28th Jan 2015 09:56
LONDON (Alliance News) - Aquarius Platinum Ltd Wednesday said overall production attributable to the company increased during the fourth quarter, complimented by falling cash costs as it said it is looking at a number of potential growth projects.
During the fourth quarter ended December 31, total production attributable to Aquarius was 88,974 platinum group metal ounces, up 2% from the 86,855 ounces produced in the previous quarter, and a 5% rise from the 84,528 ounces produced in the comparable period a year earlier.
Aquarius said it was the "highest attributable quarterly production for a quarter from Kroondal, Mimosa and Plat Mile combined."
Net production attributable to Aquarius fell by 1% quarter on quarter from the Kroondal mine, to 55,557 ounces of platinum group metals from 56,124 ounces.
Net production in the fourth quarter from the Mimosa mine increased by 5% to 30,421 ounces from 28,900 ounces in the third quarter, whilst net production from the Platinum Mile mine rose by 64% to 2,996 ounces from 1,831 ounces.
To compliment the increase in production, cash costs also fell at the two largest mines during the fourth quarter. Cash costs at Kroondal fell by 1% quarter on quarter to ZAR8,925 per ounce whilst cash costs at Mimosa fell by 4% to USD781 per ounce.
"The increased production, coupled with excellent cost management enabled Aquarius to generate positive operational cash flows despite a sharp drop in platinum group metal prices which fell by 10% in dollar terms and 8% in rand terms," said Chief Executive Jean Nel.
At the end of the quarter, Aquarius reported a cash balance of USD164 million.
"Aquarius' view remains that, attractive longer-term fundamentals notwithstanding, a material increase in platinum group metal prices is unlikely in the short term given muted demand growth and continued supply of metal from unprofitable mining operations in South Africa," added Nel.
Aquarius advised that a number of incremental growth projects had been identified which are in different phases of assessment.
Aquarius shares were up 3.2% to 14.70 pence per share on Wednesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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