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Business Reporter
Mimosa Platinum Mine’s production for the third quarter was down eight percent to 610 929 tonnes due to lower operating days in the quarter of 82 days compared to 88 days worked in the second quarter.

In a statement yesterday parent Aquarius Platinum said the production decline was due to four public holidays in the quarter under review as well as a shorter February month and planned maintenance shut downs.

For the period under review the group’s volumes processed deteriorated seven percent to 621 586 tonnes.

PGM production declined six percent to 57 391 PGM ounces in line with reduced milled volumes while stockpile at the end of the quarter was approximately 170 600 tonnes.

The mining group said for the period, head grade improved slightly to 3,65 grammes per tonne as recoveries improved as well to 78,7 percent from 78,3 percent in the second quarter.

Aquarius Platinum chief executive Mr Jean Nel said despite the challenging operating and macro environment, the company recorded another credible operating result and made progress on a number of strategic initiatives during the quarter.

“Most importantly both Kroondal and Mimosa delivered production ahead of guidance and managed to contain annualised cost increases well below inflation, while continuing to improve its longer-term safety record,” he said.

Operating cash costs per ounce unit per PGM ounce before by-product credits) was 2 percent higher compared to the previous quarter mainly as a result of decreased production.

Mining cash costs per tonne increased to $75 in line with reduced milled tonnage, as stay-in-business capital expenditure was $119 per PGM ounce for the quarter.

The mining company’s unit costs of $799 per PGM ounce for the nine months to March 31 2015 was eight percent lower compared to the previous comparative period in line with efficiency initiatives introduced during the financial year.

Total capital expenditure for the second quarter amounted to $7 million and the expenditure was mainly incurred on mobile equipment, drill rigs and LHD, conveyor belt extension and the down dip development.

On the 15 percent export levy on un-beneficiated PGMs, Aquarius Platinum said discussions with the authorities continued during the quarter to find a way forward with regards to the issue.

“The company has not yet made provision for this levy in the financials and if the levy was to be implemented, it would have a significant impact on the financial position of the company.

The tax liability relating to the non-deductibility of royalties as at March 2015 on a 100 percent basis was $7,7 million compared to $4,2 million of the previous year,” said the group.