Moneyweb, in its July 26, 2012 article, reports that Half of SA's platinum mines are underwater.
Extract :
|
|
|
|
|
|
The latest financial reports from
listed platinum miners have shown that over half of these are making losses
or are trading at thin margins which would see any further drop in the
platinum price or cost increases cause a crisis in what is a labour intensive sector of South Africa's economy.
Of the 26 mines, eleven were
found to be operating at a loss with a further four marginal at best. (see
list at bottom of the story
The exercise was a difficult one as
platinum miners do not report in accordance with a set of standardised
metrics so comparisons are difficult.
Some use kilograms, others ounces or
equivalent ounces based on internal standards. Some measure PGM ounces and
platinum, others only platinum, others only PGMs. Frustrating to say the
least!
Nevertheless, from Anglo American's
interim results presentation yesterday it was painfully obvious why a review
was currently underway. Seven of the eleven mines operating at a loss belong
to the world's largest platinum miner.
For Amplats
the calculation used compared revenue per equivalent platinum ounce with the
cash cost thereof.
Marikana (already
on care and maintenance) was the worst performer with Union North, Modikwa, Thembelani, Kroondal, Khuseleka and Khomanani filling the ranks. Modikwa
was hit by a month long strike during the period and Khuseleka
is in ramp up. Union South proved to be marginal.
|
|
Read the rest of the article at
Moneyweb
