JOHANNESBURG (miningweekly.com) – Platinum-group metals (PGM) producer Aquarius on Thursday posted a net loss of $288-million in what CEO Jean Nel described as an “exceptionally challenging” financial year, in which the miner had to close lossmaking mines, faced industrial action and implemented an owner-operator model at its Kroondal mine.

The ASX- and JSE-listed company, which operates in South Africa and Zimbabwe, announced a $226-million impairment charge, after writing off another $99-million in the second half of the financial year ended June 30, on top of the $127-million that was written off in the first six months. Of the $99-million, $86-million related to the Everest mine, following its closure last year.

Its headline loss, before exceptional charges, however, narrowed to $61-million, from $154-million in the previous financial year. Profitability at mine level also improved significantly to $70-million, from $29-million in 2012.

Group attributable production, excluding operations on care and maintenance, increased by 13% to 325 103
PGM ounces for the full year.

The closure of the high-cost Everest and Marikana mines helped to lower cash costs of sales by $158-million to $307-million. Average cash costs were $912/oz of platinum, palladium, rhodium and gold, a 19% year-on-year improvement.

Revenue declined 24% year-on-year to $371-million in the period under review. Measured on a PGM ounce basis, revenue dropped to $1 230/oz, from $1 310/oz in the previous year.

Nel said Aquarius had emerged from the difficult times as a “leaner and more focused business” and that its focus would now be on maintaining the positive momentum.

“As we expect the difficult operating conditions and low metal prices to continue into the new financial year, our focus will remain on improving operational performance and cash generation,” he stated.

London-based Liberum Capital, in a note to clients, commented that Aquarius’ financial performance was in line with expectations.