Wrap Text
Production Results to 31 December 2014
Aquarius Platinum Limited
(Incorporated in Bermuda)
Registration Number: EC26290
ISIN Code: BMG0440M1284
JSE Share Code: AQP
Aquarius Platinum Limited
Production Results to 31 December 2014
Highlights
- Attributable production from operating mines up 2% quarter-on-quarter, up 5% compared to previous
corresponding period (pcp).
- Kroondal records its 8th consecutive +105,000 PGM oz quarter
- Mimosa attains a new quarterly production record at 60,842 PGM ozs
- Highest attributable quarterly production for a quarter from Kroondal, Mimosa and Plat Mile combined
- Average PGM basket price decreased 10% for the quarter – down 4% compared to pcp
- The Rand weakened against the US Dollar by 4% on average quarter-on-quarter – down 8% compared to pcp
- Cash costs at Kroondal decreased 1% to R8,925 per PGM ounce quarter-on-quarter – up 1% compared to pcp
- Cash costs at Mimosa decreased 4% to $781 per PGM ounce quarter-on-quarter – down 7% compared to pcp
- Surface stockpiles: Kroondal 160,000 tonnes, Mimosa 181,000 tonnes
- Sale of Kruidfontein completed resulting in cash inflow of $27 million
- Cash balance at quarter end of $164million with a further $8 million attributable to Aquarius in JV entities.
Q2 2015 Operating Results Summary
Kroondal Mimosa Platinum Mile
4E PGM Production
Total (100% basis) 111,115 60,842 2,996
Attributable 55,557 30,421 2,996
4E Basket Price
R/oz 12,186 - 12,233
$/oz 1,090 1,100 1,090
Cash Costs (4E basis)
R/oz 8,925 - 7,500
$/oz 798 781 668
Cash Margin (%) 5 26 14
Stay-in-Business Capex
R/oz 1,002 - -
$/oz 90 137 -
Commenting on the results, Jean Nel, CEO Aquarius Platinum said:
Both Kroondal and Mimosa delivered excellent production and cost performances in the quarter, with Mimosa
recording its highest ever quarterly production and Kroondal delivering a record 8th consecutive quarter of above
105 000 4E oz’s production. The increased production, coupled with excellent cost management enabled
Aquarius to generate positive operational cash flows despite a sharp drop in PGM prices which fell by 10% in US$
terms and 8% in Rand terms. The operating teams under the leadership of Rob Schroder deserve much credit for
the performance.
Aquarius’ view remains that, attractive longer term fundamentals notwithstanding, a material increase in PGM
prices is unlikely in the short term given muted demand growth and continued supply of metal from unprofitable
mining operations in South Africa. This assessment informs Aquarius’ stated focus on consistent operational
improvements, strengthening its balance sheet and restrained capital allocation. Aquarius is committed not to
produce unprofitable ounces. In this regard Aquarius will continue to focus on operational efficiencies and
excellence to improve margins.
As part of our year-end results presentation in August 2014, Aquarius advised that a number of incremental
growth projects had been identified which are in different phases of assessment. During the quarter work on the
projects continued. A progress update will be included in the interim results announcement on 11 February
2015.
Production by mine
Quarter ended
PGMs (4E)
Dec 2014 Sept 2014 % Change Dec 2013 % Change
Kroondal 111,115 112,248 -1 110,303 1
Mimosa 60,842 57,799 5 55,586 9
Platinum Mile 2,996 1,831 64 1,583 89
Total 174,953 171,878 2 167,472 4
Production by mine attributable to Aquarius (Operating mines)
Quarter ended
PGMs (4E)
Dec 2014 Sept 2014 % Change Dec 2013 % Change
Kroondal 55,557 56,124 -1 55,152 1
Mimosa 30,421 28,900 5 27,793 9
Platinum Mile 2,996 1,831 64 1,583 89
Total 88,974 86,855 2 84,528 5
Aquarius Group quarterly attributable production (PGM ounces) to 31 December 2014
Please refer to www.aquariusplatinum.com for the graph.
