[miningmx.com] – ATLATSA Resources came through interruptions from safety inspections and heavy rain in the first quarter of its 2014 financial year to post a 19% improvement in platinum group metal (PGM) production.
Safety related stoppages resulted in 14 work shifts lost at Bokoni Platinum Mine, Atlatsa’s platinum mine in the northern part of the Bushveld Complex. Yet PGM output totalled 42,820 ounces for the quarter against 36,043 oz in the first quarter of 2013.
The higher production is another signal that Atlatsa’s Bokoni Mines is an operation in recovery in which a new operational plan has been launched. It centres on the development of two new shafts – Brakfontein Merensky and Middelpunt Hill UG2 – scheduled to achieve nameplate capacity by 2017, and supplementing production with ore from an short-term open cast mine. Development at Bokoni increased 37% during the first quarter.
At the same time, Bokoni will start to close its deeper, more expensive shafts in an overhaul that also extended to the group’s balance sheet. Last year, following talks with partner, Anglo American Platinum, debt was cut 75% to $150m.
From a financial perspective, Atlatsa produced a first quarter 1 cent per share earnings loss equalling its performance at the same time in the 2013 financial year. Happily, however, the increase in production, rand weakness boosted revenues whilst the platinum price was also higher.
The outcome was an improved cash margin, a doubling in the cash operating profit, and the expectation of further gains in the current quarter leading towards 10% growth in PGM ounces, especially as the troublesome first quarter is behind the company, Atlatsa Resources said.
“Management anticipates that the benefits associated with an accelerated development programme, improvements to open cast mining performance and efficiency improvement initiatives, should translate into overall improved results from Q2 2014 onwards,” Atlatsa said in an announcement to the Johannesburg Stock Exchange.
The company also said it continued to study its strategic options in respect to mineral rights in the Northern Limb or Platreef property, predominantly joint ventures with Amplats and one – Rietfontein – with Ivanhoe Mines.
The company would make an announcement about “these opportunities” once it had taken “a definitive strategic decision”, it said.
“The Northern limb opportunities are four large exploration blocks which we have on standalone basis,” said Joel Kesler, chief commercial officer for Atlatsa Resources. “We are considering joint venture opportunities, and other opportunities, but nothing has been firmed up where can make an announcement,” he said.
