AQP.L Regulatory News (AQP)

Fourth Quarter 2013: Production Results Aquarius Platinum Limited Financial and Production Results to 30 June 2013 Highlights Wage agreements reached at Kroondal - agreements provide for an on averageincrease which slightly exceeds the increase in the cost of living as measuredby the inflation rate (CPI-X) Extension to Kroondal PSA agreement concluded - life of mine extended byapproximately 3 years to 9.5 years Average PGM basket price decreased 8% for the quarter in Dollar terms Cash costs at Kroondal decreased 7% to R7,746 per PGM ounce quarter-on-quarterand decreased 5% compared to pcp Cash costs at Mimosa remained constant at $871 per PGM ounce quarter-on-quarterbut increased 13% compared to pcp Q4 2013 Operating Results Summary Kroondal Mimosa Platinum Mile 4E PGM production Total (100% basis) 106,872 57,168 4,819 Attributable 53,436 28,584 4,819 4E basket price R/oz 11,245 n/a 11,106 $/oz 1,195 1,217 1,169 Cash costs (4Ebasis) R/oz 7,746 n/a 6,228 $/oz 823 871 656 Cash margin (%) 13 29 27 Stay-in-businesscapex R/oz 795 n/a - $/oz 85 121 - Commenting on the results, Jean Nel, CEO Aquarius Platinum said: Aquarius' stated focus on improving its operational performance continuedduring the quarter and delivered results in the form of improved ounceproduction and cost performances across all the Group's operations. Thesignificant improvements at Kroondal against the backdrop of volatile regionalindustrial relations is particularly pleasing, with the highlights of thequarter being the successful conclusion of wage agreements with therepresenting unions at Kroondal without any operational interruptions and theextension of the Kroondal mine life by 3 years to approximately 9.5 yearsfollowing an agreement reached with Amplats, our partners at Kroondal. The improved operational performance however was more than off-set by thesignificant decrease in Dollar metal prices which, combined with an operatingenvironment which continues to be difficult and complex, reinforces theimperative of continued operational focus and improvements. Against thisback-drop, Aquarius' stated focus on operational improvements and treasurypreservation will continue unabated into the new financial year. Production by mine Quarter endedPGMs (4E) Jun 2013 Mar 2013 % Change June 2012 % Change Kroondal 106,872 105,027 2 82,212 30 Mimosa 57,168 51,611 11 54,588 5 Platinum Mile 4,810 3,152 53 2,830 70 Marikana - - - 21,533 - Everest - - - 15,281 - CTRP - - - 1,732 - Total 168,850 159,790 6 178,176 (5) Production by mine attributable to Aquarius (Operating mines) Quarter endedPGMs (4E) June 2013 Mar 2013 % Change Jun 2012 % Change Kroondal 53,436 52,514 2 41,106 30 Mimosa 28,584 25,805 11 27,294 5 Platinum Mile 4,810 3,152 53 2,830 70 Total 86,830 81,471 7 71,230 22 Aquarius Group quarterly attributable production (PGM ounces) to 30 June 2013 See www.aquariusplatinum.com for graph Market Summary During the quarter, the PGM Rand Basket price experienced significantvolatility, firstly getting dragged down to R11,000 per oz by the fall in metalprices, then spiking back up to R13,000 per oz on a severely weakening Rand,only to be dragged back down to R11,000 per oz by the end of the quarter.Reasons for gold's dramatic price drop (and parallel reaction in platinum) atthe start and end of the quarter include the breaking through of technicallevels and a tapering of quantitative easing expectations from the US FederalReserve. However the movements in gold and platinum ETFs have been in oppositedirections. Since mid-May over 500,000 oz have been added to global platinumETF holdings (35% increase) in anticipation of operational disruptions in SouthAfrica, while gold ETFs sold 14Moz (-18%). Auto catalyst platinum demandremains challenging with lowest vehicle sales in May for 20 years. Jewellerydemand will likely have increased with the recent USD metal price drop but moreso for gold than platinum. Primary supply remains steady with capacity cuts yetto be enacted and relatively low amount of operational disruption apart fromthe continued usage of Section 54 notices. Secondary supply from recycling isalso likely to have fallen with prices. The average platinum price decreased by 10%, while palladium decreased by 4%and rhodium decreased by 6% quarter-on-quarter. Gold fell by 13% on average.Platinum closed the quarter down 16.3% at $1,337 per ounce, while palladiumfell by 15.8% to $659 per ounce and rhodium fell by 18.7% to $1,000 per ounce.Gold fell 23.5% to $1,224 per ounce. Rand-Dollar exchange rate The average Rand-Dollar