AQP.L Regulatory News (AQP)

Aquarius Platinum Limited Financial and Production Results to 31 March 2015 Highlights Attributable production for the quarter from operating mines was 84,792 PGMounces - 6% higher compared to the previous corresponding period ended March2014 (pcp), quarter-on-quarter production decreased 5% due to a shorterproduction quarter Group production for year to date remains ahead of guidance Cash costs increases at Kroondal remained below inflationary targets increasing1% for the nine months ended March 2015 compared to the nine months ended March2014, although quarter-on-quarter costs increased 7%, driven by less productionshifts and stock pile reduction over Christmas holidays Cash costs at Mimosa significantly lower, 8% for the nine months ended 31 March2015 compared to the nine months ended March 2014, while quarter-on-quartercosts increased 2% Average PGM basket price decreased 4% quarter-on-quarter in Dollar terms, down9% compared to the pcp The Rand weakened against the US Dollar by 5% on average quarter-on-quarter -down 8% compared to pcp Revenue down 2% to $50 million (Q2 2015: $51 million) in line with lowerproduction and low prices Mine EBITDA marginally up at $4.4 million (Q2 2015: $3.6 million), down $6.7million compared to pcp due to a $6 million negative sales adjustment caused bylower PGM prices Attributable cash balance increased by $2 million during the quarter to $174million (of which $13 million is held in JV entities) Q3 2015 Operating Results Summary Kroondal Mimosa Platinum Mile 4E PGM Production Total (100% basis) 107,089 57,391 2,552 Attributable 53,544 28,696 2,552 4E Basket Price R/oz 12,446 12,187 $/oz 1,062 1,036 1,039 Cash Costs (4Ebasis) R/oz 9,560 9,327 $/oz 815 799 795 Cash Margin (%) 6 21 3 Stay-in-BusinessCapex R/oz 698 0 $/oz 90 119 0 Commenting on the results, Jean Nel, CEO Aquarius Platinum said: Despite the challenging operating and macro environment, Aquarius recordedanother credible operating result and made progress on a number of strategicinitiatives during the quarter. Most importantly both Kroondal and Mimosadelivered production ahead of guidance and managed to contain annualised costincreases well below inflation, whilst continuing to improve its longer termsafety record. Kroondal delivered a record 9th consecutive quarter of PGM production in excessof 105,000 ounces with annualised cost increases well below inflation, acredible result that could have been much better had it not been for the113,000 tonnes of lost production (valued at R73 million) due to six Section 54stoppages imposed on Kroondal by the DMR in the quarter. In Zimbabwe, Mimosa's strong production record continued uninterrupted whilecosts were maintained below $800 PGM ounce for the second consecutive quarter. The combined operational efforts at Kroondal and Mimosa contributed to thecompany increasing its cash levels slightly to $174 million on an attributablebasis, despite the Dollar metal basket price reducing during the quarter by 4%. During the quarter work on fulfilling the conditions precedent to the sale ofthe Everest mine to Northam, first announced on 10 February 2015, alsocontinued and Part A of the sale become unconditional on 22 April 2015 with theresult that Aquarius is entitled to receive the Part A proceeds of R400 millionon 26 June 2015. A critical work stream during the quarter entailed the three platinum producersin Zimbabwe continuing their engagement with the Government of Zimbabwe aimedat resolving the 15% royalty on the export of unrefined platinum which wasintroduced in January 2015. Although not yet resolved Aquarius is satisfiedwith progress made to date and remain optimistic that the matter will beresolved in due course. Management's focus in the short term will remain consistently on maintainingsafety, production and cost discipline, a view informed by our assessment thatat a macro level there is little suggesting that Dollar metal prices maystrengthen materially in the short term. Production by mine Quarter endedPGMs (4E) Mar 2015 Dec 2014 % Change Mar 2014 % Change Kroondal 107,089 111,115 (4) 107,818 (1) Mimosa 57,391 60,842 (6) 51,907 11 Platinum Mile 2,552 2,996 (15) 289 783 Total 167,032 174,953 (5) 160,014 4 Production by mine attributable to Aquarius (Operating