Jubilee Platinum's revenues and profits grow in first quarter

Jubilee Platinum said unaudited revenue in the first three months of the year was 32 per cent higher than the previous quarter as the company achieved growing rates of power sales.

Jubilee Platinum said unaudited revenue in the first three months of the year was 32 per cent higher than the previous quarter as the company achieved growing rates of power sales.

Revenue from smelting and refining operations came to 16.4m South African Rand (ZAR) while unaudited gross profit also jumped by 47% quarter-on-quarter to 11.2m ZAR.

Profits were boosted by increasing third party sales of electricity, generated from its power plant.

Chief Executive Officer, Leon Coetzer, said increased processing rates, a rise in rates of power sales and the creation of a platinum, exploration, mining, processing and smelting and refining business were the key drivers for growth.

"Jubilee continues to drive growth in its operations despite the challenging trading conditions. During the first quarter Jubilee has taken significant strides towards implementing its mine-to-metals strategy," he said.

During the period, the group increased its interest in Power Alt, the owners of the Middelburg Smelting Refinery, to 70% in February 2013.

Power Alt secured the issuance and grant of all applicable regulatory consents and electricity generation licences for selling 10 megawatts (MW) of power to the national electricity public utility, an increase from the 5MW currently contracted to the utility. The extension to the contract is valued at 98m ZAR.

Coetzer said the firm was able to improve revenues from its Middelburg operation from non platinum bearing material.

"The processing of non-platinum bearing material remains peripheral to Jubilee's larger platinum focus and has been used as a leverage to install platinum processing capacity in the Eastern Limb of South Africa's Bushveld Igneous Complex," he said.

The group also updated shareholders on its proposed acquisition of Platinum Australia (PLA). It has entered into an implementation deed and supporting transactional documents with PLA in relation to the acquisition of the entire issued capital.

The acquisition will give Jubilee access to PLA's PhokaThaba Platinum Mine in South Africa.

Jubilee expects the addition of PLA's mining and processing assets to help the company become one of the lowest cost producers of platinum concentrates.

Shares rose 3.64% to 7.12p at 11:05 Wednesday.

RD

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Why we won’t see a house-price crash in 2021
House prices

Why we won’t see a house-price crash in 2021

Lockdown sent house prices berserk as cooped up home-workers fled for bigger properties in the country. And while they won’t rise quite as much this y…
18 Jan 2021
Prepare for the end of the epic bubble in US stocks
US stockmarkets

Prepare for the end of the epic bubble in US stocks

US stocks are as expensive as they’ve ever been. How can you prepare your portfolio for a bubble bursting?
18 Jan 2021
The best investment trusts to buy for 2021
Investment trusts

The best investment trusts to buy for 2021

Sectors ranging from emerging markets to student accommodation look poised to do well this year, says David Stevenson, as he picks the best investment…
19 Jan 2021