Wrap Text
Aquarius Platinum Limited
(Incorporated in Bermuda)
Registration Number: EC26290
Share Code JSE: AQP
ISIN Code: BMG0440M1284
OPERATIONAL UPDATEA
AquariusA PlatinumA LimitedA (AquariusA orA theA Company)A isA pleasedA toA provideA theA
followingA updateA onA itsA business,A aheadA ofA anA investorA andA equityA analystA siteA visitA toA itsA
KroondalA mineA toA beA conductedA today.A A
TheA BoardA ofA AquariusA isA endeavouringA toA pro-activelyA manageA theA businessA ofA theA CompanyA
toA dealA effectivelyA andA responsiblyA withA theA continuingA difficultA tradingA conditionsA facingA theA
platinumA industryA inA SouthA Africa.A TheA BoardA hasA alsoA recentlyA approvedA theA CompanysA
budgetA forA theA 2013A financialA year.A InA keepingA withA theA policiesA ofA theA Company,A theA budgetA
isA focusedA onA cashA conservationA andA theA preservationA ofA theA CompanysA reservesA andA
resourcesA untilA economicA circumstancesA meritA theirA extraction.A AsA aA result,A severalA materialA
alterationsA haveA beenA madeA toA theA operatingA configurationA ofA theA CompanyA toA betterA enableA
itA toA endureA theA currentA economicA environment.A SomeA ofA theseA changesA haveA beenA disclosedA
previously,A whileA someA areA setA outA hereA forA theA firstA time.A TheyA areA summarisedA asA follows,A
withA furtherA detailA setA outA below:A
AquariusA PlatinumA (SouthA Africa)A (Pty)A LtdA (AQPSA)A andA MurrayA &A RobertsA
CementationA (M&RC)A haveA mutuallyA agreedA toA terminateA theirA contractA miningA
agreement,A andA asA aA resultA AQPSAA willA becomeA anA OwnerA Operator,A toA ensureA
maximumA futureA costA controlA andA flexibility;A
Kroondal,A MimosaA andA theA tailingsA operationsA willA beA optimisedA toA maximiseA cashA
flowA generation;A
BlueA Ridge,A MarikanaA andA EverestA haveA beenA placedA onA careA andA maintenance;A andA
AllA non-essentialA capitalA expenditureA willA beA suspended.A
OutlookA andA contextA
MaterialA surplusesA ofA PGMsA andA ofA platinumA inA particularA areA likelyA toA persistA inA theA shortA toA
mediumA termA andA asA aA resultA PGMA pricesA inA bothA RandA andA USA DollarA termsA areA likelyA toA
remainA stagnant,A whileA operatingA costsA areA expectedA toA continueA toA riseA atA historicalA rates.A
TheA BoardA believesA thatA inA thisA environment,A theA onlyA defensibleA strategyA isA toA cutA allA non-
essentialA capitalA expenditure,A andA placeA allA non-contributingA assetsA onA careA andA maintenanceA
whileA optimisingA profitableA operationsA forA maximumA contributionA inA theA currentA lowA priceA
environment.A ThisA includesA takingA backA controlA ofA operatingA costs.A A
TerminationA ofA ContractA MiningA AgreementA
TheA CompanysA SouthA AfricanA operatingA subsidiary,A AQPSA,A andA M&RCA haveA mutuallyA agreedA
toA terminateA theirA contractA miningA agreement.A ThisA decisionA hasA beenA promptedA byA severalA
factorsA includingA theA recentA downsizingA ofA theA businessA ofA AQPSA,A theA changingA industrialA
relationsA landscapeA inA SouthA AfricaA andA theA continuingA marginA pressureA facedA byA theA
platinumA industry.A
AsA aA result,A AQPSAA willA becomeA anA OwnerA OperatorA withA effectA fromA 21A SeptemberA 2012,A
withA theA fullA supportA andA assistanceA ofA M&RCA duringA aA sixA monthA transitionA periodA whichA isA
expectedA toA beA concludedA byA theA endA ofA DecemberA 2012.A InA anticipationA ofA thisA changeA toA itsA
businessA model,A AQPSAA appointedA PartnersA inA PerformanceA (PIP)A inA AprilA 2012A toA assistA itA
inA planningA theA transitionA toA ownerA operatedA mining.A AQPSAA andA PIPA haveA completedA anA
