AQUARIUS PLATINUM LIMITED
ASX, LSE & JSE
HALF-YEAR RESULTS TO 31 DECEMBER 2014
Key Points: Financial
Revenue of $113 million comparable to prior corresponding period (pcp)
Group mine EBITDA higher at $18 million (H1 2014: $10 million) due to higher
production and improved cost management
Share of profit from JV entities: EBITDA $27 million
JV entities contributed a net loss of $49 million after one off non-cash write
downs of $55 million
Headline loss (before exceptional charges) of $30 million at 2.07 cents per
share (H1 2014: loss of $22 million at 4.58 cents per share)
Accounting net loss after tax (to IFRS) of $57 million (3.93 cents per share)
(H1 2014: loss of $24 million at 2.89 cents per share)
Mine operating net cash flow increased by $5 million to a $10 million inflow
(H1 2014: inflow of $5 million)
Group cash balance at 31 December 2014 of $164 million, with a further $8
million attributable to Aquarius held in JV entities
Key Points: Operational
Significant improvement in Kroondal's safety performance with LTIFR improving
to 0.62 from 0.99 in the pcp
Mimosa's LTIFR of 0.05 makes it the safest underground Platinum mine in
southern Africa
Group attributable production increased by 5% to 175,831 PGM ounces (H1 2014:
168,014 PGM ounces)
Kroondal consistently producing at capacity levels with 8 consecutive quarters
above 105,000 PGM ounces
Kroondal unit costs well controlled increasing by 1% in Rand terms and
decreasing 7% in Dollar terms due to a weaker Rand
Production in H1 ahead of guidance
Mimosa performed strongly again, continuing to produce at capacity with a
record H1 production
Mimosa unit costs down 7% compared to the pcp reflecting benefits of the
rationalisation program implemented in FY2014
Mimosa PGM Dollar price remained weak with a marginal 2% increase compared to
the pcp
Mimosa Q2 production of >60,000 PGM ounces (50% attributable to Aquarius)
represents the highest ever quarterly production by Mimosa
PlatMile operation continues to build up production following the end of the
strike in August 2014
The average US Dollar PGM basket price of $1,165 was in line with the pcp
The average Rand basket price increased by 9% compared to the pcp due to a
weaker Rand
The Rand weakened by 9% on average against the US Dollar compared to the pcp
Key Points: Strategic
Disposal of the Kruidfontein prospecting rights for $27 million was concluded
in the half-year
A recognition agreement has been concluded with AMCU at Kroondal
Disposal of Everest mine for R450 million in cash - agreement signed 10
February 2015
Commenting on the results, Jean Nel, CEO of Aquarius Platinum, said:
The Group's stated focus on operational improvements in the face of a very
difficult operating, labour, political and social environment continued to
yield results in the six months to December 2014. The six months under review
was characterised by continued operational progress, improved safety
performance, reduced costs and record production for the Group. In addition to
excellent operating performances by both Kroondal and Mimosa, our incremental
projects progressed satisfactorily during the half-year and the Group's balance
sheet was strengthened following the sale of non-core assets. We continue to
expect a difficult operating and metal price environment in the short term
which directs our focus on operational efficiencies and responsible capital
stewardship.
Financial results: Half-Year to 31 December 2014
Aquarius recorded a consolidated accounting net loss after tax (IFRS) of $57
million (the Result) for the half-year (3.93 cents per share). The result
included the following one off non-cash charges arising in joint venture
entities:
An impairment of the carrying value of Blue Ridge/Sheba's Ridge investment of
$26 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 $28.5 million.
EBITDA from controlled entities was $18 million, an $8 million (83%) increase
from the pcp. The increase in EBITDA was driven by higher Rand basket prices,
increased production and continued costs discipline. Production attributable to
Aquarius increased 5% to 175,831 PGM ounces.
