9 Feb 2016 09:00
AQUARIUS PLATINUM LIMITED - Half-yearly Results to 31 December 2015AQUARIUS PLATINUM LIMITED - Half-yearly Results to 31 December 2015
PR Newswire
London, February 8
AQUARIUS PLATINUM LIMITED
Half-Year Results to 31 December 2015
Key Points: Financial
Revenue of $78 million down 31% compared to the prior corresponding period (pcp) due to lower PGM prices Group mine EBITDA $5 million (H1 2015: $18 million) lower despite controlled operating costs due to lower PGM prices Share of profit from JV entities: EBITDA $3 million JV entities contributed a net loss of $53 million after one off non-cash impairment of $42 million Headline loss (before exceptional charges) of $25 million at 1.69 cents per share (H1 2015: loss of $30 million at 2.07 cents per share) Accounting net loss after tax (to IFRS) of $76 million (5.12 cents per share) (H1 2015: loss of $57 million at 3.93 cents per share) Convertible bonds $125 million repaid on maturity in December 2015 Group cash balance at 31 December 2015 of $42 million, with a further $2 million attributable to Aquarius held in JV entitiesKey Points: Operational
Combined H1 production from Kroondal and Mimosa at 352,107 PGM ounces is the highest in the company’s history Continued improvement in Kroondal’s safety performance with 12 month LTIFR improving to 0.50 from 0.62 in the pcp Mimosa’s 12 month LTIFR deteriorated to 0.13 due to a fatality in August Group attributable production increased by 4% to 182,911 PGM ounces (H1 2015: 175,831 PGM ounces) Kroondal consistently producing at capacity levels with 12 consecutive quarters above 105,000 PGM ounces Kroondal unit costs well controlled increasing by 2% in Rand terms, compared to pcp, and decreasing 17% in Dollar terms due to a weaker Rand Production in H1 exceeded guidance at both Kroondal and Mimosa Mimosa performed strongly again, continuing to produce at capacity Mimosa unit costs down 2% compared to the pcp, starting to reflect the benefits of the cost savings implemented during H1 FY2015 Mimosa PGM Dollar price weakened further reducing 26% compared to the pcp Mimosa production for the half year of 60,214 PGM ounces, up 2% compared to the pcp PlatMile operation continues to build up production - much dependant on volume and grade of concentrator feed from Anglo Platinum The average US Dollar PGM basket price of $825 was 29% lower compared with the pcp The average Rand basket price decreased by 13% compared to the pcp due to a weaker Rand The Rand weakened by 23% on average against the US Dollar compared to the pcpKey Points: Strategic
Repayment of convertible bonds $125 million Completion of part B of the Everest mine saleCommenting on the results, Jean Nel, CEO of Aquarius Platinum, said:
Both Kroondal and Mimosa produced ahead of guidance and at reduced costs during the half year. Combined production from Kroondal and Mimosa, of 352,107 4E ounces for the half year is a company record. Both Kroondal and Mimosa’s PGM unit costs are lower today than 3 years ago in nominal terms (and substantially lower in real terms), a really credible performance by the operating teams lead by Rob Schroder and Winston Chitando. That said, the lower PGM prices experienced during the half year significant impaired both Kroondal and Mimosa’s profitability. In order to ensure sustainability in this macro environment (US$ PGM prices fell to the lowest level in more than a decade) further cost saving initiatives were implemented at Kroondal, and specifically Mimosa, which management expects to result in unit costs reducing further going forward.
In relation to the proposed amalgamation between AQP and Sibanye, following the approval by AQP shareholders of the amalgamation in general meeting on 18 January 2016, AQP continues to co-operate with Sibanye in fulfilling the remaining conditions precedent to the Amalgamation Agreement and AQP shareholders will be advised of any material progress in due course.
Financial results: Half-Year to 31 December 2015
Aquarius recorded a consolidated accounting net loss after tax (IFRS) of $76 million (the Result) attributable to its share holders for the half-year (5.12 cents per share). The result included one off non-cash charges of $55 million after tax relating to the impairment of mining assets at Mimosa and Platmile.