mines) Quarter endedPGMs (4E) Mar 2015 Dec 2014 % Change Mar 2014 % Change Kroondal 53,544 55,557 (4) 53,909 (1) Mimosa 28,696 30,421 (6) 25,954 11 Platinum Mile 2,552 2,996 (15) 289 783 Total 84,792 88,974 (5) 80,152 6 Aquarius Group quarterly attributable production (PGM ounces) to 31 March 2015 See www.aquariusplatinum.com for graph Market Summary After an initial rise at the start of January, the price of platinum continuedits recent downward trend falling to its lowest level in over 5 years, endingthe quarter at $1,141 per ounce (down 6%). Palladium also struggled across thequarter, weighed down by a weak end to March which saw the metal finish 8%lower over the period closing at $736 per ounce. More recently, Platinum imports into China fell by 58% year on year to 91.2kozacross the last week of March, the weakest since November 2008, impacted inparticular by a lack of demand for jewellery from China. Given the weakness inChina's recent trade data and the weak volumes on the Shanghai Gold Exchange,the near term looks uncertain for platinum, but in the longer term demandoutside of the jewellery sector should provide support for prices. Gold pricesfinished the quarter marginally higher after rallying throughout January tohighs of $1,300 per ounce, however a sharp fall in February saw the metal closeonly 0.2% higher over the quarter at $1,184 per ounce. Palladium along with the rest of the PGM complex suffered as evident from thelatest weekly import data - Palladium imports fell 54% year on year to 33.2kozin the last week of March, the lowest since January 2009. Palladium importshave trended lower since the middle of last year as auto sales growth slowed,falling 0.2% in February year on year, declining for the first time sinceFebruary 2013. The precious metal did however form a small rally during theperiod climbing to $829 per ounce by early March, however this was notsustained moving back into negative territory. The average Rand-Dollar exchange rate weakened during the quarter by 5% fromR11.53 to R12.14. Since then, the Rand has weakened further 1% in the firsttwo weeks of April, and trending around a level of R12.2. 12-month individual PGM prices to March 2015 (US$/oz) 12-month PGM basket prices to March 2015 (US$ and ZAR per PGM basket ounce) 12-month Rand-Dollar exchange rate to March 2015 (ZAR/US$) See www.aquariusplatinum.com for graph Average PGM basket prices achieved at Aquarius operations Quarter endedUS$ per PGM ounce (4E) Mar 2015 Dec 2014 % Change Mar 2014 % Change Kroondal 1,062 1,090 (3) 1,179 (10) Mimosa 1,036 1,100 (7) 1,112 (7) Platinum Mile 1,039 1,090 (5) 1,179 (12) Weighted Avg. 1,053 1,097 (4) 1,157 (9) Financials Aquarius recorded an on-mine EBITDA profit of $4.4 million from controlledentities for the quarter ended 31 March 2015, marginally higher compared to theDecember 2014 quarter. This was despite a 5% reduction in production in theMarch quarter, a shorter production quarter due to the seasonal holidays.Compared to the pcp (March 2014) EBITDA was adversely impacted by $6 millionadverse negative sales adjustments. The result reflects the material impactprice decreases have on cash flows and results in the present low PGM priceenvironment. Aquarius recorded a consolidated accounting net loss after tax(IFRS) of $8 million for the quarter. Profit & Production Summary March 2015 Quarter Aquarius JV Total Consolidation Aquarius operations entities adjustment Group Mine EBITDA $4.4M $8M $12.4M ($8M) $4.4M Revenue $50.2M $32M $82.2M ($32M) $50.2M Cost of sales ($51.2M) ($29M) ($80.2M) $29M ($51.2M) Net profit/(loss) ($6.3M) ($1.8M) ($8.1M) - ($8.1M)after tax PGM ozs production 56,096 28,696 84,792 - 84,792 Revenue was 2% lower quarter on quarter on lower production (due to a shorterproduction quarter) and lower prices. Compared to the pcp, revenue was $10million lower despite an increase in production due to $6 million adverse salesadjustments caused by decreasing prices. In Rand terms, PGM prices were 1%lower compared to the pcp and 9% lower in Dollar terms due to a weaker Randwhich depreciated 8% compared to the pcp. Group production for the quarter was 6% higher compared to the pcp and remainswithin guidance for the year. On a quarter on quarter comparison, productionwas 5% lower due to the March