AQP Aquarius Plat.

AQUARIUS PLATINUM LIMITED

Half-Year Results to 31 December 2015

  Key Points: Financial

• Revenue of $78 million down 31% compared to the prior corresponding period (pcp) due to lower PGM prices
• Group mine EBITDA $5 million (H1 2015: $18 million) lower despite controlled operating costs due to lower PGM prices
• Share of profit from JV entities: EBITDA $3 million
• JV entities contributed a net loss of $53 million after one off non-cash impairment of $42 million
• Headline loss (before exceptional charges) of $25 million at 1.69 cents per share (H1 2015: loss of $30 million at 2.07 cents per share)
• Accounting net loss after tax (to IFRS) of $76 million (5.12 cents per share) (H1 2015: loss of $57 million at 3.93 cents per share)
• Convertible bonds $125 million repaid on maturity in December 2015
• Group cash balance at 31 December 2015 of $42 million, with a further $2 million attributable to Aquarius held in JV entities

Key Points: Operational

• Combined H1 production from Kroondal and Mimosa at 352,107 PGM ounces is the highest in the company’s history
• Continued improvement in Kroondal’s safety performance with 12 month LTIFR improving to 0.50 from 0.62 in the pcp
• Mimosa’s 12 month LTIFR deteriorated to 0.13 due to a fatality in August
• Group attributable production increased by 4% to 182,911 PGM ounces (H1 2015: 175,831 PGM ounces)
• Kroondal consistently producing at capacity levels with 12 consecutive quarters above 105,000 PGM ounces
• Kroondal unit costs well controlled increasing by 2% in Rand terms, compared to pcp, and decreasing 17% in Dollar terms due to a weaker Rand
• Production in H1 exceeded guidance at both Kroondal and Mimosa
• Mimosa performed strongly again, continuing to produce at capacity
• Mimosa unit costs down 2% compared to the pcp, starting to reflect the benefits of the cost savings implemented during H1 FY2015
• Mimosa PGM Dollar price weakened further reducing 26% compared to the pcp
• Mimosa production for the half year of 60,214 PGM ounces, up 2% compared to the pcp
• PlatMile operation continues to build up production - much dependant on volume and grade of concentrator feed from Anglo Platinum
• The average US Dollar PGM basket price of $825 was 29% lower compared with the pcp
• The average Rand basket price decreased by 13% compared to the pcp due to a weaker Rand
• The Rand weakened by 23% on average against the US Dollar compared to the pcp

Key Points: Strategic

• Repayment of convertible bonds $125 million
• Completion of part B of the Everest mine sale

Commenting on the results, Jean Nel, CEO of Aquarius Platinum, said:

Both Kroondal and Mimosa produced ahead of guidance and at reduced costs during the half year. Combined production from Kroondal and Mimosa, of 352,107 4E ounces for the half year is a company record. Both Kroondal and Mimosa’s PGM unit costs are lower today than 3 years ago in nominal terms (and substantially lower in real terms), a really credible performance by the operating teams lead by Rob Schroder and Winston Chitando. That said, the lower PGM prices experienced during the half year significant impaired both Kroondal and Mimosa’s profitability. In order to ensure sustainability in this macro environment (US$ PGM prices fell to the lowest level in more than a decade) further cost saving initiatives were implemented at Kroondal, and specifically Mimosa, which management expects to result in unit costs reducing further going forward.

In relation to the proposed amalgamation between AQP and Sibanye, following the approval by AQP shareholders of the amalgamation in general meeting on 18 January 2016, AQP continues to co-operate with Sibanye in fulfilling the remaining conditions precedent to the Amalgamation Agreement and AQP shareholders will be advised of any material progress in due course.

Financial results: Half-Year to 31 December 2015

Aquarius recorded a consolidated accounting net loss after tax (IFRS) of $76 million (the Result) attributable to its share holders for the half-year (5.12 cents per share). The result included one off non-cash charges of $55 million after tax relating to the impairment of mining assets at Mimosa and Platmile.

EBITDA from controlled entities was $5 million, a $13 million (75%) decease from the pcp. The Group's decreased EBITDA despite an increase in production was driven by depressed PGM prices which were 29% lower compared to the pcp. Production attributable to Aquarius increased 4% to 182,911 PGM ounces. All three mines, Kroondal, Mimosa and PlatMile exceeded the pcp production levels whilst maintaining good control over operating costs.

