The growth in mine-to-metals company Jubilee Platinum’s revenue in rands for the year ended June 30, compared with the previous reporting period, illustrates the successful implementation of the Mpumalanga-based Middelburg smelter renewal and expansion programme concluded in the last quarter of the financial period under review, Jubilee CEO Leon Coetzer said in early December.

“We are pleased to announce results that continue to demonstrate the company’s consistent improvement in its operations while also growing our existing asset base by securing access to an estimated 950 000 t of platinum-containing material at surface,” he noted.

The AltX- and Aim-listed Jubilee reported revenue down by 15% for the year ended June 30, mainly owing to an 18% strengthening of the British pound to the rand for the year under review; however, this represented a 4% increase in rands, compared with the comparative 2013 reporting period.

Revenue increased to R68.1-million in 2014, compared with R65.4-million recorded for 2013, while Jubilee’s gross profit margin increased by 0.4% to 39.4% for 2014, compared with the 2013 period, recording a gross profit of R26.8-million, up 5% measured in rands.

The company’s operating expenses were down 21.2% to £7.1-million (R120-million) from the £9.1-million (R125-million) reported in 2013; however, Jubilee reported a loss of 1.27p per ordinary share for the year ended June 30, compared with the 2.41p per ordinary share loss for 2013.

Coetzer pointed out that Jubilee’s revenue increased despite the lower revenues achieved during the construction and commissioning phase of the renewal programme at the company’s Middelburg smelter for the fourth quarter of 2013 and the first quarter of 2014.

During the period under review, the Middelburg operation’s revenue in rands was up 13% over the previous reporting period, with gross profit for the operation exceeding the targeted 38% by the second quarter of 2014.

Jubilee stated that its growth in revenue was underpinned by a decrease in operating expenditure supporting the company’s targeted gross profit margins, while revenue and gross profit margins continued to grow after the reporting period, with the Middelburg operations achieving record production, up by 47%, during the third quarter of 2014.

“The company’s focus is firmly set on sustaining the production levels at the Middelburg operations while bringing into operation the processing of the platinum-containing surface material at the Dilokong chrome mine. “The company further expects to conclude the sale of the Quartzhill property [to Anglo American subsidiary Rustenburg Plati- num Mines] for an estimated R75-million within the first quarter of 2015,” emphasised Coetzer.