AQP.L Regulatory News (AQP)

AQUARIUS PLATINUM LIMITED ASX, LSE & JSE HALF-YEAR RESULTS TO 31 DECEMBER 2014 Key Points: Financial Revenue of $113 million comparable to prior corresponding period (pcp) Group mine EBITDA higher at $18 million (H1 2014: $10 million) due to higherproduction and improved cost management Share of profit from JV entities: EBITDA $27 million JV entities contributed a net loss of $49 million after one off non-cash writedowns of $55 million Headline loss (before exceptional charges) of $30 million at 2.07 cents pershare (H1 2014: loss of $22 million at 4.58 cents per share) Accounting net loss after tax (to IFRS) of $57 million (3.93 cents per share)(H1 2014: loss of $24 million at 2.89 cents per share) Mine operating net cash flow increased by $5 million to a $10 million inflow(H1 2014: inflow of $5 million) Group cash balance at 31 December 2014 of $164 million, with a further $8million attributable to Aquarius held in JV entities Key Points: Operational Significant improvement in Kroondal's safety performance with LTIFR improvingto 0.62 from 0.99 in the pcp Mimosa's LTIFR of 0.05 makes it the safest underground Platinum mine insouthern Africa Group attributable production increased by 5% to 175,831 PGM ounces (H1 2014:168,014 PGM ounces) Kroondal consistently producing at capacity levels with 8 consecutive quartersabove 105,000 PGM ounces Kroondal unit costs well controlled increasing by 1% in Rand terms anddecreasing 7% in Dollar terms due to a weaker Rand Production in H1 ahead of guidance Mimosa performed strongly again, continuing to produce at capacity with arecord H1 production Mimosa unit costs down 7% compared to the pcp reflecting benefits of therationalisation program implemented in FY2014 Mimosa PGM Dollar price remained weak with a marginal 2% increase compared tothe pcp Mimosa Q2 production of >60,000 PGM ounces (50% attributable to Aquarius)represents the highest ever quarterly production by Mimosa PlatMile operation continues to build up production following the end of thestrike in August 2014 The average US Dollar PGM basket price of $1,165 was in line with the pcp The average Rand basket price increased by 9% compared to the pcp due to aweaker Rand The Rand weakened by 9% on average against the US Dollar compared to the pcp Key Points: Strategic Disposal of the Kruidfontein prospecting rights for $27 million was concludedin the half-year A recognition agreement has been concluded with AMCU at Kroondal Disposal of Everest mine for R450 million in cash - agreement signed 10February 2015 Commenting on the results, Jean Nel, CEO of Aquarius Platinum, said: The Group's stated focus on operational improvements in the face of a verydifficult operating, labour, political and social environment continued toyield results in the six months to December 2014. The six months under reviewwas characterised by continued operational progress, improved safetyperformance, reduced costs and record production for the Group. In addition toexcellent operating performances by both Kroondal and Mimosa, our incrementalprojects progressed satisfactorily during the half-year and the Group's balancesheet was strengthened following the sale of non-core assets. We continue toexpect a difficult operating and metal price environment in the short termwhich directs our focus on operational efficiencies and responsible capitalstewardship. Financial results: Half-Year to 31 December 2014 Aquarius recorded a consolidated accounting net loss after tax (IFRS) of $57million (the Result) for the half-year (3.93 cents per share). The resultincluded the following one off non-cash charges arising in joint ventureentities: An impairment of the carrying value of Blue Ridge/Sheba's Ridge investment of$26 million following termination of the agreement to sell the Company'sindirect interests in Blue Ridge Platinum (Pty) Ltd and Sheba's Ridge Platinum(Pty) Ltd Discounting of the RBZ receivable due to Mimosa by $28.5 million. EBITDA from controlled entities was $18 million, an $8 million (83%) increasefrom the pcp. The increase in EBITDA was driven by higher Rand basket prices,increased production and continued costs discipline. Production attributable toAquarius increased 5% to 175,831 PGM ounces. Profit & Production Summary Aquarius