Platinum miner Platmin is going to have to double its production over the coming year to break even.

Announcing the production figures for the Pilanesberg Platinum Mine (PPM) and its full-year financial results for 2010, the firm reported a loss of $65.4 million (£40.9 million) after failing to meet its initial output targets.

The main focus of the company's activities during 2010 was the operation and development of PPM, with mining and processing activities building up towards a sales target of 20,000 oz per month for gold and three platinum group metals (pgms).

Platmin said "good progress" was made during the year in laying the foundation for sustainable higher future metal output.

A total of 20,961 oz was dispatched and sold for the quarter ended December 2010, equivalent to annual production of 84,000 oz.

The 60,067 oz dispatched in 2010 was more than twice the 27,865 oz dispatched in 2009.

Operational highlights in 2010 included a full upgrade of the geological model, incorporating up-to-date geological information and facilitating improvements to detailed planning, improvements to metallurgical recoveries from the high grade UG2 reef, from 40 per cent to 65 per cent, as well as lesser improvements in the Merensky plant.

Commenting on operations, Platmin chief executive officer Tom Dale said: "This is a big ship. We move four million tonnes of rock per month. We want to move five million tonnes per month, in the short term, to expose the reef necessary to create operating flexibility." 

He added that "the ship is turning", and the firm now has an experienced, motivated crew in place.

"The progress made during 2010 will support consistent improvements to metal output in 2011 and 2012. Hence, I expect us to reach monthly operating break even (about 12,500 oz) during 2011 and full monthly production of 20,000 oz during 2012," Mr Dale explained.

He went on to say the firm is "delighted" by its acquisition of Sedibelo West.

The additional pgm resource ounces will extend the life of PPM's Tuschenkomst pit, create operating flexibility in the north pit, and give Platmin direct access to sulphide ores with their higher metallurgical recoveries.

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Platmin to keep nose to the grindstone (31/03/11)
 

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