EBITDA from controlled entities was $5 million, a $13 million (75%) decease from the pcp. The Group's decreased EBITDA despite an increase in production was driven by depressed PGM prices which were 29% lower compared to the pcp. Production attributable to Aquarius increased 4% to 182,911 PGM ounces. All three mines, Kroondal, Mimosa and PlatMile exceeded the pcp production levels whilst maintaining good control over operating costs.
Profit & Production Summary
| Aquarius operations | JV entities | Total | Consolidation adjustment | Aquarius Group | |
| Mine EBITDA | $5M | $3M | $8M | ($3M) | $5M |
| Revenue | $78M | $50M | $128M | ($50M) | $78M |
| Cost of sales | ($91M) | ($54M) | ($145M) | $54M | ($91M) |
| Net loss after tax | ($24M) | ($53M) | ($77M) | - | ($77M) |
| PGM ozs production | 122,697 | 60,214 | 182,911 | - | 182,911 |
* Includes $55 million impairment of Mimosa and PlatMile
Revenue (PGM sales, interest) for the half year of $78 million was down 31% compared to the pcp. The lower revenue reflects the difficult PGM metals price with Dollar prices dropping to average $825 compared to $1,165 in the pcp, a 29% decrease. In Rand terms, the PGM basket decreased 13% cushioned to some extent by a weaker Rand which also decreased 23% to R13.43, compared to the pcp. In Zimbabwe, PGM prices were substantially lower, recording a 26% decrease to close at $856, compared to the pcp.
Total cash cost of production was $83 million, down $14 million despite a 4% increase in production at Kroondal. This was primarily due to good cost control and the weakening Rand which resulted in lower Dollar costs. Significantly, Kroondal recorded its twelfth consecutive +105,000 PGM ounce production quarter, a record for the mine. This is particularly pleasing given the ongoing difficult operating conditions.
Cost per PGM ounce in Dollar terms in South Africa decreased 17% to $679 but increased 2% in Rand terms due to a 23% weakening in the Rand/US Dollar exchange rate. In Zimbabwe the cash cost per PGM ounce was $784, a 2% reduction demonstrating the beginning of the impact of the cost savings implemented in H1 FY2016. Maintaining operating unit cost increases well within inflationary targets will continue to be a point of focus particularly in the ongoing low metal price environment.
Exchange rate movements continued to have a volatile effect on earnings. The Rand weakened significantly to average R13.43 to the US Dollar compared to R10.94 in the pcp. During the half-year, Aquarius recorded net foreign exchange gains of $2.3 million comprising gains on sales adjustments and revaluation of cash, intercompany loans and pipeline debtors.
Administration costs of $3.9 million were in line with forecast. These included $1.5 million transaction costs incurred to date on the proposed Sibanye Gold amalgamation with the Group. Depreciation and amortisation for the half year was $9 million.
Finance costs include $3 million interest on convertible bonds and bank borrowings, $2 million of non-cash interest arising from the unwinding of the debt portion of the convertible bond and $2 million in non-cash interest arising from the unwinding of the net present value of the rehabilitation provisions of AQPSA.
Cash balances
Group cash at 31 December 2015 was $42 million, down $154 million from June 2015. The decrease in cash was mainly attributable to the $125 million repurchase of convertible bonds that matured in December 2015 and unrealised foreign exchange losses of $19 million following the restatement of Rand cash balances following the weakening of the Rand against the US Dollar. In addition to this, the Group paid $7 million to fund its capital expenditure program, paid $3 million in interest and received $4 million of dividends from Mimosa.
Cash held at Mimosa and Blue Ridge which is no longer classified as group cash due to the adoption of equity accounting was $4 million (100% basis).
Sale of assets
Part B of the Everest mine sale concluded in the half year resulting in the receipt of cash of R50 million ($3.5 million). An accounting profit of $4.5 million was recorded after taking into account the $1 million carrying value of Everest assets and liabilities.
Joint venture entities
Mimosa
Mimosa recorded an EBITDA profit attributable to Aquarius of $4 million and a net loss before tax of $51 million. The result was achieved on production of 60,214 PGM ounces attributable to Aquarius. Despite consistent production, the 83% decrease from $27 million to $4 million in EBITDA compared to the pcp was driven by lower PGM prices (down 26%), higher production (up 2%), and lower unit costs (down 2%).