Profit & Production Summary

* Includes $55 million impairment of Mimosa and PlatMile

Revenue (PGM sales, interest) for the half year of $78 million was down 31% compared to the pcp.  The lower revenue reflects the difficult PGM metals price with Dollar prices dropping to average $825 compared to $1,165 in the pcp, a 29% decrease.  In Rand terms, the PGM basket decreased 13% cushioned to some extent by a weaker Rand which also decreased 23% to R13.43, compared to the pcp. In Zimbabwe, PGM prices were substantially lower, recording a 26% decrease to close at $856, compared to the pcp.

Total cash cost of production was $83 million, down $14 million despite a 4% 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 twelfth 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 17% to $679 but increased 2% in Rand terms due to a 23% weakening in the Rand/US Dollar exchange rate.  In Zimbabwe the cash cost per PGM ounce was $784, a 2% reduction demonstrating the beginning of the impact of the cost savings implemented in H1 FY2016. 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 R13.43 to the US Dollar compared to R10.94 in the pcp. During the half-year, Aquarius recorded net foreign exchange gains of $2.3 million comprising gains on sales adjustments and revaluation of cash, intercompany loans and pipeline debtors.

Administration costs of $3.9 million were in line with forecast. These included $1.5 million transaction costs incurred to date on the proposed Sibanye Gold amalgamation with the Group. Depreciation and amortisation for the half year was $9 million.

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 $2 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 2015 was $42 million, down $154 million from June 2015. The decrease in cash was mainly attributable to the $125 million repurchase of convertible bonds that matured in December 2015 and unrealised foreign exchange losses of $19 million following the restatement of Rand cash balances following the weakening of the Rand against the US Dollar.  In addition to this, the Group paid $7 million to fund its capital expenditure program, paid $3 million in interest and received $4 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 $4 million (100% basis).

Sale of assets

Part B of the Everest mine sale concluded in the half year resulting in the receipt of cash of R50 million ($3.5 million). An accounting profit of $4.5 million was recorded after taking into account the $1 million carrying value of Everest assets and liabilities.

Joint venture entities

Mimosa

Mimosa recorded an EBITDA profit attributable to Aquarius of $4 million and a net loss before tax of $51 million. The result was achieved on production of 60,214 PGM ounces attributable to Aquarius. Despite consistent production, the 83% decrease from $27 million to $4 million in EBITDA compared to the pcp was driven by lower PGM prices (down 26%), higher production (up 2%), and lower unit costs (down 2%).

In the 2015 National Budget presentation, the deferment of the VAT on un-beneficiated platinum to 1 January 2017 was proposed. However, the subsequent Finance Bill and Finance Act of 2015 did not include the deferment.  Post balance sheet date, the deferment to 1 January 2017 was legislated.

During the half year a dividend of $4 million was received from Mimosa.

Cash held in Mimosa at 31 December 2015 was $2 million (100% basis).

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.

Blue Ridge and Sheba’s Ridge

Blue Ridge and Sheba’s Ridge recorded a net loss after tax of $1.8 million.

Group Financials by Operation

* 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 2015

$’000

Notes on the Consolidated Income Statement

1. Revenue of $78 million is lower despite higher production due to lower PGM prices, down 29% compared to the pcp and $10 million of negative sales adjustments.
2. Aggregate cost of sales were 17% lower due to strong cost control across all mines and a 23% weakening of the Rand compared to the pcp.  In Rand terms, unit costs increased 2% per PGM ounce in South Africa.
3. Relates to group administration costs inclusive of costs associated with business development activities, regulatory compliance, legal and financial advisory and $1.5 million costs associated with the Sibanye amalgamation.
4. Foreign exchange includes gains/losses on cash, intercompany loans, pipeline debtors and sales adjustments due to the movement of the Dollar against other currencies.
5. 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 $2 million in non-cash interest arising from the unwinding of the net present value of the rehabilitation provisions of AQPSA.
6. Includes impairment of PlatMile mining assets $13.2 million before tax.
7. Share of loss from joint venture entities includes Mimosa impairment of $42 million.

Aquarius Platinum Limited

Consolidated Cash Flow Statement

Half-year ended 31 December 2015

$’000

Notes on the Consolidated Cash Flow Statement

1. Includes $98 million inflow from sales, $99 million paid to suppliers and $1 million interest received.
2. Includes $7 million of payments for mining assets.
3. Includes $3 million interest paid, $4 million dividend received from Mimosa and $125 million repayment of convertible bond.
4. Reflects movement of other currencies (Rand 18.7 million, GBP 0.5 million, AUD 0.2 million) against the Dollar.

