Business Reporter
Aquarius Platinum Limited’s Zimbabwean subsidiary, Mimosa Mine recorded a 15 percent decline in revenue for the first quarter to September 2015 driven by a two percent drop in production. Revenue went down to $53 million from $62 million recorded in the previous quarter while mining cash costs per PGM ounce remained unchanged quarter on quarter at $795.
Production for the period went down to 654,127 tonnes quarter on quarter and head grade was static at 3,67 grammes per tonne while recoveries remained static as well at 78,7 percent. Volumes processed during the period under review increased slightly by one percent to 671,507 tonnes and stockpiles at the end of the quarter decreased to 136,246 tonnes.
“PGM production increased by four percent to 62,410 PGM ounces quarter on quarter. Stay in business capital expenditure was $117 per PGM ounce for the quarter.
“Gross cash profit margin for the period decreased to four percent from 23 percent while unit cash cost per PGM ounce (before by product credits) were unchanged quarter on quarter,” said the platinum mining group. Mimosa invested $7,2 million during the quarter towards acquisition of mobile equipment, drill rigs and LHDs, conveyor belt extension and down dip development.
“With the exception of the tragic fatal accident reported on earlier, the Mimosa mine operated very well during the quarter, enjoying cordial industrial relations and meeting most of its production targets,” said Aquarius platinum. A total of 634,396 tonnes of ore were blasted during the quarter review, with blasted grades of 1,917 grammes per tonne and 0,157 percent Ni.
Aquarius Platinum said the blasted tonnage represents a 4,6 percent decrease compared to the previous quarter’s 664,821 tonnes. The platinum mining group said most teams mined through poor ground conditions during the quarter resulting in preparation constraining the ore generation cycle. Following the fatal accident, mining production slowed down to allow teams to re-focus after such a tragic event.
Hoisted tonnage for the quarter was at 654,127 tonnes compared to 684,030 tonnes achieved in the previous quarter representing a 7,3 percent decrease in performance.
Hoisting performance is expected to improve in line with the anticipated improvement in the amount of blasted ore. The milled tonnage for the first quarter at 671,507Mt was one percent above the 662,787Mt which was achieved in the previous quarter. At 79,2 percent platinum recovery was slightly less than the 79,4 percent achieved in the previous quarter with 4Es recovery remaining stable at 78,7 percent.
Aquarius Platinum said the process team continues to focus on initiatives to improve the recoveries further and PGMs production at 62,410 ounces was one percent above the 61,561 ounces achieved in the previous quarter and five percent above the budget of 59,096 ounces.
Mimosa PGM basket price for the period decreased 12 percent on average to $890 per PGM ounce quarter on quarter down 26 percent compared to the previous comparative period.
The Rand during the period weakened against the United States Dollar six percent on average. The consolidated result of the Aquarius Group was a net loss after tax of $12,3 million, down from a profit of $5 million in the previous comparative period. The lower result compared to the previous period was due to significantly lower PGM prices which were down 29 percent in United States Dollar terms.