Jubilee Platinum Turns Cash Flow Positive At Middelburg

Jubilee Platinum PLC has swung to a profit as revenue rose at its Middelburg operations in Mpumalanga in the second quarter of 2014. The company stated that the unaudited gross profit for Middelburg was up 11.14% in the quarter to R1.2 million, swung from a net loss of R 2.7 million in the first quarter, on a revenue rise of 44.9%.

Jubilee Platinum PLC

And in further developments the company added that subsidiary Tjate Platinum Corporation has submitted its environmental-impact assessment (EIA) and environmental management programme (EMP) in respect of the Tjate platinum mine project, in Mpumalanga – the final hurdle before the granting of a mining right by the Department of Mineral Resources (DMR).

Located on the eastern limb of the Bushveld Complex, Tjate was independently estimated to contain the world’s largest undeveloped defined block of platinum ore, offering a possible 65-million ounces of platinum-group elements and gold.

The mines-to-metals specialist added in a statement that it was also progressing towards completion of the sale of the Quartzhill farm portion of the Tjate tenement, which was expected to generate gross sales proceeds of R75-million.

CEO Leon Coetzer said the submission of the EIA and EMP for Tjate marked an important step in the application to the DMR for a mining right for Tjate, adding that Jubilee had engaged with the department about expediting the mining right application and the associated sale of the Quartzhill property.

“I am also encouraged to report that our Middelburg operations sustained positive earnings for July, in spite of the challenges faced at the smelter operations owing to the national labour strike by employees affiliated to the National Union of Metalworkers of South Africa,” he noted.

Jubilee said that the improvement at Middelburg was driven by the conclusion of the renewal programme of its smelter operations, with growing positive earnings in both May and June.

Jubilee said it had been able to counter the impact on operations caused by the ongoing national strike of mining employees in South Africa, by increasing power sales to the National Electricity Provider of South Africa.

It is currently reviewing options to further upgrade its power line infrastructure connecting its power plan to the national grid, to allow an increase of these power sales.