JV Total Consolidation Aquarius operations entities adjustment Group Mine EBITDA $18M $27M $45M ($27M) $18M Revenue $113M $73M $186M ($73M) $113M Cost of sales ($110M) ($55M) ($165M) $55M ($110M) Net profit/(loss) ($8M) ($49M) * ($57M) - ($57M)after tax PGM ozs production 116,511 59,320 175,831 - 175,831 * Includes $28 million discounting of RBZ receivable and $26 million impairmentof Blue Ridge and Sheba's Ridge Revenue (PGM sales, interest) for the half-year of $113 million was in linewith the pcp with increased production offset by a $7 million negative salesadjustment. Dollar prices remained unchanged to the pcp at $1,165 per PGMounce. In Rand terms, the PGM basket increased by 9% directly as a result of aweaker Rand which also decreased 9% to R10.94, compared to the pcp. InZimbabwe, PGM prices were similarly subdued recording a 2% increase to $1,164compared to the pcp. Total cash cost of production was $97 million, down $7 million despite a 3%increase in production at Kroondal. This was primarily due to good costcontrol and the weakening Rand which resulted in lower Dollar costs.Significantly, Kroondal recorded its eighth consecutive +105,000 PGM ounceproduction quarter, a record for the mine. This is particularly pleasing giventhe ongoing difficult operating conditions. Cost per PGM ounce in Dollar terms in South Africa decreased 7% to $870 butincreased 1% in Rand terms due to an 8% weakening in the Rand/US Dollarexchange rate. In Zimbabwe the cash cost per PGM ounce was $798, a 7%reduction demonstrating the impact of the rationalisation program completed atthe mine in FY2014. Maintaining operating unit cost increases well withininflationary targets will continue to be a point of focus particularly in theongoing low metal price environment. Exchange rate movements continued to have a volatile effect on earnings. TheRand weakened significantly to average R10.94 to the US Dollar compared toR10.06 in the pcp. During the half-year, Aquarius recorded net foreign exchangelosses of $0.4 million comprising gains on sales adjustments and revaluation ofcash, intercompany loans and pipeline debtors. Administration costs of $3 million were down $1 million. Depreciation andamortisation for the year of $13 million was lower despite increased productiondue to an increased resource base resulting from the extension of the Kroondalmine life. Finance costs include $3 million interest on convertible bonds and bankborrowings, $2 million of non-cash interest arising from the unwinding of thedebt portion of the convertible bond and $3 million in non-cash interestarising from the unwinding of the net present value of the rehabilitationprovisions of AQPSA. Cash balances Group cash at 31 December 2014 was $164 million, up $27 million from June 2014.The increase in cash was mainly attributable to $27 million of proceedsreceived on the sale of Kruidfontein. In addition to this, the Group paid $12million to fund its capital expenditure program, paid $3 million in interestand received $15 million of dividends from Mimosa. Cash held at Mimosa and Blue Ridge which is no longer classified as group cashdue to the adoption of equity accounting was $16 million (100% basis). Sale of assets Kruidfontein mining rights were sold for $27 million. Aquarius retained thegross proceeds of the sale and satisfied settlement of the original vendorsrights to 40% of the proceeds via the issue of 36,505,657 shares in Aquarius.An accounting profit of $1.2 million was recorded after a non-cash adjustmentof $13 million resulting from the reversal of foreign exchange translationreserve following the sale of the entity. Reconciliation of cash proceeds to accounting profit: $M Cash proceeds 26.8 Tax expense (4.3) Shares issued to original vendor (8.0) Reversal of foreign currency translation reserve (13.3)on disposal * Accounting profit on sale 1.2 * The Kruidfontein asset, being held by a South African subsidiary with a Randfunctional currency, has been translated to US dollars each month end since theoriginal date of purchase, with any exchange differences going to the foreigncurrency translation reserve (FCTR). The Rand has devalued against the USDsince the acquisition of Kruidfontein. In accordance with InternationalAccounting Standards when a foreign operation is