LONDON (Alliance News) - Aquarius Platinum Ltd Friday reported higher operating profits and a narrower net loss as it cut costs and improved the operational efficiency of its mines, but its revenues declined as hit by lower platinum group metal prices and the weakening of the rand offset increased production.
The company reported a net tax loss of USD24 million for the six months to end-December compared with a loss of USD184 million a year earlier when it was hit by massive impairment writedowns.
Its mine earnings before interest, tax, depreciation and amortisation rose to USD10 million, from USD6.5 million, even though revenue for the half year was USD113 million, down from USD116 million, due to lower platinum group metal prices.
The company noted that Dollar metal prices were 5% lower than the previous year, despite the deficit of platinum group metals during 2013. Aquarius said this deficit is forecast to continue into 2014.
Additionally, regulatory uncertainty in South Africa and Zimbabwe, combined with "the precarious state of the South African industrial relations environment" continued to make its longer term production plans and capital allocation difficult.
Group attributable production rose to 168,014 platinum group metals from 156,787 platinum group metals in the previous year.
The company said that exchange rates had had a "volatile" effect on its earnings, as the Rand weakened 19% on average against the US Dollar. Average Rand basket Price rose 13% due to the weaker Rand. Aquarius saw net foreign exchange gains of USD3 million during the period.
Aquarius said that, despite its credible operational performance in the half year "no value was created for our shareholders," and that it would continue to try and reverse this by "focussing on continued improvements in safety, production and critically cash costs."
Shares in Aquarius were trading up 0.6% at 39.25 pence Friday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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