Wrap Text
Preliminary full year results to 30 June 2015
Aquarius Platinum Limited
(Incorporated in Bermuda)
Registration Number: EC26290
ISIN Code: BMG0440M1284
JSE Share Code: AQP
("Aquarius" or the "Company")
Preliminary Full Year Results to 30 June 2015
Key Points: Financial
- Revenue decreased by 9% to $213 million (FY2014: $233 million) compared to the prior corresponding
period (pcp) due to lower PGM metal prices
- Mine EBITDA decreased by 10% to $26 million (FY2014: $29 million) due to lower metal prices
- Headline loss (before exceptional charges) of $51 million at 3.47 cents per share (FY2014: loss of $11
million at 1.13 cents per share)
- Accounting net loss after tax (to IFRS) of $98 million after impairment and other non-cash one off charges
- Mine operating net cash inflow of $18 million (FY2014: inflow of $21 million) on lower metal prices
- Dividend of $20 million received from Mimosa joint venture
- Group cash balance at 30 June 2015 of $196 million (FY2014: $137 million), with a further $6 million
attributable to Aquarius held in JV entities
Key Points: Operational
- Both operating mines Kroondal and Mimosa delivering all time record production
- Both Kroondal and Mimosa recording unit cost increases well below inflation
- Significant improvements in safety performance: 12 month rolling average DIIR
- Kroondal's improved by 11% to 0.65 per 200,000 man hours from 0.73 the previous year
- Mimosa's improved to 0.03 per 200,000 man hours from 0.08 in the previous year
- PlatMile's remains at zero
- Group attributable production increased by 5% to 349,426 PGM ounces (FY2014: 331,643 PGM ounces)
- The average US Dollar PGM Basket Price of $1,097 was 7% lower compared to the previous corresponding
period (pcp) FY2014
- The average Rand Basket Price increased by 3% compared to the pcp due to a weaker Rand
- The Rand weakened by 10% on average against the US Dollar compared to the pcp
- On-mine unit cash costs in South Africa increased by 1% in Rand terms compared to the pcp
- Mimosa continued to produce at capacity but impacted by a low PGM Dollar price
- On-mine unit cash costs in Mimosa decreased 9% compared to the pcp
- PlatMile production higher compared to pcp but is still hampered by lower feed supply, $28 million
impairment charged recognised
Key Points: Strategic
- Disposal of non-core assets program (Kruidfontein prospecting rights and Everest mine) delivered $60
million in cash
- A recognition agreement has been concluded with AMCU at Kroondal, which now represents circa 65% of
Kroondal’s semi-skilled work force
Commenting on the results, Jean Nel, CEO of Aquarius Platinum, said:
For the 2015 financial year both mining operations, Kroondal and Mimosa, delivered record production
performances whilst maintaining unit cost increases well below inflation and at the same time improving safety
performances materially. Operational management at both mines deserve credit for this performance in what
continues to be a challenging operating environment. During the year the balance sheet was also strengthened
following the receipt of $60 million of proceeds from non-core asset sales.
The macro environment however remains very challenging given Dollar metal prices at decadal lows. Against this
back-drop Aquarius will not only continue its focus on consistent cost and capital discipline, but will also assess
further initiatives to reduce absolute costs and increase efficiencies and will perform an assessment of the
sustainability of each shaft at each operation.
Financial results: Year to 30 June 2015
Aquarius recorded a consolidated net loss after tax (IFRS) of $98 million for the year (6.59 cents per share). The
result included $70 million of one off items listed below:
- profit on sale of non-core assets (Kruidfontein & Everest) of $20 million; and non-cash charges comprising -
- a reversal/(recycling) of foreign exchange losses from the foreign currency translation reserve through the
income statement of $13 million arising on the disposal of 100% owned subsidiary C&L Mining and
Resources (Pty) Ltd which held the Kruidfontein mining rights
- impairment in the carrying value of the PlatMile investment of $28 million
- impairment of the carrying value of Blue Ridge/Sheba's Ridge investment of $20 million following
termination of the agreement to sell the Company’s indirect interests in Blue Ridge Platinum (Pty) Ltd and
Sheba’s Ridge Platinum (Pty) Ltd
- discounting of the RBZ receivable due to Mimosa by $29 million
EBITDA from controlled entities was $26 million, a $3 million decrease from the pcp. The decreased EBITDA was
despite a 5% increase in production (controlled entities) and excellent cost control due to lower PGM prices
(down 7%). Kroondal recorded a 1% increase in unit costs (Rand terms) compared to the pcp despite
significantly higher mining cost inflation.
