“I am pleased to report that the significant progress made in each of our Investment Platforms has led to a material increase in the underlying value of Pallinghurst’s assets and a net profit for the company of over 100 million US dollars for the six months ended 30 June 2014. These solid results are primarily attributable to increases in Gemfields’ share price and the valuation of Jupiter,” said Arne Frandsen, chief executive of the natural resources investment company, [DATA PGL:Pallinghurst Resources Limited].
“The company’s share price has also risen, doubling in the past 12 months, making it one of the best performing stocks on the JSE for the year. I expect further value to be unlocked as we start seeing the fruits of the past seven years of effort.”
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The group said that despite the five month labour strike in the platinum industry, estimated to have cost around 2 billion US dollars loss in revenue for the platinum producers, the platinum price was not affected due to large amount of platinum stocks held by industrial users.
Pallinghurst’s Sedibelo Platinum Mine (SPM) therefore managed to increase production of Platinum Group Metals (PGM) by nine per cent to 71,800 ounces at its Pilanesberg Mine.
An acquisition of 45 million PGM ounces at Kruidfontein has also boosted SPM’s resource base to over 100 million PGM ounces.
At Tshipi, the company’s steel making business, one million tonnes of manganese ore was produced, recording a profit in its first full year of operations despite the weak manganese price environment.
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At Gemfields, the group’s coloured gemstones consortium, revenue of 160 million US dollars was reported with earnings before interest, taxes, depreciation, and amortization EBITDA of 59 million US dollars.
“These significant achievements are the result of our focus on building the long-term sustainability of each business and I expect to be able to report further progress as we seek to realise the inherent value in our Investment Portfolio,” concluded Frandsen.