AQP.L Regulatory News (AQP)

Aquarius Platinum Limited Financial and Production Results to 30 September 2013 Highlights EBITDA of $6.3 million up from $1.6 million in the previous correspondingperiod (pcp) September 2012, but down $4 million quarter-on-quarter due tohigher costs and lower recoveries at Kroondal Net loss after tax reduced to $10.2 million from $19.6 million in the pcp Attributable production increased by 9% to 84,504 4E ounces compared to the pcpand remains consistent quarter-on-quarter - 2.6% lower Continued consistent production performance at Kroondal reinforces the benefitsof transferring to owner operator and the successful implementation of therevised hanging wall system Average PGM basket price decreased 3% for the quarter in Dollar terms butincreased 5% in Rand terms due to Rand weakness Cash costs at Kroondal decreased 1% per PGM ounce compared to pcp but increased17% to R9,094 per PGM ounce quarter-on-quarter of which 6% relates to a one offadjustment of leave provisions in the previous quarter, 3% to higher winterelectricity tariffs and 4% to the annual wage increase Cash costs at Mimosa increased 1% per PGM ounce compared to the pcp butdecreased 4% to $838 per PGM ounce quarter-on-quarter Q1 2014 Operating Results Summary Kroondal Mimosa Platinum Mile 4E PGM production Total (100% basis) 106,441 55,110 3,729 Attributable 53,220 27,555 3,729 4E basket price R/oz 11,818 11,718 $/oz 1,183 1,133 1,173 Cash costs (4Ebasis) R/oz 9,094 - 6,934 $/oz 910 838 694 Cash margin (%) 12 17 23 Stay-in-businesscapex R/oz 736 - 0 $/oz 74 107 0 Commenting on the results, Jean Nel, CEO Aquarius Platinum said: The quarter in question was yet another challenging quarter on all fronts.Despite the challenges we faced, all operations delivered improved safetyperformances, and all operations delivered production results in line or aboveforecast. Notably, Kroondal exceeded forecast production levels, delivering inexcess of 100,000 4E ounces for the fourth consecutive quarter, despite bothconcentrator plants undergoing planned maintenance during the quarter anddespite the mine encountering geological and consequential recovery problemsthroughout the quarter. Cost performance at Mimosa and Plat Mile was in lineand below forecast respectively, while costs at Kroondal were higher driven bythe implementation of the wage increase in July, winter electricity tariffs,which will reverse in Q2, as well as lower concentrator plant recoveries. The credible operational performance for the quarter, and the significantreduction in the company's corporate cost base notwithstanding, our businessremains marginal at prevailing metal prices, where no improvement appearsimminent. Against this backdrop management will remain resolute in its focus onimproved safety, cost and operational performance. Tragically, post quarter end an employee, Cintiah Setuke, lost her life atKroondal in what appears from the preliminary investigations to be a criminalact. Kroondal security personnel apprehended a suspect and handed him over theSAPS and he remains in custody. I join my colleagues in expressing condolencesto her family and friends and Aquarius reiterates that it renounces all acts ofviolence. Sadly the incident took place despite an improved safety performanceat Kroondal and after the successful launch of Kroondal's safety campaign,Step-it-Up. Kroondal continues to render its full support to the Department ofMineral Resources and the South African Police Services in the course of itsinvestigation. Production by mine Quarter endedPGMs (4E) Sept 2013 Jun 2013 % Change Sept 2012 % Change Kroondal 106,441 106,872 - 92,073 16 Mimosa 55,110 57,168 (4) 56,341 2 Platinum Mile 3,729 4,825 (23) 3,270 14 Total 165,280 168,865 (2) 151,684 9 Production by mine attributable to Aquarius (Operating mines) Quarter endedPGMs (4E) Sept 2013 June 2013 % Change Sept 2012 % Change Kroondal 53,220 53,436 - 46,036 16 Mimosa 27,555 28,584 (4) 28,171 2 Platinum Mile 3,729 4,825 (23) 3,270 14 Total 84,504 86,845 (3) 77,477 9 Aquarius Group quarterly attributable production (PGM ounces) to 30 September2013 See www.aquariusplatinum.com for graph Market Summary It was another very volatile quarter for the PGM Rand Basket, with pricesrising from R11,000 per PGM oz to