Wrap Text
Financial and Production Results to 30 September 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 September 2013
Highlights
- EBITDA of $6.3 million up from $1.6 million in the previous corresponding period (pcp) September 2012, but down
$4 million quarter-on-quarter due to higher costs and lower recoveries at Kroondal
- Net loss after tax reduced to $10.2 million from $19.6 million in the pcp
- Attributable production increased by 9% to 84,504 4E ounces compared to the pcp and remains consistent quarter-
on-quarter - 2.6% lower
- Continued consistent production performance at Kroondal reinforces the benefits of transferring to owner
operator and the successful implementation of the revised hanging wall system
- Average PGM basket price decreased 3% for the quarter in Dollar terms but increased 5% in Rand terms due to
Rand weakness
- Cash costs at Kroondal decreased 1% per PGM ounce compared to pcp but increased 17% to R9,094 per PGM
ounce quarter-on-quarter of which 6% relates to a one off adjustment of leave provisions in the previous quarter,
3% to higher winter electricity tariffs and 4% to the annual wage increase
- Cash costs at Mimosa increased 1% per PGM ounce compared to the pcp but decreased 4% to $838 per PGM
ounce quarter-on-quarter
Q1 2014 Operating Results Summary
Kroondal Mimosa Platinum Mile
4E PGM production
Total (100% basis) 106,441 55,110 3,729
Attributable 53,220 27,555 3,729
4E basket price
R/oz 11,818 11,718
$/oz 1,183 1,133 1,173
Cash costs (4E basis)
R/oz 9,094 - 6,934
$/oz 910 838 694
Cash margin (%) 12 17 23
Stay-in-business capex
R/oz 736 - 0
$/oz 74 107 0
Commenting on the results, Jean Nel, CEO Aquarius Platinum said:
The quarter in question was yet another challenging quarter on all fronts. Despite the challenges we faced, all operations
delivered improved safety performances, and all operations delivered production results in line or above forecast. Notably,
Kroondal exceeded forecast production levels, delivering in excess of 100,000 4E ounces for the fourth consecutive quarter,
despite both concentrator plants undergoing planned maintenance during the quarter and despite the mine encountering
geological and consequential recovery problems throughout the quarter. Cost performance at Mimosa and Plat Mile was in
line and below forecast respectively, while costs at Kroondal were higher driven by the implementation of the wage increase
in July, winter electricity tariffs, which will reverse in Q2, as well as lower concentrator plant recoveries.
The credible operational performance for the quarter, and the significant reduction in the companys corporate cost base
notwithstanding, our business remains marginal at prevailing metal prices, where no improvement appears imminent.
Against this backdrop management will remain resolute in its focus on improved safety, cost and operational performance.
Tragically, post quarter end an employee, Cintiah Setuke, lost her life at Kroondal in what appears from the preliminary
investigations to be a criminal act. Kroondal security personnel apprehended a suspect and handed him over the SAPS and he
remains in custody. I join my colleagues in expressing condolences to her family and friends and Aquarius reiterates that it
renounces all acts of violence. Sadly the incident took place despite an improved safety performance at Kroondal and after
the successful launch of Kroondals safety campaign, Step-it-Up. Kroondal continues to render its full support to the
Department of Mineral Resources and the South African Police Services in the course of its investigation.
Production by mine
Quarter ended
PGMs (4E)
Sept 2013 Jun 2013 % Change Sept 2012 % Change
Kroondal 106,441 106,872 - 92,073 16
Mimosa 55,110 57,168 (4) 56,341 2
Platinum Mile 3,729 4,825 (23) 3,270 14
Total 165,280 168,865 (2) 151,684 9
Production by mine attributable to Aquarius (Operating mines)
Quarter ended
PGMs (4E)
Sept 2013 June 2013 % Change Sept 2012 % Change
Kroondal 53,220 53,436 - 46,036 16
Mimosa 27,555 28,584 (4) 28,171 2
Platinum Mile 3,729 4,825 (23) 3,270 14
Total 84,504 86,845 (3) 77,477 9
Aquarius Group quarterly attributable production (PGM ounces) to 30 September 2013
Please refer to www.aquariusplatinum.com for the graph.
