Platmin focus on boosting Q3 perfomance

[] — PLATMIN, the platinum mining company, said it was focusing on long-term production and expected improved results in the second half of the year.

The company reported a loss per share of US$5 cents for the six months to end June from a loss of seven US cents for the six months ended May 31 2009.

Platmin aimed to produce up to 12 000 ounces per month equating to 144 000 ounces on an annualized basis by December this year and a total of up to 80 000 ounces for the 2010 financial year.

“This is a reduction from our recently published capital raising prospectus in which we forecast a total of 120,000 ounces dispatched and sold for the current year,” the company said.

Unseasonal high rainfall between April and May had hindered Platmin’s operational performance during the quarter under review as working conditions became dangerous, it said. The rebuilding of the pinion foundation at the Merensky mill during June had also slowed production down.

Platmin CEO Tom Dale said: “We strengthened the team further during the second quarter, specifically in mineral resource management and planning.”

During the quarter waste stripped increased to 4 012 655 bulk cubic meters and ore delivered to the run of mine pads was 551 673 tonnes, while ore milled was 608 182 tonnes.

A total of 10 548 ounces were dispatched and sold during the quarter, yielding US$14.998m in revenue. This was offset against pre-production operating costs of US$36.641m.

For the six-month period ended June 30 a total of 25 072 ounces were dispatched and sold, yielding US$33.501m in revenue.

As at June 30, 2010, total project expenditure for the construction and development of the Pilanesberg Platinum Mine mining complex, including capitalized pre-production costs and plant capital expenditure, offset by revenue from metal sales during the pre-production phase, amounted to US$456.432m

Further outstanding mine development expenditure of US$14.988m, will bring the total project expenditure to US$471.420m.