quarter having less working days due to seasonalholidays. The Kroondal mine continued to excel maintaining production in excessof 105,000 PGM ounces (50% attributable to Aquarius) by drawing from stockpileto mitigate lower production shifts due to the Christmas holiday period.Production at joint venture entity Mimosa remained strong up 10% compared tothe pcp. Production at PlatMile which resumed in July 2014 and yet to achievesteady state production was down 15% in the quarter because of plannedmaintenance. Total cost of sales of $51 million was 7% lower compared to the pcp, despite a6% increase in production, due to a 8% weakening in the Rand/Dollar exchangerate. In Rand terms, total cost of sales was 1% higher compared to the pcp. Kroondal's unit costs for the nine months to 31 March 2015 remain withininflationary targets having increased 1% compared to the pcp. For the quarterunder review, Kroondal's cash costs per ounce in Rand terms increased 7%quarter on quarter but only 2% in Dollar terms due to the weaker Rand. Thisincrease in costs was driven primarily by lower production than the recordDecember quarter, resulting in (as previously guided) increase in reportablecash costs from the treatment of the ore stock pile during the DecemberChristmas break. The good production performance at Kroondal was achievednotwithstanding the mine encountering a number of operational challenges. Mimosa's unit costs of $799 per PGM ounce for the nine months to 31 March 2015were 8% lower compared to the pcp in line with efficiency initiativesintroduced during the financial year. For the quarter under review, cash costsper PGM ounce were $799, a 2% increase quarter on quarter. The 2% increase inunit costs was due to reduced PGM production (6%) as a result of planned plantmaintenance and a shorter production quarter due to the Christmas holidays.These challenges notwithstanding Mimosa's production levels continue to exceedcompany guidance. Administrative costs of $1.4 million (of which $0.2 million was non-cash) arein line with previous quarters, maintaining cost reduction initiativespreviously implemented. Depreciation and amortisation for the quarter of $4.7million was lower due to an increased resource base resulting from theextension of Kroondal's mine life, as previously announced. Finance costsinclude interest paid on borrowings of $1.4 million, non-cash interestaccretion on convertible bonds of $1.2 million and the unwinding of therehabilitation provision of $1.1 million. Finance costs for the quarter were46% lower compared to the pcp following the $172.6 million bond buy back in May2014. Net operating cash outflow for the quarter of $4 million comprised $52 millioninflow from sales, $58 million paid to suppliers and $2 million interestreceived. Development and capital expenditure for the quarter was $5 million.Net financing cash inflows of $8 million related to proceeds from AQPSA financeleases. The Group's cash balance of $161 million at the end of the quarter was held asfollows: AQP $108 million AQPSA $48 million ASACS $1 million Platmile $2 million Ridge Mining $2 million Total $161 million* * Mimosa and Blue Ridge (in which Aquarius has a 50% equity interest) areaccounted for using the equity method. Cash held in these two entities at 31March 2015 was $26 million and does not form part of the above cash balances.Under the previous method of proportionately consolidating its investment inMimosa and Blue Ridge, 50% of this cash ($13 million) would have been includedin Aquarius' Group cash balance. Joint venture entities Mimosa Mimosa recorded an EBITDA profit attributable to Aquarius of $8 million and anet profit before tax of $1.8 million for the quarter. The result was achievedon production of 28,696 PGM ounces attributable to Aquarius. Mimosa is in discussions with the authorities to have royalties deemeddeductible for tax purposes. The tax liability relating to the non-deductibility of royalties as at March 2015 (on a 100% basis) was $7.7m ($4.2mprior year and $3.5m current year). The liability has been accrued in thefinancials awaiting the finalisation of negotiations with the authorities andany legislative amendments. Cash held in Mimosa at 31 March 2015 was $25 million (100%). Blue Ridge and Sheba's Ridge Blue Ridge and Sheba's