Wrap Text
Financial Results for the six months ended 31 December 2013
Aquarius Platinum Limited
(Incorporated in Bermuda)
Registration Number: EC26290
Share Code JSE: AQP
ISIN Code: BMG0440M1284
Financial Results for the six months ended 31 December 2013
Key Points: Financial
- Revenue decreased by 2% to $113 million (H1 2013: $116 million)
- Mine operating net cash flow increased by $62 million to a $5 million inflow (H1 2013: outflow of $57 million)
- Mine EBITDA increased by 55% to $10 million (H1 2013: $6.5 million)
- Group cash balance at period end of $83 million
Key Points: Operational
- Group attributable production increased by 7% to 168,014 PGM ounces (H1 2013: 156,787 PGM ounces)
- The average US Dollar PGM Basket Price was 5% lower compared to the previous corresponding period (pcp) December
2012
- The average Rand Basket Price increased by 13% compared to the pcp due to a weaker Rand
- The Rand weakened by 19% on average against the US Dollar compared to the pcp
- On-mine unit cash costs in South Africa increased by 2% in Rand terms compared to the pcp
- Mimosa performed strongly again, continuing to produce at capacity but impacted by a low PGM Dollar price, with cash
costs down 1% compared to the pcp
Key Points: Strategic
- Kroondal exceeded 105,000 PGM ounces for 4 consecutive quarters - with a strong and focused team
- Disposal of non-core assets subsequent to half-year end
Commenting on the results, Jean Nel, CEO of Aquarius Platinum said:
Aquarius’ performance during the period tells two very different stories, a credible operational performance and delivery on
safety, production and cost improvements, wrapped in a very difficult macro environment, specifically regulatory, metal
price and industrial relations environment.
During the period under review Aquarius delivered on its stated focus of improving operational performance across all
operations, including safety performance, production levels and unit cash costs.
Despite many challenges Kroondal is now consistently producing at levels higher than at any time in its 10 year history,
having recorded production in excess of 105,000 4E ounces for 4 consecutive quarters, whilst at the same time improving its
safety performance and recording unit cash costs at levels similar to 24 months ago. Maintaining cost increase at below
inflation levels for 2 years represents concrete delivery, which the operational team at Kroondal should be credited for. The
dedicated and stable work force at Kroondal should also be commended for partnering with management to ensure
continued uninterrupted production at Kroondal during the half-year.
At Mimosa production continued to be in line with guidance whilst cash costs continue to reduce steadily in real terms. As is
the case at Kroondal unit cash costs at Mimosa has increased at a rate well below inflation over the course of the last 2 years.
Mimosa’s best in class safety performance was also maintained during the period.
Platinum Mile delivered a credible operational performance in the half-year, and would have outperformed significantly had
it not suffered interruptions in its plant concentrate feed during Q2.
Contrasting the credible operating performance is a challenging and complex macro environment. Our primary concerns in
this regard include Dollar metal prices lower by 5% from the same time last year, despite the primary deficit in PGM metal
markets during the 2013 calendar year which is forecast to increase in 2014.
In addition, the prevailing regulatory uncertainty in South Africa and Zimbabwe and the precarious state of the South African
industrial relations environment continue to make longer term production planning and capital allocation difficult.
In summary Aquarius is well aware that the credible operational performance recorded in the half-year notwithstanding, no
value was created for our shareholders, and that the company’s shareholders is the only stakeholder which has not benefited
from the company’s activities during the period, and preceding periods. The company will resolutely persist in its pursuit to
reverse this by focussing on continued improvements in safety, production and critically cash costs.
Aquarius has commenced accounting for its investments in Mimosa and Blue Ridge using the equity accounting
method from 1 July 2013.
Financial results: Half-Year to 31 December 2013
Aquarius’ consolidated result for the half-year ended 31 December 2013 was a loss of $24 million (5.11 cents per share).
Profitability at mine level (on-mine EBITDA) was $10 million, up 55% compared to $6 million in the pcp. The half-year result
reflects continued improvement of operational performance at all operating mines - be it in a difficult and lower PGM price
environment. Total production from all Aquarius operations for the six months to December 2013 was 330,702 PGM ounces,
representing a 7% increase compared to the half-year ended December 2012. Production attributable to Aquarius increased
7% to 168,014 PGM ounces for the half-year compared to the pcp.
