25 July 2014

Zimbabwe: Mimosa Production Up Nine Percent

Mimosa's production increased by nine percent to 648 944 tonnes in the fourth quarter to June with revenue surging 26 percent to $79 million from $63 million quarter-on-quarter to headline Aquarius Platinum to a "credible" performance which was ahead of expectations, a senior official has said.

Volumes processed increased by 14 percent to 648 902 tonnes while stockpiles at the end of the quarter totalled approximately 165 102 tonnes.

"PGM production increased by 17 percent to 60,818 PGM ounces quarter-on-quarter, due to improved stability of the plant. A number of challenges were experienced in the prior quarter," Mr Jean Nel, Aquarius Platinum chief executive office said.

Mr Nel said mining cash costs increased by five percent to $85 per tonne, and costs per PGM ounce by two percent to $908 due to retrenchment costs. Cash costs before "one off retrenchment costs" decreased 10 percent to $803 per PGM ounce for the quarter.

"Mimosa delivered an equally credible production and cost performance despite implementing a significant voluntary retrenchment program during the quarter. This program is expected to contribute to lower costs at Mimosa going forward," Mr Nel said.

Mimosa is sitting on stockpiles at the end of the quarter of approximately 165 102 tonnes. Gross cash profit margin for the period increased from 26 percent to 30 percent.

Aquarius Platinum, Mimosa's parent company said attributable production from operating mines went up four percent quarter-on-quarter but was down one percent compared to previous corresponding period.

It said average PGM basket price increased three percent for the quarter - down one percent compared to previous corresponding period.

Copyright © 2014 The Herald. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 2,000 reports a day from more than 130 news organizations and over 200 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.