JOHANNESBURG (miningweekly.com) – Dual-listed Pallinghurst Resources has concluded what it called a “transformational year”, after successfully transitioning into an evergreen operating mining company during the year ended December 31, 2017.
The group, which is listed on the JSE and the Bermuda Stock Exchange, on Tuesday posted basic earnings a share of $0.04 for 2017, slightly down on the $0.06 reported in the prior year, with net profit after tax increasing marginally to $45-million.
“I am delighted to report another year of strong financial performance. The net profit of $45-million was achieved in a year where Pallinghurst transformed to an evergreen operating mining company and undertook the transformational acquisition of Gemfields,” said CEO Arne Frandsen.
Describing 2017 as a year of two halves for Gemfields, he explained that the first half of the year, prior to full ownership by Pallinghurst, saw the gem miner recording losses of $14-million and increasing indebtedness.
During the second half of the year, positive signs of improvements could be seen, supported by strong revenues from both ruby and emerald sales.
“It is too early to declare success . . . [but] encouraging results are emerging, with significantly higher premium emerald production at Kagem and the highest-ever auction revenues being achieved in the November 2017 ruby auction,” he added.
Meanwhile, the Jupiter Tshipi manganese mine achieved record levels of revenue, production and profitability for its financial year to February 28, 2018, supported by the significant increase in the manganese price throughout 2017 and continued tight control over operating costs.
For its financial year, Tshipi shipped a record 3.3-million tonnes, which, owing to strong prices, will result in the strongest financial performance to date.
“During Pallinghurst's 2017 financial year, we received distributions of about $15-million from Jupiter, with an additional $8-million received earlier this month,” Frandsen noted.
“Based on this sterling performance and a positive outlook, Jupiter has also announced its intention to relist on the ASX,” he concluded.