Wrap Text
PRODUCTION RESULTS TO 30 JUNE 2012
Aquarius Platinum Limited
(Incorporated in Bermuda)
Registration Number: EC26290
Share Code JSE: AQP
ISIN Code: BMG0440M1284
PRODUCTION RESULTS TO 30 JUNE 2012
Highlights
- Average PGM Dollar prices decreased in Q4 platinum and
palladium fell 6% and 8% respectively while rhodium fell 9%
- The Rand weakened against the US Dollar by 5% on average
quarter-on-quarter
- Attributable production for the fourth quarter increased
slightly quarter-on-quarter to 98,143 4E ounces
- Stronger production from Kroondal compared to the previous
quarter
- Marikana and Everest mines placed on care and maintenance
during the quarter
- Intermittent unlawful industrial action impacting Kroondals
Kwezi Shaft in July
Q4 2012 Operating Results Summary
Kroond Marika Everes Mimosa CTRP Plat.
4E PGM
Total (100% 82,212 21,533 15,281 54,588 1,732 2,830
Attributable 41,106 10,766 15,281 27,294 866 2,830
4E Basket
R/oz 9,799 9,977 9,811 - 9,982 9,423
$/oz 1,218 1,240 1,219 1,239 1,240 1,159
Cash Costs
R/oz 9,160 10,842 15,657 - 6,106 6,188
$/oz 1,138 1,347 1,945 740 758 761
Cash Margin -24 -49 -99 51 20 20
Stay-in-
R/oz 1,118 1,162 1,419 - - -
$/oz 139 144 176 269 - -
Commenting on the results, Stuart Murray, CEO of Aquarius Platinum
said:
The overall production figure for the fourth quarter was
marginally better than that recorded in the prior period. Although
this is a positive result, it includes the impact of winding down
and suspending operations at Marikana and Everest, and as a result
obscures the more material improvement in production volumes from
Fourth Quarter 2012: Production Results
Kroondal. We are confident that the new operational configuration
of AQPSA will enable the Company to withstand the continuing
downturn, and we expect that production from Kroondal will
continue to improve, complemented as always by robust production
from Mimosa and the modest margin contribution from our tailings
operations. Our cash reserves of US$180 million at 30 June provide
us with sufficient funds to manage our operating mines over the
next twelve months. The Everest Extension (Buttonshope)
acquisition remains outstanding pending completion of various
conditions precedent - the funding of this asset acquisition will
be considered if and when the need arises.
Unfortunately, as has been well flagged by many industry
participants, the likelihood of industrial action over the South
African winter is high, largely as a result of inter-union
rivalries. Aquarius is by no means immune to this threat, and
intermittent unlawful industrial action has occurred at one of
Kroondals four shafts in July. We are working hard to resolve
this in order to return to uninterrupted production as soon as
possible.
Production by mine
PGMs Quarter ended
(4E) June 2012 Mar 2012 % June 2011 %
Kroondal 82,212 76,935 7 89,196 -8
Marikana 21,533 26,405 -18 21,411 1
Everest 15,281 15,926 -4 26,954 -43
Blue - - - 3,021 -
Mimosa 54,588 52,053 5 55,605 -2
CTRP 1,732 1,413 23 685 153
Platinum 2,830 3,474 -19 4,694 -40
Total 178,176 176,206 1 201,566 -12
Production by mine attributable to Aquarius
PGMs Quarter ended
(4E) June 2012 Mar 2012 % June 2011 %
Kroondal 41,106 38,467 7 44,598 -8
Marikana 10,766 13,203 -18 10,705 1
Everest 15,281 15,926 -4 26,954 -43
Blue - - - 1,510 -
Mimosa 27,294 26,026 5 27,803 -2
CTRP 866 706 23 343 152
Platinum 2,830 3,474 -19 2,347 21
Total 98,143 97,802 0 114,260 -14
Fourth Quarter 2012: Production Results
Aquarius Group attributable production (PGM ounces) to 30 June
2012
Please refer to www.aquariusplatinum.com for the graph.
Market Summary
Metals prices
The prices of all of the PGMs declined relatively uniformly over
the quarter under review, becoming more volatile in June. Prices
continue to be driven lower by poor investor sentiment on the back
of the European economic malaise and evidence of slowing growth in
China. These macroeconomic factors are exacerbated by the markets
well-placed doubt that the major platinum producers will cut supply
meaningfully. Prices continued to be set largely by ETF inflows and
outflows rather than fundamental industrial demand, and surpluses
across the entire suite of metals remain in the system at present.
