Wrap Text
Financial and Production Results to 30 September 2012
Aquarius Platinum Limited
(Incorporated in Bermuda)
Registration Number: EC26290
Share Code JSE: AQP
ISIN Code: BMG0440M1284
Financial and Production Results to 30 September 2012
Highlights
- Operating mines report EBITDA of $7.6 million following closure of non-profitable mines
- Attributable production from operating mines increased by 8% quarter-on-quarter to 77,799 4E ounces despite industrial
unrest
- Net loss after tax of $19.6 million following one off closure and transition cost of $14.6 million
- Average PGM basket price down 4% for the quarter strengthening towards the end of the quarter.
- The Rand weakened against the US Dollar by 3% on average quarter-on-quarter, weakening further in the first half of
October
- Transition to owner operator is on track (approximately 80% complete) and below budget
- Rollout of revised hanging wall system on track and on budget
- CTRP placed on care and maintenance due to poor quality material and marginal PGM prices
Q1 2013 Operating Results Summary
Kroondal Mimosa CTRP Platinum Mile
4E PGM Production
Total (100% basis) 92,073 56,341 644 3,270
Attributable 46,036 28,171 322 3,270
4E Basket Price
R/oz 9,895 - 11,039 10,519
$/oz 1,195 1,148 1,338 1,272
Cash Costs (4E basis)
R/oz 9,006 - 9,658 5,734
$/oz 1,088 831 1,170 693
Cash Margin (%) 2 20 (16) 35
Stay-in-Business Capex
R/oz 1,189 - - -
$/oz 144 323.70 - -
Commenting on the results, Jean Nel, Interim COO of Aquarius Platinum said: The South African industrial relations
environment in the PGM mining sector has been especially testing, in fact more so than ever, in recent months. We gratefully
acknowledge the significant assistance received from the Department of Mineral Resources, the Chamber of Mines, the South
African Police Services, as well as local government and communities. Hand-in-hand with this has been the changeover to
owner operation at Kroondal, an integral part of which has been engagement with our workforce and management focus on
ensuring a safe working environment while motivating efficiencies.
The progress made to date stands us in good stead to complete the transition to owner mining and to further increase
production at the Kroondal mine. This will coincide with the completion of the roll-out of the new hanging wall support
system, which will enable a return to full daily mining cycle. We will then begin to explore additional initiatives to further
optimise the Kroondal operation.
It is gratifying that all operating entities are now EBITDA positive and in line with our philosophy of not funding unproductive
operations, the decision was taken to place CTRP on care and maintenance in the current economic environment.
First Quarter 2013 Financial and Production Results
In terms of future guidance, we have made some tough decisions in recent months and will soon have completed all the
improvement initiatives currently underway. This should stand us in good stead and leave us well placed and poised to
respond to positive shifts in the sector.
In conclusion, I would like to extend my thanks to Stuart Murray, who in 11 years as CEO of Aquarius, put his own inimitable
stamp on the Company. On behalf of my fellow directors and the management of Aquarius, I thank him for his enormous
contribution to the company and wish him well in his future endeavours.
Production by mine
Quarter ended
PGMs (4E)
Sept 2012 June 2012 % Change Sept 2011 % Change
Kroondal 92,073 82,212 12 88,908 4
Marikana - 21,533 (100) 25,992 (100)
Everest - 15,281 (100) 23,074 (100)
Mimosa 56,341 54,588 3 53,798 5
CTRP 644 1,732 (63) 661 (3)
Platinum Mile 3,270 2,831 16 3,087 6
Total 152,328 178,177 (15) 195,520 (22)
Production by mine attributable to Aquarius
Quarter ended
PGMs (4E)
Sept 2012 June 2012 % Change Sept 2011 % Change
Kroondal 46,036 41,106 12 44,454 4
Marikana - 10,767 (100) 12,996 (100)
Everest - 15,281 (100) 23,074 (100)
Mimosa 28,171 27,294 3 26,899 5
CTRP 322 866 (63) 331 (3)
Platinum Mile 3,270 2,831 16 2,074 58
Total 77,799 98,145 (21) 109,828 (29)
Aquarius Group quarterly attributable production (PGM ounces) to 30 September 2012
Please refer to www.aquariusplatinum.com for the graph.
Market Summary
The price of the PGM basket recovered strongly in the second part of the quarter triggered by supply disruptions
at South African platinum mines from illegal strike action. Market sentiment for the PGM basket in dollar terms
has improved because of deteriorating supply expectations, a consequence of the ongoing and severe labour
disruptions in SA which have led to rising expectations of shaft closures, project deferrals and increased costs.
