28 Apr 2011 07:49
Aquarius Platinum Limited Third Quarter 2011: Financial and Production Results to 31 March 2011
Highlights
Attributable production increased by 18% year-on-year to 122,213 PGM ounces
Average PGM Dollar prices improved through quarter - platinum up 6%, palladium up 17% and rhodium up 5%
The Rand was stable against the Dollar on average, weakening by 1%
On-mine EBITDA for the quarter of $76.6 million
Net operating cash flow of $60.5 million
Net profit after tax for the quarter of $25.3 million, despite net foreign exchanges losses of $7.6 million for the quarter
Everest ramp-up proceeding as planned and Blue Ridge redevelopment continuing
Afarak transaction concluded shortly after quarter-end
Q3 2011 Operating Results Summary Kroondal Marikana Everest Blue Ridge Mimosa CTRP Plat. * + Mile 4E PGM Production 95,731 51,255 Total (100% basis) 23,927 27,737 6,671 1,270 10,095 Attributable 47,866 11,963 27,737 3,336 25,628 635 5,048 4E Basket Price 10,634 - R/oz 10,859 10,792 1,529 11,020 11,663 10,342 1,526 1,365 $/oz 1,559 1,549 1,548 1,674 1,493 Cash Costs (4E basis) R/oz 6,578 8,465 6,907 - - 7,742 3,755 1,215 991 725 $/oz 944 - 1,111 538 35 Cash Margin (%) 31 15 - 58 9 60 Stay-in-Business Capex - R/oz 0 967 900 1,158 3,624 - 664 $/oz 139 129 166 520 162 - 95 * Everest is in ramp-up + Blue Ridge is in theprocess of redevelopment
Commenting on the results, Stuart Murray, CEO of Aquarius Platinum said:
"The third quarter of the financial year, which incorporates the Christmas and New Year holidays, is historically a weaker one. This past quarter saw rather high absenteeism following the breaks but has also been further affected by a marked increase in so-called 'Section 54' stoppages across the industry in South Africa. Aquarius' South African operations were not immune to this reality, and production was somewhat impacted.
Despite these issues, I am pleased by the efforts of all to limit these impacts. Mimosa had another strong production quarter. Cash costs in South Africa increased quarter on quarter largely as a result of the effect of lower production, and should improve to more usual levels during the next quarter as production increases again.
The quarter under review also saw some notable successes, with no lost-time injuries at all being recorded at either Mimosa or Marikana and a marked improvement in the fortunes of Platinum Mile. We also closed the Afarak transaction shortly after the period end, which we believe enhances the strategic position of Aquarius.
The volatility in the Rand basket price is uppermost on my mind as we headtowards our next financial year. The improving Dollar PGM prices are welcome,and Mimosa benefits from this, however in South Africa the fluctuations of thereceived basket price in Rand terms make planning for projects somewhatdifficult, and greater focus will be going into ensuring capital projects earnacceptable returns."Production by mine Quarter ended PGMs (4E) Mar 2011 Dec 2010 % Change Mar 2010 % Change Kroondal 95,731 119,444 (20) 103,071 (7) Marikana 23,927 32,831 (27) 35,147 (32) Everest 27,737 25,144 10 - - Blue Ridge 6,671 - - 15,338 (57) Mimosa 51,255 47,023 9 49,008 5 CTRP 1,270 1,451 (12) 1,268 0 Platinum Mile 10,095 4,121 145 2,737 269 Total 216,686 230,014 (6) 206,569 5
Production by mine attributable to Aquarius
Quarter ended PGMs (4E) Mar 2011 Dec 2010 % Change Mar 2010 % Change Kroondal 47,866 59,722 (20) 51,536 (7) Marikana 11,963 16,415 (27) 17,574 (32) Everest 27,737 25,144 10 - - Blue Ridge 3,336 - - 7,669 (57) Mimosa 25,628 23,512 9 24,504 5 CTRP 635 725 (12) 634 0 Platinum Mile 5,048 2,061 145 1,369 269 Total 122,213 127,579 (4) 103,286 18
Aquarius Group attributable production (PGM ounces) to 31 March 2011
For graph see www.aquariusplatinum.comMarket Summary Metals prices
Platinum and palladium prices rose strongly in January in response to an improved global economic outlook and healthier auto manufacturing data, and continued to strengthen slowly in dollar terms throughout most of February. Both metals weakened considerably in late February and March, however, in response to market shocks largely unrelated to the PGMs. This indicates that the PGM market has not yet reached fundamental demand-supply balance and prices remain driven to a large extent by investment demand, suggesting ongoing volatility in the short term. Fundamental demand continues to improve steadily, however, indicating a strongly positive outlook for these metals in the medium term. The average platinum price rose by 6% and that of palladium rose 17%. Rhodium and gold rose by 5% and 1% on average respectively. Platinum closed the quarter broadly flat at $1,773 per ounce, while palladium fell by 3% to $772 per ounce over the same period. The rhodium price fell 2% to $2,375 per ounce over the quarter and gold rose 2% to $1,434 per ounce.
