Platinum Australia has confirmed that concentrate production at its Smokey Hills mine in South Africa will feature some of the best margins in the pgm industry.

The plant is set for its first production after being successfully commissioned and company officials have revealed that smelting and refining costs will sit at around $300 per ounce.

Considering that the prices of platinum, palladium and rhodium are currently at roughly $950, $190 and $1,100 per oz respectively, the firm should be able to attain margins of $300 per oz.

Furthermore, Platinum Australia also claimed that the relative weakness of the rand would have a major impact on its operating costs, which it believes could be as little as $200 per oz 4E pgm.

Managing Director John Lewis told Mining Weekly: "Since all of the debt components of our funding for the development of the Smokey Hills platinum mine was provided in rand, this has significantly reduced the debt in terms of the US dollar."

The company claimed last week that it expects the on-site treatment plant will be capable of producing 95,000 oz 4E pgm in a flotation concentrate from its design capacity of 720,000 tonnes per year.

Source:

Platinum Australia margins still high (30/01/09)
http://www.sharecast.com/cgi-bin/sharecast/story.cgi?story_id=2582529

Platinum Australia produces first concentrate from Smokey Hills (27/01/09)
http://www.miningweekly.com/article.php?a_id=151698