new all-time highs of R13,500 per PGM oz,only to fall back to R12,000 per PGM oz by the end of September. The moves inthe US$ platinum price remain dictated by moves in the gold price, which inspite of the US Federal Reserve not tapering its quantitative easing programmeand the prospect of a US default, resumed its downward trend at the beginningof September. The debt ceiling debate may have agitated the US Federal Reserveenough to continue with its quantitative easing programme in the short term.The Rand exchange rate has for the most part traded around the R10/US$ level,with significant strengthening as a result of the US Federal Reserve nottapering its quantitative easing programme, only to weaken shortly after on theconcerns of strike action. The platinum ETF buying continued at a strong pacewith total global holdings up nearly 60% YTD. The ETF purchases are absorbingexcess supply but are raising longer term concerns on potential futureoutflows. Optimism is growing in the European car market with registrations up5% year-on-year, although commentators do not expect any material growth fortwo years. Strong Chinese auto sales surged 21% in September beating analysts'expectations and maintaining support for palladium demand. The average platinum price decreased by 1%, while palladium increased by 1.3%and rhodium fell by 11% quarter on quarter. Gold fell by 6.3% on average.Platinum closed the quarter up 2.1% at $1,408 per ounce, while palladium roseby 6% to $726 per ounce and rhodium fell by 1% to $990 per ounce over the sameperiod. Gold rose 5.6% to $1,327 per ounce. Rand-Dollar exchange rate The average Rand-Dollar exchange rate weakened during the quarter, falling by6% from R9.41 to R9.99 to the Dollar. Since then, it has traded in a narrowrange to average R9.97 in the first two weeks of October. The average Rand basket price for the quarter improved by 5%quarter-on-quarter, but since quarter end the spot price has deteriorated by4%. The Dollar weighted average group basket price deteriorated by 3% to $1,168per 4E ounce compared to the previous quarter. The average South African basketprice at AQPSA's operations was R11,824 per PGM ounce for the period.Subsequent to the end of the quarter, the PGM basket price consolidated toaverage R11,359 per PGM ounce for the first two weeks of October, recording alow of R11,202 during October. 12 month individual PGM prices to 30 Sept 2013 (US$/oz) See www.aquariusplatinum.com for graph 12 month PGM basket prices to 30 Sept 2013 (US$ and ZAR per PGM basket ounce) See www.aquariusplatinum.com for graph Average PGM basket prices achieved at Aquarius operations Quarter endedUS$ per PGM ounce (4E) Sept 2013 Jun 2013 % Change Sept 2012 % Change Kroondal 1,183 1,195 (1) 1,195 (1) Mimosa 1,133 1,217 (7) 1,148 (1) Platinum Mile 1,173 1,169 0 1,272 (8) Weighted Avg. 1,168 1,201 (3) 1,182 (1) Financials Direct comparisons with prior periods are not possible given the introductionof the International Financial Reporting Standard 11 (IFRS11) governing theaccounting for jointly controlled investments. Aquarius has commencedaccounting for its investments in Mimosa and Blue Ridge as joint ventures andaccordingly is required to apply the equity accounting method from 1 July 2013.The equity method recognises the Group's share of net assets and contributionto profit and loss as single line items in the statement of financial positionand statement of comprehensive income. This differs from the previous approachwhich included each line item such as revenue, cost of sales, expenses etc aspart of the consolidated results. This change has not resulted in a change tothe net assets of the Group. Whilst Aquarius' after tax result remains identical under both reportingformats, it is important to note that Aquarius' reported cash position fromJuly 2013 only reflects cash from Aquarius' joint operations (Kroondal) and nolonger includes cash held in joint ventures such as Mimosa and Blue Ridge.Aquarius' net investment in Mimosa and Blue Ridge is disclosed in the balancesheet as "Investments in joint venture entities." Results for comparative periods below have been restated to account for thechange in accounting policy. Aquarius recorded an on-mine EBITDA profit of $6.3 million for the quarterended 