Firm metal prices on the international market and an uninterrupted power supply helped platinum miner Mimosa Investments, a unit of Aquarius Platinum, achieve a 37% growth in revenue to $81 million for the fourth quarter to June 30.
According to a fourth quarterly report issued by the Australian Securities Exchange-listed Aquarius Platinum on Monday, an energy deal between the mine and Zesa reached in March this year guaranteed Mimosa of electricity for the next five years.
Zesa is currently generating electricity way below the country’s demands and is failing to meet a daily demand of 2 200MW despite a subdued performance by the country’s key economic sectors.
Volumes processed by the platinum miner increased by 4% to 599 584 tonnes although Production decreased slightly by 0,14% to 539 446 tonnes.
Unit costs per Platinum Group Metals (PGM) ounce, according to the mine, decreased by 7%.
Mining cash costs decreased by 6% to $67 per tonne, and costs per PGM ounce by 7% to $740.
“The Mimosa mine continues to operate well. Discussions are ongoing with various regulatory bodies in relation to the indigenisation process as well as the increased mining fees and royalties.
“There have been no material developments since the date of the company’s last disclosure,” reads the quarterly report.
“Following the agreement between Mimosa and Zesa (the power utility company) reached in late March guaranteeing uninterrupted power supply of 20MW for the next five years, Mimosa has experienced no issues with electricity supply.
“Quarterly meetings are being held with Zesa senior management to discuss potential power disruptions and ways to improve reliability of power supply.”
Mimosa is the country’s second largest platinum company and produces 20% of the Impala and Aquarius output.
“The overall production figure for the fourth quarter was marginally better than that recorded in the prior period,” said Aquarius Platinum chief executive officer Stuart Murray in a statement accompanying the report. Our cash reserves of $180 million at 30 June provide us with sufficient funds to manage our operating mines over the next 12 months.”