JOHANNESBURG (miningweekly.com) – Dual-listed Atlatsa Resources on Monday posted a 14.6% drop in revenue, for the three months ended September, to $48.9-million quarter-on-quarter, owing to a 19.9% decrease in platinum group metals produced at its Bokoni mine, near Polokwane.
The company also saw a slight narrowing of losses, posting a 75% quarter-on-quarter improvement in its basic and diluted loss per share to a loss of 1c apiece.
The mine, which entered a restructuring and rightsizing plan earlier, saw its production drop from 55 491 oz in the third quarter of 2015 to 44 463 oz during the quarter under review, as Bokoni mine tonnes delivered to the concentrator plant during the third quarter decreased by 27.2% to 368 266 t, with tonnes milled decreasing by 24.6% to 363 320 t.
Meanwhile, Atlatsa noted that its total cash operating costs at the mine fell 19.3%, reflecting the decrease in tonnes milled and cost saving measures achieved by management.
The change in Bokoni mine’s cost profile is also attributable to a 24.1% decrease in labour costs; a 42.3% decrease in contract labour costs; and a 55.1% decrease in opencast tonnes delivered, as the opencast contractor is paid on a per-tonne-delivered basis. The mine’s cost profile also takes into account a 23.5% decrease in utility costs and a 9.6% increase in sundries.
“We are pleased to have completed the major phase of our restructure and right-sizing plan at Bokoni mine without any significant disruptions at our operations. The emphasis at the mine will [now] continue to focus on costs, efficiencies and overall operational improvements going forward, while seeking to maintain momentum in development at our two remaining Middelpunt Hill UG2 and Brakfontein Merensky underground development shafts, which remain in their ramp-up phases through to 2018 and 2020 respectively,” said CEO Harold Motaung.
Total capital expenditure for the three months under review was $8.9-million, compared with $8.3 million in the comparative period of 2015, comprising 50% sustaining capital and 50% project expansion capital associated with the two key ramp-up shaft operations.