[miningmx.com] — PLATMIN’s said on Friday its target of achieving breakeven before the end of the year at its Pilanesberg platinum mine was not a sure thing, as the group’s struggles to attain adequate waste stripping volumes continued.
Reporting quarterly figures to end-March, Platmin said it produced 19,148oz of 4E (3 PGM plus gold) during the period; still some way off the 12,000oz per month needed to break even.
“The build-up profile remains materially unchanged with monthly production forecast to reach 12,000 4E by end 2011, provided the planned volumes of waste stripping can be achieved,’ read a company statement accompanying the results.
Platmin’s inability to get to grips with the Pilanesberg pit was illustrated by the virtually flat production growth figures of the past three quarters, with the latest quarter’s production only 12% higher than end-September’s total of 17,041oz.
The group had originally expected to produce 120,000oz during 2011, but had to settle for 60,076oz.
Production at full operating capacity is expected to be 20,000oz of 4E per month, projected to be achieved in 2012.
The biggest thorn in the flesh for Platmin remained its inability to strip adequate volumes of waste in the right areas. CEO Tom Dale said, however, Platmin managed improved control of the sequencing of waste stripping, which helped generate modest reef stockpiles.
“PPM assumed joint managerial responsibility for the plant with the appointed contractor during February 2011 and volumes milled started to improve during the second half of April,’ said the company.
The financial loss for the period amounted to $34.8m, 4 US cents per share. However, the company said its balance sheet remained strong following the conversion of all of its $135m worth of debentures into shares, with cash holdings of $177m and no material debt.
SEDIBELO WEST
Platmin said optimisation and mine planning studies had begun at the Sedibelo West property which it acquired in March from the Bakgatla Ba Kgafela Tribe. Sedibelo West is contiguous with and down-dip of the eastern boundary of the PPM mine.
It was still waiting on approval from the department of mineral resources (DMR) for Sedibeng West to be incorporated into PPM’s mining rights.
As for Platmin’s intention to amend the pit’s environmental management plant to convert the pit into a water storage facility, the company said the application has been prepared and would be lodged with the DMR this month.
