[miningmx.com] — ONGOING downward adjustments of production forecasts at junior miner Platmin would be coming to an end, CEO Tom Dale said on Monday.
Reporting figures for the quarter to end-September, Platmin once again lowered its forecast for 2010, saying total metal output for the financial year (to end-December) would be between 60,000oz and 65,000oz.
This estimate is almost half the figure given in a previously published capital raising prospectus, in which the group predicted production of 120,000oz for the year. It is also substantially lower than a revised number of 80,000oz declared in August.
Still, Platmin reported an 18% production increase of 17,041oz at its open cast Pilanesberg Platinum Mine for the period under review.
“We’re moving ahead steadily,’ said Dale. “Some may say we’re moving slowly, but we’re moving steadily nonetheless.’
He said the group’s future improvement depends upon the implementation of the strategy of the new mine-based geological and planning team, appointed in the second quarter, as well as the improved availability and utilisation of the mining contractor’s fleet which will lead to increase waste volumes being stripped.
“The principal production challenge remaining is to strip adequate volumes of waste in the right areas and sequence in order to expose healthy volumes of the silicate reefs and the high grad UG2 reef which lies at the bottom of the reef succession.’
Dale said the group’s continued progress was evident in October’s production figures of 7,004oz for the month, adding that the mine was close to achieving two to three month’s ore on the run-of-mine stockpiles.
He estimated 2011 production at 150,000oz, as the mine nears the end of its developmental phase.
At the end of September, project expenditure for the development of Pilanesberg was almost complete, with outstanding expenditure to completion of the construction phase of only R99m. The amount would bring the total project expenditure to R3.86bn.
As is typical for a company in a build-up phase, Platmin recorded a net loss of $8.9m. From an accounting point of view, a non-cash unrealised foreign exchange loss of $17m increased the loss for the quarter to $26m.
ENVIRONMENTAL MANAGEMENT PLAN CHANGES
Dale said the group has applied to utilise its pit as a dam to capture, store and distribute large volumes of run-off water from rainfall in the Pilanesberg area to the local community.
According to the current environmental management plan, the pit would be backfilled once mining operations cease.
Dale said backfilling the pit would cost in excess of R1bn, with negligible sustainable benefits for the community.
“If we can use our pit to capture, store, purify and distribute water, we’ll add big value for shareholders as well as the community,’ he said.
Platmin’s JSE-listed shares closed 1.37% lower on Monday at R7.20.
