ZAR 88.5 million).Postyear-endandattheendofQ3ofthe2016calendaryeartheProjecthadreachedacompletionof71%withtheun-auditedProjectexpenditurereaching£7.5million(ZAR137.6million).

TheCompany’sTjateprojectprogressedwiththeimplementationofaRehabilitationGuaranteePolicybondfor£1.5million(ZAR27million)intermsoftheMineralsandPetroleumResourcesDevelopmentAct(“MPRDA”)ofSouthAfrica.TjatecontinuestoawaittheexecutionoftheminingrightbytheDepartmentofMineralsandResources(“DMR”).

Jubileeexecutedabindingcashsaleagreement,inaggregateofapproximately£5.3million(ZAR110.5million)grossforitsMiddelburgoperationalassets,thedisposalofwhichwasapprovedbyshareholdersatageneralmeetingon7August2015.

DuringtheperiodunderreviewtheCompanysuccessfullymanageditsexpenditurebysellingitsnon-coreassetsandchannellingtheproceedsintothemoreprofitableplatinumTailingsProjects,therebyenablingtheCompanytogrowitsnear-termearningspotential.TheCompanycontinuestoactivelypursuefurtherprojectsconsistentwithourstatedmissiontogrowtheCompany’sprocessingcapacityofat-ornear-surfaceplatinumbearingmaterial.

TheCompanylooksforwardtobringingintooperationitstwoplatinumTailingsProjectswithinthecurrentfinancialperiodwhilecontinuingtogrowitsrevenuebaseandearningsprojectionsandadvancingitsprojectportfolio.

Conditionsintheglobalmarketsremainedchallengingasreflectedintheplatinumgroupmetal(“PGM”)prices.However,Jubilee’sPlatinumTailingsProjectsremainrobustatthesemetalprices;havingthebenefitofnotbeingexposedtominingcostorassociatedmining risk.

TheCompanysuccessfullyrespondedtothecurrentchallengesandrisksinherenttoanexplorationandproductionbusinessandwillcontinuetoformulatepreventativemeasures.TheprincipalrisksforanexplorationandproductionCompanyandthemeasurestakenbytheGrouptomitigatethemaredetailedundertheReportoftheDirectorsonpage12.

AdescriptionoftheprincipalrisksanduncertaintiesfacingtheCompanyaresetoutintheDirectors’reportonpage13.DetailsoftheCompany’ssubsidiariesareshowninnote10.

Surface platinum and chrome operationsNear-term low risk assets

DuringtheyearunderreviewtheCompanybroughtintoproductionthefirstofitstwoplatinumTailingsProjectsandcommencedwiththeconstructionofthemuchlargerHernicTailingsProject.AtcompletionofthesetwoplatinumTailingsProjectstheCompanywillholdaprocessingcapacityof900000tonnesofmaterialperyear,abletoproduceinexcessof33000PGMouncesperyear.TheCompanyhadidentifiedthebeneficiationofPGMsfromsurfacematerialasastrategicinitiativeonthebackofitsprovenConRoastprocessanditsproventrackrecordofbeneficiatingvaluemetalsfromwastestreamsatitsMiddelburg Operations.

Thesehighlysought-aftersurfaceplatinum-bearingprojects,comewithlittleoftheassociatedriskorcostofminingsinceallthematerialisatsurfaceandtheirmineralcontentcaneasilybedefinedwithahighdegreeofconfidence.TheCompanyhasbeen

Chief Executive Officer’s operations report (continued)Strategic report (continued)


abletodemonstrateitsindustry-leadingprocessingabilityinthisfield,whichhasassisteditinsecuringtheassetsandoutpaceitscompetitors.TheHernicTailingsProject’sPlantcurrentlyunderconstructionwillbestate-of-the-art,incorporatingJubilee’smanyyearsexpertiseinprocessdevelopmentandoptimisationinthisfield.ManyoftheprocessingtechniquesimplementedfortheHernicTailingsProjectarepotentiallydirectlytransferabletoJubilee’snickeltailingsprojectinWesternAustralia.Atcompletion,theHernicTailingsProjectwillbethelargestofitskindintheindustry.

Dilokong Chrome Mine Platinum and Chrome Surface Project (“DCM tailings Project” or “DCM Project”)

JubileeTailingsTreatmentCompanyPtyLtd(“JTTC”),awholly-ownedsubsidiaryofJubilee,holdstheexclusiverightsbywayofProcessingAgreementtobeneficiatetheplatinumgroupmetals(“PGMs”)fromtheDCMPlatinumTailings”)atASAMetalsPtyLtd’s(“ASA”)DilokongChromeMine(“DCM”and“DCMProject”).IntermsoftheProcessingAgreement,Jubileewasawarded,inter alia,theexclusiverighttoaccessandprocesstheDCMPlatinumTailingsonDCM’sminearea(“MiningArea”)andtherighttoconstructontheMiningAreaadedicatedchromeandPGMrecoveryplant(Plant”or“OwnPlant”)fortheDCMPlatinumTailings,targetingaPlantcapableofprocessingupto35000tonnesofplatinumbearingtailingspermonth,fortherecoveryofchromeandPGMs.ASAalsoagreedtograntJubileeaccesstosufficientpowerandwaterfortheconstructionandoperationofthePlant.

Followingtheexecutionofanaddendum(“Addendum”)announced23September2015totheProcessingAgreement,theCompanycommencedconstructionofthechromiterecoverysection(FirstPhase)ofthePlantfortheDCMTailingsProject.UnderthetermsoftheAddendum,theCompanywasincentivisedtoacceleratetheexecutionandcommissioningofthisFirstPhase,whichitsuccessfullyachieved.


Dilokong Chrome beneficiation under construction



TheCompanycommencedcommissioningofthechromiterecoverysectioninFebruary2015andreacheddesignthroughputcapacityof44tonnesperhour(“tph”)duringApril2015withthefirstproductionof1000tonnesofsaleablechromiteconcentratereadyforshipment.

InApril2016,ASAwentintobusinessrescueandon19April2016,theCompanysecuredoperationalcontroloftheentirechromiteprocessingcapabilityatDCMbyenteringintoaFrameworkAgreement(24March2016)arrangement(“Arrangement”)withDCM’sbusinessrescuepractitioner.ThisArrangementnotonlyprovidedalifelinetoDCM,butalsoprovidedtheopportunitytoexpandtheCompany’sprocessingcapabilityatDCM,byenablingtheCompany’soveralltailingsprocessingcapabilitytoincreasefrom25 000tonnespermonth(“tpm”)(“OwnPlant”)to75000tpm(“OwnPlant”andexisting“DCMplant”).Furthermore,inadditiontotheincreasedprocessingcapability,theArrangementprovidedthepotentialtowidentheDCMTailingsProject’sscopetoalsoprocessthirdpartyminedchromiteore,therebypotentiallyenhancingtheDCMProject’soverallfinancialmetrics,withmodestlylowcapitalinvestmenttothePlantconfigurationandwithoutcompromisingtheCompany’soperatingprofit margin.

Byyear-endtheDCMTailingsProjecthadproduced15188tonnesofchromiteconcentrate(effectivelyfromonlytwomonthsofcontinuousoperation)whichgeneratedacumulative£1million(ZAR19.1million)inrevenue;associatedDCMProjectearningswere£0.744million(ZAR14.2million)ofwhich£0.456million(ZAR8.7million)wereattributabletotheCompany.

Postyear-endattheendofQ3ofthe2016calendaryeartheun-auditedcumulativeproductionofchromiteconcentratereached43747tonnesandsalesofchromiteconcentrategeneratedcumulative£3.1million(ZAR56.5million)inrevenue;associatedDCMProjectearningswere£2.3million(ZAR41.9million)ofwhich£1.3million(ZAR24.6million)wereattributabletotheCompany.

Chromiteconcentrate

tonnesproduced

Projectrevenue

(GBP’000)

Projectrevenue

(ZAR’000)

Projectearnings

(GBP’000)

Projectearnings(ZAR’000)

Jubileeattributable

projectearnings

(GBP’000)

Jubileeattributable

projectearnings(ZAR’000)

Q2 2016(May,June2016) 15188 1002 19137 744 14203 456 8710

Q3 2016(July,August,September2016) 28559 2086 37360 1548 27702 888 15887

%changeQ2on Q3 88.04% 108.22% 95.23% 108.13% 95.05% 94.73% 82.41%

YTDsincestartofprojectinMay2016 43747 3088 56497 2291 41905 1344 24597

AllchromiteproductiontodateatDCMcontinuestobefromtheprocessingofsurfacetailingsalone.

TheSecondPhaseoftheDCMTailingsProject,whichincludestherecoveryofPGMsfromtheFirstPhasechromitetailingswassubjecttothecompletionofaPGMprocessingoptionstudy(“PGMOptionStudy”or“Study”)ontheCompany’sstockpiledPGMmaterial,post-chromiterecovery(“PGMMaterial”).ThisStudyincludedareviewofnumerousprocessingoptionsfortheoptimumcommercialandprocessingsolutionsforthePGMMaterialandlargecommercialtrialsonthePGMMaterialtoconfirmthetechnicalandeconomicparametersofthepreferredPGMrecoveryoption.Theoptionsreviewedincludedon-sitetrialstoevaluatetechnicalsolutionsforupgradingthePGMsinthePGMMaterialpriortoeithertollprocessingofupgradedPGMMaterialorfurtheron-siteprocessingofthePGMMaterial.BothlaboratoryandcommercialtrialswereruntotestthevariousoptionsinordertodeterminetheoptimalcommercialsolutionforJubilee.

TheOptionStudywasconcludedposttheperiod-under-reviewandindicatedtheoptimalstrategyshouldincludethepre-concentrationofPGMMaterialat theDCMSiteandcontractwithanexistingPGMproducerto furtherupgradethepre-concentratedPGMMaterialtoproduceasaleablePGMconcentrate.TheCompanyhasengagedwithatargetedtollprocessortoimplementthispreferredOptionstrategy.Thiswouldprovideboththebenefitsoflowercommittedcapitalaswellasexpediencyinexecutingthestrategy



Hernic tailings Project

HernicFerrochromePtyLtd(“Hernic”)istheworld’sfourthlargestintegratedferrochromeproducerwithanestimated3 milliontonnesofplatinum-containingmaterialonsurface(“HernicTailings”)whilecontinuingtoaddfurthermaterialtotheHernicTailings.

On15December2015,theCompanyexecutedaCo-OperationAgreement(“Co-OpAgreement”)withHernicontheturningtoaccount(“Processing”)oftheHernicTailingstoproducechromiteandPGMconcentrates.

TheCo-OpAgreementreplacedtheHeadsofAgreement(announcedon19January2015),intermsofwhichtheCompanywasselectedastheexclusivepartytobeneficiatethechromiteandPGMscontainedintheHernicTailings.DuringFebruary2015,theCompanycommencedsitepre-excavationandfoundationsforthe660 000tonnesperyearprocessingplant(“HermicPlant”)fortheHermicTailingsProject,basedontheCompany’sdefinitivefeasibilitystudyandengineeringdesign,whichwascompletedinJune2015andincludedpilotscaleandfullcommercialscaletrialstoconfirmthedesignandoperationalparameters.

TheHernicTailingshasbeenindependentlyfullydrilledandassayedforchromeandPGMcontent.Thishasresultedinanindependentresourcestatementof1.7milliontonnes,ofwhichapproximately90%oftheresourceisclassifiedinthemeasuredcategoryundertheinternationallyrecognisedSAMRECcode.Hernicalsohasaccesstosecondarysurfacematerialstock,whichithasinternallyidentifiedandwhichcouldincreasetheHernicTailingsresource,toinexcessof3milliontonnesthroughfurtherdrilling.TheHernicTailingsareestimatedtocontaintotalPGMs(3PGM+Au)inexcessof224000oz.

TheHernicTailingsProjectwillbethelargestPGMbeneficiationplantofitskind,inSouthAfricaandwillbecapableofproducingannualrevenuesof£18.2million(ZAR400million)atanaveragemetalbasketpriceofUSD906peroz(3PGM+Au).ThefinancialandoperationalrisksoftheHernicTailingsProjectaresignificantlymitigatedsincetheHernicTailings,similartothatoftheDCMTailingsProject,isalreadyatsurfaceandrequiresneitherthecostnorincurstherisksassociatedwithmining.

Hernic Tailings Project – beneficiation plant


TheProjectistobeundertakeninfourphasesoveran11-monthperiod,namely:

• Phaseone–BankableFeasibilityStudyandEngineeringDesign–Completed.

• Phasetwo–Constructionofthechromeandplatinumprocessingplant–On-going

• Phasethree–CommissioningandRampupofProcessingPlanttodesigncapacityof55000tonnespermonth.

• Phasefour–StableoperationoftheProcessingPlant.

Ordersforallthelong-leaditemswereplacedbymid-April2016.ConstructionoftheHernicPlanthasprogressedasscheduledandonbudgetwith45%oftheHernicTailingsProjectcompletedbyyear-end.Projectcapitalexpendituretoyear-endwas£4.5 million(ZAR88.5 million)equivalentto45%oftotalestimatedProjectCapital.Postyear-endandattheendofQ3ofthe2016calendaryeartheProjectwas71%completewiththeun-auditedprojectexpenditurereaching£7.5million(ZAR137.6 million).

CommencementoftheHernicPlantcommissioningremainsontargetforDecember2016.

Middelburg Operations – Smelter and power plant

On30September2015,Jubileecompletedthedisposalof100%oftheissuedsharesinJubileeSmeltingandRefiningPty Ltd,and70%oftheissuedsharesinPowerAltPtyLtdtoSiyandaResourcesPtyLtd,throughitsnominatedspecial-purposevehicleHornbillInvestmentsPtyLtd(“SPV”),foragrossconsiderationof,inaggregate,ZAR110.5million(approximately£5.3million).TheCompanyreceived85%ofthenetpurchaseconsiderationincash(“FirstPayment”).15%ofthepurchaseconsiderationisheldinescrowinanamountapproximatingto£0.68million(ZAR13million),netofclosingadjustmentsincludingstockandsupplieradjustments.Thisamount,whichwasduebytheSPVtoJubileefollowingtheexpiryofthefirstwarrantyperiodon31December2015(90daysaftertheclosingdateof30September2015).Paymenthas,however,notbeenmadeduetotheSPVconsideringawarrantyclaim.Jubileehasrejectedtheseclaimsandhasactionedthenecessarystepstoexpeditepayment.

Mining and explorationWorld-class assets

Jubilee’sminingandexplorationprojectsaresignificantlyenhancedbytheCompany’sabilitytobeneficiateplatinumconcentratesthroughitssmeltingandrefiningcapabilityofferedbytheConRoast process.

tjate Platinum Project

TheflagshipTjatePlatinumProject(“theProject”)comprisesthreefarms–Dsjate249KT,Fernkloof539KSandQuartzhill542 KS –andislocatedintheeasternBushveldofSouthAfrica.TheProjectcontainsaSAMREC-compliantresourceof25millionounces6PGE+AuintheIndicatedandInferredresourcecategoryor22millionounces3PGE+Au(platinumGroupelementsandgold)intheIndicatedresourcecategorywithatargetedpotentialresourcefortheentireTjateProjectofapproximately70millionounces6PGE+Aunetofgeologicallosses.

InFebruary2015,TjatereceivedformalcommunicationfromtheDMRoftherequirementintermsoftheminingrightforanEnvironmentalRehabilitationGuarantee(“ERG”)tothevalueofapproximately£1.5million(ZAR27million).TheERGservesasafinancialguaranteebyTjatetotheDMRforanycostsassociatedwiththeenvironmentalrehabilitationoftheTjatepropertiesintheeventofmineclosure.TjatesecuredanEnvironmentalRehabilitationGuaranteePolicybondforZAR27millionintermsoftheMineralsandPetroleumResourcesDevelopmentAct(“MPRDA”)ofSouthAfrica.Tjateawaitsthenotarialexecution(“Execution”)oftheminingrightbytheDepartmentofMineralsandResources(“DMR”).

TheCompany,TjateandtheTjateCommunity(“Community”)continuetoholdpositiveongoingengagementsontheimmediatesocialandlabourbenefitsthatwouldbeexpectedtoflowtotheCommunityontheExecutionoftheminingright.TheTjateCommunityremainsverysupportiveoftheTjateprojectandhasurgedtheDMRtoconcludetheExecutionoftheminingrighttoallowforthefurtherdevelopmentoftheProject.



Madagascar

On24August2012,theCompanyenteredintoafarm-inagreementwithunlistedIndianPacificResourcesLimited(“IPR”)toexplorethepotentialironoreopportunityidentifiedbyboththeCompanyandIPRontheCompany’ssubsidiary,MineralResourcesofMadagascarSarl’s(“MRM”)Ambodilafaconcession.IPR’sfarm-inrightexcludesrightstotheplatinumgroupmetals,metalstradedontheLondonMetalsExchangeandchromeontheAmbodilafaconcessions.

IPR’sisearn-ininterestremainedat90%intheSamelahyironoreproperty(“Samelahy”)onAmbodilafa,havingexpendedmorethanUSD3million,intermsofthefarm-inagreement.

IntheyearunderreviewtheCompany’ssubsidiary,MineralResourcesofMadagascarSarl(“MRM”),undertooknoexplorationinMadagascar.

Australia – Nickel in tailings surface project (“Leinster Project”)TheCompany’sAustraliansubsidiary,BraemoreNickel (Pty)Ltd(“Braemore”)continuedwithon-goinginternalreviewandoptimisationoftheprocessflowsheetfortherecoveryofNickelfromtheLeinsterProjecttailings(“LeinsterTailings”),inparticular,theCompany’sapplicationofrecentdevelopmentsintheliberationofminerals lockedintailings.ThesedevelopmentsarecurrentlybeingimplementedintherecoveryofPGMinassociatedsulphidesfromtheCompany’stailingsprojectsinSouthAfrica,specificallytargetingthebeneficiationofsulphideminerals,whichenablessignificantenhancementinconcentrategradeprofilesandimprovementintheprojectedtargetperformanceandprofitability.TheCompanybelievesthatthesedevelopmentsareapplicabletooptimiseevenfurtherthecurrentLeinsterProjectflowsheetfortheLeinsterTailingsandotherliketailings.Thesebeneficiationandliberationdevelopmentshavethepotentialtoimprovesignificantly,theeconomicmetricsoftheEngineeringStudyandEconomicEvaluation(“ESEE”)oftheLeinsterProject.

PosttheperiodunderreviewBraemorehasreceived,fromBHPBillitonProprietaryLimited(“BHP”),anoticeofterminationoftheTailingsSupplyAgreementrelatingtothenickeltailingsmaterialinWesternAustralia.

Braemorehasrejectedtheterminationnoticesinceitbelievesnofactualorlegalbasisexistsforsuchtermination.BraemorehasinformedBHPthatitintendstoinitiatelegalproceedingtohavetheterminationsetaside.

Looking aheadJubileeoverthepastyearhassuccessfullynavigatedthemanychallengesfacedbytheplatinumindustryandwehavebeenabletofaceuptothisadversitybygrowingitsPGMprojectportfolio,bringingintooperationitsprofitableDCMProjectandcommencingconstructionofthelargeHernicTailingsProject.

Welookaheadtoayearthatwillcontinuetoholdchallengesfortheplatinumindustry,withsubduedPGMandplatinumpricesaddingpressureoncurrentplatinumproducersincurringaddedcostofmining,andtoamarketthatisyettorecognisetheresilienceoftheemerging,lowcostproducers,ofwhichJubileeistakingthelead.

ForJubileetheyearaheadholdsexcitement,withthecommissioningoftheHernicTailingsProjecttobolstertheproductionandearningspotentialoftheDCMTailingsProjectfromPGMproduction,whilecontinuingtopursuesuchsurfaceprojectsonthebackofitsindustry-leadingability.

Leon CoetzerChief Executive Officer

11November2016

This Strategic Report was approved by the Board and signed on its behalf by Leon Coetzer.




Hernic PGM beneficiation circuit

Solid liquid separation circuit


TheDirectorspresenttheirreporttogetherwiththefinancialstatementsfortheyearended30June2016.

Principal activities and place of incorporationTheGroupandCompanyareprincipallyengagedinexplorationandexploitationofnaturalresources.JubileePlatinumPLCisUKdomiciledandincorporatedinEnglandandWalesandisgovernedbyUKLaw.ItsprimarylistingisontheAlternativeInvestmentMarketoftheLondonStockExchange(“AIM”)andithasasecondarylistingontheAlternativeExchangeoftheJSELimited(“AltX”).HavingsecuredafundingofferfromamajorinstitutionalinvestorandtheproceedsfromtherecentsaleofitsMiddelburgOperations,theCompanyisnowwell-positionedtofocusontheexploitationanddevelopmenttoproductionofitssecuredtwoplatinumsurfacetailingsprojectsandonstrategicallyseekingfurthersimilarresourceopportunities.

Business reviewAreviewoftheGroupandCompany’soperationsduringtheyearended30June2016andfuturedevelopmentsiscontainedintheStrategicReportonpages3to11.

TheDirectorsdidnotrecommendthepaymentofadividendfortheyearunderreview(2015:nil).