Profit & Production Summary
Aquarius JV Total Consolidation Aquarius
operations entities adjustment Group
Mine EBITDA $18M $27M $45M ($27M) $18M
Revenue $113M $73M $186M ($73M) $113M
Cost of sales ($110M) ($55M) ($165M) $55M ($110M)
Net profit/(loss) ($8M) ($49M) * ($57M) - ($57M)
after tax
PGM ozs production 116,511 59,320 175,831 - 175,831
* Includes $28 million discounting of RBZ receivable and $26 million impairment
of Blue Ridge and Sheba's Ridge
Revenue (PGM sales, interest) for the half-year of $113 million was in line
with the pcp with increased production offset by a $7 million negative sales
adjustment. Dollar prices remained unchanged to the pcp at $1,165 per PGM
ounce. In Rand terms, the PGM basket increased by 9% directly as a result of a
weaker Rand which also decreased 9% to R10.94, compared to the pcp. In
Zimbabwe, PGM prices were similarly subdued recording a 2% increase to $1,164
compared to the pcp.
Total cash cost of production was $97 million, down $7 million despite a 3%
increase in production at Kroondal. This was primarily due to good cost
control and the weakening Rand which resulted in lower Dollar costs.
Significantly, Kroondal recorded its eighth consecutive +105,000 PGM ounce
production quarter, a record for the mine. This is particularly pleasing given
the ongoing difficult operating conditions.
Cost per PGM ounce in Dollar terms in South Africa decreased 7% to $870 but
increased 1% in Rand terms due to an 8% weakening in the Rand/US Dollar
exchange rate. In Zimbabwe the cash cost per PGM ounce was $798, a 7%
reduction demonstrating the impact of the rationalisation program completed at
the mine 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.
Exchange rate movements continued to have a volatile effect on earnings. The
Rand weakened significantly to average R10.94 to the US Dollar compared to
R10.06 in the pcp. During the half-year, Aquarius recorded net foreign exchange
losses of $0.4 million comprising gains on sales adjustments and revaluation of
cash, intercompany loans and pipeline debtors.
Administration costs of $3 million were down $1 million. Depreciation and
amortisation for the year of $13 million was lower despite increased production
due to an increased resource base resulting from the extension of the Kroondal
mine life.
Finance costs include $3 million interest on convertible bonds and bank
borrowings, $2 million of non-cash interest arising from the unwinding of the
debt 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.
Cash balances
Group cash at 31 December 2014 was $164 million, up $27 million from June 2014.
The increase in cash was mainly attributable to $27 million of proceeds
received on the sale of Kruidfontein. In addition to this, the Group paid $12
million to fund its capital expenditure program, paid $3 million in interest
and received $15 million of dividends from Mimosa.
Cash held at Mimosa and Blue Ridge which is no longer classified as group cash
due to the adoption of equity accounting was $16 million (100% basis).
Sale of assets
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 $1.2 million was recorded after a non-cash adjustment
of $13 million resulting from the reversal of foreign exchange translation
reserve following the sale of the entity.
Reconciliation of cash proceeds to accounting profit:
$M
Cash proceeds 26.8
Tax expense (4.3)
Shares issued to original vendor (8.0)
Reversal of foreign currency translation reserve (13.3)
on disposal *
Accounting profit on sale 1.2
* 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 the acquisition of Kruidfontein. 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 Group's income
statement. Accordingly the accounting profit on sale of Kruidfontein has been
reduced by a non-cash amount of $13.3 million, reflecting the reclassification
of the cumulative amount of foreign exchange differences relating to
Kruidfontein up to the date of disposal.
Everest
Subsequent to half-year end, Aquarius announced on 10 February 2015 that it has
entered into a conditional agreement to sell its Everest mine and related
assets to Northam Platinum Limited for an amount of R450 million subject to the
fulfilment of certain conditions precedent. A detailed release is available on
the company's website.
Joint venture entities
Mimosa
Mimosa recorded an EBITDA profit attributable to Aquarius of $27 million and a
net loss before tax of $12 million. The result was achieved on production of
59,320 PGM ounces attributable to Aquarius. Despite consistent production, the
97% increase in EBITDA compared to the pcp was driven by higher production (up
9%), lower unit costs (down 7%) and a marginally higher PGM basket price (up
2%).