Rand-Dollar exchange rate
The average Rand-Dollar exchange rate for the quarter was stable, falling by 1% from R6.91 to R7.01 to the US dollar and belying volatile intra-quarter fluctuations. The Rand weakened sharply in January as positive global macroeconomic data briefly rendered the Rand carry trade less attractive relative to other investment options. This trend was reversed in February and March as uncertainty returned to the market, exacerbated by the Japanese tsunami and ensuing nuclear crisis. The Rand closed the quarter down 2% at R6.75 to the Dollar.
The effect of the Rand on Rand basket prices was muted as the average Rand-Dollar exchange rate did not vary materially quarter-on-quarter. Average PGM basket prices strengthened at all operations in both currencies over the quarter, driven by higher Dollar PGM prices in January and February. The US Dollar weighted average group basket price increased by 7% to $1,507 per 4E PGM ounce compared to the previous quarter, while the weighted average basket price at the South African operations was $1,545 per PGM ounce. The average South African basket price was R10,832 per PGM ounce for the period, a 7% increase compared to the prior quarter.
12-month individual PGM prices to March 12-month PGM basket prices to March
2011 2011 (US$/oz) (US$ and ZAR per PGM basket ounce)
For chart see www.aquariusplatinum.com For chart see aquariusplatinum.com
12-month Rand-Dollar exchange rate to March 2011 (ZAR/US$) For chart see aquariusplatinum.com
Average PGM basket prices achieved at Aquarius operations
Quarter ended US$ per PGM ounce (4E) Mar 2011 Dec 2010 % Change Mar 2010 % Change Kroondal 1,559 1,457 7 1,328 17 Marikana 1,549 1,455 6 1,328 17 Everest 1,526 1,427 7 - - Blue Ridge 1,548 - - 1,313 18 Mimosa 1,365 1,207 13 1,074 27 CTRP 1,674 1,559 7 1,456 15 Platinum Mile 1,493 1,447 3 1,308 14 Weighted Avg. 1,507 1,405 7 1,267 19 Financials
Aquarius recorded an improved financial result over the previous corresponding period (pcp), with a net profit after tax of $25.3 million (5.5 cents per share) for the quarter. On-mine EBITDA of $76.6 million was 66% higher compared to the pcp, March 2010. The increase in on-mining earnings was driven by increased production up 24% on the pcp.
EBITDA, Profit & Production Comparison by corresponding quarters
Quarter Quarter ended ended Movement FY2010 March 2011 March 2010 EBITDA $76.6M $46.1M $30.5M $145.0M Net profit (loss) after tax $25.3M $23.2M $2.1M $27.8M Revenue $183.0M $128.8M $54.2M $472.2M
PGM ozs production (in operation) 118,877* 95,617* 23,260 393,341
* Average PGM basket price per ounce $1,519 $1,318 $201 $1,199achieved
* excludes PGM ounces of Blue Ridge production capitalised.