Market Summary
It was another very volatile quarter for the PGM Rand Basket, with prices rising from R11,000 per PGM oz to new
all-time highs of R13,500 per PGM oz, only to fall back to R12,000 per PGM oz by the end of September. The
moves in the US$ platinum price remain dictated by moves in the gold price, which in spite of the US Federal
Reserve not tapering its quantitative easing programme and the prospect of a US default, resumed its downward
trend at the beginning of September. The debt ceiling debate may have agitated the US Federal Reserve enough
to continue with its quantitative easing programme in the short term. The Rand exchange rate has for the most
part traded around the R10/US$ level, with significant strengthening as a result of the US Federal Reserve not
tapering its quantitative easing programme, only to weaken shortly after on the concerns of strike action. The
platinum ETF buying continued at a strong pace with total global holdings up nearly 60% YTD. The ETF purchases
are absorbing excess supply but are raising longer term concerns on potential future outflows. Optimism is
growing in the European car market with registrations up 5% year-on-year, although commentators do not
expect any material growth for two years. Strong Chinese auto sales surged 21% in September beating analysts
expectations and maintaining support for palladium demand.
The average platinum price decreased by 1%, while palladium increased by 1.3% and rhodium fell by 11%
quarter on quarter. Gold fell by 6.3% on average. Platinum closed the quarter up 2.1% at $1,408 per ounce,
while palladium rose by 6% to $726 per ounce and rhodium fell by 1% to $990 per ounce over the same period.
Gold rose 5.6% to $1,327 per ounce.
Rand-Dollar exchange rate
The average Rand-Dollar exchange rate weakened during the quarter, falling by 6% from R9.41 to R9.99 to the
Dollar. Since then, it has traded in a narrow range to average R9.97 in the first two weeks of October.
The average Rand basket price for the quarter improved by 5% quarter-on-quarter, but since quarter end the
spot price has deteriorated by 4%. The Dollar weighted average group basket price deteriorated by 3% to $1,168
per 4E ounce compared to the previous quarter. The average South African basket price at AQPSAs operations
was R11,824 per PGM ounce for the period. Subsequent to the end of the quarter, the PGM basket price
consolidated to average R11,359 per PGM ounce for the first two weeks of October, recording a low of R11,202
during October.
12-month individual PGM prices to 30 Sept 2013
(US$/oz)
Please refer to www.aquariusplatinum.com for the graph
12-month PGM basket prices to 30 Sept 2013 (US$ and ZAR per
PGM basket ounce)
Please refer to www.aquariusplatinum.com for the graph
12-month ZAR price to 30 Sept 2013
(ZAR/US$)
Please refer to www.aquariusplatinum.com for the graph
Average PGM basket prices achieved at Aquarius operations
US$ per PGM Quarter ended
ounce (4E) Sept 2013 Jun 2013 % Change Sept 2012 % Change
Kroondal 1,183 1,195 (1) 1,195 (1)
Mimosa 1,133 1,217 (7) 1,148 (1)
Platinum Mile 1,173 1,169 0 1,272 (8)
Weighted Avg. 1,168 1,201 (3) 1,182 (1)
Financials
Direct comparisons with prior periods are not possible given the introduction of the International Financial
Reporting Standard 11 (IFRS11) governing the accounting for jointly controlled investments. Aquarius has
commenced accounting for its investments in Mimosa and Blue Ridge as joint ventures and accordingly is
required to apply the equity accounting method from 1 July 2013. The equity method recognises the Groups
share of net assets and contribution to profit and loss as single line items in the statement of financial position
and statement of comprehensive income. This differs from the previous approach which included each line item
First Quarter 2014: Financial and Production Results
such as revenue, cost of sales, expenses etc as part of the consolidated results. This change has not resulted in a
change to the net assets of the Group.