In the 2015 National Budget presentation, the deferment of the VAT on un-beneficiated platinum to 1 January 2017 was proposed. However, the subsequent Finance Bill and Finance Act of 2015 did not include the deferment. Post balance sheet date, the deferment to 1 January 2017 was legislated.
During the half year a dividend of $4 million was received from Mimosa.
Cash held in Mimosa at 31 December 2015 was $2 million (100% basis).
Mimosa's financial result is provided in the Group Financials table on page 5 and its operational performance is discussed under the Operating Review section of this announcement.
Blue Ridge and Sheba’s Ridge
Blue Ridge and Sheba’s Ridge recorded a net loss after tax of $1.8 million.
Group Financials by Operation
| Kroondal | Marikana | Everest | Mimosa | PMR | Corporate | Total | |
| PGM ounces (4E) (attributable) | 115,839 | - | - | 60,214 | 6,858 | - | 182,911 |
| $M | |||||||
| Revenue | 71 | - | - | 50 | 4 | 3 | 128 |
| Cost of sales - mining, processing & admin | (78) | (1) | - | (46) | (4) | - | (129) |
| Cost of sales - depreciation & amortisation | (8) | - | - | (8) | (1) | - | (17) |
| Gross profit/(loss) | (14) | (1) | - | (4) | (1) | 3 | (18) |
| Administrative costs | - | - | - | - | - | (4) | (4) |
| Foreign exchange gain/(loss) | 12 | - | - | - | - | (10) | 2 |
| Finance costs | - | - | - | - | - | (9) | (9) |
| Impairment losses | - | - | - | (42) | (13) | - | (55) |
| Profit on sale of assets | - | - | 4 | - | - | - | 4 |
| Share of loss from joint venture entities | - | - | - | - | - | - | - |
| Profit/(loss) before income tax | (2) | (1) | 4 | (46) | (14) | (21) | (79) |
| Reconciliation to Consolidated Information * | Consolidated | |
| PGM ounces (4E) (attributable) | ||
| $M | ||
| Revenue | (50) | 78 |
| Cost of sales - mining, processing & admin | 46 | (83) |
| Cost of sales - depreciation & amortisation | 8 | (9) |
| Gross profit/(loss) | 5 | (13) |
| Administrative costs | - | (4) |
| Foreign exchange gain/(loss) | - | 2 |
| Finance costs | 2 | (7) |
| Impairment losses | 42 | (14) |
| Profit on sale of assets | - | 4 |
| Share of loss from joint venture entities | (53) | (53) |
| Profit/(loss) before income tax | (5) | (84) |
* In the consolidated financial statements the Mimosa and Blue Ridge operating segments are accounted for using the equity method. The table above provides a reconciliation of the segment information to the IFRS financial statements.
Aquarius Platinum Limited
Consolidated Income Statement
Half-Year ended 31 December 2015
$’000
| Half-Year Ended | Year Ended | |||
| Note | 31/12/15 | 31/12/14 | 30/06/15 | |
| Attributable Production (PGM Ounces) | 182,911 | 175,831 | 349,426 | |
| Revenue | (i) | 78,328 | 113,263 | 212,908 |
| Cost of sales (including D&A) | (ii) | (91,255) | (109,726) | (210,816) |
| Gross (loss)/profit | (12,927) | 3,537 | 2,092 | |
| Other income | 30 | 110 | 173 | |
| Administrative costs | (iii) | (3,915) | (3,238) | (6,230) |
| Foreign exchange gain/(loss) | (iv) | 2,306 | (403) | 1,572 |
| Finance costs | (v) | (7,342) | (7,814) | (15,437) |
| Impairment losses | (vi) | (13,706) | (574) | (29,445) |
| Profit on sale of assets | 4,473 | 1,126 | 20,511 | |
| Foreign currency translation reserve recycled on disposal | - | - | (13,262) | |
| BEE partner guarantee | (166) | - | (2,093) | |
| Share of loss from joint venture entities | (vii) | (52,993) | (49,187) | (48,298) |
| Loss before income tax | (84,240) | (56,443) | (90,417) | |
| Income tax benefit/(expense) | 7,358 | (293) | (7,660) | |
| Net loss for the period | (76,882) | (56,736) | (98,077) | |
| Non-controlling interests | (813) | 95 | (1,767) | |
| Loss attributable to equity holders of Aquarius Platinum Limited | (76,069) | (56,831) | (96,310) | |
| Loss per share (basic - cents) | (5.12) | (3.93) | (6.59) | |
Notes on the Consolidated Income Statement