On-mine EBITDA for the quarter of $76.6 million included $6.1 million foreign exchange gains on sales as a result of the US Dollar regaining some value over the Rand during the quarter. These foreign exchange gains (at mine level) were eroded by foreign exchange losses of $13.7 million recorded by the group on the revaluation of net monetary assets against a stronger US Dollar, resulting in net foreign exchange losses to the group of $7.6 million for the quarter. To the extent that the Dollar depreciates against these currencies, some of these losses which are unrealised may reverse.
Revenue (PGM sales and including interest income of $2.4 million) was up 42% to$183.0 million from $128.8 million compared to the pcp. Revenue was inclusiveof positive sales adjustments of $8.5 million due to the flow-through ofimproved PGM prices experienced during the quarter. This resulted in higherrevenue of $1,519 per PGM ounce compared to $1,318 per PGM ounce in the March2010 quarter. Quarter ended Mar '10 June'10 Sep '10 Dec'10 Mar '11 Revenue $116.5m $136.0m $145.9m $173.8m $174.5m
PGM sales adjustments $12.3m $1.3m $3.6m $12.9m $8.5m
Total revenue $128.8m $137.3m $149.5m $186.7m $183.0m
Production for the quarter was 24% higher at 118,877 PGM ounces from 95,617 PGM ounces in the pcp. The increase in production was from the recently recommissioned Everest mine which performed extremely well producing 27,737 PGM ounces in the quarter whilst still in ramp up phase. This was a credible performance given the lower number of shifts worked in the quarter due to the Christmas holiday break.
Quarter ended
Attributable ounces Mar '10 June'10 Sep '10 Dec '10 Mar '11
4PGE production 95,617 105,373 119,346 127,579 118,877 Blue Ridge 7,669 5,101 4,046 - 3,336 Total production 103,286 110,474 123,392 127,579 122,213
Total cash cost of production was higher at $110 million in line with the 24% increase in production. On a unit cost basis (PGM ounce), costs at the South African operations in Rand terms were 9.9% higher quarter-on-quarter and 8.0% higher compared to March 2010. In Dollar terms, overall group unit costs increased 5.5% quarter-on-quarter and 22.2% compared to March 2010 due materially to Rand strength against the US Dollar. Increased unit costs quarter-on-quarter generally reflects inflationary pressures and the impact of the fixed nature of mine costs measured against lower production levels for the quarter.
Amortisation and depreciation were higher at $15.0 million from $10.5 million in the pcp, in line with the 24% increase in production.
Administrative costs of $3.7 million are in line with quarterly trends. Finance costs for the quarter of $8.7 million comprised interest expense of $5.6 million for convertible notes, $0.3 million pipeline finance, amortised borrowing costs $0.4 million, $1.6 million on the unwinding of the rehab provision and $0.8 million in fees on the restructure of the Ridge debt facilities.
Group cash remained strong at $384 million at the end of the quarter.
Net operating cash flow for the quarter of $60.5 million comprised $181 million from sales, $117 million paid to suppliers, income tax paid $6 million and net finance income of $2 million. Development and capital expenditure for the quarter was $24.4 million with financing cash outflows comprising the payment of Aquarius' dividend of 4 cents per share to Aquarius shareholders of $18.5 million.
Group cash at 31 March 2011 was held as follows:
AQP $ 291 millionAQPSA $ 48 millionACS(SA) $ 2 millionMimosa $ 34 millionPlatmile $ 2 millionRidge Mining $ 7 millionTotal $ 384 million Aquarius Platinum Limited Consolidated Income Statement Quarter ended 31 March 2011 $'000 Quarter Nine Financial Ended Months Year Ended Ended Note 31/03/11* 31/03/11* 30/06/10 Attributable Production (PGM Ounces) (before Blue Ridge production) 118,877 365,801 393,341 Revenue (i) 182,998 519,150 472,220 Cost of sales (including D&A) (ii) (124,640) (367,459) (349,952) Gross profit 58,358 151,691 122,268 Other income 273 561 1,588 Administrative costs (iii) (3,739) (10,352) (15,243) Foreign exchange gain/(loss) (iv) (7,590) 58,612 (4,846) Finance costs (v) (8,711) (24,079) (25,750) Settlement of contractor dispute - (7,810) - Fair value movement in derivative liability - - 6,084 Loss on early redemption of convertible note - - (26,920) Transaction and acquisition costs associated with Ridge Mining, net of discount on - - 1,248acquisition Profit before income tax 38,591 168,623 58,429 Income tax expense (13,309) (49,061) (30,656)
Net profit attributable to equity holders of 25,282 119,562 27,773 the parent
Earnings per share (basic - cents) 5.46 25.81 6.09 *Unaudited
Notes on the Consolidated Income Statement
Revenue for the quarter was higher compared to the pcp in line with increased production and higher pgm prices.