Headline Earnings, Profit & Production Half-Year Comparison (HY Dec 2013 & HY Dec 2012)
HY Dec HY Dec %
Movement
2013 2012 Change
Headline earnings ($22M) ($56M) $34M 61%
Mine EBITDA $10M $6M $4M 55%
Impairment ($2M) ($115M) ($113M) 98%
Net loss after tax ($24M) ($184M) $160M 87%
PGM ozs production 168,014 156,787 11,227 7%
Revenue $113M $116M ($3M) (2%)
Average PGM basket price per ounce achieved $1,138 $1,245 ($107) (9%)
Kroondal Cash cost per PGM ounce before capex R8,849 R8,688 R161 2%
Mimosa Cash cost per PGM ounce before capex $854 $863 ($9) (1%)
Revenue (PGM sales, interest) for the half-year to December 2013 was $113 million, 2% lower compared to the pcp due to
lower PGM metal prices. The PGM basket price achieved for the half-year was $1,138 per PGM ounce, down 9% from the
pcp. EBITDA margins improved at Kroondal on higher production but EBITDA margins were lower at Mimosa due to lower
Dollar PGM basket prices.
Total cash cost of production was $104 million, down $4 million despite an 11% increase in production at Kroondal and
Platmile. Significantly, Kroondal recorded its fourth consecutive +105,000 PGM ounce production quarter, a record for the
mine. This is particularly pleasing given the ongoing difficulties prevailing in the sector.
On a per PGM ounce basis unit costs in South Africa decreased 14% to $870 but increased 2% in Rand terms due to the 19%
decrease in the Rand. In Zimbabwe the cash cost per PGM ounce was $854, a 1% decrease. Operating costs were well within
inflationary targets and will continue to be a point of focus particularly in the ongoing low metal price environment.
Exchange rate movements continued to have a volatile effect on earnings. The Rand weakened significantly to average
R10.06 to the US Dollar compared to R8.46 in the pcp. During the year Aquarius recorded net foreign exchange gains of $3
million comprising gains on sales adjustments.
Administration costs were lower following cost reduction initiatives implemented. Depreciation and amortisation for the
half-year of $17 million was lower despite increased production due to an increased resource base resulting from the
extension of mine life of PSA1 at Kroondal.
Finance costs for the half-year of $15 million included $12 million on convertible notes and bank borrowings (of which $5
million was non-cash representing the accretion of interest on the convertible note) and $3 million of non-cash interest
arising from the unwinding of the net present value of the rehabilitation provisions of AQPSA.
An impairment charge of $2 million relating to the Group's TKO assets was charged to the income statement.
The income tax benefit of $3 million reflects the movement in the AQPSA deferred tax balance.
Group Financials by Operation
Kroondal Marikana Everest Mimosa Plat Mile Total
PGM ounces (4E) (attributable) 108,372 - - 54,317 5,325 168,014
Reconciliation AQP
Kroondal Marikana Everest Mimosa Plat Mile Blue Ridge Corporate Segment to Consolidated Group
Result Information* $m
$m $m $m $m $m $m $m $m $m
Revenue 106 - 1 59 5 - 2 173 (59) 113
Cost of sales – mining, (95) (1) (4) (46) (4) (0.5) - (150) 46 (104)
processing & administration
Cost of sales – depreciation & (14) - (1) (6) (1) - - (23) 6 (17)
amortisation
Gross profit/(loss) (4) (1) (4) 7 - (0.5) 2 - (7) (8)
Administrative costs - - - - - - (4) (4) - (4)
Foreign exchange gain/(loss) 3 - - - - - (1) 3 - 3
Finance costs - - - - - - (17) (17) 2 (15)
Impairment losses - - - - - - (2) (2) - (2)
Community share ownership
- - - (0.5) - - - (0.5) 0.5 -
trust
Indigenisation costs - - - (2) - - - (2) 2 -
Share of profit/(loss) from joint - - - - - - - - 0.2 0.2
venture entities
Profit/(loss) before income - (1) (4) 5 - (0.5) (23) (24) (3) (27)
tax
Income tax benefit - 3 3
Net profit/(loss) from ordinary activities (24) - (24)
* In the consolidated financial statements the Mimosa and Blue Ridge operating segments are accounted for using the equity method. The
column titled “Reconciliation to Consolidated Information” provides a reconciliation of the segment information used by the CEO to the
consolidated financial information.
