12 Aug 2010 07:00
Aquarius Platinum
Preliminary Full Year Results to 30 June 2010
Key Points: Financial
Revenue increased by 52% to $472.2 million (FY2009: $310.6 million)
Mine operating net cash flow increased six-fold to $94.0 million (FY2009: $12.0 million)
Mine EBITDA increased by $175.5 million to $145.1 million (FY2009: -$30.5 million)
Adjusted Net profit of $62.1 million (before exceptional charges)
Reported Net profit increased by $73.5 million to $27.8 million (US 6.09 cents per share)
Group cash balance at FY close of $381.7 million, an increase of $228.1 million on the prior year
Final dividend of US 4 cents per share declared, taking full year dividend to US 6 cents per share (FY2009: nil)
Key Points: Operational
Group attributable production (including Blue Ridge) of 422,645 PGM ounces for the full year, despite the Everest mine closure for the most part of the year
Weighted average on-mine unit cash costs in South Africa increased by 9% in Rand terms, credible in the circumstances
Everest mine recommissioned in May, within budget and 3 months ahead of schedule - now ramping up smoothly
Mimosa on-mine unit cash costs up 22% as a result of the adoption of the multi-currency regime (US dollar) in Zimbabwe
Key Points: Strategic
Safety review in respect of "falls of ground" underway and additional safety measures agreed with DMR following tragic Marikana multiple fatal accident (shortly after year end)
$300 million of unsubordinated, unsecured convertible bonds due 2015 issued in December 2009
ZAR Bond repayment - $101 million of cash used to retire existing relatively expensive R650 million convertible bonds
US Dollar bond removes derivative foreign exchange effect of ZAR bond
Blue Ridge long term mine plan under review, to enhance production and improve operational flexibility and cost
Commenting on the results, Stuart Murray, CEO of Aquarius Platinum said:
"The 2010 financial year has been a very different year for Aquarius compared to 2009. Sharp improvements have been recorded in almost all financial metrics compared to the very tough 2009 financial year, as the effects of the global financial crisis have abated and markets have made a tentative recovery. During the year average PGM prices recovered quite strongly, despite the recent corrections since May. PGMs are late-stage recovery commodities, as they are linked to that significant consumer expenditure item - the car! As a result we believe that as world demand continues to recover, so the outlook for our primary products will continue to improve, aided in the medium term by continued supply side constraints. 2010 was a much improved year financially, and 2011 has the potential to be somewhat better.
The year was not free of its challenges. An illegal strike in August 2009 halted production at Kroondal and Marikana for two weeks, and the performance of our tailings operations was negatively impacted by below-plan feedstock quality and volume issues. Safety matters at Blue Ridge blighted an otherwise excellent track record at the other operations. There were also successes, with Mimosa performing exceptionally well and Everest restarting ahead of schedule and under budget.
It would be wrong not to finish with words about the terrible accident that occurred at Marikana's 4 Shaft shortly after the 2010 year end. It is the worst accident in Aquarius' history and our sincere condolences go out to the family, friends and colleagues of the five men who died. We are redoubling our commitment to safety and we have agreed and are implementing new and additional safety measures at our mines."
Financial results: Year to 30 June 2010
Aquarius recorded a significant financial improvement on the previous corresponding period (pcp), to report a net profit of $27.8 million (6.09 cents per share) for the financial year despite the significant impact of $34.3 million of exceptional charges. This represents an increase of $74 million over the previous corresponding period (pcp).
This improvement was reflected in the $175.5 million increase in mine EBITDA, moving from a loss of $30.5 million in the pcp to a profit of $145.1 million in FY2010. The improved result was despite lower comparative production (due to the temporary closure of the Everest mine in December 2008) and reflects improved and less volatile PGM prices. The Everest mine recommenced processing ore in June 2010, contributing 8,496 PGM ounces to Group production for the financial year under review. The early start of Everest generated $9.8 million of revenue which partly offset care and maintenance costs at the mine for the year.
The Directors have declared a final dividend of US 4 cents per share (2009: nil) payable on 1 October 2010 to shareholders registered on 10 September 2010, reflecting the company's improved operational cash flow and the Directors' increasing confidence in the improved operating cashflow of the business. This brings the total dividend payable for the year ended 30 June 2010 to US 6 cents (2009: nil).
The Result was significantly impacted by $34.3 million of exceptional non-mining expenditure, primarily related to:
$4.9 million in M&A and capital raising costs with respect to the acquisition of Ridge Mining and the $300 million convertible note issue completed in December 2009
$20.9 million for the early redemption of the Rand convertible notes, inclusive of $4.9 million borrowing costs written off
$9.7 million one-off charge to adjust Mimosa's deferred tax following the increase in the company tax rate in Zimbabwe from 15% to 25%
credit of $5.4 million to record the discount realised on the acquisition of the Ridge assets from fair valuing the assets
EBITDA, Profit & Production Comparison by Half Year & Full Year (FY 2010 &2009) 1st 2nd half half FY2010 FY2009 Movement FY 2010 FY 2010 EBITDA $56.6M $88.4M $145.0M ($30,5M) $175.5M Net profit (loss) after tax & $3.9M $23.9M $27.8M ($45.7M) $73.5MOEI Revenue $206.1M $266.1M $472.2M $310.6M $161.6M PGM ozs production (in 192,323 201,018 393,341 455,740 (62,399)operation) (a) (b)
Average PGM basket price per $1,072 $1,324 $1,201 $682 $519 ounce achieved
excludes 29,304 PGM ounces of Blue Ridge production capitalised.
Includes 64,068 PGM ounces from Everest mine
On an adjusted basis, net profit before these significant and one-off adjustments was $62.1 million.
[Please refer to www.aquariusplatinum.com for graph]
Revenue (PGM sales and interest income of $14 million) for the FY2010 was up 52% to $472.2 million from $310.6 million. Measured on a PGM ounce basis, this represents an increase in revenue realised from $682 per PGM ounce to $1,201 per PGM ounce.
