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LONDON (Alliance News) - Jubilee Platinum PLC Friday said it increased revenue and production from its Middelburg smelter and power operations in South Africa in the third quarter of 2014 from the second quarter, but net profit suffered from the strength of the pound as it decreased upon being exchanged from South African rand.
Jubilee shares were up 6.1% to 1.30 pence per share Friday morning.
Jubilee said revenue rose in the third quarter ended September 30 to GBP1.2 million, compared to GBP993,705 in the second quarter. Gross profit also was up in the third quarter to GBP466,199, from GBP404,115 in the immediately previous quarter.
Jubilee saw an increase in net profit in South African rand terms, totalling ZAR1.3 million in the third quarter, up from ZAR1.25 million in the previous quarter. However, in sterling terms, net profit decreased to GBP69,467 in the third quarter from GBP72,669 in the second.
"The company illustrated the robustness of its business model during the third quarter as it was able to maintain the continued growth in earnings from the Middelburg operations despite the challenges faced due to a nationwide labour strike by the National Union of Metal Workers of South Africa during the month of July," said Chief Executive Leon Coetzer.
The company reported record production and revenue for September, after staff returned from strike action, with the plant reaching design capacity and producing 840 tonnes of metal. Processing of the first batch of platinum material is scheduled to commence in the fourth quarter, it said.
"The project for the surface processing of platinum containing material...estimated to be 800 000 tonnes, is progressing well as we drive towards bringing the project into operation," said Coetzer.
Jubilee Platinum has secured funding towards upgrading the power line infrastructure connecting the company's power plant to the national grid, in order to increase electricity power sales to the South African national energy provider. The funds were raised via an equity placing announced on September 30.
Upgrading the plant's power line will take approximately eight weeks, it said, and will generate an additional GBP195,000 per month in revenue.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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