Jan 29 (Reuters) - Miner Aquarius Platinum said quarterly production rose 10 percent, but the company addedthat cash generation for the precious platinum remained"constrained" at current spot prices.
The world's fourth largest platinum producer said outputrose to 78,987 ounces in the second quarter ended Dec. 31, from71,954 ounces last year.
Production attributable to Aquarius at its main operation -Kroondal located in the northwest province of South Africa -rose 18 percent.
South Africa is the source of between three-quarters andfour-fifths of the world's platinum, but its mining industry hasbeen hit by a wave of strikes in the last year, some of whichhave been accompanied by deadly violence.
Mining companies have struggled to maintain profitability ascosts rise, while prices remain hurt by reduced demand fromcarmakers, the leading consumers of the white metal used incatalytic converters.
"It is against this backdrop that management continues tofocus on cash preservation and operational stability andimprovements," Aquarius said in a statement.
Aquarius said price improvements for platinum and a weakSouth African rand is expected to substantially reduce cashconsumption.
Cash costs at Kroondal fell 7 percent in the second quarter.
Last year, Aquarius Platinum suspended production at two ofits mines in South Africa - Marikana and Everest - citing lowplatinum prices.
Shares in the company closed at 68.25 pence on Monday on theLondon Stock Exchange. They have gained more than two-thirds invalue since the end of the first quarter in September.
Its Australia-listed shares closed down 0.5 percent toA$1.045 on Tuesday.