disposed of, the cumulativeamount of foreign exchange differences contained within the Foreign CurrencyTranslation Reserve is required to be reclassified through the Group's incomestatement. Accordingly the accounting profit on sale of Kruidfontein has beenreduced by a non-cash amount of $13.3 million, reflecting the reclassificationof the cumulative amount of foreign exchange differences relating toKruidfontein up to the date of disposal. Everest Subsequent to half-year end, Aquarius announced on 10 February 2015 that it hasentered into a conditional agreement to sell its Everest mine and relatedassets to Northam Platinum Limited for an amount of R450 million subject to thefulfilment of certain conditions precedent. A detailed release is available onthe company's website. Joint venture entities Mimosa Mimosa recorded an EBITDA profit attributable to Aquarius of $27 million and anet loss before tax of $12 million. The result was achieved on production of59,320 PGM ounces attributable to Aquarius. Despite consistent production, the97% increase in EBITDA compared to the pcp was driven by higher production (up9%), lower unit costs (down 7%) and a marginally higher PGM basket price (up2%). Cash held in Mimosa at 31 December 2014 was $14 million (100%). Mimosa's financial result is provided in the Group Financials table on page 5and its operational performance is discussed under the Operating Review sectionof this announcement. RBZ receivable During the period under review the Directors have continued to assess progressof Zimbabwe's initiatives in relation to indigenisation and progress on theissue of Government backed securities to replace RBZ debt. In the case of thelatter, draft legislation has been prepared but has not yet been passed byparliament. In addition, the IMF stated in November 2014 that it requiresfurther changes to economic policy in Zimbabwe before it will supportfacilitating access to international capital markets by the Government ofZimbabwe. Having considered the above the Directors believe concluding settlement of theRBZ debt via an indigenisation transaction or the creation of treasury bills ascontemplated by the Government of Zimbabwe is now unlikely to occur withintwelve months of the balance sheet date, despite the progress initiativesunderway. Accounting standards require that non-interest bearing receivables deemed to belong term be discounted using an effective interest rate to recognise the delayin receipt of funds. The Company has attempted to determine an appropriatediscount rate, however due to the absence of ratings and public debt issues inZimbabwe this process has proven problematic. In view of the difficultyinvolved in sourcing a reliable discount rate and the difficulty in reliablyestimating the time frame to secure full settlement of the RBZ debt, Aquariushas recognised a non-cash expense of $28.5m in the share of loss from jointventures, equal to its share of the full amount of the RBZ receivable. Blue Ridge and Sheba's Ridge Blue Ridge and Sheba's Ridge recorded a net loss after tax of $29 million. Thisresult includes the $26 impairment charge as well as care and maintenance andinterest costs. On 14 October 2014, the agreement to sell the Company's indirect interests inBlue Ridge Platinum (Pty) Ltd and Sheba's Ridge Platinum (Pty) Ltd wasterminated. As a consequence the carrying amount of the Blue Ridge and Sheba'sRidge assets has been reviewed resulting in an impairment charge of $26 millionbeing included in the share of loss from joint venture entities. Group Financials by Operation Kroondal Marikana Everest Mimosa PMR PGM ounces (4E) (attributable) 111,682 - - 59,320 4,829 $M Revenue 106 - - 73 4 Cost of sales - mining, processing & (91) (1) (1) (46) (3)admin Cost of sales - depreciation & (10) - (1) (9) (1)amortisation Gross profit/(loss) 4 (1) (2) 18 (1) Administrative costs - - - - - Foreign exchange gain/(loss) 6 - - - - Finance costs - - - - - Impairment losses - - - - - Profit on sale of assets - - - - - Community share ownership trust - - - (1) - Discounting of RBZ receivable - - - (29) - Share of loss from joint venture entities - - - - - Profit/(loss) before income tax 10 (1) (2) (12) (1) Reconciliation to Ridge Corporate Total Consolidated Consolidated Information * PGM ounces (4E) - - 175,831(attributable) $M Revenue - 3 186 (73) 113 Cost of sales -mining, processing & - - (143) 47 (97)admin Cost of sales -depreciation & - - (22) 9 (13)amortisation Gross profit/(loss) - 3 21 (17) 4 Administrative costs - (3) (3) - (3) Foreign exchange - (6) - - -gain/(loss) Finance costs - (10) (10) 2 (8) Impairment losses (26) (1) (27) 26 (1) Profit on sale of - 1 1 - 1assets Community share - - (1) 1 -ownership trust Discounting of RBZ - - (29) 29 -receivable Share of loss fromjoint venture - - - (49) (49)entities Profit/(loss) before (26) (14) (47) (9) (56)income tax * In the consolidated financial statements the Mimosa and Blue Ridge operatingsegments are accounted for using the equity method. The table above provides areconciliation of the segment information to the IFRS financial statements. Aquarius Platinum Limited Consolidated Income Statement Half-Year ended 31 December 2014 $'000 Half-Year Ended Year Ended Note 31/12/14 31/12/13 30/06/14 Attributable Production (PGM Ounces) 175,831 168,014 331,642 Revenue (i) 113,263 113,173 233,056 Cost of sales (including D&A) (ii) (109,726) (120,751) (231,158) Gross profit/(loss) 3,537 (7,578) 1,898 Other income 110 72 174 Administrative costs (iii) (3,238) (4,336) (7,353) Foreign exchange (loss)/gain (iv) (403) 2,731 1,843 Finance costs (v) (7,814) (15,295) (28,091) Impairment losses (574) (2,487) (3,084) Profit on repurchase of bonds - - 10,925 Profit/(loss) on sale of assets 1,126 (31) 653 Closure, transition and - - 5,342rehabilitation reversal Share of (loss)/profit from joint (vi) (49,187) 166 5,055venture entities Loss before income tax (56,443) (26,758) (12,638) Income tax (expense)/benefit (293) 2,730 (544) Net loss for the period (56,736) (24,028) (13,182) Non-controlling interests 95 12 (134) Loss attributable to equity holdersof (56,831) (24,040) (13,048) Aquarius Platinum Limited Loss per share (basic - cents) (3.93) (2.89) (1.38) Notes on the Consolidated Income Statement Revenue of $113 million is comparable to the pcp despite higher production dueto $7 million of negative sales adjustments. Cost of sales were 9% lower due to a 9% weakening of the Rand compared to thepcp. In Rand terms, unit costs increased 1% per PGM ounce in South Africa. Relates to group administration costs inclusive of costs associated withbusiness development activities, regulatory compliance, legal and financialadvisory. Foreign exchange includes gains/losses on cash, intercompany loans, pipelinedebtors and sales adjustments due to the movement of the Dollar against othercurrencies. Finance costs include $3 million interest on convertible bonds and bankborrowings, $2 million of non-cash interest arising from the unwinding of thedebt portion of the convertible bond and $3 million in non-cash interestarising from the unwinding of the net present value of the rehabilitationprovisions of AQPSA. Share of (loss)/profit from joint venture entities comprises operating profitof $5 million offset by impairment of Blue Ridge/Sheba's Ridge of $26 millionand discounting of the RBZ receivable of $28.5 million. Aquarius Platinum Limited Consolidated Cash Flow Statement Half-year ended 31 December 2014 $'000 Half-year ended Year ended Note 31/12/14 31/12/13 30/06/14 Net operating cash inflow (i) 10,310 4,706 21,092 Net investing cash inflow/(outflow) (ii) 14,754 (10,989) (27,224) Net financing cash inflow (iii) 9,329 9,912 62,271 Net increase in cash held 34,393 3,629 56,139 Opening cash balance 136,820 77,773 77,773 Exchange rate movement on cash (iv) (7,002) 1,596 2,908 Closing cash balance 164,211 82,998 136,820 Notes on the Consolidated Cash Flow Statement Includes $108 million inflow from sales, $101 million paid to suppliers and $3million interest received. Includes $27 million proceeds from the sale of Kruidfontein and $12 million ofpayments for property, plant & equipment and mine development costs. Includes $3 million interest paid, $6 million proceeds from borrowings, $7million repayment of borrowings and $15 million dividends from Mimosa. Reflects movement of other currencies against the Dollar. Aquarius Platinum Limited Consolidated Balance Sheet At 31 December 2014 $'000 Half-year ended Year ended Note 31/12/14 31/12/13 30/06/14 Assets Cash assets 164,211 82,998 136,820 Current