31 Jul 2009 15:11
Aquarius PlatinumFourth Quarter 2009 Production Results
Highlights of the Quarter
Quarterly attributable production increased 1% compared to previous quarter to 98,258 PGM ounces.
Improvements in US Dollar commodity prices, however, offset by South African Rand : Dollar exchange rate.
On mine margins well maintained.
Capital raising comprising equity placement, rights-issue and convertible bond completed:- gross amount raised $270 million
R1.6 billion (approx $177 million) bridge facility fully repaid.
Ridge transaction completed post-quarter with post-merger integration now underway.
Commenting on the results, Stuart Murray, CEO of Aquarius Platinum said "The final quarter of the year has been a busy one. Operationally our mines performed well, with an increase in attributable production despite the shortfall in production shifts due to public-holidays. Further, it is particularly pleasing to see the completion of the Wedza Phase 5.5 expansion project at Mimosa in Zimbabwe, and the near completion now of the expansion at Platinum Mile.
From a corporate perspective, it has also been a busy period, with the successful completion of the company refinancing through both a rights issue overwhelmingly supported by shareholders that followed the equity placement in the previous quarter, and the convertible bond in South Africa. Further, I am delighted that today sees the finalisation of the acquisition of Ridge Mining, so that now we can turn our attention to integrating the Ridge assets into the Aquarius Group."
P&SA1 at Kroondal
PGM production of 105,720 PGM ounces (Aquarius attributable 52,860PGM ounces), a modest 1% increase compared to the previous quarter.
Effective cash margin was 34%.
Firm increase in mining efficiencies, despite shortfall in mining shifts due to public holidays.
P&SA2 at Marikana
PGM production of 37,753 PGM ounces (Aquarius attributable 18,877 PGM ounces), a 3% decrease compared to the previous quarter.
Effective cash margin was 22%.
Underground production increased, further dominating the production mix, while open-pit production suffered from potholing.
Mimosa
PGM production of 46,874 PGM ounces (Aquarius attributable 23,437 PGM ounces), a modest 1% increase compared to the previous quarter.
Effective cash margin was 28%.
Wedza Phase 5.5 expansion completed
CTRP
PGM production of 1,689 PGM ounces (Aquarius attributable 833 PGM ounces), a 5% increase compared to the previous quarter.
Effective cash margin was 49%.
Project reconfiguration generating positive results.
Platinum Mile
PGM production of 4,479 PGM ounces (Aquarius attributable 2,240 PGM ounces), a 61% increase compared to the previous quarter.
Effective cash margin was 44%.
Production ramp-up generating positive results, due for completion in Q1 2010.
Production by Mine Quarter Ended PGMs (4E) Sep 2008 Dec 2008 Mar 2009 Jun 2009 Kroondal 101,731 109,707 104,920 105,720 Marikana 38,883 42,451 38,851 37,753 Everest* 32,365 31,703 - Mimosa 43,638 43,232 46,278 46,874 CTRP 1,764 1,784 1,587 1,689 Platinum Mile 5,983 3,103 2,788 4,479 Total 224,364 231,980 194,424* 196,515*
Production by Mine Attributable to Aquarius
Quarter Ended PGMs (4E) Sep 2008 Dec 2008 Mar 2009 Jun 2009 Kroondal 50,866 54,854 52,460 52,860 Marikana 19,442 21,226 19,426 18,877 Everest* 32,365 31,703 - Mimosa 21,819 21,616 23,139 23,437 CTRP 882 892 793 845 Platinum Mile 2,992 1,552 1,394 2,240 Total 128,366 131,843 97,212 98,258
*Q2, Q3 and Q4 production not comparable to previous year production due to the temporary closure of the Everest mine in December 2008.
Metals Prices and Foreign Exchange
Metals prices both provisional and realised for PGM's have continued to improve from the lows experienced in the December 2008 quarter.
For Q4 2009 platinum averaged 15% higher at $1,172 per ounce compared the Q3 average price, and closed 5% higher at $1,183 per ounce on 30 June 2009 compared to $1,124 per ounce on 31 March 2009.
The palladium price averaged 20% higher at $234 per ounce compared the Q3 average price, and closed 16% higher at $249 per ounce on 30 June 2009 compared to $215 per ounce on 31 March 2009.