Cost of sales per PGM ounce increased as a result of inflationary pressures and lower production.
Administration and other costs of $3.7 million is inclusive of annual bonus payments for FY2010.
Foreign exchange losses largely attributable to positive revaluation adjustments on intergroup debt
Finance costs included interest expensed of $4.2 million on group debt, non-cash interest accretion on the convertible note of $2.5 million and unwinding of the rehabilitation provision of $1.6 million.
Aquarius Platinum Limited Consolidated Cash Flow Statement Quarter ended 31 March 2011 $'000 Nine Quarter Ended Months Financial Year Ended Ended Note 31/03/11* 31/03/11 30/06/10 * Net operating cash inflow (i) 60,464 107,524 112,780 Net investing cash outflow (ii) (24,399) (83,787) (79,591) Net financing cash inflow/(outflow) (iii) (19,080) (44,895) 195,898 Net increase/(decrease) in cash held 229,087 16,985 (21,158) Opening cash balance 368,459 381,734 153,600 Exchange rate movement on cash (1,103) 23,765 (953) Closing cash balance 384,341 384,341 381,734 * Unaudited
Notes on the Consolidated Cash Flow Statement
Net operating cash flow for the March quarter includes $181 million inflow from sales, $117 million paid to suppliers, tax paid of $6 million and net finance income of $2 million.
Includes development and plant and equipment expenditure on AQPSA, Mimosa and capex and opex capitalised on Blue Ridge.
Includes dividend paid of $18 million.
Aquarius Platinum Limited Consolidated Balance Sheet At 31 March 2011 $'000 $'000 As at As at 31/03/11* 30/06/10 Note Assets Cash assets 384,341 381,734 Current receivables (i) 123,674 96,846 Other current assets (ii) 49,512 49,338 Property, plant and equipment (iii) 319,875 272,117 Mining assets (iv) 504,139 425,882 Intangibles (v) 79,064 80,450 Other non-current assets (vi) 107,112 72,833 Total assets 1,567,717 1,379,200 Liabilities Current liabilities (vii) 123,410 103,906 Non-current payables (viii) 5,458 4,631
Non-current interest-bearing liabilities (ix) 247,959 238,289
Other non-current liabilities (x) 245,976 195,341 Total liabilities 622,803 542,167 Net assets 944,914 837,033 Equity Issued capital 23,162 23,154 Treasury shares (15,076) (14,264) Reserves 690,224 664,041 Retained earnings 246,604 164,102 Total equity 944,914 837,033 * Unaudited
Notes on the Consolidated Balance Sheet
Reflects debtors receivable on PGM concentrate sales.
Reflects PGM concentrate inventory, reef stockpiles and consumables stores.
Represents plant and equipment within the Group.
Mining assets reflects Kroondal, Marikana, Mimosa, Everest and Ridge mining (mining rights) .
Includes intangibles relating to goodwill and contract value acquired on acquisition of 50% equity interest in Platinum Mile Resources (Pty) Ltd.
Includes recoverable portion of rehabilitation provision from Anglo Platinum of $15 million, receivable from the Reserve Bank of Zimbabwe (RBZ) of $28 million, receivable from outside shareholders of Blue Ridge and Sheba's Ridge of $44 million, investments in rehabilitation trusts of $17 million and investments held for resale of $3 million.
