JOHANNESBURG (Business Day) --"During the quarter the shine came off our basket of metals, with prices falling back to levels last seen in 2006 and earlier," CEO Stuart Murray said.
The company made a loss of $21.5 million or 8.2c per share for the quarter, compared with a profit of $49.5 million or 58.2c per share in the same quarter last year, because of a $71.9 million adjustment to the valuation of its pipeline stocks.
Management warned that since platinum prices had continued falling since the end of September , another adjustment would be required in the December quarter.
Imara SP Reid said last week it rated Aquarius Platinum as a "hold" because in the short term platinum group metals (PGM) prices would remain under pressure while motor manufacturers cut back excess stocks and investors unwound positions. It also seemed there was limited upside potential in platinum prices in the medium term unless all producers cut output, Imara said. But it recommended holding Aquarius's shares because of longer- term prospects of a price recovery.
Aquarius boosted total attributable production 17% year on year to 128366oz of PGMs from all operations except tailings re-treatment at CTRP, where output fell 14% to 1765oz. At CTRP, lower grades were partly offset by improved recoveries through the mill.
Cash costs per ounce of PGMs produced at the company's operations fell by between 2% and 27%, as higher output countered inflationary pressures. The exception was Everest platinum mine, where costs rose.
Aquarius said that since the June quarter, the cost of labour had risen 21%, chemicals 60%, explosives 45% and electricity 60%. But in the December quarter, unit costs were expected to drop as production would rise further and prices of diesel, steel and chemicals would ease. The company would also be assisted by currency movements.
Earlier this week Aquarius said it had concluded the last leg of its empowerment agreement with the Savannah Consortium which resulted in Savannah exchanging its 32.5% stake in the South African operating subsidiary for a 20% stake in the listed holding entity. Aquarius now owns 100% of Aquarius Platinum SA.