The consolidated cash balance at period end was $83 million, a net increase of $5 million. A key indicator to the improved
performance of Aquarius' South African assets is the $62 million turnaround in net cash flows from operating activities from a
deficit of $57 million in the pcp to a surplus of $5 million in this half-year. The group paid $11 million to fund its capital
expenditure program, paid $7 million in interest and received $18 million of dividends from Mimosa.
Joint venture entities
Mimosa Investments Limited
Mimosa recorded an EBITDA profit attributable to Aquarius of $14 million and a net profit before tax of $5 million for the
half-year. The result was achieved on production of 54,317 PGM ounces attributable to Aquarius. Despite consistent
production, EBITDA was lower than expected due to lower Dollar metal prices. Unlike Kroondal which benefits when the
Rand weakens against the Dollar, Mimosa has no such relief. Mimosa's PGM basket price for the half year was $1,127 per
PGM ounce, 7% lower compared to the pcp. Unit cash costs for the half-year were 1% lower at $854 per PGM ounce.
Cash held in Mimosa at 31 December was $10 million (100%). Subsequent to the end of the half-year Mimosa paid out a
dividend of $4 million, 50% of which is attributable to Aquarius.
Mimosa's financial result is provided in the Group Financials table on page 3 and its operational performance is discussed
under the Operating Review section of this announcement.
Blue Ridge Platinum (Pty) Ltd
Blue Ridge recorded a net loss after tax of $2 million for the half-year. The result reflects care and maintenance and interest
costs for the half-year.
Change in accounting policy
IFRS 11 Joint Arrangements
Following a change to 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 using the equity accounting
method from 1 July 2013. This differs from the previous approach whereby Aquarius proportionately consolidated its
investments in Mimosa and Ridge. The equity method recognises the Group’s 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 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.
Aquarius Platinum Limited
Consolidated Income Statement
Half-Year ended 31 December 2013
$’000
Half-Year Ended Year Ended
Note 31/12/13 31/12/12 30/06/13
Attributable Production (PGM Ounces) 168,014 156,787 325,103
Revenue (i) 113,173 115,671 237,115
Cost of sales (including D&A) (ii) (120,751) (128,297) (248,308)
Gross loss (7,578) (12,626) (11,193)
Other income 72 100 278
Administrative costs (iii) (4,336) (7,143) (12,786)
Foreign exchange gain/(loss) (iv) 2,731 (20,188) (19,322)
Finance costs (v) (15,295) (12,507) (24,365)
Impairment losses (2,487) (114,535) (214,111)
Loss on sale of assets (31) - -
Closure and transition costs - (17,004) (54,538)
Share of profit/(loss) from joint venture entities 166 (12,229) (5,003)
Loss before income tax (26,758) (196,132) (341,040)
Income tax benefit (vi) 2,730 11,840 53,127
Net loss for the period (24,028) (184,292) (287,913)
Non-controlling interests 12 (456) (706)
Loss attributable to equity holders of
Aquarius Platinum Limited (24,040) (183,836) (287,207)
Loss per share (basic - cents) (5.11) (38.57) (61.13)
Notes on the Consolidated Income Statement
(i) Revenue decreased by 2% compared to the pcp despite increased production due to a 5% decrease in the PGM basket
price achieved.
(ii) Cost of sales are lower due to the 19% weakening of the Rand compared to the pcp. In Rand terms unit costs
increased 2% per PGM ounce in South Africa.
(iii) Relates to administration costs of the Aquarius Group inclusive of costs associated with business development
activities, legal and financial advisory.
(iv) Foreign exchange includes gains/losses on cash, intercompany loans, pipeline debtors and sales adjustments due to
the movement of the Dollar against other currencies.