Cash held in Mimosa at 31 December 2014 was $14 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
Blue Ridge and Sheba's Ridge recorded a net loss after tax of $29 million. This
result includes the $26 impairment charge as well as care and maintenance and
interest costs.
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 $26 million
being included in the share of loss from joint venture entities.
Group Financials by Operation
Kroondal Marikana Everest Mimosa PMR
PGM ounces (4E) (attributable) 111,682 - - 59,320 4,829
$M
Revenue 106 - - 73 4
Cost of sales - mining, processing & (91) (1) (1) (46) (3)
admin
Cost of sales - depreciation & (10) - (1) (9) (1)
amortisation
Gross profit/(loss) 4 (1) (2) 18 (1)
Administrative costs - - - - -
Foreign exchange gain/(loss) 6 - - - -
Finance costs - - - - -
Impairment losses - - - - -
Profit on sale of assets - - - - -
Community share ownership trust - - - (1) -
Discounting of RBZ receivable - - - (29) -
Share of loss from joint venture entities - - - - -
Profit/(loss) before income tax 10 (1) (2) (12) (1)
Reconciliation to
Ridge Corporate Total Consolidated Consolidated
Information *
PGM ounces (4E) - - 175,831
(attributable)
$M
Revenue - 3 186 (73) 113
Cost of sales -
mining, processing & - - (143) 47 (97)
admin
Cost of sales -
depreciation & - - (22) 9 (13)
amortisation
Gross profit/(loss) - 3 21 (17) 4
Administrative costs - (3) (3) - (3)
Foreign exchange - (6) - - -
gain/(loss)
Finance costs - (10) (10) 2 (8)
Impairment losses (26) (1) (27) 26 (1)
Profit on sale of - 1 1 - 1
assets
Community share - - (1) 1 -
ownership trust
Discounting of RBZ - - (29) 29 -
receivable
Share of loss from
joint venture - - - (49) (49)
entities
Profit/(loss) before (26) (14) (47) (9) (56)
income tax
* In the consolidated financial statements the Mimosa and Blue Ridge operating
segments are accounted for using the equity method. The table above provides a
reconciliation of the segment information to the IFRS financial statements.
Aquarius Platinum Limited
Consolidated Income Statement
Half-Year ended 31 December 2014
$'000
Half-Year Ended Year
Ended
Note 31/12/14 31/12/13 30/06/14
Attributable Production (PGM Ounces) 175,831 168,014 331,642
Revenue (i) 113,263 113,173 233,056
Cost of sales (including D&A) (ii) (109,726) (120,751) (231,158)
Gross profit/(loss) 3,537 (7,578) 1,898
Other income 110 72 174
Administrative costs (iii) (3,238) (4,336) (7,353)
Foreign exchange (loss)/gain (iv) (403) 2,731 1,843
Finance costs (v) (7,814) (15,295) (28,091)
Impairment losses (574) (2,487) (3,084)
Profit on repurchase of bonds - - 10,925
Profit/(loss) on sale of assets 1,126 (31) 653
Closure, transition and - - 5,342
rehabilitation reversal
Share of (loss)/profit from joint (vi) (49,187) 166 5,055
venture entities
Loss before income tax (56,443) (26,758) (12,638)
Income tax (expense)/benefit (293) 2,730 (544)
Net loss for the period (56,736) (24,028) (13,182)
Non-controlling interests 95 12 (134)
Loss attributable to equity holders
of (56,831) (24,040) (13,048)
Aquarius Platinum Limited
Loss per share (basic - cents) (3.93) (2.89) (1.38)
Notes on the Consolidated Income Statement
Revenue of $113 million is comparable to the pcp despite higher production due
to $7 million of negative sales adjustments.
Cost of sales were 9% lower due to a 9% weakening of the Rand compared to the
pcp. In Rand terms, unit costs increased 1% per PGM ounce in South Africa.