Whilst Aquarius after tax result remains identical under both reporting formats, it is important to note that
Aquarius reported cash position from July 2013 only reflects cash from Aquarius' joint operations (Kroondal) and
no longer includes cash held in joint ventures such as Mimosa and Blue Ridge. Aquarius net investment in
Mimosa and Blue Ridge is disclosed in the balance sheet as Investments in joint venture entities.
Results for comparative periods below have been restated to account for the change in accounting policy.
Aquarius recorded an on-mine EBITDA profit of $6.3 million for the quarter ended 30 September 2013. This
represents an increase in EBITDA of $4.7 million, a 3 fold increase compared to the previous corresponding
quarter, September 2012 (pcp). The increased result was due to a 15% increase in production at Kroondal
compared to the pcp during which time Kroondal was undergoing a transformation to an owner operated mine
and was also implementing a revised hanging wall support system. The successful implementation of both
initiatives is clearly visible in Kroondal's production record since September 2012. This is the fourth consecutive
quarter that the Kroondal mine has produced in excess of 100,000 PGM ounces.
EBITDA, Profit and Production Comparison:
Quarter ended
Sept 2013 Sept 2012 Movement
EBITDA $6.3M $1.6M $4.7M
Revenue $59.7M $58.0M $1.7M
Share of (loss)/profit from joint venture entities (note a) ($1.3M) $0.3M ($1.6M)
Aquarius Group - Net loss after tax ($10.2M) ($19.6M) $9.4M
note a:
Share of profit/(loss) from joint venture entities consists of:
EBITDA $5.3M $5.9M ($0.6M)
Other expenses ($6.6M) ($5.6M) ($1.0M)
Net (loss)/profit after tax contribution to Aquarius Group ($1.3M) $0.3M ($1.6M)
Revenue (PGM sales plus interest income of $1.3 million) was up marginally at $60 million compared to $58
million in the pcp. The increased revenue, achieved despite the lower PGM basket price, was driven by
Kroondal's 16% increase in production.
Revenue from Mimosa which is included in "share of profit/(loss) from jointly controlled entities" was lower due
to a $5.3 million negative sales adjustment incurred during the quarter.
Quarter ended
Kroondal & Platinum Mile Sep 2013 Jun 2013 Mar 2013 Dec 2012 Sep 2012
Revenue $59.4M $61.3M $64.0M $58.5M $53.7M
PGM sales adjustments $0.3M ($5.4M) $1.6M ($0.8M) $4.2M
Total revenue $59.7M $55.9M $65.6M $57.7M $57.9M
Mimosa (joint venture entity)
Revenue $33.5M $39.5M $35.3M $35.3M $35.0M
PGM sales adjustments ($5.3M) ($4.5M) ($0.4M) ($1.2M) ($5.6M)
Total revenue $28.2M $35.0M $34.9M $34.1M $29.4M
First Quarter 2014: Financial and Production Results
Production for the quarter increased 9% to 84,504 PGM ounces compared to the pcp with the majority of the
increased production coming from Kroondal. Production at joint venture entity Mimosa remained consistent.
Production comparisons Quarter ended
Sep 2013 Jun 2013 Mar 2013 Dec 2012 Sep 2012
PGM production Kroondal & Platmile 56,949 58,261 55,665 52,612 49,306
PGM production Mimosa 27,555 28,584 25,805 26,377 28,171
Total attributable production (PGM oz) 84,504 86,845 81,470 78,989 77,477
Average PGM basket price per ounce achieved
Kroondal & Platinum Mile R11,815 R11,225 R11,674 R10,903 R9,924
Kroondal & Platinum Mile $1,183 $1,193 $1,316 $1,261 $1,199
Mimosa $1,133 $1,217 $1,247 $1,213 $1,148
Total cash cost of production of $53 million was marginally lower compared to the pcp (despite a 15% increase in
production) due to a 21% weakening in the Rand/Dollar exchange rate. In Rand terms, total cash costs were 17%
higher compared to the pcp in line with increased production. On a per unit cash cost basis, Kroondal's cash
costs per ounce in Rand terms increased 1% compared to the pcp but decreased by 16% in Dollar terms due to
the weaker Rand.
