Mine closures significantly impact Aquarius’s revenue

“The year under review was exceptionally challenging for Aquarius – a year in which we had to close loss-making mines, face disruptive industrial action, implement an owner-operator model at Kroondal and revise the hanging wall support regime,” Jean Nel, the CEO of Aquarius Platinum said in a statement.

[DATA AQP:Aquarius Platinum]‘s revenue droppedd from 486 million dollars to 371 million dollars in the company’s preliminary full year results, ending 30 June 2013. This was as a result of lower production due to the closures of Everest and Marikana. Both mines were placed under care and maintenance in June 2012.

The platinum miner also reported a headline loss of 61 million dollars and a net loss of 288 million dollars after impairment losses.

Mine earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) however, increased by 145 per cent to 70 million dollars from 29 million in 2012. The second half of the company’s year, significantly better than the first, saw higher production and lower operating costs.

Group cash balance stood at 103 million dollars at full year close and no dividend was declared.

In a bumpy year for the platinum sector, Nel believes that conditions in the next financial year may still prove difficult but their attention will remain on sustainability and profitability.  

“We have learnt much during these difficult times and have emerged as a leaner and more focussed business, fully intent on continuing the positive momentum into the new year. As we expect the difficult operating conditions and low metal prices to continue in the new financial year, our focus will remain on improving operational performance and cash generation.”