Relates to group administration costs inclusive of costs associated with
business development activities, regulatory compliance, legal and financial
advisory.
Foreign exchange includes gains/losses on cash, intercompany loans, pipeline
debtors and sales adjustments due to the movement of the Dollar against other
currencies.
Finance costs include $3 million interest on convertible bonds and bank
borrowings, $2 million of non-cash interest arising from the unwinding of the
debt 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.
Share of (loss)/profit from joint venture entities comprises operating profit
of $5 million offset by impairment of Blue Ridge/Sheba's Ridge of $26 million
and discounting of the RBZ receivable of $28.5 million.
Aquarius Platinum Limited
Consolidated Cash Flow Statement
Half-year ended 31 December 2014
$'000
Half-year ended Year ended
Note 31/12/14 31/12/13 30/06/14
Net operating cash inflow (i) 10,310 4,706 21,092
Net investing cash inflow/(outflow) (ii) 14,754 (10,989) (27,224)
Net financing cash inflow (iii) 9,329 9,912 62,271
Net increase in cash held 34,393 3,629 56,139
Opening cash balance 136,820 77,773 77,773
Exchange rate movement on cash (iv) (7,002) 1,596 2,908
Closing cash balance 164,211 82,998 136,820
Notes on the Consolidated Cash Flow Statement
Includes $108 million inflow from sales, $101 million paid to suppliers and $3
million interest received.
Includes $27 million proceeds from the sale of Kruidfontein and $12 million of
payments for property, plant & equipment and mine development costs.
Includes $3 million interest paid, $6 million proceeds from borrowings, $7
million repayment of borrowings and $15 million dividends from Mimosa.
Reflects movement of other currencies against the Dollar.
Aquarius Platinum Limited
Consolidated Balance Sheet
At 31 December 2014
$'000
Half-year ended Year
ended
Note 31/12/14 31/12/13 30/06/14
Assets
Cash assets 164,211 82,998 136,820
Current receivables (i) 27,551 22,901 30,104
Other current assets (ii) 16,590 16,704 15,246
Mining assets (iii) 198,870 211,024 209,211
Intangible asset (iv) 49,230 55,696 54,499
Investments in joint venture entities (v) 152,437 204,817 230,410
Other non-current assets (vi) 41,944 67,085 41,185
Total assets 650,833 661,225 717,475
Liabilities
Current liabilities (vii) 155,287 35,822 40,123
Non-current interest-bearing liabilities (viii) 2,207 274,194 118,919
Other non-current liabilities (ix) 80,497 93,466 84,665
Total liabilities 237,991 403,482 243,707
Net assets 412,842 257,743 473,768
Equity
Issued capital 75,098 24,408 73,216
Treasury shares (25,871) (27,331) (26,239)
Reserves 775,186 626,417 781,692
Accumulated losses (417,281) (371,442) (360,450)
Total equity attributable to equity
holders
407,132 252,052 468,219
of Aquarius Platinum Limited
Non-controlling interests (x) 5,710 5,691 5,549
Total equity 412,842 257,743 473,768
Notes on the Consolidated Balance Sheet
Reflects debtors receivable on PGM concentrate sales.
Reflects PGM concentrate inventories, reef stockpiles and consumables stores.
Represents mining assets, plant and equipment at Kroondal, Marikana and
Everest.
Includes intangibles relating to contract value acquired on the acquisition of
equity interest in Platinum Mile Resources (Pty) Ltd.
Reflects investments in joint venture entities - Mimosa, Blue Ridge and Sheba's
Ridge.
Includes the recoverable portion of rehabilitation provision from Anglo
Platinum of $9 million, receivable of $6 million representing the net
realizable value of Ridge assets, investments in rehabilitation trusts of $14
million and AQPSA deferred tax asset of $13 million.
Includes convertible notes due December 2015 of $120 million, creditors and
other payables of $26 million, AQPSA equipment leases of $2 million, income tax
payable of $3 million and provisions of $4 million.
Represents AQPSA equipment leases and now excludes convertible notes.