30 September 2013. This represents an increase in EBITDA of $4.7 million,a 3 fold increase compared to the previous corresponding quarter, September2012 (pcp). The increased result was due to a 15% increase in production atKroondal compared to the pcp during which time Kroondal was undergoing atransformation to an owner operated mine and was also implementing a revisedhanging wall support system. The successful implementation of both initiativesis clearly visible in Kroondal's production record since September 2012. Thisis the fourth consecutive quarter that the Kroondal mine has produced in excessof 100,000 PGM ounces. EBITDA, Profit and Production Comparison: Quarter ended Sept Sept Movement 2013 2012 EBITDA $6.3M $1.6M $4.7M Revenue $59.7M $58.0M $1.7M Share of (loss)/profit from joint venture ($1.3M) $0.3M ($1.6M)entities (note a) Aquarius Group - Net loss after tax ($10.2M) ($19.6M) $9.4M note a: Share of profit/(loss) from joint ventureentities consists of: EBITDA $5.3M $5.9M ($0.6M) Other expenses ($6.6M) ($5.6M) ($1.0M) Net (loss)/profit after tax contribution to ($1.3M) $0.3M ($1.6M)Aquarius Group Revenue (PGM sales plus interest income of $1.3 million) was up marginally at$60 million compared to $58 million in the pcp. The increased revenue, achieveddespite the lower PGM basket price, was driven by Kroondal's 16% increase inproduction. Revenue from Mimosa which is included in "share of profit/(loss) from jointlycontrolled entities" was lower due to a $5.3 million negative sales adjustmentincurred during the quarter. Quarter ended Kroondal & Platinum Mile Sep 2013 Jun 2013 Mar 2013 Dec 2012 Sep 2012 $53.7MRevenue $59.4M $61.3M $64.0M $58.5M PGM sales adjustments $0.3M ($5.4M) $1.6M ($0.8M) $4.2M Total revenue $59.7M $55.9M $65.6M $57.7M $57.9M Mimosa (joint venture entity) Revenue $33.5M $39.5M $35.3M $35.3M $35.0M PGM sales adjustments ($5.3M) ($4.5M) ($0.4M) ($1.2M) ($5.6M) Total revenue $28.2M $35.0M $34.9M $34.1M $29.4M Production for the quarter increased 9% to 84,504 PGM ounces compared to thepcp with the majority of the increased production coming from Kroondal.Production at joint venture entity Mimosa remained consistent. Production comparisons Quarter ended Sep Jun Mar Dec Sep 2013 2013 2013 2012 2012 PGM production - Kroondal & Platmile 56,949 58,261 55,665 52,612 49,306 PGM production - Mimosa 27,555 28,584 25,805 26,377 28,171 Total attributable production (PGM oz) 84,504 86,845 81,470 78,989 77,477 Average PGM basket price per ounceachieved Kroondal & Platinum Mile R11,815 R11,225 R11,674 R10,903 R9,924 Kroondal & Platinum Mile $1,183 $1,193 $1,316 $1,261 $1,199 Mimosa $1,133 $1,217 $1,247 $1,213 $1,148 Total cash cost of production of $53 million was marginally lower compared tothe pcp (despite a 15% increase in production) due to a 21% weakening in theRand/Dollar exchange rate. In Rand terms, total cash costs were 17% highercompared to the pcp in line with increased production. On a per unit cash costbasis, Kroondal's cash costs per ounce in Rand terms increased 1% compared tothe pcp but decreased by 16% in Dollar terms due to the weaker Rand. Compared to the previous quarter ended June 2013, cash costs at Kroondalincreased by 17% per PGM ounce in Rand terms. This increase was driven by areversal of leave pay provision (6%), higher winter electricity tariffs (3%),implementation of the annual wage increase at Kroondal (4%) and lowerrecoveries caused by geological complexities at Kwezi shaft mining through asheer zone at Bambanani (2%). In Dollar terms, Kroondal's cash costs were 11%higher compared to the last quarter ended June 2013. Mimosa's cash costs per PGM ounce increased 1% compared to the pcp butdecreased 4% compared to the last quarter ended June 2013. Amortisation and depreciation were marginally higher at $9.7 million comparedto the pcp in line with increased production. Administrative costs of $1.7 million were lower compared to the pcp in linewith the cost reduction initiatives taken by the Aquarius Group. Finance costsfor the quarter included interest paid on borrowings of $3.0 million, non-cashinterest accretion on convertible bonds of $2.5 million and unwinding of therehabilitation provision of $1.0 million. Net operating cash inflow for the quarter of $1 million comprised $60 millioninflow from sales, $60 million paid to suppliers and $1 million interestreceived. Development and capital expenditure for the quarter was $4 million.Net financing cash inflows of $14 million included dividends of $18 millionfrom Mimosa, $3 million interest paid and $1 million repayment of AQPSA leaseliabilities. The Group's cash balance was $91 million at the end of the quarter, held asfollows: AQP $62 million AQPSA $22 million ACS(SA) $2 million Platmile $4 million Ridge Mining $1 million Total $91 million (note a) notea Mimosa and Blue Ridge (which Aquarius has a 50% equity interest in) are nowaccounted for using the equity method. Cash held in these two entities at 30September 2013 was $14 million and does not form part of the above cashbalances. Under the previous method of proportionately consolidating itsinvestment in Mimosa and Blue Ridge, 50% of this cash would have been includedin Aquarius' Group cash balance. Aquarius Platinum Limited Consolidated Income Statement Quarter ended 30 September 2013 $'000 Quarter Quarter Financial Year Ended Ended Ended Note 30/09/13* 30/09/12 30/06/13 * PGM production - Kroondal & 56,949 49,306 216,167Platmile PGM production - Mimosa 27,555 28,171 108,936 Total PGM production 84,504 77,477 325,103 Revenue (i) 59,660 57,975 237,115 Cost of sales (including D&A) (ii) (62,519) (63,540) (248,308) Gross loss (2,859) (5,565) (11,193) Other income 11 68 278 Administrative costs (iii) (1,661) (2,768) (12,786) Foreign exchange gain/(loss) (iv) 1,967 2,744 (19,322) Finance costs (v) (6,828) (6,304) (24,365) Impairment losses - - (214,111) Closure, transition and (vi) (12) (14,621) (54,538)rehabilitation costs Share of (loss)/profit from joint (vii) (1,304) 261 (5,003)venture entities Loss before income tax (10,686) (26,185) (341,040) Income tax benefit (viii) 489 6,577 53,127 Net loss (10,197) (19,608) (287,913) Net loss is attributable to: Equity holders of Aquarius (10,228) (19,628) (287,207)Platinum Limited Non-controlling interests (ix) 31 20 (706) (10,197) (19,608) (287,913) Earnings per share Basic loss per share (cents per (2.17) (4.17) (61.13)share) * Unaudited Notes on the September 2013 Consolidated Income Statement The marginal increase in revenue despite a 15% increase in production reflectscontinued low Dollar PGM prices and the impact of a 21% depreciation of theRand compared to the pcp. Lower aggregate costs in Dollar terms were recorded for cost of sales includingD&A despite a 15% increase in production due to a 21% depreciation of the Randcompared to the pcp. In Rand terms aggregate costs would have increased by 19%. Administration and other costs of $1.7 million are lower and in line withrecent cost reduction initiatives. The forex gain of $2 million is attributable to revaluation adjustments on cashbalances held in Rands, Australian Dollars and Pound Stirling, and therevaluation of pipeline debtors in line with movements in the Rand against theUS Dollar. Finance costs include interest paid on borrowings of $3 million, non-cashinterest accretion on convertible bonds of $2.5 million and the unwinding ofthe rehabilitation provision of $1 million. Closure and transition costs reflect closure costs incurred on the closure ofEverest and Marikana and the transition to owner-operator costs incurred atKroondal. Represents share of profit of Mimosa and Blue Ridge, the joint ventureentities. Mimosa's contribution was adversely impacted by a negative salesadjustment of $5.3 million. Income tax benefit consists of AQPSA deferred tax credits. Non-controlling interests reflect the 8.3% non-controlling interest of PlatinumMile Resources (Pty) Ltd. Aquarius Platinum Limited Consolidated Statement of Cash Flows Quarter ended 30 September 2013 $'000 Quarter Quarter Financial Year Ended Ended Ended Note 30/09/13* 30/09/12* 30/06/13 Net operating cash inflow/(outflow) (i) 729 (50,292) (21,448) Net investing cash outflow (ii) (4,352) (9,152) (20,629) Net financing cash inflow/(outflow) (iii) 13,902 (4,318) (34,364) Net increase/(decrease) in cash held 10,279 (63,762) (76,441) Opening cash balance 77,773 166,652 166,652 Exchange rate movement on cash 2,845 4,422 (12,438) Closing cash balance (iv) 90,897 107,312 77,773 * Unaudited Notes on the September 2013 Consolidated