This has resulted in a lack of confidence and expectations of decreased profitability. It is difficult to judge with
any degree of reliability by how much supply is likely to have declined in these unpredictable circumstances,
especially given the possibly ameliorating effects of recent Rand weakness. On the demand side, the persistent
economic malaise in Europe and China has been offset somewhat by more promising signs of demand recovery
in the US and increased investor interest in ETFs. Industry analysts appear to be adjusting their expectations of
an oversupply towards a balanced market outlook in the medium term with a deficit expected thereafter.
In Dollar terms, quarter-on-quarter, the average platinum price increased by 0.1%, while the average palladium
and rhodium prices decreased by 2% and 11% respectively. The gold price rallied by 3% on average. Platinum
First Quarter 2013 Financial and Production Results
closed the quarter up 14% at $1,665 per ounce, while palladium rose by 11% to $640 per ounce and rhodium fell
by 12% to $1,100 per ounce over the same period. Gold rose 11% to $1,771 per ounce.
Rand-Dollar exchange rate
The average Rand-Dollar exchange rate weakened during the quarter, falling by 3% from R8.05 to R8.28 to the
US dollar. Since then, it has continued weakening throughout October to average 8.61 in the first two weeks of
October.
The average Rand basket price was relatively flat for the quarter, increasing by 1% quarter-on-quarter, and the
spot price by 2% over the period. The US Dollar weighted average group basket price decreased by 4% to $1,182
per 4E PGM ounce compared to the previous quarter due to Rand weakness. The average South African basket
price at AQPSAs operations was R9,843 per PGM ounce for the period. Subsequent to the end of the quarter,
the PGM basket price strengthened yet further to average R11,200 per PGM ounce for the first two weeks of
October.
Please refer to www.aquariusplatinum.com for the following
graphs:
12-month individual PGM prices to September 2012
12-month PGM basket prices to September 2012
12-month Rand-Dollar exchange rate to September 2012
Average PGM basket prices achieved at Aquarius operations
US$ per PGM Quarter ended
ounce (4E) Sept 2012 June 2012 % Change Sept 2011 % Change
Kroondal 1,195 1,218 (2) 1,480 (19)
Marikana - 1,240 - 1,488 -
Everest - 1,219 - 1,460 -
Mimosa 1,148 1,239 (7) 1,374 (16)
CTRP 1,338 1,240 8 1,535 (13)
Platinum Mile 1,272 1,159 10 1,438 (12)
Weighted Avg. 1,182 1,225 (4) 1,450 (18)
Financials
Direct comparisons with prior periods are not possible given the mine closures announced in the previous quarter.
Quarter-on-quarter comparisons will be based on operating mines to allow for meaningful comparisons to be
made.
Aquarius recorded an on-mine EBITDA profit of $7.6 million at its operating mines for the quarter ended 30
September 2012. This represents an increase in EBITDA of $10.7 million compared to the previous quarter ended
June 2012 for these operating mines. The increased result was due to an 8% increase in production from its
operating mines, namely Kroondal and Mimosa.
As previously advised, Aquarius placed both Everest and Marikana on care and maintenance just prior to year-
end. This decision was due to the current low PGM price environment and the sustained labour disruptions
experienced at Everest. In addition to this, Aquarius also commenced the transition from a mining contractor
model to an owner-operator model at Kroondal. The transition to owner operator is presently on track and
below budget with implementation expected to be completed by mid-December 2012. During the quarter under
review, $14.6 million in one off mine closure and contractor transition costs were expensed and $10.5 million
of inventory and equipment was acquired from the contractor as part of the transition to owner operation. A
First Quarter 2013 Financial and Production Results
further $8.5 million - $9 million is expected to be expensed in the next quarter at which stage the transition to
owner operated mines will be completed.
As a result of the one-off costs of $14.6 million expensed, the financial result for the quarter was a net loss
after tax of $19.6 million.
EBITDA, Profit and Production Comparison quarter on quarter:
Quarter ended
PGMs (4E)
Sept 2012 June 2012 Movement
EBITDA
Operating mines $8.4M $12.9M ($4.5M)
Non-operating mines ($0.8M) ($16.1M) $15.3M
TOTAL EBITDA $7.6M ($3.2M) $10.8M
Revenue $87.4M $108.6M ($21.2M)
Closure and transition costs ($14.6M) - ($14.6M)
Net profit/ (loss) after tax ($19.6M) ($35.4M) $15.8M
PGM ozs production (in operation)
Operating mines 77,799 72,097 8%
Non-operating mines - 26,048 -
Total PGM production 77,799 98,145 (21%)
Average PGM basket price per ounce $1,182 $1,225 ($43)
On-mine EBITDA of $7.6 million for the quarter was achieved on production of 77,799 PGM ounces, an 8%
increase over the previous quarter, in spite of the difficult operating conditions.