Financial reviewEarningspersharefortheyearended30June2016wereasfollows:

Jun 16 Jun15

Basiclossfortheyear–continuingoperations(£’000) (3 412) (2907)Basiclossfortheyear–discontinuingoperations(£’000) (283) (628)

Totallossfortheyear (3 695) (3535)

Weightedaveragenumberofsharesinissue(‘000) 906 241 644852Dilutedweightedaveragenumberofsharesinissue(‘000) 906 241 644852Weightedaveragenumberofsharesinissuediscontinuedoperations(‘000) 906 241 644852Dilutedweightedaveragenumberofsharesinissuediscontinuedoperations(‘000) 906 241 644852Losspershare–continuingoperations(pence) (0.38) (0.45)Losspershare–discontinuingoperations(pence) (0.03) (0.10)

(0.41) (0.55)

Dilutedlosspershare–continuingoperations(pence) (0.38) (0.45)Dilutedlosspershare–discontinuingoperations(pence) (0.03) (0.10)

(0.41) (0.55)

Losspershare–continuingoperations(ZARcents) (8.07) (8.12)Losspershare–discontinuingoperations(ZARcents) (0.67) (1.76)

(8.74) (9.88)

Dilutedlosspershare–continuingoperations(ZARcents) (8.07) (8.12)Dilutedlosspershare–discontinuingoperations(ZARcents) (0.67) (1.76)

(8.74) (9.88)

TheGroupreportedanetassetvalueof5.65pence(112.38ZARcents)(2015:6.60pence(127.65ZARcents)perordinaryshare.

Thetotalsharesinissueasat30June2016were991087994(2015:749860507).

Report of the Directors


MajorcomponentsoftheGroup’soperatingexpensescomprisedthefollowingmaincategories:

ContinuedJun 2016

Dis-continued

Jun 2016total

Jun 2016ContinuedJun2015

Dis-continuedJun2015

TotalJun2015

Operating expensesAdmin,corporateandoperationalcosts 269 940 482 469 752 409 439822 639235 1079057Amortisationanddepreciation 598 451 – 598 451 624284 751630 1375913Consultingandprofessionalfees 712 607 12 000 724 607 703848 78945 782793Humanresources 556 106 221 430 777 536 823623 826366 1649989Repairsandmaintenance 5 425 296 871 302 296 12600 1141714 1154315Travelling 28 124 1 863 29 987 23762 7210 30972Corporatelistingcosts 121 446 – 121 446 147209 – 147209Lossonexchangedifferences 80 638 – 80 638 – – –Lossondisposaloffixedasset 1 082 – 1 082 68459 – 68459

2 373 819 1 014 6332 3 388 452 2843607 3445100 6288707

Other once-off non-cash operating expensesShare-basedpaymentcharge–optionsawarded 1 155 8473 – 1 155 847 – – –Share-basedpaymentcharge–newwarrantsissued 304 9253 – 304 925 – – –Provisionforimpairmentofotherfinancialassets 856 2714 – 856 271 – – –

2 317 043 – 2 317 043 – – –

total operating expenses 4 690 862 1 014 633 5 705 495 – – –

1 Operating expenses from continuing operations are down 16.27% to £2.4 million.2 Refer to note 6 on page 44 of this report.3 Refer to note 16 on page 52 of this report.4 Refer to note 12 on page 50 of this report. The provision for impairment of other financial assets represents the remainder of the proceeds owed to the Company

in relation to the disposal of the Middelburg Operations. The Board considered it prudent to impair the remaining balance during the current reporting period.

Thetableaboveformspartofsupplementaryinformationandhasnotbeenaudited.

Risk reviewTheBoardandtheExecutiveCommitteekeeptherisksinherentinanexplorationandproductionbusinessunderconstantreview.TheprincipalrisksforanExplorationandProductionCompanyandthemeasurestakenbytheGrouptomitigatethemaredetailed below:

• Exploration andProduction risk is the risk of investing cash and resources onprojects,whichmay not provide a return.Explorationandsubsequentminingoperationsaresubjecttohazardsnormallyencounteredinexploration,developmentandproduction.Althoughitisintendedtotakeadequateprecautionsduringeachstageofdevelopmenttominimiserisk,thereisapossibilityofamateriallyadverse impacton theGroup’soperationsand its financial results.While theGrouphasgoodrelationswithitsemployees,theserelationsmaybeimpactedbychangesintheschemeoflabourrelations,whichmaybeintroducedbytherelevantgovernmentalauthorities.TheGroupwilldevelopandmaintainpoliciesappropriatetothestageofdevelopmentofitsvariousprojects.RecruitingandretainingskilledandqualifiedpersonnelarecriticaltotheGroup’ssuccess.Thenumberofpersonsskilledintheacquisition,explorationanddevelopmentofminingpropertiesislimitedandcompetitionforsuchpersonsisintense.TheGroupaddressesthisriskbyusingitsskills,experienceandlocalknowledgetoselectonlythemostpromisingareastoexplore.Membersofstaffareencouragedtodiscusswithmanagementmattersof interesttotheemployeesandsubjectsaffectingday-to-dayoperationsoftheGroup.TheBoardandtheExecutiveCommittee,basedonadvicefromtheExecutiveteam,setpriorities.

Report of the Directors(continued)


• Political risk is the risk that assetswill be lost throughexpropriation, unrestorwar. TheGroupminimisespolitical riskbyoperatingincountrieswithrelativelystablepoliticalsystems,establishedfiscalandminingcodesandarespectfortheruleof law.

• Commodityriskistheriskthatthepriceearnedformineralswillfalltoapointwhereitbecomesuneconomicaltoextractthemfromthegroundandtoprocessit.TheprincipalmetalsintheGroup’sportfolioarePlatinumGroupMetals,nickelandcopper.Thepriceofthesemetalshasbeenunstableduringthefinancialyear.TheeconomicsofalltheGroup’sprojectsarekeptunderclosereviewonaregularbasis.

• Fundingrisk istheriskassociatedwiththeimpactonaproject’scashflowfromhigherfundingcostsor lackofavailabilityof funds.

• Securityoftenure

TheGroupinvestigatesitsrightstoexploreandextractmineralsfromallofitsmaterialpropertiesand,tothebestofitsknowledge,thoserightsareexpectedtobeingoodstanding.However,noassurancecanbegiventhattheGroupwillbeabletosecurethegrantofmineralrightsandtenuresontermssatisfactorytoit,orthatgovernmentsinthejurisdictioninwhichtheGroupoperateswillnotrevokeorsignificantlyaltersuchrightsortenuresorthatsuchrightsortenureswillnotbechallengedorimpugnedbythirdparties,includinglocalgovernmentsorotherclaimants.

Financial risksThethreemaintypesoffinancialriskfacedbytheGroupareliquidityrisk,currencyriskandcreditrisk.

Liquidityriskistheriskofinsufficientworkingandinvestmentcapital.TheGroup’sgoalistofinanceitsexplorationandsmeltingactivitiesfromcashflowfromoperations,butintheabsenceofsuchcashflowtheGroupreliesontheissueofequitysharecapitalandoptionagreementstofinanceitsactivities.Jubileehasraisedfunds,whichallowedtheCompanytocontinuetoseekpotentialacquisitionopportunitiesinnear-termminingprojectsconsistentwithitsMine-to-Metalsstrategy,andtoensuresufficientfundingforitsplatinumprojectsandConRoastgrowthstrategies.Thedraw-downoffundsandequitydistributioniscontrolledandmanagedbytheBoard.

Currencyriskistheriskofthepossibilitythatonecurrencywilldevaluetotheexchanger’sdetriment.TheGroupfinancesitsoverseasoperationsbytransferringPoundSterlingandUSDollarstomeetlocaloperatingcosts.TheGroupdoesnothedgeitsexposuretoforeigncurrencyriskandisthereforeexposedtocurrencyfluctuationsbetweenthesetwocurrenciesandlocalcurrencies.TransferofcurrencyismanagedbytheExecutiveCommitteeoftheCompanytoensurethatcurrencydevaluationis minimised.

CreditriskreferstotheriskthatcounterpartieswilldefaultontheircontractualobligationsresultinginfinancialandcashlosstotheGroupandCompany.CreditriskarisesprincipallyfromtheGroupandCompany’sinvestmentincashdeposits.TheGroupandCompanyseektodepositfundswithreputablefinancialinstitutionswithhighcreditratingsuntilsuchtimeasitisrequired.TheGroupandCompanydonothaveanysignificantcreditriskexposureontradeandotherreceivables.ThecarryingamountoffinancialassetsrecordedinthefinancialstatementsrepresentstheGroupandCompany’smaximumexposuretocreditrisk.

TheGroupandCompanymaintaintightfinancialandbudgetarycontroltokeepitsoperationscost-effectivetomitigatethesefinancialrisks.Moreinformationonfinancialinstrumentsisincludedinnote23totheconsolidatedfinancialstatements.

Corporate governanceInformulatingtheCompany’scorporategovernanceprocedures,theBoardofDirectorstakesdueregardoftheprinciplesofgoodgovernanceassetoutintheUKCorporateGovernanceCodeissuedbytheFinancialReportingCouncilandthesizeandstageofdevelopmentoftheGroup.TheGroupalsotakesdueregardoftheQuotedCompaniesAlliance(“QCA”)GuidelinesonCorporateGovernanceforSmallerQuotedCompanies.

TheBoardreliesontheRemunerationandNominationCommitteeandtheAuditandRiskCommitteetoreview,onanongoingbasis,allrules,regulationsandallrisksapplicabletotheGroupandCompany.

TheBoardcomprisestwoExecutiveDirectorsandthreeNon-ExecutiveDirectors.ColinBirdistheNon-ExecutiveChairmanoftheBoardandLeonCoetzeristheChiefExecutiveOfficer.



TheRemunerationandNominationCommitteeregularlyreviewstheGroup’snominationandappointmentpolicy.Thepolicyisalignedwithallnecessarylegislationandregulations.

ThepolicysetsouttheprocessforthenominationandappointmentofDirectorsandkeyexecutives.ThereisaformalprocessfortheappointmentofDirectors.InformationisprovidedtoshareholdersofthecandidateDirectors’education,qualifications,experienceandotherDirectorships.Intermsofthepolicy,executivemanagementrequirespermissiontobeappointedtoexternalBoards.ThisreducesthepotentialforconflictsofinterestandhelpstoensurethatmanagementisabletodevotesufficienttimeandfocustotheGroup’sbusiness.

Inaccordancewiththepolicy,theBoardtakescognisanceoftheknowledge,skillsandexperienceofcandidateDirectors,aswellasotherattributesconsiderednecessaryfortherole.TheBoardalsoconsiderstheneedfordemographicrepresentationwhenmakinganewappointment.

RemunerationofExecutiveDirectorsisestablishedbyreferencetotheremunerationofexecutivesofequivalentstatusbothintermsoflevelofresponsibilityofthepositionandbyreferencetotheirjobqualificationsandskills.TheRemunerationandNominationCommitteealsohasregardtothetermsthatmayberequiredtoattractanexecutiveoftheequivalentexperiencetojointheBoardfromanotherCompany.Suchpackagesincludeperformance-relatedbonusesandthegrantofshareoptions.TheRemunerationandNominationCommitteeconsistsofColinBirdandChristopherMolefe.

ThestructureoftheBoardensuresthatnooneindividualorGroupdominatesthedecision-makingprocess.TheBoardmeetsonaregularbasisandprovideseffectiveleadership,overallcontrolanddirectiontotheGroup’saffairsthroughthescheduleofmattersreservedforitsdecision.Thisincludestheapprovalforthebudgetandbusinessplan,majorcapitalexpenditure,acquisitionsanddisposals,riskmanagementpoliciesandtheapprovalofthefinancialstatements.Formalagendas,papersandreportsaresenttotheDirectorsinatimelymannerpriortoBoardmeetings.TheBoarddelegatescertainofitsresponsibilitiestoBoardcommitteesthathaveclearlydefinedtermsofreference.BetweentheBoardmeetingsreferredtoabove,anExecutiveSteeringCommitteeconsistingofExecutiveDirectorsandmanagementmeetsonaregularbasis.

AllDirectorshaveaccesstotheadviceandservicesoftheCompanySecretary,whoisresponsibleforensuringthatallBoardproceduresarefollowed.AnyDirectormaytakeindependentprofessionaladviceattheCompany’sexpenseinthefurtheranceofhisduties.

Aminimumofone-thirdoftheDirectorsretiresfromofficeateveryAnnualGeneralMeeting(“AGM”)oftheCompany.Ingeneral,thoseDirectorswhohaveheldofficethelongesttimesincetheirelectionarerequiredtoretire.AretiringDirectormaybere-electedandaDirector,appointedbytheBoardsincethelastAGM,canalsobere-elected.InthelattercasetheDirectors’periodofpriorappointmentbytheBoardwillnotbetakenintoaccountforthepurposesofrotation.

TheAuditandRiskCommitteeconsistsofColinBirdandChristopherMolefeandmeetsasappropriate.Duringthe2016financialyearthecommitteemetoncetoconsidertheGroup’sfinancialreporting(includingaccountingpolicies)andtheinternalfinancialcontrolsdesignedtoidentifyandpreventtheriskofloss.ColinBirdwasappointedtotheAuditandRiskCommitteeduetohisabilityandknowledgewithintheindustry.TheAuditandRiskCommitteehasreviewedthesystemsinplaceandconsidersthesetobeappropriate.Thecommitteealsosetsprinciplesforrecommendingtheuseofexternalauditorsfornon-auditservices.TheAuditandRiskCommitteehasconsideredandsatisfieditselfoftheappropriatenessandexpertiseoftheGroupChiefFinancialOfficer,MsCdeBeer,andthefinancefunction,andisunanimouslysatisfiedofhercontinuingsuitabilityforthefinancingfunction.

TheBoardattachesimportancetomaintaininggoodrelationshipswithallitsshareholdersandensuresthatallprice-sensitiveinformationisreleasedtoallshareholdersatthesametimeandinaccordancewiththeAIMrules.TheCompany’sprincipalcommunicationwithitsinvestorsisthroughtheAGMandthroughtheannualreportandinterimstatement.TheCompanymaintainsawebsite,incompliancewithAIMRule26,containingup-to-dateinformationoftheGroup’sactivitiesaswellasallrecentLSERegulatoryNewsServiceandJSESENSannouncements.

CapitaCompanySecretarialServicesLimitedactedasCompanySecretaryforthefinancialyear.



Compliance with the Bribery ActTheBoardacknowledgestheUKBriberyAct2010,whichcameintoforceon1July2011.ItisthepolicyoftheBoardtocomply

withalllawsandregulationsincludingthisAct.Staffandmanagementaremadeawareoftheselawsandregulationsandareurgedtofamiliarisethemselveswiththesame,includingtheconsequencesofanybreachofthelaworregulations.

Internal controlTheBoardisresponsibleformaintaininganappropriatesystemofinternalcontrolstosafeguardshareholders’investmentsandGroupassets.

TheDirectorsmonitortheoperationofinternalcontrols.TheobjectiveofthesystemistosafeguardGroupassets,maintainproperaccountingrecordsandensurethatthefinancialinformationusedwithinthebusinessandforpublicationisreliable.Anysuchsystemofinternalcontrolcanonlyprovidereasonable,butnotabsoluteassuranceagainstmaterialmisstatementorloss.

InternalfinancialcontrolproceduresundertakenbytheBoardinclude:

• regularreviewoffinancialreportsandmonitoringperformance;

• priorapprovalofallsignificantexpenditureincludingallmajorinvestmentdecisions;and

• reviewanddebateoftreasurypolicy.

TheBoard,incontextoftheGroup’soverallstrategy,undertakesariskassessmentandareviewofinternalcontrols.Thereviewcoversthekeybusinessoperational,complianceandfinancialrisksfacingtheGroup.InarrivingatitsjudgementofwhatriskstheGroupfaces,theBoardhasconsideredtheGroup’soperationslightofthefollowing:

• thenatureandextentofriskswhichitregardsasacceptablefortheGrouptobearwithinitsoverallbusinessobjective;

• thethreatofsuchariskbecomingareality;

• theGroup’sabilitytoreducetheincidenceandimpactofriskonitsperformance;and

• thecostandbenefitstotheGroupofoperatingtherelevantcontrols.

TheBoardhasreviewedtheoperationandeffectivenessoftheGroup’ssystemofinternalcontrolforthefinancialyearandtheperioduptothedateofapprovalofthesefinancialstatementsandconsidersittobeadequate.

Relations with shareholdersCommunicationwithshareholdersisgivenahighprioritybytheBoardandtheDirectorsareavailabletoenterintodialoguewithshareholders.AllshareholdersareencouragedtoattendandvoteattheAnnualGeneralMeetingduringwhichtheBoardisavailabletodiscussissuesaffectingtheGroupandCompany.

Going concernTheDirectorshaveadoptedthegoing-concern-basisinpreparingthefinancialstatements.FurtherdisclosureoftheDirectors’considerationofgoing-concernismadeinnote28totheseannualfinancialstatements.

Legal proceedingsOtherthanasdisclosedinthisreport,theDirectorsarenotawareofanylegalproceedingsorothermaterialconditionsthatmayimpactontheCompany’sabilitytocontinueitsminingorexplorationactivities.

Special resolutionsDuringtheperiodunderreviewshareholdersvotedinfavourofthefollowingspecialresolution:

• TheCompanyrenewedtheauthorityoftheDirectorstoissuesharesforcashupto25%oftheissuedcapitaloftheCompany.

Directors’ interest in securities of the CompanyTheDirectorswhoservedduringtheyearandtheirinterestsinthesharesoftheCompanyasatthebeginningandtheendoftheyearwereasfollows:



Number of ordinary shares30 June 2016 30June2015

CBird(Direct) 9 797 555 9797555ASarosi(Direct) 64 444 64444LCoetzer(Direct) 27 810 27810DrMPhosa(Indirect)1 986 717 986717

Total 10 876 526 10876526

1 Dr Phosa holds his interest in Jubilee through his trust NMP Trust of which he is a trustee.

Anewshareoptionschemewasagreedbyshareholderson29April2016.InawardingtheseoptionstheBoardwascognisantoftheeffortsandpersonalmotivationdirectedtowardstheCompany’sobjectivesbyallmembersoftheBoard.

TheDirectorswhoservedduringtheyearandtheirinterestsinshareoptionsoftheCompanyasattheendoftheyearwereasfollows:

Strikeprice Parvalue 3.5p 4p 6p Total

LeonCoetzer 7000000 8000000 4000000 4000000 23000000ColinBird 5000000 4000000 2000000 2000000 13000000AndrewSarosi 3000000 3000000 2000000 2000000 10000000ChrisMolefe – 500000 500000 500000 1500000DrMatthewsPhosa – 500000 500000 500000 1500000

Total 15000000 16000000 9000000 9000000 49000000

Refertonote17onpage53ofthisreportfordetailsoftheoptionsawarded.

Remunerationpaid

Provision forunpaid

remunerationShare

optionsBenefits

in kindtotal2016

total2015

£ £ £ £ £ £

CBird 13333 66667 314634 6263 400897 80000ASarosi 38458 49068 234822 – 322348 64730CMolefe 7263 6842 31583 – 45688 16600LCoetzer 120983 102834 543226 – 767043 212802DrPhosa – 27358 31583 – 58941 33200

180037 252769 1155848 6263 1594917 407332

DuringtheperiodunderreviewtheDirectors’remunerationwasadjustedtoalignwiththecashflowrequirementsoftheGroupandCompany.TheunpaidportionoftheDirectors’remunerationaretobesettledthroughtheissueofnewJubileesharesundertheauthorityofordinaryresolutionnumber12andspecialresolutionnumber2,passedattheCompany’sAnnualGeneralMeetingheldon27November2013.Theamountthatwasshort-paidtoDirectorsfortheperiodunderreviewamountedto£252769(2015:£232251)andhasbeenprovidedforintheaccounts.Refertonote6onpage44ofthisreportfordetailsofstaffcosts.

Theremunerationof theNon-ExecutiveDirectorsarenot linkedtoattendanceofmeetingsbutpaidmonthly forservicesas Directors.



Board of DirectorsTherewerenochangestotheBoardduringtheperiodunderreviewanduptothedateofthisreport.

Abbreviated biographies of the DirectorsMr Colin Bird

Non-Executive Chairman

MrBirdhasaHigherNationalDiplomainMiningEngineering,isaFellowoftheInstituteofMaterials,MineralsandMiningandaUKCharteredEngineer.HealsoholdsaUKandSouthAfricanMineManagersCertificateforcoalmines.TheformativepartofhiscareerwasspentintheUKcoalminingindustryandthereafterhemovedtotheZambiancopperbeltandthentoSouthAfricatoworkinamanagementpositionwithAngloCoalandBPCoal.OnhisreturntotheUKhewasTechnicalandOperationsDirectorofCostainMiningLimited,whichinvolvedresponsibilityforcoaloperationsintheUK,VenezuelaandSpain.Inadditiontohiscoalminingactivitieshehasbeeninvolvedinthemanagementofnickel,copper,goldandotherdiversemineraloperations.HehasfoundedandfloatedseveralpubliccompaniesintheresourcesectorandservedonresourceCompanyBoardsintheUK,CanadaandSouthAfrica.

Dr Mathews Phosa

Non-Executive Vice-Chairman

DrMathewsPhosaestablishedthefirstblacklawfirminNelspruitin1981.HeisarenownedstrategicandbusinessleaderwhohashadanimmeasurableimpactonthelivesofnumerousSouthAfricans.HeledthemilitarywingofUmkhonto we SizwefromMozambiqueandwaspartoftheANCdelegationwhichsuccessfullynegotiatedapeacefultransitionintoafullydemocraticSouthAfrica.DrPhosawaselectedasthefirstPremierofMpumalangaProvincein1994andwentontoserveastheTreasurerGeneralwithintheExecutiveCommitteeoftheANCfrom2007to2012.HehasprovidedasustainablelegacythroughhiscommitmenttoSpecialOlympicsSouthAfrica,InnibosArtsFestivalandasChairpersonoftheCouncilofUnisa.CommerciallyDrPhosasitsonanumberoflistedCompanyBoards(ValueGroupandJubileePlatinum)aswellasanumberofunlistedentities(HansMerenskyHoldings,VukaTimbers,duToitSmuts&MathewsPhosaAttorneysandMathewsPhosa&Associates).DrPhosareceivedalifetimeachievementawardinJuly2013atthe12thawardsceremonyoftheOliverEmpowermentAwards,forhiscontinuedpersistenceinensuringweengageindebatesaroundreshapingandrebuildingourunderstandingof“real”transformationandempowerment.DrPhosahastwoanthologiesinAfrikaanspoetry,someofwhichareprescribedintheschoolcurriculumforournationalmatricsyllabus.

