By Alex MacDonald

LONDON--South Africa's Aquarius Platinum Ltd. (AQP.LN), which has received a takeover offer from Sibanye Gold Ltd. (SGL.JO), reported a wider net loss in the first financial quarter as tumbling platinum group of metal prices more than offset higher output at its two main mines.

The U.K.-listed miner reported a net loss of $12.3 million in the three months ended Sept. 30, compared with a net loss of $5 million in the same period a year earlier. This was due to a 35% on-year drop in revenue to $40 million, as platinum group of metal prices fell 29% to levels last recorded in 2006.

This more than offset an 8% rise in output to 93,513 platinum group of metal ounces in the first financial quarter, as its Mimosa mine in Zimbabwe hit a record quarterly production level and its Kroondal mine also boosted output.

"Given that we see no fundamental reason to be optimistic about PGM prices in the short term management will continue to implement all possible cost savings measures to preserve cash levels," said Jean Nel, Aquarius's chief executive.

He added that the company is making progress on dispatching the materials needed for Aquarius shareholders to vote on the Sibanye's $294 million cash offer, which was unanimously backed by Aquarius' board.

The deal would make Sibanye, South Africa's largest gold producer by output, the world's fifth-largest platinum producer with annual production of more than one million platinum equivalent ounces.

Write to Alex MacDonald at alex.macdonald@wsj.com

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(END) Dow Jones Newswires

October 27, 2015 04:11 ET (08:11 GMT)

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