JOHANNESBURG (miningweekly.com) – JSE-listed Aquarius Platinum has recorded a consolidated accounting net loss, after tax, of $76-million, or 5.12c a share, attributable to its shareholders for the half-year ended December 31, 2015.
The result included one-off noncash charges of $55-million, after tax, relating to the impairment of mining assets at its Mimosa and Platinum Mile (PlatMile) mines.
Earnings before interest, taxes, depreciation and amortisation (Ebitda) from controlled entities was $5-million in the half-year – a $13-million decrease from the six months ended December 31, 2014. The group’s decreased Ebitda was driven by depressed platinum group metal (PGM) prices, which were 29% lower year-on-year.
Production attributable to Aquarius increased by 4% to 182 911 oz. All three of the company’s mines, namely Kroondal, Mimosa and PlatMile, exceeded the previous year’s production levels in the six months to December, while maintaining control over operating costs.
The $78-million of revenue for the half year was down 31% from the comparable half-year, while the lower revenue reflected the embattled PGM price, with dollar prices dropping to an average of $825 compared with $1 165 in the previous comparable period, indicating a 29% decrease.
In rand terms, the PGM basket decreased by 13%, though it was cushioned to some extent by a weaker rand, which decreased 23% year-on-year – from R10.93 in the six months to December 31, 2014 to R13.43 in 2015. In Zimbabwe, PGM prices were substantially lower, recording a 26% year-on-year decrease to close at $856.
Meanwhile, the company’s total cash cost of production was $83-million, down $14-million despite a 4% increase in production at Kroondal. This was primarily owing to good cost control and the weakening rand, which resulted in lower dollar costs.
Significantly, Kroondal recorded its twelfth consecutive quarter of producing more than 105 000 oz, which was a record for the mine.
Meanwhile, the cost for every ounce of PGM in dollar terms decreased by 17% to $679 in South Africa, but increased by 2% in rand terms, owing to a 23% weakening in the rand/US dollar exchange rate. In Zimbabwe, the cash cost per PGM ounce was $784.
Aquarius noted that maintaining operating unit cost increases well within inflationary targets would continue to be a point of focus for the company, particularly in the ongoing low metal price environment.
The company added that exchange rate movements continued to have a volatile effect on earnings. During the half-year, Aquarius recorded net foreign exchange gains of $2.3-million, comprising gains on sales adjustments and revaluation of cash, intercompany loans and pipeline debtors.
Administration costs of $3.9-million were in line with the company’s guidance. These included $1.5-million transaction costs incurred to date on the proposed Sibanye Gold amalgamation with the group.