LONDON (Bloomberg) - Aquarius Platinum Ltd., a miner of platinum in South Africa and Zimbabwe, reported a 28 percent increase in fiscal second-half profit on rising prices and said it plans to expand production this year.

Net income grew to $129.8 million, or 50.4 cents a share, in the six months to June 30, from $101.8 million, or 118 cents, a year earlier, the Hamilton, Bermuda-based company said in a statement yesterday. Sales increased 30 percent to $495 million.

Power shortages in South Africa, which accounts for more than three-quarters of world platinum production, helped drive the average price of the metal in the half up 57 percent from a year earlier. Aquarius said it expects to lift output in the current financial year by about 15 percent after the first decline in at least five years in fiscal 2008.

"Production growth of 15 percent is above what we were looking for," Rebecca O'Dwyer, an analyst at Investec Securities said today in London.

The company advanced 23.75 pence, or 5.3 percent, to 475.25 pence as of 10am on the London Stock Exchange, giving it a market value of £1.2 billion ($2.3 billion).

Production at Aquarius fell 5.7 percent to 500,203 ounces of platinum and related metals in fiscal 2008, partly on power shortages and strikes at its biggest South African mines, Kroondal and Everest. The cost of producing an ounce of metal also rose 26 percent to $622 from $493 a year earlier, it said.

"The big issue is managing costs," Asa Bridle, a metals and mining analyst at Seymour Pierce, said by phone from London. "I hope we do see this level of production increase. Given the issues in 2008 I'd take a more conservative view."

Net income in the year ended June 30 was $236.5 million, or 91.98 cents a share, from $187.2 million, or 72.84 cents, a year earlier, it said. Sales rose to $919 million from $709 million.

The earnings per share takes into account a three-for-one share split approved by shareholders in November 2007.

Aquarius Platinum ranks fifth by platinum production behind Anglo Platinum Ltd., Impala Platinum Holdings Ltd., Lonmin plc. and OAO GMK Norilsk Nickel, according to research firm GFMS.