(v) Finance costs include $7 million interest on convertible bonds and bank borrowings, $5 million of non-cash interest
arising from the unwinding of the equity portion of the convertible bond and $3 million in non-cash interest arising from
the unwinding of the net present value of the rehabilitation provisions of AQPSA.
(vi) Income tax benefit reflects movement in the South African deferred tax balance.
Aquarius Platinum Limited
Consolidated Cash Flow Statement
Half-year ended 31 December 2013
$’000
Half-year ended Year ended
Note 31/12/13 31/12/12 30/06/13
Net operating cash inflow/(outflow) (i) 4,706 (57,036) (21,449)
Net investing cash outflow (ii) (10,989) (16,300) (20,629)
Net financing cash inflow/(outflow) (iii) 9,912 (30,725) (34,363)
Net increase/(decrease) in cash held 3,629 (104,061) (76,441)
Opening cash balance 77,773 166,652 166,652
Exchange rate movement on cash (iv) 1,596 4,734 (12,438)
Closing cash balance 82,998 67,325 77,773
Notes on the Consolidated Cash Flow Statement
(i) Net operating cash flow includes a $128 million inflow from sales, $126 million paid to suppliers and interest received
of $3 million.
(ii) Reflects payments for property, plant & equipment and mine development costs.
(iii) Includes $7 million interest paid, $2 million repayment of borrowings and $18 million dividends from Mimosa.
(iv) Reflects movement of other currencies against the Dollar.
Aquarius Platinum Limited
Consolidated Balance Sheet
At 31 December 2013
$’000
Half-year ended Year ended
Note 31/12/13 31/12/12 30/06/13
Assets
Cash assets 82,998 67,325 77,773
Current receivables (i) 22,901 50,846 33,965
Other current assets (ii) 16,704 20,764 16,181
Property, plant and equipment (iii) 98,008 126,869 105,030
Mining assets (iv) 113,016 257,679 121,694
Intangible asset (v) 55,696 73,755 59,449
Investments in joint venture entities (vi) 204,817 228,321 223,643
Other non-current assets (vii) 67,085 54,807 66,203
Total assets 661,225 880,366 703,938
Liabilities
Current liabilities (viii) 35,822 49,965 43,109
Non-current interest-bearing liabilities (ix) 274,194 265,101 268,788
Other non-current liabilities (x) 93,466 91,647 96,099
Total liabilities 403,482 406,713 407,996
Net assets 257,743 473,653 295,942
Equity
Issued capital 24,408 24,370 24,370
Treasury shares (27,331) (27,433) (26,526)
Reserves 626,417 714,937 639,854
Accumulated losses (371,442) (244,031) (347,402)
Total equity attributable to equity holders
of Aquarius Platinum Limited 252,052 467,843 290,296
Non-controlling interests (xi) 5,691 5,810 5,646
Total equity 257,743 473,653 295,942
Notes on the Consolidated Balance Sheet
(i) Reflects debtors receivable on PGM concentrate sales.
(ii) Reflects PGM concentrate inventory, reef stockpiles and consumables stores.
(iii) Represents plant and equipment within the Group.
(iv) Mining assets relate to Kroondal, Marikana and Everest mine properties and mine development.
(v) Includes intangibles relating to contract value acquired on the acquisition of equity interest in Platinum Mile
Resources (Pty) Ltd.
(vi) Reflects investments in joint venture entities, Mimosa and Blue Ridge.
(vii) Includes the recoverable portion of rehabilitation provision from Anglo Platinum of $10 million, receivable from
outside shareholders of Blue Ridge and Sheba’s Ridge of $23 million, investments in rehabilitation trusts of $16 million
and AQPSA deferred tax asset of $18 million.
(viii) Includes creditors and other payables of $29 million, AQPSA equipment leases of $2 million and provisions of $4
million.
(ix) Represents the 4% convertible notes due December 2015.
(x) Includes deferred tax liabilities of $17 million, provision for closure costs of $73 million and rehabilitation obligations
on P&SA1 and P&SA2 structures of $3 million.
(xi) Non-controlling interests reflects the 8.3% outside equity interest of Platmile Resources (Pty) Ltd.