Revenue (PGM sales plus interest income of $1.9 million) from operating mines was marginally up at $87 million
compared to $85 million in the previous quarter. The increased revenue, achieved despite the lower PGM basket
price was driven by an 8% increase in production for the quarter. The benefits of recent metal price increases in
the PGM sector towards the end of the quarter, should be felt in the next quarter, barring any adverse
corrections.
Group gross cash profit for the quarter was $9.4 million compared with a gross cash loss in the June quarter of
$5.4 million.
Quarter ended
Sept 11 Dec 11 Mar 12 June 12 Sept 12
Revenue $151.3M $125.6M $121.9M $118.1M $88.9M
PGM sales adjustments ($6.7M) ($17.9M) $2.9M ($9.5M) ($1.5M)
Total revenue $144.6M $107.7M $124.8M $108.6M $87.4M
Production for the quarter from Aquarius operating mines increased 8% to 77,799 PGM ounces. Kroondal,
Mimosa and Platmile recorded improved production with only the CTRP plant (which was placed on care and
maintenance in late August) recording a decrease in production. This is a credible performance for a quarter
which has seen operations interrupted by industrial unrest across the sector. Following the suspension of
operations at the Marikana and Everest mines in June 2012, total Group production was lower.
Quarter ended
Attributable ounces Sept 11 Dec 11 Mar 12 June 12 Sept 12
Operating mines 73,758 72,513 68,673 72,097 77,799
First Quarter 2013 Financial and Production Results
Non-operating mines * 36,070 33,116 29,129 26,048 -
4PGE production 109,828 105,629 97,802 98,145 77,799
Non-operating mines *
Everest and Marikana were placed on care and maintenance in the previous quarter. Production from these mines has been
reported separately to allow continuing operations to be assessed accurately.
Total cash cost of production of $78 million was lower due to Everest and Marikana being placed on care and
maintenance. On a unit cash cost basis, Kroondals cash costs per PGM ounce of production reduced 2% in Rand
terms and 4% in Dollar terms on the back of Kroondal's 12% increase in production. This was despite higher
wage costs resulting from the implementation of an annual wage increase of 7.5% effective from 1 July 2012.
Mimosas cash costs per PGM ounce increased 12% in the quarter mainly due to an increase in mining fees as
well as challenges experienced in achieving planned processing efficiencies.
Amortisation and depreciation were lower at $11.5 million compared to the previous quarter, in line with lower
production.
Administrative costs of $2.9 million were also in line with quarterly trends. Finance costs for the quarter included
interest paid on borrowings of $4.5 million, non-cash interest accretion on convertible bonds of $2.5 million and
unwinding of the rehabilitation provision of $1 million.
Net operating cash outflow for the quarter of $40 million comprised inflow from sales of $86 million, $104
million paid to suppliers, closure costs of $21 million, income tax paid of $2 million and interest received of $2
million. Development and capital expenditure for the quarter was $15 million, which included capex transition
costs of $4 million. Net financing cash outflows of $8 million included interest payments of $4 million and loan
repayments of $3 million.
The Groups cash balance was $122 million at the end of the quarter, held as follows:
AQP $79 million
AQPSA $23 million
ACS(SA) $1 million
Mimosa $14 million
Platmile $3 million
Ridge Mining $2 million
Total $122 million
Aquarius Platinum Limited
Consolidated Income Statement
Quarter ended 30 September 2012
$000
Quarter Quarter Financial Year
Ended Ended Ended
Note 30/09/12* 30/09/11* 30/06/12
PGM production 77,799 109,828 411,398
Revenue (i) 87,439 144,579 485,736
Cost of sales (including D&A) (ii) (89,530) (146,189) (531,169)
Gross loss (2,091) (1,610) (45,433)
Other income 68 167 2,076
First Quarter 2013 Financial and Production Results
Administrative costs (iii) (2,854) (3,965) (11,950)
Foreign exchange gain/(loss) (iv) 2,664 (94,116) (95,001)
Finance costs (v) (8,041) (9,265) (34,674)
Closure and transition costs (vi) (14,621) - -
Impairment losses (vii) - - (3,983)
Loss before income tax (24,875) (108,789) (188,965)
Income tax benefit (viii) 5,267 16,947 30,678
Net loss (19,608) (91,842) (158,287)
Net loss is attributable to:
Equity holders of Aquarius Platinum Limited (19,628) (91,842) (158,227)
Non-controlling interests (ix) 20 - (60)
(19,608) (91,842) (158,287)
Earnings per share
Basic loss per share (cents per share) (4.17) (19.60) (33.77)
* Unaudited
Notes on the September 2012 Consolidated Income Statement
(i) The decline in revenue reflects lower production due to the closure of Everest and Marikana and lower prices
received compared with the pcp.
