Mimosa output up 6 percent

Mimosa Platinum mine’s PGM (4E) production for the March 2016 quarter increased to 30.483koz compared to 28.676koz in the same period in 2015.

This resulted in a 6 percent year-on-year growth which helped parent group Aquarius achieve a 7 percent increase in 4E PGM production to 90.8koz year on year.

Mimosa is Zimbabwe’s third platinum mine, in addition to the South African controlled Zimplats and Unki.

Aquarius was this year acquired by Sibanye Gold, the biggest producer of South African bullion.

In a Q1 update, Sibanye Gold said despite currency volatility, Mimosa reported unit cash costs at $758/oz, a 5 percent year-on year decline from $1 036 in 2015 as well as a negative cash margin of 5 percent for the period.

At group, level, Sibanye Gold said Aquarius’ solid operational performance for the quarter was a result record quarterly production from Kroondal and Mimosa.

The group said the quarterly production result is notable given the seasonal disruptions that generally occur during the first quarter of a calendar year.

Costs were also well controlled during the quarter, comparing favourably to prevailing South African inflation.

According to the World Platinum Investment Council, Zimbabwe’s output is expected to grow on the completion of an expansion project at Zimplats from 385koz recorded in 2015.

South African supply is predicted to fall by 2 percent over the year due to disruptions related to wage negotiations and safety stoppages.- The  Source

(27 VIEWS)