Operating Review Summary (all numbers on 100% basis)
This section contains summarised operating reviews of each of the Company’s operations. Full operating statistics are
provided on page 13 of this report. In addition, further detail on each of the operations can be obtained from the quarterly
and full-year reports released by the Company throughout the financial year available on the Company’s website,
www.aquariusplatinum.com.
AQUARIUS PLATINUM (SOUTH AFRICA) (PTY) LTD (Aquarius Platinum - 100%)
P&SA 1 at Kroondal (Aquarius Platinum – 50%)
- 12-month rolling average DIIR improved to 0.99 per 200,000 man hours
- Production increased by 19% to 3,718,000 tonnes
- Head grade deteriorated from 2.45 g/t to 2.40 g/t
- Recoveries reduced to 78%
- Volumes processed increased by 16% to 3,590,000 tonnes
- Stockpiles at the end of the period totalled approximately 147,000 tonnes
- PGM production increased by 11% to 216,744 PGM ounces
- Revenue increased by 18% to R2,124 million due to improved production and the Rand basket price
- Mining cash costs decreased by 2% to R534 per tonne, and costs per PGM ounce increased by 2% to R8,849
- Kroondal’s cash margin for the period increased from 6% to 10%
Commentary
Safety, Health and Environment
At Kroondal the Disabling Injury Incident Rate improved slightly to 0.99. This is a primary focus point for the management
team and as such a safety programme was launched on 27 September 2013 and attended by all the Kroondal employees.
The purpose was to re-energise safety awareness and introduced the theme of the new safety strategy being “My Life, My
responsibility, I will comply”. This theme followed an analysis of incidents and accidents which indicated that people were
not complying with standards and procedures. The launch was also attended by the Principal Inspector (who gave a short
address) and two Senior Inspectors from the DMR.
Operations
Five section 54 stoppages were issued by the inspectorate during the period in review, one in the first quarter and four in the
second quarter.
The head grade deteriorated during Q1 as a result of mining at Bambanani through the shear zone where all panels had to
traverse through it simultaneously. Kwezi encountered a dramatic increase of IRUP ore as well as encountering a weak zone
and the prevalence of initial potholes at K6 was also unforeseen. The coaching of the mining teams by the BI (Business
Initiative) team continued during the period.
Kwezi had challenges during the past six months pertaining to the ground conditions where, after consideration of our
ground control district, the size of the boards were reduced to 6m x 6m from a traditional 10m x10m boards.
K6 is steadily starting to contribute to the production of Kroondal however the build-up was disrupted in the period in review
due to the high incidents of potholes. A drilling programme is in place to increase our detailed geological understanding and
the extent of these geological fissures.
The second chairlift at Simunye has been completed and commissioned and this will help in alleviating the problems
associated with shifts times. The second chairlift and underground workshop at Kopaneng and the underground workshop at
Simunye are expected to be finished in the third quarter.
At the concentrators the recoveries deteriorated due to the iron-rich ultramafic pegmatite (IRUP) ore from Kwezi. After
extensive laboratory testing, the plants have resorted to tighter control on how the ores are fed through the plant in order to
get the best optimum blend and increase retention time where possible. The other focus is the constant monitoring of mass
pulls at the plants to increase recoveries from the IRUP ore which have slow floating characteristics.
Marikana
There has been no change to Marikana operations which remain on care and maintenance until further notice.
Everest
There has been no change to Everest operations which remain on care and maintenance until further notice.
AQPSA Operating costs per ounce (R)
4E 6E 6E net of by-products
(Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni&Cu)
Kroondal 8,849 7,267 7,068
Capital expenditure (100% basis)
Kroondal
(R’000 unless otherwise stated) Total Per 4E oz
Ongoing Infrastructure Establishment 139,298 643
Project Capital (K6 shaft) 48,162 222
Mobile Equipment 34,172 158
Total 221,632 1,023
Kroondal mine: reconciliation of cash costs per 4E ounce
Cost per 4E ounce
(Rand)
HY1
Total operating expenditure 10,091
Less:
Ongoing capital expenditure & mobile equipment (800)
Project capex (K6 shaft) (222)
Transferred to stockpile (220)
On mine cash costs 8,849
MIMOSA INVESTMENTS (Aquarius Platinum - 50%)
Mimosa Platinum Mine
- 12-month rolling average DIIR at 0.05 per 200,000 man hours was an improvement from 0.16 recorded the previous
half year.