DrPhosa’sdecoratedcareerachievements includetheCongoleseOrderofMeritpresentedtohimFebruary2014bytheCongolesePresidentDenisSassouNguesso.DrPhosaistheonlyrecipienttoreceivetwoawardsattheAfricanAchieversAwardsinAbuja,NigeriainJuly2016–thefirstawardbestowedonhimwas“LeadershipExcellenceinAfrica”.Hededicatedittogoodgovernanceanddemocracy,andthesecond“LifetimeAchiever”awardhededicatedtoformerPresident,thelateCdeNelsonMandela.DrPhosafurthermadehistorywhenhebecamethefirstmantobepresentedwithanawardbytheAfricanWomeninLeadershipOrganisationattheir8thconferenceintheUSAinAugust2016for“AfricanManoftheYear”forhiseffortandsupporttothecreativityofAfricanWomen.

Mr Christopher Molefe

Non-Executive Director

MrMolefewasformerlytheChiefExecutiveofRoyalBafokengResourcesProprietaryLtdandispresentlytheNon-ExecutiveChairmanofMerafeResourcesLimitedandaNon-ExecutiveDirectorofCapitalOilProprietaryLtd,bothinSouthAfrica.MrMolefehasheldseveralpositionsincorporatebankingandindustryfortheprevious20years.HecommencedhiscareerasGroupHumanResourceManageratUnionCarbideAfricaCorporation.HissubsequentpositionsincludeManagerofCorporateAffairsatMobilOilSouthernAfricaProprietaryLtd;anExecutiveDirectoratBlackManagementForum;aFinancialAnalystatChaseManhattanBank;theMarketingManageratAfricanBankLimited;anExecutiveManageratTransnet(Propnet)ProprietaryLtdandanExecutiveDirectoratDipapatsoMediaProprietaryLtd.



Mr Leon Coetzer

Chief Executive Officer

MrCoetzerisaqualifiedchemicalengineer.BeforejoiningJubilee,hewasemployedfor20yearswithintheAngloAmericanPLCstable,ofwhich16yearswerespentatAngloPlatinum.HislastpositionwasHeadofProcessControlandInstrumentationwherehedefinedandmanagedtheautomationandprocesscontrolstrategyforAngloPlatinum.Theprogrammehasestablisheditselfasarecognisedworldleaderinitsfield.HewasamemberoftheExecutiveProcessCommittee,theResearchandDevelopmentCouncil,andadvisortotheassetoptimisationinitiative.Throughouthiscareer,hehasmanagedbothtechnicalandproductionunitsoflargeoperations,includingbothplatinumconcentratorsandsmelters.HeisamemberoftheadvisoryBoardoftheprocessengineeringfacultiesattheUniversityofPretoriaandisalsoamemberoftheSouthAfricanInstituteofMiningandMetallurgy,andamemberoftheSouthAfricanInstituteofDirectors.

Mr Andrew Sarosi

Executive Director

AndrewSarosiisamineralprocessingengineerwith43years’experienceinoperations,management,consultingandCorporateresponsibilitiesforgold,silver,tungsten,tin,copper,zinc,diamondandrareearthprojectsinSaudiArabia,Ethiopia,SouthernAfrica,WestAfrica,MadagascarandtheUnitedKingdom.AndrewhasheldseniorandadvisorypositionswithConsolidatedGoldFields(UK),AmaxUK,Petromin(MahadadhDahab–SaudiArabia),Mackay&Schnellmann(UK),CSMAssociatesUK(nowWardellArmstrong),LionMiningFinanceandrecentlyadhocadvisertoWolfMineralsPLC.AndrewiscurrentlyExecutiveDirectorofJubilee,havingbeenappointedinJanuary2006andisontheBoardofGalileoResourcesPLCandotherresourcecompanies.

Major shareholdersTheDirectorsareawareofthefollowingsubstantialshareholdingsof3%ormoreofthesharecapitalof991087194ordinarysharesat30June2016:

Ordinary shares of 1p each Number Percentage

HargreavesLansdown(Nominees)Limited 131226579 13.24TDDirectInvestingNominees(Europe)Limited 91241829 9.21BarclayshareNomineesLimited 78613157 7.93JimNomineesLimited 46232791 4.66StandardBankNominees(RF)ProprietaryLtd 40090314 4.05HSDLNomineesLimited 39276100 3.96AgulhasNomineesProprietaryLtd 37610981 3.79

Share issuesDetailsofthesharesissuedintheyeararedisclosedinnote16onpage52ofthefinancialstatements.

Post-reportingdateeventsDetailsofpost-reportingdateeventsaredisclosedinnote28onpage66ofthefinancialstatements.

Creditors’ payment policy and practiceTheGroupandCompany’spolicyistosettletermsofpaymentwithsupplierswhenagreeingtermsofbusiness,toensurethatthesuppliersareawareofthetermsofpaymentandtoabidebythem.TheGroupandCompanysettlesitstradepayablesinaccordancewiththispolicy.

Qualifying indemnity provisionTheCompanyhadaCorporateGuardDirectorsandOfficersInsurancecoverinplaceduringtheyearunderreviewanduptothedateofthisreport.

Political and charitable donationsTheGroupmadenocharitableorpoliticaldonationsduringtheperiodunderreview(2015:£nil).




AuditorsTheDirectorsreviewthetermsofreferencefortheauditorsandobtainwrittenconfirmationthatthefirmhascompliedwithitsethicalguidanceonensuringitsindependence.SafferyChampnessprovidesauditservicestotheCompany.Anynon-audit-relatedserviceshavetoberecommendedbytheAuditCommitteeandapprovedbytheBoard.TheleveloffeeschargedisreviewedbytheBoardtoensuretheyremaincompetitiveandtoensurenoconflictsofinterestarise.

Statement of disclosure to auditorsTheDirectorshavetakenallreasonablestepsinordertomakethemselvesawareofanyrelevantauditinformationandtoensurethattheCompany’sauditorsareawareofthatinformation.AsfarastheDirectorsareaware,thereisnorelevantauditinformationofwhichtheCompanyandGroup’sauditorsareunaware.

OnbehalfoftheBoard

L CoetzerChief Executive Officer

11November2016

Companynumber04459850


TheDirectorsareresponsibleforpreparingtheannualreportandthefinancialstatementsinaccordancewithapplicablelawsand regulations.

CompanyLawrequirestheDirectorstopreparefinancialstatementsforeachfinancialyear.UnderthatlawtheDirectorshavepreparedtheGroupandelectedtopreparetheCompany’sfinancialstatementsinaccordancewithInternationalFinancialReportingStandards(“IFRS”)asadoptedbytheEuropeanUnion.UnderCompanyLawtheDirectorsmustnotapprovethefinancialstatementsunlesstheyaresatisfiedthattheygiveatrueandfairviewofthestateofaffairsoftheGroupandCompanyandoftheprofitorlossoftheGroupandCompanyforthatperiod.TheDirectorsarealsorequiredtopreparefinancialstatementsinaccordancewiththerulesoftheAIMmarketoftheLondonStockExchangeforcompaniestradingsecuritiesontheAIM,aswellasincompliancewiththeJSE’sAltXlistingrules.

Inpreparingthesefinancialstatements,theDirectorsarerequiredto:

• selectsuitableaccountingpoliciesandthenapplythemconsistently;

• makejudgementsandaccountingestimatesthatarereasonableandprudent;

• statewhethertheyhavebeenpreparedinaccordancewithIFRSasadoptedbytheEuropeanUnion,subjecttoanymaterialdeparturesdisclosedandexplainedinthefinancialstatements;and

• prepare thefinancial statementson thegoing-concernbasis,unless it is inappropriate topresume that theCompanywillcontinueinbusiness.

TheDirectorsareresponsibleforkeepingadequateaccountingrecordsthataresufficienttoshowandexplaintheCompany’stransactionsanddisclosewithreasonableaccuracyatanytimethefinancialpositionoftheCompanyandenablethemtoensurethatthefinancialstatementscomplywiththerequirementsoftheCompaniesActoftheUnitedKingdom.TheyarealsoresponsibleforsafeguardingtheassetsoftheCompanyandhencefortakingreasonablestepsforthepreventionanddetectionoffraudandotherirregularities.

Website publicationTheDirectorsareresponsibleforensuringtheannualreportandthefinancialstatementsaremadeavailableonline.FinancialstatementsarepublishedontheCompany’swebsiteinaccordancewithlegislationintheUnitedKingdomandSouthAfrica,governingthepreparationanddisseminationoffinancialstatements,whichmayvaryfromlegislationinother jurisdictions.ThemaintenanceandintegrityoftheCompany’swebsiteistheresponsibilityoftheDirectors.TheDirectors’responsibilityalsoextendstotheongoingintegrityofthefinancialstatementscontainedtherein.

ThefinancialstatementswereauthorisedforissueandapprovedbytheBoardon11November2016andsignedonitsbehalfby:

Leon CoetzerChief Executive Officer

11November2016


Statement of Directors’ responsibilities


TheAuditandRiskCommitteeischairedbyMrChristopherMolefe.Duringthefinancialyearended30June2016theAuditandRiskCommitteecarriedoutitsfunctionsasfollows:

• Nominated the re-appointmentofSafferyChampnessas the registered independentauditorsaftersatisfying itself throughenquirythatSafferyChampnessisindependentasdefinedintermsoftheCorporateLawsAmendmentAct(“CLAA”).

• DeterminedthefeestobepaidtoSafferyChampnessandtheirtermsofengagement.

• Ensuredthatthere-appointmentcompliedwiththeCLAAandanyotherlegislationrelatingtotheappointmentofauditors.

• Reviewedthenatureofanynon-auditservicesprovidedbytheexternalauditors toensurethat the fees forsuchservicesbecomesosignificantthatastocalltoquestiontheirindependence.

TheAuditandRiskCommitteesatisfieditselfthroughenquirythatSafferyChampnessasstatutoryauditorsareindependentoftheCompany.

TheAuditandRiskCommitteehasconsideredandsatisfieditselfoftheappropriatenessandexpertiseoftheChiefFinancialOfficer,CdeBeer,andisunanimouslysatisfiedofhercontinuingsuitabilityfortheposition.

TheAuditandRiskCommitteerecommendedthefinancialstatementsfortheyearended30June2016forapprovaltotheBoard.TheBoardhassubsequentlyapprovedthefinancialstatements,whichwillbeopenfordiscussionattheforthcomingAnnualGeneralMeeting.

Christopher MolefeChairman – Audit and Risk Committee

11November2016


Report of the Audit and Risk Committeefor the year ended 30 June 2016


WehaveauditedtheCompany’sfinancialstatementsofJubileePlatinumPlcfortheyearended30June2016,whichcomprisetheConsolidatedStatementsofComprehensiveIncome,ConsolidatedStatementsofFinancialPosition,ConsolidatedStatementsofCashFlows,ConsolidatedStatementsofChangesinEquityandNotestotheConsolidatedFinancialStatementssetoutonpages 25to67.ThefinancialreportingframeworkthathasbeenappliedintheirpreparationisapplicablelawandInternationalFinancialReportingStandards (IFRSs)asadoptedbytheEuropeanUnionand,asregardstheparentCompanyfinancialstatements,asappliedinaccordancewiththeprovisionsoftheCompaniesAct2006.

ThisreportismadesolelytotheCompany’smembers,asabody,inaccordancewithChapter3ofPart16oftheCompaniesAct2006.OurauditworkhasbeenundertakensothatwemightstatetotheCompany’smembersthosematterswearerequiredtostatetotheminanauditors’reportandfornootherpurpose.Tothefullestextentpermittedbylaw,wedonotacceptorassumeresponsibilitytoanyoneotherthantheCompanyandtheCompany’smembersasabody,forourauditwork,forthisreport,orfortheopinionswehaveformed.

Respective responsibilities of Directors and auditorsAsexplainedmorefullyintheDirectors’ResponsibilitiesStatement,theDirectorsareresponsibleforthepreparationofthefinancialstatementsandforbeingsatisfiedthattheygiveatrueandfairview.OurresponsibilityistoauditandexpressanopiniononthefinancialstatementsinaccordancewithapplicablelawandInternationalStandardsonAuditing(UKandIreland).ThosestandardsrequireustocomplywiththeAuditingPracticesBoard’sEthicalStandardsforAuditors.

Scope of the audit of the financial statementsAnauditinvolvesobtainingevidenceabouttheamountsanddisclosuresinthefinancialstatementssufficienttogivereasonableassurancethatthefinancialstatementsarefreefrommaterialmisstatement,whethercausedbyfraudorerror.Thisincludesanassessmentof:whethertheaccountingpoliciesareappropriatetotheGroup’sandtheparentCompany’scircumstancesandhavebeenconsistentlyappliedandadequatelydisclosed;thereasonablenessofsignificantaccountingestimatesmadebytheDirectors;andtheoverallpresentationofthefinancialstatements.Inaddition,wereadallthefinancialandnon-financialinformationintheAnnualReporttoidentifymaterialinconsistencieswiththeauditedfinancialstatementsandtoidentifyanyinformationthatisapparentlymateriallyincorrectbasedon,ormateriallyinconsistentwith,theknowledgeacquiredbyusinthecourseofperformingtheaudit.Ifwebecomeawareofanyapparentmaterialmisstatementsorinconsistenciesweconsidertheimplicationsforour report.

Opinion on financial statementsInouropinion:

• thefinancialstatementsgiveatrueandfairviewofthestateofaffairsoftheGroupandtheparentcompanyasat30June2016andoftheGroup’slossfortheyearthenended;and

• theGroupfinancialstatementshavebeenproperlypreparedinaccordancewithIFRSsasadoptedbytheEuropeanUnion;and

• theparentCompanyfinancialstatementshavebeenproperlypreparedinaccordancewithIFRSsasadoptedbytheEuropeanUnionandasappliedinaccordancewiththeprovisionsoftheCompaniesAct2006;and

• thefinancialstatementshavebeenpreparedinaccordancewiththerequirementsoftheCompaniesAct2006.

Opinion on other matters prescribed by the Companies Act 2006InouropiniontheinformationgivenintheStrategicReportandtheDirectors’Reportforthefinancialyearforwhichthefinancialstatementsarepreparedisconsistentwiththefinancialstatements.

Matters on which we are required to report by exceptionWehavenothingtoreportinrespectofthefollowingmatterswheretheCompaniesAct2006requiresustoreporttoyouif,inouropinion:

• adequateaccountingrecordshavenotbeenkeptbytheparentcompany,orreturnsadequateforouraudithavenotbeenreceivedfrombranchesnotvisitedbyus;or

Independent auditor’s report to the members of Jubilee


• theparentcompanyfinancialstatementsarenotinagreementwiththeaccountingrecordsandreturns;or

• certaindisclosuresofDirectors’remunerationspecifiedbylawarenotmade;or

• wehavenotreceivedalltheinformationandexplanationswerequireforouraudit.

Andrew GaskellSenior Statutory Auditor

Forandonbehalfof

Saffery Champness Chartered AccountantsStatutory Auditors71QueenVictoriaStreet,LondonEC4V4BE

11November2016

Independent auditor’s report to the members of Jubilee (continued)


Consolidated statements of financial positionas at 30 June 2016

Group CompanyFigures in Sterling Note(s) 2016 2015 2016 2015

AssetsNon-current assetsProperty,plantandequipment 9 4 977 784 88064 – –Intangibleassets 8 61 838 764 59069353 – –Investmentsinsubsidiaries 10 – – 37 923 854 47063331LoanstoGroupcompanies 11 – – 39 519 656 39848038Deferredtax 27 218 345 – – –

67 034 893 59 157 417 77 443 510 86 911 369

Current assetsInventories – 19019 – 19019Otherfinancialassets 23 555 159 – – –Currenttaxreceivable 15 870 15900 – –Tradeandotherreceivables 12 1 074 509 302504 37 082 243770Cashandcashequivalents 13 4 414 908 360829 3 760 540 348467

6 060 446 698 252 3 797 622 611 256

Non-currentassetsheldforsaleandassetsofdisposalgroups 22 – 7696389 – –

total assets 73 095 339 67 552 058 81 241 132 87 522 625

Equity and liabilitiesEquity attributable to equity holders of parentSharecapital 16 82 515 169 75896582 82 515 169 75896582Reserves 17 997 713 16742258 25 131 350 28383026Accumulatedloss (44 300 203) (43495910) (26 883 903) (18266336)

56 212 679 49142930 80 762 616 86013272Non-controllinginterest (42 606) 365071 – –

56 170 073 49 508 001 80 762 616 86 013 272

LiabilitiesNon-current liabilitiesDeferredtax 27 14 677 152 13738729 – –

Current liabilitiesOtherfinancialliabilities 19 – 811890 – 811890Tradeandotherpayables 21 2 248 114 876617 478 516 351422Deferredincome 20 – 346041 – 346041

2 248 114 2 034 548 478 516 1 509 353

Liabilitiesofdisposalgroups 22 – 2270780 – –

total liabilities 16 925 266 18 044 057 478 516 1 509 353

total equity and liabilities 73 095 339 67 552 058 81 241 132 87 522 625

1 Refer to the Directors’ report on page 12 of this report for a detailed breakdown of the major components of the Group’s operating expenses.

Theaccompanyingaccountingpoliciesandnotesonpages30to67formanintegralpartofthesefinancialstatements.

ThefinancialstatementswereauthorisedforissueandapprovedbytheBoardon11November2016andsignedonitsbehalfby:

Leon CoetzerChief Executive OfficerCompanynumber:04459850


Consolidated statements of comprehensive incomefor the year ended 30 June 2016


Continuing operationsRevenue 1 473 921 48899 346 041 45014Costofsales (608 309) (25529) (19 019) (25529)

Gross profit 865 612 23 370 327 022 19 485Otherincome 10 725 8586 – –Operatingexpenses (4 690 862)(1) (2843607) (3 206 738) (826650)

Operating loss 4 (3 814 525) (2 811 651) (2 879 716) (807 165)Investmentrevenue 144 077 65283 23 701 65283Gain/(loss)onnon-currentassetsheldforsaleordisposal groups 22 84 680 – (4 286 166) –Impairmentofsubsidiaryloansofdisposalgroup – – (6 174 421) –

Financecosts (13 418) (194758) (13 413) (194754)

Lossbeforetaxation (3 599 186) (2941126) (13 330 015) (936636)Taxation 7 201 901 – – –

Loss from continuing operations (3 397 285) (2 941 126) (13 330 015) (936 636)Discontinued operationsLossfromdiscontinuedoperations 22 (276 660) (504196) – –

Loss for the year (3 673 945) (3 445 322) (13 330 015) (936 636)Other comprehensive income:Exchangedifferencesontranslatingforeignoperations 2 653 926 (4497075) – –

total comprehensive loss (1 020 019) (7 942 397) (13 330 015) (936 636)

Attributable to:

Owners of the parent:Lossfortheyearfromcontinuingoperations (3 412 174) (2906928) (13 330 015) (936636)Lossfortheyearfromdiscontinuingoperations (283 749) (628442) – –

Loss for the year attributable to owners of the parent (3 695 923) (3 535 370) (13 330 015) (936 636)

Non-controlling interest:Profit/(loss)fortheyearfromcontinuingoperations 14 889 (34198) – –Profit/(loss)fortheyearfromdiscontinuingoperations 7 089 124246 – –

Profit for the year attributable to non-controlling interest 21 978 90 048 – –

total comprehensive loss attributable to:Ownersoftheparent (1 009 610) (8006476) (13 330 015) (936636)Non-controllinginterest (10 409) 64079 – –

(1 020 019) (7 942 397) (13 330 015) (936 636)

Basicanddilutedlosspershare(pence)–continuingoperations (0.38) (0.45)

Basicanddilutedlosspershare(pence)–discontinuedoperations (0.03) (0.10)

Losspershare (0.41) (0.55)

1 Refer to the Directors’ report on page 12 for a breakdown of the major components of the Group’s operating expenses.


Consolidated statements of changes in equityfor the year ended 30 June 2016

Figures in Sterling Share capital

Foreigncurrency

translationreserve

Mergerreserve

Share-basedpaymentreserve Total reserves

Accumulatedloss

Totalattributable

to equityholders of

the Group/Company

Non-controlling

interest Total equity

GroupBalance at 1 July 2014 73 434 453 (7 169 662) 23 184 000 4 918 210 20 932 548 (40 428 540) 53 938 461 177 179 54 115 640Changes in equityTotal comprehensive income for the year – (4 471 106) – – (4 471 106) (3 535 370) (8 006 476) 64 079 (7 942 397)Issue of share capital net of costs 2 462 129 – – – – – 2 462 129 – 2 462 129Warrants issued – – – 748 816 748 816 – 748 816 – 748 816Share options forfeited – – – (468 000) (468 000) 468 000 – – –Changes in ownership interest control not lost – – – – – – – 123 813 123 813

