Aquarius Platinum Output Falls; Takes More Action To Cut Costs
28 Janeiro 2016 - 9:38AM
Dow Jones News
By Alex MacDonald
LONDON--South Africa's Aquarius Platinum Ltd. (AQP.LN) Thursday
reported lower output last quarter compared with the previous three
months, and said it's taking more drastic action to cut costs
further in response to tumbling prices.
The miner, whose shareholders last week approved a takeover
offer from South Africa's Sibanye Gold Ltd. (SGL.JO), said it
produced 89,399 platinum group of metal ounces during its second
fiscal quarter, which ended Dec. 31, 2015. This is down 4% on the
quarter but up 0.5% on the year.
Output fell on a quarterly basis due to lower grades and a work
stoppage at Aquarius's Kroondal mine in South Africa. The fall more
than offset a marginal increase in production from its Mimosa mine
in Zimbabwe.
During the same period, Aquarius also reported a 7% drop in its
achieved average sales price to $802 an ounce, reflecting
relatively lackluster demand among jewelry and automakers and
excess platinum supply globally.
On a positive note, the company reduced its average cash cost at
both mines to $648 an ounce and $772 an ounce respectively during
the quarter, largely due to the weakening of the South African rand
against the U.S. dollar, which has made it cheaper to pay local
salaries and energy bills despite increases in both.
Aquarius said it's making progress towards satisfying the
conditions to complete Sibanye's $294 million cash purchase of the
platinum producer.
The deal would make Sibanye, South Africa's largest gold
producer by output, the world's fifth-largest platinum producer
with annual production of more than one million platinum equivalent
ounces.
-Write to Alex MacDonald at alex.macdonald@wsj.com
(END) Dow Jones Newswires
January 28, 2016 06:23 ET (11:23 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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