Ridge recorded a net loss after tax of $0.2 million forthe quarter representing care and maintenance costs incurred. (The segment note provided on page 10 details the income statement for eachoperating division of the Aquarius Group.) Consolidated Income Statement Quarter ended 31 March 2015 $'000 Nine Quarter months Financial Year Ended Ended Ended Note 31/03/15* 31/03/15* 30/06/14 PGM production - Kroondal & 56,096 172,607 220,961Platmile PGM production - Mimosa 28,696 88,016 110,681 Total PGM production 84,792 260,623 331,642 Revenue (i) 50,241 163,504 233,056 Cost of sales (including D&A) (ii) (51,203) (160,929) (231,158) Gross profit/(loss) (962) 2,575 1,898 Other income 41 151 174 Administrative costs (iii) (1,417) (4,655) (7,353) Foreign exchange gain/(loss) (iv) 164 (239) 1,843 Finance costs (v) (3,783) (11,597) (28,091) Impairment losses (253) (827) (3,084) Profit on repurchase of bonds - - 10,925 Profit on sale of assets 13 1,139 653 Closure, transition and rehabilitation - - 5,342reversal/(cost) Share of (loss)/profit from joint (vi) (1,783) (50,970) 5,055venture entities Loss before income tax (7,980) (64,423) (12,638) Income tax expense (vii) (122) (415) (544) Net loss (8,102) (64,838) (13,182) Net loss is attributable to: Equity holders of Aquarius Platinum (8,069) (64,900) (13,048)Limited Non-controlling interests (viii) (33) 62 (134) (8,102) (64,838) (13,182) Earnings per share Basic loss per share (cps) (0.49) (4.42) (1.38) * Unaudited Notes on the March 2015 Consolidated Income Statement Revenue for the quarter of $50 million was 2% lower than the previous quarterdue to lower production and $2 million negative sales adjustments Cost of sales of $51 million for the quarter was 4% lower in line with lowerproduction (down 5%) compared to the previous quarter December 2014 Administrative costs for the quarter of $1.4 million are in line with previousperiods in the current financial year. Costs for the nine months ended March2015 includes $0.6 million of non-cash expenses The foreign exchange gain is attributable to revaluation adjustments on cashbalances held in Rand, 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 $1.4 million, non-cashinterest accretion on convertible bonds of $1.2 million and the unwinding ofthe rehabilitation provision of $1.1 million Represents share of (loss)/profit of Mimosa and Blue Ridge, the joint ventureentities. Cumulative share of (loss)/profit from joint venture entitiescomprises operating profit of $4 million offset by impairment of Blue Ridge/Sheba's Ridge of $26 million and discounting of the RBZ receivable of $28.5million. An accrual of $3.8 million has been taken up for income tax payablepending conclusion of discussions with the authorities on the tax deductibilityof mine royalties. Income tax expense consists of AQPSA deferred tax and royalties Non-controlling interests reflect the 8.3% non-controlling interest of PlatinumMile Resources (Pty) Ltd Consolidated Statement of Cash Flows Quarter ended 31 March 2015 $'000 Quarter Nine months Financial Year Ended Ended ended Note 31/03/15* 31/03/15* 30/06/14 Net operating cash (outflow)/inflow (i) (4,075) 1,948 21,092 Net investing cash (outflow)/inflow (ii) (4,870) 9,885 (27,224) Net financing cash inflow (iii) 8,393 22,009 62,271 Net decrease/(increase) in cash held (552) 33,842 56,139 Opening cash balance 164,211 136,820 77,773 Exchange rate movement on cash (3,040) (10,043) 2,908 Closing cash balance (iv) 160,619 160,619 136,820 * Unaudited Notes on the March 2015 Consolidated Statement of Cash Flows Net operating cash flow for the quarter includes $52 million inflow from sales,$58 million paid to suppliers and $2 million interest received Comprises $5 million of development and plant & equipment expenditure at AQPSA Consists of proceeds from AQPSA finance leases Mimosa and Blue Ridge (in which Aquarius has a 50% equity interest) areaccounted for using the equity method Cash held in these two entities at 31 March 2015 was $26 million and does notform part of the above cash balances. Under the previous method ofproportionately consolidating its investment in Mimosa and Blue Ridge, 50% ofthis cash would have been included in the Aquarius' Group cash balance Consolidated Balance Sheet At 31 March 2015 $'000 As at As at Note 