(ii) Lower aggregate costs are due to Everest and Marikana being placed on care and maintenance in June. At the
South African operations, unit cash costs per PGM ounce decreased by 2% quarter-on-quarter in Rand terms
and 4% in Dollar terms. Mimosas unit costs increased by 12% quarter on quarter as a result of efficiency
problems. Movements in US Dollar terms differed due to exchange rates prevailing at the time.
(iii) Administration and other costs of $3 million are in line with those of previous periods.
(iv) The forex gain is attributable to revaluation adjustments on intercompany loans, cash balances held in Rands,
Australian Dollars and Pound Stirling, and the revaluation of pipeline debtors in line with movements in the
Rand against the US Dollar.
(v) Finance costs include interest paid on borrowings of $4.5 million, non-cash interest accretion on convertible
bonds of $2.5 million and the unwinding of the rehabilitation provision amounting to $1 million.
(vi) Closure and transition costs reflect closure costs incurred on the closure of Everest and Marikana and the
transition to owner-operator costs incurred at Kroondal.
(vii) Impairment losses relate to the unrecoverable portion of a loan balance due from a jointly controlled entity.
(viii) Income tax benefit consists mainly of AQPSA deferred tax credits.
(ix) Non-controlling interests reflect the 8.3% non-controlling interest of Platinum Mile Resources (Pty) Ltd.
Aquarius Platinum Limited
Consolidated Statement of Cash Flows
Quarter ended 30 September 2012
$000
Quarter Quarter Financial Year
Ended Ended Ended
First Quarter 2013 Financial and Production Results
Note 30/09/12* 30/09/11* 30/06/12
Net operating cash (outflow)/inflow (i) (40,053) 34,056 26,356
Net investing cash outflow (ii) (14,952) (44,489) (120,079)
Net financing cash outflow (iii) (7,618) (25,519) (34,525)
Net decrease in cash held (62,623) (35,952) (128,248)
Opening cash balance 180,088 328,083 328,083
Exchange rate movement on cash 4,422 (16,329) (19,747)
Closing cash balance 121,887 275,802 180,088
* Unaudited
Notes on the September 2012 Consolidated Statement of Cash Flows
(i) Net operating cash flow for the quarter includes $86 million inflow from sales, $104 million paid to suppliers,
closure and transition costs of $21 million, income tax paid of $2 million and interest received of $2 million.
(ii) Comprises development and plant and equipment expenditure on AQPSA and Mimosa, including capex closure
costs of $4 million.
(iii) Includes interest paid of $4 million and Mimosa bank loan repayment of $3 million.
(iv)
Aquarius Platinum Limited
Consolidated Balance Sheet
At 30 September 2012
$000
As at As at
Note
30/09/12* 30/06/12
Assets
Cash and cash equivalents 121,887 180,088
Current receivables (i) 86,366 87,100
Other current assets (ii) 49,834 44,258
Property, plant and equipment (iii) 275,534 276,195
Mining assets (iv) 441,612 437,574
Intangibles (v) 86,979 87,882
Other non-current assets (vi) 89,639 88,093
Total assets 1,151,851 1,201,190
Liabilities
Current liabilities (vii) 89,852 113,466
Non-current payables (viii) 4,297 4,204
Non-current interest-bearing liabilities (ix) 266,098 265,526
Other non-current liabilities (x) 135,683 141,349
Total liabilities 495,930 524,545
Net assets 655,921 676,645
Equity
Issued capital 23,643 23,516
First Quarter 2013 Financial and Production Results
Unissued shares - 2,436
Reserves 705,798 704,606
Accumulated losses (79,822) (60,195)
Total equity attributable to equity
holders of Aquarius Platinum Limited 649,619 670,363
Non-controlling interests (xi) 6,302 6,282
Total equity 655,921 676,645
* Unaudited
Notes on the September 2012 Consolidated Balance Sheet
(i) Reflects debtors receivable on PGM concentrate sales
(ii) Reflects PGM concentrate inventory, consumables, stores and critical spares.
(iii) Represents plant and equipment within the Group
(iv) Includes Group mining assets at Kroondal, Marikana, Mimosa, Everest, Blue Ridge, CTRP and Platmile
(v) Includes intangibles relating to contract value acquired on the acquisition of equity interest in Platinum Mile
Resources (Pty) Ltd.
(vi) Includes the recoverable portion of the rehabilitation provision from Anglo Platinum of $11 million, receivables
from the Reserve Bank of Zimbabwe (RBZ) of $28 million, receivables from jointly controlled entities of $26
million, investments in rehabilitation trusts of $18 million, prepayments of $3 million and investments held for
resale of $3 million.
(vii) Includes trade creditors of $51 million, DBSA and IDC bank loans in Blue Ridge of $28 million, AQPSA finance
leases of $6 million, Mimosa loans of $3 million and provision for annual leave of $1 million.