receivables (i) 27,551 22,901 30,104 Other current assets (ii) 16,590 16,704 15,246 Mining assets (iii) 198,870 211,024 209,211 Intangible asset (iv) 49,230 55,696 54,499 Investments in joint venture entities (v) 152,437 204,817 230,410 Other non-current assets (vi) 41,944 67,085 41,185 Total assets 650,833 661,225 717,475 Liabilities Current liabilities (vii) 155,287 35,822 40,123 Non-current interest-bearing liabilities (viii) 2,207 274,194 118,919 Other non-current liabilities (ix) 80,497 93,466 84,665 Total liabilities 237,991 403,482 243,707 Net assets 412,842 257,743 473,768 Equity Issued capital 75,098 24,408 73,216 Treasury shares (25,871) (27,331) (26,239) Reserves 775,186 626,417 781,692 Accumulated losses (417,281) (371,442) (360,450) Total equity attributable to equityholders 407,132 252,052 468,219of Aquarius Platinum Limited Non-controlling interests (x) 5,710 5,691 5,549 Total equity 412,842 257,743 473,768 Notes on the Consolidated Balance Sheet Reflects debtors receivable on PGM concentrate sales. Reflects PGM concentrate inventories, reef stockpiles and consumables stores. Represents mining assets, plant and equipment at Kroondal, Marikana andEverest. Includes intangibles relating to contract value acquired on the acquisition ofequity interest in Platinum Mile Resources (Pty) Ltd. Reflects investments in joint venture entities - Mimosa, Blue Ridge and Sheba'sRidge. Includes the recoverable portion of rehabilitation provision from AngloPlatinum of $9 million, receivable of $6 million representing the netrealizable value of Ridge assets, investments in rehabilitation trusts of $14million and AQPSA deferred tax asset of $13 million. Includes convertible notes due December 2015 of $120 million, creditors andother payables of $26 million, AQPSA equipment leases of $2 million, income taxpayable of $3 million and provisions of $4 million. Represents AQPSA equipment leases and now excludes convertible notes. Includes deferred tax liabilities of $16 million, provision for closure costsof $63 million and rehabilitation obligations on P&SA1 and P&SA2 structures of$2 million. Non-controlling interests reflects the 8.3% outside equity interest of PlatmileResources (Pty) Ltd. OPERATING REVIEW This section contains summarised operating reviews of each of the Company'soperations. Full operating statistics are provided on page 17 of this report,and other updates relevant to all operations can be found under CorporateMatters on page 16. In addition, further detail on each of the operations canbe obtained from the quarterly and half-year reports released by the Companythroughout the financial year, which are available on the Company's website atwww.aquariusplatinum.com. AQUARIUS PLATINUM (SOUTH AFRICA) (PTY) LTD ("AQPSA") (Aquarius Platinum - 100%) P&SA 1 at Kroondal (AQPSA - 50%) 12-month rolling average DIIR improved by 37% to 0.62 per 200,000 man hoursfrom 0.99 the previous year Production improved by 3% to 3.8 million tonnes Volumes processed increased to 3.7m tonnes Head grade deteriorated slightly to 2.39 g/t from 2.4g/t Recoveries increased by 1% to 79% PGM production increased by 3% to 223,363 PGM ounces Revenue increased by 8% to R2.3 billion compared to the previous financial yeardue improved production coupled with 9% weakening in the Rand Dollar exchangerate Mining cash costs increased by 1% to R542 per tonne (making Kroondal the mostefficient underground platinum mine in South Africa on a R/t basis), and costsper PGM ounce increased by 1% to R8,963 Kroondal's cash margin for the period rose from 10% to 13% Commentary - Kroondal Safety, Health and Environment As previously reported, regrettably a fatal incident occurred on 11 October2014 when Mr Pedro Tafulane Nhabinde, a Team Leader at Kwezi Shaft, tragicallylost his life whilst barring during safe declaration. Our deepest condolencesgo to his family and friends. The Kroondal operations ended the half-year with an improved DIIR compared tothe pcp. Operations Production for the half-year improved by 3% to 3.8 million tonnes. During thehalf-year, the Kroondal work force maintained a positive outlook with opencommunication channels on all levels. A recognition agreement was concludedwith AMCU in early January 2015. Negotiations were conducted in a maturemanner which