Compared to the previous quarter ended June 2013, cash costs at Kroondal increased by 17% per PGM ounce in
Rand terms. This increase was driven by a reversal of leave pay provision (6%), higher winter electricity tariffs
(3%), implementation of the annual wage increase at Kroondal (4%) and lower recoveries caused by geological
complexities at Kwezi shaft mining through a sheer zone at Bambanani (2%). In Dollar terms, Kroondal's cash
costs were 11% higher compared to the last quarter ended June 2013.
Mimosas cash costs per PGM ounce increased 1% compared to the pcp but decreased 4% compared to the last
quarter ended June 2013.
Amortisation and depreciation were marginally higher at $9.7 million compared to the pcp in line with increased
production.
Administrative costs of $1.7 million were lower compared to the pcp in line with the cost reduction initiatives
taken by the Aquarius Group. Finance costs for the quarter included interest paid on borrowings of $3.0 million,
non-cash interest accretion on convertible bonds of $2.5 million and unwinding of the rehabilitation provision of
$1.0 million.
Net operating cash inflow for the quarter of $1 million comprised $60 million inflow from sales, $60 million paid
to suppliers and $1 million interest received. Development and capital expenditure for the quarter was $4
million. Net financing cash inflows of $14 million included dividends of $18 million from Mimosa, $3 million
interest paid and $1 million repayment of AQPSA lease liabilities.
The Groups cash balance was $91 million at the end of the quarter, held as follows:
AQP $62 million
AQPSA $22 million
ACS(SA) $2 million
Platmile $4 million
Ridge Mining $1 million
Total $91 million (note a)
note a
Mimosa and Blue Ridge (which Aquarius has a 50% equity interest in) are now accounted for using the equity
method. Cash held in these two entities at 30 September 2013 was $14 million and does not form part of the
above cash balances. Under the previous method of proportionately consolidating its investment in Mimosa and
Blue Ridge, 50% of this cash would have been included in Aquarius' Group cash balance.
Aquarius Platinum Limited
Consolidated Income Statement
Quarter ended 30 September 2013
$000
Quarter Quarter Financial Year
Ended Ended Ended
Note 30/09/13* 30/09/12* 30/06/13
PGM production Kroondal & Platmile 56,949 49,306 216,167
PGM production Mimosa 27,555 28,171 108,936
Total PGM production 84,504 77,477 325,103
Revenue (i) 59,660 57,975 237,115
Cost of sales (including D&A) (ii) (62,519) (63,540) (248,308)
Gross loss (2,859) (5,565) (11,193)
Other income 11 68 278
Administrative costs (iii) (1,661) (2,768) (12,786)
Foreign exchange gain/(loss) (iv) 1,967 2,744 (19,322)
Finance costs (v) (6,828) (6,304) (24,365)
Impairment losses - - (214,111)
Closure, transition and rehabilitation costs (vi) (12) (14,621) (54,538)
Share of (loss)/profit from joint venture entities (vii) (1,304) 261 (5,003)
Loss before income tax (10,686) (26,185) (341,040)
Income tax benefit (viii) 489 6,577 53,127
Net loss (10,197) (19,608) (287,913)
Net loss is attributable to:
Equity holders of Aquarius Platinum Limited (10,228) (19,628) (287,207)
Non-controlling interests (ix) 31 20 (706)
(10,197) (19,608) (287,913)
Earnings per share
Basic loss per share (cents per share) (2.17) (4.17) (61.13)
* Unaudited
Notes on the September 2013 Consolidated Income Statement
(i) The marginal increase in revenue despite a 15% increase in production reflects continued low Dollar PGM prices
and the impact of a 21% depreciation of the Rand compared to the pcp.
(ii) Lower aggregate costs in Dollar terms were recorded for cost of sales including D&A despite a 15% increase in
production due to a 21% depreciation of the Rand compared to the pcp. In Rand terms aggregate costs would
have increased by 19%.