Statement of Cash Flows Net operating cash flow for the quarter includes $60 million inflow from sales,$60 million paid to suppliers and $1 million interest received. Comprises $4 million of development and plant and equipment expenditure atAQPSA. Includes dividends of $18 million from Mimosa, $3 million interest paid and $1million repayment of AQPSA lease liabilities. Mimosa and Blue Ridge (which Aquarius has a 50% equity interest in) are nowaccounted for using the equity method. Cash held in these two entities at 30September 2013 was $14 million and does not form part of the above cashbalances. Under the previous method of proportionately consolidating itsinvestment in Mimosa and Blue Ridge, 50% of this cash would have been includedin Aquarius' Group cash balance. Aquarius Platinum Limited Consolidated Balance Sheet At 30 September 2013 $'000 $'000 As at As at Note 30/09/13* 30/06/13 Assets Cash and cash equivalents 90,897 77,773 Current receivables (i) 35,256 33,965 Other current assets (ii) 16,190 16,181 Property, plant and equipment (iii) 101,306 105,030 Mining assets (iv) 119,277 121,695 Intangibles (v) 58,547 59,449 Investments in joint venture entities (vi) 188,049 207,299 Other non-current assets (vii) 50,529 49,327 Total assets 660,051 670,719 Liabilities Current liabilities (viii) 27,633 26,765 Non-current payables (ix) 2,694 2,665 Non-current interest-bearing liabilities (x) 270,529 268,788 Other non-current liabilities (xi) 76,791 76,559 Total liabilities 377,647 374,777 Net assets 282,404 295,942 Equity Issued capital 24,370 24,370 Treasury shares (27,554) (26,526) Reserves 637,536 639,854 Accumulated losses (357,631) (347,402) Total equity attributable to equity holders of Aquarius Platinum Limited 276,721 290,296 Non-controlling interests (xii) 5,683 5,646 Total equity 282,404 295,942 * Unaudited Notes on the September 2013 Consolidated Balance Sheet Reflects debtors receivable on PGM concentrate sales. Reflects PGM concentrate inventory, consumables, stores and critical spares. Represents plant and equipment within the Group. Includes Group mining assets at Kroondal, Marikana, Everest, CTRP and Platmile. Includes intangibles relating to contract value acquired on the acquisition ofequity interest in Platinum Mile Resources (Pty) Ltd. Represents the investment in Mimosa and Blue Ridge. Includes the recoverable portion of the rehabilitation provision from AngloPlatinum of $10 million, receivables from joint venture entities of $24 millionand investments in rehabilitation trusts of $17 million. Includes trade creditors of $22 million, AQPSA finance leases of $4 million andprovision for annual leave of $1 million. Includes rehabilitation obligations on P&SA1 and P&SA2 structures. Comprises convertible bonds of $271 million. Includes deferred tax liabilities $2 million and provision for closure costs$75 million. Reflects the 8.3% non-controlling interest of Platinum Mile Resources (Pty)Ltd. Operating Review Summary (all numbers on 100% basis) AQUARIUS PLATINUM (SOUTH AFRICA) (PTY) LTD (Aquarius Platinum - 100%) PSA 1 at Kroondal (Aquarius Platinum - 50%) 12-month rolling average LTIFR improved to 1.06 per 200,000 man hours from1.14, quarter-on-quarter Production increased to 1,851,000 tonnes from 1,765,000 tonnes,quarter-on-quarter Head grade remained stable at 2.38g/t Recoveries deteriorated by 2% to 78% Volumes processed increased to 1,790,000 tonnes Stockpiles at the end of the quarter totalled approximately 80,000 tonnes PGM production marginally decreased by 0.4% to 106,441 PGM ounces,quarter-on-quarter Revenue increased by 15% to R1,097 million, quarter-on-quarter, due to the randweakening Mining cash costs increased by 16% to R541 per tonne, due to electricity wintertariffs, fuel prices and labour increases Unit cash cost per PGM ounce increased 17% to R9,094 per PGM ounce Kroondal's cash margin for the period deteriorated from 13% to 12% due toincreased costs Production, Cash costs and Price Analysis See www.aquariusplatinum.com for graph Commentary Kroondal: Production at Kroondal for the quarter was 1.851 million tonnes, up 5% comparedto the previous quarter. One section 54 instruction was issued by the DMR atSimunye shaft resulting in a loss of five working days. The cost increases were