Wrap Text
Financial and Production Results to 30 June 2013
Aquarius Platinum Limited
(Incorporated in Bermuda)
Registration Number: EC26290
Share Code JSE: AQP
ISIN Code: BMG0440M1284
Aquarius Platinum Limited
Financial and Production Results to 30 June 2013
Highlights
- Wage agreements reached at Kroondal - agreements provide for an on average increase which slightly exceeds the
increase in the cost of living as measured by the inflation rate (CPI-X)
- Extension to Kroondal PSA agreement concluded life of mine extended by approximately 3 years to 9.5 years
- Average PGM basket price decreased 8% for the quarter in Dollar terms
- Cash costs at Kroondal decreased 7% to R7,746 per PGM ounce quarter-on-quarter and decreased 5% compared
to pcp
- Cash costs at Mimosa remained constant at $871 per PGM ounce quarter-on-quarter but increased 13% compared
to pcp
Q4 2013 Operating Results Summary
Kroondal Mimosa Platinum Mile
4E PGM production
Total (100% basis) 106,872 57,168 4,819
Attributable 53,436 28,584 4,819
4E basket price
R/oz 11,245 n/a 11,106
$/oz 1,195 1,217 1,169
Cash costs (4E basis)
R/oz 7,746 n/a 6,228
$/oz 823 871 656
Cash margin (%) 13 29 27
Stay-in-business capex
R/oz 795 n/a -
$/oz 85 121 -
Commenting on the results, Jean Nel, CEO Aquarius Platinum said:
Aquarius stated focus on improving its operational performance continued during the quarter and delivered results in the
form of improved ounce production and cost performances across all the Groups operations. The significant improvements at
Kroondal against the backdrop of volatile regional industrial relations is particularly pleasing, with the highlights of the
quarter being the successful conclusion of wage agreements with the representing unions at Kroondal without any
operational interruptions and the extension of the Kroondal mine life by 3 years to approximately 9.5 years following an
agreement reached with Amplats, our partners at Kroondal.
The improved operational performance however was more than off-set by the significant decrease in Dollar metal prices
which, combined with an operating environment which continues to be difficult and complex, reinforces the imperative of
continued operational focus and improvements. Against this back-drop, Aquarius stated focus on operational improvements
and treasury preservation will continue unabated into the new financial year.
Production by mine
Quarter ended
PGMs (4E)
Jun 2013 Mar 2013 % Change June 2012 % Change
Kroondal 106,872 105,027 2 82,212 30
Mimosa 57,168 51,611 11 54,588 5
Platinum Mile 4,810 3,152 53 2,830 70
Marikana - - - 21,533 -
Everest - - - 15,281 -
CTRP - - - 1,732 -
Total 168,850 159,790 6 178,176 (5)
Production by mine attributable to Aquarius (Operating mines)
Quarter ended
PGMs (4E)
June 2013 Mar 2013 % Change Jun 2012 % Change
Kroondal 53,436 52,514 2 41,106 30
Mimosa 28,584 25,805 11 27,294 5
Platinum Mile 4,810 3,152 53 2,830 70
Total 86,830 81,471 7 71,230 22
Aquarius Group quarterly attributable production (PGM ounces) to 30 June 2013
Please refer to www.aquariusplatinum.com for the graph.
Market Summary
During the quarter, the PGM Rand Basket price experienced significant volatility, firstly getting dragged down to
R11,000 per oz by the fall in metal prices, then spiking back up to R13,000 per oz on a severely weakening Rand,
only to be dragged back down to R11,000 per oz by the end of the quarter. Reasons for golds dramatic price
drop (and parallel reaction in platinum) at the start and end of the quarter include the breaking through of
technical levels and a tapering of quantitative easing expectations from the US Federal Reserve. However the
movements in gold and platinum ETFs have been in opposite directions. Since mid-May over 500,000 oz have
been added to global platinum ETF holdings (35% increase) in anticipation of operational disruptions in South
Africa, while gold ETFs sold 14Moz (-18%). Auto catalyst platinum demand remains challenging with lowest
vehicle sales in May for 20 years. Jewellery demand will likely have increased with the recent USD metal price
drop but more so for gold than platinum. Primary supply remains steady with capacity cuts yet to be enacted
and relatively low amount of operational disruption apart from the continued usage of Section 54 notices.