Includes creditors and other payables of $91 million, DBSA and IDC loans at Blue Ridge of $30 million and tax payable of $2 million.
Includes rehabilitation obligations on P&SA1 and P&SA2 structures.
Includes convertible notes of $245m and AQPSA / Ridge equipment leases of $3 million.
Includes deferred tax liabilities of $166 million and provision for closure costs of $80 million.
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%)
Kroondal achieved 1 million fatality free shifts on 3 March 2011
12-month rolling average DIIR deteriorated to 0.77 per 200,000 man hours from 0.74 in the previous quarter
Production decreased by 20% to 1,401,000 tonnes
Head grade improved from 2.63 g/t to 2.64 g/t
Recoveries remained at 80%
Volumes processed decreased by 20% to 1,410,000 tonnes
Stockpiles at the end of the quarter totalled approximately 25,000 tonnes
PGM production decreased by 20% to 95,731 PGM ounces
Revenue decreased by 19% to R918 million compared to the previous quarter due to lower production
Mining cash costs increased by 20% to R446 per tonne, and costs per PGM ounce by 20% to R6,578 Kroondal's cash margin for the period deteriorated from 42% to 31%
K6 Project commenced on 26 July 2010 and the first decline blast was carried out on 1 March 2011
P&SA2 at Marikana (Aquarius Platinum - 50%)
12-month rolling average DIIR improved to 0.50 per 200,000 man hours from 0.61 in the previous quarter
No lost time injuries were recorded at Marikana during the quarter
Production decreased by 33% to 412,000 tonnes; 335,000 from underground and 77,000 from open pit
Head grade increased by 0.2% to 2.32 g/t
Recoveries increased by 8% to 77%
Volumes processed decreased by 33% to 419,000 tonnes
PGM production decreased by 27% to 23,927 ounces
Revenue decreased by 26% to R238 million compared to the previous quarter due to lower production
Mining cash costs increased by 24% to R483 per tonne, and costs per PGM ounce by 14% to R8,465
Marikana's cash margin deteriorated from 24% to 15%
Everest Mine (Aquarius Platinum - 100%)
Everest achieved 1 million fatality free shifts on 23 February 2011
12 month rolling DIIR increased to 0.35 per 200,000 man hours from 0.25 in the previous quarter
Production increased by 4% to 362,000 tonnes
Head grade improved from 2.80 g/t to 2.86 g/t
Recoveries increased from 81% to 83%
Better recoveries due to the stabilisation of the plant after re-commissioning
Volumes processed increased by 5% to 361,000 tonnes
PGM production increased by 10% to 27,737 PGM ounces
Revenue increased by 11% compared to the previous quarter to R295 million
Mining cash costs increased by 4% to R531 per tonne, and costs per PGM ounce decreased by 1% to R6,907
Everest's cash margin increased from 34% to 35%
Re-establishment project and production ramp-up remain in line with plan
AQPSA Operating costs per ounce
4E 6E 6E net of by-products (Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni&Cu) Kroondal 6,578 5,377 5,216 Marikana 8,465 6,966 6,714 Everest 6,907 5,757 5,051
Update on impact of revised hangingwall support strategy
All capital equipment for installation of the new support system is in place and the crews have been trained in its implementation. The direction of mining is currently being altered to run oblique to the direction of the natural rock joints. This had a short term impact in this quarter on the available mining face length as new faces had to be established. In the long term, hand drilling of support will be phased out concurrent with the roll out of mechanised support rigs.