The average platinum price declined by 6%, while palladium and
rhodium prices fell broadly in line quarter-on-quarter, by 8% and
9% respectively. Gold fell by 5% on average. Platinum closed the
quarter down 13% at $1,428 per ounce, while palladium fell by 12%
to $578 per ounce and rhodium by 11% to $1,250 over the same
period. Gold fell 5% to $1,577 per ounce.
Rand-Dollar exchange rate
The average Rand-Dollar exchange rate weakened during the quarter,
falling by 5% from R7.76 to R8.12 to the US dollar, largely
tracking Euro weakness. The Rand closed the quarter 8% weaker at
R8.24 to the Dollar.
The average Rand basket price fell by 5% quarter-on-quarter, and
the spot price by 5% over the period. The US Dollar weighted
average group basket price decreased by 5% to $1,225 per 4E PGM
ounce compared to the previous quarter. The average South African
basket price at AQPSAs operations was R9,843 per PGM ounce for
the period.
Please refer to www.aquariusplatinum.com for the following graphs:
12-month individual PGM prices to June 2012
12-month PGM basket prices to June 2012
12-month Rand-Dollar exchange rate to June 2012
Average PGM basket prices achieved at Aquarius operations
US$ per Quarter ended
PGM
ounce % %
(4E) Jun 2012 Mar 2012 Change Jun 2011 Change
Fourth Quarter 2012: Production Results
Kroondal 1,218 1,321 -8 1,519 -20
Marikana 1,240 1,330 -7 1,523 -19
Everest 1,219 1,311 -7 1,484 -18
Blue - - - 1,511 -
Mimosa 1,239 1,199 3 1,392 -11
CTRP 1,240 1,425 -13 1,636 -24
Platinum 1,159 1,338 -13 1,487 -22
Weighted 1,225 1,289 -5 1,480 -17
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 1.20 per 200,000
man hours from 1.08 in the previous quarter
- Production increased to 1,374,000 tonnes
Head grade deteriorated from 2.39 g/t to 2.38 g/t
- Recoveries improved by 2%
- Volumes processed increased to 1,356,000 tonnes
- Stockpiles at the end of the quarter totalled approximately
37,000 tonnes
- PGM production increased by 7% to 82,212 PGM ounces
- Revenue deteriorated by 20% to R605 million quarter-on-quarter
due to lower basket prices and the resulting negative sales
adjustment
- Mining cash costs increased by 3% to R555 per tonne, and costs
per PGM ounce by 2% to R9,160
- Kroondals cash margin for the period deteriorated from 9% to -
24%
P&SA2 at Marikana (Aquarius Platinum 50%)
- 12-month rolling average DIIR improved to 0.47 per 200,000 man
hours from 0.50 in the previous quarter
- Production decreased by 36% to 316,000 tonnes
- Head grade increased by 14% to 2.51 g/t
- Recoveries increased by 9% to 81%
- Volumes processed decreased by 34% to 330,000 tonnes
- PGM production decreased by 18% to 21,533 ounces
- Revenue decreased by 41% to R156 million quarter-on-quarter, due
to lower production as well as lower basket prices and the
resulting negative sales adjustment
- Mining cash costs increased by 28% to R708 per tonne, and costs
per PGM ounce by 3% to R10,842
- Marikanas cash margin deteriorated from -5% to -49%
Everest Mine (Aquarius Platinum 100%)
- 12 month rolling DIIR deteriorated to 2.24 per 200,000 man hours
from 2.01 in the previous quarter
- Production decreased by 12% to 269,000 tonnes
Fourth Quarter 2012: Production Results
- Head grade improved from 2.10 g/t to 2.16 g/t
- Recoveries remained stable at 79%
- Volumes processed decreased by 7% to 278,000 tonnes
- PGM production decreased by 4% to 15,281 PGM ounces
- Revenue decreased by 29% compared to the previous quarter to
R120 million
- Mining cash costs increased by 19% to R861 per tonne, and costs
per PGM ounce increased by 16% to R15,657
- Everests cash margin deteriorated from -27% to -99%
Commentary
Kroondal: Production at Kroondal improved over the quarter under
review, but remained disrupted by the current hangingwall support
regime. Plans were put in place to rectify this issue after the
quarter end, as disclosed in the operational update on 4 July.
Production at Kroondal is expected to trend back towards full
capacity by the end of the calendar year.
Unlawful strike action has occurred intermittently at Kroondals
Kwezi Shaft during July, accompanied by incidents of intimidation
and violence as a result of the continuing tensions between rival
mining unions on the Western Limb of the Bushveld. Kwezi Shaft
accounts for approximately 25% of Kroondals production and to
date approximately 100,000 tonnes have been lost in the July
production month. AQPSA is in the process of obtaining a second
court order to end the strike and dismiss the instigators.
