Wrap Text
Production results to 30 June 2015
Aquarius Platinum Limited
(Incorporated in Bermuda)
Registration Number: EC26290
ISIN Code: BMG0440M1284
JSE Share Code: AQP
Production Results to 30 June 2015
Highlights
- Attributable production from operating mines up 5% quarter-on-quarter, up 6% compared to previous
corresponding period, quarter ended June 2014 (pcp)
- Both Kroondal and Mimosa production at fourth quarter record levels
- Average US$ PGM basket price decreased 4% for the quarter – down 16% compared to pcp
- Kroondal PGM basket price decreased 3% on average to R12,120 per PGM ounce quarter-on-quarter - down
5% compared to the pcp
- Mimosa PGM basket price decreased 3% on average to $1,010 per PGM ounce quarter-on-quarter - down
13% compared to the pcp
- The Rand weakened against the US Dollar 3% on average quarter-on-quarter – down 14% compared to the
pcp
- Cash costs at Kroondal down 4% to R9,201 per PGM ounce quarter-on-quarter – down 2% compared to the
pcp
- Cash costs at Mimosa unchanged at $797 per PGM ounce quarter-on-quarter - down 1% compared to the
pcp
- Sale proceeds from sale of Everest mine $33 million (Part A) received during the quarter
- Attributable group closing cash at 30 June $201 million ($196 million on Balance Sheet with a further $5
million attributable to Aquarius held in JV entities)
Q4 2015 Operating Results Summary
Kroondal Mimosa PlatMile
4E PGM production
Total (100% basis) 112,024 60,035 2,773
Attributable 56,012 30,018 2,773
4E basket price
R/oz 12,120 - 11,756
$/oz 1,005 1,010 978
Cash costs (4E basis)
R/oz 9,201 - 7,671
$/oz 763 797 638
Cash margin (%) 6 23 14
Stay-in-business capex
R/oz 1,086 - 0
$/oz 90 118 0
Commenting on the results, Jean Nel, CEO Aquarius Platinum said:
The fourth quarter was characterised by a particularly good performance from both Aquarius operating mines. Both Kroondal
and Mimosa again improved safety, delivered all time fourth quarter production records and reduced costs, in what remains a
challenging operating environment. The performance is testimony to a disciplined approach to operations and the operating
teams at Kroondal and Mimosa deserve much credit for this. From a macro perspective, the lower metal prices which
prevailed during the period and especially post quarter end will not only require an increased focus on safety, cost and
production discipline, an approach which Aquarius will remain committed to, but also a focused assessment of the viability of
each shaft at each operating mine to ensure the sustainability of the business in a low metal price environment.
Production by mine attributable to Aquarius (Operating mines)
PGMs (4E) Quarter ended
June 2015 Mar 2015 % Change Jun 2014 % Change
Kroondal 56,012 53,544 5 53,090 6
Mimosa 30,018 28,696 5 30,409 (1)
PlatMile 2,773 2,552 9 - (42)
Total 88,803 84,792 5 83,499 6
Average PGM basket prices achieved at Aquarius operations updated Braam
US$ per PGM Quarter ended
ounce (4E) June 2015 Mar 2015 % Change Jun 2014 % Change
Kroondal 1,005 1,062 (5) 1,215 (17)
Mimosa 1,010 1,036 (3) 1,156 (13)
PlatMile 978 1,039 (6) 0 0
Weighted 1,006 1,053 (4) 1,194 (16)
Avg.
Aquarius Group quarterly attributable production (PGM ounces) to 30 June 2015
Please refer to www.aquariusplatinum.com for the graph.
PGM markets update
Precious metals suffered a weak end to the quarter, with the price of Palladium decreasing to almost a two-year
low, ending the quarter at $675 per ounce (down 8%). Platinum also moved lower across the quarter, but avoided
the weakness towards the end of June, stabilising to finish the quarter at $1,080 per ounce (down 6%), and
continued to weaken post quarter end. The fall across both precious metals was largely driven by ETP outflows
and weaker than expected Chinese consumption.