Revenue of $78 million is lower despite higher production due to lower PGM prices, down 29% compared to the pcp and $10 million of negative sales adjustments. Aggregate cost of sales were 17% lower due to strong cost control across all mines and a 23% weakening of the Rand compared to the pcp. In Rand terms, unit costs increased 2% per PGM ounce in South Africa. Relates to group administration costs inclusive of costs associated with business development activities, regulatory compliance, legal and financial advisory and $1.5 million costs associated with the Sibanye amalgamation. Foreign exchange includes gains/losses on cash, intercompany loans, pipeline debtors and sales adjustments due to the movement of the Dollar against other currencies. Finance costs include $3 million interest on convertible bonds and bank borrowings, $2 million of non-cash interest arising from the unwinding of the debt portion of the convertible bond and $2 million in non-cash interest arising from the unwinding of the net present value of the rehabilitation provisions of AQPSA. Includes impairment of PlatMile mining assets $13.2 million before tax. Share of loss from joint venture entities includes Mimosa impairment of $42 million.Aquarius Platinum Limited
Consolidated Cash Flow Statement
Half-year ended 31 December 2015
$’000
| Half-year ended | Year ended | |||
| Note | 31/12/15 | 31/12/14 | 30/06/15 | |
| Net operating cash inflow/(outflow) | (i) | (909) | 10,310 | 17,852 |
| Net investing cash inflow/(outflow) | (ii) | (7,705) | 14,754 | 38,534 |
| Net financing cash inflow/(outflow) | (iii) | (125,374) | 9,329 | 12,540 |
| Net (decrease)/increase in cash held | (133,988) | 34,393 | 68,926 | |
| Opening cash balance | 195,773 | 136,820 | 136,820 | |
| Exchange rate movement on cash | (iv) | (19,616) | (7,002) | (9,973) |
| Closing cash balance | 42,169 | 164,211 | 195,773 | |
Notes on the Consolidated Cash Flow Statement
Includes $98 million inflow from sales, $99 million paid to suppliers and $1 million interest received. Includes $7 million of payments for mining assets. Includes $3 million interest paid, $4 million dividend received from Mimosa and $125 million repayment of convertible bond. Reflects movement of other currencies (Rand 18.7 million, GBP 0.5 million, AUD 0.2 million) against the Dollar.Aquarius Platinum Limited
Consolidated Balance Sheet
At 31 December 2015
$’000
| Half-year ended | Year ended | |||
| Note | 31/12/15 | 31/12/14 | 30/06/15 | |
| Assets | ||||
| Cash assets | 42,169 | 164,211 | 195,773 | |
| Current receivables | (i) | 18,160 | 27,551 | 29,231 |
| Other current assets | (ii) | 9,576 | 16,590 | 8,463 |
| Mining assets | (iii) | 142,248 | 198,870 | 163,439 |
| Intangible asset | (iv) | 523 | 49,230 | 17,727 |
| Investments in joint venture entities | (v) | 95,051 | 152,437 | 150,609 |
| Other non-current assets | (vi) | 25,399 | 41,944 | 28,823 |
| Total assets | 333,126 | 650,833 | 594,065 | |
| Liabilities | ||||
| Current liabilities | (vii) | 36,026 | 155,287 | 163,481 |
| Non-current interest-bearing liabilities | (viii) | 735 | 2,207 | 2,020 |
| Other non-current liabilities | (ix) | 51,988 | 80,497 | 71,091 |
| Total liabilities | 88,749 | 237,991 | 236,592 | |
| Net assets | 244,377 | 412,842 | 357,473 | |
| Equity | ||||
| Issued capital | 75,416 | 75,098 | 75,266 | |
| Treasury shares | (23,711) | (25,871) | (26,056) | |
| Reserves | 721,890 | 775,186 | 761,134 | |
| Accumulated losses | (532,829) | (417,281) | (456,760) | |
| Total equity attributable to equity holdersof Aquarius Platinum Limited | 240,766 | 407,132 | 353,584 | |
| Non-controlling interests | (x) | 3,611 | 5,710 | 3,889 |
| Total equity | 244,377 | 412,842 | 357,473 | |
