LONDON (Alliance News) - Aquarius Platinum Ltd Wednesday reported a wider loss in the first half of the year after booking a significant impairment charge on its South African assets and said it expects a difficult operating and metal price environment in the short term.
For the first half ended December 31, the company reported a USD57 million net loss after tax, which includes a USD26 million impairment charge on Aquarius' Blue Ridge and Sheba's Ridge assets, which are both in South Africa. In the first-half of 2013, the company reported a USD22 million loss.
The impairment charge follows from the company's decision to not sell the its indirect interests in Blue Ridge Platinum Pty Ltd and Sheba's Ridge Platinum Pty Ltd, it said in a statement.
Aquarius said its group mine earnings before interest, tax, depreciation and amortisation significantly rose to USD18 million from USD10 million a year earlier after increasing production and lowering costs, whilst its EBITDA from its share of profit from joint ventures totalled USD27 million.
At the end of 2014, the company reported a cash balance of USD164 million, with an additional USD8 million held in joint venture entities.
Production in the first half "was ahead of guidance," totalling 175,831 ounces of platinum group metals.
"We continue to expect a difficult operating and metal price environment in the short term
which directs our focus on operational efficiencies and responsible capital stewardship," said Chief Executive Jean Nel.
Aquarius shares were up 1.4% to 12.93 pence per share on Wednesday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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