Gross mine margins recovered following improved and less volatile PGM prices during the year.
Group attributable mine production for the period was 422,645 PGM ounces. The Group's existing operations are expected to continue to increase production in FY2011 to approximately 530,000 PGM ounces after allowing for the temporary suspension of mining at the Blue Ridge operations.
Total cash cost of production was $310 million, up 23% per PGM ounce in Dollar terms, materially influenced by Rand strength which strengthened by 16% against the US Dollar and by the adoption of the US dollar in Zimbabwe. Weighted average unit costs for FY2010 (excluding Blue Ridge) were $751 per 4E ounce, up 26% compared to FY2009.
Amortisation and depreciation were marginally lower at $42 million from $43 million reflecting lower production at the South African operations.
Corporate administration expenses of $13.5 million included one-off costs of $4.9 million associated with M&A activity (including the Ridge acquisition) and refinancing activities.
Finance costs for the year of $25.7 million included $12.7 million interest on convertible notes and bank borrowings, borrowing costs amortised of $0.9 million and a (non cash) charge of $12.1 million relating to the net present value adjustments to the Marikana and Kroondal rehabilitation provisions and accretion of the interest component of the convertible note debt.
Income tax expense was higher due to a $9.7 million increase in Mimosa's deferred tax liability following an increase from 15% to 25% in Zimbabwe's corporate tax rate and R11.4 million of new SA royalties (as introduced by the Mineral and Petroleum Resources Development Act), for the period from 1 March to 30 June.
Refinancing ActivitiesConvertible Bond
In December 2009, Aquarius concluded a capital raising of $300 million of unsubordinated, unsecured convertible bonds, due 2015.
The Bonds were issued at 100% of their principal amount and have a coupon of 4.0% per annum, payable semi-annually in arrears. The initial conversion price is $6.773 per share, representing a premium of 22.5% to the volume weighted average price of the Company's common shares on the London Stock Exchange (LSE) between launch and pricing, translated at a GBP-USD exchange rate of 1.653.
Part of the proceeds of the Bonds were used to fund the early redemption of all of the Company's existing R650 million convertible bonds in accordance with their terms (at an aggregate redemption price of R747.5 million) with the balance for general corporate purposes and business opportunities. The impact arising from the notification of early redemption of the company's rand convertible notes inclusive of the borrowing costs and the 15% premium has been accounted for in the consolidated income statement for FY2010.
Cash Balances
Group cash balance at 30 June 2010 was $381.7 million representing an increase of $228.1 million over the pcp.
Net operating cash flows for the year generated by the group's miningoperations increased six fold to $94.0 million despite lower comparativeproduction. The table below reconciles net profit to net cash flows of thegroup provides a more appropriate gauge of the cash generating capacity of thegroup's mines. $000's Operating Profit After Tax 27,773 Adding Back Non Cash Items Depreciation 31,154 Amortisation 10,785 Movement in fair value of derivative (6,084) Discount on acquisition (5,425)
Loss on early redemption of convertible note 26,920
Borrowing costs amortisation 918
Accretion of interest on convertible bond 6,699
Accretion of interest on rehab liability 5,414 Provision for tax 23,204 Provision for employee entitlements 22 Provision for rehabilitation (26,011) Rehabilitation trust interest (3,514)
Profit/(Loss) on the sale of non current assets 44
Changes in net market value of investments (301)
Net foreign currency losses 4,846 Movements in assets and liabilities: (2,479) Net operating cash flows 93,966 Group Debt
Group interest bearing debt (excluding pipeline advances) at 30 June 2010 of $260 million comprised, $238 million convertible notes and $22 million bank loans at subsidiary level (mainly Blue Ridge).
Acquisition of Ridge Mining plc
On 6 July 2009, pursuant to a Scheme of Arrangement, Aquarius acquired 100% of the voting shares of Ridge, a company registered and headquartered in England and publicly listed on the AIM market of the London Stock Exchange.
Ridge's Blue Ridge Mine is in commissioning and ramp-up, and as a result revenue and costs at this mine continue to be capitalised. The acquisition also added significant optionality with the Sheba's Ridge resource.
The total cost of the business combination was US$112.7 and comprised the issue of equity instruments - both ordinary shares and options over ordinary shares. Aquarius issued 33,477,945 ordinary shares with a fair value of GBP 1.968 each, based on the quoted price of the shares of Aquarius on 6 July 2009.
Group Financials by Operation
US$M Kroondal Marikana Everest Mimosa PMR RK1 Blue Corp. Total Ridge PGM ounces (4E) 204,286 67,710 8,496 99,812 9,835 3,200 29,304 - 422,645(attributable) Revenue 230.4 78.6 9.8 126.0 11.2 4.1 12.0 472.2 Cost of Sales - mining, (156.1) (64.4) (16.4) (61.5) (7.4) (3.5) (0.6) (310.0)processing & admin Cost of Sales - depreciation (20.6) (10.0) (0.7) (5.6) (4.7) (0.2) (0.1) (42.0)& amortisation Gross Profit 53.6 4.3 (7.3) 58.9 (0.9) 0.4 11.2 120.2 Other Income 0.4 0.1 1.2 1.6 Corporate (13.5) (13.5)administration Foreign exchange gain/ (1.7) (0.3) (1.6) (1.2) (4.8)(loss) Finance costs (25.8) (25.8) Loss arising on early redemption of (20.8) (20.8)convertible note Impairment reversal/ 0.3 0.3(losses) Transaction costs on (4.2) (4.2)acquisition of Ridge Mining Discount on acquisition of 5.4 5.4Ridge Mining Profit before 51.9 4.0 (7.3) 58.0 (1.0) 0.4 (47.7) 58.4income tax Income tax (30.7)expense Net Profit from Ordinary 27.8Activities
Rand US Dollar Exchange Rate
The Rand strengthened slightly against the US Dollar over the 2010 financial year, starting the year at 7.78 and ending it at 7.62. There was considerably less volatility in the exchange rate compared with the previous year as the effects of the global financial crisis receded. The Rand averaged 7.59 to the US Dollar during the year, 16% stronger than the average of 9.03 recorded in the prior financial year. The currency was range-bound throughout the year.
