LONDON (Alliance News) - Aquarius Platinum Ltd Tuesday said revenue fell slightly in the third quarter due to lower production and lower commodity prices but said full-year production is still ahead of its guidance.
The platinum miner said revenue in the third quarter ended March 31 fell by 2% quarter-on-quarter to USD50 million from USD51 million due to lower production levels, but revenue also was down 17% from USD60.0 million a year earlier.
Earnings before interest, tax, depreciation and amortisation increased quarter-on-quarter to USD4.4 million from USD3.6 million, but fell by USD6.7 million year-on-year, Aquarius said, partially due to a USD6 million negative sales adjustments caused by lower commodity prices.
Attributable quarterly production totalled 84,792 platinum group metal ounces, down 5% quarter on quarter due to a "shorter production quarter", but was 6% higher year on year. Aquarius said production for the full year is still "ahead of guidance".
"Most importantly both Kroondal and Mimosa delivered production ahead of guidance and managed to contain annualised cost increases well below inflation, whilst continuing to improve its longer term safety record," said Jean Nel, chief executive.
At the Kroondal mine, cash costs increased 7% quarter on quarter to USD815 per ounce due to lower levels of production and a stock pile reduction over Christmas. For the nine month period ended March 31, cash costs at Kroondal are 1% higher than a year earlier.
Cash costs at Mimosa mine were up 2% quarter-on-quarter to USD799 per ounce, but was down 8% in the nine month period compared to a year earlier. Cash costs at the Platinum Mile mine was USD795 per ounce in the quarter.
Average platinum group metal prices fell 4% quarter-on-quarter and were down 9% year-on-year during the third quarter, it said. At Kroondal, prices fell to USD1,062 per ounce with prices at Mimosa and the Platinum Mile mine falling to USD1,036 and 1,039 per ounce, respectively.
"Management's focus in the short term will remain consistently on maintaining safety, production and cost discipline, a view informed by our assessment that at a macro level there is little suggesting that Dollar metal prices may strengthen materially in the short term," said Aquarius.
At the end of March, Aquarius reported a cash balance of USD161 million.
Aquarius shares were up 0.9% to 9.00 pence per share on Tuesday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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