JOHANNESBURG (miningweekly.com) – Aim- and AltX-listed Jubilee Platinum’s Middelburg smelter operation, in Mpumalanga, achieved a net profit of R1.25-million for the second quarter of the year, a turnaround from the first-quarter loss of R2.69-million.
This was owing to the conclusion of a smelter operations renewal programme, which resulted in positive earnings being recorded for May and June.
Jubilee said the smelter’s revenue increased by 44.89% quarter-on-quarter for the three months ended June 30, to R17.84-million, while gross profit was up 11.14% to R7.26-million.
The company noted that production increased 47% quarter-on-quarter, adding that platinum smelting was targeted to start in the third quarter of the year.
“The company is currently concluding final recipe optimisation testwork on platinum-containing material secured for smelting at its Middelburg operations. The smelter trials are scheduled to be concluded over the next five days, which is aimed [at establishing] the optimum chemical additions for the smelting of this material originating from platinum refining waste,” Jubilee explained.
The company said the confirmation testwork would be used to conclude the financial parameters for the processing of platinum at the Middleburg operations.
“The targeted processing of platinum-containing material is in line with the company's stated strategy [of migrating] the Middelburg operations [to process] higher-value material on the back of the successful renewal [programme],” Jubilee pointed out.
Meanwhile, the company noted that it had, to date, been able to counter the impact of a national strike by members of the National Union of Metalworkers of South Africa on its operations by increasing electricity sales to State-owned power utility Eskom.
“The company is currently reviewing options to further upgrade the power line infrastructure connecting the company's power plant to the national grid, to allow increased power sales to the electricity provider,” Jubilee stated.
Further, the company was planning to submit its environmental management programme, as part of its mining right application for the Tjate platinum group metals project, by the end of July.
“We are also working closely together with Anglo American Platinum for the conclusion of the sale of Quartzhill, linked to the Tjate mining right,” said Jubilee CEO Leon Coetzer.