The rhodium price averaged 23% higher at $1,414 per ounce compared the Q3 average price, and closed 25% higher at $1,450 per ounce on 30 June 2009 compared to $1,160 per ounce on 31 March 2009.
Gold showed less movement and averaged $947 per PGM ounce during June 2009.
The improvement in metals prices was, however, off-set by strength in the Rand, with the exchange rate averaging R8.09 over the quarter, and strengthening 18% over the quarter to close at R7.76 on 30 June 2009.
Impact on Pipeline advances
Following the increase in PGM prices since a December month average of $840 per ounce for platinum, prices have recovered through calendar 2009 year to date.
The stability and recovery in PGM prices has seen an end to the abnormally high sales adjustments experienced in the December half year.
Average PGM basket prices achieved at Aquarius operations: US$ per PGM ounce(4E) Basket Prices (Quarter Ended) Sep 2008 Dec 2008 Mar 2009 Jun 2009 Kroondal 1,758 746 795 915 Marikana 1,693 744 799 928 Everest 1,692 746 - - Mimosa 1,549 905 626 751 CTRP 2,251 818 859 993 Platinum Mile 1,085 596 810 930 Aquarius Group Average 1,684 770 756 879
US Dollar PGM basket prices strengthened at all operations, with the group basket price averaging 16% higher compared to the previous quarter at $879 per ounce. The average basket price at South African operations was $921 per PGM ounce, equal to R7,941 per PGM ounce at an average exchange rate of R8.62 : $1.
The Rand reversed the weakness of the previous quarter, strengthening by 18% over the period to close at R7.76 to the US Dollar. The average Rand rate realised at South African operations during the quarter was R8.62 to the US Dollar.
AQUARIUS PLATINUM (SOUTH AFRICA) (PTY) LTD (Aquarius Platinum 100%)
P&SA 1 at Kroondal
The 12-month rolling average DIIR for the quarter deteriorated to 0.74 from 0.71 in the previous quarter. Ten lost-time injuries were reported during the quarter.
Mining
Production tons increased by 11% to 1,624,553 tons due to improved mining efficiencies, reduction in off-reef mining and slightly more mining shifts
Head grade increased marginally from 2.54 g/t to 2.58 g/t
Processing
Tons processed remained stable at 1,617,074 tons
Recoveries increased from 78% to 79%
PGM production increased by 1% to 105,720 PGM ounces
The achieved mine basket price for the quarter averaged $915 per PGM ounce, 15% higher than the previous quarter. However this gain was offset by Rand strength, with the achieved mine Rand Dollar exchange rate 13% stronger at an average R 8.62 for the quarter. Consequently, despite increased production and US Dollar commodity prices, revenue at Kroondal decreased by 2% to R831 million for the quarter (Aquarius attributable: R415.5 million).
Operations
With 7 public-holidays occurring during the quarter, the fourth quarter only contained one more mining shift than the third quarter. Although the number of mining shifts were comparable, total square meters mined increased by 8% on the back of efficiency improvements. Redevelopment reduced off-reef square meters mined as a result of geological features by 20% from the previous quarter.
These factors contributed to improve the tonnage yield. Underground production increased by 11% to 1,624,553 tons for the quarter. Stoping performance at K5 remains a challenge, however, K5 decline development showed improvement and completion of the development through the Townlands fault is expected in the next quarter.
The 'Areboleleng' (Tswana for "let's talk") industrial relations initiative is ongoing and has been extended to Redpath at K5 shaft where it is showing positive impact. No significant industrial relations incidents occurred during the quarter.
Concentrator throughput in the previous quarter was supported by stockpile consumption as planned, and concentrator throughput for the quarter reflected mining production, remaining relatively stable at 1,617,074 tons. Stockpile accumulation therefore was limited, with remaining stock of 14,708 tons at the end of the quarter.
The head-grade increased marginally, averaging 2.58 g/t for the quarter compared to 2.54 g/t in the previous quarter. This was due to the reduction in off-reef square meters mined.
Recoveries also increased further, up 1% to 79% due to improvement initiatives in operational stability and control.
PGM production increased by 1% to 105,720 PGM ounces (Aquarius attributable: 52,860 ounces).
Primary development for the quarter was 1,838 metres.
