JOHANNESBURG (miningweekly.com) – Midtier platinum-miner Aquarius, which owns operations in South Africa and Zimbabwe increased its attributable production by 14% in the second quarter, while prices strengthened and costs dropped.

Aquarius produced 127 579 oz of platinum-group metals (PGMs) in the December quarter, which is a 14% improvement on its output in the same period of 2009, and a 3% increase on the September quarter production.

CEO Stuart Murray said that the business had produced much improved production results in the quarter, particularly the South African operations.

“Production was up strongly at Kroondal, our flagship asset, and both Kroondal and Marikana managed to reduce rand cash costs, despite ongoing cost pressures,” he said.

Murray added that Everest remained on schedule and continued to ramp up smoothly and that it was already in significantly positive cash margin territory.

Aquarius reopened the mine last year after it closed the site in late 2008, owing to a subsidence event.

He also reported that good progress was being made on the Blue Ridge redevelopment project.

However, bad ground was encountered across most sections of the Mimosa mine, in Zimbabwe, resulting in above budget use of roof support materials, slightly lower production and increased costs, exacerbated by a stronger rand.

“Nonetheless, Aquarius as a whole had a very good quarter from an operating perspective, further outperforming our creditable first quarter and placing the business on a strong footing ahead of the traditionally more challenging third-quarter and fourth-quarter periods,” said Murray.

The average PGMs dollar prices improved in the quarter with platinum up by 9%, above $1 650/oz, palladium up by 37%, above $560/oz, and rhodium up by 2%

The weighted average cost a PGMs ounce also improved by 13% in local currency terms, compared with the prior quarter.

Quarter-on-quarter PGMs production at Kroondal, which is a 50:50 joint venture (JV) with Anglo Platinum (AngloPlat), increased by 8% to 119 444 oz, of which 59 722 oz were attributable to Aquarius.

Kroondal’s revenue increased by 23% to R1,13-billion, owing to improved production and a higher basket price.

At Marikana, which is also a 50:50 JV with AngloPlat, PGMs production rose by 18% to 32 831 oz, with 16 315 oz attributable to Aquarius.

The mine’s revenue increased by 34% to R321-million, resulting from the improved production and basket price.

However, Shaft No 1 became uneconomical during the quarter and was being placed on care and maintenance. Development had been stopped and stoping would stop in June 2011.

The Everest mine’s output jumped 23% to 25 144 PGMs ounces, while revenue increased by 39% to R265-million.

Aquarius started the implementation of the Blue Ridge redevelopment plan , which was approved in September, during the second quarter. Stoping operations and the processing plant were stopped, and any run‐of‐mine material was stockpiled.
No revenue was generated during the quarter as a result of the temporary plant stoppage.

The plant has been temporarily recommissioned in January to ensure that it remained in a production‐ready state for when stoping operations would resume in the fourth quarter.

At the Mimosa platinum mine, which is jointly controlled by Aquarius and Impala Platinum, production declined by 13% to 47 023 PGMs ounces.

The mine’s revenue decreased by 10% to $69-million, owing to lower achieved sales volumes.

The Aquarius group remained on target to meet the production guidance for the 2011 financial year.
 

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.