Aquarius Platinum Limited

Consolidated Balance Sheet

At 31 December 2015

$’000

Notes on the Consolidated Balance Sheet

1. Reflects debtors receivable on PGM concentrate sales.
2. Reflects PGM concentrate inventories, reef stockpiles and consumables stores.
3. Represents mining assets, plant and equipment at Kroondal, Marikana and PlatMile.
4. Includes intangibles relating to contract value acquired on the acquisition of equity interest in Platinum Mile Resources (Pty) Ltd.
5. Reflects investments in joint venture entities - Mimosa, Blue Ridge and Sheba’s Ridge.
6. Includes the recoverable portion of rehabilitation provision from Anglo Platinum of $7 million, receivable of $4 million representing the net realisable value of Ridge assets, investments in rehabilitation trusts of $11 million and AQPSA deferred tax asset of $2 million.
7. Includes creditors and other payables of $31 million, AQPSA equipment leases of $2 million and provisions of $3 million.
8. Represents AQPSA equipment leases.
9. Includes deferred tax liabilities of $2 million, provision for closure costs of $48 million and rehabilitation obligations on P&SA1 and P&SA2 structures of $2 million.
10. 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 16 of this report, and other updates relevant to all operations can be found under Corporate Matters on page 15. 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 http://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 19% to 0.50 per 200,000 man hours from 0.62 the previous year
• Production constant on 3.8 million tonnes
• Volumes processed decreased slightly to 3.6m tonnes
• Head grade improved by 4% to 2.48 g/t from 2.39g/t
• Recoveries increased by 2% to 80%
• PGM production increased by 4% to 231,678 PGM ounces
• Revenue deteriorated by 17% to R1.9 billion compared to the previous financial year due weakening of 29% in the Dollar Basket Prices (R0.3 billion negative sales adjustment) but was offset with the weakened exchange rate of 23%
• Mining cash costs increased by 7% to R582 per tonne, and costs per PGM ounce increased by 2% to R9,117
• Kroondal’s cash margin for the period deteriorated from 13% to -10%

Commentary – Kroondal

Safety, Health and Environment

The Kroondal operations ended the half-year with an improved DIIR compared to the pcp by 19% at 0.5.

Operations

Production for the half-year remained constant at 3.8 million tonnes.   During the half-year, the Kroondal work force maintained a positive outlook with open communication channels on all levels.

Operating Cash Costs

Cash costs at Kroondal increased by 2% to R9,117 per 4E ounce.

AQPSA Operating costs per ounce (R/oz)

AQPSA Capital expenditure

Stay-in-business capital expenditure and mobile equipment replacement is expected to be within financial guidance made previously.

MIMOSA INVESTMENTS (Aquarius Platinum - 50%)

Mimosa Platinum Mine

• 12-month rolling average DIIR deteriorated to 0.13 per 200,000 man hours from 0.05 in the previous corresponding half  year
• Production decreased by 6% to 1.238 million tonnes
• Volumes processed increased by 1% to 1.310 million tonnes
• Head grade increased slightly to 3.65g/t
• Recoveries improved by 1% to 78.6%
• PGM production increased by 2% to 120,429 PGM ounces
• Revenue decreased by 32% to $99 million due to lower metal prices
• Mining cash costs increased 9% to $76 per tonne, and PGM ounce cost decreased by 2% to $784
• Mimosa’s cash margin for the period decreased to 6% from 35%

Commentary

Safety, Health and Environment

One fatality occurred at Mimosa during the half-year. Four lost-time injuries were reported during the period and resulted in deterioration in DIIR.

Operations

The Mimosa mine operated well during the half year, enjoying cordial industrial relations and meeting its production and cost targets.

Regulatory and fiscal environment

15% Export Levy on un-beneficiated PGMs/ Deductibility of Royalties

In the 2015 National Budget presentation, the deferment of the VAT on un-beneficiated platinum to 1 January 2017 was proposed. However, the subsequent Finance Bill and Finance Act of 2015 did not include the deferment.  Post balance sheet date, the deferment to 1 January 2017 was legislated.

