LONDON, July 24 (Reuters) - Aquarius Platinum saidon Wednesday fourth-quarter production rose 22 percent boostedby improvements at its Kroondal mine in South Africa but warnedof a still "difficult and complex" environment for platinumproducers.
The world's fourth-largest platinum producer, Aquarius said mine output attributable to the company rose to86,830 ounces in the fourth quarter of its financial year from71,230 ounces a year earlier.
Production attributable to Aquarius at its main operation atKroondal, a venture with Anglo American Platinum in thenorthwest province of South Africa, rose 30 percent.
Aquarius, however, said operational improvements were morethan offset by a fall in prices - the platinum group metalbasket price dropped 8 percent in dollar terms in the quarter -and what it said remained a difficult operating environment.
Platinum producers in South Africa, home to the lion's shareof the precious metal, are being squeezed by weak prices,lacklustre demand and a tough political and labour environment.Strikes last year crippled the sector, and the industry is stillstruggling to recover, in the shadow of the constant threat oflabour unrest.
"Against this back-drop, Aquarius' stated focus onoperational improvements and treasury preservation will continueunabated into the new financial year," the company said.
Aquarius said cash costs at Kroondal fell 7 percent, whilecash costs at Mimosa, in Zimbabwe, remained constant.
Aquarius is due to publish full-year earnings on August 8.