(viii) Includes rehabilitation obligations on P&SA1 and P&SA2 structures.
(ix) Includes convertible bonds of $259 million, AQPSA lease facilities of $5 million and Mimosa loans of $2 million.
(x) Includes deferred tax liabilities $92 million and provision for closure costs $44 million.
(xi) Reflects the 8.3% non-controlling interest of Platinum Mile Resources (Pty) Ltd.
Operating Review Summary (all numbers on 100% basis)
AQUARIUS PLATINUM (SOUTH AFRICA) (PTY) LTD (Aquarius Platinum - 100%)
P&SA 1 at Kroondal (Aquarius Platinum 50%)
- 12-month rolling average DIIR deteriorated to 1.41 per 200,000 man hours from 1.20 in the previous quarter
- Production increased to 1,410,000 tonnes
- Head grade improved from 2.38g/t to 2.51g/t
- Recoveries improved by 1% to 80%
- Volumes processed increased to 1,430,000 tonnes
- Stockpiles at the end of the quarter totalled approximately 17,000 tonnes
- PGM production increased by 12% to 92,073 PGM ounces
- Revenue increased by 40% to R849 million quarter-on-quarter due to improved production and a higher basket
in the latter portion of the quarter resulting in positive sales adjustments
- Mining cash costs increased by 4% to R580 per tonne, a result of the annual wage increase of 7,5% which was
implemented with effect from 1 July 2012
- Unit cost per PGM ounce reduced 2% to R9,006 per PGM ounce due to increased tonnes production, improved
plant head grade and higher recoveries.
- Kroondals cash margin for the period improved from -24% to 2%
Please refer to www.aquariusplatinum.com for the graph.
Commentary
Kroondal: Production at Kroondal improved over the quarter under review, but remained below capacity
because of the continued implementation of the revised hanging wall support regime and industry wide labour
First Quarter 2013 Financial and Production Results
unrest. During the quarter, mining crews from all four of Kroondals shafts were in various stages of training as
part of the move to the revised support regime. Production at Kroondal is expected to increase once the revised
support regime roll out is completed and the operation returns to full production. This is expected to occur
during the December 2012 quarter.
Unprotected strike action occurred intermittently at Kroondals Kwezi Shaft during the quarter. A total of 378
employees who were striking unlawfully were dismissed during mid July 2012. A total of 164,062 tonnes were
lost during the quarter at Kwezi due to this unlawful strike action. On 1 August, an attempt to invade the Kwezi
shaft by ex-employees of the mining contractor resulted in Kroondals security contractor having to use live
ammunition to prevent an invasion of the shaft. This resulted in six people losing their lives and caused further
tension and uncertainty at the shaft. Experienced and trained employees from Marikana 4 shaft, who were in
the process of being retrenched, were transferred to Kwezi to replace those dismissed, thereby minimising
disruptions to production.
Also affecting production was the unprotected strike action by employees of other mining companies in the
vicinity, who attempted to disrupt operations at Kroondal. The Lonmin/Marikana incident affected the entire
Rustenburg region. During this incident, a further five production shifts were lost as employees at all Kroondal
shafts were sent home to ensure their safety.
The Department of Mineral Resources (DMR) visited the Simunye shaft towards the end of August. During this
visit, a Section 54 instruction was issued and a total of five production days were lost before the Section 54 was
lifted by the DMR. This said, the number of Section 54 Instructions have reduced significantly during the course
of the year due to improved communication and relationship between the company and the DMR.
The largest contributor to lost blasts was the Kwezi shaft, a result of labour unrest. All the other shafts were
within 4% of their target for lost blasts. Factors contributing to lost blasts were (i) crews attending training on
the new support system; (ii) incomplete blasting cycles; and (iii) very poor belt availability at Kopaneng and
Simunye.
During the quarter, Kopaneng shaft concentrated on belt upgrades. The new bunker and tips were
commissioned during the third week of October 2012. The ventilation shaft at Simunye has holed and the
ventilation layout with the new fans is expected to be commissioned by the end of October 2012.
The migration from contractor to owner mining, which was first announced as part of the year-end results, is
approximately 80% complete. The migration has been positively received by organised labour, employees and
suppliers. It is scheduled to be completed by mid-December 2012 and progress remains on track and is running
below budget.
Marikana: As disclosed previously, as a result of current low Rand PGM basket prices, the remaining shaft
(Marikana 4 shaft) and the processing plant at Marikana have been placed on care and maintenance until further
notice.
Everest: As disclosed previously, as a result of current low Rand PGM basket prices, temporary geological
problems and unstable labour relations, the Everest mine has been placed on care and maintenance until further
notice.
