JOHANNESBURG (miningweekly.com) – Despite the difficult trading environment that started facing the platinum sector at the end of 2008, Aim-listed Ridge Mining on Thursday posted a net profit of $16,6-million for the year ended December 31, 2008, up 24% from the $13,4-million achieved in 2007.

“In an exceptionally difficult year for all our management and staff, I would like to pay tribute to their outstanding performance in conditions of quite appalling economic and financial turmoil,” CEO Terence Wilkinson told shareholders in a statement.

He said that considerable progress had been made with the preparations to commission the Blue Ridge project, in which Ridge Mining held a 50% stake, and which had faced some delays, during the December Christmas break.

Consequently, the commissioning could only take place in January.

The mine was on schedule to reach steady-state of 120 000 t/m of ore processed by the third quarter of the year.

Further, the Blue Ridge joint-venture project had unwound its hedge book in February, recording a profit of R541-million. This allowed the company to repay the majority of the project debt with a mezzanine loan facility in place.

“We are currently in the process of arranging additional debt facilities to fund the previously announced R400-million in additional working capital necessitated by the delay and we expect to make a further announcement shortly,” said Wilkinson.

Meanwhile, a feasibility study for the Sheba’s Ridge project, in which Ridge Mining held a 30% stake, was completed during 2008, indicated that the project was economically viable at forecast long-term platinum group metals prices.