31/03/15* 30/06/14 Assets Cash and cash equivalents 160,619 136,820 Current receivables (i) 29,125 30,104 Other current assets (ii) 12,505 15,246 Investments in joint venture entities (iii) 151,633 230,410 Mining assets (iv) 191,310 209,211 Intangible asset (v) 46,799 54,499 Other non-current assets (vi) 40,450 41,185 Total assets 632,441 717,475 Liabilities Current liabilities (vii) 157,354 40,123 Non-current interest-bearing liabilities (viii) 1,651 118,919 Other non-current liabilities (ix) 78,762 84,665 Total liabilities 237,767 243,707 Net assets 394,674 473,768 Equity Issued capital 75,134 73,216 Treasury shares (25,872) (26,239) Reserves 765,053 781,692 Accumulated losses (425,350) (360,450) Total equity attributable to equity holders of Aquarius Platinum Limited 388,965 468,219 Non-controlling interests (x) 5,709 5,549 Total equity 394,674 473,768 * Unaudited Notes on the March 2015 Consolidated Balance Sheet Reflects debtors receivable on PGM concentrate sales Reflects PGM concentrate inventory, consumables, stores and critical spares Represents the investment in Mimosa, Blue Ridge and Sheba's Ridge. Reduction ininvestments in joint venture entities reflects impairment of Blue Ridge/Sheba'sRidge of $26 million and discounting of the RBZ receivable of $28.5 million asreported in December 2014. 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 Includes the recoverable portion of the rehabilitation provision from AngloPlatinum of $9 million, carrying amount of receivable from Blue Ridge $5million, investments in rehabilitation trusts of $14 million and deferred taxassets of $12 million Includes convertible bonds of $121 million, trade creditors of $27 million,AQPSA finance leases of $2 million, tax payable of $3 million and annual leaveprovision of $4 million Comprises AQPSA equipment leases of $2 million Includes deferred tax liabilities of $16 million, provision for closure costsof $61 million and other payables $2 million Reflects the 8.3% non-controlling interest of Platinum Mile Resources (Pty) Ltd Segment Note Quarter ended 31 March 2015 $'000 Kroondal Marikana Everest Mimosa Plat CTRP Mile Revenue 46,895 53 23 31,959 2,007 17 Cost of sales - mining, processing and administration (43,640) (287) (553) (23,557) (2,024) (4) - depreciation and amortisation (4,934) (13) 950 (5,258) (648) (47) Gross profit/(loss) (1,679) (247) 420 3,144 (665) (34) Other income - - (329) - - Administrative costs - - - - - - Foreign exchange gain/(loss) 2,316 - - (4) 110 - Finance costs - - - - - - Impairment losses - - - - - - Profit on sale of assets - - - - - - Community share ownership trust - - - (1,050) - - Share of loss from joint venture entities - - - - - - Profit/(loss) before income tax 637 (247) 420 1,761 (555) (34) Income tax (expense)/benefit - - - - - - Net profit/(loss) from ordinary activities 637 (247) 420 1,761 (555) (34) On-mine EBITDA 5,180 (266) (534) 7,996 79 (4) Blue Corporate/ Segment Reconciliation Consolidated Ridge Unallocated Result to Consolidated Information Revenue 9 1,246 82,209 (31,968) 50,241 Cost of sales - mining, processing and administration (183) - (70,248) 23,740 (46,508) - depreciation and amortisation - (3) (9,953) 5,258 (4,695) Gross profit/(loss) (174) 1,243 2,008 (2,970) (962) Other income 4 37 (288) 329 41 Administrative costs - (1,446) (1,446) 29 (1,417) Foreign exchange gain/(loss) - (2,259) 163 1 164 Finance costs - (4,691) (4,691) 908 (3,783) Impairment losses - (253) (253) - (253) Profit on sale of assets - 13 13 - 13 Community share ownership trust - - (1,050) 1,050 - Share of loss from joint venture entities - - - (1,783) (1,783) Profit/(loss) before income tax (170) (7,356) (5,544) (2,436) (7,980) Income tax (expense)/benefit - (2,558) (2,558) 2,436 (122) Net profit/(loss) from ordinary activities (170) (9,914) (8,102) - (8,102) On-mine EBITDA (179) - 12,272 (7,825) 4,447 Income tax expense for the nine months to March 2015 includes a $1.8m accrualfor non-deductibility of royalties at Mimosa. 