Kroondal: Metal in concentrate produced (PGM ounces)
Quarter ended Pt Pd Rh Au PGMs Attributable to Aquarius Jun 2009 62,535 31,158 11,492 535 105,720 52,860 Mar 2009 62,281 30,728 11,411 500 104,920 52,460 Dec 2008 65,075 32,161 11,941 531 109,707 54,854 Sep 2008 60,634 29,573 11,068 456 101,731 50,866 Operating Cash Costs
Although mining costs remained stable, cash costs per ton increased by 3% to R339 and costs per PGM ounce increased by 2% to R5,188 principally as a result of increased electricity cost and relining expenses during the quarter. Electricity cost showed a 34% increase due to seasonal tariffs (applicable to the full quarter) coupled with the Eskom annual increase which came into effect in June 2009.
Gross revenue decreased by 2% to R831 million with the impact of the strong rand offsetting gains in US dollar commodity prices. As a result, Kroondal Mine shows a positive cash margin for the period of 34% compared to 38% in the previous quarter.
Kroondal: Operating Cash Costs per Ounce
4E 6E 6E net of by-products (Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni&Cu) Kroondal R 5,188 R 4,257 R 4,151 Capital Expenditure
Capital expenditure for the quarter was R68 million, all ongoing capital principally focused on underground mining infrastructure.
P&SA2 at Marikana Safety
The DIIR has deteriorated to 0.91 in Q4 from 0.88 in Q3 in spite of only 2 lost time injuries occurring the quarter.
Mining
Undergound production increased by 5% to 316,822 tons
Open pit production decreased by 11% as a result of intersection of potholed reef which impacted on the mining yield
Total production tons decreased by 2% to 551,000 tons
Head grade decreased by 4% to 2.75 g/t due to higher relative contribution of underground material
Processing
Tons processed increased by 3% to 619,639 tons
Recoveries decreased by 2% to 69%
PGM production decreased by 3% to 37,753 ounces (Aquarius attributable: 18,877 ounces)
Revenue
The achieved mine basket price for the quarter averaged $928 per PGM ounce, 16% higher than the previous quarter. The achieved mine Rand Dollar exchange rate averaged 8.62 for the quarter, thereby offsetting gains in US Dollar commodity prices and resulting in revenue decreasing 4% compared to the previous quarter to R311 million (Aquarius attributable: R155.5 million)
Operations
With 7 public-holidays occurring during the quarter, the fourth quarter only contained one more shift than the third-quarter.
The production ratio between underground and open-pit continued to move favourably over the quarter to 57:43.
At both No.1 and No.4 Shafts, primary development and redevelopment continued well, with a 14% increase in development from the previous quarter with re-establishment of sections contributing to improved production as planned. Stoping sections at No. 4 Shaft maintained efficiency improvements during the quarter but reef production remained adversely affected by the off-reef primary development and high incidence of potholing. Consequently, Marikana underground production increased by 5% to 316,822 tons for the quarter but underground mining grades were adversely affected by the higher contribution of redevelopment and development tons.
Open pit production reduced due to intersection of potholed reef in the ROM Pit which significantly reduced the mining yield from the area mined. The open pit stripping ratio was negatively impacted by the lower mining yield, resultantly increasing to 23:1 for the quarter. As a result of these factors, open pit operations showed a quarter-on-quarter decrease of 11% to 234,340 tons. It is anticipated that the pothole intersection will further impact production during the next quarter and in-fill drilling is in process to determine the full extent of the feature. In the interim, stripping of the west-west pit has been expedited to provide alternative openpit production.
The 'Areboleleng' (Tswana for "let's talk") industrial relations initiative is ongoing with MRC showing a positive effect on industrial relations, with no industrial action during the quarter.
Stockpile consumption alleviated the reduction in mining production with tons processed increasing by 11% to 619,639 tons, comprising 324,306 tons from underground and 295,333 tons of open pit material. The scheduled rod mill reline was completed and positively contributed to plant availability as anticipated. Stockpiles at the end of the quarter were 13,449 tons, consisting predominantly of open pit material.
The head-grade decreased by 4% to 2.75 g/t due to higher relative contribution of the underground material which has lower grade than open pit material.
Recoveries decreased by 2% to 69% due to intermediate partially weathered open pit material processed during the quarter.
PGM production for the quarter decreased by 3% to 37,753 ounces (Aquarius attributable: 18,877 ounces).
