UPDATE 2-Aquarius Q3 net lifted 59 pct, eyes higher output

(Adds analyst comment, shares)

By Eric Onstad

LONDON, April 24 (Reuters) - Aquarius Platinum (AQP.L: Quote, Profile, Research, Stock Buzz) posted on Thursday a 59 percent surge in third-quarter net profit to $90.8 million as record prices outweighed weaker production, and said fourth-quarter output was due to improve.

The firm's shares, which have shot up 40 percent this year, rose 0.3 percent to 800 pence by 0810 GMT, outperforming a 1.6 percent fall in the UK mining index .

"Aquarius has reported better than expected Q3 '08 financial results," said analyst Rebecca O'Dwyer at Investec Securities, which is joint broker to the company.

"Record PGM (platinum group metal) prices and a weaker rand drove quarterly earnings to an all-time high."

Most of the company's operations are in South Africa and it has one mine in Zimbabwe.

Seymour Pierce upgraded Aquarius to "buy" from hold" on Thursday after it raised PGM price forecasts.

Aquarius (AQPJ.J: Quote, Profile, Research, Stock Buzz) (AQP.AX: Quote, Profile, Research, Stock Buzz) said attributable output of PGMs for the three months to end-March fell 19 percent to 111,524 ounces compared with the previous quarter.