Diversified mining company Pallinghurst, which made $45-million profit in 2016, is upbeat on 2017.
The JSE-listed company spoke of all three of its business platforms being well positioned for further growth and value-unlock.
“I remain optimistic for 2017 and beyond,” said Pallinghurst CEO Arne Frandsen in a Stock Exchange News Service announcement last week, in which the asset value of the company was put at $367-million.
Pallinghurst chairperson Brian Gilbertson said that intense evaluation on unlocking asset value would accompany the company’s turning ten this year.
“We’re exploring all options and will shortly present a proposal to shareholders,” Gilbertson said.
Pallinghurst reported that its Sedibelo Platinum Mines, in the North West province, dispatched 165 000 oz of four element platinum-group metals in the 12 months to December 31, a period in which it enhanced safety to 4.2-million-plus fatality-free shifts and moved the pioneering Kell beneficiation technology to beyond feasibility stage.
Its Tshipi business sold 2.3-million tonnes of manganese ore in the period and distributed R1-billion to shareholders on the back of 2016’s fivefold manganese price surge, which has since abated.
Gemfields received record $44-million revenue at a single rough ruby and corundum auction and Jupiter conducted a $55-million share buy-back at $0.40 a share.
Gilbertson noted that upped prices of steelmaking materials like manganese and iron-ore followed the moderation of production by the major producers, which platinum-group- metals leadership had failed to emulate, resulting in the dollar price of platinum sagging to a record discount to the price of gold.
He said that Gemfields had made tangible strides towards becoming the “De Beers of coloured gemstones” and emerald areas in Ethiopia and Colombia could further cement its position as the world’s leading gemstone producer.
In partnership with Ntsimbintle, he added that Tshipi had become a large, long-life and low-cost operator of a world-class manganese mine.
Owing to the challenging platinum price environment, the company has focused on production optimisation and cash preservation at Sedibelo, now in its eighth year of production.