Marikana: Metal in concentrate produced (PGM ounces)
Quarter ended Pt Pd Rh Au PGMs Attributable to Aquarius Jun 2009 23,155 10,368 4,010 220 37,753 18,877 Mar 2009 23,673 10,908 4,034 236 38,851 19,426 Dec 2008 26,193 11,733 4,256 268 42,451 21,226 Sep 2008 24,182 10,609 3,866 226 38,883 19,442 Operating Cash Costs
Operating costs were negatively impacted by increased electricity cost and the mill reline expenses, but total on-mine cost remained stable quarter on quarter. Cash costs per ton therefore decreased by R1 to R394, whilst costs per PGM ounce increased by 5% to R6,460 as a result of a of the lower ounce yield associated with slightly lower grades and recoveries.
Gross revenue decreased by 4% to R311 million, principally as a result of the stronger rand and slightly lower production. As a result, Marikana Mine shows a cash margin for the period of 22% compared to 26% in the previous quarter.
Marikana: Operating Cash Costs per Ounce
4E 6E 6E net of by-products (Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni&Cu) Marikana R 6,460 R 5,267 R 5,028 Capital Expenditure
Ongoing capital expenditure totalled R19 million. (AQPSA share R9.5 million). This consisted of primarily of underground mining infrastructure.
Contractor dispute with Moolman Mining
During March 2009, AQPSA and Moolman Mining agreed that the dispute relating to AQPSA resiling from the contract originally concluded between AQPSA and Moolman Mining on the basis of misrepresentation by Moolman Mining and Moolman Mining's conditional counter claims, would be referred to trial and would not be subject to Arbitration. As a result, the original Arbitration instituted by Moolman Mining against AQPSA relating to the application of the rise and fall formula in that contract, will be indefinitely suspended pending the outcome of the trial proceedings. This agreement was made an order of court with the consent of both parties and provisional dates in September 2010 have been allocated for the trial.
Everest Platinum Mine
In December 2008 Aquarius announced the temporary closure of the Everest Mine resulting from a subsidence event.
The area affected by the subsidence has been surveyed, confirming the subsidence is confined to the upper areas of the original decline and previously mined out areas in the vicinity of the decline, and that existing stoping and development areas are not affected.
Multiple access alternatives have been evaluated and development of two new declines, one north and one south of the original decline, was identified as the most expedient and capital-efficient means to recommence operations whilst ensuring optimal longer term infrastructure placement in terms of the ore body geometry. Initial focus will be on the establishment of the North decline, which will serve as the main decline (including decline conveyors) whilst the south decline will be used for ventilation, men and material access. Capital of R 77 million has been approved for the first phase of the project: namely the north boxcut, storm water management, temporary and permanent services, access road, initial underground development and rock support.
The first phase of the project will require approximately 6-months to complete with excavation of the North boxcut having commenced in June 2009. Phase 2 of the project includes completion of the decline development, establishment of underground services and the reclamation of infrastructure, equipping of declines and strike sections, and re-establishment of stoping sections. Permanent surface infrastructure, such as mine services and overland conveyers will also be completed during this phase. This preparation, coupled with early production from the open pit area, will enable ramp-up of underground production, with reef stockpiling prior to resumption of milling operations.
Completion of Phase 2 and production ramp-up to process plant resumption will require approximately 10 months. The detail engineering designs associated with Phase 2 are in process, and preliminary Capital Budget Estimates (CBE) have been completed, confirming the capital requirement for the entire project (including Phase 1 and 2) to be approximately R 250 million.
MIMOSA INVESTMENTS (Aquarius Platinum 50%)
Mimosa Platinum MineSafety
The 12-month rolling average DIIR for the quarter was at 0.10, following a DIIR of 0.00 for the two previous quarters.
Mining
Underground production decreased by 2% to 525,682 tons
Head grade slightly increased 1% to 3.60 g/t
The surface stockpile decreased to a total 235,765 tons at the end of the quarter, equivalent to almost 40-days mill feed
Processing
Concentrator plant recoveries increased to 75.4% from 73.3%
Total mine production increased by 1% to 46,874 PGM ounces (Aquarius share: 23,437 PGM ounces)
Revenue
The average achieved PGM basket price for the quarter increased by 20% to $751 per PGM ounce. The average achieved nickel price over the quarter increased by 2% to $4.84 per pound from $4.75 per pound in the previous quarter. Revenue for the quarter increased to $36.2 million, with base metals accounting for approximately 21% of revenue. The cash margin increased to 28% from 24% in the previous quarter mainly due to slight increases in metal prices achieved during the quarter.