Secondary supply from recycling is also likely to have fallen with prices.
The average platinum price decreased by 10%, while palladium decreased by 4% and rhodium decreased by 6%
quarter-on-quarter. Gold fell by 13% on average. Platinum closed the quarter down 16.3% at $1,337 per ounce,
while palladium fell by 15.8% to $659 per ounce and rhodium fell by 18.7% to $1,000 per ounce. Gold fell 23.5%
to $1,224 per ounce.
Rand-Dollar exchange rate
The average Rand-Dollar exchange rate weakened during the quarter, falling by 6% from R8.87 to R9.41 to the
USD. Since then, it has traded in a narrow range to average R10.02 in the first two weeks of July.
The average Rand basket price for the quarter decreased by 4% quarter-on-quarter, and since quarter end the
spot price has improved by 0.5%. The USD weighted average group basket price deteriorated by 8% to $1.186
per 4E ounce compared to the previous quarter. The average South African basket price at AQPSAs operations
was R11,294 per PGM ounce for the period. Subsequent to the end of the quarter, the PGM basket price
consolidated to average R11,355 per PGM ounce for the first two weeks of July, recording a low of R10,938
during July.
12-month individual PGM prices to 30 June 2013
Please refer to www.aquariusplatinum.com for the graph.
12-month PGM basket prices to 30 June 2013
Please refer to www.aquariusplatinum.com for the graph.
12-month ZAR price to 30 June 2013
Please refer to www.aquariusplatinum.com for the graph.
Average PGM basket prices achieved at Aquarius operations
US$ per PGM Quarter ended
ounce (4E) Jun 2013 Mar 2013 % Change Jun 2012 % Change
Kroondal 1,195 1,315 (9) 1,218 (2)
Mimosa 1,217 1,247 (2) 1,239 (2)
Platinum Mile 1,169 1,335 (12) 1,159 (1)
Weighted Avg. 1,201 1,295 (7) 1,224 (2)
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 LTIFR deteriorated to 1.14 per 200,000 man hours from 1.05 in the previous
quarter
- Production increased to 1,765,000 tonnes from 1,686,000 tonnes, quarter-on-quarter
- Head grade improved from 2.36 g/t to 2.38 g/t
- Recoveries deteriorated by 1% to 79%
- Volumes processed increased to 1,771,000 tonnes
- Stockpiles at the end of the quarter totalled approximately 19,000 tonnes
- PGM production increased by 2% to 106,872 PGM ounces, quarter-on-quarter
- Revenue decreased by 12% to R950 million, quarter-on-quarter, due to weaker basket prices and
negative pipeline adjustments
- Mining cash costs decreased by 7% to R467 per tonne, due to improved volumes
- Unit cash cost per PGM ounce reduced 7% to R7,746 per PGM ounce due improved volumes
- Kroondals cash margin for the period deteriorated from 20% to 13% due to lower PGM prices
Please refer to www.aquariusplatinum.com for the graph.
Commentary
Kroondal:
Production at Kroondal for the quarter was 1.765 million tonnes, up 5% compared to the previous quarter. The
improvement was achieved although the total vamping contract was cancelled during the previous quarter.
Six Section 54 stoppage instructions were issued by the Department of Mineral Resources (DMR) of which one
was lifted immediately following discussions with the relevant Principal Inspector of Mines. The remaining
Section 54 notices were dealt with through a comprehensive investigation and action plans that were presented
to the DMR.
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.
Everest Mine
Similarly the Everest mine remains on care and maintenance until further notice.
