Aquarius Platinum saw its pgm production levels fall by almost 25 per cent in the first quarter of the 2009-2010 financial year, it emerged today (27th October).

The world's fourth largest platinum producer announced that output for the three months was 96,500 oz, compared to 128,366 oz for the equivalent period in 2008.

According to the firm, the figure was compromised by an unprotected strike at its Marikana and Kroondal sites in South Africa, which cost about 16,000 oz of production.

The industrial action was carried out by employees of underground mining contractor Murray & Roberts Cementation and resulted in the dismissal of 3,900 of those involved.

In addition, Aquarius noted that output was impacted by the closure of the Everest mine following a subsidence incident during the night shift on 7th December 2008.

Attributable production at Kroondal slumped to 44,404 oz from 55,860 oz in the previous quarter, while output at Marikana was down from 18,877 oz to 15,611 oz.

"While production and hence costs were negatively affected by unprotected industrial action at the Kroondal and Marikana mines, the underlying performance of these operations remained stable," commented CEO Stuart Murray.

Mr Murray also noted that the Firstplats transaction is now effective, meaning the life-of-mine at Kroondal and Marikana has been extended by at least one and two years respectively.

Turning to Everest - where no production stats have been compiled since the accident - he revealed that mining will recommence "only when market circumstances are more favourable".

However, there was better news at the company's Mimosa facility, where pgm production increased from 23,437 oz to 25,414 oz on a quarterly basis.

Output at CTRP was also up from 845 oz to 870 oz, while a rise from 2,240 oz to 2,966 oz in the three months to September 2009 was recorded at Platinum Mile.

The quarter was also successful for Aquarius as it managed to complete the acquisition of Ridge Mining, with initial production at the flagship Blue Ridge mine hitting 7,235 oz.

"Aquarius remains cash positive, with a strong balance sheet and $195 million in cash," added Mr Murray.

"We will continue to seek further growth opportunities and are well-positioned to do so in an industry that is cash-strapped and under pressure."

Aquarius Platinum was originally founded in 1920 as Mount Monger Gold Mining, with the express purpose of exploiting the Kalgoorlie goldfield in Australia.

Sources:

Aquarius Platinum: First Quarter 2010 Financial & Production Results (27/10/09)

Aquarius Platinum warns on forex, swings to profit (27/10/09)

Aquarius posts $9,5m profit, output drops sharply (27/10/09)

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