Total changes 2 462 129 (4 471 106) – 280 816 (4 190 290) (3 067 370) (4 795 531) 187 892 (4 607 639)

Balance at 1 July 2015 75 896 582 (11 640 768) 23 184 000 5 199 026 16 742 258 (43 495 910) 49 142 930 365 071 49 508 001Changes in equityTotal comprehensive income for the year – 2 686 313 – – 2 686 313 (3 695 923) (1 009 616) (10 409) (1 020 019)Issue of share capital net of costs 6 618 587 – – – – – 6 618 587 – 6 618 587Disposal of subsidiaries – 1 820 818 – – 1 820 818 (1 820 818) – (397 268) (397 268)Warrants issued – – – 304 925 304 925 – 304 925 – 304 925Options issued under new scheme – – – 1 155 847 1 155 847 – 1 155 847 – 1 155 847Option cancelled under old scheme – – – (4 450 210) (4 450 210) 4 450 210 – – –Warrants exercised – – – (258 306) (258 306) 258 306 – – –Warrants lapsed – – – (3 932) (3 932) 3 932 – – –

Total changes 6 618 587 4 507 131 – (3 251 676) 1 255 455 (804 243) 7 069 749 (407 677) 6 662 072

Balance at 30 June 2016 82 515 169 (7 133 637) 23 184 000 1 947 350 17 997 713 (44 300 203) 56 212 679 (42 606) 56 170 073

Note(s) 17


Consolidated statements of changes in equity (continued)for the year ended 30 June 2016

Figures in Sterling Share capitalMergerreserve

Share-basedpaymentreserve Total reserves

Accumulatedloss

Totalattributable

to equityholders of

the Group/Company Total equity

CompanyBalance at 1 July 2014 73 434 453 23 184 000 4 918 210 28 102 210 (17 329 700) 84 206 963 84 206 963Changes in equityTotal comprehensive income for the year – – – – (936 636) (936 636) (936 636)Issue of shares 2 462 129 – – – – 2 462 129 2 462 129Warrants issued – – 748 816 748 816 – 748 816 748 816Share options forfeited – – (468 000) (468 000) – (468 000) (468 000)

Total changes 2 462 129 – 280 816 280 816 (936 636) 1 806 309 1 806 309

Balance at 1 July 2015 75 896 582 23 184 000 5 199 026 28 383 026 (18 266 336) 86 013 272 86 013 272Changes in equityTotal comprehensive income for the year – – – – (13 330 015) (13 330 015) (13 330 015)Issue of shares 6 618 587 – – – – 6 618 587 6 618 587Warrants issued – – 304 925 304 925 – 304 925 304 925Options issued under new scheme – – 1 155 847 1 155 847 – 1 155 847 1 155 847Option cancelled under old scheme – – (4 450 210) (4 450 210) 4 450 210 – –Warrants exercised – – (258 306) (258 306) 258 306 – –Warrants lapsed – – (3 932) (3 932) 3 932 – –

Total changes 6 618 587 – (3 251 676) (3 251 676) (8 617 567) (5 250 656) (5 250 656)

Balance at 30 June 2016 82 515 169 23 184 000 1 947 350 25 131 350 (26 883 903) 80 762 616 80 762 616

Note(s) 17


Consolidated statements of cash flowsfor the year ended 30 June 2016


Cash flows from operating activitiesCashusedinoperations 14 (688 883) (1251279) (619 316) 761299Interestincome 144 077 65283 23 701 65283Financecosts (13 418) (194758) (13 413) (194754)

Net cash from operating activities (558 224) (1 380 754) (609 028) 631 828

Cash flows from investing activitiesPurchaseofproperty,plantandequipment 9 (4 548 858) (5904) – –Saleofproperty,plantandequipment 9 – (42547) – (45014)Purchaseofotherintangibleassets 8 (4 239) (45334) – –Netcashflowfromdisposalofdiscontinuedoperations 22 3 986 126 – – –Loansadvancedtogroupcompanies – – (1 741 969) (1878765)Increaseinotherfinancialassets 23 (555 159) – – –Cashremovedaspartofdisposalgroup – (163002) – –

Net cash from investing activities (1 122 130) (256 787) (1 741 969) (1 923 779)

Cash flows from financing activitiesNetproceedsonshareissues 5 865 560 1413280 5 865 560 1413280Repaymentofotherfinancialliabilities (102 490) (264323) (102 490) (222295)

Net cash from financing activities 5 763 070 1 148 957 5 763 070 1 190 985

total cash movement for the year 4 082 716 (488 584) 3 412 073 (100 966)Totalcashatthebeginningoftheyear 360 829 733399 348 467 449433Effectofexchangeratemovementoncashbalances (28 637) 116014 – –

total cash at end of the year 13 4 414 908 360 829 3 760 540 348 467


1. PRESENtAtION OF FINANCIAL StAtEMENtSTheGroupandCompanyresultsfortheyearended30June2016havebeenpreparedusingtheaccountingpoliciesappliedbytheCompanyinits30June2015annualreport,whichareinaccordancewithInternationalFinancialReportingStandards(IFRSandIFRCinterpretations)issuedbytheInternationalAccountingStandardsBoard(“IASB”)asadoptedforuseintheEU(IFRS),includingtheSAICAfinancialreportingguidesasissuedbytheAccountingPracticesCommitteeandtheCompaniesAct2006(UK).TheyarepresentedinPoundSterling.

Forincomestatementpurposesconversionsareattheaverate£:ZARratesandforbalancesheetpurposesconversionsareattheclosingrateasattheperiodend.Allotherconverstionsareatratesasatthetimeannounced.

1.1 ConsolidationBasis of consolidation

Theconsolidated financialstatements incorporate the financialstatementsof theCompanyandallentities,whicharecontrolledbytheCompany.ControlisachievedwhentheCompany:

• hasthepowerovertheinvestee;

• isexposed,orhasrightstovariablereturnfromitsinvolvementwiththeinvestee;and

• hastheabilitytouseitspowertoaffectsitsreturns.

TheCompanyreassesseswhetherornotitcontrolsaninvesteeiffactsandcircumstancesindicatethattherearechangestooneormoreofthethreeelementsofcontrollistedabove.

Theresultsofsubsidiariesareincludedintheconsolidatedfinancialstatementsfromtheeffectivedateofacquisitiontotheeffectivedateofdisposal.AdjustmentsaremadewhennecessarytothefinancialstatementsofsubsidiariestobringtheiraccountingpoliciesinlinewiththoseoftheGroup.

Allintra-Grouptransactions,balances,incomeandexpensesareeliminatedinfullonconsolidation.

WhentheCompanyhaslessthanamajorityofthevotingrightsofaninvestee,itconsidersthatithaspowerovertheinvesteewhenthevotingrightsaresufficienttogiveitthepracticalabilitytodirecttherelevantactivitiesoftheinvesteeunilaterally.TheCompanyconsidersall relevant factsandcircumstances inassessingwhetherornot theCompany’svotingrightsinaninvesteearesufficienttogiveitpower,including:

• thesizeof theCompany’sholdingof voting rights relative to thesizeanddispersionofholdingsof theothervoteholders;

• potentialvotingrightsheldbytheCompany,othervoteholdersorotherparties;

• rightsarisingfromothercontractualarrangements;and

• anyadditionalfactsandcircumstancesthat indicatethattheCompanyhas,ordoesnothave,thecurrentabilitytodirect the relevant activities at the time that decisions need to be made, including voting patterns at previousshareholders’meetings.

Non-controllinginterestsinthenetassetsofconsolidatedsubsidiariesareidentifiedandrecognisedseparatelyfromtheGroup’sinteresttherein,andarerecognisedwithinequity.Lossesofsubsidiariesattributabletonon-controllinginterestsareallocated to thenon-controlling interesteven if this results inadebitbalancebeingrecognised fornon-controllinginterest.

Transactionswhichresultinchangesinownership,wheretheGrouphadcontrolofthesubsidiary,bothbeforeandafterthetransaction,areregardedasequitytransactionsandarerecogniseddirectly inthestatementofchangesinequity.Thedifferencebetweenthefairvalueofconsiderationpaidorreceivedandthemovementinnon-controllinginterestforsuchtransactionsisrecognisedinequityattributabletotheownersoftheparent.

Whereasubsidiaryisdisposedofandanon-controllingshareholdingisretained,theremaininginvestmentismeasuredtofairvaluewiththeadjustmenttofairvaluerecognised inprofitor lossaspartofthegainor lossondisposalofthecontrollinginterest.

Notes to the consolidated financial statementsfor the year ended 30 June 2016


Notes to the consolidated financial statements (continued)for the year ended 30 June 2016

Business combinations

TheGroupaccountsforbusinesscombinationsusingtheacquisitionmethodofaccounting.Thecostofthebusinesscombinationismeasuredastheaggregateofthefairvaluesofassetsgiven, liabilitiesincurredorassumedandequityinstrumentsissued.Costsdirectlyattributabletothebusinesscombinationareexpensedasincurred,exceptthecoststoissuedebtwhichareamortisedaspartoftheeffectiveinterestandcoststoissueequitywhichareincludedinequity.

Contingentconsiderationisincludedinthecostofthecombinationatfairvalueasatthedateofacquisition.Subsequentchangestotheassets,liabilityorequitywhichariseasaresultofthecontingentconsiderationarenotaffectedagainstgoodwill,unlesstheyarevalidmeasurementperiodadjustments.

Theacquiree’s identifiableassets, liabilitiesandcontingent liabilitieswhichmeet the recognitionconditionsof IFRS3:BusinessCombinations,arerecognisedattheirfairvaluesatacquisitiondate,exceptfornon-currentassets(ordisposalgroup)thatareclassifiedasheldforsaleinaccordancewithIFRS5:Non-currentAssetsHeld-for-SaleandDiscontinuedOperations,whicharerecognisedatfairvaluelesscoststosell.

Contingent liabilitiesareonly included in the identifiableassetsand liabilitiesof theacquireewhere there isapresentobligationatacquisitiondate.Onacquisition,theGroupassessestheclassificationoftheacquiree’sassetsandliabilitiesandreclassifiesthemwheretheclassificationisinappropriateforGrouppurposes.Thisexcludesleaseagreementsandinsurancecontractswhoseclassificationremainsaspertheirinceptiondate.

Non-controlling interest arising fromabusiness combination ismeasuredeither at their shareof the fair valueof theassetsandliabilitiesoftheacquireeoratfairvalue.Thetreatmentisnotanaccountingpolicychoicebutisselectedforeachindividualbusinesscombination,anddisclosedinthenoteforbusinesscombinations.IncaseswheretheGroupheldanon-controllingshareholdingintheacquireepriortoobtainingcontrol,thatinterestismeasuredtofairvalueasatacquisitiondate.Themeasurementtofairvalueisincludedinprofitorlossfortheyear.Wheretheexistingshareholdingwasclassifiedasanavailable-for-salefinancialasset,thecumulativefairvalueadjustmentsrecognisedpreviouslytoprofitorlossandaccumulatedinequityarerecognisedinprofitorlossasareclassificationadjustment.

Goodwill represents theexcessof thecostofabusinesscombinationover the interest in the fairvalueof identifiableassets,liabilitiesandcontingentliabilitiesacquired.Costcomprisesthefairvaluesofassetsgiven,liabilitiesassumedandequityinstrumentsissued.

Goodwill isnotamortisedbutistestedonanannualbasisfor impairment.Ifgoodwill isassessedtobeimpaired,thatimpairmentisnotsubsequentlyreversed.Goodwillarisingonacquisitionofforeignentitiesisconsideredanassetoftheforeignentity.InsuchcasesthegoodwillistranslatedtothefunctionalcurrencyoftheGroupattheendofeachreportingperiodwiththeadjustmentrecognisedinequitythroughtoothercomprehensiveincome.

Goodwill iscapitalisedasan intangibleassetwithany impairment incarryingvaluebeingchargedtotheconsolidatedstatementofcomprehensiveincome.Wherethefairvalueofidentifiableassets,liabilitiesandcontingentliabilitiesexceedthefairvalueofconsiderationpaid,theexcessiscreditedinfulltotheconsolidatedstatementofcomprehensiveincomeontheacquisitiondate.

Merger reserve

Thedifferencebetweenthefairvalueofanacquisitionandthenominalvalueofthesharesallottedinashareexchangehasbeencreditedtoamergerreserveaccount, inaccordancewiththemergerreliefprovisionsoftheCompaniesAct2006andaccordinglynosharepremiumforsuchtransactionsissetup.Thisreservearosefromobtaininga90%ormoreinterestinthesharesofanotherentitybyvirtueofashare-for-shareexchange.

Purchase of non-controlling interest in a controlled entity

Thecostofthepurchaseofsharesismeasuredattheaggregateofthefairvalueofassetsgivenatthedateofexchange,liabilities incurredorassumedandthefairvalueoftheequity instruments issuedbytheGroupinexchangeforsharespurchased in a controlled entity. Any costs directly attributable to the transaction, are charged to the statement ofcomprehensiveincome.



1. PRESENtAtION OF FINANCIAL StAtEMENtS (continued)1.2 Property, plant and equipment

Thecostofanitemofproperty,plantandequipmentisrecognisedasanassetwhen:

• itisprobablethatfutureeconomicbenefitsassociatedwiththeitemwillflowtotheCompany;and

• thecostoftheitemcanbemeasuredreliably.

Property,plantandequipmentisinitiallymeasuredatcost.Costsincludecostsincurredinitiallytoacquireorconstructanitemofproperty,plantandequipmentandcostsincurredsubsequentlytoaddto,replacepartof,orserviceit. Ifareplacementcostisrecognisedinthecarryingamountofanitemofproperty,plantandequipment,thecarryingamountofthereplacedpartisderecognised.Subsequenttoinitialrecognition,property,plantandequipmentiscarriedatcostlessaccumulateddepreciationandanyimpairmentlosses.

Property,plantandequipmentaredepreciatedover theirexpecteduseful lives to theirestimatedresidualvalue.Plantunderconstructionisnotdepreciateduntilitiscommissionedandoperational.

Landisnotdepreciated.Depreciationofplantandequipmentiscalculatedonastraight-linebasisusingrateswhicharedesignedtowriteofftheassetsovertheirestimatedusefullivesasfollows:

Buildings 20yearsPlantandequipment 3–8yearsFurnitureandfittings 10yearsMotorvehicles 5yearsComputerequipment 3years

Theresidualvalue,usefullifeanddepreciationmethodofeachassetarereviewedattheendofeachreportingperiod.If theexpectationsdiffer frompreviousestimates, thechange isaccounted forasachange inaccountingestimates.Thedepreciationcharge foreachperiod is recognised inprofitor lossunless it is included in thecarryingamountofanotherasset.

Thegainorlossarisingfromthederecognitionofanitemofproperty,plantandequipmentisincludedinprofitorlosswhentheitemisderecognised.Thegainorlossarisingfromthederecognitionofanitemofproperty,plantandequipmentisdeterminedasthedifferencebetweenthenetdisposalproceeds,ifany,andthecarryingamountoftheitem.

1.3 Intangible assetsIntangible assets – exploration and evaluation

Explorationandevaluationcosts,includingthecostsofacquiringlicences,arecapitalisedasexplorationandevaluationassetsonanareaofinterestbasis.Costsincurredbeforetheconsolidatedentityhasobtainedthelegalrightstoexploreanareaarerecognisedinthestatementofcomprehensiveincome.

Explorationandevaluationassetsareonlyrecognisediftherightsoftheareaofinterestarecurrentandeither:

• the expenditures are expected to be recouped through successful development and exploitation of the area ofinterest;or

• activitiesintheareaofinteresthavenot,atthereportingdate,reachedastagewhichpermitsareasonableassessmentoftheexistenceorotherwiseofeconomicallyrecoverablereservesandactiveandsignificantoperationsin,orinrelationto,theareaofcontinuinginterest.

Explorationandevaluationassetsareassessedforimpairmentonanannualbasisif:(i)sufficientdataexiststodeterminetechnicalfeasibilityandcommercialviabilityand(ii)factsandcircumstancessuggestthatthecarryingamountexceedsthe recoverable amount. For the purposes of impairment testing, exploration and evaluation assets are allocated tocash-generatingunits(“CGUs”)towhichtheexplorationactivityrelated.

Therecoverableamountisdeterminedasthehigherof:(a)itsfairmarketvaluelesscoststosellor(b)thesumofcashflows,onanetpresentvaluebasis(value-in-use),fromcontinuedoperationsoftheCGU.



Once the technical feasibilityandcommercial viabilityof theextractionofmineral resources inanareaof interestaredemonstrable,explorationandevaluationassetsattributabletothatareaof interestarefirsttestedfor impairmentandthenreclassifiedfromintangibleassetstominingpropertyanddevelopmentassetswithinproperty,plantandequipment.

Intangible assets – development costs

Developmentcostsrelatingtomajordevelopmentprogrammesarecapitalised.Initialdevelopmentandpre-productioncostsrelatingtoanewtechnology,includingamortisationanddepreciationtodevelopthetechnologyarecapitaliseduntilcommissioningofproductionfacilities.Developmentcostsconsistprimarilyofexpendituretodevelopthetechnologytocommercialisation.DevelopmentcostwillbecapitalisediftheCompanycandemonstratethefollowing:

• technicalfeasibilityofcompletionoftheasset;

• theabilitytouseorselltheasset;

• theintentiontocompletetheintangibleassettouseorsell;

• theavailabilityofadequatetechnical,financialandotherresourcestocompletethedevelopmentandtouseandselltheintangible;

• anabilitytodemonstratehowtheassetwillgeneratefutureeconomicbenefits;and

• theabilitytomeasurereliablytheexpenditureattributabletotheasset.

Developmentcostscapitalisedhaveafinitelifeandareamortisedonastraight-linebasisovertheusefullifeoftheasset.Day-to-daydevelopmentcoststomaintainproductionareexpensedasincurred.

Amortisationforeachperiodisrecognisedinthestatementofcomprehensiveincome.

TheGroupreviewsthecarryingamountofdevelopmentassetsanddevelopmentcostswhencircumstancessuggestthecarryingamountmaynotberecoverable.Recoverabilityisassessedusingestimatesoffuturecashflowsonadiscountedbasis, including revenues, operating costs and future capital expenditures.Where necessary, impairment in carryingamountisrecorded.Anyimpairmentisrecordedinthestatementofcomprehensiveincome.

For theNickel project coredrilling costs andother costs relating to thepilot plant test and to complete theDefiniteFeasibilityStudy (“DFS”)on the reclamationandprocessingof thesulphitenickel tailingsarecapitalised to theNickelproject.

OncethedefinitefeasibilityandcommercialviabilityoftheNickeltailingsresourcesaredemonstrable,theassetwillfirstbetestedforimpairmentandthenreclassifiedfromintangibleassetstominingpropertyanddevelopmentassetswithinproperty,plantandequipment.

1.4 Financial instrumentsFinancial instrumentsarerecognisedwhentheGroupbecomesapartytothecontractualprovisionof the instrument.Thesefinancialinstrumentsarerecognisedinitiallyatfairvalue.Forinstrumentsnotatfairvaluethroughprofitorloss,anydirectlyattributabletransactioncostsareincluded.

FinancialassetsarederecognisediftheGroup’scontractualrightstothecashflowsfromthefinancialassetsexpireoriftheGrouptransfersthefinancialassetsorsubstantiallytransfersallriskandrewardsoftheassettoanotherpartywithoutretainingcontrol.Financial liabilitiesarederecognised if theGroup’sobligationsspecified in thecontractexpireoraredischargedorcancelled.

TheGroupclassifiesfinancialinstruments,ortheircomponentparts,oninitialrecognitionasafinancialasset,afinancialliabilityoranequityinstrumentinaccordancewiththesubstanceofthecontractualarrangement.


1. PRESENtAtION OF FINANCIAL StAtEMENtS (continued)1.4 Financial instruments (continued)

Impairment of financial assets

AteachreportingdatetheGroupassessesall financialassets,other thanthoseat fairvaluethroughprofitor loss, todeterminewhether there is objective evidence that a financial asset orGroup of financial assets has been impaired.ForamountsduetotheGroup,significantfinancialdifficultiesofthedebtor,probabilitythatthedebtorwillenterbankruptcyanddefaultofpaymentsareallconsideredindicatorsofimpairment.

Inthecaseofequitysecuritiesclassifiedasavailable-for-sale,asignificantorprolongeddecline inthefairvalueofthesecuritybelowitscostisconsideredanindicatorofimpairment.Ifanysuchevidenceexistsforavailable-for-salefinancialassets, the cumulative lossmeasuredas thedifferencebetween the acquisition cost andcurrent fair value, less anyimpairmentlossonthatfinancialassetpreviouslyrecognisedinprofitorlossisremovedfromequityasareclassificationadjustmenttoothercomprehensiveincomeandrecognisedinprofitorloss.

Impairmentlossesarerecognisedinprofitorloss.Impairmentlossesarereversedwhenanincreaseinthefinancialasset’srecoverableamountcanbe relatedobjectively toaneventoccurringafter the impairmentwas recognised,subject totherestrictionthatthecarryingamountofthefinancialassetatthedatethattheimpairmentisreversedshallnotexceedwhatthecarryingamountwouldhavebeenhadthe impairmentnotbeenrecognised.Reversalsof impairment lossesarerecognisedinthestatementofcomprehensiveincome,exceptforequityinvestmentsclassifiedasavailable-for-sale.Impairment lossesarealsonotsubsequently reversed foravailable-for-saleequity investmentswhichareheldatcostbecausefairvaluewasnotdeterminable.