Profit & Production Summary
Aquarius Consolidation Aquarius
operations JV entities Total adjustment Group
Mine EBITDA $26M $42M $68M ($42M) $26M
Revenue $213M $137M $350M ($137M) $213M
Cost of sales ($211M) ($111M) ($322M) $111M ($211M)
Net profit/(loss) after tax ($50M) ($48M) * ($98M) - ($98M)
PGM ozs production 231,393 118,033 349,426 - 349,426
* Includes $20 million impairment of Blue Ridge and Sheba’s Ridge, $28 million discounting of RBZ receivable and
$4.5 million provision for 15% export tax at Mimosa.
Revenue (PGM sales, interest) for the year of $213 million was $20 million lower compared to the pcp. The
lower revenue reflects the difficult PGM market which saw the average basket Dollar price reduce to an average
$1,097 per PGM ounce in FY2015, a 7% decrease. In Rand terms, the PGM basket increased by 3% directly as a
result of a weaker Rand which decreased 10% to average R11.42 in FY2015. In Zimbabwe, the Mimosa PGM
basket price was similarly subdued recording a 5% decrease to $1,075 in FY2015 compared to the pcp.
Total cost of production was $211 million, down $20 million despite a 3% increase in production at Kroondal.
This was primarily due to good cost control and the weakening Rand.
Cost per PGM ounce in Dollar terms in South Africa decreased 9% to $803 but increased 1% in Rand terms. In
Zimbabwe the cash cost per PGM ounce was $802, a 9% reduction demonstrating the impact of the cost saving
initiatives implemented in FY2014. Maintaining operating unit cost increases well within inflationary targets will
continue to be a point of focus particularly in the ongoing low metal price environment.
Significantly, Kroondal recorded its tenth consecutive +105,000 PGM ounce production quarter, a record for the
mine.
Exchange rate movements continued to have a volatile effect on earnings. The Rand weakened significantly to
average R11.45 to the US Dollar compared to R10.39 in the pcp. During the year, Aquarius recorded a net foreign
exchange gain of $2 million comprising gains on sales adjustments and revaluation of cash, intercompany loans
and pipeline debtors.
Administration costs of $6 million were lower by $1 million compared to pcp. Depreciation and amortisation for
the year of $23 million was lower despite increased production due to an increased resource base resulting from
the extension of the Kroondal mine life.
Finance costs for the year of $15 million were $13 million lower compared to the pcp as a result of the buy back
of $173 million of the convertible bond concluded in May 2014. Finance costs include $5 million interest on
convertible bonds and bank borrowings, $5 million of non-cash interest arising from the unwinding of the debt
portion of the convertible bond and $5 million in non-cash interest arising from the unwinding of the net present
value of the rehabilitation provisions of AQPSA.
Cash balances
Group cash at 30 June 2015 was $196 million, up $59 million from June 2014. The increase in cash was mainly
attributable to $27 million of proceeds received from the sale of Kruidfontein and $33 million proceeds from the
sale of Everest. In addition to this, the Group paid $23 million to fund its capital expenditure program and
received $20 million of dividends from Mimosa. Cash held at Mimosa and Blue Ridge which is not classified as
group cash due to the adoption of equity accounting was $11 million (100% basis).
Sale of assets
Kruidfontein
Kruidfontein mining rights were sold for $27 million. Aquarius retained the gross proceeds of the sale and
satisfied settlement of the original vendors rights to 40% of the proceeds via the issue of 36,505,657 shares in
Aquarius. An accounting profit of $19 million was recorded.
