HomeBase MetalsPallinghurst posts loss for 2008

Pallinghurst posts loss for 2008

Arne Frandsen,
Johannesburg, South Africa — MININGREVIEW.COM — 31 March 2009 – Pallinghurst Resources LLP – incorporated less than two years ago and listed on the JSE for less than a year – has posted a full-year loss of US$46.4 million (R440 million) after cutting the value of its assets.

Revealing this in a telephone conversation with Bloomberg News from here, CEO Arne Frandsen said the loss, which compared with a profit of US$5.45 million (R52 million) a year earlier, was mainly due to a US$38.3 million (R364 million) reduction in the value of the company’s assets.

“Pallinghurst – the natural resources investment company chaired by Brian Gilbertson – took a conservative approach to valuing its portfolio as unprecedented volatility in world markets has continued to impact equity valuations and commodity prices,” Frandsen added.

“Falls in gemstone prices since October have resulted in significant uncertainty about emerald prices and demand for the remainder of 2009, the Guernsey,” the Channel Islands-based company said in a statement to Johannesburg’s Stock Exchange News Service.

Gilbertson – former CEO of BHP Billiton Ltd., the world’s largest mining company – plans to boost the “neglected” Faberge Limited brand name by offering jewellery, eyewear and watches made from emeralds and other gemstones mined in Africa. Pallinghurst owns 47% of Faberge.

Bloomberg reports that Pallinghurst has fallen 76% since listing on 20 August 2008, giving it a value of R655 million. It started platinum production at its Pilanesberg mine in South Africa on 23 March, and plans to increase annual output to 250 000 ounces of platinum group metals and gold by September this year.