- Production increased by 2% to 1,255,000 tonnes
- Head grade decreased by 1% to 3.64 g/t
- Recoveries remained at 77%
- Volumes processed increased by 4% to 1,235,000 tonnes
- Stockpiles at the end of the period were approximately 135,573 tonnes
- PGM production slightly decreased to 108,633 PGM ounces as a result of assay adjustments
- Revenue decreased by 9% to $116 million due to depressed metal prices
- Mining cash costs decreased by 5% to $75 per tonne and costs per PGM ounce by 1% to $854
- Stay-in-business capital expenditure was $141 per PGM ounce for the period
- Mimosa’s cash margin for the period increased from 16% to 18% due to decreased costs and increased production.
Commentary
Safety, Health and Environment
No fatalities occurred at Mimosa during the period under review. The Disabling Injury Incidence Rate at 0.05 per 200,000
man hours was a great improvement as compared to the previous half year 12-month rolling average of 0.16.
Operations
Mimosa mine continues to operate well, despite cost pressures which have increased in recent quarters. The Mimosa
management team has identified a number of cost saving initiatives which are currently being implemented.
Capital expenditure
Total stay-in-business capital expenditure for the period amounted to $15 million, in line with guidance. Expenditure was
mainly incurred in mobile equipment, Drill Rigs and LHD, Conveyor belt extension, and down dip Development.
Operating cash costs
Unit cash cost per PGM ounce at $854 per PGM ounce (before by-product credits) was 1% lower than the previous period as
a result of various cost reduction initiatives being implemented by management.
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)
Mimosa 854 807 582
TAILINGS OPERATIONS
Platinum Mile (Aquarius Platinum – 91.7%)
- Material processed increased 43% to 2,133 tonnes
- Head grade decreased by 1% to 0.68 g/t
- Recoveries decreased by 15% to 11%
- Production increased by 15% to 5,325 PGM ounces
- Cash costs increased by 8% to R6,830 per PGM ounce
- Revenue was R47 million for the period
- The cash margin for the period was 22%, down from 29% in the pcp
Commentary
CTRP
The operation remains on care and maintenance since 6 August 2012.
Platinum Mile
The results for the half year were negatively impacted by strikes at Anglo Platinum during the month of October and the
Christmas break in operations. A total of 21 production days were lost for these reasons.
The recently announced restructure at Anglo Platinum has impacted directly on the operations. As a result of the recent
restructuring at Anglo, Platinum Mile has resumed treating UG2 material that has traditionally provided lower recoveries at
higher chrome levels. It is expected that the course grinding expansion due to be commissioned by the end of the third
quarter of this financial year will replace the lost yields resulting from the Anglo Platinum restructuring.
Whilst the results for the half-year were impacted by the Anglo Platinum strikes and restructuring, encouragingly a positive
cash margin was achieved. At the time of writing this commentary Anglo Platinum operations were halted by a strike that
started on 23 January 2014. This will negatively impact production for the first quarter of 2014 and delay the completion and
commissioning of the coarse grinding expansion.
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)
CTRP
Platinum Mile 6,830 5,919 5,363
Please refer to www.aquariusplatinum.com for the Statistical information.
CORPORATE MATTERS
Mimosa Indigenisation
On 14 December 2012, Mimosa Investment Holdings (“Mimosa Investments”), which is held jointly in a 50:50 partnership
with Impala Platinum Holdings Limited, concluded a non binding term sheet in respect of a proposed indigenisation
implementation plan (“IIP”) with the Government of Zimbabwe. The term sheet provided for, subject to certain conditions
precedent, of the sale by Mimosa Investments of an aggregate 51% equity ownership of Mimosa Holdings (Private) Limited
(“Mimosa Holdings”), the wholly owned operating subsidiary of Mimosa Investments which owns and manages the Mimosa
mine. During the course of 2013 the Government of Zimbabwe indicated to Mimosa, and to the other platinum producers in
Zimbabwe who concluded similar transactions, that it was no longer supportive of the term sheets. Following the national
elections held in Zimbabwe in August 2013 a new Minister of Indigenisation was appointed. Mimosa has had frequent
interaction with the Ministry, but to date no agreements or definitive terms have been agreed by Mimosa, or indeed any
other platinum producer in Zimbabwe.
