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. Source :http://www.24hgold.com/english/article-gold-silver-half-of-sa-s-platinum-mines-are-underwater.aspx?article=3994287040G10020&redirect=true&contributor=24hGoldWire