Financial Year 2010: Rand US Dollar Exchange Rate
[Please refer to www.aquariusplatinum.com for graph]
Platinum Group Metal Prices
The prices of the platinum group metals recovered consistently in US Dollar terms over the period from July 2009 to May 2010, reflecting restocking by automobile manufacturers and improving demand for automobiles worldwide, and strong jewellery demand. This strengthening in the prices was aided by the launch of two new US-listed physically-backed platinum exchange traded funds (ETFs) in January 2010 which permitted increased investor interest in the metal. Strong flows into these, the existing Swiss-based platinum ETF and the palladium ETFs supported prices in the third quarter. In May 2010 the Greek sovereign debt crisis caused a correction in PGM prices as the economic recovery particularly in Europe was called into question. In the final month of the financial year the market satisfied itself that a second recession was unlikely and the PGMs resumed their slow, steady price improvement. Platinum rose 30% over the year to close at $1,532 per ounce and averaged $1,450 per ounce for the financial year, a 26% improvement over the prior year. Platinum peaked in April at $1,752 per ounce, but underperformed the other PGMs because of its reliance on European demand for diesel passenger cars. The recovery in palladium and rhodium prices was more marked, with palladium rising 76% over the year and rhodium rising 75%. Gold rose 34% during the period. PGM prices have continued to rise in the new financial year.
Financial Year 2010: Platinum, Palladium, Rhodium and Gold Prices
[Please refer to www.aquariusplatinum.com for graph]
The South African and Zimbabwean US Dollar 4E basket prices consequently saw significant increases compared to the prior financial year. In South Africa the basket price averaged 17% higher for the year at $1,231 per 4E ounce for the group, while in Zimbabwe it rose 24%. The average basket price achieved by the South African operations was $1,227 per 4E ounce and in Zimbabwe it was $993.
Financial Year 2010: PGM Basket Prices (4E)
[Please refer to www.aquariusplatinum.com for graph]
Production
Total production decreased in the 2010 financial year from 847,283 to 836,795 4E ounces, largely due to the impact of the closure of Everest in 2009. Everest remained closed for much of the 2010 financial year but was re-opened ahead of schedule in the final quarter and contributed 8,496 4E ounces. Everest is expected to ramp up rapidly in 2011. Kroondal and Marikana both produced less than in FY 2009 due to an illegal two-week strike in August 2009, while Mimosa produced more, successfully ramping up to its nameplate 200,000 ounces following the completion of the Wedza Phase 5 expansion last year. The chart below illustrates the annual production profile.
Aquarius Group Attributable Annual Production (4E PGM ounces)
[Please refer to www.aquariusplatinum.com for graph]
Production of PGMs attributable to shareholders of Aquarius was 422,645 4E ounces. The tables below compare production by operation and attributable to Aquarius over the four quarters and year-on-year.
Production by Mine
Quarter Ended Full Year EndedPGMs Quarter 1 Quarter 2 Quarter 3 Quarter 4 FY 2009 FY 2010 Kroondal 88,808 108,254 103,072 108,438 422,078 408,570 Marikana 31,222 37,160 35,148 31,890 157,938 135,418 Everest - - - 8,496 64,068 8,496 Mimosa 50,828 50,078 49,008 49,710 180,022 199,625 CTRP 1,740 2,088 1,268 1,304 6,824 6,399 Platinum Mile 5,932 8,540 2,738 2,412 16,353 19,670 Blue Ridge 14,469 18,598 15,340 10,202 - 58,617 Total 192,999 224,718 206,574 212,452 847,283 836,795
Production by Mine Attributable to Aquarius
Quarter Ended Full Year EndedPGMs Quarter 1 Quarter 2 Quarter 3 Quarter 4 FY 2009 FY2010 Kroondal 44,404 54,127 51,536 54,219 211,039 204,285 Marikana 15,611 18,580 17,574 15,945 78,969 67,709 Everest - - - 8,496 64,068 8,496 Mimosa 25,414 25,039 24,504 24,855 90,011 99,812 CTRP 870 1,044 634 652 3,412 3,200 Platinum Mile 2,966 4,270 1,369 1,206 8,177 9,835 Blue Ridge* 7,235 9,299 7,670 5,101 - 29,308 Total 96,500 112,359 103,287 106,226 455,676 422,645
*Mine in ramp-up, revenues and costs capitalised
FINANCIALS Aquarius Platinum Limited Consolidated Income Statement Year ended 30 June 2010 $'000 Half year ended Year ended Note 30/6/2010 31/12/09 30/6/2010 30/6/09 Blue Ridge 12,770 16,534 29,304 0 Attributable Production (PGM Ounces) (excluding 201,018* 192,323* 393,315 455,675 Blue Ridge production) Total production 213,788 208,857 422,645 455,675 Revenue (i) 266,131 206,089 472,220 310,556 Cost of Sales (ii) (189,649) (162,380) (352,029) (334,327) (including D&A) Gross profit/(loss) 76,482 43,709 120,191 (23,771) Other income 1,079 510 1,589 1,815 Corporate Admin & (iii) (5,200) (8,268) (13,468) (9,919) other costs Finance costs (iv) (15,106) (10,644) (25,750) (35,968) Loss on early redemption of (v) - (20,836) (20,836) - convertible note Foreign exchange (vi) (20,932) 16,086 (4,846) (20,328) gains/(losses) Fair value movement - - - 3,829 in derivative Impairment of assets (vii) (205) 506 301 (13,050) Transaction and acquisition costs (viii) 1,002 246 1,248 - associated with Ridge Mining Profit/(loss) before 37,120 21,309 58,429 (97,392) tax Income tax credit (ix) (13,218) (17,438) (30,656) 15,808 (expense) Profit/(loss) after 23,902 3,871 27,773 (81,584) tax Minority interest (x) - - - 35,842 Net profit/(loss) 23,902 3,871 27,773 (45,742) Earnings per share 5.23 0.86 6.09 (13.30) (basic - cents)
Notes on the June 2010 Consolidated Income Statement
Sales revenue increase reflects higher PGM basket price achieved.