Reconciliation of cash proceeds to accounting profit:
$M
Cash proceeds 27
Shares issued to original vendor (8)
Accounting profit on sale 19
The Kruidfontein asset, being held by a South African subsidiary with a Rand functional currency, has been
translated to US dollars each month end since the original date of purchase, with any exchange differences going
to the foreign currency translation reserve (FCTR). The Rand has devalued against the USD since acquisition. In
accordance with International Accounting Standards when a foreign operation is disposed of, the cumulative
amount of foreign exchange differences contained within the Foreign Currency Translation Reserve is required
to be reclassified through the income statement. Accordingly, a non-cash adjustment of $13 million has been
made, representing reclassification of the cumulative amount of foreign exchange differences relating to
Kruidfontein up to the date of disposal.
Everest
On 10 February 2015 Aquarius entered into an agreement to sell its Everest mine and related assets to Northam
Platinum Limited for R450 million, to be completed in two parts, being R400 million for the concentrator and
other mining assets of Everest Mine (Part A), plus R50 million for the Everest Mining Right (Part B). Part A
proceeds were received in June 2015. Part B of the disposal process is subject to the consent of the Minister of
Mineral Resources in terms of section 11 of the Mineral and Petroleum Resources Development Act. The section
11 application has been submitted to the Department of Mineral Resources.
Impairment assessment of mines
An impairment charge of $29 million was made against the carrying value of the Group's mining assets of which
$28 million relates to PlatMile.
Joint venture entities
Mimosa
Mimosa recorded an EBITDA profit attributable to Aquarius of $42 million and a net loss before tax of $5 million.
The result was achieved on production of 118,033 PGM ounces attributable to Aquarius. The improved EBITDA
result compared to the pcp was driven by a 7% increase in production, lower unit costs (down 9%) which
mitigated the 5% fall in the average PGM basket price achieved. As at the date of this release the deferral of the
15% export tax in Zimbabwe had not been formalised and hence in this regard an amount of $4.5 million has
been accrued in FY2015. During the year a dividend of $20 million was received from Mimosa.
Cash held in Mimosa at 30 June 2015 was $10 million (100%).
Mimosa's financial result is provided in the Group Financials table on page 5 and its operational performance is
discussed under the Operating Review section of this announcement.
RBZ receivable
During the period under review the Directors have continued to assess progress of Zimbabwe's initiatives in
relation to indigenisation and progress on the issue of Government backed securities to replace RBZ debt. In the
case of the latter, draft legislation has been prepared but has not yet been passed by parliament. In addition,
the IMF stated in November 2014 that it requires further changes to economic policy in Zimbabwe before it will
support facilitating access to international capital markets by the Government of Zimbabwe.
Having considered the above the Directors believe concluding settlement of the RBZ debt via an indigenisation
transaction or the creation of treasury bills as contemplated by the Government of Zimbabwe is now unlikely to
occur within twelve months of the balance sheet date, despite the progress initiatives underway.
Accounting standards require that non-interest bearing receivables deemed to be long term be discounted using
an effective interest rate to recognise the delay in receipt of funds. The Company has attempted to determine
an appropriate discount rate, however due to the absence of ratings and public debt issues in Zimbabwe this
process has proven problematic. In view of the difficulty involved in sourcing a reliable discount rate and the
difficulty in reliably estimating the time frame to secure full settlement of the RBZ debt, Aquarius has recognised
a non-cash expense of $28.5m in the share of loss from joint ventures, equal to its share of the full amount of
the RBZ receivable.
Blue Ridge and Sheba’s Ridge
On 14 October 2014, the agreement to sell the Company’s indirect interests in Blue Ridge Platinum (Pty) Ltd and
Sheba’s Ridge Platinum (Pty) Ltd was terminated. As a consequence the carrying amount of the Blue Ridge and
Sheba’s Ridge assets has been reviewed resulting in an impairment charge of $20 million being included in the
share of loss from joint venture entities.