Operations
During the quarter mining operations hoisted 525,682 tons compared to 539,004 tons in the previous quarter. Tons milled during the quarter totalled 537,917 tons, with 12,235 tons being taken from the stockpile, which totalled 235,765 tons at the quarter end.
In May 2009, the Wedza 5.5 expansion successfully commissioned, providing capacity to produce and this entrenches installed capacity to produce 200,000 PGM ounces per annum, with run-rates in June achieving production.
The average plant grade marginally increased to 3.60 g/t, compared to 3.58 g/t in the previous quarter.
Tons processed totalled 537,917, a 2% decrease compared to the previous quarter, primarily due to the phase 5.5 tie-in work that was deferred from March to May.
Recoveries for the quarter slightly increased to 75.4% from 73.3%.
PGM production during the quarter increased by 1% to 46,874 ounces (Aquarius attributable: 23,437 ounces), despite commissioning.
Mimosa: PGMs in concentrate produced (ounces)
Quarter ended Pt Pd Rh Au PGMs Attributable to Aquarius Jun 2009 23,910 17,979 1,851 3,135 46,874 23,437 Mar 2009 23,590 17,905 1,797 2,986 46,278 23,139 Dec 2008 21,903 16,678 1,753 2,898 43,232 21,616 Sep 2008 22,113 16,863 1,770 2,892 43,638 21,819
Mimosa: Base Metals in concentrate produced (tons)
Mine Production Attributable to Aquarius Quarter ended Ni Cu Co Ni Cu Co Jun 2009 667 534 18 333.5 267 9 Mar 2009 659 545 18 329.5 272.5 9 Dec 2008 615 497 18 307.5 248.5 9 Sep 2008 602 498 17 301 249 8.5 Operating Cash Costs
Cash costs per ROM ton increased by 17% to $49, whilst Zimbabwean Dollar costs per PGM ounce increased by 13% to $562. The increase in cash costs for the quarter was attributable to dollarisation of the Zimbabwean economy over the last year. Input costs such as salaries are now expensed in US Dollars, which has put increased pressure on margins. Price distortions were also experienced during the transition period and management is working on addressing these anomalies through revised contracts with various private and municipal service providers, as well as stricter management of materials, procurement and inventory.
The gross cash margin increased to 28% from 24% in the previous quarter mainly due to the slight rise in achieved mine PGM basket prices. Net of by-products, cash costs were $379 per PGM ounce, compared to $326 per PGM ounce in the previous quarter.
Mimosa Operating Cash Costs per Ounce
4E 6E 4E net of by-products (Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni, Cu & Co) Mimosa $562 $535 $379
Update on Foreign Currency Regime in Zimbabwe
Since the announcement of the National Budget and Monetary Policy Statement in January 2009 that liberalised foreign currency trading in the economy there has not been any further changes in the foreign currency regime. The recently announced Mid Term national budget on 16 July 2009 presented no changes to the general foreign currency framework.
Update on Zimbabwean Indigenisation Legislation
The Indigenisation and Economic Empowerment bill was enacted into law during the last quarter of the previous financial year. The proposed amendments to the Mines and Minerals Act which were tabled just before the dissolution of the previous parliament have been withdrawn by the current Minister of Mines. He has requested for input from the industry through the Chamber of Mines. These amendments include provisions relating to the localisation.
AQUARIUS PLATINUM (SA) CORPORATE SERVICES (PTY) LTD
Chromite Tailings Retreatment Plant (CTRP) (Aquarius Platinum 50%)
Safety
The 12-month rolling average DIIR for the quarter was maintained at 0.00 with no lost time injuries occurring during the quarter.
Processing
Material processed increased by 48% to 75,875 tons
Grade increased 2% to 2.20 g/t
Recoveries decreased to 31%
Production increased to 1,689 PGM ounces (Aquarius attributable: 845 PGM ounces)
The achieved mine basket price for the quarter averaged $993 per PGM ounce, 16% higher than the previous quarter. The achieved mine Rand Dollar exchange rate averaged R 8.62 for the quarter, with Rand strength partially off-setting metals price increases
The increase in production coupled with gains in the basket price resulted in quarterly revenue increasing by 26% to R 9 million. (Aquarius attributable: R 4.5 million)
Operations
The repositioning of the reclamation facilities on the chrome dump source continued to yield positive results and material processed increased by 49% to by 75,879 tons.