management would like to commend AMCU for. Operating Cash Costs Cash costs at Kroondal increased by 1% to R8,963 per 4E ounce. AQPSA Operating costs per ounce (R/oz) 4E 6E 6E net of by-products (Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni&Cu) Kroondal 8,963 7,355 7,150 AQPSA Capital expenditure Stay-in-business capital expenditure was in line with the mine plan and mobileequipment replacement schedule. Kroondal (100% basis) (R'000 unless otherwise stated) Total Per 4E oz Ongoing Infrastructure Establishment 202,215 905 Project Capital (K6 shaft) 11,914 53 Mobile Equipment 48,334 216 Total 262,463 1,175 P&SA2 at Marikana (Aquarius Platinum - 50%) Given the continuing low Rand PGM basket prices, Marikana continues on care andmaintenance until further notice. Everest Mine Similarly the Everest mine remained on care and maintenance during the half-year. Everest will continue to be on care and maintenance until the CompetitionCommission approval for the sale of Everest to Northam has been obtained, atwhich time responsibility for Everest related costs will become theresponsibility of Northam. MIMOSA INVESTMENTS (Aquarius Platinum - 50%) Mimosa Platinum Mine 12-month rolling average DIIR improved to 0.05 per 200,000 man hours from 0.10in the previous corresponding half year Production increased by 5% to 1.3 million tonnes Volumes processed increased by 5% to 1.3 million tonnes Head grade was constant at 3.64g/t Recoveries improved slightly to 78% PGM production increased by 9% to 118,641 PGM ounces Revenue decreased by 26% to $146 million due to lower metal prices and salesadjustments of $7 million Mining cash costs decreased 7% to $70 per tonne, and PGM ounce cost decreasedby 7% to $798 Mimosa's cash margin for the period increased to 35% from 18% Commentary Safety, Health and Environment No fatalities occurred at Mimosa during the half-year. One lost-time injury wasreported during the period in line with improvement in DIIR. Operations The Mimosa mine operated very well during the year, enjoying cordial industrialrelations and meeting most of its production targets. Regulatory and fiscal environment During the half-year, the Zimbabwean political and regulatory environmentremained uncertain in a number of respects. Significant regulatory issues areas follows: Indigenisation Mimosa continued to interact with the Ministry of Indigenisation and Ministryof Mines to work towards a sustainable solution but to date no agreements ordefinitive terms have been agreed between Mimosa and the Ministry ofIndigenisation. 15% Export Levy on un-beneficiated PGMs In the 2015 National Budget Statement, the Minister proposed the deferment ofthe 15% export levy on un-beneficiated platinum to January 2017. However, theFinance Act (No 3) of 2014 which gives legal effect to the budget proposals didnot include the deferment of the 15% tax on un-beneficiated PGMs. Thiseffectively meant that the tax was not legally suspended, and if implemented,will have a significant impact on the company. The company is engaging theauthorities in consultation with the Chamber of Mines to seek clarity on theissue. Royalties The proposal to render royalties payable by Mimosa non-deductible for incometax purposes was implemented with effect from the year of assessment beginningon 1 January 2014, and therefore impacted Mimosa from the start of the 2014financial year on 1 July 2013. This position has remained in the 2015 nationalbudget. It has and will continue to negatively impact the company. Thefinancial impact of the non-deductibility of royalties was $4.2 million for thefinancial year to June 2014 and $2.6 million for the half-year to December2014, 50% of which is attributable to Aquarius. New Income Tax Act The proposed new Income Tax Bill was gazetted in November 2012. However, thePresident raised reservations which Parliament is still considering. The incometax rate has remained at 25% of taxable income. However, the new Finance Act(No3) 2014 introduced an Aids levy (3%) on corporate tax for mining companies.Previously, mining companies were exempt from the Aids Levy. This effectivelyincreased the corporate tax rate from 25% to 25.75%. Operating Cash Costs Operating costs decreased by 7% from the pcp mainly as a result of the impactof increased production