Market Summary
The platinum price continued to fall in the fourth quarter, not only setting 2014 lows, but testing their lowest
levels since July 2009, falling below $1,200 per ounce level. It finished at $1,208 per ounce (6% lower over the
quarter). Palladium prices were more robust gaining 3% during last quarter and closing the year at $798 per
ounce.
Platinum finished lower for a variety of reasons including a drag of falling gold prices and a sizable quantum of
above ground stocks. Auto-related demand has shown signs of firming across Europe, amplified by the
implementation of Euro 6 legislation, and jewellery demand has been responsive to lower prices. China’s
platinum imports have softened and have not been offset by imports into Hong Kong.
After being dragged lower alongside the rest of the PGM complex, palladium has managed to recover and
traded, at times, above the $800 per ounce level. Destocking helped China’s palladium imports to recover
during 2014, with the average monthly imports reaching 65 000 ounces compared with 60 000 ounces in 2013.
Speculative positioning remained relatively elevated in Nymex palladium and ETPs were close to the record high
set at the end of November, which implied potential for some profit-taking. Further, palladium ETP holdings
have also proved to be a source of supply as well as demand over the quarter.
Rand-Dollar exchange rate
The average Rand-Dollar exchange rate weakened during the quarter, falling by 4% from R10.71 to R11.18 to the
US dollar. Since then, the Rand has weakened further to average R11.60 in the first three weeks of January.
The average Rand basket price decreased 8% quarter-on-quarter, and the spot price by 2% over the period. The
US Dollar weighted average group basket price decreased by 10% to $1,097 per 4E PGM ounce compared to the
previous quarter. The average South African basket price at AQPSA’s operations was R12,189 per PGM ounce for
the period. Subsequent to the end of the quarter, the PGM basket price has consolidated to average R12,421 per
PGM ounce for the first three weeks of January 2015.
12-month individual PGM prices to December 2014
Please refer to www.aquariusplatinum.com for the graph.
12-month PGM basket prices to December 2014
Please refer to www.aquariusplatinum.com for the graph.
12-month Rand-Dollar exchange rate to December 2014
Please refer to www.aquariusplatinum.com for the graph.
Average PGM basket prices achieved at Aquarius operations
US$ per PGM Quarter ended
ounce (4E) Dec 2014 Sept 2014 % Change Dec 2013 % Change
Kroondal 1,090 1,239 (12) 1,145 (5)
Mimosa 1,111 1,200 (7) 1,126 (1)
Platinum Mile 1,090 1,202 (9) 1,117 (2)
Weighted Avg. 1,097 1,225 (10) 1,138 (4)
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 per 200,000 man hours deteriorated to 0.62 from 0.55 in the previous quarter
- Production decreased to 1,807,000 tonnes from 2,013,000 tonnes
- Head grade improved from 2.37 g/t to 2.41 g/t
- Recoveries improved by 1% to 79%
- Volumes processed decreased to 1,814,000 tonnes, down 4% quarter-on-quarter
- Stockpiles at the end of the quarter totalled approximately 160,000 tonnes, down 7,000 tonnes
- PGM production decreased by 1% to 111,115 PGM ounces
- Revenue decreased by 17% to R1,046 million quarter-on-quarter due to lower Rand prices and a negative
sales adjustment of R87 million due to lower metal prices quarter on quarter
- Mining cash costs increased by 2% to R547 per tonne, due to lower volumes
- Unit cost per PGM ounce reduced by 1% to R8,925 per PGM ounce due to improved grade and recovery as
well as stock pile adjustment
- Kroondal’s cash margin for the period decreased from 20% to 5% due to the negative sales adjustment and
lower basket prices
Kroondal: Production, Cash Cost and Price Analysis
Please refer to www.aquariusplatinum.com for the graph.