AQPSA Operating costs per ounce
4E 6E 6E net of by-products
(Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni&Cu)
Kroondal 9,006 7,395 7,261
Marikana - - -
Everest - - -
Capital expenditure
Kroondal Marikana Everest
First Quarter 2013 Financial and Production Results
(R000 unless otherwise stated) Total Per 4E oz Total Per 4E oz Total Per 4E oz
Ongoing establishment of
infrastructure 60,855 661 - - - -
Project capital 48,655 528 - - - -
Mobile equipment 56,002 608 - - - -
Total 165,512 1,798 - - - -
The Company continues to develop the K6 shaft at Kroondal and conduct design and drill work at Everest.
Almost all other project and growth capital expenditure has been placed on hold, pending improved market
conditions. The Company is continuing with the necessary maintenance capital expenditure required by its
operating mines.
The capital expenditure on mobile equipment is financed through a lease agreement over the life of the
equipment.
MIMOSA INVESTMENTS (Aquarius Platinum - 50%)
Mimosa Platinum Mine
- 12-month rolling average DIIR improved to 0.19 per 200,000 man hours worked
- Production increased by 17% to 630,753 tonnes
- Head grade was static at 3.66g/t
- Recoveries improved slightly to 77.71%
- Volumes processed increased by 3% to 616,362 tonnes
- Stockpiles at the end of the quarter totalled approximately 98,763 tonnes
- PGM production increased by 3% to 56,341 PGM ounces
- Revenue decreased by 27% to US$59 million due to depressed metal prices
- Mining cash costs increased by 13% to US$76 per tonne, and costs per PGM ounce by 12% to $831
- Stay-in-business capital expenditure was $162 per PGM ounce for the quarter
- Mimosas cash margin for the period fell from 44% to 20% due to depressed metal prices and rising production
costs.
Please refer to www.aquariusplatinum.com for the graph.
Commentary............................................................................................................
The Mimosa mine continues to operate well. Discussions continue with various regulatory bodies on the
indigenisation process as well as the increased mining fees. There have been no material developments in this
regard since the date of the Companys last disclosure. Following the agreement between Mimosa and ZESA (the
power utility company) reached in late March regarding the uninterrupted power supply of 20MW for the next
five years, Mimosa has experienced no issues with the electricity supply. Quarterly meetings are held with ZESAs
senior management to discuss potential power supply disruptions and ways to improve the reliability of power
supply.
Operating cash costs per ounce
Unit cash costs per PGM ounce (before by-product credits) were 12% higher than those achieved in the previous
quarter. The higher costs were mainly due to increases in wage and mining fees as well as challenges
experienced in achieving planned processing efficiencies. Metal recoveries, though marginally improved from
the previous quarter, are still below expected levels. The consumption of steel balls, chemicals and reagents was
increased, and exceeded budget, in an effort to improve grinds and normalise power draws so as to improve
recoveries and to counter lower-than-anticipated process efficiencies. A dedicated team has been put in place to
work on an initiative to improve recoveries and other plant efficiencies by about 4% within the next 24 months.
4E 6E 4E net of by-products
(Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni, Cu & Co)
First Quarter 2013 Financial and Production Results
Mimosa 831 786 537
Capital expenditure
The total capital expenditure for the first quarter decreased to $9 million from $15 million in the fourth quarter
of FY2012.
TAILINGS OPERATIONS
Chromite Tailings Retreatment Plant (CTRP) (Aquarius Platinum 50%)
The CTRP plant was placed on care and maintenance on 6 August 2012.
- Material processed decreased 64% to 30,000 tonnes
- Head grade decreased to 2.67 g/t
- Recoveries increased from 22% to 25%
- Production decreased to 644 PGM ounces
- Cash costs increased by 58% to R9,658 per PGM ounce
- Revenue was R5 million for the quarter
- CTRP's cash margin for the period was (16%), a decrease from 12% in the previous quarter
Platinum Mile (Aquarius Platinum 91.7%)
- Material processed decreased 8% to 1,130 million tonnes
- Head grade increased to 0.60 g/t
- Recoveries increased to 15%
- Production increased to 3,270 PGM ounces
- Cash costs decreased to R5,734 per PGM ounce
- Revenue was R29 million for the quarter
- The cash margin for the period was 35%, an increase from (1%) in the previous quarter
Commentary
CTRP: The operation was placed on care and maintenance on 6 August 2012. The mix of feed material changed,
with less fresh current arisings being processed. More oxidised and highly disseminated dump material, which
requires upfront milling to achieve sustainable recoveries, is being supplied as feed. The coarse grinding
expansion at the operation will be considered when market conditions improve. A preliminary study at CTRP has
indicated that the oxidised material could be milled to achieve the requisite recoveries, but that capital of
approximately R30 million would be required. It was decided that current Rand PGM prices do not warrant the
capital expense. The study will be optimised and if deemed feasible will be submitted to CTRP shareholders for
consideration.
