LONDON (Alliance News) - Aquarius Platinum Ltd Tuesday said production from both its main operations in Africa reached "record levels" in the fourth quarter, but the company said platinum group metal prices also fell in the period.
The platinum group metals producer operating in Zimbabwe and South Africa said attributable production in the fourth quarter ended June 30 totalled 88,803 ounces, up 5% from 84,792 ounces in the third quarter and up 6% from the 83,499 ounces produced a year earlier.
Its two main producing assets, Mimosa in Zimbabwe and Kroondal in South Africa, both achieved "record level" production in the fourth quarter, it said.
"The fourth quarter was characterised by a particularly good performance from both Aquarius operating mines," said Chief Executive Jean Nel.
Aquarius said both operations experienced a 5% quarter-on-quarter fall in platinum group metal prices, whilst cash costs at Kroondal fell 4% but remained flat at Mimosa.
"From a macro perspective, the lower metal prices which prevailed during the period and especially post quarter end will not only require an increased focus on safety, cost and production discipline, an approach which Aquarius will remain committed to, but also a focussed assessment of the viability of each shaft at each operating mine to ensure the sustainability of the business in a low metal price environment," said Nel.
Aquarius said it received the USD33 million from the sale of the Everest mine in South Africa. The mine was sold in two parts to Northam Platinum Ltd, and the money received signals the completion of the first part of the deal which was for the sale of the concentrator and mining assets.
The second part of the sale to Northam is ZAR50 million for the mining rights associated with the mine; this is subject to consent from the Minister of Mineral Resources. An application for this consent has been submitted.
Aquarius shares were up 3.6% to 6.39 pence per share on Tuesday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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