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 DIIR per 200,000 man hours deteriorated slightly to0.65 from 0,62 Production decreased to 1,576,000 tonnes from 1,807,000 tonnes predominantlydue to section 54 stoppages and the less production shifts due to the year-endholidays Head grade improved from 2.41 g/t to 2.46 g/t Recoveries improved by 1% to 80% Volumes processed decreased to 1,688,000 tonnes, down 7% quarter-on-quarter Stockpiles at the end of the quarter totalled approximately 47,000 tonnes, down113,000 tonnes PGM production decreased by 4% to 107,089 PGM ounces Revenue increased by 4% to R1,093 million quarter-on-quarter due to weakeningof the exchange rate Mining cash costs increased by 11% to R606 per tonne, due to lower volumes andstock pile milling during the Christmas holidays. Unit cost per PGM ounce onlyincreased by 7% to R9,560 per PGM ounce due to improved quality Kroondal's cash margin for the period increased from 5% to 6% due to animproved Rand basket price Kroondal: Production, Cash Cost and Price Analysis See www.aquariusplatinum.com for graph Commentary There were no fatalities during the quarter. The number of injuries decreasedfrom 29 to 16 quarter on quarter and the 12 Rolling DIIR Rate deteriorated from0.62 to 0.65. The deterioration in safety took place despite a focused safetycampaign throughout the quarter. Safety campaigns were re-energised in January2015. During the quarter, six Section 54 instructions were issued resulting inapproximately 113,000 tonnes of lost production. Tonnes mined for the quarter was 13% lower at 1,676,000 tonnes due primarily tothe six Section 54 instructions issued by the DMR. In spite of these factors,Kroondal achieved its ninth consecutive +105,000 PGM production quarter. Operations at K6 Shaft remained challenging due to poor ground whichnecessitated rehabilitation in order to get the belt infrastructure installedas well as high incidence of poor ground conditions in the stoping panels.Kwezi shaft experienced poor ground conditions which resulted in all ends beingreduced for safety. Simunye shaft replaced part of its old generation fleetload haul dumpers, as well as engineering organisational changes. Efficienciescontinue to be pursued with the critical focus being the management of the TMMfleet. Bambanani is scheduled to have its chairlift commissioned in Q4 inorder to reduce face time lost due to long travelling to the working places.Kopaneng shaft experienced some poor ground challenges in the decline as wellas the western part of the mine, which resulted in some ventilation challenges. Various trials to mitigate the treating of iron-rich ultramafic pegmatite(IRUP) ore being mined at Kwezi has resulted in potential solutions comprisingblending the material, changing reagents and increasing the floatationretention time in the process plants. Recoveries improved by 1% quarter onquarter. Further work will continue in Q4 2015. A recognition agreement was concluded with AMCU in January 2015, negotiationsof which were conducted in a cordial manner. P&SA2 at Marikana (Aquarius Platinum - 50%) There has been no change to the Marikana operations which remain on care andmaintenance until further notice. Everest Mine There has been no change to the Everest operations which remains subject to theconclusion of a sale contract. The conditions precedent to Part A of the saleagreement were fulfilled on 22 April 2015 which results in Aquarius beingentitled to the Part A proceeds of R400 million by 26 June 2015. The fulfilmentof the additional condition required to render Part B unconditional, beingSection 11 approval by the DMR, is expected to materialise before the end ofthe 2015 calendar year following which Aquarius would be entitled to a furtherR50 million. 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 9,560 7,835 7,642 Capital expenditure Kroondal (R'000 unless otherwise stated) Total Per 4E oz Ongoing establishment of infrastructure 69,854 652 Project capital (K6 shaft) 4,853 45 Mobile equipment 40,866 382 Total 115,573 1,079 Kroondal mine: reconciliation of cash costs per 4E ounce Cost per 4E ounce (Rand) Q2 2015 Q3 2015 Total operating expenditure 10,213 10,106 Less: Ongoing capital expenditure & mobile equipment (1,195) (1,034) Project capex (K6 shaft) (59) (45) Transferred (to)/from stockpile (34) 533 On mine cash costs 8,925 9,560 MIMOSA INVESTMENTS (Aquarius Platinum - 50%) Mimosa Platinum Mine 12-month rolling average DIIR was constant at 0.05 per 200,000 man hours worked Production decreased by 8% to 610,929 tonnes as result of lower operating