The Group Financials by Operation can be found at www.aquariusplatinum.com
Aquarius Platinum Limited
Consolidated Income Statement
Year ended 30 June 2015
$’000
Half year ended Year ended
Note
30/06/15 31/12/14 30/06/15 30/06/14
Attributable Production (4E PGM oz) 173,595 175,831 349,426 331,642
Revenue (i) 99,645 113,263 212,908 233,056
Cost of sales (including D&A) (ii) (101,090) (109,726) (210,816) (231,158)
Gross (loss)/profit (1,445) 3,537 2,092 1,898
Other income 63 110 173 174
Administrative costs (iii) (2,992) (3,238) (6,230) (7,353)
Foreign exchange gain/(loss) (iv) 1,975 (403) 1,572 1,843
Finance costs (v) (7,623) (7,814) (15,437) (28,091)
Impairment losses (vi) (28,871) (574) (29,445) (3,084)
Profit on repurchase of bonds - - - 10,925
Profit on sale of assets (vii) 19,385 1,126 20,511 653
Foreign currency translation reserve
recycled on disposal (viii) (13,262) - (13,262) -
BEE partner guarantee (ix) (2,093) - (2,093) -
Rehabilitation cost reversal - - - 5,342
Share of profit/(loss) from joint venture
entities (x) 889 (49,187) (48,298) 5,055
Loss before tax (33,974) (56,443) (90,417) (12,638)
Income tax expense (xi) (7,367) (293) (7,660) (544)
Net loss (41,341) (56,736) (98,077) (13,182)
Loss per share (basic – cents) (2.66) (3.93) (6.59) (1.38)
Notes on the Consolidated Income Statement
(i) Sales revenue was lower despite increased production due to lower PGM prices compared to the pcp.
(ii) Aggregate cost of sales were $20 million lower year-on-year. In South Africa unit costs per PGM ounce
decreased 9% in Dollar terms but increased by 1% in Rand terms due to a 10% average decrease in the
value of the Rand compared to the Dollar.
(iii) Corporate administration costs are lower due to cost reduction initiatives.
(iv) Foreign exchange gains of $1.6 million were recorded on sales adjustments and revaluation of cash,
intercompany loans and pipeline debtors.
(v) Finance costs of $15 million comprises interest of $10 million on convertible notes and bank
borrowings and $5 million of non-cash interest arising from the unwinding of the net present value of
the rehabilitation provisions of AQPSA.
(vi) Includes impairment charges of $28 million for Plat Mile.
(vii) Includes profit on sale of Kruidfontein of $19 million and profit on sale of Everest of $2 million.
(viii) Represents reclassification of the cumulative amount of foreign exchange differences relating to
Kruidfontein up to the date of disposal.
(ix) Represents costs incurred in the provision of a limited pledge in favour of Aquarius' BEE partners.
(x) Share of loss from joint venture entities includes a $24 million loss at Mimosa (which includes $28.5
million discounting of the RBZ receivable and a $4.5 million provision for 15% export tax) and a $24
million loss at Blue Ridge and Sheba’s Ridge (which includes $20 million impairment).
(xi) Income tax expense of $8 million comprises normal tax, deferred tax and royalties.
Aquarius Platinum Limited
Consolidated Cash Flow Statement
Year ended 30 June 2015
$’000
Half-year ended Year ended Year ended
Note 30/06/15 31/12/14 30/06/15 30/06/14
Net operating cash inflow (i) 11,828 6,024 17,852 21,092
Net investing cash inflow/(outflow) (ii) 23,780 14,754 38,534 (27,224)
Net financing cash (outflow)/inflow (iii) (1,075) 13,615 12,540 62,271
Net increase in cash held 34,533 34,393 68,926 56,139
Opening cash balance 164,211 136,820 136,820 77,773
Exchange rate movements on cash (iv) (2,971) (7,002) (9,973) 2,908
Closing cash balance 195,773 164,211 195,773 136,820
Notes on the Consolidated Cash Flow Statement
(i) Includes $222 million inflow from sales, $210 million paid to suppliers and $6 million interest received.
(ii) Includes $27 million proceeds from the sale of Kruidfontein, $33 million proceeds from the sale of Everest
and $23 million of payments for mining assets.
(iii) Includes $6 million interest paid, $2 million net proceeds from borrowings and $20 million dividends from
Mimosa.
(iv) Reflects movement of other currencies against the Dollar.