Marikana: As disclosed during the quarter, the remaining shaft
(No. 4 Shaft) and the processing plant at Marikana have been
placed on care and maintenance until further notice, as a result
of the current low Rand basket prices.
Everest: As disclosed during the quarter, the Everest mine has
been placed on care and maintenance until further notice, as a
result of the current low Rand basket prices, temporary geological
problems and unstable labour relations.
AQPSA Operating costs per ounce
4E 6E 6E net of by-
(Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni&Cu)
Kroondal 9,160 7,520 7,391
Marikana 10,842 8,887 8,663
Everest 15,657 12,875 12,418
Capital expenditure
Kroondal Marikana Everest
(R000 unless Per 4E Per 4E Per 4E
otherwise stated) Total oz Total oz Total oz
Ongoing
Infrastructure
Establishment 52,011 633 25,023 1,162 18,837 1,233
Project Capital 39,902 485 - - 2,840 186
Fourth Quarter 2012: Production Results
Mobile Equipment 64,623 786 (31,297) (1,453) - -
Total 156,536 1,904 (6,274) (291) 21,676 1,419
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 continues to keep the
maintenance capital expenditure required by its operating mines up
to date.
The Mobile Equipment Capital is being financed through a lease
agreement over the life of the equipment.
MIMOSA INVESTMENTS (Aquarius Platinum - 50%)
Mimosa Platinum Mine
- 12-month rolling average DIIR deteriorated to 0.25 per 200,000
man hours
- Production decreased slightly by 0.14% to 539,446 tonnes
- Head grade was almost static at 3.66 g/t
- Recoveries improved to 77.26%
- Volumes processed increased by 4% to 599,584 tonnes
- Stockpiles at the end of the quarter totalled approximately
84,372 tonnes
- PGM production increased by 5% to 54,588 PGM ounces
- Revenue increased by 37% to US$81 million due to higher metal
sales and prices achieved during the quarter
- Mining cash costs decreased by 6% to US$67 per tonne, and costs
per PGM ounce by 7% to $740
- Stay-in-business capital expenditure was $269 per PGM ounce for
the quarter
- Mimosas cash margin for the period rose from 31% to 50% due to
higher sales revenue
Commentary
The Mimosa mine continues to operate well. Discussions are ongoing
with various regulatory bodies in relation to the indigenisation
process as well as the increased mining fees and royalties. There
have been no material developments since the date of the Companys
last disclosure. Following the agreement between Mimosa and ZESA
(the power utility company) reached in late March guaranteeing
uninterrupted power supply of 20MW for the next five years, Mimosa
has experienced no issues with electricity supply. Quarterly
meetings are being held with ZESA senior management to discuss
potential power disruptions and ways to improve reliability of
power supply.
Operating cash costs per ounce
Unit cash costs per PGM ounce (before by-product credits) were 7%
lower than those achieved in the previous quarter mainly due to
higher metal production and stringent cost control measures.
Fourth Quarter 2012: Production Results
4E net of by-
4E 6E
products
(Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au)
(Ni, Cu & Co)
Mimosa 740 700 392
Capital Expenditure
The total capital expenditure for the fourth quarter increased
from $12.0 million in the third quarter to $15.2 million, mainly
due to housing projects.
TAILINGS OPERATIONS
Chromite Tailings Retreatment Plant (CTRP) (Aquarius Platinum -
50%)
- Material processed decreased 9% to 82,000 tonnes
- Head grade increased to 2.91 g/t
- Recoveries increased from 18% to 22%
- Production increased to 1,732 PGM ounces
- Cash costs decreased by 3% to R6,106 per PGM ounce
- Revenue was R13 million for the quarter
- CTRP's cash margin for the period was 20%, a decrease from
25% in the previous quarter
Platinum Mile (Aquarius Platinum 91.7%)
- Material processed increased 21% to 1,225 million tonnes
- Head grade marginally increased to 0.54 g/t
- Recoveries decreased to 13%
- Production decreased to 2,830 PGM ounces
- Cash costs increased marginally to R6,188 per PGM ounce
- Revenue was R19 million for the quarter
- The cash margin for the period was 20%, a decrease from 25%
in the previous quarter
Commentary
CTRP: A project to install a thickener at the plant has been
started. This should result in finer material being presented to
the fine grind mill to improve recoveries. Metallurgical test work
on the effects of grinding on recoveries has been completed and
the results are due to be presented to the Management Board for
approval.
Platinum Mile: During the quarter three used coarse grinding mills
were purchased from Anglo Platinum for R10 million. The civil and
electrical design work has commenced and these mills should come
into operation in February 2013. The coarse grinding circuit
should yield an additional 480 ounces per month and the total
capital cost for this expansion is expected to be around R20
million. The timing of treating Kroondal tailings at the operation
is being revisited in the current difficult economic climate.
