JOHANNESBURG (miningweekly.com) – JSE-and TSX-listed Anooraq Resources CEO Harold Motaung on Tuesday reported improved third-quarter operational performance at the Bokoni mine, which it owns together with Anglo American Platinum (Amplats).

The company implemented initiatives that have resulted in improved production and development volumes at Bokoni, and brought down unit costs quarter-on-quarter, despite wage inflation increases and other continuing cost pressures.

The Bokoni operations achieved an operating profit of C$1.1-million for the third quarter, largely attributable to increased production volumes and a higher platinum-group metal (PGM) basket price.

Tons milled for the quarter were 302 923 t, 20% higher than the third quarter of 2010. Increased production volumes yielded a total of 33 358 4E oz (platinum, palladium, rhodium and gold), a 19% improvement quarter-on-quarter and an 8% improvement from the corresponding period in 2010.

But Motaung said that the challenge was to build on the much-improved operational foundation developed during the past two quarters. “We must ensure that we continue to show positive trends on operational and financial metrics going forward.”

Anooraq incurred a basic and diluted loss a share of C$0.04 for the quarter ended September, which it attributed to increased debt financing charges.

Anooraq’s current debt structure is under review, pursuant to an intended refinancing, restructuring and recapitalisation transaction for Bokoni and Anooraq, currently being negotiated with Amplats.

Both companies are also finalising a revised life-of-mine plan for Bokoni, which includes an assessment of potential synergies between the mine and certain of Amplats’ operations.

Revenue for the quarter amounted to C$45.3-million representing a 26% increase quarter-on-quarter from June’s C$35.9-million, and a 31% increase when compared to the corresponding period in 2010.

Higher revenues resulted from increased production volumes, together with a 4% quarterly increase in the rand PGM basket price received, offsetting a 1% decrease in the dollar PGM basket price during the period.

Higher production volumes resulted in a 14% decrease in unit operating costs for the quarter to $1 375 a 4E oz.

Anooraq’s safety performance deteriorated quarter-on-quarter. Bokoni’s lost-time injury frequency rate deteriorated by 13% from the previous quarter to 1.66 per 200 000 hours worked.

Despite the safety trend improving by 33% when measured against the third quarter of 2010, the company said the decline in the current safety improvement trend was disappointing, given its "zero harm" target at Bokoni.

But, no fatalities were recorded for the quarter and in July; Bokoni achieved one-million fatality-free shifts.

The operation lost six operating shifts due to Section 54 safety stoppages.

Anooraq said that a key area of concern remained safety, while operating costs continued to come under pressure as a result of the significant increase in development, wage inflation increases effective from July and other inflationary pressures, such as increased utility charges.
 

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