Platinum Mile: The operation lost 13 production days during the quarter owing to strikes at Anglo Platinum.
These strikes continued into October and, as a result, at the time of the writing, the operation had received no
feed from Anglo Platinum.
Operating cash costs per ounce
4E 6E 4E net of by-products
(Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni, Cu& Co)
CTRP 9,658 9,173 9,020
Platinum Mile 5,743 4,943 4,384
Statistical Information: Kroondal P&SA1
Please refer to www.aquariusplatinum.com for the Statistical
Information.
Statistical Information: Mimosa
First Quarter 2013 Financial and Production Results
Please refer to www.aquariusplatinum.com for the Statistical
Information.
Statistical Information: Chrome Tailings Retreatment Plant
Please refer to www.aquariusplatinum.com for the Statistical
Information.
Statistical Information: Platinum Mile
Please refer to www.aquariusplatinum.com for the Statistical
Information.
CORPORATE MATTERS
Issue of Shares to Support Black Economic Empowerment (BEE) Partners
Subsequent to the end of the quarter, the Company issued 14,000,000 Shares as part of a transaction intended
to preserve the black economic empowerment (BEE) credentials of Aquarius. Following the decrease in the
share price of Aquarius over recent months, the financing arrangements of Aquarius cornerstone BEE
shareholders, being Savannah Platinum SPV, Chuma Platinum SPV and Malibongwe Platinum SPV, (BEE
Partners), required the sale of approximately 35 million of the 64 million Shares held by the BEE Partners.
Aquarius is not a party to the current financing arrangements between the BEE Partners and its financiers.
The Board of Aquarius considered the implications of these sales of the BEE Partners' shares and of further
potential sales, and resolved that it was in the interests of Aquarius, and in line with its ongoing commitment to
complying with the BEE and regulatory framework in South Africa, to assist the BEE Partners to preserve their
remaining shareholdings in Aquarius.
In order to give effect to such resolution, Aquarius lent to its wholly owned subsidiary, Aquarius Platinum
Investments Limited (API) the proceeds of the share issue received by Aquarius which API applied to acquire
the 14,000,000 million Shares. API has entered into a limited guarantee and pledge of the Shares (Security
Arrangements) with the financiers to the BEE Partners. The purpose of the Security Arrangements is to provide
sufficient share security to the BEE Partners financiers. The Security Arrangements contain customary terms
and conditions as well as specific events of release of the security, with the objective of limiting recourse and
impact to API.
Board Changes
Mr Stuart Murray advised of his resignation as director and CEO of Aquarius and executive chairman of AQPSA,
effective 5 October 2012 after eleven years of service with the Group. Mr Jean Nel was appointed Interim Chief
Operating Officer of the Group and Mr Zwelakhe Mankazana, Interim Non-executive Chairman of AQPSA.
More information on all corporate matters can be found at www.aquariusplatinum.com
Aquarius Platinum Limited
Incorporated in Bermuda
Exempt company number 26290
Board of Directors
Nicholas Sibley Non-executive Chairman
Jean Nel Interim Chief Operating Officer
First Quarter 2013 Financial and Production Results
David Dix Non-executive
Tim Freshwater Non-executive
Edward Haslam Non-executive
Sir William Purves Non-executive (Senior Independent Director)
Kofi Morna Non-executive
Zwelakhe Mankazana Non-executive
Audit/Risk Committee
Sir William Purves (Chairman)
David Dix
Edward Haslam
Kofi Morna
Nicholas Sibley
Remuneration/Succession Planning Committee
Edward Haslam (Chairman)
David Dix
Zwelakhe Mankazana
Nicholas Sibley
Nomination Committee
The full Board comprises the Nomination Committee
Company Secretary
Willi Boehm
AQPSA Management
Jean Nel Interim Chief Operating Officer
Robert Schroder Managing Director
Graham Ferreira Finance Director
Wessel Phumo General Manager: Kroondal
Mimosa Mine Management
Winston Chitando Managing Director
Herbert Mashanyare Technical Director
Peter Chimboza Resident Director
Fungai Makoni General Manager Finance & Company Secretary
Platinum Mile Management
Richard Atkinson Managing Director
Paul Swart Financial Director
Issued Capital
At 30 September 2012, the Company had on issue: 472,851,336 fully paid common shares and 120,000 unlisted options.
