Atlatsa reports confident quarterly results - CNBC Africa

Atlatsa reports confident quarterly results


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Atlatsa is a PGM production and exploration company with assets in South Africa. PHOTOS: Getty Images

“Despite a lacklustre Rand Platinum Group Metals (PGM) basket price, our second quarter performance was pleasing, supported by another quarterly increase in tonnes milled and PGM ounces produced,” Harold Motaung, CEO of Atlatsa, said in a statement.

“We continue to ramp-up the development of our two new shaft complexes, Brakfontein and Middelpunt Hill, which bodes well for our targeted growth of 10 per cent in production of PGM ounces for FY2014.”

[DATA ATL:Atlatsa] is a PGM production and exploration company, whose assets are located on the Bushveld Igneous Complex (BIC) of South Africa. BIC is the world’s largest platinum deposit and produces in excess of 75 per cent of global platinum supply.

Revenue for the company increased 21 per cent to for the period under review to 58.5 million dollars from 48.4 million dollars in 2013.

The quarter-on-quarter increase was due to the increased PGM basket price and production volumes, which were supported by the positive impact of a depreciating rand currency against the US dollar.

Cash operating costs also grew to 53 million dollars from 44.4 million dollars in the previous year. The growth was due to a due to a 16 per cent increase in total tonnes milled and Atlasa’s Klipfontein opencast mine being in operation for the full second quarter.

The basic and diluted loss improved by 50 per cent to 1 cent per share, compared to 2 cents per share in the second quarter of 2013.

Total tonnes milled increased 16 per cent to 420,274 tonnes for the period from 361,071 tonnes in 2013.

Atlatsa’s Bokoni mine increased its production with tonnes milled increasing by 16 per cent quarter on-quarter, and during the second quarter of 2014, the mine also produced 46,777 PGM ounces compared to 42,901 PGM ounces during the second quarter of 2013.

“The Bokoni Mine remains well positioned to achieve its 10 per cent year-on-year targeted growth rate on PGM ounces produced for 2014 financial year as a result of its accelerated development programme, improvements to opencast mining performance and mine efficiency improvement initiatives,” said Motaung.