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 and PlatMile. Includes intangibles relating to contract value acquired on the acquisition of equity interest in Platinum Mile Resources (Pty) Ltd. Reflects investments in joint venture entities - Mimosa, Blue Ridge and Sheba’s Ridge. Includes the recoverable portion of rehabilitation provision from Anglo Platinum of $7 million, receivable of $4 million representing the net realisable value of Ridge assets, investments in rehabilitation trusts of $11 million and AQPSA deferred tax asset of $2 million. Includes creditors and other payables of $31 million, AQPSA equipment leases of $2 million and provisions of $3 million. Represents AQPSA equipment leases. Includes deferred tax liabilities of $2 million, provision for closure costs of $48 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 Platmile Resources (Pty) Ltd.OPERATING REVIEW
This section contains summarised operating reviews of each of the Company’s operations. Full operating statistics are provided on page 16 of this report, and other updates relevant to all operations can be found under Corporate Matters on page 15. In addition, further detail on each of the operations can be obtained from the quarterly and half-year reports released by the Company throughout the financial year, which are available on the Company’s website at http://www.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 19% to 0.50 per 200,000 man hours from 0.62 the previous year Production constant on 3.8 million tonnes Volumes processed decreased slightly to 3.6m tonnes Head grade improved by 4% to 2.48 g/t from 2.39g/t Recoveries increased by 2% to 80% PGM production increased by 4% to 231,678 PGM ounces Revenue deteriorated by 17% to R1.9 billion compared to the previous financial year due weakening of 29% in the Dollar Basket Prices (R0.3 billion negative sales adjustment) but was offset with the weakened exchange rate of 23% Mining cash costs increased by 7% to R582 per tonne, and costs per PGM ounce increased by 2% to R9,117 Kroondal’s cash margin for the period deteriorated from 13% to -10%Commentary – Kroondal
Safety, Health and Environment
The Kroondal operations ended the half-year with an improved DIIR compared to the pcp by 19% at 0.5.
Operations
Production for the half-year remained constant at 3.8 million tonnes. During the half-year, the Kroondal work force maintained a positive outlook with open communication channels on all levels.
Operating Cash Costs
Cash costs at Kroondal increased by 2% to R9,117 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 | 9,117 | 7,487 | 7,278 |
AQPSA Capital expenditure
Stay-in-business capital expenditure and mobile equipment replacement is expected to be within financial guidance made previously.
| Kroondal (100% basis) | ||
| (R’000 unless otherwise stated) | Total | Per 4E oz |
| Ongoing Infrastructure Establishment | 150,185 | 648 |
| Project Capital (K6 shaft) | 8,079 | 35 |
| Mobile Equipment | 24,851 | 107 |
| Total | 183,116 | 790 |
MIMOSA INVESTMENTS (Aquarius Platinum - 50%)
Mimosa Platinum Mine
12-month rolling average DIIR deteriorated to 0.13 per 200,000 man hours from 0.05 in the previous corresponding half year Production decreased by 6% to 1.238 million tonnes Volumes processed increased by 1% to 1.310 million tonnes Head grade increased slightly to 3.65g/t Recoveries improved by 1% to 78.6% PGM production increased by 2% to 120,429 PGM ounces Revenue decreased by 32% to $99 million due to lower metal prices Mining cash costs increased 9% to $76 per tonne, and PGM ounce cost decreased by 2% to $784 Mimosa’s cash margin for the period decreased to 6% from 35%Commentary
Safety, Health and Environment
One fatality occurred at Mimosa during the half-year. Four lost-time injuries were reported during the period and resulted in deterioration in DIIR.
Operations
The Mimosa mine operated well during the half year, enjoying cordial industrial relations and meeting its production and cost targets.