Substantial Shareholders 30 September 2012 Number of Shares Percentage
Chase Nominees Limited 27,997,101 5.92
State Street Nominees Limited (OM02) 23,689,792 5.01
Main Listing: Australian Securities Exchange (AQP.AX) Trading Information
Secondary Listing: London Stock Exchange (AQP.L) ISIN number BMG0440M1284
Secondary Listing: JSE Limited (AQP.ZA) ADR ISIN number US03840M2089
Convertible Bond ISIN number XS0470482067
Broker (LSE) (Joint) Broker (ASX) Sponsor (JSE)
Liberum Capital Limited Euroz Securities Rand Merchant Bank
Ropemaker Place, Level 12 Level 18 Alluvion (A division of FirstRand Bank
25 Ropemaker Street, London 58 Mounts Bay Road, Limited)
EC2Y 9LY Perth WA 6000 1 Merchant Place
Telephone: +44 (0) 20 3100 2000 Telephone: +61 (0) 8 9488 1400 Cnr of Rivonia Rd and Fredman
Bank of America Merrill Lynch Drive, Sandton 2196
2 King Edward St Johannesburg South Africa
London, EC1A 1HQ
l h 44 (0)20 628 1000
First Quarter 2013 Financial and Production Results
Aquarius Platinum (South Africa) (Proprietary) Ltd
100% Owned
(Incorporated in the Republic of South Africa)
Registration Number 2000/000341/07
Unit 16, Berkley Office Park, 8 Bauhinia Street, Highveld Techno Park, Centurion, Pretoria, South Africa.
Postal Address: PO Box 76575, Wendywood, 2144, South Africa
Telephone: +27 (0)120012001
Facsimile: +27 (0)120012070
Aquarius Platinum Corporate Services Pty Ltd
100% Owned
(Incorporated in Australia)
ACN 094 425 555
Level 4, Suite 5, South Shore Centre, 85 The Esplanade, South Perth, WA 6151, Australia
Postal Address: PO Box 485, South Perth, WA 6151, Australia
Telephone: +61 (0)8 9367 5211
Facsimile: +61 (0)8 9367 5233
Email: info@aquariusplatinum.com
For further information please visit www.aquariusplatinum.com or contact:
In the United Kingdom and South Africa: In Australia:
Jean Nel Willi Boehm
+27 12 001 2001 +61 (0) 8 9367 5211
First Quarter 2013 Financial and Production Results
Glossary
A$ Australian Dollar
Aquarius or AQP Aquarius Platinum Limited
APS Aquarius Platinum Corporate Services Pty Ltd
AQPSA Aquarius Platinum (South Africa) (Pty) Ltd
ACS(SA) Aquarius Platinum (SA) Corporate Services (Pty) Ltd
BEE Black Economic Empowerment
BRPM Blue Ridge Platinum Mine
CTRP Chrome Tailings Retreatment Operation. Consortium comprising Aquarius Platinum (SA)
(Corporate Services) (Pty) Limited (ASACS), Ivanhoe Nickel and Platinum Limited and Sylvania
South Africa (Pty) Ltd (SLVSA).
DIFR Disabling injury frequency rate -being the number of lost-time injuries expressed as a rate per
1,000,000 man-hours worked
DIIR Disabling injury incidence rate -being the number of lost-time injuries expressed as a rate per
200,000 man-hours worked
DME formerly South African Government Department of Minerals and Energy
DMR South African Government Department of Mineral Resources, formerly the DME
Dollar or $ United States Dollar
Everest Everest Platinum Mine
Great Dyke Reef A PGE bearing layer within the Great Dyke Complex in Zimbabwe
g/t Grams per tonne, measurement unit of grade (1g/t = 1 part per million)
JORC code Australasian code for reporting of Mineral Resources and Ore Reserves
JSE JSE Limited
Kroondal Kroondal Platinum Mine or P&SA1 at Kroondal
LHD Load haul dump machine
Marikana Marikana Platinum Mine or P&SA2 at Marikana
Mimosa Mimosa Mining Company (Private) Limited
nm Not measured
PGE(s) (6E) Platinum group elements plus gold. Five metallic elements commonly found together which
constitute the platinoids (excluding Os (osmium)). These are Pt (platinum), Pd (palladium), Rh
(rhodium), Ru (ruthenium), Ir (iridium) plus Au (gold)
PGM(s) (4E) Platinum group metals plus gold. Aquarius reports the PGMs as comprising Pt+Pd+Rh plus Au
(gold) with the Pt, Pd and Rh being the most economic platinoids in the UG2 Reef
PlatMile Platinum Mile Resources (Pty) Ltd
P&SA1 Pooling & Sharing Agreement between AQPSA and RPM Ltd on Kroondal
P&SA2 Pooling & Sharing Agreement between AQPSA and RPM Ltd on Marikana
R South African Rand
Ridge Ridge Mining Limited
ROM Run of mine. The ore from mining which is fed to the concentrator plant. This is usually a
mixture of UG2 ore and waste.
Tonne 1 Metric tonne (1,000kg)
UG2 Reef A PGE-bearing chromite layer within the Critical Zone of the Bushveld Complex
Date: 30/10/2012 09:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
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