Aquarius Platinum Limited LSE:AQP ASX:AQP JSE:AQP

Johannesburg platinums doubled in 2005
By: Gareth Tredway
Posted: '27-DEC-05 11:00' GMT © Mineweb 1997-2004



JOHANNESBURG (Mineweb.com) -- After a relatively moderate 30% gain at the half year, the Johannesburg Platinum index ended up more than doubling its value in 2005.

Platinum's price shot through $1,000/oz recently, propelling the shares of producers of the white metal. About 80% of the world’s platinum production comes from South Africa, with the rest coming as a by-product from palladium producers in Russia and the US.

Shares in Aquarius Platinum, number two at the half year, went up by 167% from January 1 to December 23, as the company, a junior producer, continued to maintain profits, as well as open its new mine, Everest South.

The company is currently in dispute with its contracted miner at the Marikana open pit mine. While recent announcements have pointed at Aquarius requiring to pay R160 million in back payments to the contractor, just last week Aquarius made a counter claim of R1 billion against the contractors.

The dispute does not seem to have had any detrimental effect on Aquarius’s share price.

The second best performer, and also the world’s largest platinum producer, Anglo Platinum, gained 116% in 2005. In 2004 the shares fell 29% in line with the domestic platinum price.

Anglo Platinum management is currently restructuring by initiating efficiencies like central purchasing and opening up more areas in its mines to improve flexibility.

Northam, another junior and normally a marginal producer, also experienced some great share price gains in the year. An insurance payout from an underground fire came through earlier this year, which pushed the shares from underperformer to third best by the end of the year.

The worst performer at the half year with a 25% gain in value, Impala Platinum (Implats) , caught up in H2, ending the year 97% up.

With a bank balance of nearly R4 billion at the half year and more expected from the current interim, shareholders are expecting a handy special dividend to be announced at the next results presentation.