Pallinghurst Resources NAV up 28%

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The natural resources investment company’s NAV jumped from 1 billion rand to 4.4 billion rand for the year ended 31 December 2013 with improved performance made in their gem fields business, platinum mines and steel making divisions. 

(WATCH VIDEO: Arne Frandsen, CEO Pallinghurst- mining private group)

“I am pleased to report that the Company delivered a strong financial performance in 2013, with a profit for the year of 15 million US dollars and a 28 per cent increase in the NAV since 30 June 2013,” said Arne Frandsen, chief executive of [DATA PGL:Pallinghurst Resources Ltd.].

“This is a result of each of our three Investment platforms making significant progress during the year.”

The company’s share price has also risen 60 per cent since January 2013

Brian Gilbertson, chairman of Pallinghurst, said that their Sedibelo platinum mines in South Africa’s North West province and Tshipi Borwa, an open pit manganese mine in the Northern Cape, performed very well over the period.

“Sedibelo Platinum Mines, with its improving production profile and unique growth story, will be prepared to proceed with a listing,” said Gilbertson.

(WATCH VIDEO: SA’s IDC platinum venture with Arne Frandsen and Abel Malinga)

“We have taken Tshipi Borwa from a greenfields site to production and it is well on the way to becoming one of the world’s important manganese mines. Even in this ramp-up phase and in an environment of depressed prices, Tshipi has operated profitably in its first full financial year.”

Sedibelo Platinum Mines saw record production of almost 150,000 4E (four elements) PGM (platinum group metals) ounces, while increasing its resource base to over 100 million 4E PGM ounces.

Tshipi Borwa on the other hand produced one million tonnes of manganese ore.

He added that the Jupiter Mine in Western Australia, their iron ore producer, has potential to generate profits rapidly should the port of Esperance expand.

“There has been progress in the plans to expand the handling capacity at the port of Esperance. If port access can be secured, Mount Mason has the potential to rapidly generate profits and establish Jupiter as [an] emerging iron ore producer,” explained Gilbertson.

The group acquired an additional 40.8 million shares in Jupiter before its delisting from the Australian Securities Exchange (ASX), increasing Pallinghurst’s interest in Jupiter to 18.45 percent.

In their gem fields division, GemFields, he added that it had achieved a good operating and share price during 2013 as its emerald auctions continue to set record prices.

“Its years of hard work have transformed the rough emeralds industry and these skills are now being rolled out to its ruby interests. These initiatives are now supported in the global luxury markets by the iconic Fabergé name, with its “Art of Colour” focus and I look forward to Gemfields entrenching its position as the world’s leading coloured gemstone company,” he added.

The group believes that their portfolio of companies are well positioned to benefit from any recovery in commodity prices as global demand picks up and as they begin to realise the full value of their investments over the coming years.