Commentary
As previously reported, regrettably a fatal incident occurred on 11 October 2014 when Mr Pedro Tafulane
Nhabinde, a Team Leader at Kwezi Shaft, tragically lost his life whilst barring during safe declaration. Our
deepest condolences go to his family and friends.
The number of injuries increased from 12 to 29 quarter on quarter and the 12 Rolling DIIR Rate deteriorated
from 0.55 to 0.62. The deterioration on safety took place despite a focussed safety campaign during the quarter.
Safety campaigns have been re-energised in January 2015. During the quarter three Section 54 instructions were
issued resulting in approximately 103,000 tons of lost production.
Tonnes mined for the quarter was 10% lower at 1,807,000 tonnes due primarily to the three Section 54
instructions issued by the DMR. In spite of these factors, Kroondal achieved its eighth consecutive +105,000
PGM production quarter. Unit costs continued to respond positively down 1% quarter on quarter and up 1%
compared to the previous corresponding period December 2013 in spite of South Africa’s inflation rate of
approximately 6%.
Operations at K6 Shaft remained challenging due to poor ground that still needs rehabilitation in order to get the
belt infrastructure installed as well as a high incident of potholes. Kwezi shaft has been experiencing big falls of
ground and all ends have been reduced for safety. Simunye shaft is mining through a dyke intersection.
Bambanani have mined successfully through a shear zone. Kopaneng shaft production has remained steady since
the underground workshop and new chairlift have been commissioned.
Various trials to mitigate the treating of iron-rich ultramafic pegmatite (IRUP) ore being mined at Kwezi has
resulted in a potential solution comprising blending the material, changing reagents and increasing the floatation
retention time in the process plants. Recoveries improved by 2% quarter on quarter. Further work will continue
in 2HY 2015.
During the quarter the Kroondal work force maintained a positive outlook with open communication channels
on all levels. A recognition agreement was concluded with AMCU post quarter, in January 2015, negotiations of
which were conducted in a cordial manner.
P&SA2 at Marikana (Aquarius Platinum – 50%)
There has been no change to the Marikana operations which remain on care and maintenance until further
notice.
Everest Mine
There has been no change to the Everest operations which remain 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 8,925 7,317 7,131
Capital expenditure
Kroondal
(R’000 unless otherwise stated) Total Per 4E oz
Ongoing establishment of infrastructure 104,864 944
Project capital (K6 shaft) 6,510 59
Mobile equipment 28,026 252
Total 139,400 1,255
Kroondal mine: reconciliation of cash costs per 4E ounce
Cost per 4E ounce
(Rand)
Q1 2015 Q2 2015
Total operating expenditure 10,601 10,213
Less:
Ongoing capital expenditure & mobile
equipment (1,048) (1,195)
Project capex (K6 shaft) (48) (59)
Transferred (to)/from stockpile (504) (34)
On mine cash costs 9,001 8,925
MIMOSA INVESTMENTS (Aquarius Platinum - 50%)
Mimosa Platinum Mine
- 12-month rolling average DIIR was constant at 0.05 per 200,000 man hours worked
- Production increased by 3% to 677,305 tonnes
- Head grade deteriorated slightly to 3.63 g/t
- Recoveries improved to 78%
- Volumes processed increased by 5% to 665,843 tonnes
- Stockpile at the end of the quarter was approximately 181,258 tonnes
- PGM production increased by 5% to 60,842 PGM ounces
- Revenue, decreased in line with lower metal prices
- Mining cash costs per tonne was unchanged constant at $71, costs per PGM ounce decreased by 4% to $781
as a result of increased production
- Stay-in-business capital expenditure was $137 per PGM ounce for the quarter
- Mimosa’s cash margin for the period decreased from 41% to 26% due to negative sales adjustments and
lower metal prices
Mimosa: Production, Cash Cost and Price Analysis
Please refer to www.aquariusplatinum.com for the graph.
Commentary
The 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. Production of 60,842 PGM ounces for the quarter was a record for the Mimosa mine.
