24th Oct 2014 08:38
LONDON (Alliance News) - Aquarius Platinum Ltd Friday said it swung to a pretax profit during its financial first quarter after reducing costs and increasing production.
The company swung to a USD6.3 million pretax profit in the quarter ended September 30 from a USD12.6 million loss in the fourth quarter of the previous financial year. The pretax profit comes from a reduction in cost of sales totalling USD56.5 million, compared to USD62.5 million in the immediately previous quarter, despite increased production. The company also gained USD6.3 million in shared profit from its joint ventures, compared to a USD1.3 million loss in the previous quarter.
The company saw a 3.3% increase in revenue to USD62 million in the quarter to September 30, compared to the USD60 million in the same quarter a year earlier.
"Total cost of sales of USD56 million was 10% lower compared to the previous corresponding period, despite a 3% increase in production," it said.
Production from the Kroondal mine in South Africa attributable to Aquarius increased by 6% to 56,124 ounces of platinum group metals from the immediately previous quarter. The total production of the mine increased to 112,248 ounces from 106,181 ounces in the previous quarter. Aquarius has a 50% interest alongside Anglo American Platinum Ltd, part of Anglo American PLC.
At the Kroondal mine, Aquarius said cash costs were cut by 4% to ZAR9,001 per ounce of platinum group metals, down 1% compared to a year earlier. The average price achieved from Kroondal increased 4% to ZAR13,720 per ounce of platinum group metals from the previous year and was up 12% from the previous quarter.
Production from the Mimosa mine in Zimbabwe attributable to Aquarius decreased by 5% to 28,900 ounces during the quarter compared to 30,409 ounces reported in the immediately previous quarter. Total production from the mine fell to 57,799 ounces of platinum group metals during the first quarter, compared to 60,818 ounces reported in the previous quarter. Mimosa is managed by Aquarius, which holds a 50% stake alongside Impala Platinum Holdings Ltd.
Cash costs at the Mimosa mine increased 1% from the previous year to USD815 per ounce of platinum group metals. The average price achieved from Mimosa also increased by 4% from the previous year to USD1,200 per ounce of platinum group metals, an 8% increase from the previous quarter.
"Kroondal delivered its seventh consecutive production quarter," said Aquarius Chief Executive Jean Nel. "Mimosa continues to deliver production ahead of guidance."
Aquarius shares were up 1.5% to 17.00 pence per share Friday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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