Capital expenditureOngoing capital expenditure has returned to normal operating levels but projectcapital increased this quarter with the start of sinking operations at K6shaft. Kroondal Marikana Everest
(R'000 unless otherwise stated) Total Per 4E oz Total Per 4E oz Total Per 4E oz
Ongoing Infrastructure Establishment 53,219 556 15,179 634 32,109 1,158
Project Capital 39,329 411 6,348 265 16,970 612 Mobile Equipment 13,505 141 - - 18,198 656 Total 106,052 1,108 21,526 900 67,277 2,426
RIDGE MINING LIMITED (Aquarius Platinum - 50%)
Blue Ridge Platinum Mine
12-month rolling average DIIR improved to 1.96 per 200,000 man hours
Mine remained closed for redevelopment during the quarter
Update on redevelopment plan
The redevelopment project continued to progress through the quarter. Infrastructure upgrading projects are underway, with an emphasis on ore reserve creation. Individual projects include ore handling system upgrades, utility provision upgrades and hygiene upgrades. Development for the quarter was 1,927 metres resulting in a progressive developed ore reserve position of 2,462 metres.
During January the plant was temporarily re-commissioned in order to ensure that it remains in a production-ready state for the commencement of stoping operations. As a result some stockpiled material was processed during the quarter, resulting in 6,671 PGM ounces being produced. This production generated revenue of R64 million. Revenue and all expenditures continued to be capitalised during the quarter.
In order to ensure the timely execution of the Blue Ridge redevelopment project, Aquarius has funded 100% of the required capital expenditure for the project and concluded an agreement with the financiers of Ridge Mining in February 2011 in terms of which they agreed to a re-scheduling of the interest bearing debt held by the Blue Ridge mine. As a result and in accordance with agreements in place with Imbani Platinum ("Imbani"), the other shareholder of the mine, Imbani's ownership in Blue Ridge will be diluted in compensation. This change in the shareholding structure of Blue Ridge requires Competition Commission approval, and a further announcement will be made in this regard once that has been obtained.
At current Rand basket prices of approximately R10,300 per PGM ounce, the mine is forecast to remain marginal on a post operating and capital cash flow basis. These PGM price levels, if sustained, may lead to a review of the start-up date for continuous mining operations, currently scheduled for the first quarter of the next financial year.
MIMOSA INVESTMENTS (Aquarius Platinum - 50%)
Mimosa Platinum Mine
12-month rolling average DIIR improved to 0.03 per 200,000 man hours from 0.17 in the previous quarter, with no lost-time injuries recorded
Production increased by 3% to 577,506 tonnes
Head grade improved by 1% to 3.63g/t
Recoveries increased to 78% from 75%
Volumes processed increased by 4% to 566,221 tonnes
Stockpiles at the end of the quarter totalled approximately 158,478 tonnes
PGM production increased by 9% to 51,255 PGM ounces
Revenue increased by 39% to $95.9 million due to stronger PGM and base metals prices
Mining cash costs increased by 16% to $66 per tonne, and costs per PGM ounce by 10% to $725, as a result of continuing poor ground conditions which materially impacted mining efficiencies
Stay-in-business capital expenditure was $162 per PGM ounce for the quarter
Mimosa's cash margin for the period grew from 55% to 58%
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 725 686 272
Indigenisation and Economic Empowerment Update
As disclosed at the time, the Minister of Indigenization and Economic Empowerment issued a notice in March compelling all foreign owned mining entities to submit within 45 days a plan showing how they intend to meet the indigenization quota of 51%.
In terms of the notice, the 51% equity quota may be issued to five designated entities namely:
National Indigenization and Economic Fund;
The Zimbabwe Mining Development Corporation;
any company incorporated by the Zimbabwe Mining Development Corporation;
A statutory sovereign wealth fund that may be created by law; or
An employee or management or community share ownership scheme or trust.
Once the plan has been approved by the Minister, the implementation timeframe is six months from the date of the notice. Discussions are ongoing in order to find a position that will be compliant with the notice and beneficial to stakeholders and shareholders will be immediately informed of any progress in this regard.