Operating cash costs per ounce
Unit cash cost per PGM ounce (before by-product credits) was 4% lower compared to the previous quarter
mainly as a result of increased production.
Mimosa 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 781 737 562
Capital expenditure
The total capital expenditure for the second quarter amounted to $8.5 million. Expenditure was mainly incurred
on mobile equipment, Drill Rigs and LHD; Conveyor belt extension and Down dip Development.
TAILINGS OPERATION
Platinum Mile (Aquarius Platinum – 91.7%)
- Material processed increased 31% to 1,346 million tonnes, up 31% quarter on quarter
- Head grade decreased to 0.55 g/t from 0.58 – quarter on quarter
- Recoveries increased to 13%, up from 9% quarter on quarter
- Production increased to 2,996 PGM ounces as the operations continues it ramp up phase
- Cash costs decreased to R7,500 per PGM ounce
- Revenue was higher at R27 million for the quarter
- Cash margin for the quarter was 13%, up from 9% in the previous quarter
Commentary
Platinum Mile
The results for the quarter were much improved as the operations recovered from the five month strike that
ended in July 2014. Production is expected to continue rising as the plant reaches capacity.
The increase in the cash margin of the operation is encouraging given the 9% decline in the basket price for the
quarter. In the next quarter focus will be given to the improvement of the efficiency and integration of the newly
commissioned coarse grind circuit to improve overall recoveries at the operation. Once full production ramp-up
in achieved the operation should produce some 1,607 ounces per month.
Platinum Mile: 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 7,500 6,387 5,878
Chromite Tailings Retreatment Plant (CTRP) (Aquarius Platinum - 50%)
There has been no change to the CTRP operations which remain on care and maintenance until further notice.
CORPORATE MATTERS
Board Changes
Sir Nigel Rudd was appointed to the Board of Directors and as Chairman Designate with effect from 1st
November 2014. Nicholas Sibley, who has been a Director since 1999 and Chairman since 2002, will be stepping
down on 28 February, 2015 and Sir Nigel will become Chairman on 1st March, 2015.
Completion of asset sale - Kruidfontein prospecting right
Aquarius concluded the sale of its indirect interest in the Kruidfontein prospecting right (“Kruidfontein Right”) to
Pilanesberg Platinum Mines (Pty) Ltd on 1 December 2014 for $27 million (before Capital Gains Tax “CGT”).
Pursuant to the contractual obligation to the original vendors of their interests in the Kruidfontein Right
Aquarius issued 36,505,657 common shares at a deemed price of US$0.24961 per Share in lieu of cash to the
original vendors of the Kruidfontein Right.
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
Sir Nigel Rudd Chairman Designate
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
Chief Operating Officer
Robert Schroder
Company Secretary
Willi Boehm
AQPSA Management
Robert Schroder Managing Director
Jean Nel Executive Director
Wessel Phumo General Manager: Kroondal
Mimosa Mine Management
Winston Chitando Chairman
Peter Chimboza Resident Director
Fungai Makoni Managing Director
Platinum Mile Management
Richard Atkinson Managing Director
Paul Swart Financial Director
Issued Capital
At 31 December 2014, the Company had on issue: 1,501,979,560 fully paid common shares.
Substantial Shareholders 31 December 2014 Number of Shares Percentage
HSBC Custody Nominees (Australia) Limited 98,959,287 6.59
J P Morgan Nominees Australia Limited 59,886,092 3.99
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 Rand Merchant Bank
Ropemaker Place, Level 12 Euroz Securities (A division of FirstRand Bank
25 Ropemaker Street, London Level 18 Alluvion Limited)
EC2Y 9LY 58 Mounts Bay Road, 1 Merchant Place
Telephone: +44 (0) 20 3100 2000 Perth WA 6000 Cnr of Rivonia Rd and Fredman
Barclays Telephone: +61 (0) 8 9488 1400 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 2848Facsimile: +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
28 January 2015
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
Date: 28/01/2015 11:36:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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