(iii) Administration and other costs of $1.7 million are lower and in line with recent cost reduction initiatives.
(iv) The forex gain of $2 million is attributable to revaluation adjustments on 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 $3 million, non-cash interest accretion on convertible
bonds of $2.5 million and the unwinding of the rehabilitation provision of $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) Represents share of profit of Mimosa and Blue Ridge, the joint venture entities. Mimosa's contribution was
adversely impacted by a negative sales adjustment of $5.3 million.
(viii) Income tax benefit consists 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 2013
$000
Quarter Quarter Financial Year
Ended Ended Ended
Note 30/09/13* 30/09/12* 30/06/13
Net operating cash inflow/(outflow) (i) 729 (50,292) (21,448)
Net investing cash outflow (ii) (4,352) (9,152) (20,629)
Net financing cash inflow/(outflow) (iii) 13,902 (4,318) (34,364)
Net increase/(decrease) in cash held 10,279 (63,762) (76,441)
Opening cash balance 77,773 166,652 166,652
Exchange rate movement on cash 2,845 4,422 (12,438)
Closing cash balance (iv) 90,897 107,312 77,773
* Unaudited
Notes on the September 2013 Consolidated Statement of Cash Flows
(i) Net operating cash flow for the quarter includes $60 million inflow from sales, $60 million paid to suppliers and
$1 million interest received.
(ii) Comprises $4 million of development and plant and equipment expenditure at AQPSA.
(iii) Includes dividends of $18 million from Mimosa, $3 million interest paid and $1 million repayment of AQPSA
lease liabilities.
(iv) Mimosa and Blue Ridge (which Aquarius has a 50% equity interest in) are now accounted for using the equity
method. Cash held in these two entities at 30 September 2013 was $14 million and does not form part of the
above cash balances. Under the previous method of proportionately consolidating its investment in Mimosa
and Blue Ridge, 50% of this cash would have been included in Aquarius' Group cash balance.
Aquarius Platinum Limited
Consolidated Balance Sheet
At 30 September 2013
$000
As at As at
Note
30/09/13* 30/06/13
Assets
$000
Cash and cash equivalents 90,897 77,773
Current receivables (i) 35,256 33,965
Other current assets (ii) 16,190 16,181
Property, plant and equipment (iii) 101,306 105,030
Mining assets (iv) 119,277 121,695
Intangibles (v) 58,547 59,449
Investments in joint venture entities (vi) 188,049 207,299
Other non-current assets (vii) 50,529 49,327
Total assets 660,051 670,719
Liabilities
Current liabilities (viii) 27,633 26,765
Non-current payables (ix) 2,694 2,665
Non-current interest-bearing liabilities (x) 270,529 268,788
Other non-current liabilities (xi) 76,791 76,559
Total liabilities 377,647 374,777
Net assets 282,404 295,942
Equity
Issued capital 24,370 24,370
Treasury shares (27,554) (26,526)
Reserves 637,536 639,854
Accumulated losses (357,631) (347,402)
Total equity attributable to equity
holders of Aquarius Platinum Limited 276,721 290,296
Non-controlling interests (xii) 5,683 5,646
Total equity 282,404 295,942
* Unaudited
Notes on the September 2013 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, Everest, CTRP and Platmile.
(v) Includes intangibles relating to contract value acquired on the acquisition of equity interest in Platinum Mile
Resources (Pty) Ltd.
(vi) Represents the investment in Mimosa and Blue Ridge.
(vii) Includes the recoverable portion of the rehabilitation provision from Anglo Platinum of $10 million, receivables
from joint venture entities of $24 million and investments in rehabilitation trusts of $17 million.
(viii) Includes trade creditors of $22 million, AQPSA finance leases of $4 million and provision for annual leave of $1
million.
(ix) Includes rehabilitation obligations on P&SA1 and P&SA2 structures.
(x) Comprises convertible bonds of $271 million.
(xi) Includes deferred tax liabilities $2 million and provision for closure costs $75 million.
