Platinum Australia Ltd (ASX:PLA) reports that quarterly production from its Smokey Hills mine for June increased 5%, despite being negatively impacted by potholes encountered during mining.

Platinum says the potholes affected both tonnages and grades, but advises it anticipates production will ramp up in the following three months.

Platinum says current production guidance is 15,000 ounces for the September quarter, subject to pothole disruption, until resolved.

Platinum Australia reported loss of $14.85 million for the year ending 30 June 2009.