Johannesburg, South Africa — 28 November 2012 – Pallinghurst Resources says that its platinum assets, comprised principally of the proposed 250,000ozpa Pilansberg Platinum Mines (PPM), have achieved break-even this year, but will remain unlisted, as there was no need yet to access the capital markets.
“You list because you want access to capital. Right now, why do we need to list?” said Arné Frandsen, CEO of the R1.6 billion Pallinghurst Resources. “We don’t need the cash and the company is debt-free,” he added.
Miningmx reports that Pallinghurst Resources de-listed the platinum assets held in Platmin at the end of 2011, as it sought to consolidate several farms, including PPM’s neighbouring property Sedibelo, which separates PPM from another Platmin-owned farm, Magazynskraal.
However, Pallinghurst subsequently sold 16% of Platmin to the South African government’s Industrial Development Corporation (IDC) for R3.24 billion which provided the platinum firm with some US$500 million in net cash.
Pallinghurst told the SA Reserve Bank in December 2011 that it would undertake to re-list the platinum assets before January, 2013, but Frandsen said the SA Reserve Bank would roll this forward every three months provided it was informed.
Operationally, PPM was performing well, said Frandsen, although he declined to disclose whether it had achieved the 250,000 oz/year annualised target as intended. “We have improved in the last 12 months by multiples, and on a month-on-month basis, it has been extremely encouraging,” he said.
Pallinghurst had made “good progress during H1-12, both in consolidating its PGM properties and improving production at PPM” said SBG Securities in a note in October. It added, however, that the IDC investment had not been consummated.
Palllinghurst has said in the past that it hopes to become a top four platinum producer within four to five years, targeting 1.1Mozpa in output.
Frandsen said the platinum assets would eventually list on either the London or Hong Kong stock exchanges, with another listing in Johannesburg.
Source: Miningmx. For more information, click here.