as well as the benefits emanating from labour costsavings following the labour rationalisation exercise carried out during thelast half of prior year. Operating cash costs per ounce ($/oz) 4E 6E 4E net of by-products (Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni, Cu & Co) Mimosa 798 753 540 Capital expenditure Stay in business capital expenditure at Mimosa was $13.8 million ($117 per PGMounce), spent mainly on mobile equipment, drill rigs, LHDs, the conveyor beltextension and down dip development. TAILINGS OPERATIONS Platinum Mile (Aquarius Platinum - 91.7%) Material processed was 2,374m tonnes Recoveries were 11% Production amounted to 4,829 PGM ounces Cash costs were R7,985 per PGM ounce. Revenue was R46 million The cash margin for the period was 13% Commentary Platinum Mile: The operation resumed production after the devastating strikes in the platinumsector during August 2014. For this reason no meaningful comparison can beinferred by comparing half-year results to those of prior periods. It is expected that Anglo Platinum will start the commissioning of theirWaterval East and West dump re-treatment project. This project could result insome 280,000 tons of additional feed being treated at the operation. Currentestimates are that commissioning of this project will start during the firsthalf of 2015. The increase in feed volumes and efficiency improvements at theoperation should result in increased production yields for the rest of theensuing financial year. Operating cash costs per ounce (R/oz) 4E 6E 4E net of by-products (Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni, Cu& Co) PMR 7,985 6,832 6,323 Chromite Tailings Retreatment Plant (CTRP) (Aquarius Platinum - 50%)This operation remains on care and maintenance. CORPORATE MATTERS Changes to Board responsibilities Nicholas Sibley, who has been a Director since 1999 and Chairman since 2002retires from the Board of Aquarius with effect from 28 February 2015. SirNigel Rudd, who was appointed to the Board with effect from 1 November 2014 asChairman designate, will assume the Chairmanship. The Board of Aquarius would like to extend its deepest gratitude to Mr. Sibleyfor his many years to service to the Company. His contribution during thistenure was enormous. We wish him the very best in his retirement. More information on all corporate matters can be found atwww.aquariusplatinum.com See www.aquariusplatinum.com for statistical information Aquarius Platinum LimitedIncorporated in Bermuda Exempt company number 26290 Board of Directors Nicholas Sibley Non-executive Chairman Sir Nigel Rudd Chairman Designate 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 Haslam Kofi Morna Sir Nigel Rudd Nicholas Sibley Remuneration Committee Edward Haslam (Chairman) David Dix Zwelakhe Mankazana Sir Nigel Rudd Nicholas Sibley Nomination Committee Sonja de Bruyn Sebotsa (Chairman) Edward Haslam Tim Freshwater Kofi Morna Sir Nigel Rudd Willi Boehm Chief Operating Officer Robert Schroder Company Secretary Willi Boehm AQPSA Management Mimosa Mine Management Robert Schroder Winston ChitandoManaging Director ChairmanJeanNel PeterExecutive Director Chimboza Resident DirectorWessel PhumoGeneral Manager: Kroondal Fungai Makoni Managing Director Platinum Mile Management Richard AtkinsonManaging Director Paul SwartFinancial Director Issued capital At 31 December 2014, the Company had on issue 1,501,979,560 fully paid commonshares. Substantial shareholders 31 December 2014 Number of shares Percentage HSBC Custody Nominees (Australia) Limited 98,959,287 6.59 JP Morgan Nominees Australia Limited 59,886,092 3.99 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 Euroz Securities5 The North Level 18 AlluvionColonnade 58 Mounts Bay Road, Rand Merchant BankCanary Wharf Perth WA 6000 (A division of FirstRand BankLondon E14 4BB Telephone: +61 (0) 8 Limited)Telephone: +44 (0) 9488 1400 1 Merchant Place20 7623 2323 Cnr of Rivonia Rd and Fredman Drive, Sandton 2196 Johannesburg South Africa 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 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 pcp previous corresponding period 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 RBZ Reserve Bank of Zimbabwe 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 Zoneof the Bushveld Complex