Aquarius flourishes in 'difficult' times

Johannesburg - Aquarius Platinum [JSE:AQP] said on Wednesday fourth-quarter production rose 22% boosted by improvements at its Kroondal mine but warned of a still "difficult and complex" environment for platinum producers.

The world's fourth-largest platinum producer, Aquarius said mine output attributable to the company rose to 86 830 ounces in the fourth quarter of its financial year from 71 230 ounces a year earlier.

Production attributable to Aquarius at its main operation at Kroondal, a venture with Anglo American Platinum [JSE:AMS] in the northwest province, rose 30%.

Aquarius, however, said operational improvements were more than offset by a fall in prices - the platinum group metal basket price dropped 8% in dollar terms in the quarter - and what it said remained a difficult operating environment.

Platinum producers in South Africa, home to the lion's share of the precious metal, are being squeezed by weak prices, lacklustre demand and a tough political and labour environment. Strikes last year crippled the sector, and the industry is still struggling to recover, in the shadow of the constant threat of labour unrest.

"Against this back-drop, Aquarius' stated focus on operational improvements and treasury preservation will continue unabated into the new financial year," the company said.

Aquarius said cash costs at Kroondal fell 7%, while cash costs at Mimosa, in Zimbabwe, remained constant.

Aquarius is due to publish full-year earnings on August 8.