Aquarius Platinum Limited
Consolidated Balance Sheet
At 30 June 2015
$’000
Year ended
Note 30/06/15 30/06/14
Assets
Cash assets 195,773 136,820
Current receivables (i) 29,231 30,104
Other current assets (ii) 8,463 15,246
Mining assets (iii) 163,439 209,211
Intangible asset (iv) 17,727 54,499
Investments in joint venture entities (v) 150,609 230,410
Other non-current assets (vi) 28,823 41,185
Total assets 594,065 717,475
Liabilities
Current interest-bearing liabilities (vii) 124,880 1,362
Other current liabilities (viii) 38,601 38,761
Non-current interest-bearing liabilities (ix) 2,020 118,919
Other non-current liabilities (x) 71,091 84,665
Total liabilities 236,592 243,707
Net assets 357,473 473,768
Equity
Issued capital 75,266 73,216
Treasury shares (26,056) (26,239)
Reserves 761,134 781,692
Accumulated losses (456,760) (360,450)
Total equity attributable to equity holders of Aquarius
Platinum Limited 353,584 468,219
Non-controlling interests (xi) 3,889 5,549
Total equity 357,473 473,768
Notes on the Consolidated Balance Sheet
(i) Reflects debtors receivable on PGM concentrate sales.
(ii) Reflects PGM concentrate inventories, reef stockpiles and consumables stores.
(iii) Represents mining assets, plant and equipment at Kroondal and Marikana.
(iv) Includes intangibles relating to the acquisition of Platinum Mile Resources (Pty) Ltd.
(v) Reflects investment in joint venture entity, Mimosa.
(vi) Includes the recoverable portion of rehabilitation provision from Anglo Platinum of $9 million,
receivable of $5 million representing the net realisable value of Ridge assets and investments in
rehabilitation trusts of $14 million.
(vii) Includes convertible notes due December 2015 of $123 million and AQPSA equipment leases of $2
million.
viii) Includes creditors and other payables of $35 million and provisions of $4 million.
(ix) Represents AQPSA equipment leases. Convertible notes are now classified as current liabilities.
(x) Includes deferred tax liabilities of $8 million, provision for closure costs of $61 million and
rehabilitation obligations on P&SA1 (Kroondal) and P&SA2 (Marikana) structures of $2 million.
(xi) Non-controlling interests reflects the 8.3% outside equity interest of Platmile Resources (Pty) Ltd.
OPERATING REVIEW
This section contains summarised operating reviews of each of the Company’s operations. Full operating
statistics are provided on page 15 of this report, and other updates relevant to all operations can be found
under Corporate Matters on page 14. In addition, further detail on each of the operations can be obtained
from the quarterly and half-year reports released by the Company throughout the financial year, which are
available on the Company’s website at www.aquariusplatinum.com.
AQUARIUS PLATINUM (SOUTH AFRICA) (PTY) LTD (“AQPSA”) (Aquarius Platinum - 100%)
P&SA 1 at Kroondal (AQPSA – 50%)
- 12-month rolling average DIIR improved by 11% to 0.65 per 200,000 man hours from 0.73 the previous
year
- Production declined by 1% to 7,151 million tonnes
- Volumes processed slightly reduced by 0.2% to 7,160m tonnes
- Head grade improved slightly to 2.43 g/t from 2.39g/t
- Recoveries increased by 1% to 79%
- PGM production increased by 3% to 442,477 PGM ounces
- Revenue decreased by 2% to R4.492 billion compared to the previous financial year due the weakening
of the Dollar basket price by 7%, but improved production coupled with 10% weakening in the Rand
Dollar exchange rate offset this reduction in the dollar basket price
- Mining cash costs increased by 4% to R567 per tonne, and costs per PGM ounce increased by 1% to
R9,168
- Kroondal’s cash margin for the period decreased from 15% to 10%
Commentary – Kroondal
Safety, Health and Environment
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 Kroondal operations ended the year with an improved DIIR compared to the previous year.
Operations
Production for the year declined by 1% to 7,151 million tonnes. During the year, the Kroondal work force
maintained a positive outlook with open communication channels on all levels. A recognition agreement was
concluded with AMCU in early January 2015. Negotiations were conducted in a mature manner which
management would like to commend AMCU for.
Operating Cash Costs
Cash costs at Kroondal increased by 1% to R9,168 per 4E ounce.
AQPSA Operating costs per ounce (R/oz)
4E 6E 6E net of by-products
(Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni&Cu)
Kroondal 9,168 7,525 7,321
AQPSA Capital expenditure
Stay-in-business capital expenditure was in line with the mine plan and mobile equipment replacement
schedule.