Wherefinancialassetsare impairedthroughuseofanallowanceaccount,theamountofthe loss isrecognisedinthestatementofcomprehensiveincomewithinoperatingexpenses.Whensuchassetsarewrittenoffthewrite-offismadeagainst the relevant allowance account. Subsequent recoveries of amounts previouslywritten off are credited to thestatementofcomprehensiveincome.

trade and other receivables

Tradereceivablesaremeasuredatinitialrecognitionatfairvalue,andaresubsequentlymeasuredatamortisedcostusingtheeffectiveinterestratemethod.Appropriateallowancesforestimatedirrecoverableamountsarerecognisedinprofitorlosswhenthereisobjectiveevidencethattheassetisimpaired.Significantfinancialdifficultiesofthedebtor,probabilitythat thedebtorwill enter bankruptcyor financial re-organisation, anddefault or delinquency in payments (more than30daysoverdue)areconsideredindicatorsthatthetradereceivableisimpaired.Theallowancerecognisedismeasuredasthedifferencebetweentheasset’scarryingamountandthepresentvalueofestimatedfuturecashflowsdiscountedattheeffectiveinterestratecomputedatinitialrecognition.

Thecarryingamountof theasset isreducedthroughtheuseofanallowanceaccount,andtheamountof the loss isrecognisedinprofitorlosswithinoperatingexpenses.Whenatradereceivableisuncollectable,itiswrittenoffagainsttheallowanceaccountfortradereceivables.Subsequentrecoveriesofamountspreviouslywrittenoffarecreditedagainstoperatingexpensesinprofitorloss.Tradeandotherreceivablesareclassifiedasloansandreceivables.

Cash and cash equivalents

Cashandcashequivalentscomprisecash-on-handanddemanddeposits,andothershort-termhighlyliquidinvestmentsthat are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value.Theseareinitiallyrecognisedatfairvalueandsubsequentlyatamortisedcost.

Loans to/(from) Group companies

Theseincludeloanstoandfromholdingcompanies,fellowsubsidiaries,subsidiaries,jointventuresandassociatesandarerecognisedinitiallyatfairvalueplusdirecttransactioncosts.LoanstoGroupcompaniesareclassifiedasloansandreceivablesarereviewedforimpairmentattheendofeachreportingperiod.



trade and other payables

Tradepayablesareinitiallymeasuredatfairvalue,andaresubsequentlymeasuredatamortisedcost,usingtheeffectiveinterestratemethod.

Interest-bearing liabilities

Interest-bearingdebtismeasuredatamortisedcostusingtheeffectiveinterestratemethod.

Loans to/(from) related parties

Loanstosubsidiariesaremeasuredatamortisedcostusingtheeffectiveinterestratemethod.

1.5 Non-current assets held for sale and disposal groupsNon-currentassetsanddisposalgroupsareclassifiedasheldforsaleiftheircarryingamountwillberecoveredthroughasale transaction rather than throughcontinuinguse.Thiscondition is regardedasmetonlywhen thesale ishighlyprobableandtheasset(ordisposalgroup)isavailableforimmediatesaleinitspresentcondition.Managementmustbecommittedtothesale,whichshouldbeexpectedtoqualifyforrecognitionasacompletedsalewithinoneyearfromthedateofclassification.

Non-currentassetsheldforsale(ordisposalgroup)aremeasuredatthelowerofitscarryingamountandfairvaluelesscoststosell.

Anon-currentassetisnotdepreciated(oramortised)whileitisclassifiedasheldforsale,orwhileitispartofadisposalgroupclassifiedasheldforsale.

Interestandotherexpensesattributabletotheliabilitiesofadisposalgroupclassifiedasheldforsalearerecognisedinprofitorloss.

1.6 taxCurrent tax assets and liabilities

Currenttaxforcurrentandpriorperiodsis,totheextentunpaid,recognisedasaliability.Iftheamountalreadypaidinrespectofcurrentandpriorperiodsexceedstheamountdueforthoseperiods,theexcessisrecognisedasanasset.

Current tax liabilities/(assets) for the current and prior periods are measured at the amount expected to be paidto/(recoveredfrom)thetaxauthorities,usingthetaxrates(andtaxlaws)thathavebeenenactedorsubstantivelyenactedbytheendofthereportingperiod.

Deferred tax assets and liabilities

Deferred tax

Deferredtaxliabilitiesaregenerallyrecognisedforalltaxabletemporarydifferencesanddeferredtaxassetsaregenerallyrecognisedforalldeductibletemporarydifferencestotheextentthat it isprobablethattaxableprofitswillbeavailableagainstwhich thosedeductible temporarydifferencescanbeutilisedexcept fordifferencesarisingon investments insubsidiarieswhere theGroup isable tocontrol the timingof the reversalof thedifferenceand it isprobable that thedifferencewillnotreverseintheforeseeablefuture.

Deferredtaxisnotprovidedforoninitialrecognitionofgoodwill,initialrecognitionofanassetorliabilityinatransactionwhichisnotabusinesscombinationandatthetimeofthetransactionaffectneitheraccountingnortaxableprofitandinvestment insubsidiariesandtheGroup isabletocontrol thetimingof thereversalof thedifferenceand isprobablethatthedifferenceswillnotreverseintheforeseeablefuture.Recognitionofthedeferredtaxassetsisrestrictedtothoseinstanceswhereitisprobablethatthetaxableprofitwillbeavailableagainstwhichthedifferencecanbeutilised.Deferredtaxisalsobasedonratesenactedorsubstantivelyenactedatthereportingdateandexpectedtoapplywhentherelateddeferredtaxasset isrealisedor liabilitysettled.Deferredtaxischargedorcreditedinthestatementofcomprehensiveincome,exceptwhenitrelatestoitemschargedorcrediteddirectlytoequity,inwhichcasethedeferredtaxisalsodealtwithinequity.



1. PRESENtAtION OF FINANCIAL StAtEMENtS (continued)1.6 tax (continued)

Tax expenses

Theidentifiableassetsacquiredandliabilitiesassumedinabusinesscombinationarerecognisedattheirfairvaluesattheacquisitiondate.Deferredtaxisrecognisedontemporarydifferencesresultingfromfairvalueadjustments.Temporarydifferencesarisewhenthetaxbasesofthe identifiableassetsacquiredandliabilitiesassumedarenotaffectedbythebusinesscombinationorareaffecteddifferently.Theresultingdeferredtaxassetorliabilityaffectsgoodwillrecognisedonbusinesscombinations.Deferredtaxassetsandliabilitiesaremeasuredatthetaxratesthatareexpectedtoapplytotheperiodwhentheassetisrealisedortheliabilityissettled,basedontaxrates(andtaxlaws)thathavebeenenactedorsubstantivelyenactedbytheendofthereportingperiod.

Deferred tax is allocated between continuing and discontinued operations. Deferred tax adjustments in respect ofdiscontinuedoperationsareincludedonthefaceofthestatementofcomprehensiveincomeundertheheading(loss)/profitfromdiscontinuedoperations.

Currentanddeferredtaxesarerecognisedasincomeoranexpenseandincludedinprofitorlossfortheperiod,excepttotheextentthatthetaxarisesfrom:

• atransactionoreventwhichisrecognised,inthesameoradifferentperiod,toprofitorloss;or

• abusinesscombination.

Current taxanddeferred taxesarechargedorcredited toprofitor loss if the tax relates to itemsthatarecreditedorcharged,inthesameoradifferentperiod,toprofitorloss.

Currenttaxanddeferredtaxesarechargedorcrediteddirectlytoequity ifthetaxrelatestoitemsthatarecreditedorcharged,inthesameoradifferentperiod,directlyinequity.

1.7 InventoriesInventoriesaremeasuredatthelowerofcostandnetrealisablevalue.Netrealisablevalueistheestimatedsellingpriceintheordinarycourseofbusinesslesstheestimatedcostsofcompletionandtheestimatedcostsnecessarytomakethe sale.

Thecostof inventoriescomprisesallcostsofpurchase,costsofconversionandothercosts incurred inbringing theinventoriestotheirpresentlocationandcondition.

Thecostofinventoriesofitemsthatarenotordinarilyinterchangeableandgoodsorservicesproducedandsegregatedforspecificprojectsisassignedusingspecificidentificationoftheindividualcosts.

Thecostofinventoriesisassignedusingthemethodmostappropriatetotheparticularclassofinventory,withthemajoritybeingvaluedonafirst-infirst-outbasis.Thesamecostformulaisusedforallinventorieshavingasimilarnatureandusetotheentity.

Wheninventoriesaresold,thecarryingamountofsuchinventoriesisrecognisedasanexpenseintheperiodinwhichtherelatedrevenueisrecognised.Theamountofanywrite-downofinventoriestonetrealisablevalueandalllossesofinventoriesisrecognisedasanexpenseintheperiodthewritedownorlossoccurs.Theamountofanyreversalofanywrite-downofinventories,arisingfromanincreaseinnetrealisablevalue,arerecognisedasareductionintheamountofinventoriesrecognisedasanexpenseintheperiodinwhichthereversaloccurs.

1.8 Impairment of assetsThe Group assesses at each end of the reporting period whether there is any indication that an asset may beimpaired.Ifanysuchindicationexists,theGroupestimatestherecoverableamountoftheasset.



Irrespectiveofwhetherthereisanyindicationofimpairment,theGroupalso:

• testsintangibleassetswithanindefiniteusefullifeorintangibleassetsnotyetavailableforuseforimpairmentannuallybycomparingitscarryingamountwithitsrecoverableamount.Thisimpairmenttest isperformedduringtheannualperiodandatthesametimeeveryperiod;and

• testsgoodwillacquiredinabusinesscombinationforimpairmentannually.

Ifthereisanyindicationthatanassetmaybeimpaired,therecoverableamountisestimatedfortheindividualasset.Ifitisnotpossibletoestimatetherecoverableamountoftheindividualasset,therecoverableamountoftheCGUtowhichtheassetbelongsisdetermined.

TherecoverableamountofanassetoraCGUisthehigherofitsfairvaluelesscoststosellanditsvalue-in-use.

If therecoverableamountofanasset is lessthan itscarryingamount,thecarryingamountoftheasset isreducedtoits recoverable amount. That reduction is an impairment loss. An impairment loss of assets carried at cost less anyaccumulateddepreciationoramortisationisrecognisedimmediatelyinprofitorloss.Anyimpairmentlossofarevaluedassetistreatedasarevaluationdecrease.

Goodwillacquiredinabusinesscombinationis,fromtheacquisitiondate,allocatedtoeachoftheCGUs,orgroupsofCGUs,thatareexpectedtobenefitfromthesynergiesofthecombination.

AnimpairmentlossisrecognisedforCGUsiftherecoverableamountoftheunitislessthanthecarryingamountoftheunits.Theimpairmentlossisallocatedtoreducethecarryingamountoftheassetsoftheunitinthefollowingorder:

• first,toreducethecarryingamountofanygoodwillallocatedtotheCGU;and

• then,totheotherassetsoftheunit,prorataonthebasisofthecarryingamountofeachassetintheunit.

Anentityassessesateach reportingdatewhether there isany indication thatan impairment loss recognised inpriorperiodsforassets,otherthangoodwill,mayno longerexistormayhavedecreased. Ifanysuch indicationexists, therecoverableamountsofthoseassetsareestimated.

Theincreasedcarryingamountofanasset,otherthangoodwill,attributabletoareversalofanimpairmentlossdoesnotexceedthecarryingamountthatwouldhavebeendeterminedhadnoimpairmentlossbeenrecognisedfortheassetinpriorperiods.

A reversal of an impairment loss of assets carried at cost less accumulateddepreciation or amortisation, other thangoodwill,isrecognisedimmediatelyinprofitorloss.Anyreversalofanimpairmentlossofarevaluedassetistreatedasarevaluationincrease.

1.9 Share capital and equityAnequityinstrumentisanycontractthatevidencesaresidualinterestintheassetsofanentityafterdeductingallofitsliabilities.

1.10 Share-based paymentsGoodsorservicesreceivedoracquired inashare-basedpaymenttransactionarerecognisedwhenthegoodsor theservicesarereceived.Acorrespondingincreaseinequityisrecognisedifthegoodsorserviceswerereceivedinanequity-settledshare-basedpaymenttransactionoraliabilityifthegoodsorserviceswereacquiredinacash-settledshare-basedpayment transaction.Whenthegoodsorservices receivedoracquired inashare-basedpayment transactiondonotqualifyforrecognitionasassets,theyarerecognisedinprofitorloss.

Forequity-settledshare-basedpayment transactions thegoodsor services receivedand thecorresponding increaseinequityaremeasured,directly,atthefairvalueofthegoodsorservicesreceived,providedthatthefairvaluecanbeestimated reliably. If the fair valueof thegoodsor services receivedcannotbeestimated reliably, their valueand thecorrespondingincreaseinequity,indirectly,aremeasuredbyreferencetothefairvalueoftheequityinstrumentsgranted.



1. PRESENtAtION OF FINANCIAL StAtEMENtS (continued)1.10 Share-based payments (continued)

Iftheshare-basedpaymentsgranteddonotvestuntilthecounterpartycompletesaspecifiedperiodofservicetheGroupaccountsforthoseservicesastheyarerenderedbythecounterpartyduringthevestingperiod(oronastraight-linebasisoverthevestingperiod).Iftheshare-basedpaymentsvestimmediatelytheservicesreceivedarerecognisedinfull.

Forshare-basedpaymenttransactionsinwhichthetermsofthearrangementprovideeithertheentityorthecounterpartywiththechoiceofwhethertheentitysettlesthetransactionincash(orotherassets)orbyissuingequityinstruments,thecomponentsofthattransactionarerecordedasacash-settledshare-basedpaymenttransactionif,andtotheextentthat,aliabilitytosettleincashorotherassetshasbeenincurred,orasanequity-settledshare-basedpaymenttransactionif,andtotheextentthat,nosuchliabilityhasbeenincurred.

1.11 Provisions and contingenciesProvisionsarerecognisedwhen:

• theGrouphasapresentobligationasaresultofapastevent;

• itisprobablethatanoutflowofresourcesembodyingeconomicbenefitswillberequiredtosettletheobligation;and

• areliableestimatecanbemadeoftheobligation.

The amount of a provision is the present value of the expenditure expected to be required to settle the obligation.Wheresomeoralloftheexpenditurerequiredtosettleaprovisionisexpectedtobereimbursedbyanotherparty,thereimbursementshallberecognisedwhen,andonlywhen,itisvirtuallycertainthatreimbursementwillbereceivediftheentitysettles theobligation.The reimbursementshallbe treatedasaseparateasset.Theamount recognised for thereimbursementshallnotexceedtheamountoftheprovision.Provisionsarenotrecognisedforfutureoperatinglosses.Ifanentityhasacontractthatisonerous,thepresentobligationunderthecontractshallberecognisedandmeasuredasaprovision.

Aconstructiveobligationtorestructurearisesonlywhenanentity:

• hasadetailedformalplanfortherestructuring,identifyingatleast:

– thebusinessorpartofabusinessconcerned;

– theprincipallocationsaffected;

– thelocation,function,andapproximatenumberofemployeeswhowillbecompensatedforterminatingtheirservices;

– theexpendituresthatwillbeundertaken;and

– whentheplanwillbeimplemented;

• hasraisedavalidexpectationinthoseaffectedthatitwillcarryouttherestructuringbystartingtoimplementthatplanorannouncingitsmainfeaturestothoseaffectedbyit.

Aftertheirinitialrecognitioncontingentliabilitiesrecognisedinbusinesscombinationsthatarerecognisedseparatelyaresubsequentlymeasuredatthehigherof:

• theamountthatwouldberecognisedasaprovision;and

• the amount initially recognised less cumulative amortisation. Contingent assets and contingent liabilities are notrecognised.

Revenue

Revenueismeasuredatthefairvalueoftheconsiderationreceivedorreceivableandrepresentstheamountsreceivableforgoodsandservicesprovidedinthenormalcourseofbusiness,netoftradediscountsandvolumerebates,andvalueaddedtax.Interestisrecognised,inprofitorloss,usingtheeffectiveinterestratemethod.



Turnovercomprisessalestocustomersandservicerenderedtocustomers.Turnoverisstatedattheinvoiceamountandisexclusiveofvalueaddedtax.Revenuefromservicesrenderedisrecognisedwhenthecustomerconfirmsreceiptoftheprocessedproduct,whichiswhentherisksandrewardsofownershippass.

Cost of sales

Wheninventoriesaresold,thecarryingamountofthoseinventoriesisrecognisedasanexpenseintheperiodinwhichtherelatedrevenueisrecognised.Theamountofanywrite-downofinventoriestonetrealisablevalueandalllossesofinventoriesarerecognisedasanexpenseintheperiodthewrite-downorlossoccurs.Theamountofanyreversalofanywrite-downofinventories,arisingfromanincreaseinnetrealisablevalue,isrecognisedasareductionintheamountofinventoriesrecognisedasanexpenseintheperiodinwhichthereversaloccurs.

Therelatedcostofprovidingservicesrecognisedasrevenueinthecurrentperiodisincludedincostofsales.Contractcostscomprise:

• coststhatrelatedirectlytothespecificcontract;

• coststhatareattributabletocontractactivityingeneralandcanbeallocatedtothecontract;and

• suchothercostsasarespecificallychargeabletothecustomerunderthetermsofthecontract.

translation of foreign currencies

Functional and presentation currency

ItemsincludedinthefinancialstatementsofeachoftheGroupentitiesaremeasuredusingthecurrencyoftheprimaryeconomicenvironmentinwhichtheentityoperates(functionalcurrency).

TheconsolidatedfinancialstatementsarepresentedinPoundSterling,whichistheGroupfunctionalandpresentationcurrency.

Foreign currency transactions

Aforeigncurrencytransaction is recorded,on initial recognition inPoundSterling,byapplyingto the foreigncurrencyamountthespotexchangeratebetweenthefunctionalcurrencyandtheforeigncurrencyatthedateofthetransaction.

Attheendofthereportingperiod:

• foreigncurrencymonetaryitemsaretranslatedusingtheclosingrate;

• non-monetaryitemsthataremeasuredintermsofhistoricalcostinaforeigncurrencyaretranslatedusingtheexchangerateatthedateofthetransaction;and

• non-monetaryitemsthataremeasuredatfairvalueinaforeigncurrencyaretranslatedusingtheexchangeratesatthedatewhenthefairvaluewasdetermined.

Exchangedifferences arising on the settlement ofmonetary itemsor on translatingmonetary items at rates differentfromthoseatwhichtheyweretranslatedoninitialrecognitionduringtheperiodorinpreviousfinancialstatementsarerecognisedinprofitorlossintheperiodinwhichtheyarise.

Whenagainor lossonanon-monetary itemisrecognisedtoprofitor lossandaccumulated inequity,anyexchangecomponentofthatgainorlossisrecognisedtoothercomprehensiveincomeandaccumulatedinequity.Whenagainorlossonanon-monetaryitemisrecognisedinprofitorloss,anyexchangecomponentofthatgainorlossisrecognisedinprofitorloss.

Cash flows arising from transactions in a foreign currency are recorded in PoundSterling by applying to the foreigncurrencyamounttheexchangeratebetweenthePoundSterlingandtheforeigncurrencyatthedateofthecashflow.



1. PRESENtAtION OF FINANCIAL StAtEMENtS (continued)1.11 Provisions and contingencies (continued)

Investments in subsidiaries, joint ventures and associates

The resultsand financialpositionofa foreignoperationare translated into the functionalcurrencyusing the followingprocedures:

• assetsandliabilitiesforeachstatementoffinancialpositionpresentedaretranslatedattheclosingrateatthedateofthatstatementoffinancialposition;

• incomeandexpensesforeachitemofprofitorlossaretranslatedatexchangeratesatthedatesofthetransactions;and

• all resulting exchangedifferencesare recognised toother comprehensive incomeandaccumulatedas a separatecomponentofequity.

Exchangedifferencesarisingonamonetaryitemthatformspartofanetinvestmentinaforeignoperationarerecognisedinitiallytoothercomprehensiveincomeandaccumulatedinthetranslationreserve.Theyarerecognisedinprofitorlossasareclassificationadjustmentthroughtoothercomprehensiveincomeondisposalofnetinvestment.

Anygoodwillarisingontheacquisitionofaforeignoperationandanyfairvalueadjustmentstothecarryingamountsofassetsandliabilitiesarisingontheacquisitionofthatforeignoperationaretreatedasassetsandliabilitiesoftheforeignoperation.

Thecashflowsofaforeignsubsidiaryaretranslatedattheexchangeratesbetweenthefunctionalcurrencyandtheforeigncurrencyatthedatesofthecashflows.

the Company’s investments in subsidiaries

In itsseparate financialstatementstheCompanyrecognises its investments insubsidiariesatcost, lessanyprovisionfor impairment.Thecostof acquisition includesdirectly attributableprofessional feesandother expenses incurred inconnectionwiththeacquisition.

Critical judgements and key sources of estimation uncertainty

DetailsoftheGroup’ssignificantaccountingjudgementsandcriticalaccountingestimatesareasfollows:

Impairment testing

Therecoverableamountsofindividualassetshavebeendeterminedbasedonthehigherofvalue-in-usecalculationsandfairvalueslesscosttosell.Thesecalculationsrequiretheuseofestimatesandassumptions.It isreasonablypossiblethattheassumptionmaychangewhichmaythenimpactonestimatesandmaythenrequireamaterialadjustmenttothecarrying valueof assets. TheGroup tests annuallywhethergoodwill has sufferedany impairment, in accordancewith theaccountingpolicy.The recoverableamountsofCGUswillbedeterminedbasedonvalue-in-usecalculations.Thesecalculationsrequiretheuseofestimates.