Weighted average cash costs in unit terms (excluding Blue Ridge) increased by 26% in US Dollar terms but by only 9% in Rand terms (excluding Mimosa and Blue Ridge) due to a 16% increase in the value of the Rand compared to the US Dollar.
Corporate administration costs are above the pcp due to increased M&A and refinancing activities ($4.9 million) included in corporate administration costs.
Decrease in finance costs reflects improved terms secured for the new convertible note issue that replaced the previous Rand convertible note issue. Finance costs comprised interest of $12.8 million on convertible note and bank borrowings, $0.8 million on pipeline finance, $5.4 million of non-cash interest arising from the unwinding of the net present value of the rehabilitation provisions of AQPSA, and $6.7 million non-cash interest arising from the accretion of interest on the convertible note.
Loss incurred on the early payout of the Rand convertible note inclusive of associated borrowing costs and the reversal of the fair value the derivative component of the Rand convertible note previously amortised against the life of the note.
Foreign exchange losses include a $2 million loss on adjusting revenue recorded at time of production at Kroondal, Marikana and CTRP to realised receipts received at the end of the four month pipeline, a $4.6 million loss on the revaluation of the Rand convertible note (since repaid), a $8 million gain on the revaluation of group loans, $0.5 million gain on pipeline advances, $6.5 million loss incurred on the revaluation of net monetary assets.
Reflects movement in impairment charges for listed investments.
Reflects net impact of transaction and acquisition costs associated with the acquisition of Ridge Mining.
Income tax includes a $9.7 million increase in Mimosa's deferred tax liability following an increase from 15% to 25% in Zimbabwe's corporate tax rate and R11.4 million of new South African royalties (as introduced by the Mineral and Petroleum Resources Development Act) for the period from 1 March to 30 June.
Minority interest reflects interest previously at AQPSA level, now 100% ownedby AQP. Aquarius Platinum Limited Consolidated Cash flow Statement Year ended 30 June 2010 $'000 Half year ended Financial year ended Note: 30/06/10 30/06/09 30/6/10 30/06/09 Net operating cash flow (i) 76,316 27,886 93,967 12,006 Net investing cash flow (ii) (31,072) (48,936) (60,953) (73,380) Net financing cash flow (iii) (116,799) 68,848 196,073 38,754
Net increase (decrease) in cash held (71,555) 47,798 229,087 (22,620)
Opening cash balance 464,576 86,954 153,600 170,956
Exchange rate movement on cash (iv) (11,287) 18,848 (953) 5,264
Closing cash balance 381,734 153,600 381,734 153,600
Notes on the June 2010 Consolidated Cash flow Statement
Net operating cash flow includes net inflow from operations $101 million, net interest paid of $1 million and income tax paid $7 million.
Net investing cash flow includes payments for mine development and development costs $75 million and cash acquired re the Ridge Mining acquisition, $14 million.
Net financing cash flow includes: issue of shares $43 million, convertible notes issued $294 million (net), repayment of Rand convertible notes $101 million, loans repaid at subsidiary level - Ridge RMB loan $12 million, Mimosa working capital loan $5 million and PlatMile bank loan $2 million, and dividends paid of $9 million.
Exchange rate movement reflects movement of other currencies against the USDollar. Aquarius Platinum Limited Consolidated Balance Sheet At 30 June 2010 $'000 Financial year ended Note: 30/6/10 30/06/09 Assets Cash assets 381,734 153,600 Current receivables (i) 120,693 119,866 Other current assets (ii) 49,338 43,652 Property, plant and equipment (iii) 272,117 230,057 Mining assets (iv) 425,882 270,374 Other non-current assets (v) 56,603 25,287 Intangibles (vi) 72,833 74,167 Total assets 1,379,200 917,003 Liabilities Current liabilities (vii) 102,313 75,430 Non-current payables (viii) 6,932 1,555
Non-current interest-bearing liabilities (ix) 237,581 70,034
Derivative financial instrument at fair value (x) - 6,084 Other non-current liabilities (xi) 195,341 155,730 Total Liabilities 542,167 308,833 Net assets 837,033 608,170 Equity Issued capital 23,154 20,751 Reserves 649,777 441,835 Retained earnings 164,102 145,584 Total Equity 837,033 608,170
Notes on the June 2010 Consolidated Balance Sheet
Reflects debtors receivable on PGM concentrate sales.
Reflects PGM concentrate inventory, consumables, stores and critical spares.
Represents fixed assets within the Group.
Includes group's mining assets at Kroondal, Marikana, Mimosa, Everest, Blue Ridge, CTRP and Platmile
Includes recoverable portion of rehabilitation provision at P&SA sites of $12 million, cash contributed to Rehabilitation Trusts of $15 million, listed investments of $3 million and $27 million owed by the RBZ to Mimosa relating to the previous requirements to repatriate US Dollar proceeds on metals sales to the RBZ.
Included intangibles relating to goodwill and contract value acquired on acquisition of 50% equity interest in Platinum Mile Resources (Pty) Ltd.
Increase reflects bank loans at subsidiary level (Blue Ridge) $22 million, trade creditors $76 million and current tax liabilities $4 million.
Reflects P&SA partners' right of recovery of rehabilitation provisions.
Includes convertible notes of $237m and AQPSA vehicle leases of $0.6m.
Derivative relates to the fair value of the option component which formed part of the overall Rand convertible note debt since repaid.
Reflects deferred tax liabilities of $128 million and provision for closure costs of $68 million.
OPERATING REVIEW
This section contains summarised operating reviews of each of the Company's seven operations. Further detail can be obtained from the quarterly and half-yearly reports released by the Company throughout the 2010 financial year which are available on the Company's website, www.aquariusplatinum.com.
