Australian-listed metals company Jubilee Platinum recorded an unaudited revenue increase in Q3 of 21.16% compared to Q2 2014.
Jubilee announced an unaudited gross profit margin increase and a R1.31 million net profit for its Middelburg operations in South Africa – despite the labour strike action during the month of July and production ramp-up post the national labour strike in the metal industry by NUMSA in August.
The company achieved record production and revenue after design capacity was reached in September 2014. Processing of first batch of platinum containing material has been scheduled to commence in Q4.
The robustness of Jubilee’s business model was proved during Q3, according to CEO Leon Coetzer.
He said the company was able to maintain the continued growth in earnings from the Middelburg Operations despite the challenges faced due to a nationwide labour strike by NUMSA during the month of July.
Impact on earnings
“The impact of the strike was partly offset by the increased sales of electricity to the South African National Energy Provider by the company’s private power plant during this time but revenues and earnings were negatively impacted for both July and August months due to the production interruptions,” explained Coetzer.
“We were especially encouraged by the record production achieved during September delivering 840 tonnes of metal for the month resulting in record revenue and earnings for the Middelburg Operation,” he said.
Jubilee continues to make significant progress in all of its current and projected activities, said Coetzer.
The company is currently meeting all the challenges presented by the current operating environment and remains fully confident in development of its business model and the opportunities it presents.
Jubilee secured funding through an investor equity placing, the proceeds of which will be used towards upgrading the power line and infrastructure connecting the company’s power plant, Power Alt, to the national grid.
This upgrade will enable increased electricity sales to the South African National Energy Provider and the local municipality. The installation of the electrical hardware is expected to be executed over a period of approximately 8 weeks following approval from the local municipality.
Jubilee Platinum is an exploration and development company with platinum and power operations in South Africa as well as nickel, iron and copper interests in Madagascar.