Different processing and funding alternatives are being evaluated.
Operating cash costs per ounce
Fourth Quarter 2012: Production Results
4E net of by-
4E 6E
products
(Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au)
(Ni, Cu& Co)
CTRP 6,106 5,849 5,750
Platinum 6,188 5,334 4,763
Statistical Information: Kroondal P&SA1
Please refer to www.aquariusplatinum.com for the Statistical
Information.
Statistical Information: Marikana P&SA2
Please refer to www.aquariusplatinum.com for the Statistical
Information.
Statistical Information: Everest
Please refer to www.aquariusplatinum.com for the Statistical
Information.
Statistical Information: Mimosa
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
Mine Closures
As disclosed during the quarter, the Marikana and Everest mines
were placed on care and maintenance with immediate effect, pending
a sustained improvement in Rand PGM prices. Please see extensive
separate disclosures in this regard.
Change to Owner Operator
Fourth Quarter 2012: Production Results
As disclosed shortly after the quarter end, AQPSA and its mining
contractor, M&RC, mutually agreed to terminate their contract
mining arrangements. AQPSA will become the Owner Operator of the
Kroondal Mine following a handover period which will conclude at
the end of 2012. The transition to Owner Operator will be
facilitated by Partners in Performance. The Owner Operator model
will be rolled out at AQPSAs other mines as they are brought back
into production. Please see the Operational Update released on 4
July 2012 for more detail in this regard.
Management Changes
Robert Schroder has been appointed as Managing Director of AQPSA
with immediate effect. Rob was previously Director: Projects for
AQPSA, and prior to that he was MD of Shaft Sinkers (Pty) Ltd. As
a result of the mine closures and as part of the process of moving
to Owner Operator, several other management changes have become
necessary. These are in the process of being finalised.
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
Stuart Murray Chief Executive Officer
Jean Nel Executive: Commercial
David Dix Non-executive
Tim Freshwater Non-executive
Edward Haslam Non-executive
Sir William Purves Non-executive (Senior Independent Director)
Kofi Morna Non-executive
ZwelakheMankazana 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
ZwelakheMankazana
Nicholas Sibley
Nomination Committee
The full Board comprises the Nomination Committee
Company Secretary
Fourth Quarter 2012: Production Results
Willi Boehm
AQP Management
Jean Nel Executive: Commercial
Gavin Mackay Executive: Business Development &
Communications
AQPSA Management
Stuart Murray Executive Chairman
Robert Schroder Managing Director
Jean Nel Director: Commercial
Graham Ferreira General Manager: Finance, Admin & Company
Secretary
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 to be updated Anne
At 30 June 2012, the Company had in issue: 470,312,578 fully paid
common shares and 120,000 unlisted options.
Substantial Shareholders 30 June Number of Percentage
Savannah Resources Limited 34,004,767 7.23
State Street Nominees Limited 33,355,185 7.09
JP Morgan Nominees Australia 31,079,384 6.61
National Nominees Limited 26,611,322 5.66
Case Nominees Limited 26,444,397 5.62
Main Australian Securities Trading Information
Listing: Exchange (AQP.AX)
Secondary London Stock Exchange ISIN number
Listing: (AQP.L) BMG0440M1284
Secondary JSE Limited (AQP.ZA) ADR ISIN number
Listing: US03840M2089
Convertible Bond ISIN
number XS0470482067
Broker (LSE) (Joint) Broker (ASX) Sponsor (JSE)
Fourth Quarter 2012: Production Results
Liberum Capital Euroz Securities Rand Merchant Bank
Limited Level 18 Alluvion (A division of
City Point, 1 58 Mounts Bay FirstRand Bank
Ropemaker Street, Road, Limited)
London, EC2Y 9HT Perth WA 6000 1 Merchant Place
Telephone: +44 (0) Telephone: +61 (0) Cnr of Rivonia Rd
20 3100 2000 8 9488 1400 and Fredman Drive,
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 Australia
Willi Boehm
+61 (0) 8 9367 5211
In the United Kingdom and South Africa
Gavin Mackay
gavin.mackay@aquariusplatinum.com
+ 44 7909 547 042
Glossary
A$ Australian Dollar
Aquarius or AQP Aquarius Platinum Limited
APS Aquarius Platinum Corporate Services (Pty) Ltd
AQPSA Aquarius Platinum (South Africa) (Pty) Ltd
Fourth Quarter 2012: Production Results
ACS(SA) AquariusPlatinum (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
Fourth Quarter 2012: Production Results
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
Run of mine.The ore from mining which is fed
ROM 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: 23/07/2012 08:19:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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