exchange rate weakened during the quarter, falling by6% from R8.87 to R9.41 to the USD. Since then, it has traded in a narrow rangeto average R10.02 in the first two weeks of July. The average Rand basket price for the quarter decreased by 4%quarter-on-quarter, and since quarter end the spot price has improved by 0.5%.The USD weighted average group basket price deteriorated by 8% to $1.186 per 4Eounce compared to the previous quarter. The average South African basket priceat AQPSA's operations was R11,294 per PGM ounce for the period. Subsequent tothe end of the quarter, the PGM basket price consolidated to average R11,355per PGM ounce for the first two weeks of July, recording a low of R10,938during July. 12-month individual PGM prices to 30 June 2013 (US$/oz) See www.aquariusplatinum.com for graph 12-month PGM basket prices to 30 June 2013 (US$ and ZAR per PGM basket ounce) See www.aquariusplatinum.com for graph 12-month ZAR price to 30 June 2013 (ZAR/US$) See www.aquariusplatinum.com for graph Average PGM basket prices achieved at Aquarius operations Quarter endedUS$ per PGM ounce (4E) Jun 2013 Mar 2013 % Change Jun 2012 % Change Kroondal 1,195 1,315 (9) 1,218 (2) Mimosa 1,217 1,247 (2) 1,239 (2) Platinum Mile 1,169 1,335 (12) 1,159 (1) Weighted Avg. 1,201 1,295 (7) 1,224 (2) 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%) 12-month rolling average LTIFR deteriorated to 1.14 per 200,000 man hours from1.05 in the previous quarter Production increased to 1,765,000 tonnes from 1,686,000 tonnes,quarter-on-quarter Head grade improved from 2.36 g/t to 2.38 g/t Recoveries deteriorated by 1% to 79% Volumes processed increased to 1,771,000 tonnes Stockpiles at the end of the quarter totalled approximately 19,000 tonnes PGM production increased by 2% to 106,872 PGM ounces, quarter-on-quarter Revenue decreased by 12% to R950 million, quarter-on-quarter, due to weakerbasket prices and negative pipeline adjustments Mining cash costs decreased by 7% to R467 per tonne, due to improved volumes Unit cash cost per PGM ounce reduced 7% to R7,746 per PGM ounce due improvedvolumes Kroondal's cash margin for the period deteriorated from 20% to 13% due to lowerPGM prices See www.aquariusplatinum.com for graph Commentary Kroondal: Production at Kroondal for the quarter was 1.765 million tonnes, up 5% comparedto the previous quarter. The improvement was achieved although the totalvamping contract was cancelled during the previous quarter. Six Section 54 stoppage instructions were issued by the Department of MineralResources (DMR) of which one was lifted immediately following discussions withthe relevant Principal Inspector of Mines. The remaining Section 54 noticeswere dealt with through a comprehensive investigation and action plans thatwere presented to the DMR. P&SA2 at Marikana (Aquarius Platinum - 50%) Given the continuing low Rand PGM basket prices, Marikana 4 shaft, theremaining operating shaft, and the processing plant at Marikana continue oncare and maintenance until further notice. Everest MineSimilarly the Everest mine remains on care and maintenance until furthernotice. AQPSA Operating cash costs per ounce (Rand) 4E 6E 6E net of by-products (Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni&Cu) Kroondal 7,746 6,365 6,207 Capital expenditure (100%) Kroondal (R'000 unless otherwise stated) Total Per 4E oz Ongoing establishment of infrastructure 51,191 479 Project capital (K6 shaft) 33,790 316 Mobile equipment purchased 32,314 302 Total 117,294 1,098 Kroondal mine: reconciliation of cash costs per 4E ounce Cost per 4E ounce (Rand) Q4 Q3 Total operating expenditure 8,939 9,331 Less: Ongoing capital expenditure & mobile equipment (781) (612) Project capex (K6 shaft) (316) (379) Transition costs (K6 shaft from contractor to own operations) (96) (27) On mine cash costs 7,746 8,312 Development of the K6 shaft infrastructure at Kroondal continues. Thetransition from underground mining contractor to Aquarius took place on 1 May2013 and has been successfully completed. The K6 shaft sinking project wascompleted within budget and ahead of time. Almost all other project and growth capital expenditure has been placed onhold, pending improved market conditions. The Company is continuing with thenecessary maintenance capital expenditure required by its operating mines. MIMOSA INVESTMENTS (Aquarius Platinum - 50%) Mimosa Platinum Mine 12-month rolling average DIIR improved to 0.05 per 200,000 man hours worked Production was static at 590,705 tonnes, quarter-on-quarter Head grade constant at 3.66g/t Recoveries