Aquarius Platinum has announced that that production is expected to be about 111,534 oz of platinum group metals in the three months ending March 31st.

Net profits were reported to be between $70 million and $75 million in a quarter described by the firm as "operationally challenging but unusually profitable".

Significant power shortages in South Africa and Zimbabwe had effected production while the company was also working on a new power supply contract with Hidroelectrica de Cahora Bassa in Mozambique.

Meanwhile, Aquarius Platinum South Africa (AQPSA) took over operations at the Everest mine from the end of January and was meeting its targets.

In addition, Aquarius Platinum and its South African subsidiary firm will buy back shares it had in the two companies that were being held by Impala Platinum.

Impala Platinum's 8.4 per cent stake will be bought by Aquarius Platinum for a cost of $285 million and will then cancel the repurchased shares.

AQPSA will then buy back 20 per cent of AQPSA owned by Impala Platinum for about $504.9 million.

Stuart Murray, the Chief Executive Officer of Aquarius Platinum, claimed that the deal was "highly attractive" to shareholders, Mining Weekly reports.

The deal will make AQPSA a wholly owned subsidiary of Aquarius and the deal will be financed through a combination of cash and debt provided by Rand Merchant Bank.

Source:

Aquarius to pay $790m to repurchase shares from Implats, 15/04/08
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