Southern Platinum has reported an increase in revenue and production as it released its first quarter 2005 results.

The independent producer, developer and explorer of pgms saw revenue reach $12.2 million, compared to $9.4 million in 2004, which it believes was boosted by the sale of pgms and base metals concentrate from its Messina Mine.

In addition, the company secured an acquisition deal with Lonmin, which has been approved by the board and a capital facility agreement to fund working requirements at Messina Platinum.

During the quarter ending March 31st 2005, the firm's production included 22,372 ounces of PGE and gold ounces and 195,117 reef tonnes were mined.

However, production and revenue during the period were negatively impacted by strike action and costs were up on the same quarter last year.

Southern Platinum now controls platinum assets including Johannesburg-listed Messina Platinum, the Dwaalkop joint venture and the Millennium Platinum project in South Africa.

It also has shares in the Paradise Platinum project in South Africa and the Monts de Cristal Platinum project in Gabon.