Exceeding their production guidance for the three months ended March 31, Aquarius Platinum’s Mimosa mine, in Zimbabwe, and Kroondal mine, in South Africa, delivered 57 391 oz and 107 089 oz of platinum-group metals (PGMs) respectively for the quarter, while containing cost increases below inflation, the company reported last week.

When combined with the 2 552 oz of PGMs produced at the company’s Platinum Mile tailings retreatment plant, located on Anglo Platinum's Rustenburg platinum mine, in the North West, overall production for the quarter increased to 167 032 oz, from 160 014 oz in the prior year’s comparable three months.

According to CEO Jean Nel, Kroondal delivered a record ninth consecutive quarter of PGM production in excess of 105 000 oz, with annualised cost increases well below inflation.

“[This is] a credible result that could have been much better had it not been for the 113 000 t of lost production – estimated at R73-million – owing to six Section 54 stoppages imposed on Kroondal by the Department of Mineral Resources in the quarter,” he said in a results statement.

In Zimbabwe, costs at Mimosa were maintained below $800/oz for the second consecutive quarter.

“The combined operational efforts at Kroondal and Mimosa contributed to the company’s increasing cash levels slightly to $174-million on an attributable basis, despite the dollar metal basket price reducing during the quarter by 4%,” Nel outlined.

The average PGM basket price achieved for production from Kroondal dipped 3% to $1 062/oz, while the price achieved for output from Mimosa narrowed 7% to $1 036/oz.

Meanwhile, during the quarter, work on fulfilling the conditions precedent to the sale of the idled Everest mine, in Mpumalanga, to Northam Platinum, also continued and Part A of the sale became unconditional on April 22, entitling Aquarius to receive the Part A proceeds of R400-million on June 26.

Nel added that a further critical work stream during the quarter entailed continued engage-ment with government by the three platinum producers in Zimbabwe to resolve the 15% royalty on the export of unrefined platinum, which was introduced in January.

“Although not yet resolved, Aquarius is satisfied with progress made to date and remains optimistic that the matter will be resolved in due course,” he commented.

Management’s focus in the short term would remain on maintaining safety, production and cost discipline – a view Aquarius noted had been informed by its assessment that at a macro level, there was little to suggest that the dollar metal prices would strengthen materially in the short term.

Looking to the balance sheet, Aquarius recorded on-mine earnings before interest, taxes, depreciation and amortisation of $4.4-million from controlled entities for the quarter – marginally higher, compared with the December 2014 quarter.

This was despite a 5% decrease in production in the March quarter, compared with the 174 953 oz produced in the three months to December 31, 2014, owing to a shorter production quarter on the back of seasonal holidays.

The group recorded a consolidated accounting net loss after tax of $8-million for the quarter.

Revenue, at $50.2-million, was 2% lower quarter-on-quarter owing to lower production and lower prices.