The head grade increased 2% to 2.20 g/t as a result of grade variances within the chromite dump source material.
Recoveries decreased 29% to 31% due to further breakdowns on the Deswick mill, which resulted in the mill being bypassed for extensive periods during the quarter. The higher throughput achieved resulted in reduced flotation residence time which also negatively impacted on recoveries achieved.
This resulted in production increasing 6% to 1,689 PGM ounces (Aquarius attributable: 845 ounces).
CTRP: Metal in concentrate produced (PGM ounces)
Quarter ended Pt Pd Rh Au PGMs (4E) Jun 2009 1,024 369 292 4 1,689 Mar 2009 966 351 267 3 1,587 Dec 2008 1,078 404 297 4 1,784 Sep 2008 1,077 388 295 4 1,764 Operating Costs
Cash costs normalised to R2,675 per PGM ounce, a 31% increase as compared with the previous period which included a reversal of unrealised expense accruals. The cash margin for the period of was 49%, an reduction from 53% in the previous quarter.
CTRP 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 R 2,675 R 1,813 R 1,757 Capital Expenditure
No capital expenditure occurred during the quarter.
Platinum Mile (Aquarius Platinum 50%)
The effective date of the acquisition of the 50% interest in Platinum Mile was March 1 2008.
Safety
The DIIR was zero for the quarter. For the 4th quarter in a row no lost time accidents were recorded.
Processing
Tailings processed remained very constant compared to the previous quarter at 2.101 million tons
PGM grade was 0.59 g/t
Production was 4,479 PGM ounces (Aquarius attributable: 2,240 PGM ounces)
Revenue
The achieved mine basket price for the quarter averaged $930 per PGM ounce, 15% higher than the previous quarter. The achieved mine Rand Dollar exchange rate averaged 9.01 for the quarter. Quarterly revenue increased by 20% to R30 million (Aquarius attributable: R15 million) as a result of the increased production for the quarter.
Production levels rose considerably due to improved plant operation and stability.
Operations
Total feed for the quarter was 2,101 tons, a 92 ton increase compared to the previous quarter.
During the quarter the feed head grade decreased marginally to 0.59g/t compared to 0.65 g/t the previous quarter.
Recoveries increased to 11% compared to the previous quarter due to increased plant stability and improved grinding of rougher concentrates.
As a result, production increased 61% to 4,479 PGM ounces (Aquarius attributable: 2,240 ounces).
During the quarter, a new ultra-fine-grind Deswik mill was commissioned, with a second planned to commission in the coming quarter. This phased commissioning approach reduces downtime and allows production to be maintained. The Deswik mill will reduce bottlenecking associated with the already installed and working SMD mills. Target production at Platinum Mile remains 35,000 per annum. It is estimated that full monthly production ramp-up will be achieved during the first quarter of FY 2010.
Platinum Mile: Metal in concentrate produced (PGM ounces)
Quarter ended Pt Pd Rh Au PGMs (4E) Jun 2009 2,598 1,388 403 90 4,479 Mar 2009 1,617 864 251 56 2,788 Dec 2008 1,799 962 279 63 3,103 Sep 2008 3,470 1,855 538 120 5,983 Operating Costs
Cash costs decreased 49% to R2788 per PGM ounce due to increased production.
Platinum Mile Operating Cash Costs per Ounce
4E 6E 4E net of by-products (Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni, Cu& Co) Platinum Mile R 2,788 nm nm Capital Expenditure
Capital expenditure for the quarter was R2 million. The expansion and fine milling project budget of R59 million remains on target, with the total spent to date to R57 million, with R2 million remaining in the first quarter of the new financial year.
Total expenditure to date on the expansion program is R59 million (Aquarius attributable R30 million), versus a budget of R59 million. This has been funded from cash flows and debt via an original loan of R75 million from Investec Ltd, repayable quarterly.
CORPORATE MATTERS
Capital raising by way of equity placement, rights issue and convertible note issue.
