Aquarius Platinum could buy back shares from its black economic empowerment partner (BEE), Savannah, which currently holds a 29.5 per cent stake in the company, Stuart Murray, the platinum producer's CEO revealed on Thursday.

In 2003 Aquarius completed a deal with BEE consortium Savannah, made up of Savannah Platinum, Chuma Platinum and Malibongwe Platinum, in which the BEE vehicle acquired a 29.5 per cent stake in the company for R860 million ($126.8 million).

Mr Murray said at the time that the move would provide Aquarius with "the necessary cash injection" to commence development of the Everest Mine in the Bushveld Complex, which the company forecast would be producing 220,000 ounces of pgms by mid-2006.

Aquarius had initially only planned to sell 26 per cent to the consortium in 2003 but the poor shape of the platinum market at the time meant that to fund the Everest project the company would have to sell an extra 3.5 per cent.

On the back of record production, including the ahead of schedule opening of Everest, Mr Murray told Engineering News that the company was now in a position to buy back the additional 3.5 per cent.

Having reported a four fold increase in full year profits to $85.6 million earlier in the week, Aquarius is reported to have $100 million in cash at its disposal.

"It's a win-win if we can have a meeting of the minds," Aquarius' CEO said, while Savannah's executive director, Kofi Morna, confirmed: "We are happy to sell the 3.5 per cent."

Aware of other similar deals, Mr Murray said that BEE buy-backs "may be becoming a bit of a flavour".

Production at the Everest Mine was one of the highlights of Aquarius' full year report, generating a 61 per cent on-mine cash margin with 97,031 ounces of platinum produced for the period.

Ÿ Adfero Ltd