AQUARIUS PLATINUM (SOUTH AFRICA) (PTY) LTD (Aquarius Platinum 100%)
P&SA1 at Kroondal
Safety, Health and Environmental
The 12-month rolling average DIIR for the year improved to 0.57 from 0.74 in the previous year, and no fatalities were recorded. Management measures and safety management systems have continued to see improving results during the financial year. Following the tragic accident at the Marikana mine shortly after the year end, further safety initiatives have been agreed with the Department of Mineral Resources and are currently being implemented at Kroondal. Further details of these additional safety measures are available in the Q4 2010 quarterly report.
Production
Underground production fell 4% year-on-year to 6.2 million tonnes, largely as a result of the illegal two-week strike that occurred in August 2009. The average head grade over the year was marginally higher at 2.59 g/t. Recoveries remained static at 79%. Total PGM production for the year decreased by 3% to 408,570 4E ounces (Aquarius attributable: 204,285 ounces).
Kroondal: Metal in concentrate produced (PGM ounces)
Year Ended Pt Pd Rh Au PGMs (4E) Attributable
PGMs (4E)
June 2010 240,441 121,572 44,533 2,024 408,570 204,285
June 2009 250,525 123,620 45,912 2,022 422,078 211,039
Revenue
The average achieved PGM basket price for the year increased 18% to $1,227 per 4E ounce. The gross cash margin for the year rose 113% to 32%, despite slightly lower production volumes and the marginally stronger Rand.
Operating Costs
Cash cost per ROM ton increased by 13% to R381 per ton. Consequently, cash costs per PGM ounce increased 11% to R5,769.
P&SA1 at Kroondal: Operating Costs
Rand 4E per ounce Rand 6E per ounce Rand 6E per ounce
(Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) net of by-products (Ni&Cu) FY 2010 5,769 4,720 4,587 Capital Expenditure
Stay-in-business capital expenditure at Kroondal for the 2010 financial year was R423 per 4E ounce.
P&SA2 at Marikana Platinum Mine
Safety, Health and Environmental
The 12-month rolling average DIIR for the year improved to 0.74 from 0.91 in the previous year. No fatalities were recorded in the year under review; however shortly after the year end five employees were tragically killed in a fall-of-ground incident at Marikana's 4 Shaft. Since this accident, further safety initiatives have been agreed with the Department of Mineral Resources and are currently being implemented at Marikana. Further details of these additional safety measures are available in the Q4 2010 quarterly report.
Production
Total tonnes produced decreased by 15% to 2.2 million tonnes. This was comprised of 1.5 million tonnes from underground and 714 thousand tonnes from the open pit. Production from the Marikana open pit operation declined by 42% and was compensated to a large extent by an 8% increase in volumes from underground, in line with the mine plan. The Marikana open pit is scheduled to close before the end of this calendar year. Underground production was negatively affected by the illegal two-week strike that occurred in August 2009 and by geological losses caused by the intersection of an unusually high number of potholes. The average head grade reduced to 2.65 g/t compared to 2.84 g/t in the previous year. Recoveries, however, improved from 67% to 72%. As a result of all these factors, total PGM production decreased 14% year-on-year to 135,418 4E ounces (Aquarius attributable: 67,709 4E ounces).
Marikana: Metal in concentrate produced (PGM ounces)
Year Ended Pt Pd Rh Au PGMs (4E) PGMs (4E)
attributable
June 2010 82,523 38,226 13,863 806 135,418 67,709
June 2009 97,203 43,618 16,166 950 157,938 78,969
Revenue
The average realised PGM basket price for the year increased by 19 % to $1,228 per 4E ounce. This together with an improved cost performance resulted in a 24% increase in mine revenue to R1,189 million for the year (Aquarius share: R595 million). The cash margin for the year rose to 19%, compared to -10% in 2009.
Operating Costs
Cash cost per ROM tonne increased by 6% to R434, an increase below general South African mine inflation caused by the move to more cost-effective underground mining together with an improvement in the strip ratio at the open pit late in the year. Consequently, cash costs per PGM ounce increased by 7% to R7,133 per 4E ounce.
Marikana: Operating Costs
Rand (4E) per ounce Rand (6E) per ounce Rand (6E) per ounce
(Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) net of by-products (Ni&Cu) FY 2010 7,133 5,887 5,695 Capital Expenditure
Stay-in-business capital expenditure at Marikana for the 2010 financial year was R761 per 4E ounce.
Contractor dispute with Moolman Mining
The losses anticipated by AQPSA in respect of the original Marikana project at the time of the recission of the contract with Moolman Mining have been successfully mitigated, and AQPSA has consequently recently withdrawn its damages claim against Moolman Mining and Brian Wilmot. However, the claim by AQPSA for recission of the contract remains unaffected.
As disclosed in prior announcements, this claim and Moolman Mining's remaining counterclaims are to come to trial in the near future. The trial is expected to commence on 23 August 2010.
An announcement concerning the outcome will be made at the appropriate time.
Everest Platinum Mine
Safety, Health and Environmental
The 12 month rolling DIIR for the period was 0.31, and no fatalities were recorded during the year.
Re-establishment Project and Production
At the year end, Phase 2 of the re-establishment project had progressed well with 95% of the necessary work completed.
The establishment of permanent underground services, the reclamation of infrastructure, and the equipping of declines and strike sections have all been completed. The completion of this infrastructure resulted in early delivery of ore from underground. Together with approximately 85,000 tonnes of opencast ore, a total of approximately 189,000 tonnes were hoisted during the year, most of which was mined in the final quarter of the year.
The processing plant was recommissioned in May 2010 with 150,279 tonnes processed for the year at a head grade of 3.09 g/ton. A total of 8,496 4E ounces (all attributable to Aquarius) were produced at a recovery rate of 57%. The recovery was negatively affected by the initial open pit material which was oxidized, and by challenges experienced with the plant PLC system during re-commissioning.
