Xstrata has confirmed today (4th August) that its Mototolo site enjoyed a 23 per cent year-on-year throughput increase in the first half of 2009.

The Anglo-Swiss miner revealed in its latest financial results that 203,000 tonnes of pgms were processed at the project, which is a joint venture with Anglo Platinum.

Furthermore, the company announced that ramping up to full ROM capacity of 200,000 tonnes per month is progressing well and should be completed by the end of the year.

Meanwhile, at its Elandsfontein mine, Xstrata saw total volumes mined fall by six per cent on the previous year, mainly as a result of heavy rainfall in the area during Q1 2009.

Despite steady state concentrate production being achieved in June 2008, volumes milled in the first half declined by 370,000 tonnes, mainly due to pre-commissioning ROM stockpile.

The firm also highlighted its switch from opencast to underground operations at the South African site, which will take place over the course of the next two years.

Following the sinking of the Western Decline System in the remainder of 2009, the Eastern Decline System will be developed and concentrator capacity will be doubled.

Xstrata expects to yield 250,000 tonnes per month by 2012 and steady state production of 500,000 tonnes by 2014, thus doubling pgm production to 300,000 oz per year.

The results also showed that the company's pgm division attained an operating profit of $6 million for the six-month period, representing a year-on-year decline of 96 per cent.

It noted that reduced global auto sales in H1 2009 were partly offset by strong auto and platinum jewellery demand in China, plus increased investment interest in the metal.

While Xstrata explained that it expects this trend to continue - particularly with seasonal auto production breaks in the northern hemisphere - it is still bullish about the future.

"The medium to long-term outlook for pgms remains positive and is expected to respond to improving global economic conditions and the continued tightening of emissions legislation globally, underpinning increased demand for catalytic converters," it commented.

Xstrata also revealed that exploration at its Madibeng and De Wildt projects has uncovered 69 intersections on the UG2 reef, with further drilling scheduled.

The De Wildt property is expected to offer lower grades but will help to extend the lifespan of the company's opencast operations and aid its underground developments.

Finally, the miner highlighted the northern section of the Nkwe Platinum and Genorah Resources project on the eastern limb of the Bushveld Complex.

Xstrata has an option for a 50 per cent stake in the venture, pending the completion of a bankable feasibility study in the second half of 2010.

Source:

Key Financial Results (04/08/09)

Ÿ Adfero Ltd