Includes deferred tax liabilities of $16 million, provision for closure costs
of $63 million and rehabilitation obligations on P&SA1 and P&SA2 structures of
$2 million.
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 17 of this report,
and other updates relevant to all operations can be found under Corporate
Matters on page 16. 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 37% to 0.62 per 200,000 man hours
from 0.99 the previous year
Production improved by 3% to 3.8 million tonnes
Volumes processed increased to 3.7m tonnes
Head grade deteriorated slightly to 2.39 g/t from 2.4g/t
Recoveries increased by 1% to 79%
PGM production increased by 3% to 223,363 PGM ounces
Revenue increased by 8% to R2.3 billion compared to the previous financial year
due improved production coupled with 9% weakening in the Rand Dollar exchange
rate
Mining cash costs increased by 1% to R542 per tonne (making Kroondal the most
efficient underground platinum mine in South Africa on a R/t basis), and costs
per PGM ounce increased by 1% to R8,963
Kroondal's cash margin for the period rose from 10% to 13%
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 half-year with an improved DIIR compared to
the pcp.
Operations
Production for the half-year improved by 3% to 3.8 million tonnes. During the
half-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 R8,963 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 8,963 7,355 7,150
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 202,215 905
Project Capital (K6 shaft) 11,914 53
Mobile Equipment 48,334 216
Total 262,463 1,175
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
Similarly
the Everest mine remained on care and maintenance during the half-year.
Everest will continue to be on care and maintenance until the Competition
Commission approval for the sale of Everest to Northam has been obtained, at
which time responsibility for Everest related costs will become the
responsibility of Northam.
MIMOSA INVESTMENTS (Aquarius Platinum - 50%)
Mimosa Platinum Mine
12-month rolling average DIIR improved to 0.05 per 200,000 man hours from 0.10
in the previous corresponding half year
Production increased by 5% to 1.3 million tonnes
Volumes processed increased by 5% to 1.3 million tonnes
Head grade was constant at 3.64g/t
Recoveries improved slightly to 78%
PGM production increased by 9% to 118,641 PGM ounces
Revenue decreased by 26% to $146 million due to lower metal prices and sales
adjustments of $7 million
Mining cash costs decreased 7% to $70 per tonne, and PGM ounce cost decreased
by 7% to $798
Mimosa's cash margin for the period increased to 35% from 18%
Commentary
Safety, Health and Environment
No fatalities occurred at Mimosa during the half-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 half-year, the Zimbabwean political and regulatory environment
remained uncertain in a number of respects. Significant regulatory issues are
as follows:
Indigenisation
Mimosa continued to interact with the Ministry of Indigenisation and Ministry
of Mines to work towards a sustainable solution but to date no agreements or
definitive terms have been agreed between Mimosa and the Ministry of
Indigenisation.
15% Export Levy on un-beneficiated PGMs
In the 2015 National Budget Statement, the Minister proposed the deferment of
the 15% export levy on un-beneficiated platinum to January 2017. 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 legally suspended, and if implemented,
will have a significant impact on the company. The company is engaging the
authorities in consultation with the Chamber of Mines to seek clarity on the
issue.
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. It has and will continue to negatively impact the company. The
financial impact of the non-deductibility of royalties was $4.2 million for the
financial year to June 2014 and $2.6 million for the half-year to December
2014, 50% of which is attributable to Aquarius.
New Income Tax Act
The proposed new Income Tax Bill was gazetted in November 2012. However, the
President raised reservations which Parliament is still considering. The income
tax rate has remained at 25% of taxable income. However, the new Finance Act
(No3) 2014 introduced an Aids levy (3%) on corporate tax for mining companies.
Previously, mining companies were exempt from the Aids Levy. This effectively
increased the corporate tax rate from 25% to 25.75%.
Operating Cash Costs
Operating costs decreased by 7% from the pcp mainly as a result of the impact
of increased production as well as the benefits emanating from labour cost
savings following the labour rationalisation exercise carried out during the
last half of prior year.