driven by the implementation of the wage increase inJuly (4%), winter electricity tariffs (3%) which will reverse in Q2, and thereversal of the leave pay provision in the comparative quarter (June 2013)(6%). In addition to these expected cost increases, geological complicationsresulted in additional tonnes being milled at lower recovery to achieveforecast ounces and hence increased costs. More specifically, there was adeterioration of 2% in the level of concentrate recoveries due to the presenceof the iron-rich ultramafic pegmatite (IRUP) in the processed ore. This causedFerrosilicone losses in the DMS thus reducing recoveries. Samples of the IRUPore which originates from Kwezi shaft have been sent for analysis to determinethe optimal recovery of PGM's. The full impact this has on the flotationrecovery will only be determined once the full mineralogical analysis iscompleted. Further disruptions to mining were encountered at Bambanani where two thirds ofthe mining faces at Bambanani are mining through a shear zone where the ore isoxidised, thus further reducing recoveries. It is expected that the all themining faces will be through this shear zone at the end of the next quarter. PSA2 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 9,094 7,475 7,301 Capital expenditure (100%) Kroondal (R'000 unless otherwise stated) Total Per 4E oz Ongoing establishment of infrastructure 53,185 500 Project capital (K6 shaft) 25,158 236 Mobile equipment purchased 4,633 44 Total 82,976 780 Kroondal mine: reconciliation of cash costs per 4E ounce Cost per 4E ounce (Rand) Q1 2014 Q4 2013 Total operating expenditure 9,873 8,939 Less: Ongoing capital expenditure & mobile equipment (543) (781) Project capex (K6 shaft) (236) (316) Transition costs (K6 shaft from contractor to own operations) 0 (96) On mine cash costs 9,094 7,746 The K6 shaft sinking project was completed within budget and ahead of time.Development of the K6 shaft infrastructure at Kroondal continues. Thetransition from underground mining contractor to Aquarius at K6 shaft tookplace on 1 May 2013 and has been successfully completed. 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 0.03 per 200,000 man hours worked Production improved by 6% to 625,656 tonnes, quarter-on-quarter Head grade deteriorated slightly to 3.63 g/t Recoveries were 77.33%, down 1% quarter-on-quarter Volumes processed decreased by 2% to 611,133 tonnes Stockpiles at the end of the quarter totalled approximately 130,344 tonnes PGM production decreased by 4% to 55,110 PGM ounces, quarter-on-quarter Revenue decreased by 20% to $56 million, due to depressed dollar metal prices Mining cash costs decreased to $76 per tonne, and cash costs per PGM ounce alsodecreased to $838 per PGM ounce Stay-in-business capital expenditure was $107 per PGM ounce for the quarter Mimosa's cash margin for the period decreased from 29% to 17% due to the 20%decrease in revenue as mentioned above Production, Cash costs and Price Analysis See www.aquariusplatinum.com for graph Operating cash costs per ounce Unit cash costs per PGM ounce before by-product credits) was 4% better thanthat achieved in the previous quarter as a result of various cost savinginitiatives being implemented across the mine. 4E 6E 4E net of by-products (Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni, Cu & Co) Mimosa 838 793 549 Capital expenditure The total capital expenditure for the first quarter amounted to $6.19 million.Expenditure was incurred mainly on mobile equipment, drill rigs and LHDs, theconveyor belt extension, down dip development, milling and floatation projectas well as primary jaw crusher refurbishment. TAILINGS OPERATION Platinum Mile (Aquarius Platinum - 91.7%) Material processed increased 12% to 1,134 million tonnes, quarter-on-quarter Head grade decreased to 0.74 g/t Recoveries decreased to 14% Production decreased to 3,729 PGM ounces Cash costs increased to R6,934 per PGM ounce Revenue was R34 million for the quarter The cash margin for the period was 23%, a decrease from 27% in the previousquarter Commentary Platinum Mile: Strikes and stoppages as a result of water shortages at Anglo Platinum resultedin the loss of a number of production days for the quarter. These strikescontinued into October 2013 and will also impact negatively on productionresults for the ensuing quarter. The installation of three coarse grinding mills at the operation is progressingand remains on target to come into production within the first quarter ofcalendar 2014. This enhancement should yield approximately 600 additionalounces per month. 