TAILINGS OPERATIONS
Chromite Tailings Retreatment Plant (CTRP) (Aquarius Platinum - 50%)
Material processed decreased 15% to 49,000 tonnes
Head grade decreased to 3.13 g/t
Recoveries decreased by 15% to 49%
Production decreased to 1,270 PGM ounces
Cash costs increased by 34% to R7,742 per PGM ounce
Revenue was R11 million for the quarter
The cash margin for the period was 9%, a decrease from 26% in the previous quarter
Platinum Mile (Aquarius Platinum - 50%)
Material processed decreased 5% to 1091 tonnes
Head grade grew to 0.81 g/t
Recoveries increased by 79% to 34%
Production increased to 10,095 PGM ounces
Cash costs decreased by 32% to R3,755 per PGM ounce
Revenue was R95 million for the quarter
The cash margin for the period was 60%, an increase from 37% in the previous quarter
Operating cash costs per ounce
4E 6E 4E net of by-products (Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni, Cu& Co) CTRP 7,742 5,358 5,280 Platinum Mile 3,755 3,237 2,488
Statistical Information: Kroondal P&SA1
For informationm see www.aquariusplatinum.com
Statistical Information: Marikana P&SA2
For informationm see www.aquariusplatinum.com
Statistical Information: Everest
For informationm see www.aquariusplatinum.com
Statistical Information: Blue Ridge
For informationm see www.aquariusplatinum.com
Statistical Information: Mimosa
For informationm see www.aquariusplatinum.com
Statistical Information: Chrome Tailings Retreatment Plant
For informationm see www.aquariusplatinum.com
Statistical Information: Platinum Mile
For informationm see www.aquariusplatinum.com
CORPORATE MATTERSZimbabwean Indigenisation
As announced at the time and referred to above, the Zimbabwean Minister of Youth, Indigenisation and Economic Empowerment published a statutory instrument in the Zimbabwean Government Gazette on 28 March 2011, setting out the requirements for the implementation of the provisions of the Indigenisation and Economic Empowerment Act and its supporting regulations as they pertain to the mining sector.
Discussions are ongoing in order to find a position that will be compliant with the notice and beneficial to all stakeholders and shareholders will be immediately informed of any progress in this regard.
Acquisition of Afarak Platinum (Pty) Ltd
Aquarius announced the acquisition of Afarak on 13 April, shortly after the close of the third quarter. The purchase price for 100% of Afarak was US$109.7 million, comprising US$70.2 million in cash and the remainder in Aquarius shares. After the acquisition Aquarius holds 74% of Afarak directly and Watervale (Pty) Ltd, a company in which Aquarius has a 47% stake with the remainder held by Savannah Resources, Aquarius' BEE partner, holds the remaining 26%.
Afarak's only material assets are 100% of the mineral rights to Hoedspruit, a farm on the Western Limb of the Bushveld Igneous Complex near Rustenburg and a right to earn 50% of the mineral rights to Kruidfontein, a farm in the northern part of the Western Limb. As disclosed previously, these two PGM-bearing areas are strategically located close to existing platinum mining operations and also significantly increase Aquarius' portfolio of PGM resources.
More information on all corporate matters can be found at www.aquariusplatinum.com Aquarius Platinum LimitedIncorporated in BermudaExempt company number 26290 Board of DirectorsNicholas Sibley Non-executive ChairmanStuart Murray Chief Executive OfficerDavid Dix Non-executiveTim Freshwater Non-executiveEdward Haslam Non-executiveSir William Purves Non-executive (SeniorIndependent Director)Kofi Morna Non-executiveZwelakhe Mankazana Non-executive Audit/Risk CommitteeSir William Purves (Chairman)David DixEdward HaslamKofi MornaNicholas Sibley
Remuneration/Succession Planning Committee
Edward Haslam (Chairman)David DixZwelakhe MankazanaNicholas Sibley Nomination Committee
The full Board comprises the Nomination Committee
Company SecretaryWilli Boehm Investor RelationsGavin Mackay Business Development &Communications Executive AQPSA ManagementStuart Murray Executive ChairmanAnton Lubbe Managing DirectorH©l¨ne Nolte Director: FinanceMkhululi Duka Director: Human CapitalAbraham van Ghent Senior General Manager:OperationsGraham Ferreira General Manager: GroupAdmin & Company SecretaryWessel Phumo General Manager: KroondalJenkins Kroon Acting General Manager:MarikanaAugustine Simbanegavi General Manager: EverestAnthony Joubert General Manager: Blue RidgeJan Hattingh General Manager:EngineeringRadesh Sukhdeo General Manager: Process &EnvironmentalDave Starley General Manager:ProjectsMimosa Mine ManagementWinston Chitando Managing DirectorHerbert Mashanyare Technical DirectorPeter Chimboza Resident DirectorFungai Makoni General Manager Finance &Company Secretary Platinum Mile ManagementRichard Atkinson Managing DirectorPaul Swart Financial Director Issued Capital
At 31 March 2011, the Company had in issue: 463,241,295 fully paid common shares and 452,171 unlisted options.
