Johannesburg — PRODUCTION at platinum miner Aquarius improved 16% in the second quarter to December, boosted by a recovery in prices as well as improved performance across most of its operations.
The company reported yesterday that attributable production of platinum group metals in the three months to December rose to 112359oz.
CEO Stuart Murray said a rise in platinum group metal prices and improved operational performance had also seen cash margins rise across the group.
"Overall, the second quarter has been a very satisfactory period for Aquarius.
"Operations at Kroondal and Marikana have stabilised following the unprotected industrial action of the previous quarter, while the recently acquired Ridge operation has delivered good progress under our management team," he said.
The re-establishment of the Everest Mine - which was temporarily shut down last year after a geological fault - was on schedule and within budget, Murray said.
Production was expected to resume by the first quarter of the next financial year. Aquarius is spending about R250m on rehabilitating the Everest mine before it can resume operations.
Mimosa and Platinum Mile mines had also performed well.
Murray said dollar prices for platinum group metals improved over the quarter, which continued to reflect an improving fundamental market demand.
Platinum was up 13% to an average of 1390/oz in the quarter, rhodium 37% higher to an average 2195/oz and palladium 28% more expensive at 348/oz.
Platinum traded at a quarterly high of 1494/oz on December 3 and has traded above 1500 since the start of this year.
Murray said despite a strong rand during the quarter, Aquarius remained cash positive, with a strong balance sheet.
"While the rand- dollar exchange rate continues to undermine some of the gains achieved from operational performance and metal pricing, the market outlook remains positive for Aquarius in the second half.
"The successful placing of the 300m convertible bond is well timed, allowing for the settlement of the higher-cost R650m bonds, further strengthening the balance sheet," he said.
AQUARIUS
Annual 2009 2008
Rev (Rm)310,5 919
Pretax (Rm) (97,4) 537
Net Income (Rm)45,7 236,5
EPS (c)(13,3 )91,98
Dividend -