AQPSA Operating cash costs per ounce (Rand)
4E 6E 6E net of by-products
(Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni&Cu)
Kroondal 7,746 6,365 6,207
Capital expenditure (100%)
Kroondal
(R000 unless otherwise stated) Total Per 4E oz
Ongoing establishment of infrastructure 51,191 479
Project capital (K6 shaft) 33,790 316
Mobile equipment purchased 32,314 302
Total 117,294 1,098
Kroondal mine: reconciliation of cash costs per 4E ounce
Cost per 4E ounce
(Rand)
Q4 Q3
Total operating expenditure 8,939 9,331
Less:
Ongoing capital expenditure & mobile equipment (781) (612)
Project capex (K6 shaft) (316) (379)
Transition costs (K6 shaft from contractor to own operations) (96) (27)
On mine cash costs 7,746 8,312
Development of the K6 shaft infrastructure at Kroondal continues. The transition from underground mining
contractor to Aquarius took place on 1 May 2013 and has been successfully completed. The K6 shaft sinking
project was completed within budget and ahead of time.
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.
MIMOSA INVESTMENTS (Aquarius Platinum 50%)
Mimosa Platinum Mine
- 12-month rolling average DIIR improved to 0.05 per 200,000 man hours worked
- Production was static at 590,705 tonnes, quarter-on-quarter
- Head grade constant at 3.66g/t
- Recoveries were 77.90%
- Volumes processed increased by 11% to 625,541 tonnes
- Stockpiles at the end of the quarter totalled approximately 115,821 tonnes
- PGM production increased by 11% to 57,168 PGM ounces, quarter-on-quarter
- Revenue increased slightly to US$70 million, due to higher metal sales volumes
- Mining cash costs were constant at US$80 per tonne, and costs per PGM ounce were also static at $871
- Stay-in-business capital expenditure was $121 per PGM ounce for the quarter
- Mimosas cash margin for the period decreased from 34% to 25% due to primarily due to lower metal
prices
Please refer to www.aquariusplatinum.com for the graph.
Operating cash costs per ounce
Unit cash costs per PGM ounce (before by-product credits) remained at the same level as those achieved in the
previous quarter.
4E 6E 4E net of by-products
(Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni, Cu & Co)
Mimosa 871 823 533
Capital expenditure
The total capital expenditure for the fourth quarter amounted to $7.47 million. Expenditure was incurred mainly
on mobile equipment, drill rigs and LHDs; the conveyor belt extension; down dip development; housing project;
and Phase VI prefeasibility studies.
TAILINGS OPERATION
Platinum Mile (Aquarius Platinum 91.7%)
- Material processed increased 11% to 1.014 million tonnes
- Head grade increased to 0.87 g/t
- Recoveries increased to 17%
- Production increased to 4,819 PGM ounces
- Cash costs decreased to R6,220 per PGM ounce
- Revenue was R44 million for the quarter
- The cash margin for the period was 27%, an increase from 20% in the previous quarter
Commentary
Platinum Mile:
The production results for the quarter improved as a result of an increase in the tons treated and continuous
focus on improving the fine grinding efficiencies within the operation. During the quarter, the company
purchased three second hand coarse grinding mills from Anglo. These mills are in the process of being moved
and installed at the operation and should come into production within the first quarter of 2014.
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)
Platinum Mile 6,220 5,37 4,765
Chromite Tailings Retreatment Plant (CTRP) (Aquarius Platinum 50%)
This operation remains on care and maintenance.
CORPORATE MATTERS
Wage agreements reached at Kroondal
Aquarius' wholly owned subsidiary, Aquarius Platinum (South Africa) (Proprietary) Limited concluded a wage
agreement with the National Union of Mineworkers in relation to its members employed at the Kroondal mine.
The Kroondal mine currently employs approximately 8,120 people including contractors and the NUM is the
majority union at the mine, representing Kroondals Cat B, semi-skilled work force.
Post quarter, AQPSA also reached a wage agreement with Solidarity representing Kroondal's Cat A, skilled
workforce.
Both agreements provide for an on average increase which slightly exceeds the increase in the cost of living as
measured by inflation rate (CPI-X) and come into effect from 1 July 2013 and will remain in place for one year.
The successful conclusion of the wage agreement is a significant positive development for the company,
particularly in the difficult environment the platinum sector is currently experiencing. AQPSA is extremely proud
of its workforce which continued to work uninterruptedly to maintain its operating performance throughout the
negotiation process.