During the quarter Aquarius concluded its capital raising package raising gross proceeds of $270 million by way of:
$118.5 million from an equity placement of 46,330,000 common shares
$73.5 million from a rights issue of 41,491,737 common shares as part of the 1 for 9 Rights Issue
$78 million (R650 million) from a convertible bond issue of 65,000 Bonds
Details of the capital raising include:
Rights Issue (and Prior Period Equity Placement)
On 7 May 2009, Aquarius announced the allotment of 41,491,737 ordinary fully paid shares as part of the 1 for 9 Rights Issue, forming the second tranche of the group refinancing announced in March 2009. Funds raised from the rights issue before fees totalled 44.7 million. This amount is in addition to the 83.4 million raised before fees from the equity placement 46,330,000 shares issued on 26 March 2009 (listed on 2 April 2009).
Convertible Bonds
Further to the equity placing and rights issues announced in March 2009, the third tranche of refinancing comprised the issue of a convertible bond. On 11 May 2009, Aquarius announced the completion, issue and listing of R650 million floating rate senior secured convertible bonds. A total 65,000 Bonds with a denomination of R10,000 per Bond were listed under the share code AQPB (ISIN Code: ZAE000134540, abbreviated name: AquariusCvt on the Main Board of the JSE Limited.
Repayment of Bridge Facility
Aquarius fully repaid the Bridge Loan Facilty of R1.6 billion ($177 million) during the quarter utilising funds raised in capital raising described above.
Appointment of Liberum Capital as New LSE Joint Broker
On 3 June 2009 Aquarius announced the appointment of Liberum Capital Limited to act as joint UK corporate broker with Merrill Lynch International, replacing Investec Securities Limited.
Inclusion in the S&P/ASX 100
Following adjustments to the Standard and Poor's / Australian Securities Exchange index series, Aquarius was accepted for inclusion in the S&P/ASX 100, effective from the close of trade on 19 June 2009.
Ridge Mining
Following overwhelming support by Ridge Shareholders on 6 July 2009 who voted in favour of the acquisition of Ridge by Aquarius by means of a scheme of arrangement, the Scheme became effective on the subsequent sanction of the Court on 30 July 2009. Ridge Mining is now 100% owned by Aquarius Platinum Limited. Aquarius will update shareholders on the integration of the Ridge mining assets into Aquarius Platinum in due course.
Sylvania
AQPSA is disputing compliance by Sylvania South Africa (Proprietary) Limited ("Sylvania) with the terms of the agreement concluded between AQPSA and Sylvania dated 13 May 2005, relating to the Everest North Project ("Agreement"). Under South African mining law, AQPSA has the exclusive right to apply for a mining right for the farm Vygenhoek, where the Everest North Project is located, to the exclusion of any third party, including Sylvania. Statements by Sylvania on 10 July 2009 in the public domain to the effect that Sylvania has a right to apply for a mining right for the Everest North Project are incorrect and the inclusion by Sylvania of the Everest North Project in its portfolio of projects, is also incorrect. Without the authority and knowledge of AQPSA, Sylvania instructed third party consultants to prepare an application for a mining right for Vygenhoek in the name of AQPSA, which application was lodged without AQPSA's knowledge with the Department of Minerals and Energy ("DME"). That unauthorised lodgement is unlawful within the context of the Agreement and South African mining law and the DME has accordingly withdrawn the unauthorised application. AQPSA has informed Sylvania that AQPSA will not tolerate unlawful interference by Sylvania in AQPSA's Everest North Project and AQPSA has reserved its rights in this regard.
Aquarius Platinum LimitedIncorporated in BermudaExempt company number 26290 Board of DirectorsNicholas Sibley Non-executive Chairman Stuart Murray Chief Executive Officer David Dix Non-executive
Timothy Freshwater Non-executive
Edward Haslam Non-executive
Sir William Purves Non-executive
Kofi Morna Non-executive
Zwelakhe Mankazana Non-executive
Audit/Risk CommitteeSir William Purves (Chairman)David DixEdward HaslamNicholas Sibley
Remuneration/Succession Planning Committee
Edward Haslam (Chairman)Nicholas Sibley Nomination Committee
The full Board comprises the Nomination Committee
Company SecretaryWilli Boehm AQPSA ManagementStuart Murray Executive Chairman Hugo Holl Managing Director Helene Nolte Director: Finance Hulme Scholes Commercial Director Anton Lubbe Operations Director: West Anton Wheeler Operations Director: East
Graham Ferreira General Manager: Group Admin & Company Secretary
Mkhululi Duka General Manager: Group Human Resources & Transformation
Wessel Phumo General Manager: Marikana Gabriel de Wet General Manager: Engineering ACS (SA) Management
Paul Smith Director: New Business
Mimosa Mine ManagementWinston Chitando Managing Director Herbert Mashanyare Technical Director Peter Chimboza Resident Director Fungai Makoni General Manager & Company Secretary Platinum Mile Management
Richard Atkinson Managing Director
Paul Swart Financial Director Issued Capital
At 30 June 2009, the Company had on issue:
415,014,680 shares fully paid common shares and 1,565,249 unlisted options.