Kroondal (100% basis)
(R’000 unless otherwise stated) Total Per 4E oz
Ongoing Infrastructure Establishment 368,545 833
Project Capital 41,978 95
Mobile Equipment 125,215 282
Total 535,738 1,210
P&SA2 at Marikana (Aquarius Platinum – 50%)
Given the continuing low Rand PGM basket prices, Marikana continues on care and maintenance until further
notice.
Everest Mine
Part A of the sale to Northam was concluded and Part A proceeds of R400 million received. Section 11
approvals are underway for conclusion of Part B following which the remaining R50 million becomes payable to
Aquarius.
MIMOSA INVESTMENTS (Aquarius Platinum - 50%)
Mimosa Platinum Mine
- 12-month rolling average DIIR improved to 0.03 per 200,000 man hours from 0.08 in the previous year
- Production increased by 5% to 1.3 million tonnes
- Volumes processed increased by 3% to 2.6 million tonnes
- Head grade was constant at 3.65g/t
- Recoveries improved by 1% to 78%
- PGM production increased by 7% to 236,067 PGM ounces
- Revenue increased by 5% to $272 million due to higher metal sales
- Mining cash costs decreased 8% to $73 per tonne, and PGM ounce cost decreased by 9% to $802
- Mimosa’s cash margin for the period increased to 29% from 24%
Commentary
Safety, Health and Environment
No fatalities occurred at Mimosa during the year. One lost-time injury was reported during the period in line
with improvement in DIIR.
Operations
The Mimosa mine operated very well during the year, enjoying cordial industrial relations and meeting most of
its production targets.
Regulatory and fiscal environment
During the year, the Zimbabwean political and regulatory environment remained uncertain in a number of
respects. Significant regulatory fiscal issues are as follows:
15% Export Levy on un-beneficiated PGMs
In the 2015 National Budget Statement, the deferment of the 15% export levy on un-beneficiated platinum to
January 2017 was proposed. However, the Finance Act (No 3) of 2014 which gives legal effect to the budget
proposals did not include the deferment of the 15% tax on un-beneficiated PGMs. This effectively meant that
the tax was not deferred and hence the 15% export levy on un-beneficiated PGMs became law effective
1 January 2015. The Company continues to engage the authorities in consultation with the Chamber of Mines
to have the levy deferred. In the absence of the formal deferment in law, and having considered the above the
Directors believe it is prudent to provide for the impact of this levy. Accordingly an attributable amount of $4.5
million has been accrued for the financial year ended June 2015. Aquarius and Mimosa are confident that the
matter will be resolved and remains committed to building good working relations with the Government of
Zimbabwe. Furthermore Mimosa, together with the other Platinum producers in Zimbabwe, are currently in
the process of assessing the viability of a number of in-country smelting and beneficiation alternatives. The
outcome of these assessments will be communicated to all relevant stakeholders in due course.
Royalties
The proposal to render royalties payable by Mimosa non-deductible for income tax purposes was implemented
with effect from the year of assessment beginning on 1 January 2014, and therefore impacted Mimosa from
the start of the 2014 financial year on 1 July 2013. This position has remained in the 2015 national budget. The
financial impact of the non-deductibility of royalties was $4.2 million for the financial year to June 2014 and
$4.7 million for the financial year ended June 2015, 50% of which is attributable to Aquarius. Negotiations are
continuing with the authorities to confirm that the royalties are deductible for income tax purposes.
Indigenisation
Mimosa continues to interact with the Ministry of Indigenisation and Ministry of Mines to work towards a
sustainable solution in relation to indigenisation, but in the period under review no agreements or definitive
terms were agreed between Mimosa and the Ministry of Indigenisation. As a result, the matter is ongoing and
management is unable to estimate the financial impact of the proposed transaction.
Operating Cash Costs
Unit operating costs decreased by 9% from the prior year mainly as a result of the impact of increased
production.
Operating cash costs per ounce ($/oz)
4E 6E 4E net of by-products
(Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni, Cu & Co)
Mimosa 802 757 672
Capital expenditure
Stay in business capital expenditure at Mimosa was $27.8 million ($118 per PGM ounce), spent mainly on
mobile equipment, drill rigs, LHDs, the conveyor belt extension and down dip development.