As a result, the matter is ongoing and management is unable to estimate the financial impact of the proposed transaction.
Zimbabwean budget update
Aquarius has noted amendments contained in the proposed Zimbabwean national budget for 2014 which, if implemented,
will negatively impact the company. These include royalties which is proposed will be non-deductible for income tax
purposes (currently deductible) and an export tax on un-beneficiated platinum. The implementation of further taxes would
have a significant negative impact on the profitability and cash flows of the entire Zimbabwean platinum sector, particularly
in the current low price environment. Mimosa management in consultation with the Zimbabwe Chamber of Mines will
continue to engage with the Government of Zimbabwe in an effort to clarify the proposed changes to the fiscal regime,
acknowledging that Aquarius and Mimosa share the vision of a growing platinum mining sector with the Government of
Zimbabwe.
Subsequent events
Sale of Kruidfontein prospecting rights
On 29 January 2014, Aquarius agreed terms to dispose of 100% of C&L Mining and Resources (Pty) Limited (C&L), which holds
the Kruidfontein prospecting right, to Pilanesberg Platinum Mines (Pty) Ltd, a subsidiary of Sedibelo Platinum Mines Limited
(previously Platmin Limited). The total sale consideration is $30 million in cash. The material asset of C&L is a prospecting
right known as Kruidfontein in which C&L has a 90% economic benefit. The sale is conditional on renewal of the prospecting
right and the approval in terms of Section 11 of the Mineral and Petroleum Resources Development Act 28 of 2002.
Upon completion of the sale, Aquarius will receive $16.2 million (before tax) in consideration for its economic interest in the
prospecting right with the remaining $10.8 million (before tax) due to the original vendors of the right. In terms of an
agreement with the original vendors of the Kruidfontein prospecting right, Aquarius may elect to retain the remaining $10.8
million (less any tax payable), in return for an issue of shares in Aquarius, of same value, at the time the sale becomes
unconditional, resulting in net cash inflows of $27 million (before tax) for Aquarius.
Apart from the cash received, the financial impact of the sale has not yet been determined.
Sale of Blue Ridge & Sheba's Ridge
On 29 January 2014, Aquarius agreed terms to dispose of its indirect interests in Blue Ridge Platinum (Pty) Ltd and Sheba’s
Ridge Platinum (Pty) Ltd to a consortium led by the China National Arts & Crafts (Group) Corporation for a total consideration
of $37 million in cash, of which $4.3 million will be lent and advanced by Ridge Mining (Pty) Ltd to Blue Ridge for a period of 2
years from the closing date, being the date on which the last condition precedent to the sale agreement will be fulfilled.
The sale agreement is subject to a number of conditions precedent, primarily Chinese Government approvals, South Africa
Competition Commission approval and a number of DMR regulatory approvals. The outside date for the fulfilment of the
conditions precedent has been fixed at 30 June 2014, but may be extended if required, by agreement between the parties.
Apart from the cash received, the financial impact of the sale has not yet been determined.
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
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 Managing Director
Platinum Mile Management
Richard Atkinson Managing Director
Paul Swart Financial Director
Issued Capital
At 31 December 2013, the Company had on issue: 487,605,536 fully paid common shares.
Substantial Shareholders 31 December 2013 Number of Shares Percentage
Wellington Management Company 40,593,492 8.33
The Capital Group of Companies 37,117,112 7.61
HSBC Custody Nominees (Australia) Limited 32,262,154 6.62
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, London 58 Mounts Bay Road, Limited)
EC2Y 9LY Perth WA 6000 1 Merchant Place
Telephone: +44 (0) 20 3100 2000 Telephone: +61 (0) 8 9488 1400 Cnr of Rivonia Rd and Fredman
Barclays Drive, Sandton 2196
5 The North Colonnade Johannesburg South Africa
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 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 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
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 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
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.
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
7 February 2014
Date: 07/02/2014 09:21:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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