Yukon does matter... As we await drill results and the PEA, yet another example has emerged telling us that when it comes to platinum, jurisdiction does matter:
Aquarius Platinum posts third-quarter loss as production drops
Aquarius Platinum hit by weaker prices and a drop in production on the back of poor ground conditions | STAFF REPORTER |
| Published: 2012/04/30 10:54:43 AM |
MINER Platinum posted a net loss for the third quarter, hit by weaker prices and a drop in production on the back of poor ground conditions, continuing safety stoppages and worse than usual absenteeism after the Christmas holidays.
The company posted a net loss of $9,4m for the quarter to the end of March, a drop of $34,7m compared to the same period last year.
The Department of Mineral Resources temporarily shuts mines where there have been fatal accidents or safety breaches. This has provoked an outcry from mining companies, which say the department is applying the safety-related stoppages with a heavy hand and shutting entire mines for trivial reasons sometimes.
Safety-related stoppages cost the South African platinum sector 300000 ounces last year in lost output — about 5% of global production.
But the department has said the industry needs a shake-up to cut deaths in the country's mines, the world's deepest and among its most dangerous.
Aquarius said production for the three months dropped by almost a fifth year on year to 97802 PGM ounces from 118887 ounces, hit not only by stoppages but by poor ground conditions and labour "go slows".
"These unnecessary operational and regulatory headwinds are occurring against a backdrop of a pricing environment that remains relentlessly tough, with unabated on-mine cost inflation, little fundamental demand recovery and continuing volatility in financial markets," Stuart Murray, CEO of Aquarius, said in a statement.
He also added, however, that there was a decline in "number and length" of "Section 54" stoppages, though it was too soon to call it a trend.
REUTERS