Aquarius Platinum boosts production 12% in Q4

The miner, which has been in the news significantly recently said output grew 7% on the preceding quarter, helped by a restart at its Everest mine

LONDON (Reuters) - 

Aquarius Platinum (AQP.L: Quote), the world's fourth-largest primary platinum producer, said its fourth-quarter output rose 12 percent amid higher precious metal prices.

Attributable production rose to 110,474 platinum group metal (PGM) ounces in the three months to end June from 98,258 ounces in the year-earlier period. Its output grew 7 percent from the preceding quarter helped by the restart of the Everest mine.

Panmure Gordon had expected the miner's fourth-quarter production to rise to 114,000 ounces. Aquarius had guided that production in the quarter would be in line with the second quarter's 112,359 ounces.

Two accidents at the Blue ridge mine in June resulted in the death of two miners and led the company to cut its output targets for the mine by a fifth.

It said Blue Ridge will undergo an extensive review to improve its long term mine plan.

The company said average PGM prices in dollars improved quarter-on-quarter with platinum up 5 percent, rhodium up 5 percent and palladium up 12 pct, against a backdrop of continued rand strength.

The company's current year has started badly with an accident at the Marikana mine, a 50:50 joint venture with Anglo American's (AAL.L:Quote) Anglo Platinum (AMSJ.J: Quote) unit, killing five miners.

It expects unit costs to rise 5 percent as a result of interim safety measures. The company (AQP.AX: Quote) (AQPJ.J: Quote) will release its full-year results on Aug. 12.

The London-listed shares have fallen 13 percent this month to close at 284.50 pence on Wednesday, valuing the company at 1.3 billion pounds ($2.0 billion).

(Reporting by Julie Crust; editing by James Davey)

($1=.6402 Pound)

© Thomson Reuters 2010 All rights reserved

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