JBM jubilee mines nl

Jubille JBM 15c Dividend $29m profit

  1. 406 Posts.
    Jubilee Mines NL (ASX: JBM) will reward its shareholders with a 15
    cent maiden dividend after announcing a 69.5% increase in net annual
    profit to $29.56 million. This is the company's second successive
    year of strong profit growth and outstanding production performance
    as a nickel producer.

    The maiden dividend, combined with the strong profit performance,
    confirms Jubilee's status as one of Australia's leading mid-sized
    mining companies.

    The increased net profit was struck on a slightly lower gross sales
    revenue of $120.4 million, compared with $131.1 million for the
    previous year. Gross operating profit for the project was $65.6
    million, compared with $69.1 million previously, demonstrating the
    continued high operating margins of Jubilee's key asset, the Cosmos
    Nickel Mine in Western Australia's North Eastern Goldfields. Sales
    revenue net of hedging was $118.7 million for the year, compared with
    $110.3 million for the previous year.

    The full year bottom line performance was a reflection of increased
    nickel prices in the second half of the year compared with the first
    half, and the completion of Jubilee's hedging program.

    The net profit was achieved after taking into account amortisation
    and depreciation of $12.75 million, royalties of $4.8 million,
    financing costs of $3.7 million and tax of $11.5 million. In
    addition, the company made a combined hedging and foreign exchange
    gain of $2.3 million compared with a loss of $20.7 million last year.

    The profit result equates to earnings per share (EPS) of 24.3 cents.

    The dividend, which is unfranked, will be paid to all shareholders
    registered at 2 September, 2002, is payable on September 30, 2002,
    and comes just two years after Jubilee made the transition from
    explorer to producer.

    Jubilee's Managing Director, Kerry Harmanis, said the strong result
    was a pleasing outcome following a successful year for the company.

    "We have had an excellent year, with Cosmos turning in another
    consistently strong operational performance and continuing to exceed
    feasibility forecasts," he added.

    "Our financial performance for the 2001/2002 year was enhanced by the
    strong recovery in nickel prices, particularly towards the end of the
    financial year," Mr Harmanis said. "Now that the company has
    completed its nickel hedge program, we can benefit fully from
    improved world nickel prices which are expected to continue during
    the current financial year."

    Mr Harmanis said Jubilee's board was keen to maintain the current
    level of return to shareholders, but this would obviously depend on
    nickel prices this financial year.

    Jubilee is on track to achieve a smooth transition to underground
    mining during mid-2003, enabling the Company to maintain annual
    nickel production in excess of 10,000 tonnes per annum at
    life-of-mine cash costs of around US49 cents a pound.

    OUTLOOK

    Mr Harmanis said the outlook for 2002/2003 was encouraging, with
    Jubilee benefiting from further recovery of world nickel prices.

    "With the payment of our maiden dividend in September, a continued
    intensive exploration effort and the transition to underground mining
    scheduled for mid-2003, the outlook for Jubilee and its shareholders
    is very positive," Mr Harmanis added.


    Released by: On behalf of:
    Jan Hope / Nicholas Read Kerry Harmanis
    Jan Hope & Partners MANAGING DIRECTOR
    Telephone: (+61-8) 9388-1474 Jubilee Mines NL
    Telephone: (+61-8) 9213-1588
    www.jubileemines.com.au

 
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