TAILINGS OPERATIONS
Platinum Mile (Aquarius Platinum – 91.7%)
- Material processed was 4.648m tonnes
- Recoveries were 12%
- Production amounted to 10,154 PGM ounces
- Cash costs were R8,237 per PGM ounce
- Revenue was R95 million
- The cash margin for the year was 12%
Commentary
Platinum Mile
As reported with half year results it is expected that Anglo Platinum will start the commissioning of their dump
re-treatment project before in the end of the 2015 calendar year. This project could result in some 280,000
tons per month of additional feed being treated at the operation.
The increase in feed volumes at the operation should result in increased production yields for the rest of the
ensuing financial year and could be the catalyst for continued profitable operation amid strained market and
pricing conditions.
Operating cash costs per ounce (R/oz)
4E 6E 4E net of by-products
(Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni, Cu& Co)
PMR 8,237 7,031 6,526
Chromite Tailings Retreatment Plant (CTRP) (Aquarius Platinum - 50%)
This operation remains on care and maintenance.
CORPORATE MATTERS
Sale of non-core assets
During the year $60 million was received following the successful disposal of two non-core assets comprising
the Kruidfontein mining rights and the Everest mine (Part A).
Part B of the Everest disposal being R50 million for the Everest Mining Right is subject to the consent of the
Minister of Mineral Resources in terms of section 11 of the Mineral and Petroleum Resources Development
Act. The section 11 application has been submitted to the Department of Mineral Resources. Should the
Ministerial Consent not be obtained, the first part of the Disposal will not be unwound.
Growth projects
Aquarius previously advised that two growth projects had been identified. The following progress was made on
both projects during the year:
Mimosa expansion
The pre-feasibility study of the expansion of Mimosa by 25% was completed during the year and the summary
results released as part of the interim release in February 2015. The bankable feasibility study is currently
underway and is due to be completed in time for the FY16 half year release in February 2016.
Kroondal tailings retreatment project
Aquarius recently received formal confirmation from the Department of Water and Sanitation (DWS) that the
technical specification submitted by the company had been approved and hence the company expects the
issue by the DWS of an appropriate Integrated Water Use Licence (“IWUL”). Upon receipt of the IWUL Aquarius
will update the relevant cost and capital assumptions and advise shareholders accordingly.
Importantly, Aquarius will take into account the prevailing and forecast metal price environment and balance
sheet strength before it commits any capital to projects.
More information on all corporate matters can be found at www.aquariusplatinum.com
The statistical information graph can be found at www.aquariusplatinum.com
Aquarius Platinum Limited
Incorporated in Bermuda
Exempt company number 26290
Board of Directors
Sir Nigel Rudd 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)
Tim Freshwater
Edward Haslam
Kofi Morna
Sir Nigel Rudd
Remuneration Committee
Edward Haslam (Chairman)
David Dix
Zwelakhe Mankazana
Sir Nigel Rudd
Nomination Committee
Sonja de Bruyn Sebotsa (Chairman)
Edward Haslam
Tim Freshwater
Kofi Morna
Sir Nigel Rudd
Willi Boehm
Chief Operating Officer
Robert Schroder
Company Secretary
Willi Boehm
AQPSA Management
Robert Schroder Managing Director
Jean Nel Executive Director
Gawie De Wet Acting 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 30 June 2015, the Company had on issue 1,505,339,079 fully paid common shares.
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
12 August 2015
Broker (LSE) Broker (ASX) Sponsor (JSE)
Barclays Euroz Securities Rand Merchant Bank
5 The North Colonnade Level 18 Alluvion (A division of FirstRand Bank
Canary Wharf 58 Mounts Bay Road, Limited)
London E14 4BB Perth WA 6000 1 Merchant Place
Telephone: +44 (0) 20 7623 2323 Telephone: +61 (0) 8 9488 1400 Cnr of Rivonia Rd and Fredman
Drive, Sandton 2196
Johannesburg South Africa
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 1, Suite 6, Southpoint, 100 Mill Point Road, 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
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
pcp previous corresponding period
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
RBZ Reserve Bank of Zimbabwe
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: 12/08/2015 08:29:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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