Regulatory and fiscal environment
15% Export Levy on un-beneficiated PGMs/ Deductibility of Royalties
In the 2015 National Budget presentation, the deferment of the VAT on un-beneficiated platinum to 1 January 2017 was proposed. However, the subsequent Finance Bill and Finance Act of 2015 did not include the deferment. Post balance sheet date, the deferment to 1 January 2017 was legislated.
Royalties
The 2015 National Budget was silent on the non-deductibility of royalties for income tax purposes. The proposal to render royalties payable by Mimosa non-deductible for income tax purposes was implemented with effect from the year of assessment beginning on 1 January 2014, and therefore impacted Mimosa from the start of the 2014 financial year on 1 July 2013. This position remained unchanged in the 2015 National Budget. The financial impact of the non-deductibility of royalties was $1.7m for the half-year to December 2015, 50% of which is attributable to Aquarius. Negotiations are continuing with the authorities to confirm that the royalties are deductible for income tax purposes.
Indigenisation
The Minister of Youth, Indigenisation and Economic Empowerment gazetted the frameworks, templates and procedures for implementing the indigenization policy on 8 January 2016.The proposed frameworks sought to provide clarity on the indigenisation law and its implementation, and the Indigenisation Act remains unchanged.
Mimosa continues to interact with the Ministry of Indigenisation and Ministry of Mines to work towards a sustainable solution in relation to indigenisation.
Capital expenditure
Stay in business capital expenditure at Mimosa was $18 million ($150 per PGM ounce), spent mainly on mobile equipment, support & drill rigs and LHDs, the conveyor belt extension, down dip development and ventilation walls.
Operating Cash Costs
Operating costs decreased by 2% from the pcp mainly as a result of increased production as well as the benefits emanating from cost reduction initiatives currently being implemented by the company.
Operating cash costs per ounce ($/oz)
| 4E(Pt+Pd+Rh+Au) | 6E(Pt+Pd+Rh+Ir+Ru+Au) | 4E net of by-products(Ni, Cu & Co) | |
| Mimosa | 784 | 744 | 661 |
TAILINGS OPERATIONS
Platinum Mile (Aquarius Platinum – 91.7%)
Material processed was 2,298m tonnes Recoveries were 17% Production amounted to 6,858 PGM ounces Cash costs were R7,593 per PGM ounce. Revenue was R60 million The cash margin for the period was 13%Commentary
Platinum Mile:
All operating and financial indicators improved compared to the half year results of the previous financial year.
Anglo Platinum started the commissioning of their tailings re-treatment facility in the quarter and feed from this section was understandably erratic. This had a knock on effect on PMR's rougher flotation stability and recoveries.
At the end of the quarter PMR had implemented feed stability through level and flow control utilizing UG2 feed to keep the flow to the rougher circuit constant and maximized.
Operating cash costs per ounce (R/oz)
| 4E(Pt+Pd+Rh+Au) | 6E(Pt+Pd+Rh+Ir+Ru+Au) | 4E net of by-products(Ni, Cu& Co) | |
| PMR | 7,593 | 6,560 | 6,094 |
Chromite Tailings Retreatment Plant (CTRP) (Aquarius Platinum - 50%)This operation remains on care and maintenance.
CORPORATE MATTERS
Board of Directors - Mr. David Dix
It is with profound regret and sadness that Aquarius Platinum Limited ("Aquarius Platinum") advises of the passing of Mr. David Dix, Director of Aquarius.
Mr. Dix joined the Board in March 2004 and served in the capacity of non-executive director, Chairman of the Audit Committee of the Group and was also a member of the Remuneration Committee. During his tenure Mr. Dix was an integral part of the Board and an outstanding contributor to Aquarius Platinum during his 12 years on the Board.
Aquarius Platinum Chairman Sir Nigel Rudd on behalf of the Board and Management of the Group expressed his deepest condolences to wife Alexia and Mr. Dix's family.
Everest mine sale finalisation
Aquarius Platinum Limited (Aquarius) announced on 10 February 2015 that its subsidiary, Aquarius Platinum (South Africa ) (Pty) Ltd (AQPSA), had entered into an agreement to sell its entire interest in the Everest Mine and ancillary mining and processing infrastructure and immovable properties to Northam Platinum Limited (Northam), for an aggregate cash consideration of R450 million, to be completed in two parts, being R400 million for the concentrator and other mining assets of Everest Mine (Part A) plus R50 million for the Everest Mining Right (Part B). Part A of the disposal process was completed on 26 June 2015 following the receipt of R400 million.
