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LONDON (Alliance News) - Jubilee Platinum PLC Thursday said cash flows, revenues and gross profits are continuing to grow at its Middelburg smelter and power plant, and will further be supported by a third ARC furnace, which is on target to be commissioned in March.
In an operations update, the company said it expects the higher capacity of the plant once the furnace comes on line to increase gross profit margin to its target of 38%. The capacity of the plant after the new furnace is online is expected to be 13,800 tonnes of metal.
Jubilee added that it has begun talking with an alternative party over a short-term DCM tailings processing deal to offset the delay in concluding a processing start date with Platinum Australia Ltd.
The platinum mine-to-metals specialist, with operations in Australia and Africa, had commissioned the Middleburg plant to smelter ferro-alloy metals in response to the downturn in the platinum industry. It says it could switch it back to platinum metals in a short period.
"We are pleased with the positive results delivered by continued efforts at the Smelter operation to grow our revenues and attain positive earnings. The growth in the gross profit margin reflects the growth in output and improved operational efficiencies. The last phase of the renewal programme at the Smelters is well on its way and is the last hurdle to achieve positive earnings for the Smelter operations," Chief Executive Leon Coetzer said in a statement.
It said revenues at the smelter were ZAR17.7 million in the fourth quarter of 2013, up from ZAR11.9 million a year earlier. Gross profit was up 27.4% in rand terms, it added.
Jubilee Platinum shares were up 6.7% at 2 pence Thursday morning.
By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1
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