Platinum imports in China declined for the second straight month in May and fell 15% m/m, but rose a modest 2%
y/y. Volumes traded on the Shanghai Gold Exchange rose 50% y/y and 18% m/m in May, as local prices fell 21%
y/y. Although some positivity was seen as appetite responded to a lower price environment, concerns increased as
it was insufficient to offer a firmer cushion.
Palladium imports in China also continued to fall, declining for the eighth straight month in June. Imports fell by
27% y/y and 36% m/m, falling to their lowest level since February. Imports at 36koz takes this year’s run rate to
48.6koz from 63koz last year, and the year-to-date imports are down 30% y/y. Underlying demand from the auto
sector has softened further in recent months. Palladium has now fallen below $700/oz, to its lowest level since July
2013. ETP outflows resumed in June after a two-month hiatus, and outflows reached 106.3koz for the year.
The average Rand-Dollar exchange rate weakened during the quarter by 1.5% from R11.97 to R12.15. Since then,
the Rand has weakened further 2% in the first two week of July, and trending around a level of R12.5.
12-month individual PGM prices to 30 June 2015
Please refer to www.aquariusplatinum.com for the graph.
12-month PGM basket prices to 30 June 2015
Please refer to www.aquariusplatinum.com for the graph.
12-month ZAR price to 30 June 2015
Please refer to www.aquariusplatinum.com for the graph.
Operating Review Summary (all numbers on 100% basis)
AQUARIUS PLATINUM (SOUTH AFRICA) (PTY) LTD (Aquarius Platinum - 100%)
P&SA1 at Kroondal (Aquarius Platinum – 50%)
- 12-month rolling average DIIR per 200,000 man hours remained stable at 0.65 from the previous
quarter
- Production increased to 1,755,000 tonnes from 1,576,000 tonnes, quarter-on-quarter
- Head grade increased marginally to 2.48 g/t from 2.46 g/t
- Recoveries decreased by 1% to 79%
- Volumes processed higher at 1,775,000 tonnes
- Stockpiles at the end of the quarter totalled approximately 27,000 tonnes
- PGM production increased by 5% to 112,024 PGM ounces, quarter-on-quarter, a fourth quarter record;
- Revenue in Rand terms increased by 0.4% to R1,097 million, quarter-on-quarter, albeit after the
significant reduction in dollar prices in the last month of the quarter resulting in a negative sales
adjustment for the last month in the quarter.
- Mining cash costs decreased by 4% to R581 per tonne, due to improved volume
- Unit cost per PGM ounce decreased 4% to R9,201 per PGM ounce in line with increased production
- Kroondal’s cash margin for the period remained at 6%
Kroondal: Production, Cash Cost and Price Analysis
Please refer to www.aquariusplatinum.com for the graph.
Capital Expenditure
Kroondal
(R’000 unless otherwise stated) Total Per 4E oz
Ongoing establishment of 119,676 1,068
infrastructure
Project capital (K6 shaft) 2,012 18
Mobile equipment 36,015 321
Total 157,703 1,407
Commentary
Kroondal:
There were no fatalities during the quarter. The 12 month rolling DIIR remained stable at 0.65 from the previous
quarter but the 3 months DIIR rate improved to 0.47 from 0.70. One Section 54 instruction was issued during the
quarter.
Production at Kroondal for the quarter was up 11% to 1,755,000.
Kroondal achieved its tenth consecutive +105,000 PGM production quarter. Unit costs in Rand terms continued
to respond positively down 4% quarter on quarter and down 2% compared to the previous corresponding period
June 2014 in spite of South Africa’s inflation rate of approximately 6%.