Subsequent to the end of the September quarter the parties obtained consent in terms of section 11 of the Mineral and Petroleum Resources Development Act, No. 28 of 2002 to transfer the Everest Mining Right to Northam and upon registration of the section 11 consent AQP received the Part B funds on 1 December 2015.
Sibanye Gold Amalgamation - update
Aquarius Platinum Limited shareholders approved the Amalgamation Agreement and Amalgamation on 18 January 2016. The approvals were a condition precedent to the transaction between the Company and Sibanye Gold Limited proceeding. The only outstanding regulatory approvals required for the transaction to proceed are those of the South African Competition Commission and the Competition Tribunal (refer section 1.9 of the Explanatory Memorandum of the Meeting Materials for further detail). Once these competition approvals have been obtained, a timetable of events leading up to the date for payment of the consideration will be announced to ASX, LSE and JSE and published on Aquarius’ website at www.aquariusplatinum.com.
More information on all corporate matters can be found at www.aquariusplatinum.com
See wwww.aquariusplatinum.com for statistical information table
Aquarius Platinum LimitedIncorporated in Bermuda
Exempt company number 26290
Board of Directors
| Sir Nigel Rudd | Non-executive Chairman |
| Jean Nel | Chief Executive Officer |
| 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
Edward Haslam (Chairman)
Tim Freshwater
Kofi Morna
Sir Nigel Rudd
Remuneration Committee
Edward Haslam (Chairman)
Zwelakhe Mankazana
Sir Nigel Rudd
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 Managing DirectorJean Nel Executive DirectorAnthony Jubert General Manager: Kroondal | Winston Chitando ChairmanPeter Chimboza Resident DirectorFungai Makoni Managing Director |
| Platinum Mile Management |
| Richard Atkinson Managing DirectorPaul Swart Financial Director |
Issued capital
At 31 December 2015, the Company had on issue 1,508,344,873 fully paid common shares.
| Substantial shareholders 31 December 2015 | Number of shares | Percentage |
| HSBC Custody Nominees (Australia) Limited | 108,473,857 | 7.19 |
| Chase Nominees Limited | 58,565,718 | 3.88 |
| Primary Listing: | Australian Securities Exchange (AQP.AX) | Trading Information |
| Premium Listing: | London Stock Exchange (AQP.L) | ISIN number BMG0440M1284 |
| Secondary Listing: | JSE Limited (AQP.ZA) | ADR ISIN number US03840M2089 |
| Convertible bond ISIN number XS0470482067 |
| Broker (LSE) | Broker (ASX) | Sponsor (JSE) |
| Barclays5 The North ColonnadeCanary WharfLondon E14 4BBTelephone: +44 (0) 20 7623 2323 | Euroz SecuritiesLevel 18 Alluvion58 Mounts Bay Road,Perth WA 6000Telephone: +61 (0) 8 9488 1400 | Rand Merchant Bank(A division of FirstRand Bank Limited)1 Merchant PlaceCnr of Rivonia Rd and Fredman Drive, Sandton 2196Johannesburg 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, South AfricaPostal 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:Jean Nel+27 (0)10 001 2843 | In Australia:Willi Boehm+61 (0) 8 9367 5211 |
Glossary
| A$ | Australian Dollar |
| Aquarius or AQP | Aquarius Platinum Limited |
| 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 or $ | United States Dollar |
| Everest | Everest Platinum Mine |
| Great Dyke Reef | A PGE-bearing layer within the Great Dyke Complex in Zimbabwe |
| GoZ | Government of Zimbabwe |
| g/t | Grams per tonne, measurement unit of grade (1g/t = 1 part per million) |
| JORC code | Australasian code for reporting of Mineral Resources and Ore Reserves |
| 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) (6E) | Platinum group elements plus gold. Five metallic elements commonly 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) (4E) | Platinum group metals plus gold. Aquarius reports PGMs as comprising 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 Rand | South African Rand |
| 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 Limited | Rustenburg Platinum Mines Limited, a subsidiary of Anglo Platinum 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 |