days(82 days) in the third quarter compared to 88 days worked in the 2nd quarter.This was due to 4 public holidays in the third quarter as well as a shorterFebruary month (2 days less) Head grade improved slightly to 3.65 g/t Recoveries improved to 78.7% from 78.3% in the second quarter Volumes processed deteriorated by 7% to 621,586 tonnes as result of lowermilling days (81 days) in the third quarter compared to 84 days worked in the2nd quarter. The milling days were affected by a shorter February month as wellas planned maintenance shut downs in the third quarter Stockpile at the end of the quarter was approximately 170,600 tonnes PGM production deteriorated by 6% to 57,391 PGM ounces in line with reducedmilled volumes as explained above Revenue was the same as the previous quarter Mining cash costs per tonne increased to $75 in line with reduced milledtonnage as explained above Stay-in-business capital expenditure was $119 per PGM ounce for the quarter Mimosa: Production, Cash Cost and Price Analysis See www.aquariusplatinum.com for graph Commentary Safety, Health and Environment No fatalities or LTIs occurred at Mimosa during the quarter. Operations The Mimosa mine operated very well during the quarter, enjoying cordialindustrial relations and meeting most of its production targets. Mimosacontinues to implement cost containment initiatives and have managed to operatewithin budget. Regulatory and fiscal environment As reported in the previous quarter, the following regulatory issues have asignificant bearing on the operations of the mine: Indigenisation Mimosa continues to interact with the Ministry of Indigenization and Ministryof Mines to work towards a sustainable solution. 15% Export Levy on un-beneficiated PGMs Discussions with the authorities continued during the quarter to find a wayforward with regards to this issue. The company has not yet made provision forthis levy in the financials. If the levy were to be implemented, it would havea significant impact on the financial position of the company. Royalties The company is continuing engagements with the authorities to have royaltiesdeductible for tax purposes. The tax liability relating to thenon-deductibility of royalties as at March 2015 (on a 100% basis) was $7.7m($4.2 m prior year and $3.5m current year). The liability has been accrued inthe financials awaiting the finalisation of negotiations with the authoritiesand any legislative amendments. Operating cash costs per ounce Unit cash cost per PGM ounce (before by-product credits) was 2% higher comparedto the previous quarter mainly as a result of decreased production. 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 799 754 566 Capital expenditure The total capital expenditure for the second quarter amounted to $7 million.Expenditure was mainly incurred on mobile equipment, drill rigs and LHD,conveyor belt extension and down dip development. TAILINGS OPERATION Platinum Mile (Aquarius Platinum - 91.7%) Material processed decreased 9% to 1.2 million tonnes Head grade increased to 0.59 g/t from 0.55 - quarter on quarter Recoveries decreased to 12%, down from 13% quarter on quarter Production decreased to 2,552 PGM ounces as explained below Cash costs increased to R9,327 per PGM ounce Revenue was lower at R25 million for the quarter Cash margin for the quarter was 3%, down from 14% in the previous quarter Commentary Platinum Mile The results for the quarter were lower than those of the previous quarterbecause of planned maintenance resulting in operational downtime. AngloPlatinum has as yet not started their tailings re-treatment operations andtherefore the opportunity was utilised to do critical maintenance. It isanticipated that the AngloPlatinum tailings project should increase feed volumes by some 275,000 tonnesof Merensky tailings material per month. Once full production ramp-up isachieved the operation should increase production substantially in relativeterms. 