Determination of fair values of intangible assets acquired in business combinations

Ontheacquisitionofacompany,fairvaluesreflectiveoftheconditionsthatexistareattributedtotheidentifiableassets(including intangibles), liabilities, and contingent liabilities acquired. Fair values are determined by reference to activemarketvalueor,ifunavailable,byreferencetothecurrentmarketpriceofsimilarassetsorobligations,orbydiscountingexpectedfuturecashflowstotheirpresentvalues,usingeithermarketvaluesorriskfreeratesadjustedforrisk.Thekeyassumptionappliedinthevalue-in-usecalculationisadiscountfactorof10%.

Taxation

The Group is subject to income tax in several jurisdictions and significant judgement is required in determining theprovisionforincometaxes.Duringtheordinarycourseofbusiness,therearetransactionsandcalculationsforwhichtheultimatetaxdeterminationisuncertain.Asaresult,theCompanyrecognisestaxliabilitiesbasedonestimatesofwhetheradditionaltaxesandinterestwillbedue.Thesetaxliabilitiesarerecognisedwhen,despitetheCompany’sbeliefthatits



taxreturnpositionsaresupportable,theCompanybelievesthatcertainpositionsarelikelytobechallengedandmaynotbefullysustaineduponreviewbytaxauthorities.TheCompanybelievesthatitsaccrualsfortaxliabilitiesareadequateforallopenaudityearsbasedon itsassessmentofmany factors includingpastexperienceand interpretationsof taxlaw.Thisassessmentreliesonestimatesandassumptionsandmayinvolveaseriesofcomplexjudgementsaboutfutureevents.Totheextentthatthefinaltaxoutcomeofthesemattersisdifferentthantheamountsrecorded,suchdifferenceswillimpactincometaxexpenseintheperiodinwhichsuchdeterminationismade.Refertonote7fordetailsontax.

Net realisable value of inventory

Judgementisrequiredwhendeterminingthenetrealisablevalueofinventoryonhand.Indeterminingnetrealisablevaluetheestimatedfuturerevenueobtainableinthecurrenteconomicconditionsisusedasafactorinvaluingtherecoverableamount.

Share-based payments

Inordertocalculatethechargeforshare-basedpaymentsasrequiredbyIFRS2,theGroupmakesestimatesprincipallyrelatingtotheassumptionsusedinitsoption-pricingmodel.Refertonote16and17fordetailsonvaluationofshare-basedpayments,includingoptionsgrantedandwarrantsgranted.

Residual value, useful lives and depreciation methods

Judgementhasbeenusedinestimatingtheresidualvaluesandusefullivesofitemsofproperty,plantandequipment.Refertonote9fordetailofthevaluesofproperty,plantandequipment.



2. ADOPtION OF NEW AND REVISED StANDARDSDuring the financial year, theGrouphasadopted the followingnew IFRSs (includingamendments thereto)and IFRICinterpretationsthatbecameeffectiveforthefirsttime.

Standard

Effectivedate,annualperiod

beginningonorafter

AnnualimprovementstoIFRSs2011–2013Cycle 1January2015AnnualimprovementstoIFRSs2010–2012Cycle 1February2015*IAS19(amendments)Employee Benefits – Defined Benefit Plans: Employee contributions 1February2015*

* This is the date from which these pronouncements became effective in the EU

Theiradoptionhasnothadanymaterialimpactonthedisclosuresoramountsreportedinthefinancialstatements.

Standards issued but not yet effective

Atthedateofauthorisationofthesefinancialstatements,thefollowingstandardsandinterpretationsrelevanttotheGroupandwhichhavenotbeenappliedinthesefinancialstatements,wereinissuebutwerenotyeteffective.InsomecasesthesestandardsandguidancehavenotbeenendorsedforuseintheEuropeanUnion.

Standard

Effectivedate,annualperiod

beginningonorafter

AnnualImprovements2012–2014cycle 1January2016IFRS11(amendments)Accounting for Acquisitions of Interests in Joint Operations 1January2016IFRS14Regulatory Deferral Accounts 1January2016*AmendmentstoIFRS10,IFRS12andIAS28Investment Entities – Applying the Consolidation Exception 1January2016IAS16Property, Plant and EquipmentandIAS38Intangible Assets(amendments) 1January2016IAS16Property, Plant and EquipmentandIAS41Bearer Plants(amendments) 1January2016IAS1Disclosure Initiative 1January2016IAS27(amendments)Equity Method in Separate Financial Statements 1January2016AmendmentstoIAS12Recognition of Deferred Tax for Unrealised Losses 1January2017AmendmentstoIAS7Disclosure Initiative 1January2017IFRS9Financial Instruments 1January2018IFRS15Revenue from Contracts with CustomersincludingamendmentstoIFRS15:Effective dateofIFRS15 1January2018ClarificationstoIFRS15Revenue from Contracts with Customers 1January2018IFRS16Leases 1January2019AmendmentstoIFRS2Classification and Measurement of Share-based Payment Transactions 1January2018

* The European commission has decided not to launch the endorsement process of this interim standard but to wait for the final standard. The Directors are evaluating the impact that these standards will have on the financial statements of Group.




3. REVENUE

Group Company2016

£s2015

£s2016

£s2015

£s

Provisionofservices 884 751 48899 346 041 45014

Revenueconsistsoftherenderingofservicesinrelationtothesurfaceprocessingofchromiteconcentrate.JubileehascertaincontractualrightsandinterestsintermsofitsTreatmentofTailingsAgreementwithASAMetals.Duringtheperiodunder reviewJubileeoperated theDilokongChromeMine to increase itscapacityby thecommissioningofachromerecoveryplant.JubileeearnsrevenueonthebasisofthepercentagecompletedchromiteconcentratesoldascontainedintheTreatmentofTailingsAgreement.Allrevenuerecognisedintheyearwasderivedfromtwocustomerswhichareconsideredtobeofhighquality.

4. OPERAtING LOSSOperatinglossfortheyearisstatedafteraccountingforthefollowing:

Operating lease charges

PremisesContractualamounts 65 455 74622 29 905 34024EquipmentContractualamounts 8 671 12452 – –

74 126 87074 29 905 34024

Lossonsaleofproperty,plantandequipment (1 082) (59904) – (45014)Impairmentofloanstogroupcompanies – (103009) – (42028)Impairmentofotherfinancialliabilities – 30857Impairmentofotherfinancialassets 856 271 – 856 271 –Feespaidforauditofgroupfinancialstatements 70 000 80000 70 000 80000Profitonexchangedifferences 66 846 20508 77 571 20539Amortisationofintangibleassets 566 272 673440 – –Depreciationofproperty,plantandequipment 32 179 22996 – –Share-basedpaymentcharges 1 460 772 – 1 460 770 –Employeecosts 353 687 353666 28 000 28000

Refertonote6onpage44fordetailsofemployeecosts.

5. FINANCE COStS/(INCOME)

Interest-bearingborrowings 13 417 124461 13 413 124461Otherinterest – 70297 – 70293

total finance costs 13 417 194 758 13 413 194 754

Financeincome – (62702) – (62702)Bankinterestreceived (144 077) (2581) (23 701) (2581)

total finance income (144 077) (65 283) (23 701) (65 283)



6. EMPLOYEE COStS (INCLUDING DIRECtORS)

Group Company2016

£s2015

£s2016

£s2015

£s

Salaries 353 687 353666 28 000 28000Directors’feesandremuneration 186 300 157353 65 317 64730Provisionforunpaidremuneration 252 769 232251 149 935 125850Share-basedpayments 1 155 847 17726 1 155 847 17726

Totalstaffcosts 1 948 603 760996 1 399 099 236306

TheGroupaveragedsix (twoadministrative)employeesduring theperiodended30June2016 (2015:52employees(eight administrative)).

DirectorsandtheCompany’sChiefFinancialOfficer–CdeBeerhavebeenassessedaskeymanagementoftheGroup.Refertonote25fordetailsofCdeBeer’sremuneration.TheCompanyprovidestheDirectorsandOfficerswithDirectors’andOfficers’liabilityinsuranceatacostof£6789(2015:£6200).Thiscostisnotincludedintheaboveremuneration.

Group Company

Directors’feesandremuneration2016

£s2015

£s2016

£s2015

£s

Directors’ short-term benefitsDirectors’fees(includingbenefitsinkind) 26 859 22262 26 859 22262Directors’salaries 159 441 135092 38 458 42468Provisionforunpaidremuneration 252 769 232251 149 935 125850

total Director remuneration 439 069 389605 215 252 190580

Share-basedpayments 1 155 847 17726 1 155 847 17726

total Director remuneration 1 594 916 407331 1 371 099 208306

ThehighestpaiddirectorisLCoetzerwithannualremunerationof£223817(2015:£212802).Theshare-basedpaymentchargeinrelationtoMrCoetzer’soptionsawardedis£543226.



7. tAxAtION

Group Company2016

£s2015

£s2016

£s2015

£s

Major components of the tax expense (income)Current – – –Localincometax–currentperiodLocalincometax–recognisedincurrenttaxpriorperiods – – –

DeferredOriginatingandreversingtemporarydifferences – – –Arisingfrompreviouslyunrecognisedtaxloss (201 901) – –

Thetaxrateassessedfortheyearishigher(2015: higher)thanthestandardrateofcorporationtaxintheUK.Reconciliation of the tax expenseReconciliationbetweenaccountingprofitand taxexpense:Accountingloss (3 599 186) (2473126) (13 330 015) (468636)Taxattheapplicabletaxrateof28%(2015: 28%) (1 007 772) (692475) (3 732 404) (131218)tax effect of adjustments on taxable incomeNon-deductible/(non-taxable)expenditure/income 305 475 (3782) 281 026 (9004)Assessedlossnotrecognised 500 396 696257 3 451 378 140222

(201 901) – – –

Deferred taxDeferred tax liabilityCapitalallowancefortaxpurposes –Fairvalueadjustmentarisingfrombusinesscombinations (14 677 152) (13738729)Taxlossesavailableforsetoffagainstfuturetaxableincome – –

(14 677 152) (13738729)

Reconciliation of deferred tax liabilityAtbeginningoftheyear (13 738 729) (15441819)DeferredtaxadjustmentforDisposalGroupheld for sale 715149Foreignexchangemovement (938 423) 987941Originatingtemporarydifferencesoncapitalallowance –

(14 677 152) (13738729)

Adeferredtaxassethasbeenrecognisedonthebasisthatmanagementexpectsthetradingsubsidiarytobeprofitableandthereforecarriedforwardtradinglosseswillbeutilised.Refernote27.

There is no deferred tax effect of the other comprehensive income as detailed on the consolidated statement ofcomprehensiveincome.

TheGrouphasestimatedtaxlossesof£52830362(2015:£51043234)tocarryforwardagainstfutureperiods.



8. INtANGIBLE ASSEtS

Group

2016 2015Cost/

ValuationAccumulatedamortisation

Carryingvalue

Cost/Valuation

Accumulatedamortisation

Carryingvalue

Nickeltailingproject1 20 778 966 – 20 778 966 18214493 – 18214493PGEsexploration 40 173 987 (2 313 057) 37 860 930 39263694 (2313057) 36950637Expenditure2Developmentcost3 8 806 022 (5 607 154) 3 198 868 9020811 (5116588) 3904223

Total 69 758 975 (7 920 211) 61 838 764 66498998 (7429645) 59069353

Reconciliation of intangible assets – Group – 2016

Openingbalance Additions

Foreignexchange

movements Amortisation Total

Nickeltailingproject 18214493 43 2564430 – 20778966PGEsexplorationexpenditure 36950637 4196 906097 – 37860930Developmentcost 3904223 – (139083) (566272) 3198868

59 069 353 4 239 3 331 444 (566 272) 61 838 764

Reconciliation of intangible assets – Group – 2015

Openingbalance Additions

Additionsthroughbusinesscombi-nations

Classifiedas

held-for-sale

Foreignexchange

movements Amortisation Total

Nickeltailingproject 20657665 5836 – – (2449008) – 18214493PGE’sexploration 39343591 722 914356 (701374) (2606658) – 36950637expenditureDevelopmentcost 4805622 38775 – – (266734) (673440) 3904223Goodwill 598000 – – (598000) – – –

65404878 45333 914356 (1299374) (5322400) (673440) 59069353

1 The Company completed a Scoping Study on the processing of the Tailings in February 2009, in part towards an Engineering Study and Economic Evaluation (“ESEE”) of the project. By a Deed of Access, the Company drilled fresh samples of the Tailings for test work in early 2012. These samples were required following an independent review of the project in 2010 with recommendations for complementary testing, primarily pre-flotation, in order to refine the Scoping Study flow sheet. The Company commissioned Mintek, South Africa’s national mineral research organisation to perform the work in March 2012. Results of this testing to date indicate a potential for significantly reducing the nickel tailings mass required for acid leaching to recover nickel, with consequential potential impact on the project’s costs. Work continues on the last phase of this testing, which is aimed at utilising the sulphur in the reduced nickel tailings mass to generate acid for leaching, thereby potentially eliminating the requirement for an external supply of sulphur, and consequently impacting further on the project’s costs.

2 The PGEs exploration expenditure relates to the exploration of the subsidiaries Tjate Platinum Corporation Pty Ltd and Maude Mining and Exploration Pty Ltd.

3 Development costs relate to the ConRoast technology, converting and autoclave process, CVMR® process and leaching and hydro-processing. The remaining amortisation period is 48 months (2015: 60 months).

Management tests the intangible assets carrying amounts annually for impairment, or more frequently if there areindicationsthattheymaybeimpaired.Thecarryingamountsareconsiderednottobeimpaired.ThereviewwasperformedinaccordancewiththeGroup’saccountingpolicies;therewerenoindicatorsofimpairmentofanyoftheintangibleassets.



9. PROPERtY, PLANt AND EQUIPMENtReconciliation of property, plant and equipment – Group – 2016

Figures in SterlingOpeningbalance Additions Disposals

Foreignexchange

movements Depreciation Total

Buildings 3 878 – – (93) – 3 785Plant and machinery 75 834 351 398 – 42 032 (28 747) 440 517Furniture and fixtures 6 841 – – (300) (1 684) 4 857Motor vehicles – 21 033 – 1 421 (570) 21 884IT equipment 1 511 – (200) (131) (1 179) 1Plant under construction1 – 4 176 427 – 330 313 – 4 506 740

88 064 4 548 858 (200) 373 242 (32 180) 4 977 784

Reconciliation of property, plant and equipment – Group – 2015

Figures in SterlingOpeningbalance Additions Disposals

Classified asheld-for-sale Transfers Revaluations

Foreignexchange

movements Depreciation Total

Land 266 441 – – – (249 096) – (17 345) – –Buildings 891 412 – – (43 888) (658 171) (130 718) (54 757) – 3 878Plant and machinery 4 773 975 – – (692 726) (3 847 720) 130 718 (276 166) (12 247) 75 834Furniture and fixtures 30 364 4 684 – (7 747) (17 419) – (1 330) (1 711) 6 841Motor vehicles 25 001 – (17 357) – – – (1 184) (6 460) –IT equipment 2 880 1 220 – – – – (11) (2 578) 1 511

5 990 073 5 904 (17 357) (744 361) (4 772 406) – (350 793) (22 996) 88 064

1 On 15 December 2015, the Company executed a Co-Operation Agreement (“Co-Op Agreement”) with Hernic on the turning to account (“Processing”) of the Hernic Tailings to produce chromite and PGM concentrates.

TheCo-OpAgreement,replacedtheHeadsofAgreement(announcedon19January2015),intermsofwhichtheCompanywasselectedastheexclusivepartytobeneficiatethechromiteandPGMscontainedintheHernicTailings.DuringFebruary2015,theCompanycommencedsitepre-excavationandfoundationsforthe660 000tonnesperannumprocessingplant(“Plant”)fortheProject,basedontheCompany’sdefinitivefeasibilitystudyandengineeringdesign,whichwascompletedinJune2015andincludedpilotscaleandfullcommercialscaletrialstoconfirmthedesignandoperationalparameters.

TheHernicProjectwillbethelargestPGMbeneficiationplantofitskind,forthistailingsapplication,inSouthAfricaandwillbecapableofproducingannualrevenuesof£18.2million(ZAR400million)atanaveragemetalbasketpriceofUSD906peroz(3PGM+Au).ThefinancialandoperationalrisksoftheHernicProjectaresignificantlymitigatedsincetheHernicTailings,similartothatoftheDCMTailingsProject,isalreadyatsurfaceandrequiresneitherthecostnortheriskassociatedwithmining.

TheProjectistobeundertakeninfourphasesoveran11-monthperiod,namely:

• Phaseone–BankableFeasibilityStudyandEngineeringDesign–Completed.

• Phasetwo–Constructionofthechromeandplatinumprocessingplant–On-going

• Phasethree–CommissioningandRampupofProcessingPlanttodesigncapacityof55000tonnespermonth.

• PhaseFour–StableoperationoftheProcessingPlant.

Ordersforallthelong-leaditemswereplacedbymidApril2016.ConstructionoftheHernicPlanthasprogressedasscheduledandonbudgetwith45%oftheProjectcompletedbyyear-end.Projectcapitalexpendituretoyear-endwas£4.5million(ZAR88.5 million)equivalentto45%oftotalestimatedProjectCapital.Postyear-endandattheendofQ3ofthe2016calendaryeartheprojectreachedacompletionof71%withtheunauditedprojectexpenditurereaching£7.5million(ZAR137.6million).



10. INVEStMENtS IN SUBSIDIARIES

Name of company

Carryingamount

2016£s

Carryingamount

2015£s

BraemoreResourcesLtd 18 712 852 18712852NewPlats(Tjate)PtyLtd 13 289 860 13289860JubileeSmeltingandRefiningPtyLtd(ii) – 6801022WindsorPlatinumInvestmentsPtyLtd 3 425 823 3425823PowerAltPtyLtd – 2338455MineralResourcesofMadagascarSarl 917 034 917034JubileeTailingsTreatmentCompanyPtyLtd(FormerlyPolluxInv.HoldingsPtyLtd) 893 944 893944KPlatsPtyLtd 649 734 649734Antsahabe(Madagascar)Sarl 34 466 34466MaudeMiningandExplorationPtyLtd 141 141

37 923 854 47063331

Holding Number of sharesSubsidiaries of JubileeDirect(i)

Country of incorporation

2016%

2015% 2016 2015

MineralResourcesofMadagascarSarl Madagascar 100 100 10 000 10000WindsorPlatinumInvestmentsPtyLtd SouthAfrica 100 100 10 000 10000BraemoreResourcesLtd UnitedKingdom 100 100 100 100JubileeSmeltingandRefiningPtyLtd(ii) SouthAfrica – 100 – 70KPlatsPtyLtd SouthAfrica 100 100 100 100Antsahabe(Madagascar)Sarl Madagascar 100 100 100 100PowerAltPtyLtd(ii) SouthAfrica – 70 – 51JubileeTailingsTreatmentCompanyPtyLtd(FormerlyPolluxInv.HoldingsPtyLtd)(ii)

HoldingsPtyLtd) SouthAfrica 100 100 100 100MaudeMiningandExplorationPtyLtd SouthAfrica 65 65 653 653NewPlats(Tjate)PtyLtd SouthAfrica 49 49 169 169

(i) The nature of the above subsidiaries’ business is mining in all its facets with the exception of Power Alt whose core business is the supply of electricity.

(ii) The Group disposed of its interests in Jubilee Smelting and Refining Pty Ltd and Power Alt Pty Ltd. Refer to note 22 for more detail on the disposal.



10. INVEStMENtS IN SUBSIDIARIES (continued)

HoldingSubsidiaries of JubileeIndirect Country of incorporation

2016%

2015%

Via Windsor Platinum Investments Pty LtdTjatePlatinumCorporationPtyLtdDullstroomPlatsPtyLtd

SouthAfricaSouthAfrica

63100

63100

Via Braemore Resources LtdBraemorePlatinumLtdBraemoreHoldings(Mauritius)PtyLtdBraemorePlatinumPtyLtdBraemoreNickelPtyLtd

UnitedKingdomMauritiusSouthAfricaAustralia

100100100

100100100

Via Braemore Holdings (Mauritius) Pty LtdBraemorePlatinum(SA)PtyLtd SouthAfrica 50 50

Via Braemore Platinum (SA) Pty Ltd BraemorePlatinumSmeltersPtyLtdJubileeProcessing(FormerlyRSTBaseMetalsPty Ltd)BraemorePlatinumResourcesPtyLtdBraemorePreciousMetalsRefinersPtyLtd

SouthAfricaSouthAfricaSouthAfricaSouthAfricaSouthAfrica

100100100100100

100100100100100

Via Jubilee Smelting & Refining Pty LtdRSTSpecialMetalsPtyLtd(ii) SouthAfrica – 100

Via Braemore Platinum LtdBraemorePreciousMetalsRefineryPtyLtd SouthAfrica 50 50NewPlats(Tjate)PtyLtd(i) SouthAfrica 100 100

(i) The Group owns the ordinary share capital of all the above subsidiaries in the percentages shown above and in each case this holding confers the respective voting rights and rights to dividend distribution except for its holding in Newplats (Tjate) Pty Ltd where the Group holds 49% of the ordinary shares in issue and all of the issued preference shares.

(ii) The Group disposed of its interests in Jubilee Smelting and Refining Pty Ltd and Power Alt Pty Ltd. Refer to note 22 for more detail on the disposal.

Thefinancialyear-endsofallthecompaniesintheGroupareJune.Thecarryingamountsofsubsidiariesareshownnetofimpairmentlosses.