Operations at K6 Shaft remained challenging. During the quarter the installation of two new conveyor belts and
a tip were completed, which is expected to positively impact production in coming quarters. Kwezi shaft still
have reduced ends due to poor ground conditions and continue to
mine consistently during the quarter. Simunye shaft’s TMM fleet stabilized during the quarter with the
addition of the last replacement machines. The newly installed chairlift at Simunye was licensed during
the quarter and will enhance efficiencies. Bambanani production volumes were stable during the quarter.
Recently installed chairlift are expected to be licensed during Q1 of FY16. Ventilation constraints continue
to be resolved at Kopaneng with the raise boring of the new ventilation shaft now under way.
Successful trials now completed to mitigate the treating of iron-rich ultramafic pegmatite (IRUP) ore being mined
at Kwezi have resulted in a new reagent regime being implemented. Recoveries are constant and the blending of
Kwezi ore is constant as well. The processing plants produced stably throughout the quarter.
During the quarter the Kroondal work force maintained a positive outlook with open communication channels
on all levels.
AQPSA Operating cash costs per ounce (Rand)
4E - (Pt+Pd+Rh+Au) 6E - (Pt+Pd+Rh+Ir+Ru+Au) 6E net of by-products - (Ni&Cu)
Kroondal 9,201 7,566 7,357
Kroondal mine: reconciliation of cash costs per 4E ounce
Cost per 4E ounce (Rand)
Q3 2015 Q4 2015
Total operating expenditure 10,106 10,536
Less:
Ongoing capital expenditure & mobile equipment (1,034) (1,390)
Project capex (K6 shaft) (45) (18)
Transferred from/(to) stockpile 533 73
On mine cash costs 9,560 9,201
MIMOSA INVESTMENTS (Aquarius Platinum – 50%)
- 12-month rolling average DIIR was 0.03 per 200,000 man hours worked
- Production increased by 9% to 666,170 tonnes, quarter-on-quarter
- Head grade increased by 1% to 3.67g/t, quarter-on-quarter
- Recoveries static at 78.7%
- Volumes processed increased by 7% to 662,787 tonnes
- Stockpiles at the end of the quarter marginally up at 173,984 tonnes
- PGM production increased by 5% to 60,035 PGM ounces quarter-on-quarter, a fourth quarter record
- Revenue decreased by 2% to $62 million, from $64m in the previous quarter
- Mining cash costs decreased by 4% to $72 per tonne, and costs per PGM ounce decreased slightly to $797
- Stay-in-business capital expenditure was $118 per PGM ounce for the quarter
- Gross cash profit margin for the period increased from 21% to 23%
Mimosa: Production, Cash Cost and Price Analysis
Please refer to www.aquariusplatinum.com for the graph.
Operating cash costs per ounce
Unit cash costs per PGM ounce (before by-product credits) were slightly below the previous quarter.
4E net of by-products
4E (Pt+Pd+Rh+Au) 6E (Pt+Pd+Rh+Ir+Ru+Au) (Ni, Cu & Co)
Mimosa 797 752 575
Capital expenditure
The total capital expenditure for the quarter was $7.2 million. Expenditure was incurred mainly on mobile
equipment, drill rigs and LHDs, the conveyor belt extension and down dip development.
TAILINGS OPERATION
Platinum Mile (Aquarius Platinum – 91.7%)
- Material processed decreased 14% to 1,053 million tonnes
- Head grade decreased to 0.57 g/t from 0.59 g/t – quarter on quarter
- Recoveries increased to 15%, up from 12% quarter on quarter
- Production increased to 2,773 PGM ounces as explained below
- Cash costs decreased 18% to R7,671 per PGM ounce
- Revenue was consistent at R25 million for the quarter
- Cash margin for the quarter was 14%, up from 3% in the previous quarter
The maintenance work as reported upon in the previous quarter has had the desired effect of increased plant
availability and as a result recoveries and production yields increased accordingly.
Revenue for the quarter remained consistent despite lower basket prices due to higher production.