(xii) 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%)
PSA 1 at Kroondal (Aquarius Platinum 50%)
- 12-month rolling average LTIFR improved to 1.06 per 200,000 man hours from 1.14, quarter-on-quarter
- Production increased to 1,851,000 tonnes from 1,765,000 tonnes, quarter-on-quarter
- Head grade remained stable at 2.38g/t
- Recoveries deteriorated by 2% to 78%
- Volumes processed increased to 1,790,000 tonnes
- Stockpiles at the end of the quarter totalled approximately 80,000 tonnes
- PGM production marginally decreased by 0.4% to 106,441 PGM ounces, quarter-on-quarter
- Revenue increased by 15% to R1,097 million, quarter-on-quarter, due to the rand weakening
- Mining cash costs increased by 16% to R541 per tonne, due to electricity winter tariffs, fuel prices and
labour increases
- Unit cash cost per PGM ounce increased 17% to R9,094 per PGM ounce
- Kroondals cash margin for the period deteriorated from 13% to 12% due to increased costs
Production, Cash costs and Price Analysis
Please refer to www.aquariusplatinum.com for the graph
Commentary
Kroondal:
Production at Kroondal for the quarter was 1.851 million tonnes, up 5% compared to the previous quarter. One
section 54 instruction was issued by the DMR at Simunye shaft resulting in a loss of five working days.
The cost increases were driven by the implementation of the wage increase in July (4%), winter electricity tariffs
(3%) which will reverse in Q2, and the reversal of the leave pay provision in the comparative quarter (June 2013)
(6%). In addition to these expected cost increases, geological complications resulted in additional tonnes being
milled at lower recovery to achieve forecast ounces and hence increased costs. More specifically, there was a
deterioration of 2% in the level of concentrate recoveries due to the presence of the iron-rich ultramafic
pegmatite (IRUP) in the processed ore. This caused Ferrosilicone losses in the DMS thus reducing recoveries.
Samples of the IRUP ore which originates from Kwezi shaft have been sent for analysis to determine the optimal
recovery of PGM's. The full impact this has on the flotation recovery will only be determined once the full
mineralogical analysis is completed.
Further disruptions to mining were encountered at Bambanani where two thirds of the mining faces at
Bambanani are mining through a shear zone where the ore is oxidised, thus further reducing recoveries. It is
expected that the all the mining faces will be through this shear zone at the end of the next quarter.
PSA2 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.
First Quarter 2014: Financial and Production Results
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 9,094 7,475 7,301
Capital expenditure (100%)
Kroondal
(R000 unless otherwise stated) Total Per 4E oz
Ongoing establishment of infrastructure 53,185 500
Project capital (K6 shaft) 25,158 236
Mobile equipment purchased 4,633 44
Total 82,976 780
Kroondal mine: reconciliation of cash costs per 4E ounce
Cost per 4E ounce
(Rand)
Q1 2014 Q4 2013
Total operating expenditure 9,873 8,939
Less:
Ongoing capital expenditure & mobile equipment (543) (781)
Project capex (K6 shaft) (236) (316)
Transition costs (K6 shaft from contractor to own operations) 0 (96)
On mine cash costs 9,094 7,746
The K6 shaft sinking project was completed within budget and ahead of time. Development of the K6 shaft
infrastructure at Kroondal continues. The transition from underground mining contractor to Aquarius at K6 shaft
took place on 1 May 2013 and has been successfully completed.
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 0.03 per 200,000 man hours worked
- Production improved by 6% to 625,656 tonnes, quarter-on-quarter
- Head grade deteriorated slightly to 3.63 g/t
- Recoveries were 77.33%, down 1% quarter-on-quarter
- Volumes processed decreased by 2% to 611,133 tonnes
- Stockpiles at the end of the quarter totalled approximately 130,344 tonnes
- PGM production decreased by 4% to 55,110 PGM ounces, quarter-on-quarter
- Revenue decreased by 20% to $56 million, due to depressed dollar metal prices
- Mining cash costs decreased to $76 per tonne, and cash costs per PGM ounce also decreased to $838
per PGM ounce
- Stay-in-business capital expenditure was $107 per PGM ounce for the quarter
- Mimosas cash margin for the period decreased from 29% to 17% due to the 20% decrease in revenue
as mentioned above
Production, Cash costs 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) was 4% better than that achieved in the previous
quarter as a result of various cost saving initiatives being implemented across the mine.
