https://www.miningweekly.com

Aquarius lifts Q1 output; metals prices cut profits

27th October 2015

By: Natalie Greve

Creamer Media Contributing Editor Online

  

Font size: - +

JOHANNESBURG (miningweekly.com) – Triple-listed Aquarius Platinum has lifted attributable production for the quarter ended September 30 by 8% year-on-year to 93 513 oz of platinum-group metals (PGMs).

The group’s Kroondal mine lifted output 4% year-on-year to 58 418 oz in the first quarter of the 2016 financial year, while PlatMile produced 3 890 oz and joint venture (JV) entity Mimosa delivered 31 205 oz – an 8% year-on-year improvement.

Total cost of sales of $48-million was 15% lower year-on-year, owing to a 19% weakening in the rand/dollar exchange rate.

The price of platinum, meanwhile, fell 16% over the quarter, confirming the weakest quarterly performance for platinum since 2008, finishing at $903/oz, with an average price of $991/oz.

Palladium moved down 6% to $697/oz with an average price of $617/oz over the quarter.

“Macroeconomic concerns continued to impact the prices of precious metals, with the main factors impacting demand across the month, including Chinese macroeconomic growth concerns, the quantum of above-ground precious metal stocks and, post quarter-end, the Volkswagen scandal.

“Platinum fell to an eight-year low and palladium reached its lowest level since 2012 on speculation of oversupply amid slowing demand from China,” the group said in a production statement.  

Aquarius recorded on-mine earnings before interest, taxes, depreciation and amortisation of $2.5-million for the quarter under review, down
$12.3-million year-on-year.

Aquarius' share of profit from JV entities was a loss of $2-million – a $9-million reduction on the first quarter of the prior year, while the consolidated result of the group was a net loss after tax of $12.3-million, down from a profit of $5-million in the three months to September 2014.

“The lower result was owing to significantly lower PGM prices, which were down 29% in dollar terms and a negative pipeline sales adjustment of $6-million at Kroondal. 

“This impacted directly on revenue, which was down 35% to $40-million,” Aquarius noted.

The group closed the quarter with a cash balance of $175-million.

Commenting on the results, CEO Jean Nel said the quarter had been characterised by an “excellent” operating performance, with Kroondal delivering its eleventh consecutive production quarter above 105 000 oz.

“Despite this disciplined performance, profit and cash margins were lower in the quarter, following the dramatically lower metal prices, with the dollar PGM basket price 14% lower in the quarter and 29% lower year-on-year to levels last recorded in 2006.

“Given that we see no fundamental reason to be optimistic about PGM prices in the short term, management will continue to implement all possible cost-saving measures to preserve cash levels,” he assured shareholders.

Aquarius announced earlier this month that it and gold miner Sibanye Gold had concluded an implementation agreement that could see Sibanye acquire all the issued shares of Aquarius, subject to fulfilling a number of conditions precedent.

Meeting materials were currently being prepared and would be despatched to shareholders, with a shareholders meeting likely to be held by the end of January 2016.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

Werner South Africa Pumps & Equipment (PTY) LTD
Werner South Africa Pumps & Equipment (PTY) LTD

For over 30 years, Werner South Africa Pumps & Equipment (PTY) LTD has been designing, manufacturing, supplying and maintaining specialist...

VISIT SHOWROOM 
Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.146 0.187s - 106pq - 2rq
Subscribe Now