eightA weekA consultationA andA planningA process,A andA PIPA willA supportA withA implementation.A
PIPA isA aA globalA firmA ofA operationalA improvementA consultantsA focusedA onA theA resourcesA
industryA whoA haveA considerableA experienceA inA successfulA operationsA insourcing.A A PIPA helpsA
clientsA increaseA throughput,A lowerA costsA andA optimiseA capitalA projects.A A
TheA transitionA toA ownerA operatedA miningA isA expectedA toA incurA once-offA costsA ofA
approximatelyA R190A millionA relatingA principallyA toA theA purchaseA ofA miningA equipmentA andA
storesA inventoryA fromA M&RC.A AQPSAA managementA furtherA expectsA thatA thisA changeA willA
resultA inA significantA ongoingA operatingA costA savingsA suchA thatA theA paybackA periodA for theA
once-offA costsA willA beA approximatelyA oneA year.A ThisA transitionA willA initiallyA onlyA affectA
Kroondal,A asA theA onlyA remainingA operationalA SouthA AfricanA mine,A whichA reducesA theA
administrativeA burdenA toA someA degree.A TheA transitionA toA ownerA operatedA miningA isA notA
expectedA toA significantlyA impactA productionA volumes.A
KroondalA A
AdjustmentsA toA theA hangingwallA supportA regimeA areA expectedA toA enableA KroondalA toA returnA
toA itsA consistentA cycleA ofA 3A blastsA perA day,A withoutA compromisingA safety.A ThisA willA enableA
KroondalA toA returnA toA fullA productionA capacity,A therebyA improvingA unitA costsA andA cashflowA
generation.A A
MarikanaA
AsA disclosedA previously,A theA lastA remainingA shaftA inA operationA atA Marikana,A 4A Shaft,A hasA nowA
beenA placedA onA careA andA maintenance,A togetherA withA theA MarikanaA concentratorA plant.A AsA
groundA conditionsA atA MarikanaA areA moreA complexA thanA thoseA atA Kroondal,A theA additionalA
hangingwallA supportA requiredA inA thisA mineA relativeA toA KroondalA isA moreA costly,A andA asA aA resultA
itA hasA provenA difficultA forA 4A ShaftA toA contributeA positivelyA inA theA currentA lowA priceA
environment.A A
AquariusA isA pleasedA toA beA ableA toA informA theA marketA thatA effortsA toA minimiseA jobA lossesA
associatedA withA theA closureA ofA MarikanaA haveA beenA fruitful,A withA approximatelyA 75%A ofA
employeesA successfullyA placedA inA otherA organisations.A
TheA attributableA costA ofA closureA isA nowA estimatedA toA beA approximatelyA R19A million,A andA
ongoingA attributableA careA andA maintenanceA costsA areA estimatedA toA beA approximatelyA R12A
millionA perA quarter.A A
EverestA
AsA disclosedA previously,A theA ramp-upA atA EverestA hasA encounteredA challengesA resultingA fromA
poorA groundA conditionsA andA disruptiveA industrialA relations,A andA asA aA resultA itA isA uneconomicA
inA theA currentA lowA priceA environment.A ItA hasA thereforeA beenA decidedA toA placeA theA mineA onA
careA andA maintenance,A pendingA betterA prices.A DuringA theA periodA thatA theA mineA remainsA onA
careA andA maintenance,A someA limitedA drillingA andA designA workA willA continue,A inA orderA toA
facilitateA theA implementationA ofA theA EverestA expansionA projectA intoA theA ButtonshopeA
(BooysendalA South)A propertyA inA dueA course.A A
TheA costA ofA closureA isA estimatedA toA beA approximatelyA R157A million,A andA ongoingA careA andA
maintenanceA costsA areA estimatedA toA beA approximatelyA R23A millionA perA quarter.A A
MimosaA
DespiteA government-administeredA costA increasesA andA risingA labourA andA electricityA costs,A
MimosaA continuesA toA operateA well,A andA remainsA significantlyA profitable.A A
