JOHANNESBURG (miningweekly.com) – JSE-listed Pallinghurst's platinum company Platmin was increasing its platinum group metals (PGMs) output "to expectation", CEO Arne Frandsen said on Tuesday.

Platmin announced in January that the reaching of full capacity of 250 000 PGM ounces a year would be delayed by 12 months until early 2011.

Frandsen said that Pallinghurst was also consolidating its manganese and iron-ore interests to create a "South African-Australian approach" to growth participation.

The company recorded a $62,4-million net profit in the year to December compared with a $46,4-million loss in 2008,

Frandsen said that the relaunched luxury Faberé brand was making inroads from its flagship boutique in Geneva's prestigious rue Pierre Fatio, and that the coloured-gemstones company Gemfields had raised $12-million in the second half of 2009 at auctions of rough emeralds in London and Johannesburg.

"In a year undoubtedly filled with many challenges, we continued to improve the value of our investment platforms," Frandsen said.

A bankable feasibility study on Magazynskraal platinum prospect had begun and the Tshipi feasibility study had revealed an inferred and indicated resource of 163,2-million tons of manganese ore at an average grade of 37% in the Kalahari Basin.

The strategy was to build Pallinghurst's portfolio of PGM investments into a significant PGM platform through the acquisition and consolidation of low-cost operations.

The transaction to acquire 49,9% of the Bakgatla's interest in Sedibelo, a property contiguous to both Magazynskraal and Platmin's only current operation, Pilanesberg Platinum Mine (PPM), was being finalised, with PPM having access to 37 MVA of power.

Demand for iron-ore, coking coal and manganese was intensifying and the major steel producers were seeking to secure their raw materials through equity ownership of mining companies, which the company's strategy accommodated.