A cloud of uncertainty looms over Platinum Australia after the company warned of sharply lower production at its Smokey Hills mine in South Africa amid a languishing environment for platinum group metals prices.
The West Perth-based company called a trading halt today and flagged an urgent review of its operations to determine its future strategy and viability of the mine.
"The review is expected to be completed within a week and further announcements will be made at that time," the company said in a statement accompanying its request for a trading halt.
Platinum Australia said it expected to produce about 29,000 tonnes in June compared to a forecast 47,980 tonnes.
The company cited difficult operating conditions exacerbated by a section 54 safety stoppage, which had led to a complete shutdown of the mine for the past four days.
Platinum Australia began production at Smokey Hills in early 2009 with open pit and underground operations.The company's shares last changed hands for 6.7 cents.
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