4E 6E 4E net of by-products
(Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni, Cu & Co)
Mimosa 838 793 549
Capital expenditure
The total capital expenditure for the first quarter amounted to $6.19 million. Expenditure was incurred mainly
on mobile equipment, drill rigs and LHDs, the conveyor belt extension, down dip development, milling and
floatation project as well as primary jaw crusher refurbishment.
TAILINGS OPERATION
Platinum Mile (Aquarius Platinum 91.7%)
- Material processed increased 12% to 1,134 million tonnes, quarter-on-quarter
- Head grade decreased to 0.74 g/t
- Recoveries decreased to 14%
- Production decreased to 3,729 PGM ounces
- Cash costs increased to R6,934 per PGM ounce
- Revenue was R34 million for the quarter
- The cash margin for the period was 23%, a decrease from 27% in the previous quarter
Commentary
Platinum Mile:
Strikes and stoppages as a result of water shortages at Anglo Platinum resulted in the loss of a number of
production days for the quarter. These strikes continued into October 2013 and will also impact negatively on
production results for the ensuing quarter.
The installation of three coarse grinding mills at the operation is progressing and remains on target to come into
production within the first quarter of calendar 2014. This enhancement should yield approximately 600
additional ounces per month.
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 6,934 5,991 5,417
Chromite Tailings Retreatment Plant (CTRP) (Aquarius Platinum 50%)
This operation remains on care and maintenance.
CORPORATE MATTERS
Fatal incident at Kroondal
It is with great regret and sadness that a female employee was fatally injured in what appears to be a criminal
act whilst underground at Kroondal Platinum Mines Kwezi Shaft on 9 October 2013. A suspect was apprehended
First Quarter 2014: Financial and Production Results
by Kroondal security personnel and handed over to the SAPS and is currently being held in custody by the South
African Police Service (SAPS).
Trauma counselling has been held at the mine and has also been made available to the family of the deceased.
AQPSA's Human Resources department is in contact with the family and is assisting with any required
arrangements. AQPSA has extended an offer to the family to recruit a family member to provide further
assistance and support.
Aquarius deplores any incidence of violence. The company will work closely with the SAPS, the Department of
Mineral Resources and employee representatives to support her family and to assist with the investigation.
More information on corporate matters can be found at www.aquariusplatinum.com
Statistical information: Kroondal PSA1
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 de Bruyn Sebotsa Non-executive
Audit/Risk Committee
David Dix (Chairman)
Edward Haslam
Tim Freshwater
Kofi Morna
Nicholas Sibley
Remuneration Committee
Edward Haslam (Chairman)
David Dix
Zwelakhe Mankazana
Nicholas Sibley
Nomination Committee
Sonja de Bruyn Sebotsa (Chairman)
Edward Haslam
Tim Freshwater
Kofi Morna
Willi Boehm
First Quarter 2014: Financial and Production Results
Company Secretary
Willi Boehm
AQPSA Management
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 September 2013, the Company had on issue: 486,851,336 fully paid common shares and 120,000 unlisted options.
Substantial shareholder 30 September 2013 Number of Shares Percentage
Wellington Management Company 45,475,688 9.34
The Capital Group Companies 37,117,112 7.62
HSBC Custody Nominees (Australia) Limited 31,277,455 6.42
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) (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 58 Mounts Bay Road, Limited)
London EC2Y 9LY Perth WA 6000 1 Merchant Place
Telephone: +44 (0) 20 3100 2000 Telephone: +61 (0) 8 9488 1400 Cnr of Rivonia Rd & Fredman Drive,
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)
First Quarter 2014: Financial and Production Results
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
ACS 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
Date: 24/10/2013 08:00:00 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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