The overland conveyor belt and chairlift is 95% complete with final touches still being applied. Work is scheduled to be completed at the end of July 2010. Work at the Valley box cut also commenced during the final quarter. Box cut excavation and access road construction is in progress, with completion targeted for the end of August 2010.
Construction of the Chromite Spiral Plant was completed at the end of May and commissioning was completed at the end of June. The Spiral Plant is currently running within the designed criteria.
Everest: Metal in concentrate produced (PGM ounces)
Year Ended Pt Pd Rh Au PGMs (4E) PGMs (4E)
attributable
June 2010 5,098 2,655 660 84 8,496 8,496
June 2009 37,643 19,365 6,499 562 64,068 64,068
Revenue
Everest is in early ramp-up and as a result the financial metrics pertaining to it are not representative of steady-state or mine plan production, and comparatives with prior years are not meaningful. The average realised PGM basket price for period in which Everest was operating in May and June 2010 was $1,321 per 4E ounce. Mine revenue was R75 million for the year, and the cash margin was -4%.
Operating Costs
Cash cost per ROM tonne was R517 and per PGM ounce was R9,150 per 4E ounce. These costs are expected to improve materially as Everest ramps up.
Everest: Operating Costs
Rand (4E) per ounce Rand (6E) per ounce Rand (6E) per ounce
(Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) net of by-products (Ni&Cu) FY 2010 9,150 7,899 7,762 Capital Expenditure
The total re-establishment project capital (both Phase 1 and Phase 2 as previously announced) amounts to R265 million, and project expenditure to date is within budget, at a total of R217 million for the year. On-mine capital projects expenditure amounted to R 30.3 million for the year, mainly for the construction of the Chrome Spiral plant (R21.2 million), and also for the re-establishment of the main decline belts (outside the scope of the re-establishment project) and the Hoogland Environmental Impact Assessment study.
MIMOSA INVESTMENTS (Aquarius Platinum 50%)
Mimosa Platinum Mine
Safety
The DIIR for the year improved to 0.07 from 0.10 in the previous year. No fatalities were recorded.
Production
Production from underground operations increased slightly to 2.1 million tonnes. The average plant head grade decreased slightly from 3.60 g/t to 3.59 g/t. Recoveries improved from 74% in the prior year to 76% in 2010, and this resulted in PGM production for the year increasing by 11% to 199,625 4E ounces (Aquarius attributable: 99,812 ounces).
Mimosa: Metal in concentrate produced (PGM ounces)
Year Ended Pt Pd Rh Au PGMs (4E) PGMs (4E)
attributable Aquarius
June 2010 101,241 76,603 8,078 13,702 199,625 99,812
June 2009 91,520 69,423 7,170 11,909 180,022 90,011
Revenue
The average PGM basket price for the year was 7% higher at $993 per 4E ounce. This together with higher production resulted in a 43% increase in mine revenue to $252 million (Aquarius share: $126 million). The cash margin for the year was 48%.
Operating Costs
Cash costs per ROM tonne increased by 23% to $53 per tonne. Cash costs per PGM ounce also increased by 22% to $610 per 4E ounce primarily as a result of the continuing effects of the implementation of the multi-currency regime (effectively the US dollarisation of the Zimbabwe economy). After by-product credits, cash costs were $284 per PGM ounce.
Mimosa: Operating Costs
$ (4E) per ounce $ (6E) per ounce $ (6E) per ounce
(Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) net of by-products (Ni&Cu) FY 2010 610 579 284 Capital Expenditure
Development capital expenditure of $18 million was spent during the year, largely on completing the Wedza Phase 5 expansion. Stay-in-business capital expenditure amounted to $110 per 4E ounce for the year.
AQUARIUS PLATINUM (SA) CORPORATE SERVICES (PTY) LTD
Chromite Tailings Retreatment Plant (CTRP) (Aquarius Platinum 50%)
Safety, Health and Environmental
CTRP recorded a DIIR of 0 for the year.
Production
Tonnes processed increased by 19% to 293,000 tonnes. However, the average head grade fell 3% to 2.28 g/t for the year compared to 2.34 g/t in the previous year, and recoveries deteriorated from 38% in the prior year to 30% in 2010. This was largely as a result of a deterioration in the quality of plant feedstock. As detailed in the Q3 and Q4 quarterly reports, CTRP has now secured additional sources of tailings to process. As a result of these factors total PGM production in the 2010 financial year fell 6% to 6,399 4E ounces (Aquarius attributable: 3,200 ounces).
CTRP: Metal in concentrate produced (PGM ounces)
Year Ended Pt Pd Rh Au PGMs (4E) PGMs (4E)
attributable
June 2010 3,892 1,420 1,074 13 6,399 3,200
June 2009 4,145 1,512 1,151 15 6,824 3,412
Revenue
The average PGM basket price for the year was 5% higher at $1,301 per 4E ounce, and as a result of this and strong by-product revenues, total revenue rose 79% to R50 million (Aquarius attributable: R25 million). The cash margin for the year increased to 49% from 26%.
CTRP: Operating Costs
Cash costs per PGM ounce for the year increased 32% to R3,951 per 4E ounce.
CTRP: Operating Costs
Rand 4E per ounce Rand 6E per ounce Rand 6E per ounce
(Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) net of by-products (Ni&Cu) FY 2010 3,951 2,727 2,643 Capital Expenditure
Stay-in-business capital expenditure at CTRP for the 2010 financial year was R128 per 4E ounce.
Platinum Mile (Aquarius Platinum 50%)
Safety, Health and Environmental
Platinum Mile recorded a DIIR of 0 for the year.
Production
The operation processed 7.0 million tonnes in 2010, 19% less than in 2009, and the average head grade for the year was 0.58 g/t as compared to 0.67 in the prior year. However, recoveries for the period increased to 15% from 9%. As a result of these factors total PGM production for the period increased by 20% to 19,670 4E ounces (Aquarius attributable: 9,835 ounces)
In the fourth quarter, the quantity and quality of tailings deteriorated significantly, which has had a material impact on the performance and profitability of Platinum Mile. Alternative strategies to boost metal output are under investigation.
