Published: 29 April 2014

Local platinum producer Mimosa mine's output in the third quarter to March 31, 2014 declined 7 percent to 51 907 ounces from 58 586oz in the previous quarter.

The latest quarter output was, however, one percent up from 51 611oz posted in the prior comparable period.

Management attributed the depressed performance to a plant shutdown earlier in February, but maintained that the mine's platinum-group metals (PGMs) output "remained in line with guidance".

Cash costs at Mimosa remain flat for the nine months ended 31 March 2014 compared to the pcp-quarter-on-quarter costs increased 7 percent.

Aquarius also noted that surface stockpile at Mimosa increased and now stands at 165,000 tonnes.

Mimosa is 50 percent owned by South African platinum group Aquarius Platinum.

Commenting on the results Aquarius Platinim CEO Jean Nel said:

"During Q3 the company delivered a competent operational performance, Kroondal again delivered production ahead of guidance and Mimosa in line with guidance, while costs at both operations continued to be well maintained at annual increase rates below inflation (CPI)."

The group, which has not been directly impacted by the labour strikes sweeping the sector, produced 160 014 oz of PGMs in the first three months of the year, beating its quarterly guidance but narrowing output by 4 percent quarter-on-quarter.

The reduction in production for the quarter came off record levels of production experienced at the group's mines and also took into account "very low" production at Platinum Mile (Platmile), Aquarius' tailings retreatment plant, which received its feed ore from Anglo American Platinum's (Amplats') strike-hit operations.

In terms of PGM prices during the period under review, Aquarius reported that the average platinum price increased by 2.3 percent, while palladium increased by 2.9 percent and lesser traded rhodium increased by 11.8 percent quarter on quarter.

Platinum closed the quarter up 3.6 percent at $1,418 per ounce, while palladium rose by 8.3 percent to $776 per ounce and rhodium rose by 15.9 percent to $1,130 over the same period.

The increases however had limited effect on the group's two key operations.

"Whilst PGM prices increased during the quarter, it should be noted that the Dollar basket prices for both Kroondal and Mimosa have not increased substantially in nominal terms over the longer term," said Aquarius
- BH24

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