65,000 Bonds with a denomination of ZAR10,000 per Bond were listed during the quarter under share code AQPB (ISIN Code: ZAE000134540, Abbreviated name: AquariusCvt) on the Main Board of the JSE Limited on 11 May 2009.
Substantial Shareholders 30 June 2009 Number of Shares Percentage
Savannah Consortium 68,658,728 16.54
HSBC Custody Nominees (Australia) Limited 28,916,883 6.97
Chase Nominees 22,593,020 5.44 Trading InformationISIN number BMG0440M1284ADR ISIN number US03840M2089 Broker (LSE) (Joint) Broker (ASX) Sponsor (JSE) Merrill Lynch International Euroz Securities Investec Bank Limited 2 King Edward St Level 14, The Quadrant 100 Grayston Drive London, EC1A 1HQ 1 William Street, Sandown, Sandton Telephone: +44 (0)20 7628 1000 Perth WA 6000 2196 Telephone: +61 (0)8 Telephone: +27 (0) 9488 1400 11 286 7326 Liberum Capital Limited City Point, 1 Ropemaker Street, London, EC2Y 9HT Telephone: +44 (0)20 3100 2000
Aquarius Platinum (South Africa) (Proprietary) Ltd
100% Owned (At 30 June 2009)
(Incorporated in the Republic of South Africa)
Registration Number 2000/000341/07
Block A, 1st Floor, The Great Wall Group Building, 5 Skeen Boulevard, Bedfordview, South Africa 2007
Postal Address P O Box 1282, Bedfordview, 2008, South Africa.
Telephone: +27 (0)11 455 2050 Facsimile: +27 (0)11 455 2095
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
Nick Bias+ 41 (0)79 888 1642nickbias@aquariusplatinum.com GlossaryA$ Australian Dollar
Aquarius Aquarius Platinum Limited
ABET Adult Basic Education Training programme APS Aquarius Platinum Corporate Services Pty Ltd AQPSA Aquarius Platinum (South Africa) Pty Ltd
ACS (SA) Aquarius Platinum (SA) (Corporate Services) (Pty) Limited
BEE Black Economic Empowerment BRPM Blue Ridge Platinum Mine CTRP Chromite Ore 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 Incidence 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 South African Government Department of Minerals and Energy Affairs
Dollar United States Dollar or $ EMPR Environmental Management Programme Report Everest Everest Platinum Mine
Great A PGE bearing layer within the Great Dyke Complex in Zimbabwe Dyke Reef 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 JSE Securities Exchange South Africa
Kroondal Kroondal Platinum Mine or P&SA1 at Kroondal LHD Load Haul Dump machine Marikana Marikana Platinum Mine or P&SA2 at Marikana Mimosa Mimosa Mining Company (Private) Limited
MRC Murray & Roberts Cementation, principal mining contractor at Kroondal nm Not measured NOSA National Occupational Safety Association NUM South African National Union of Mineworkers
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 the PGMs as (4E) comprising Pt+Pd+Rh plus Au (gold) with the Pt, Pd and Rh being the
most economic platinoids in the UG2 Reef P&SA1 Pooling & Sharing Agreement between AQPSA and RPM Ltd on Kroondal P&SA2 Pooling & Sharing Agreement between AQPSA and RPM Ltd on Marikana R South African Rand Redpath Redpath Mining South Africa Pty Ltd. Ridge Ridge Mining plc
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
SavCon The Savannah Consortium - the principal Black Empowerment Investor in
Aquarius Platinum TKO TKO Investment Holdings Limited Ton 1 Metric tonne (1,000kg)
UG2 Reef A PGE bearing chromite layer within the Critical Zone of the Bushveld Complex
Z$ Zimbabwe Dollar
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