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 9,327 7,851 7,311 Chromite Tailings Retreatment Plant (CTRP) (Aquarius Platinum - 50%) There has been no change to the CTRP operations which remain on care andmaintenance until further notice. CORPORATE MATTERS Everest Sale (announcement date 10 February 2015 / 3 March 2015) As announced on 23 April 2015 the conditions precedent in respect of the Part Adisposal process of the sale of Everest were fulfilled on 22 April 2015. Part Aof the disposal process is now unconditional and the consideration of R400million is due and payable by Northam on 26 June 2015. Part B of the disposal process is subject to the consent of the Minister ofMineral Resources in terms of section 11 of the Mineral and Petroleum ResourcesDevelopment Act. The section 11 application has been submitted to theDepartment of Mineral Resources. Should the Ministerial Consent not be obtained the first part of the Disposalwill not be unwound. Zimbabwe Royalty Update As previously announced, in 2013 the Government of Zimbabwe proposed an exporttax on unrefined platinum, with a view to encouraging platinum mining companiesto invest in smelting and refining capacity in Zimbabwe. This export tax, at arate of 15% of revenue, was deferred to take effect from 1 January 2015. In the2015 National Budget statement made in December 2014, the Minister of Financeannounced that the Government had deferred the export tax on un-beneficiatedplatinum until 1 January 2017. However, the 2015 Finance Bill, which wasgazetted on 9 January 2015, does not provide for the deferral of the tax. Theplatinum mining companies, represented by the Chamber of Mines, are in theprocess of engagement with the Government of Zimbabwe to resolve the matter.Although the matter has not yet been resolved substantial progress was madeduring the quarter and Aquarius and Mimosa are hopeful that the matter will beresolved in due course. More information on all corporate matters can be found atwww.aquariusplatinum.com Statistical Information: Kroondal P&SA1 See www.aquariusplatinum.com for table Statistical Information: Mimosa See www.aquariusplatinum.com for table Statistical Information: Platinum Mile See www.aquariusplatinum.com for table Aquarius Platinum LimitedIncorporated in Bermuda Exempt company number 26290 Board of Directors Sir Nigel Rudd 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) Tim Freshwater Edward HaslamKofi Morna Sir Nigel Rudd Remuneration Committee Edward Haslam (Chairman) David Dix Zwelakhe Mankazana Sir Nigel Rudd Nomination Committee Sonja De Bruyn Sebotsa (Chairman) Tim Freshwater Edward Haslam Kofi Morna Willi Boehm Chief Operating OfficerRobert Schroder Company Secretary Willi Boehm AQPSA Management Robert Schroder Managing Director Jean Nel Executive Director Benjamin Gaseemelwe Acting General Manager: Kroondal Mimosa Mine Management Winston Chitando Chairman Peter Chimboza Resident Director Fungai Makoni Managing Director Platinum Mile Management Richard Atkinson Managing Director Paul Swart Financial Director Issued Capital At 31 March 2015, the Company had on issue: 1,502,695,183 fully paid commonshares. Substantial Shareholders 31 March 2015 Number of Shares Percentage HSBC Custody Nominees (Australia) Limited 107,881,143 7.18 JP Morgan Nominees Australia Limited 55,479,748 3.69 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) Broker (ASX) Sponsor (JSE) Barclays Rand Merchant Bank Euroz Securities (A division of FirstRand Bank5 The North Level 18 Alluvion Limited)Colonnade 58 Mounts Bay Road, 1 Merchant Place Perth WA 6000 Cnr of Rivonia Rd and FredmanCanary Wharf Telephone: +61 (0) 8 Drive, Sandton 2196 9488 1400 Johannesburg, South AfricaLondon E14 4BB Tel: +44 (0) 20 76232323 Telephone: +44 (0)207628 1000 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 2848Facsimile: +27 (0) 12 001 2070 Aquarius Platinum Corporate Services Pty Ltd 100% Owned (Incorporated in Australia) ACN 094 425 555 Level 1, Suite 6, South Point, 100 Mill Point Road, South Perth WA 6151,Australia Postal Address: PO Box 485, South Perth, WA 6151, 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 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 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 JSE Limited 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 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 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 PlatMile Platinum Mile Resources (Pty) Ltd 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 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. 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