were 77.90% Volumes processed increased by 11% to 625,541 tonnes Stockpiles at the end of the quarter totalled approximately 115,821 tonnes PGM production increased by 11% to 57,168 PGM ounces, quarter-on-quarter Revenue increased slightly to US$70 million, due to higher metal sales volumes Mining cash costs were constant at US$80 per tonne, and costs per PGM ouncewere also static at $871 Stay-in-business capital expenditure was $121 per PGM ounce for the quarter Mimosa's cash margin for the period decreased from 34% to 25% due to primarilydue to lower metal prices See www.aquariusplatinum.com for graph Operating cash costs per ounce Unit cash costs per PGM ounce (before by-product credits) remained at the samelevel as those achieved in the previous quarter. 4E 6E 4E net of by-products (Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni, Cu & Co) Mimosa 871 823 533 Capital expenditure The total capital expenditure for the fourth quarter amounted to $7.47 million.Expenditure was incurred mainly on mobile equipment, drill rigs and LHDs; theconveyor belt extension; down dip development; housing project; and Phase VIprefeasibility studies. TAILINGS OPERATION Platinum Mile (Aquarius Platinum - 91.7%) Material processed increased 11% to 1.014 million tonnes Head grade increased to 0.87 g/t Recoveries increased to 17% Production increased to 4,819 PGM ounces Cash costs decreased to R6,220 per PGM ounce Revenue was R44 million for the quarter The cash margin for the period was 27%, an increase from 20% in the previousquarter Commentary Platinum Mile: The production results for the quarter improved as a result of an increase inthe tons treated and continuous focus on improving the fine grindingefficiencies within the operation. During the quarter, the company purchasedthree second hand coarse grinding mills from Anglo. These mills are in theprocess of being moved and installed at the operation and should come intoproduction within the first quarter of 2014. 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 6,220 5,37 4,765 Chromite Tailings Retreatment Plant (CTRP) (Aquarius Platinum - 50%) This operation remains on care and maintenance. CORPORATE MATTERS Wage agreements reached at Kroondal Aquarius' wholly owned subsidiary, Aquarius Platinum (South Africa)(Proprietary) Limited concluded a wage agreement with the National Union ofMineworkers in relation to its members employed at the Kroondal mine. TheKroondal mine currently employs approximately 8,120 people includingcontractors and the NUM is the majority union at the mine, representingKroondal's Cat B, semi-skilled work force. Post quarter, AQPSA also reached a wage agreement with Solidarity representingKroondal's Cat A, skilled workforce. Both agreements provide for an on average increase which slightly exceeds theincrease in the cost of living as measured by inflation rate (CPI-X) and comeinto effect from 1 July 2013 and will remain in place for one year. The successful conclusion of the wage agreement is a significant positivedevelopment for the company, particularly in the difficult environment theplatinum sector is currently experiencing. AQPSA is extremely proud of itsworkforce which continued to work uninterruptedly to maintain its operatingperformance throughout the negotiation process. Extension of the Kroondal PSA The Company reached agreement with a wholly owned subsidiary of Anglo AmericanPlatinum (Amplats) to extend the Kroondal PSA arrangement. The agreementincreases Kroondal's life-of-mine by approximately 3 years from approximately6.5 years to approximately 9.5 years. More information on all corporate matters can be found atwww.aquariusplatinum.com Statistical information: Kroondal P&SA1 See www.aquariusplatinum.com for statistical information Statistical information: Mimosa See www.aquariusplatinum.com for statistical information Statistical information: Platinum Mile See www.aquariusplatinum.com for statistical information Aquarius Platinum LimitedIncorporated in Bermuda Exempt company number 26290 Board of Directors Nicholas Sibley Non-executive ChairmanJean Nel Chief Executive OfficerDavid Dix Non-executiveTim Freshwater Non-executive (Senior Independent Director)Edward Haslam Non-executiveKofi Morna Non-executiveZwelakhe Mankazana Non-executiveSonja Sebotsa Non-executive Audit/Risk Committee David Dix (Chairman)Edward HaslamTim FreshwaterKofi MornaNicholas Sibley Remuneration/Succession Planning Committee Edward Haslam (Chairman)David DixZwelakhe MankazanaNicholas Sibley Nomination Committee Sonja Sebotsa (Chairman)Edward