Royalties

The 2015 National Budget was silent on the non-deductibility of royalties for income tax purposes. 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 remained unchanged in the 2015 National Budget. The financial impact of the non-deductibility of royalties was $1.7m for the half-year to December 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

The Minister of Youth, Indigenisation and Economic Empowerment gazetted the frameworks, templates and procedures for implementing the indigenization policy on 8 January 2016.The proposed frameworks sought to provide clarity on the indigenisation law and its implementation, and the Indigenisation Act remains unchanged.

Mimosa continues to interact with the Ministry of Indigenisation and Ministry of Mines to work towards a sustainable solution in relation to indigenisation.

Capital expenditure

Stay in business capital expenditure at Mimosa was $18 million ($150 per PGM ounce), spent mainly on mobile equipment, support & drill rigs and LHDs, the conveyor belt extension, down dip development and ventilation walls.

Operating Cash Costs

Operating costs decreased by 2% from the pcp mainly as a result of increased production as well as the benefits emanating from cost reduction initiatives currently being implemented by the company.

Operating cash costs per ounce ($/oz)

TAILINGS OPERATIONS

Platinum Mile (Aquarius Platinum – 91.7%)

• Material processed was 2,298m tonnes
• Recoveries were 17%
• Production amounted to 6,858 PGM ounces
• Cash costs were R7,593 per PGM ounce.
• Revenue was R60 million
• The cash margin for the period was 13%

Commentary

Platinum Mile:

All operating and financial indicators improved compared to the half year results of the previous financial year.

Anglo Platinum started the commissioning of their tailings re-treatment facility in the quarter and feed from this section was understandably erratic. This had a knock on effect on PMR's rougher flotation stability and recoveries.

At the end of the quarter PMR had implemented feed stability through level and flow control utilizing UG2 feed to keep the flow to the rougher circuit constant and maximized.

Operating cash costs per ounce (R/oz)

Chromite Tailings Retreatment Plant (CTRP) (Aquarius Platinum - 50%)
This operation remains on care and maintenance.

CORPORATE MATTERS

Board of Directors - Mr. David Dix

It is with profound regret and sadness that Aquarius Platinum Limited ("Aquarius Platinum") advises of the passing of Mr. David Dix, Director of Aquarius.

Mr. Dix joined the Board in March 2004 and served in the capacity of non-executive director, Chairman of the Audit Committee of the Group and was also a member of the Remuneration Committee.  During his tenure Mr. Dix was an integral part of the Board and an outstanding contributor to Aquarius Platinum during his 12 years on the Board.

Aquarius Platinum Chairman Sir Nigel Rudd on behalf of the Board and Management of the Group expressed his deepest condolences to wife Alexia and Mr. Dix's family.

Everest mine sale finalisation

Aquarius Platinum Limited (Aquarius) announced on 10 February 2015 that its subsidiary, Aquarius Platinum (South Africa ) (Pty) Ltd (AQPSA), had entered into an agreement to sell its entire interest in the  Everest Mine and ancillary mining and processing infrastructure and immovable properties to Northam Platinum Limited (Northam), for an aggregate cash consideration of 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 of the disposal process was completed on 26 June 2015 following the receipt of R400 million.

Subsequent to the end of the September quarter the parties obtained consent in terms of section 11 of the Mineral and Petroleum Resources Development Act, No. 28 of 2002 to transfer the Everest Mining Right to Northam and upon registration of the section 11 consent AQP received the Part B funds on 1 December 2015.

Sibanye Gold Amalgamation - update

Aquarius Platinum Limited shareholders approved the Amalgamation Agreement and Amalgamation on 18 January 2016. The approvals were a condition precedent to the transaction between the Company and Sibanye Gold Limited proceeding.  The only outstanding regulatory approvals required for the transaction to proceed are those of the South African Competition Commission and the Competition Tribunal (refer section 1.9 of the Explanatory Memorandum of the Meeting Materials for further detail).  Once these competition approvals have been obtained, a timetable of events leading up to the date for payment of the consideration will be announced to ASX, LSE and JSE and published on Aquarius’ website at www.aquariusplatinum.com.

More information on all corporate matters can be found at www.aquariusplatinum.com

See wwww.aquariusplatinum.com for statistical information table

Aquarius Platinum Limited
Incorporated in Bermuda

Exempt company number 26290

Board of Directors

Audit/Risk Committee

Edward Haslam (Chairman)

Tim Freshwater

Kofi Morna

Sir Nigel Rudd

Remuneration Committee

Edward Haslam (Chairman)

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

Issued capital

At 31 December 2015, the Company had on issue 1,508,344,873 fully paid common shares.

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:

Glossary