Operating cash costs per ounce
4E net of by-products
4E (Pt+Pd+Rh+Au) 6E (Pt+Pd+Rh+Ir+Ru+Au) (Ni, Cu& Co)
Platinum Mile 7,671 6,606 6,143
MINES UNDER CARE AND MAINTENANCE
P&SA2 at Marikana (Aquarius Platinum – 50%)
Given the continuing low Rand PGM basket prices, Marikana 4 shaft, the remaining operating shaft, and the
processing plant at Marikana continue on care and maintenance until further notice.
Chromite Tailings Retreatment Plant (CTRP) (Aquarius Platinum – 50%)
This operation remains on care and maintenance.
CORPORATE MATTERS
Sale of Assets: Everest
Aquarius announced on 10 February 2015 that its subsidiary, AQPSA, had entered into an agreement to sell its
entire interest in the Everest Mine and ancillary mining and processing infrastructure and immovable properties
to Northam Platinum Limited, for an aggregate cash consideration of R450 million, to be completed in two parts,
being R400 million for the concentrator and other mining assets of Everest Mine (Part A) plus R50 million for the
Everest Mining Right (Part B). On 26 June 2015, R400 million and a further R55 million representing VAT
collected on sale of Everest (Part A) was received by Aquarius. The R55 million which forms part of the Group's
present cash will be paid out in July 2015.
Part B of the disposal process is subject to the consent of the Minister of Mineral Resources in terms of section
11 of the Mineral and Petroleum Resources Development Act. The section 11 application has been submitted to
the Department of Mineral Resources. Should the Ministerial Consent not be obtained, the first part of the
Disposal will not be unwound.
Statistical information: Kroondal P&SA1
Please refer to www.aquariusplatinum.com for the above.
Statistical information: Mimosa
Please refer to www.aquariusplatinum.com for the above.
Statistical information: Platinum Mile
Please refer to www.aquariusplatinum.com for the above.
Issued capital
At 30 June 2015, the Company had on issue: 1,505,339,079 fully paid common shares.
Substantial shareholders 30 June 2015 Number of Shares Percentage
HSBC Custody Nominees (Australia) Limited 106,668,932 7.09
HSBC Global Custody Nominee (UK) Limited (897467) 36,400,000 2.42
Primary Listing: Australian Securities Exchange (AQP.AX) Trading Information
Premium 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) Broker (ASX) Sponsor (JSE)
Barclays Euroz Securities Rand Merchant Bank
5 The North Colonnade Level 18 Alluvion (A division of FirstRand Bank Limited)
Canary Wharf 58 Mounts Bay Road, 1 Merchant Place
London E14 4BB Perth WA 6000 Cnr of Rivonia Rd and Fredman Drive,
Telephone: +44 (0) 20 7623 2323 Telephone: +61 (0) 8 9488 1400 Sandton 2196
Johannesburg South Africa
Aquarius Platinum (South Africa) (Proprietary) Ltd
100% owned
(Incorporated in the Republic of South Africa)
Registration Number 2000/000341/07
1st Floor, Block C, Rosebank Office Park, 181 Jan Smuts Avenue, Rosebank, South Africa
Postal Address: PO Box 7840, Centurion, 0046, South Africa
Telephone: +27 (0)10 001 2848
Facsimile: +27 (0)12 001 2070
Aquarius Platinum Corporate Services Pty Ltd
100% Owned
(Incorporated in Australia)
ACN 094 425 555
Level 1, Suite 6, SOUTHPOINT, 100 Mill Point Road, South Perth WA 6151, Australia
Postal Address: PO Box 485, South Perth, WA 6951, Australia
Telephone: +61 (0)8 9367 5211
Facsimile: +61 (0)8 9367 5233
Email: info@aquariusplatinum.com
28 July 2015
For further information please visit www.aquariusplatinum.com or contact:
In the United Kingdom and South Africa: In Australia:
Jean Nel Willi Boehm
+27 (0)10 001 2848 +61 (0) 8 9367 5211
Date: 28/07/2015 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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