Mimosa in record Q4 production, revenue falls on weak prices

Mimosa in record Q4 production, revenue falls on weak prices

HARARE, July 28 (The Source) – Bermuda-headquartered platinum miner, Aquarius Platinum said production at its 50 percent owned Zimbabwe unit, Mimosa Mine, reached a record high of 60,035 ounces for platinum group metals (4E) in the fourth quarter to June, but revenue fell two percent to $62 million as metal prices continue to fall.

In a production update, Aquarius said Mimosa’s PGM output increased by five percent to 60,035 oz quarter-on-quarter after ore mined rose nine percent to 666,170 tonnes. Head grade was one percent higher at 3.67 grammes per tonne.

But revenue fell to $62 million from $64m in the previous quarter as the PGM basket price decreased three percent on average to $1,010 per PGM ounce quarter-on-quarter. The mine’s total capital expenditure for the quarter was $7,2 million.

PGM metals are platinum, palladium, Rhodium and gold.

Mining cash costs were four percent lower at $72 per tonne while costs per PGM ounce decreased slightly to $797. Aquarius said gross cash profit margin for the period increased from 21 percent to 23 percent.

For the full year to June, 4E production was higher at 236,067oz from 221,359oz in the previous year. Platinum output for the year stood at 117,355oz, compared to 110,158oz.   For palladium, output increased to 92,705oz from 87,037oz.

Quarter on quarter, platinum output was higher at 29,770oz from 28,443oz in the quarter to March. Output for palladium was also higher at 24,004oz from 22,422oz.

Aquarius noted that precious metals suffered a weak end to the quarter due to a slower than expected Chinese consumption, with the price of palladium decreasing to almost a two-year low, ending the quarter eight percent lower at $675 per ounce.

The price of platinum also fell six percent to $1,080 in the quarter and continued to weaken post quarter end.

South Africa’s Implala Platinum holds the other 50 percent shareholding in the mine.