11. LOANS tO GROUP COMPANIES

Company2016

£s2015

£s

SubsidiariesWindsorPlatinumInvestmentsPtyLtd 25 039 620 25039620BraemorePlatinumSmeltersPtyLtd 10 340 301 4774987JubileeSmeltingandRefiningPtyLtd – 3421747BraemoreResourcesLtd 1 703 305 1703305PowerAltPtyLtd – 1660252JubileeTailingsTreatmentCompanyPtyLtd(FormerlyPolluxInvestmentHoldings) 1 298 579 1125126RSTSpecialMetalsPtyLtd – 1014774BraemoreNickelPtyLtd 678 297 661905MaudeMiningandExplorationPtyLtd 212 536 212536DullstroomPlatsPtyLtd 156 795 156795MineralResourcesofMadagascarSarl 62 353 60850BraemoreHoldings(Mauritius)PtyLtd 27 870 16141

39 519 656 39848038

The loans are unsecured, non-current, interest-free and have no fixed repayment terms. The loans are disclosed asnon-currentloansinthestatementoffinancialposition.

12. tRADE AND OtHER RECEIVABLES

Group Company2016

£s2015

£s2016

£s2015

£s

Tradereceivables 434 137 239219 – 234468Prepayments 33 805 6016 33 796 6016Deposits 4 885 4924 3 286 3286VAT 499 934 50526 – –Otherreceivables 958 019 1819 856 271 –Provisionforimpairmentofotherreceivables (856 271)(1) – (856 271)(1) –

1 074 509 302 504 37 082 243 770

(i) Refer to note 22 on page 56. The provision for impairment represents the remainder of the proceeds owed to the Company in relation to the disposal of the Middelburg Operations. The Board considered it prudent to impair the remaining balance during the period under review due to delays in receiving payment from the Purchaser. The Company has taken all the necessary steps to expidite the payment.

13. CASH AND CASH EQUIVALENtSCashandcashequivalentsconsistof:

Bankbalances 4 414 908 360829 3 760 540 348467



14. CASH USED IN OPERAtIONS

Group Company2016

£s2015

£s2016

£s2015

£s

Lossbeforetaxation (3 599 186) (3393128) (13 330 015) (936636)Adjustments for:Depreciationandamortisation 598 451 696436 – –Lossonsaleofassets 1 082 59904 – 45014(Profit)lossonsaleofnon-currentassetsand disposalgroups (84 680) – 4 286 166 –Depreciationondisposalgroup – 744361 – –Interestreceived (144 077) (65283) (23 701) (65283)Financecosts 13 418 194758 13 413 194754Impairmentsofloans – – 6 174 421 (42028)

Impairmentofdebtors 856 271 – 856 271 –Share-basedpayments–Employeecosts 1 155 847 – 1 155 847 –Share-basedpayments–Expenses 297 959 – 297 959 –Changes in working capital:Inventories 19 019 (19019) 19 019 (19019)Tradeandotherreceivables (702 667) (534657) 276 026 (240484)Tradeandotherpayables 1 245 731 981327 1 319 1478940Deferredincome (346 041) 84022 (346 041) 346041

(688 883) (1251279) (619 316) 761299

15. EARNINGS AND DIVIDENDS PER SHARE

Group2016

£s2015

£s

EARNINGS PER SHARELoss attributable to:Ownersoftheparent–continuedoperations (3 412 174) (2906928)

Ownersoftheparent–discontinuedoperations (283 749) (628442)

Totallossfortheyearattributabletoownersoftheparent (3 695 923) (3535370)Weightedaveragenumberofshares 906 241 300 644851551Dilutedweightedaveragenumberofshares 906 241 300 644851551Basiclosspershare(pence)–continuingoperations (0.38) (0.45)Basiclosspershare(pence)–discontinuedoperations (0.03) (0.10)

Losspershareattributabletoownersoftheparent(pence) (0.41) (0.55)

Dilutedlosspershare(pence)–continuingoperations (0.38) (0.45)Dilutedlosspershare(pence)–discontinuedoperations (0.03) (0.10)

Dilutedlosspershareattributabletoownersoftheparent(pence) (0.41) (0.55)

DIVIDENDS PER SHARETheBoardhasresolvednottodeclareanydividendtoshareholdersforthisreportingperiod.



16. SHARE CAPItAL AND SHARE PREMIUM

Group Company2016

£s2015

£s2016

£s2015

£s

AuthorisedThesharecapitaloftheCompanyisdividedintoanunlimitednumberofordinarysharesof1penceeach.Issued share capital fully paidOrdinarysharesof1penceeach(£) 9 910 872 7498605 9 910 872 7498605Sharepremium(£) 72 604 297 68397978 72 604 297 68397978

Totalissuedcapital 82 515 169 75896582 82 515 169 75896582

Number of shares in issueOrdinaryshares 991 087 194 749860507 991 087 194 749860507

TheCompanyissuedthefollowingsharesduringtheperiodanduptothedateofthisannualreport:

DateNumber of

sharesIssue price –

PencePurpose

of the issue

Opening balance 749 860 507

1July2015 26850931 2.10 Debt5August2015 1264837 4.00 Debt5August2015 5786380 2.01 Warrants5August2015 10550581 3.23 Warrants5August2015 71834833 3.40 Cash18August2015 10000000 2.63 Warrants22September2015 2000000 3.16 Warrants5October2015 2706765 3.40 Debt14October2015 7142936 3.16 Warrants20October2015 5160000 3.16 Warrants12November2015 1500000 3.16 Warrants11December2015 1518710 3.06 Acquisition29February2016 3750000 3.16 Warrants30March2016 89285714 2.80 Cash27May2016 1875000 1.60 Warrants

Closingbalanceatyear-end 991087194

Closing balance at last practicable date 991 087 194

TheCompanydidnotissueanysharesafteryear-endtothedateofthisreport.Otherthanthoseidentifiedinnote29.



Atyear-endandatthelastpracticabledatetheCompanyhadthefollowingwarrantsoutstanding:

Number of warrants Issue date

Subscriptionprice

£s

End ofexercise

periodVolatility

%

Spot atissue date

pence

12750000 2014-02-21 0.03160 2017-02-21 69.01 1.97510550581 2014-03-03 0.00323 2017-02-25 67.67 1.80038097689 2013-12-23 0.03355 2016-12-30 65.02 3.1503591742 2015-08-12 0.04750 2018-08-12 77.49 4.4818244825 2016-03-23 0.04725 2019-03-23 83.81 2.94

83234837

ThefairvalueofthesewarrantswasdeterminedusingtheBlack-ScholesValuationModelwiththeinputsillustratedinthetableabove.Ariskfreerateof0.5%wereappliedinthevaluation.Thecompanyrecognisedashare-basedpaymentchargeagainstashare-basedpaymentreservetheamountof£304925(2015:£748816)inaccordancewithsection610(2)oftheUnitedKingdomCompaniesAct2006.Thischargerelatestoequityplacingssuccessfullycompleted.Refertonote17forareconciliationoftheshare-basedpaymentreserveaccount.

17. SHARE-BASED PAYMENtSEquity-settled share option planDuringtheperiodunderreviewtheCompanyreplaceditscurrentshareoptionschemewithanewschemeon29April2016.Anewshareoptionschemewasagreedbyshareholderson29April2016.InawardingtheseoptionstheBoardwascognisantoftheeffortsandpersonalmotivationdirectedtowardstheCompany’sobjectivesbyallmembersoftheBoard.

Numberofoptionsoutstandingatthebeginningoftheyearintermsoftheoldscheme 9175000

Optionscancelled (9175000)

Numberofoptionsoutstandingattheendoftheyearintermsoftheoldscheme –

Optionsgrantedduringtheperiodunderreviewintermsofthenewschemearedetailedinthetablebelow:

Strike price Par Value 3.5p 4p 6p total

LeonCoetzer 7000000 8000000 4000000 4000000 23000000ColinBird 5000000 4000000 2000000 2000000 13000000AndrewSarosi 3000000 3000000 2000000 2000000 10000000ChrisMolefe – 500000 500000 500000 1500000DrMatthewsPhosa – 500000 500000 500000 1500000

Totaloptionsgranted 15000000 16000000 9000000 9000000 49000000

Theweightedaverageremaininglifeofshareoptionsattheyear-endwas9.8years.

Reconciliationofwarrantsinissue:

Openingbalance 102483990Exercisedduringtheyear (47764897)Repricedduringtheyear 7519177Issuedduringtheyear 21836567Expiredduringtheyear (840000)

Closingbalance 83234837

Theweightedaverageremaininglifeofsharewarrantsattheyear-endwas1.1years.



17. SHARE-BASED PAYMENtS (continued)Information on valuation inputs for options granted

FairvaluewasdeterminedbyusingtheBlack-ScholesValuationModel.

Thefollowinginputswereused:

Spotatgrantdate(pence) 3.438Expectedvolatility 83.90%Expectedoptionlife 5yearsExpecteddividends NilTheriskfreeinterestrate 0.50%

There are noperformanceconditions associatedwith the shareoptions awardedduring the year.All options have a10-yearlifeandforthepurposesofvaluingtheoptionsanexpectedoptionlifeoffiveyearshasbeenapplied.

Reconciliation of the share-based payment reserve2016

£s2015

£s

Openingbalance 5 199 026 4918210Share-basedpaymentcharge–optionsforfeited – (468000)Share-basedpaymentcharge–optionscancelled (4 450 210) –Share-basedpaymentcharge–newoptionsgranted 1 155 847 –Share-basedpaymentcharge–warrantsgranted 304 925 748816Share-basedpaymentcharge–warrantsexercised/lapsed (262 238) –

Closing balance 1 947 350 5199026

18. OtHER COMPREHENSIVE INCOME

Group

Components of other comprehensive income2016

£s2015

£s

Exchangedifferencesarisingontranslationofforeignoperationsattributabletoownersoftheparent 2 653 926 (4471106)Attributabletonon-controllinginterest 32 387 (25969)

Exchangedifferencesarisingontranslationofforeignoperations 2 686 313 (4497075)



19. OtHER FINANCIAL LIABILItIES

Group Company2016

£s2015

£s2016

£s2015

£s

Held at amortised costShareissuesallottedbutnotregistered – 260969 – 260969YorkvilleAdvisors – 550921 – 550921

– 811890 – 811890

Current liabilities

Interest-bearing borrowingsRepaymentofborrowings:Notlaterthanoneyear – 811890 – 811890Laterthanoneyearandnotlaterthanfive years – – – –

– 811890 – 811890

20. Deferred revenue

Deferredrevenuerelatestoacontracttogranulate1100tonnesofFerro-NickleAlloyforacustomer.Thetotalvalueofthecontractwas£391055ofwhich£45014hasbeenrecognisedinrevenue.PursuanttothedisposaloftheMiddelburgOperationsthecompanydidnotcompletethecontractforthesaleoftheFerro-NickleAlloyandthebalanceofthedeferredrevenuewaswrittenofftotheincomestatement. – 346041 – 346041

Government grantOpeningbalance – 253379 – –Incomerealisedinthecurrentyeargrantreceivedinthecurrentyearforeigncurrencytranslationclosingbalance – (253379) – –

total deferred revenue – 346 041 – 346 041

21. tRADE AND OtHER PAYABLES

Tradepayables 182 192 90500 7 678 49583VAT 25 886 – – –Accruals 1 224 870 218744 85 454 70000Otherpayables 815 167 567373 385 384 231839

2 248 115 876617 478 516 351422



22. DISCONtINUED OPERAtIONS – DISPOSAL GROUP HELD FOR SALEOn30September2015,Jubileecompletedthedisposalof100%oftheissuedsharesinJubileeSmeltingandRefiningPtyLtd(“JSR”),and70%oftheissuedsharesinPowerAltPtyLtd(“PA”)toSiyandaResourcesPtyLtd(“Siyanda”),throughitsnominatedspecialpurposevehicleHornbill InvestmentsPtyLtd (“SPV”) foragrossconsiderationof, inaggregate,ZAR110.5 million (approximately £5.3 million) (”the Disposal”). The Company received of 85% of the net purchaseconsiderationincash(“FirstPayment”).Tenpercentoftheremaining15%ofthepurchaseconsiderationisheldinescrowinanamountapproximating to£0.68million (ZAR13million), netofclosingadjustments includingstockandsupplieradjustments.

TheboardconsidereditprudenttoimpairthebalanceofthepurchaseconsiderationtotheincomestatementasitisthesubjectofanunsubstantiatedwarrantyclaimagainsttheCompanywhichisrejectedbytheCompanyandallnecessarystepsaretakentoensurereleaseoftheamountdue.

Pursuanttothedisposal,loanstosubsidiariesinanamountof£6179421hadbeenimpaired.Thedisposalgroupformsaseparatesegmentasshowninnote26.

Therevenueandexpensesofthedisposalgrouparesetoutbelow:

GroupYear to

30 June 2016 £s

Yearto30June2015

£s

Revenue 1 420 145 5160105Costofsales (682 365) (2167422)

Grossprofit 737 780 2992683Depreciation,amortisationandimpairments – (744361)Financecosts – (455)Interestreceived 193 1017Otheroperatingexpenses (1 014 633) (2700886)

Netlossbeforetax (276 660) (452002)Tax – (52194)

Netlossaftertax (276 660) (504196)Non-controllinginterest (7 089) (124246)

(283 749) (628442)

Theassetsandliabilitiesofthedisposalgrouparesetoutbelow:

AssetsProperty,plantandequipment – 4772406Taxation – 4015Tradeandotherreceivables – 1457592Intangibleassets – 1299374Cashandcashequivalents – 163002

– 7696389

LiabilitiesOtherfinancialliabilities – 290811Tradeandotherpayables – 1264820Deferredtax – 715149

– 2270780

EquityRetainedearningsandforeigncurrencytranslationreserve – (5002008)Minorityinterest – (423601)

– (5425609)



GroupYear to

30 June 2016 £s

Yearto30June2015

£sCash flows from discontinued operationsCashflowsfromoperatingactivities (45 061) (484868)Cashflowsfromfinancingactivities – 385971

Netcashflowsfromdiscontinuedoperations (45 061) (98897)Openingcashbalanceondiscontinuedoperations 163 003 261900Closing cash balance on discontinued operations 117 942 163003

Consideration receivedCash 4 104 068 –Asset-deferredpayments 749 241 –

4 853 309 –

Net cash flow on acquisitionCashconsiderationreceived 4 104 068 –Cashsold (117 942)

3 986 126

Group Company2016

£s2015

£s2016

£s2015

£s

Profit/(loss) on disposalProceedsreceived 4 853 310 – 4 853 310 –Netassetvalue/Investments (4 768 629) (9 139 476)

84 680 – (4 286 166) –

23. FINANCIAL INStRUMENtSthe Group’s financial instruments were categorised as follows:

Group

Loans andreceivables

£s

Financialliabilities at

amortised cost£s

total£s

30 June 2016Assets as per statement of financial positionOtherfinancialassets 555 159 – 555 159Tradeandotherreceivables 434 137 – 434 137Cashandcashequivalents 4 414 908 – 4 414 908

5 404 264 – 5 404 264Liabilities as per statement of financial positionTradeandotherpayables – 182 192 182 192Otherfinancialliabilities – – –

– 182 192 182 192Duringtheyearthegroupmadeshort-terminterestfreeloansof£555159totheDCMProjectaspartoftheFrameworkAgreementsetoutintheStrategicReport30 June 2015Assets as per statement of financial positionTradeandotherreceivables 302504 – 302504Cashandcashequivalents 360829 – 360829

663333 – 663333

Liabilities as per statement of financial positionTradeandotherpayables – (876614) (876614)Otherfinancialliabilities – (811890) (811890)

(1688504) (1688504)



23. FINANCIAL INStRUMENtS (continued)

Company

Loans andreceivables

£s

Financialliabilities at

amortised cost£s

total£s

30 June 2016Assets as per statement of financial positionTradeandotherreceivables – – –Cashandcashequivalents 3 760 540 – 3 760 540Loanstogroupcompanies 39 519 656 – 39 519 656

43 280 196 – 43 280 196

Liabilities as per statement of financial positionTradeandotherpayables – 7 678 7 678Otherfinancialliabilities – – –

– 7 678 7 678

30 June 2015Assets as per statement of financial positionTradeandotherreceivables 243770 – 243770Cashandcashequivalents 348467 – 348467

592237 – 592237

Liabilities as per statement of financial positionTradeandotherpayables – (351429) (351429)Otherfinancialliabilities – (811890) (811890)

– (1163319) (1163319)

Fair valuesThefairvaluesoftheGroup’sfinancialinstrumentsapproximatebookvalue.

ThemainrisksarisingfromtheGroup’sfinancialinstrumentsarecreditrisk,liquidityriskandcurrencyrisk.TheDirectorsreviewandagreepoliciesformanagingtheserisksandthesearesummarisedbelow.TherehavebeennosubstantivechangestotheGroup’sexposuretofinancialinstrumentrisks,itsobjectives,policiesandprocessesformanagingthoserisksorthemethodsusedtomeasurethemfrompreviousperiodsunlessotherstatedinthisnote.

Credit riskCreditriskconsistsmainlyofcashdeposits,cashequivalentsandtradedebtors.TheCompanyonlydepositscashwithmajorbankswithhigh-qualitycreditstandingandlimitsexposuretoanyonecounterparty.

Tradereceivablescompriseawidespreadandwell-establishedcustomerbase.Managementevaluatescreditriskrelatingtocustomersonanongoingbasis.Otherwise,ifthereisnoindependentrating,riskcontrolassessesthecreditqualityofthecustomer,takingintoaccountitsfinancialposition,pastexperienceandotherfactors.

CreditriskalsoreferstotheriskthatacounterpartywilldefaultonitscontractualobligationsresultinginfinanciallosstotheGroupandCompany.TheGroupandCompanyhasadoptedapolicyofonlydealingwithcreditworthycounterparties,asassessedbytheDirectorsusingrelevantavailableinformation.

Creditriskalsoarisesoncashandcashequivalentsanddepositswithbanksandfinancialinstitutions.TheGroupandCompanycashandcashequivalentsareonlyheldinbanksandfinancialinstitutionswhichareindependentlyratedwithaminimumcreditagencyratingofA.

Therewerenobaddebtsrecognisedduringtheperiodandthereisnoprovisionrequiredatreportingdate.



trade receivables analysis

Past due30 June 2016 total Not past due 30 days 90 days 120 daysGroup £s £s £s £s £s

Tradereceivablesnotimpaired 434 137 434 137 – – –Tradereceivablesimpaired 679 902 679 902 – – –

1 114 039 1 114 039 – – –

30 June 2015Tradereceivablesnotimpaired 298219 298219 – – –Tradereceivablesimpaired – – – – –

298219 298219 – – –

Liquidity riskLiquidityriskarisesfromtheGroup’smanagementofworkingcapitalandthefinancechargesandprincipalrepaymentsonitsdebtinstruments.ItistheriskthattheGroupwillencounterdifficultyinmeetingitsfinancialobligationsastheyfalldue.Short-termpayablesareclassifiedasthosepayablesthatareduewithin30days.

TheGroupmanagesliquidityriskthroughanongoingreviewoffuturecommitmentsandcreditfacilities.TheCompanyreliesonthecontinuoussupportofitsshareholdersforadditionalfundingasandwhenrequired.

TheGroup’spolicyistoensurethatitwillalwayshavesufficientcashtoallowittomeetitsliabilitieswhentheybecomedue.Toachievethisaim, itseekstomaintaincashbalances(oragreedfacilities)tomeetexpectedrequirementsforaperiodofatleast45days.

Thefollowingtablesetsoutcontractualmaturitiesanalysis:

Group

Up to 3 months

£s

3 to 12 months

£s

1 to 2 years

£s

2 to 5 years

£s

2016Tradeandotherpayables 182 172 – – –Loansandotherborrowings – – – –

182 172 – – –

2015Tradeandotherpayables 876614 – – –Loansandotherborrowings 811890 – – –

1688504 – – –



23. FINANCIAL INStRUMENtS (continued)Liquidity risk (continued)

Company

Up to 3 months

£s

3 to 12 months

£s

1 to 2 years

£s

2 to 5 years

£s

2016Tradeandotherpayables 7 678 – – –Loansandotherborrowings – – – –

7 678 – – –

2015Tradeandotherpayables 351422 – – –Loansandotherborrowings 811890 – – –

1163312 – – –

Currency riskTheGroupisexposedtofluctuationsinforeigncurrenciesarisingfromhavingdepositsinvariouscurrenciesaswellasthepurchaseofgoodsandservicesincurrenciesotherthantheGroup’smeasurementcurrency.

Jubileeoperatesinternationallyandisexposedtoforeignexchangeriskarisingfromvariouscurrencyexposures,primarilywith respect to theSouthAfricanRandandPoundSterling.TheGroup isexposed tocurrency riskonSouthAfricanassets,cashreserves,depositsreceived,tradereceivables,andtradepayables.Themostsignificantofthesebeingtheinter-companyloanswhichitholdswithitsSouthAfricansubsidiariesaswellasitsSouthAfricanintangibleassets.ProfitismoresensitivetomovementinPoundSterlingexchangeratesin2016than2015becauseoftheincreasedamountofPoundSterling-denominatedborrowings,hencethesignificantadjustmenttothefairvalueoftheintangibleassets.

TheGroupdoesnothedgeitsforeignexchangeonfundingofprojectsasmanagementisoftheopinionthatitwouldnothavereducedtheriskofforeigncurrencyfluctuations.Currencymovementsmainly includemovementsthatariseasaresultofRand-denominatedprojectsthatarere-valuedateachperiod-end.

