The Motley Fool

Why shares in Aquarius Platinum Limited are down more than 7% today

Miner Aquarius Platinum Limited (ASX: AQP) has seen its shares since 7.3% today to 25.5 cents in afternoon trading. That’s despite the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) recovering from an early fall to be up 0.3%.

Aquarius has two mines currently in operation, namely Kroondal and Mimosa. Kroondal is a joint venture mine with Anglo American Platinum, in South Africa producing platinum group metals (PGM). Mimosa is located in Zimbabwe, and also produces PGMs.

Aquarius has another mine, Everest, which is currently on care and maintenance.

At the end of January, Aquarius announced that it was engaging with the Zimbabwe government regarding a proposed export tax of 15% of revenue on unrefined platinum. This obviously affects Aquarius’ Mimosa mine and will affect the company’s overall revenues if implemented.

Operating in such difficult countries such as Zimbabwe is likely one of the reasons why Aquarius’s shares have sunk 63% over the past 12 months. Not to mention a slide in platinum prices over the same period.

1 year platinum price chart

Source: Kitco.com

Like gold miners, platinum miners face similar pressures, and as such Foolish investors may want to steer clear of Aquarius Platinum.

NEW. The Motley Fool AU Releases Five Cheap and Good Stocks to Buy for 2020 and beyond!….

Our experts here at The Motley Fool Australia have just released a fantastic report, detailing 5 dirt cheap shares that you can buy in 2020.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading over 40% off its high, all while offering a fully franked dividend yield over 3%...

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click here or the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.

CLICK HERE FOR YOUR FREE REPORT!

Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. You can follow Mike on Twitter @TMFKinga