Southern Platinum has seen its third quarter earnings hampered by the continuing strength of the South African rand, as the pgm company delivered a net loss of $8.7 million.

The loss compares unfavourably with the same period last year when the firm recorded a net loss of $1 million.

However, progress has been made at the firm, which recently completed its restructuring plan whereby it separated its diamond and platinum operations into two new companies.

A ramp up in production at the company's Messina mine proved successful, with the site producing approximately 20,800 ounces of pgms in the quarter as development continued.

The final phase of in-fill drilling is now finished, with Southern Platinum charting a 16 per cent increase for the quarter in the platinum group metals resource at the Dwaalkop Section.

In its report the firm welcomed the advances that have been made: "By the end of the quarter it was apparent that the mine is beginning to reap the benefits from the numerous business practice improvements taken during the first six months of the year.

"'Continuous operations' is now well established at Messina. The mine is now operating smoothly on a seven-day-a-week cycle."

Southern Platinum is aiming to deliver on its 2002 plan to expand the mine's capacity from the original 80,000 tonne per month capacity to 120,000 tonnes per month.

It is also seeking to overhaul its mining methods and to make operations at the site more efficient.