The resource index has added 0.8% in morning trade, while the industrial and financial indices have given up 0.81% and 0.38% respectively.
In company news, Aquarius Platinum Ltd released an update for the quarter and nine months ending March 2015 in which the following salient features were highlighted:
- Attributable production for the quarter from operating mines was 84,792 PGM ounces, 6% higher compared to the previous corresponding period ended March 2014 (PCP), quarter-on-quarter production decreased 5% due to a shorter production quarter
- Group production for year to date remains ahead of guidance
- Cash costs increases at Kroondal remained below inflationary targets increasing 1% for the nine months ended March 2015 compared to the nine months ended March 2014, although quarter-on-quarter costs increased 7%, driven by less production shifts and stock pile reduction over Christmas holidays
- Cash costs at Mimosa significantly lower, 8% for the nine months ended 31 March 2015 compared to the nine months ended March 2014, while quarter-on-quarter costs increased 2%
- Average PGM basket price decreased 4% quarter-on-quarter in dollar terms, down 9% compared to the PCP
- The rand weakened against the US dollar by 5% on average quarter-on-quarter, down 8% compared to PCP
- Revenue down 2% to $50 million (Q2 2015: $51 million) in line with lower production and low prices
- Mine EBITDA marginally up at $4.4 million (Q2 2015: $3.6 million), down $6.7 million compared to PCP due to a $6 million negative sales adjustment caused by lower PGM prices
- Attributable cash balance increased by $2 million during the quarter to $174 million (of which $13 million is held in JV entities)
In currencies, the rand is trading at R11.92 to the dollar, R18.19 to the British pound and R13.01 to the euro. In commodities, gold is trading at $1,201/oz., platinum at $1,140/oz. and brent Crude at $64.70/barrel
On the economic front, preliminary GDP data out of the U.K. showed q/q economic growth of 0.3%, well below expectations of 0.5% growth. In the U.S. we await consumer confidence data scheduled for 4pm.