Substantial Shareholders 31 March 2011 Number of Shares Percentage
Savannah Consortium 63,254,371 13.66 JP Morgan Nominees Australia Limited 46,135,926 9.96
HSBC Custody Nominees (Australia) Limited 38,189,609 8.25
National Nominees Limited 32,498,637 7.02 Chase Nominees Limited 25,268,975 5.45 Main Listing: Australian Securities Exchange Trading Information (AQP.AX) Secondary 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) (Joint) Broker (ASX) Sponsor (JSE) Liberum Capital Limited City Point, 1 Ropemaker Euroz Securities Street, London, EC2Y 9HT Level 18 Alluvion Rand Merchant Bank Telephone: +44 (0) 20 3100 58 Mounts Bay (A division of FirstRand 2000 Road, Bank Limited) Perth WA 6000 1 Merchant Place Bank of America Merrill Telephone: +61 Cnr of Rivonia Rd and Lynch (0) 8 9488 1400 Fredman Drive, Sandton 2146 2 King Edward St Johannesburg South Africa London, EC1A 1HQ Telephone: +44 (0)20 7628 1000
Aquarius Platinum (South Africa) (Proprietary) Ltd
100% Owned(Incorporated in the Republic of South Africa)
Registration Number 2000/000341/07
1st Floor, Building 5, Harrowdene Office Park, Western Service Road, Woodmead2191, South AfricaPostal Address: PO Box 76575, Wendywood, 2144, South Africa.Telephone: +27 (0)11 656 1140Facsimile: +27 (0)11 802 0990
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,AustraliaPostal Address: PO Box 485, South Perth, WA 6151, AustraliaTelephone: +61 (0)8 9367 5211Facsimile: +61 (0)8 9367 5233Email: info@aquariusplatinum.com
For further information please visit www.aquariusplatinum.com or contact:
In AustraliaWilli Boehm+61 (0) 8 9367 5211
In the United Kingdom and South Africa
Gavin Mackay
gavin.mackay@aquariusplatinum.com
+ 44 7909 547 042GlossaryA$ Australian DollarAquarius or AQP Aquarius Platinum LimitedAPS Aquarius Platinum CorporateServices Pty LtdAQPSA Aquarius Platinum (South Africa)(Pty) LtdACS(SA) Aquarius Platinum (SA) CorporateServices (Pty) LtdBEE Black Economic EmpowermentBRPM Blue Ridge Platinum MineCTRP 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 DollarEverest Everest Platinum MineGreat Dyke Reef A PGE bearing layer within the Great DykeComplex in Zimbabweg/t Grams per tonne, measurement
unit of grade (1g/t = 1 part per million)
JORC code Australasian code for reporting of MineralResources and Ore ReservesJSE JSE LimitedKroondal Kroondal Platinum Mine or P&SA1 atKroondalLHD Load haul dump machineMarikana Marikana Platinum Mine or P&SA2 atMarikanaMimosa Mimosa Mining Company (Private) Limitednm Not measuredPGE(s) (6E) Platinum group elements plus gold.
Fivemetallic 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) LtdP&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 RandRidge Ridge Mining LimitedROM Run of mine. The ore from miningwhich is fed to the concentrator plant. This is usually a mixture of UG2 oreand waste.Tonne 1 Metric tonne (1,000kg)UG2 Reef A PGE-bearing chromite layer within the
Critical Zone of the Bushveld Complex
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