Jubilee Metals : boosts earnings by 778% following big production gains, confident of withstanding ...

Jubilee is complying with go-slow orders in South Africa, but operations in Zambia are currently unaffected

Jubilee Metals Group PLC delivered a 778% boost to earnings in the six months to end December 2019.

Earnings rang in at £6.67mln, up from the £760,000 delivered in the corresponding period in 2018.

Cash generated from operations rose 570% to £4.89mln, and overall revenues were up by 205% to £25.4mln.

Jubilee paid £17.7mln in cash for investments during the period, whilst at the same time reducing external debt by £2.2mln, keeping the net gearing ratio at 0.3 %.

The company is currently backed by the cash generated from operating activities and by the proceeds of a recent £6.5mln oversubscribed capital raise.

At the year end cash and cash equivalents stood at £ 10.2mln, with short term assets covering a healthy 166% of short term liabilities.

'In what has been an incredibly fast moving and evolving situation, as a group we are not immune to the current global COVID-19 pandemic,' said chief executive Leon Coetzer.

'The safety of our team and employees is our highest priority at this time and we therefore applaud the pro-active decision taken by the South African government to enforce a 21-day nationwide lockdown. Whilst we are aware that the COVID-19 situation is evolving, we have a robust business model and are confident that the business will be able to withstand this disruption having, in anticipation, already taken proactive measures to minimise costs and maximise production leading up to this guidance. Furthermore, whilst work on the ground has been temporarily halted, we will continue to work remotely where possible, to progress operations and continue to advance our growth strategy.'