Platinum Mile: Metal in concentrate produced (PGM ounces)
Year Ended Pt Pd Rh Au PGMs (4E) PGMs (4E)
attributable
June 2010 11,446 6,015 1,789 420 19,670 9,835
June 2009 9,484 5,069 1,471 329 16,353 8,176
Revenue
The average PGM basket price for the period increased 49% to $1,278 per 4E ounce. Revenue for the period was R171 million (Aquarius attributable: R86 million). The cash margin for the period was 36%.
Platinum Mile: Operating Costs
The average cash cost per PGM ounce for the period was R5,618 per 4E ounce.
Platinum Mile: Operating Costs
Rand 4E per ounce Rand 6E per ounce Rand 6E per ounce
(Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) net of by-products (Ni&Cu) FY 2010 5,618 4,843 4,497 Capital Expenditure
Stay-in-business capital expenditure at Platinum Mile for the 2010 financial year was R68 per 4E ounce.
RIDGE MINING LIMITED
Blue Ridge Platinum Mine (Aquarius Platinum - 50%)
Safety, Health and Environmental
Regrettably, three fatalities occurred at the Blue Ridge mine during the 2010 financial year, one in December 2009 and two in separate incidents during June 2010. These were the only fatalities at Aquarius operations during the year under review. The circumstances of these fatalities were not acceptable. The 12-month rolling average DIIR for the year also deteriorated to 1.86 from 1.26 in the 2009 financial year. As a result senior management personnel changes have been implemented and a safety review and review of the Blue Ridge mine plan are underway, as announced in the Q4 quarterly report.
Following the two fatalities that occurred during June a decision was taken by Aquarius to halt all operations at the Blue Ridge mine for a two week period, during which time all employees were retrained. All codes of practice, safe operating procedures and base line risk assessments were reviewed. All employees were taken through a "Stop Think" behaviour program which included an industrial theatre performance and a workshop on the importance of reporting injury incidence. Staged mock ups were erected showing the dangers associated with 10 cardinal rules of safety. The section 54 suspension which was issued was lifted on 25 June and mining recommenced on 29 June.
Production
Blue Ridge was acquired by Aquarius in July 2009. The mine remains in project phase and all revenue and expenditure are capitalised. 711,000 tonnes were mined from underground at Blue Ridge in 2010. The average head grade for the year was 2.36 g/t and recoveries for the period were 71%. Total PGM production for the year was 58,617 4E ounces (Aquarius attributable: 29,309 ounces)
Blue Ridge: Metal in concentrate produced (PGM ounces)
Year Ended Pt Pd Rh Au PGMs (4E) PGMs (4E)
attributable
June 2010 35,179 17,340 5,525 573 58,617 29,309
Revenue
The average PGM basket price for the year was $1,183 per 4E ounce.
Update on review of Blue Ridge business plan
As set out in the Q4 2010 quarterly report, the shareholders of the Blue Ridge mine (Aquarius and Imbani Platinum) are now in the process of finalising a substantially revised Life of Mine business plan to optimise the operation with an ongoing focus on safe mining operations. Several deficiencies in the mine design as it currently stands have been identified and require addressing. The fatality that occurred in December 2009 did so partly as a result of the incompetency of the hanging wall above the original planned mining cut (the so-called "sweet cut"). This required the company to abandon the sweet cut, which caused the plant head grade to deteriorate and also resulted in larger volumes of ore and waste from the mine. This in turn caused bottlenecks in the plant which need to be resolved. The mine design itself is not optimal, with key infrastructure not installed or requiring upgrade and a second decline and third access point not established. The Blue Ridge orebody is also reasonably geologically complex and the current mine design does not allow for sufficiently high development rates and the associated proposed stoping rates. Blue Ridge is located in an area which has not historically had much of a mining industry, and as a result the available workforce is less skilled and requires higher levels of training.
This has necessitated the initiation of a fundamental redevelopment programme at the mine, which is expected to run for a 10 to 12 month period. This optimisation programme will focus on mine access, ore and waste mass flows. It will provide for a third mine access point and reinstates the construction of a second decline. Underground waste surge capacity infrastructure and aggressive on- and off-reef development will also be provided for. The redevelopment programme is focused on the efficient and sustainable operation of the mine in the medium and long term.
Optimisation of the mine may necessitate the termination of production at Blue Ridge for up to seven months. This will provide a period to be used exclusively for the implementation of fundamental mining infrastructure alterations and key development initiatives on the mine. It is believed that this option will prove the most cash-efficient. Blue Ridge will continue to be treated as a project with costs capitalised for accounting purposes throughout this process. Since the Q4 quarterly report was released Aquarius has done further analysis and is convinced that halting production as aforesaid is the most sensible option, particularly in light of the lower Rand basket price over the past three months. It must be noted that this plan has not yet been agreed by Imbani Platinum and their funders.
If the proposed optimisation plan for Blue Ridge is approved by its shareholders and implemented as described above, the expected net additional contribution that is likely to be required from Aquarius is approximately $20 million (depending on metals prices up until termination), which will be used for capital and operating expenditures, and debt service in terms of current debt schedules. This is in addition to the approximately R300 million already committed to Blue Ridge by Aquarius in terms of the acquisition in July 2009. It is proposed that the mine will have a capacity of 160,000 tonnes per month on re-opening, equivalent to approximately 140,000 4E ounces per year.
CORPORATE MATTERS
US Dollar convertible bond offering and repayment of Rand convertible bond
During the 2010 financial year Aquarius concluded a capital raising of $300 million of unsubordinated, unsecured convertible bonds, due 2015. The Bonds were issued at 100% of their principal amount and have a coupon of 4.0% per annum, payable semi-annually in arrears. The initial conversion price is $6.773 per share (which may be adjusted for dividends paid), representing a premium of 22.5% to the volume weighted average price of the Company's common shares on the London Stock Exchange (LSE) between launch and pricing, translated at a GBP-USD exchange rate of 1.653.
