[miningmx.com] –MIMOSA Platinum – the Zimbabwe platinum producer which is a 50/50 joint venture between Aquarius Platinum (Aquarius) and Impala Platinum (Implats) – was the stand-out performer in the September quarter for Aquarius.
The Aquarius September quarterly report notes that Mimosa could be listed on the Zimbabwe Stock Exchange as part of the process agreed between Aquarius and Implats to meet Zimbabwe’s indigenisation requirements.
Aquarius CEO Stuart Murray said: “Since the submission of the company’s indigenisation plans and proposals as required by the Indigenisation Act, no formal response has been received from the Ministry of Youth Development, Indigenisation and Economic Empowerment.
“However, the board of Mimosa has always been supportive of the principle of localising a part of its business and a decision in principle to do this was made prior to the promulgation of the Indigenisation and Economic Empowerment Act.
“Further details will be made available once relevant regulatory approvals have been granted.’
Mimosa upped its underground production by 16% during the quarter to 652,734 tonnes (June quarter – 563,976t) and increased platinum group metal (pgm) production by 9% to 54,133 ounces (49,709oz) – an all-time record.
The mine dropped its cash costs by 7% to $595 per pgm ounce produced and, net of byproduct revenues, cash costs were $245 per pgm ounce produced ($265/oz).
The end result was that Mimosa increased its cash margin to 57% (54%) despite a 3% drop to $1,144/oz in the average achieved pgm basket price for the quarter.
Overall, Aquarius increased total group attributable production by 12% to 123,392oz, and made a net profit after tax for the quarter of $42.4m.
Murray said the Blue Ridge mine was now on care and maintenance in preparation for the redevelopment plan to improve the underground workings.
He added that the design of the new hanging wall support systems and mining layouts for Aquarius’ three operating SA mines had been completed.
This followed the accident at Marikana in July, in which five mineworkers were killed in a severe fall of ground.
Murray said: “The company is in a position to confirm that no material impact on ore extraction percentages will occur at any of these mines, although once-off capital costs and modest increases in operating costs will be incurred.
“Several initiatives have been implemented to reduce these costs.’
The writer owns shares in Aquarius Platinum.