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 6,934 5,991 5,417 Chromite Tailings Retreatment Plant (CTRP) (Aquarius Platinum - 50%) This operation remains on care and maintenance. CORPORATE MATTERS Fatal incident at Kroondal It is with great regret and sadness that a female employee was fatally injuredin what appears to be a criminal act whilst underground at Kroondal PlatinumMine's Kwezi Shaft on 9 October 2013. A suspect was apprehended by Kroondalsecurity personnel and handed over to the SAPS and is currently being held incustody by the South African Police Service (SAPS). Trauma counselling has been held at the mine and has also been made availableto the family of the deceased. AQPSA's Human Resources department is in contactwith the family and is assisting with any required arrangements. AQPSA hasextended an offer to the family to recruit a family member to provide furtherassistance and support. Aquarius deplores any incidence of violence. The company will work closely withthe SAPS, the Department of Mineral Resources and employee representatives tosupport her family and to assist with the investigation. More information on corporate matters can be found at www.aquariusplatinum.com Statistical information: Kroondal PSA1 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 Chairman Jean Nel Chief Executive Officer David Dix Non-executive Tim Freshwater Non-executive (Senior Independent Director) Edward Haslam Non-executive Kofi Morna Non-executive Zwelakhe Mankazana Non-executive Sonja de Bruyn Sebotsa Non-executive Audit/Risk Committee David Dix (Chairman) Edward HaslamTim Freshwater Kofi Morna Nicholas Sibley Remuneration Committee Edward Haslam (Chairman) David Dix Zwelakhe Mankazana Nicholas Sibley Nomination Committee Sonja de Bruyn Sebotsa (Chairman) Edward Haslam Tim Freshwater Kofi Morna Willi Boehm Company Secretary Willi Boehm AQPSA Management Robert Schroder Managing Director Jean Nel Executive Director Graham Ferreira Finance Director Wessel Phumo General Manager: Kroondal Mimosa Mine Management Winston Chitando Chairman Herbert Mashanyare Technical Director Peter Chimboza Resident Director Fungai Makoni General Manager Finance & Company Secretary Platinum Mile Management Richard Atkinson Managing Director Paul Swart Financial Director Issued capital At 30 September 2013, the Company had on issue: 486,851,336 fully paid commonshares and 120,000 unlisted options. Substantial shareholder 30 September 2013 Number of Shares Percentage Wellington Management Company 45,475,688 9.34 The Capital Group Companies 37,117,112 7.62 HSBC Custody Nominees (Australia) Limited 31,277,455 6.42 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 CapitalLimitedRopemaker Place,Level 12 Euroz Securities Level 18 Alluvion25 Ropemaker Street 58 Mounts Bay Road, Rand Merchant Bank Perth WA 6000 (A division of FirstRand BankLondon EC2Y 9LY Telephone: +61 (0) 8 Limited)Telephone: +44 (0) 20 9488 1400 1 Merchant Place3100 2000 Cnr of Rivonia Rd & Fredman Drive, Sandton 2196 Johannesburg South Africa Barclays 5 The North Colonnade Canary Wharf London E14 4BB Tel: +44 (0) 20 76232323 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, SouthAfricaPostal Address: PO Box 7840, Centurion, 0046, South Africa Telephone: +27 (0) 10 001 2848 Facsimile: +27 (0) 12 001 2070 Aquarius Platinum Corporate Services Pty Ltd 100% Owned (Incorporated in Australia) ACN 094 425 555 Level 4, Suite 5, South Shore Centre, 85 The Esplanade, South Perth WA 6151,Australia Postal Address: PO Box 485, South Perth, WA 6951, Australia Telephone: +61 (0) 8 9367 5211 Facsimile: +61 (0) 8 9367 5233 Email: info@aquariusplatinum.com For further information please visit www.aquariusplatinum.com or contact: In the United Kingdom and South Africa: In Australia:Jean Nel+27 (0) 10 001 2848 Willi Boehm +61 (0) 8 9367 5211 Glossary A$ Australian Dollar Aquarius Aquarius Platinum Limitedor AQP ACS 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