adminto December 31 2011 results, Aquarius said Mimosa performed strongly, producing platinum group metals (PGMs) with a high gold content at nameplate capacity.
Mimosa’s PGM production increased by 3 percent to 104 254 PGM ounces, while revenue increased by 1 percent to US$146 million due to higher metal prices achieved during the period. The company, however, expressed concern at the recent adjustment in mining fees, which it said could result in it losing at least US$6,8 million a year.
“Material increase in ground rental, mining licensing and mineral export licensing fees, among others, were confirmed in early February by the publication of a Government Gazette to that effect.
“This will result in an additional charge for Mimosa of approximately US$6,8 million each year,” said Aquarius, at the same time indicating that engagements were underway with the Government for another review.
“The relevant authorities are being engaged with a view to taking a holistic approach to the issue of royalties, taxes and other Government-related payments such that a streamlined payment structure is put in place,” said Aquarius.
The company also reported that Mimosa is now in compliance with the Reserve Bank of Zimbabwe’s recent directive to localise its offshore foreign currency accounts in Zimbabwe.
Meanwhile, Aquarius posted a loss for the period under review as overall production declined.
Aquarius chief executive officer Mr Stuart Murray attributed the negative result for the six months to December 31 to a foreign exchange loss of US$91 million arising from the revaluation of intercompany loans within the group, as well as to reduced PGMs production.
Profitability at mine level was down by 69 percent on mine earnings before interest, taxes, depreciation and amortisation, at US$29 million, compared with US$93 million in the previous corresponding period.
Poor market performance was further compounded by the group achieving 14 percent reduced production results for the period, producing only 215 453 oz, 35 519 oz less than in the same period in 2010.
The weighted average on-mine unit cash costs in South Africa rose by 38 percent in rand terms, largely owing to the miner’s lower production figures.
Online Reporter