Extension of the Kroondal PSA
The Company reached agreement with a wholly owned subsidiary of Anglo American Platinum (Amplats) to
extend the Kroondal PSA arrangement. The agreement increases Kroondal's life-of-mine by approximately 3
years from approximately 6.5 years to approximately 9.5 years.
More information on all corporate matters can be found at www.aquariusplatinum.com
Statistical information: Kroondal P&SA1
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: Platinum Mile
Please refer to www.aquariusplatinum.com for the Statistical information.
Aquarius Platinum Limited
Incorporated in Bermuda
Exempt company number 26290
Board of Directors
Nicholas Sibley Non-executive Chairman
Jean Nel Chief Executive Officer
David Dix Non-executive
Tim Freshwater Non-executive (Senior Independent Director)
Edward Haslam Non-executive
Kofi Morna Non-executive
Zwelakhe Mankazana Non-executive
Sonja Sebotsa Non-executive
Audit/Risk Committee
David Dix (Chairman)
Edward Haslam
Tim Freshwater
Kofi Morna
Nicholas Sibley
Remuneration/Succession Planning Committee
Edward Haslam (Chairman)
David Dix
Zwelakhe Mankazana
Nicholas Sibley
Nomination Committee
Sonja Sebotsa (Chairman)
Edward Haslam
Tim Freshwater
Kofi Morna
Willi Boehm
Company Secretary
Willi Boehm
AQPSA Management
Sonja Sebotsa Non-executive Chairman
Robert Schroder Managing Director
Jean Nel Executive Director
Graham Ferreira Finance Director
Wessel Phumo General Manager: Kroondal
Mimosa Mine Management
Winston Chitando Chairman
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 June 2013, the Company had on issue: 486,851,336 fully paid common shares and 120,000 unlisted options.
Substantial shareholders 30 June 2013 Number of Shares Percentage
HSBC Custody Nominees (Australia) Limited 30,192,061 6.20
Chase Nominees Limited 29,419,456 6.04
J P Morgan Nominees Australia Limited 25,631,711 5.26
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) (Joint) Broker (ASX) Sponsor (JSE)
Liberum Capital Limited Level 18 Alluvion Rand Merchant Bank
Euroz Securities
Ropemaker Place, Level 12 (A division of FirstRand Bank Limited)
25 Ropemaker Street
58 Mounts Bay Road,
London EC2Y 9LY 1 Merchant Place
Perth WA 6000
Telephone: +44 (0) 20 3100 2000 Cnr of Rivonia Rd & Fredman Drive,
Telephone: +61 (0) 8 9488 1400
Sandton 2196
Barclays Johannesburg South Africa
5 The North Colonnade
Canary Wharf
London E14 4BB
Tel: +44 (0)20 7623 2323
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 4, Suite 5, South Shore Centre, 85 The Esplanade, 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
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
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
GoZ Government of 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 Johannesburg Stock Exchange
Kroondal Kroondal Platinum Mine or P&SA1 at Kroondal
LHD Load haul dump machine
LTIFR Lost Time Injury Frequency Rate
Marikana Marikana Platinum Mine or P&SA2 at Marikana
Mimosa Mimosa Mining Company (Private) Limited
NUM National Union of Mineworkers
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 PGMs as comprising Pt+Pd+Rh plus Au (gold)
with Pt, Pd and Rh being the most economic platinoids in the UG2 Reef
PlatMile Platinum Mile Resources (Pty) Ltd
PSA1 Pooling & Sharing Agreement between AQPSA and RPM Ltd on Kroondal
PSA2 Pooling & Sharing Agreement between AQPSA and RPM Ltd on Marikana
R or Rand 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.
RPM Limited Rustenburg Platinum Mines Limited, a subsidiary of Anglo Platinum Limited
Tonne 1 metric tonne (1,000kg)
TARP Trigger Action Response Procedure
UG2 Reef A PGE-bearing chromite layer within the Critical Zone of the Bushveld Complex
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