HaslamTim FreshwaterKofi MornaWilli Boehm Company SecretaryWilli Boehm AQPSA Management Sonja Sebotsa Non-executive ChairmanRobert Schroder Managing DirectorJean Nel Executive DirectorGraham Ferreira Finance DirectorWessel Phumo General Manager: Kroondal Mimosa Mine Management Winston Chitando ChairmanHerbert Mashanyare Technical DirectorPeter Chimboza Resident DirectorFungai Makoni General Manager Finance & Company Secretary Platinum Mile Management Richard Atkinson Managing DirectorPaul Swart Financial Director Issued capital At 30 June 2013, the Company had on issue: 486,851,336 fully paid common sharesand 120,000 unlisted options. Substantial shareholders 30 June 2013 Number of Shares Percentage HSBC Custody Nominees (Australia) Limited 30,192,061 6.20 Chase Nominees Limited 29,419,456 6.04 J P Morgan Nominees Australia Limited 25,631,711 5.26 Primary Australian Securities Exchange Trading InformationListing: (AQP.AX) Premium London Stock Exchange (AQP.L) ISIN number BMG0440M1284Listing: Secondary JSE Limited (AQP.ZA) ADR ISIN number US03840M2089Listing: Convertible Bond ISIN number XS0470482067 Broker (LSE) (Joint) Broker (ASX) Sponsor (JSE) Liberum Capital Limited Euroz Securities Rand Merchant BankRopemaker Place, Level Level 18 Alluvion (A division ofLevel 12 58 Mounts Bay Road, FirstRand Bank25 Ropemaker Street Perth WA 6000 Limited)London EC2Y 9LY Telephone: +61 (0) 8 9488 1400 1 Merchant PlaceTelephone: +44 (0) 20 3100 2000 Cnr of Rivonia Rd & Fredman Drive, Sandton 2196Barclays Johannesburg South Africa5 The North ColonnadeCanary WharfLondon E14 4BBTel: +44 (0)20 7623 2323 Aquarius Platinum (South Africa) (Proprietary) Ltd100% 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 2848Facsimile: +27 (0) 12 001 2070 Aquarius Platinum Corporate Services Pty Ltd100% 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, 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 the United Kingdom and South Africa: In Australia:Jean Nel Willi Boehm+27 (0) 10 001 2848 +61 (0) 8 9367 5211 Glossary A$ Australian Dollar Aquarius Aquarius Platinum Limitedor AQP APS Aquarius Platinum Corporate Services Pty Ltd AQPSA Aquarius Platinum (South Africa) (Pty) Ltd ACS(SA) Aquarius Platinum (SA) Corporate Services (Pty) Ltd BEE Black Economic Empowerment BRPM Blue Ridge Platinum Mine CTRP Chrome Tailings Retreatment Operation. Consortium comprising Aquarius Platinum (SA) (Corporate Services) (Pty) Limited (ASACS), Ivanhoe Nickel and Platinum Limited and Sylvania South Africa (Pty) Ltd (SLVSA). DIFR Disabling injury frequency rate, being the number of lost-time injuries expressed as a rate per 1,000,000 man-hours worked DIIR Disabling injury incidence rate, being the number of lost-time injuries expressed as a rate per 200,000 man-hours worked DME formerly South African Government Department of Minerals and Energy DMR South African Government Department of Mineral Resources, formerly the DME Dollar United States Dollaror $ Everest Everest Platinum Mine Great A PGE-bearing layer within the Great Dyke Complex in ZimbabweDykeReef GoZ Government of Zimbabwe g/t Grams per tonne, measurement unit of grade (1g/t = 1 part per million) JORC Australasian code for reporting of Mineral Resources and Ore Reservescode JSE Johannesburg Stock Exchange Kroondal Kroondal Platinum Mine or P&SA1 at Kroondal LHD Load haul dump machine LTIFR Lost Time Injury Frequency Rate Marikana Marikana Platinum Mine or P&SA2 at Marikana Mimosa Mimosa Mining Company (Private) Limited NUM National Union of Mineworkers nm Not measured PGE(s) Platinum group elements plus gold. Five metallic elements commonly(6E) found together which constitute the platinoids (excluding Os (osmium)). These are Pt (platinum), Pd (palladium), Rh (rhodium), Ru (ruthenium), Ir (iridium) plus Au (gold) PGM(s) Platinum group metals plus gold. Aquarius reports PGMs as comprising(4E) Pt+Pd+Rh plus Au (gold) with Pt, Pd and Rh being the most economic platinoids in the UG2 Reef PlatMile Platinum Mile Resources (Pty) Ltd PSA1 Pooling & Sharing Agreement between AQPSA and RPM Ltd on Kroondal PSA2 Pooling & Sharing Agreement between AQPSA and RPM Ltd on Marikana R or South African RandRand Ridge Ridge Mining Limited ROM Run of mine. The ore from mining which is fed to the concentrator plant. This is usually a mixture of UG2 ore and waste. RPM Rustenburg Platinum Mines Limited, a subsidiary of Anglo PlatinumLimited Limited Tonne 1 metric tonne (1,000kg) TARP Trigger Action Response Procedure UG2 Reef A PGE-bearing chromite layer within the Critical Zone of the Bushveld Complex