TheGrouphascertaininvestmentsinforeignoperations,whosenetassetsareexposedtoforeigncurrencytranslationrisk.CurrencyexposurearisingfromthenetassetsoftheGroup’sforeignoperationsismanagedprimarilythroughborrowingsdenominatedintherelevantforeigncurrencies.

ThetablebelowclassifiestheGroup’sforeigncurrencyriskbetweenthedifferentfunctionalcurrenciesasatyear-end,andtherespectivebalancethereof:

Exchangeratesusedforconversionofforeignitemswere:

2016 2015

ZAR:£(Average) 1:0.05047 1:0.0555

ZAR:£(Spot) 1:0.04667 1:0.0517

ThefunctionalcurrenciesofthecompaniesintheGrouparePoundSterling,SouthAfricanRand,AustralianDollarsandMadagascarAriary.TheGroupdoesnothedgeagainst theeffectsofmovements inexchange rates.These risksaremonitoredbytheBoardandexecutivemanagementonaregularbasis.



Thefollowingtabledisclosestheyear-endratesappliedbytheGroupforthepurposesofproducingthefinancialstatements:

Foreign currency units to £1.00 Australian

DollarSouth African

RandMadagascar

Ariary

At30June2016 1.80 19.81 5000At30June2015 2.05 19.34 5000

The carrying amounts of the Group’s foreign currency denominated monetary assets andmonetary liabilities at thereportingdateareasfollows:

Liabilities Assets

Group2016

£s2015

£s2016

£s2015

£s

SouthAfricanRand (1 749 834) (501801) 2 233 653 62286AustralianDollar (581) (5625) 2 018 1389MadagascarAriary (9 883) (9883) – –

Company

SouthAfricanRand – – 8 988 208596

TheCompanydoesnothaveanymaterialfinancialassetsorliabilitiesdenominatedinanycurrencyotherthanthePoundSterlingandZAR.

Thefollowingtablesummarisesthesensitivityoffinancialinstrumentsheldatreportingdatetomovementsintheexchangerate of the South AfricanRand, AustralianDollar andMadagascar Ariary for theGroup,with all other variables heldconstant.TheSouthAfricanRand,AustralianDollarandMadagascarAriaryinstrumentshavebeenassessedusingthesensitivities indicated in the table. These are basedon reasonably possible changes, over a financial year, using theobservedrangeofactualhistoricalratesfortheprecedingfive-yearperiod.

Impact on profit/equity2016

£s2015

£s

Judgements of reasonable currency exposure10%strengtheningofZARagainst£ 53 757 (216235)10%weakeningofZARagainst£ (48 382) 17709610%strengtheningofAUSagainst£ 288 38910%weakeningofAUSagainst£ (260) (318)10%strengtheningofMGAagainst£ (1 098) 2010%weakeningofMGAagainst£ 899 (16)

Borrowing facilitiesTheGroup finances its operations through a combination of debt and the issue of equity share capital. Interest ratefluctuationsonborrowingsarenotexpectedtogiverisetoamaterialrisk.



23. FINANCIAL INStRUMENtS (continued)Interest rate riskTheGroupmanagestheinterestrateriskassociatedwiththeGroup’scashandcashequivalentassetsbyensuringthatinterestratesareasfavourableaspossible,whetherthisisthroughinvestmentinfloatingorfixedinterestratedeposits,whilstmanagingtheaccesstheGrouprequirestothefundsforworkingcapitalpurposes.Theonlyinterestliabilityisasdisclosedinstatementoffinancialposition,underotherfinancialliabilities.A1%interestratechangewillhavenomaterialeffectonthefinancialstatements.

TheinterestrateprofileoftheGroup’sandCompany’sfinancialassetsat30June2016wasasfollows:

GroupPound

SterlingSouth African

RandAustralian

DollarMadagascar

Ariary total

Cashatbankfloatinginterestrate 3 719 468 648 762 – – 4 368 230Cashatbankonwhichnointerestisreceived 44 407 – 225 2 045 46 677

3 763 875 648 762 225 2 045 4 414 908

CompanyCashatbankfloatinginterestrate 3 719 468 – – – 3 719 468Cashatbankonwhichnointerestisreceived 32 084 8 988 – – 41 072

3 751 552 8 988 – – 3 760 540

TheinterestrateprofileoftheGroup’sandCompany’sfinancialassetsat30June2015wasasfollows:

GroupPoundSterling

SouthAfricanRand

AustralianDollar

MadagascarAriary Total

Cashatbankfloatinginterestrate 96381 6803 – – 103184Cashatbankonwhichnointerestisreceived 252086 2705 810 2045 257645

348467 9508 810 2045 360829

CompanyCashatbankfloatinginterestrate 93381 – – – 93381Cashatbankonwhichnointerestisreceived 252086 – – – 252086

348467 – – – 348467

Thereisnosignificantdifferencebetweenthecarryingvalueandfairvalueofcashandcashequivalents.



Group and Company 2016

Financial liabilities

Weightedinterest rate

%

1 year or less

£s

2 to 5 years

£stotal

£s

Interest-bearingborrowingsYorkvilleAdvisors – – – –

total – – – –

2015Interest-bearingborrowingsYorkvilleAdvisors 10.0 550921 – 550890

total 10.0 550921 – 550890

A1%increaseininterestrateswouldnothavehadamaterialimpactontheGroup’sfinancialstatements,thereforenoadditionalsensitivityanalysiswasconsiderednecessary.

Capital risk managementTheGroup’sobjectiveswhenmanagingcapitalaretosafeguardtheGroup’sability tocontinueasagoingconcern inordertoprovidereturnsforshareholdersandbenefitsforotherstakeholdersandtomaintainanoptimalcapitalstructuretoreducethecostofcapital.

ThecapitalstructureoftheGroupconsistsofdebt,whichincludestheborrowings(excludingderivativefinancialliabilities),cashandcashequivalentsdisclosed,andequityasdisclosedinthestatementoffinancialposition.

Inordertomaintainoradjustthecapitalstructure,thegroupmayadjusttheamountofdividendspaidtoshareholders,returncapitaltoshareholders,issuenewsharesorsellassetstoreducedebt.

Consistentwithothersintheindustry,theGroupmonitorscapitalonthebasisofthegearingratio.

Thisratioiscalculatedasnetdebtdividedbytotalcapital.Netdebtiscalculatedastotalborrowings(including“currentandnon-currentborrowings”asshowninthestatementoffinancialposition)lesscashandcashequivalents.Totalcapitaliscalculatedas“equity”asshowninthestatementoffinancialposition,plusnetdebt.

Therehavebeennochangestowhattheentitymanagesascapital,thestrategyforcapitalmaintenanceorexternallyimposedcapitalrequirementsfromthepreviousyear.

24. CONtINGENCIES AND COMMItMENtSOtherthandisclosedbelow,therearenomaterialcontingentassetsorliabilitiesasat30June2016.

24.1 Hernic tailings ProcessingOn15December2015, theCompanyexecutedaCo-OperationAgreement (“Co-OpAgreement”)withHernicon theturningtoaccount(“Processing”)oftheHernicTailingstoproducechromiteandPGMconcentrates.

TheCo-Op Agreement, replaced theHeads of Agreement (announced on 19 January 2015), in terms of which theCompanywasselectedastheexclusivepartytobeneficiatethechromiteandPGMscontained intheHernicTailings.DuringFebruary2015,theCompanycommencedsitepre-excavationandfoundationsforthe660000tonnesperannumprocessingplant (“Plant”) for theProject,basedon theCompany’sdefinitive feasibility studyandengineeringdesign,whichwascompletedinJune2015andincludedpilot-scaleandfullcommercialscaletrialstoconfirmthedesignandoperational parameters.

The total Project capital committed is £11.7 million (ZAR197 million). The capital commitment at the period end is£6.48 million(ZAR108million).

Ordersforall the long-lead itemswereplacedbymid-April2016.ConstructionoftheHernicPlanthasprogressedasscheduledandonbudget,with45%oftheProjectcompletedbyyear-end.Projectcapitalexpendituretoyear-endwas£4.6million(ZAR88.5million)equivalentto45%oftotalestimatedProjectCapital.Postyear-endandattheendofQ3of the2016calendar year theproject reachedacompletionof71%with theunauditedprojectexpenditure reaching£7.5 million(ZAR137.6million).



25. RELAtED PARtIES

Group Company

Loans/payments to related parties2016

£s2015

£s2016

£s2015

£s

– GDA,a relatedparty toMrGAnderson(a Director in Braemore Nickel PtyLimited)receivedDirectorfees;

2 703 2927 – –

– Jubilee paid Lion Mining Finance, withcommon Director Colin Bird, office rentforofficespaceintheUK;

33 600 33600 33 600 33600

– BraemorePlatinumSmeltersPtyLimitedpaidDeBeerMakoeleInc.fortheservicesofMsdeBeerasGroupChiefFinancialOfficer, which is considered part of keymanagementpersonnel.MsdeBeerwasan employee of De Beer Makoele Inc.duringtheperiodunderreview.

105 984 116550 – –

DuringtheyearthefollowingrelatedpartytransactionswereenteredintowithitsDirectors:

DrPhosaholdshisinterestinJubileethroughatrustnamedNMPTrust,ofwhichheisatrustee.RefertotheDirectors’reportonpage12ofthisreportandnote6onpage42formoredetailsonDirectors’remuneration.

26. BUSINESS SEGMENtSIn theopinionof theDirectors, thecontinuingoperationsof theGroupcompaniescomprise four reportingsegments(ofwhichthedescriptionshavebeenchangedtobetterreflecttheGroup’sstrategyofbecomingaplatinumproducerposttheDisposal)being:

• thebeneficiationofPlatinumGroupElements (“PGEs”) andassociatedmetals anddevelopment ofPGMsmeltersutilisingexclusivecommercialisationrightsoftheConRoastsmeltingprocess,locatedinSouthAfrica(“PGEbeneficiationanddevelopment”);

• theevaluationofthereclamationandprocessingofsulphidenickeltailingsatBHPBilliton’sLeinster,KambaldaandMountKeithpropertiesinAustralia(Nickeltailings);

• theexplorationandminingofPlatinumGroupElements(“PGEs”)andassociatedmetals(Explorationandmining);

• theparentcompanyoperatesaheadofficebasedintheUnitedKingdom,whichincurredcertainadministrationandcorporatecosts.

TheresultsofthediscontinuedoperationscomprisetwosegmentswhichhavebeencombinedintoonesegmentreferredtoasDisposalGroupbeing:

• basemetalsmeltinginSouthAfrica;and

• electricitygenerationinSouthAfrica.

TheGroup’soperations span five countries,SouthAfrica,Australia,Madagascar,Mauritius and theUnitedKingdom.ThereisnodifferencebetweentheaccountingpoliciesappliedinthesegmentreportingandthoseappliedintheGroupfinancialstatements.MauritiusandMadagascardonotmeet thequalitative thresholdunder IFRS8,consequentlynoseparatereportingisprovided.



Segment report for the year ended 30 June 2016

£s

PGEbeneficiation

anddevelopment Nickel tailings

Explorationand mining

Otheroperations

totalcontinuingoperations

Disposalgroup

Totalrevenues (1 127 880) – – (346 041) (1 473 921) (1 420 145)Costofsales 589 290 – – 19 019 608 309 682 365Forexlosses (7 658) – – 77 571 69 913 – Lossbeforetaxation 787 554 10 711 16 174 2 784 748 3 599 187 276 660Taxation – – – – – – Lossaftertaxation 787 554 10 711 16 174 2 784 748 3 599 187 276 660Interestreceived (120 301) – (75) (23 701) (144 077) (193)Interestpaid 5 – – 13 413 13 417 – Depreciationandamortisation 597 613 – 838 – 598 451 –

total assets 14 004 569 31 666 391 23 626 458 3 797 622 73 095 339 –

total liabilities (2 904 304) (9 656 474) (3 885 972) (478 516) (16 925 267) –

Segment report for the year ended 30 June 2015

£s

PGEbeneficiation

anddevelopment Nickeltailings

Explorationandmining

Otheroperations

Totalcontinuingoperations

Disposalgroup

Totalrevenues (3885) – – (45014) (48899) (5160105)Costofsales – – – 25529 (25529) (2167422)Forexlosses (31) – 3462 19485 23370 –Lossbeforetaxation 1560914 18862 61103 1300247 2941126 452002Taxation – – – – – 52194Lossaftertaxation 1560914 18862 61103 1300247 2941126 504196Interestreceived – – – (65283) (65283) (1017)Interestpaid 4 – – 194754 194758 455Depreciationandamortisation 694487 – 1949 – 696436 744361

total assets 7 449 691 27 757 917 24 036 807 611 255 59 855 670 7 696 389

total liabilities (1 662 785) (8 597 474) (4 003 719) (1 509 300) (15 773 278) (2 270 780)



27. DEFERRED tAx

Group Company

Figures in Sterling 2016 2015 2016 2015

Deferred tax liability

Foreignexchangefairvalueadjustmentstointangible assets (14 677 152) (13738729) – –

Deferred tax assetTaxlossesavailableforset-offagainstfuturetaxable income 218 345 – – –

28. GOING CONCERNTheDirectorshaveadoptedthegoing-concernbasisinpreparingthefinancialstatements.

TheCompanyhascontinuedtoprogresswiththeimplementationofitsMine-to-Metalsplatinumstrategy,morespecificallyandwithreferencetotheabove:

28.1 On22March2016,theCompanysuccessfullycompletedtheprojectfundingfortheexecutionandcommissioningofbothitssurfaceplatinumprocessingprojects.

Thefundingcomprisesacombinationofseniorsecureddebtandunsecureddebt.TheseniorsecureddebtisuptoamaximumofUSD10million(ZAR153million),withaninitialadvanceofUSD3million(ZAR49.5million)andapossiblefurtheradvanceofUSD2million(ZAR30.6million)subjecttoanduponthetermsandconditionscontainedintheagreement.TheBorrowerhasagreedtoacceptandutilisetheinitialadvanceonthetermsandconditionscontainedintheagreement,andacknowledgesitsrighttocallforafurtheradvanceasprovidedforintheagreement,inordertofundinaggregateitsobligationstoexecutethetwoprojects.TheunsecureddebtistoamaximumofUSD5million(ZAR76.5 million).TheCompanyalsocompletedanequityplacingof£2.5million(ZAR55.2million)whichwascompletedduringMarch2016asannouncedon22March2016.

28.2 On30September2015,Jubileecompletedthedisposalof100%oftheissuedsharesinJubileeSmeltingandRefiningPtyLtd (“JSR”,and70%of the issuedshares inPowerAltPtyLtd (“PA” toSiyandaResourcesPtyLtd (“Siyanda”,throughitsnominatedspecialpurposevehicleHornbillInvestmentsPtyLtd(“SPV”foraconsiderationof,inaggregate,ZAR110.5 million(approximately£5.3million(”theDisposal”.TheCompanyreceivedof85%ofthepurchaseconsiderationincash.Tenpercentoftheremaining15%ofthepurchaseconsiderationisheldinescrowinanamountapproximatingto£0.390million(ZAR8.9million),netofclosingadjustmentsincludingstockandsupplieradjustments.Refertonote22onpage56ofthisreportfordetailsofthedisposal.

28.3 DuringtheperiodunderreviewtheCompanyalsosuccessfullycompletedanumberofequityplacingsforcash,raisinginaggregate£4.5million,netofissueexpenses.Refertonote16onpage52ofthisreportfordetailsofshares

issuedfor cash.

TheDirectorsareof theopinion that theGroupandCompanyare fundedsufficiently toenable it tocontinuewith itsoperationsasagoingconcern.



29. EVENtS AFtER tHE REPORtING PERIOD29.1 Australia – Nickel in tailings surface project

Subsequenttotheperiod-end,BraemoreNickel(Pty)Ltd(“Braemore”)hasreceivedfromBHPBillion(Pty)Ltd(“BHP”)anoticeofterminationoftheTailingsSupplyAgreementrelatingtotheNickelcontainingmaterial inWesternAustralia.Braemorerejectstheterminationnoticesincenofactualorlegalbasisexistsforsuchtermination.BraemorehasinformedBHPthatitintendstoinitiatelegalproceedingtohavetheterminationsetaside.ManagementassessesthatthishasnoimpactonthecarryingvalueoftheNickelTailingProjectintangibleasset(per note 8)atthedateofthisreport.

TheCompany’sAustraliansubsidiary,BraemoreNickel(Pty)LtdcontinuedwithongoinginternalreviewandoptimisationoftheprocessflowsheetfortherecoveryofNickelfromtheLeinsterprojecttailings(“LeinsterTailings”),inparticulartheCompany’srecentflowsheetoptimisationintheliberationofmineralslockedintailings.ThisapproachiscurrentlybeingimplementedintherecoveryofPGMinassociatedsulphidesfromtheSouthAfricantailingsprojects,specificallytargetingthebeneficiationofsulphitemineralswhichallowsforsignificantenhancementinconcentrategradeprofileswhichhasimprovedtheprojectedtargetperformanceandprofitabilityofthesetailings.

29.2 Warrants issued and dealings in securitiesTheCompanyhasreceivednotificationon10November2016fromawarrantholder toexercise25000000existingwarrantsintheissuedsharecapitalofJubileeatapriceof3.55pence(ZAR63.90cents)perwarrantshare.Theexerciseofwarrantsharesamounts,inaggregate,toacashvalueofGBP887500(ZAR16million).ThewarrantsharesareexpectedtobeadmittedtoAIMon17November2016.

TheCompanyalsoissuedthefinal1848167newJubileeordinaryshares(“Shares”)atanaverageissuepriceof2.44pencepersharetoDrMatthewsPhosa,whohaselectedtoreceiveSharesinlieuof100%ofhisdirector’sremunerationaccruedtohimfortheperiod1October2014to31July2016.ThisisthefinalshareissuancetoDr Phosaandconcludestheprogrammeof shares in lieuofdirector remuneration forDrPhosa.Thesharesare issuedunder theauthorityofordinaryresolutionnumber12andspecialresolutionnumber2passedattheCompany’sAnnualGeneralMeetingheldon27November2013.TheissuewillbringDrPhosa’sinterestintheCompanyto2834884shares,being0.3%oftheissuedcapitaloftheCompany.ThesharesareexpectedtobeadmittedtoAIMon17November2016.


Annexure to the annual financial statements

Headline earnings per share

Accounting policyHeadlineearningspershare(“HEPS”)iscalculatedusingtheweightedaveragenumberofsharesinissueduringtheperiodunderreviewandisbasedonearningsattributabletoordinaryshareholders,afterexcludingthoseitemsasrequiredbyCircular2/2013issuedbytheSouthAfricanInstituteofCharteredAccountants(SAICA).

Reconciliation of Headline earnings per share

Headline loss per shareJun 16 Jun15£’000 £’000

Headline loss per share comprises the following:Continuing operationsLossfromcontinuingoperationsfortheperiodattributabletoordinaryshareholders (3 412) 2910Impairmentofotherfinancialassets 856 50Lossonsaleofpropertyplantandequipment 1 (60)Lossonexchangedifferences 81 21

Headlinelossfromcontinuingoperations (2 474) (2897)

Weightedaveragenumberofsharesinissue 906 241 644851Dilutedweightedaveragenumberofsharesinissue 906 241 644851Headlinelosspersharefromcontinuingoperations(pence) (0.27) (0.45)Dilutedheadlinelosspersharefromcontinuingoperations(pence) (0.27) (0.45)Headlinelosspersharefromcontinuingoperations(ZARcents) (5.85) (8.09)Dilutedheadlinelosspersharefromcontinuingoperations(ZARcents) (5.85) (8.09)

Discontinued operationsLossfromdiscontinuedoperationsfortheperiodattributabletoordinaryshareholders (283) (628)Impairmentofotherfinancialliabilities – 50

Headlinelossfromdiscontinuedoperations (283) (579)

Weightedaveragenumberofsharesinissue 906 241 644851Dilutedweightedaveragenumberofsharesinissue 906 241 644851Headlinelosspersharefromdiscontinuedoperations(pence) (0.03) (0.09)Dilutedheadlinelosspersharefromdiscontinuedoperations(pence) (0.03) (0.09)Headlinelosspersharefromdiscontinuedoperations(ZARcents) (0.67) (1.62)Dilutedheadlinelosspersharefromdiscontinuedoperations(ZARcents) (0.67) (1.62)Averageconversionrateusedfortheperiodunderreview£:ZAR 0.04667 0.0555


Shareholder analysisas at 30 June 2016

Registerdate: 30June2016

Issuedsharecapital: 991087194

Shareholder spreadNumber of

shareholders %Number of

shares %

1–5000shares 760 1175278 0.125001–10000shares 146 1133534 0.1110001–50000shares 204 4762449 0.4850001–100000shares 62 4657481 0.47100001–1000000shares 107 35004059 3.541000001sharesandover 64 944354393 95.28

1343 991087194 100

Distribution of shareholdersNumber of


shares %

Privateshareholders 894 66.57 206744314 20.86Deceasedaccounts 8 0.60 23958 0.01Nomineecompanies 416 30.98 771641306 77.86Limitedcompanies 14 1.04 10026219 1.01Bankandbanknominees 7 0.52 1933154 0.19Otherinstitutions 4 0.29 718243 0.07

1343 100 991087194 100

Public/non-public shareholdersNumber of


shares %

Non-publicshareholdersDirectorsandassociatesoftheCompanyholdings 4 10876526 1.10Publicshareholders 1339 980210668 98.90

1343 991087194 100

Jubilee Platinum PLC Annual Report 2016 … · towards overall profitability and establishing a...

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