Platinum Australia's Smokey Hills Mine Starts Production
Mon. January 26, 2009; Posted: 08:00 PM
tradingmarkets.com
CANBERRA, Jan 26, 2009 (Dow Jones Commodities News via Comtex) -- PTNMF | Quote | Chart | News | PowerRating -- Platinum Australia Ltd. (PLA.AU) said Tuesday its Smokey Hills mine in South Africa produced its first concentrate Friday and, despite sharply weaker metal prices over the past year, can operate at a handsome margin.
Production of first concentrate marks the transformation of the company to producer status from explorer/developer, Managing Director John Lewis said in a statement.
"Our most recent cost analysis confirms that Smokey Hills will be among the lowest cost producers in the industry," he said.
Total cost of production, smelting and refining is about US$300 an ounce of platinum group metals, which at current prices, currency and hedging levels provides a margin of about US$350/oz, he said.
The Smokey Hills plant has an annual capacity to produce 95,000 ounces of platinum group metals.
The Perth-based company owns holds a 69.75% stake in the US$44 million project, with the balance held by various Black Economic Empowerment entities.
-By Ray Brindal, Dow Jones Newswires; 612-6208-0902; ray.brindal@dowjones.com
(END) Dow Jones Newswires
01-26-09 2000ET |
