MIMOSA Mine Platinum Group Metals (PGM) production for the fourth quarter ending June increased by 11% to 57 168 ounces (oz) despite weakening prices, the company has announced.
Report by Business Reporter
Revenue increased slightly to $70 million due to higher metal sales volumes, while mining cash costs were constant at $80 per tonne and costs per PGM ounce were also static at $871.
During the period under review, the company said, PGM Rand Basket price experienced significant volatility, firstly getting dragged down to R11 000 per oz by the fall in metal prices, then spiking back up to R13 000 per oz on a severely weakening rand, only to be dragged back down to R11 000 per oz by the end of the quarter.
The company said cash margin for the period decreased from 34% to 25% due to primarily due to lower metal pricesMimosa is a unit of Australia Stock Exchange-listed Aquarius Platinum.
“Auto catalyst platinum demand remains challenging with lowest vehicle sales in May for 20 years. Jewellery demand will likely have increased with the recent USD metal price drop, but more so for gold than platinum,” reads the group’s quarterly report.
“The average platinum price decreased by 10%, while palladium decreased by 4% and rhodium decreased by 6% quarter-on-quarter.
“Gold fell by 13% on average. Platinum closed the quarter down 16,3% at $1 337 per ounce, while palladium fell by 15,8% to $659 per ounce and rhodium fell by 18,7% to $1 000 per ounce. Gold fell 23,5% to $1 224 per ounce.”
The company’s total capital expenditure for the fourth quarter amounted to $7,47 million. Expenditure, the company said, was incurred mainly on mobile equipment, drill rigs and LHDs; the conveyor belt extension; down dip development; housing project; and Phase VI prefeasibility studies.
Meanwhile, Mimosa is engaging local authorities over the company’s indigenisation and empowerment plan amid indications that negotiations could soon be finalised.
Under the country’s indigenisation and empowerment laws, foreign-owned companies operating in the country should sell 51% stakes to locals.