JOHANNESBURG (miningweekly.com) – Diversified investment company Pallinghurst Resources on Wednesday reported another interim loss of $32-million for the six months ended June 30.

This was, however, a significant improvement on the loss of $149-million incurred in the six months to June 30, 2015, owing to improved commodity prices from the start of the year.

CEO Arne Frandsen on Wednesday said it was too early to declare the departure of the bear market.

The company operates in the strained platinum group metals (PGMs) environment, as well as the hemorrhaging local steel market.

“Prudently, and despite the more positive market conditions, we have continued to focus the investment portfolio on reducing costs and increasing profitability rather than production levels.

“The philosophy is simple: ‘the ore in the ground is not turning sour’ and so it is value-accretive to increase current profitability and to preserve long-term value,” he added.

Still, Pallinghurst’s Sedibelo Platinum Mines achieved PGM dispatches of 80 000 oz for the first six months of the year, while the Tshipi é Ntle manganese mine, in the Northern Cape, sold 1.5-million tonnes of ore in its financial year to February 29, as well as 960 000 t in the six months to August 31, producing positive cash flow.

Further, Pallinghurst reported that its Gemfields subsidiary had generated record auction revenues of $174-million in its financial year to June 30, with its emerald auctions this year achieving record average per carat prices for their respective categories.

However, Frandsen pointed out that, despite the positive financial and operational performance from Gemfields, the share price performance was disappointing, declining markedly over the six-month period.

“As a consequence, it weighed negatively on the Gemfields investment valuation during the period, accounting for most of the $33-million of unrealised losses,” he said.

Further, Frandsen added that the inherent value of its three investment platforms remained intact and the company would continue to focus on enhancing the full value of these.

“If the improving environment is sustained, each of our investments will be well-positioned to realise their significant inherent value for shareholders,” he said.