FollowingA theA undergroundA fireA thatA occurredA inA MayA inA whichA noA injuriesA were recorded,A
miningA operationsA haveA recommencedA aheadA ofA scheduleA andA PGMA concentrateA productionA
hasA remainedA onA budgetA throughout.A A
TheA IndigenisationA processA continuesA toA beA negotiated.A AquariusA currentlyA continuesA toA ownA
50%A ofA Mimosa,A andA theA assetA continuesA toA contributeA meaningfullyA toA theA cashA flows ofA
Aquarius,A andA itA isA expectedA toA continueA toA doA so.A TheA relationshipA betweenA MimosaA andA theA
GovernmentA ofA ZimbabweA isA good,A andA negotiationsA continueA withA respectA toA aA futureA saleA
ofA aA stakeA inA MimosaA toA indigenousA ZimbabweanA partiesA forA fairA value.A A
TailingsA operationsA
PlatinumA MileA andA CTRPA areA bothA operatingA well,A andA bothA areA profitable.A CertainA expansionsA
areA currentlyA beingA implementedA whichA will,A uponA commissioning,A resultA inA improvedA
efficienciesA andA increasedA productionA levelsA atA littleA extraA cost.A
CurrentA tradingA
AquariusA hasA producedA 412,594A 4EA ozA (subjectA toA finalA assays)A onA anA attributableA basisA inA theA
yearA toA 30A JuneA 2012.A TheA CompanyA hasA substantialA cashA onA itsA balanceA sheetA atA present,A andA
theA budgetA forA theA 2013A financialA yearA andA theA actionsA describedA inA thisA tradingA updateA haveA
beenA designedA toA conserveA thisA cashA balanceA andA allowA theA CompanyA toA maximiseA cashA
flows.A A
ItA isA expectedA thatA AquariusA willA produceA approximatelyA 327,500A 4EA ozA onA anA attributableA
basisA inA FY2013,A andA thatA theA CompanyA willA remainA EBITDAA positiveA andA beA cashA flowA positiveA
afterA theA expenditureA ofA maintenanceA capitalA atA RandA PGMA pricesA ofA R10,300A perA 4EA ozA andA
above.A A A
StuartA Murray,A CEOA ofA Aquarius,A said:A
TheA BoardA andA managementA ofA AquariusA areA acutelyA awareA ofA theA difficultiesA facingA theA
industryA atA present,A andA areA monitoringA theA businessA andA financialA healthA ofA theA CompanyA asA
closelyA asA weA haveA alwaysA done.A WeA believeA thatA theA measuresA weA haveA outlinedA todayA andA
overA theA pastA fewA weeksA onceA againA demonstrateA ourA commitmentA toA controllingA ourA ownA
destinyA whileA carefullyA husbandingA ourA assetsA onA behalfA ofA shareholdersA andA therebyA
ensuringA theA survivalA ofA theA CompanyA inA theseA extremelyA difficultA times.A A
OurA partnershipA withA M&RCA hasA beenA aA longA one,A butA weA areA agreedA thatA theA contractA miningA
modelA hasA becomeA difficultA toA makeA workA inA theA contextA ofA theA SouthA AfricanA miningA
environment.A WeA areA gratefulA toA M&RCA andA toA PIPA forA theirA assistanceA inA whatA weA expectA toA
beA aA smoothA transitionA toA OwnerA Operator.A A
IA alsoA noteA thatA weA seemA toA beA oneA ofA theA fewA companiesA inA theA platinumA industryA that isA
willingA pro-activelyA toA takeA theA requiredA toughA decisionsA toA closeA theA minesA thatA needA toA beA
placedA onA careA andA maintenance.A IA wouldA hopeA thatA theA otherA industryA playersA followA suitA andA
cutA theA unneededA productionA thatA isA depressingA theA industry.A
ForA furtherA informationA pleaseA contact:A
A
InA theA UnitedA KingdomA
GavinA MackayA
+44A 7909A 547A 042A
A
InA Australia:A InA SouthA Africa:A
WilliA BoehmA StuartA MurrayA
AquariusA PlatinumA CorporateA ServicesA +27A (0)A 11A 656A 1140A
+61A 8A 9367A 5211
4 July 2012
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 04/07/2012 08:20:00 Supplied by www.sharenet.co.za
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