Operating cash costs per ounce ($/oz)
4E 6E 4E net of by-products
(Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au)
(Ni, Cu & Co)
Mimosa 798 753 540
Capital expenditure
Stay in business capital expenditure at Mimosa was $13.8 million ($117 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 2,374m tonnes
Recoveries were 11%
Production amounted to 4,829 PGM ounces
Cash costs were R7,985 per PGM ounce.
Revenue was R46 million
The cash margin for the period was 13%
Commentary
Platinum Mile:
The operation resumed production after the devastating strikes in the platinum
sector during August 2014. For this reason no meaningful comparison can be
inferred by comparing half-year results to those of prior periods.
It is expected that Anglo Platinum will start the commissioning of their
Waterval East and West dump re-treatment project. This project could result in
some 280,000 tons of additional feed being treated at the operation. Current
estimates are that commissioning of this project will start during the first
half of 2015. The increase in feed volumes and efficiency improvements at the
operation should result in increased production yields for the rest of the
ensuing financial year.
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 7,985 6,832 6,323
Chromite Tailings Retreatment Plant (CTRP) (Aquarius Platinum - 50%)
This operation remains on care and maintenance.
CORPORATE MATTERS
Changes to Board responsibilities
Nicholas Sibley, who has been a Director since 1999 and Chairman since 2002
retires from the Board of Aquarius with effect from 28 February 2015. Sir
Nigel Rudd, who was appointed to the Board with effect from 1 November 2014 as
Chairman designate, will assume the Chairmanship.
The Board of Aquarius would like to extend its deepest gratitude to Mr. Sibley
for his many years to service to the Company. His contribution during this
tenure was enormous. We wish him the very best in his retirement.
More information on all corporate matters can be found at
www.aquariusplatinum.com
See www.aquariusplatinum.com for 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)
Tim Freshwater
Edward Haslam
Kofi Morna
Sir Nigel Rudd
Nicholas Sibley
Remuneration Committee
Edward Haslam (Chairman)
David Dix
Zwelakhe Mankazana
Sir Nigel Rudd
Nicholas Sibley
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
Mimosa Mine Management
Robert Schroder Winston Chitando
Managing Director
Chairman
Jean
Nel Peter
Executive Director Chimboza
Resident Director
Wessel Phumo
General Manager: Kroondal 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
JP Morgan Nominees Australia Limited 59,886,092 3.99
Primary Australian Securities Exchange Trading Information
Listing: (AQP.AX)
Premium London Stock Exchange (AQP.L) ISIN number BMG0440M1284
Listing:
Secondary JSE Limited (AQP.ZA) ADR ISIN number US03840M2089
Listing:
Convertible bond ISIN number
XS0470482067
Broker (LSE)
Broker (ASX) Sponsor (JSE)
Barclays Euroz Securities
5 The North Level 18 Alluvion
Colonnade 58 Mounts Bay Road, Rand Merchant Bank
Canary Wharf Perth WA 6000 (A division of FirstRand Bank
London E14 4BB Telephone: +61 (0) 8 Limited)
Telephone: +44 (0) 9488 1400 1 Merchant Place
20 7623 2323 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 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
+27 (0)10 001 2848 Willi Boehm
+61 (0) 8 9367 5211
Glossary
A$ Australian Dollar
Aquarius Aquarius Platinum Limited
or AQP
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 United States Dollar
or $
Everest Everest Platinum Mine
Great A PGE-bearing layer within the Great Dyke Complex in Zimbabwe
Dyke
Reef
GoZ Government of Zimbabwe
g/t Grams per tonne, measurement unit of grade (1g/t = 1 part per million)
JORC Australasian code for reporting of Mineral Resources and Ore Reserves
code
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) Platinum group elements plus gold. Five metallic elements commonly
(6E) 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) Platinum group metals plus gold. Aquarius reports PGMs as comprising
(4E) 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 South African Rand
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 Rustenburg Platinum Mines Limited, a subsidiary of Anglo Platinum
Limited 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