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Aquarius delivers Q4 production record despite ‘headwinds’, weak prices

7th August 2015

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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Despite facing significant headwinds and a quarter that ended with weak commodity prices, both of platinum producer Aquarius Platinum’s operating mines achieved record fourth-quarter production levels, as well as lower costs.

The JSE-listed group’s overall attributable production from its operating Kroondal and Mimosa mines edged up 5% quarter-on-quarter and 6% year-on-year during the three months to June 30.

Kroondal, in South Africa, and Mimosa, in Zimbabwe, achieved quarter-on-quarter platinum group metal (PGM) production increases to 112 024 oz – Kroondal’s tenth consecutive quarter above 105 000 oz – and 60 035 oz respectively.

Review

Kroondal’s unit costs continued on a downward trend, registering a 4% quarter-on-quarter and a 2% year-on-year decline to $763/oz for the quarter under review, owing to improved volumes, Aquarius CEO Jean Nel commented.

Mining cash costs at Mimosa remained unchanged at around $797/oz.

However, the quarter ended on a weak pricing platform, with the average dollar PGMs basket price decreasing 4% during the quarter – equating to a 16% decline, compared with the corresponding quarter the year before.

Kroondal’s PGMs basket price decreased 3% quarter-on-quarter and 5% year-on-year to average $1 005/oz, while Mimosa’s PGMs basket price fell 3% quarter-on-quarter and 13% year-on-year to average around $1 010/oz.

“From a macro perspective, the lower metal prices, which prevailed during the period and especially post-quarter end, will require not only an increased focus on safety, cost and production discipline, but also a focused assessment of the viability of each shaft at each operating mine to ensure the sustainability of the business in a low metal price environment,” Nel said.

 

Edited by Martin Zhuwakinyu
Creamer Media Magazine Managing Editor

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