The proceeds of the Bonds were intended to be used to fund the early redemption of all of the Company's existing R650 million convertible bonds in accordance with their terms (at an aggregate redemption price of R747.5 million) and for general corporate purposes and business opportunities, including the construction of a chromite recovery plant at Everest.
The Bonds commenced trading on the Exchange's LSE's Professional Securities Market on 21 December 2009.
On 18 January 2010, $101 million of the Company's cash balance was used to retire the Company's existing R650 million convertible bonds and the 15% premium as aforesaid. The early redemption of the company's Rand convertible notes inclusive of the borrowing costs and the 15% premium were accounted for in the half yearly accounts to 31 December 2009.
AQPSA Appointments
Appointment of Managing Director of Aquarius Platinum (South Africa) (Pty) Ltd ("AQPSA")
Mr Anton Lubbe has been confirmed in the role of Managing Director of AQPSA, with effect from 1 August 2010. Mr Lubbe replaces Hugo H¶ll, who resigned in March for personal reasons. Mr Lubbe was previously Operations Director for Aquarius' Western Limb Operations, and has been acting as Managing Director of AQPSA since Mr H¶ll's departure. The Board thanks Mr H¶ll for his contribution to the business during his years at AQPSA.
Mr Lubbe has 29 years of mining experience, with exposure to gold, platinum, chrome and copper. He has 10 years of experience as a General Manager, three years as Divisional Director New Business for DRDGOLD, and three years contracting experience as Operations Director of JIC (Mining). He also served on the boards of DRDGOLD and its subsidiaries, and Westdawn Investments (Trading as JIC Mining). He joined AQPSA in October 2008.
Other AQPSA appointments
Paul Smith has been appointed Director: New Business, Projects and Long-Range Planning, a new AQPSA Board position. He transfers into AQPSA from Aquarius Corporate Services (South Africa), a Group company that is due to be absorbed into AQPSA in due course.
Mkhululi Duka has been appointed as Director: Human Capital, a new AQPSA Board position. Prior to this appointment he was General Manager: Human Resources and Transformation, based at Kroondal.
Abraham van Ghent has been appointed as Senior General Manager - Operations, an AQPSA Executive position responsible for operations on all AQPSA managed mines in South Africa. Prior to this appointment he was General Manager: Kroondal. A new General Manager for Kroondal will be appointed in due course.
Aquarius appointment
Gavin Mackay was appointed as Business Development & Communications Executive in February 2010, based in London. A lawyer by training, he previously held a similar position at Ferrexpo plc, prior to which he was an investment banker with JPMorgan Cazenove Limited in London.
Safety Initiatives
Subsequent to the end of the 2010 financial year, a multiple fatal accident tragically claimed the lives of five employees in a single fall-of-ground incident in 4 Shaft at Aquarius' Marikana Mine near Rustenburg in South Africa. The ensuing events have been set out in detail in a series of public announcements issued by the Company during July 2010, and summarised in full in the Q4 2010 quarterly report.
Following this accident, the Company (along with other mining companies using the same bord-and-pillar mining method as Aquarius) was instructed by the Department of Mineral Resources (DMR) to present action plans to move to more safe and conservative mining methods. Aquarius duly presented action plans in respect of Marikana 4 Shaft to the DMR on Thursday 22 July, and these were mutually agreed. Aquarius is currently rolling these new measures out at its Kroondal and Marikana mines, while it continues to review its safety practices at the Everest and Blue Ridge mines. A summary of the current generally accepted safety design methodology for mines in the Bushveld Igneous Complex, and the new initiatives and measures that AQPSA plans to implement in order to modify it to world best practice are available in the Company's Q4 2010 quarterly report.
More information on all the corporate matters can be found at www.aquariusplatinum.com
[Please refer to www.aquariusplatinum.com for statistical information]
Aquarius Platinum LimitedIncorporated in BermudaExempt company number 26290Board of DirectorsNicholas Sibley Non-executive Chairman Stuart Murray Chief Executive Officer David Dix Non-executive Tim Freshwater Non-executive Edward Haslam Non-executive
Sir William Purves Non-executive (Senior Independent Director)
Kofi Morna Non-executive Zwelakhe Mankazana Non-executive Audit/Risk CommitteeSir William Purves (Chairman)David DixEdward HaslamKofi MornaNicholas Sibley
Remuneration/Succession Planning Committee
Edward Haslam (Chairman)David DixZwelakhe MankazanaNicholas SibleyNomination Committee
The full Board comprises the Nomination Committee
Company SecretaryWilli BoehmInvestor Relations
Gavin Mackay Business Development & Communications Executive
AQPSA ManagementStuart Murray Executive Chairman Anton Lubbe Managing Director H©l¨ne Nolte Director: Finance Hulme Scholes Commercial Director Paul Smith Director: New Business, Projects and Long-Range Planning Mkhululi Duka Director: Human Capital Abraham van Ghent Senior General Manager: Operations Graham Ferreira General Manager: Group Admin & Company Secretary Wessel Phumo General Manager: Marikana Gabriel de Wet General Manager: Engineering Augustine Simbanegavi General Manager: Everest Anthony Joubert General Manager: Blue Ridge Mimosa Mine ManagementWinston Chitando Managing Director Herbert Mashanyare Technical Director Peter Chimboza Resident Director Fungai Makoni General Manager Finance & Company Secretary
Platinum Mile Management
Richard Atkinson Managing Director
Paul Swart Financial Director Issued Capital
At 30 June 2010, the Company had in issue: 463,070,936 fully paid common shares and 702,566 unlisted options.
Substantial Shareholders 30 June 2010 Number of Shares Percentage
Savannah Consortium 68,658,728 14.83
HSBC Custody Nominees (Australia) Limited 38,718,101 8.36
JP Morgan Nominees Australia Limited 34,587,626 7.47 National Nominees Limited 26,529,839 5.73 Chase Nominees Limited 25,729,854 5.56 Trading InformationISIN number BMG0440M1284ADR ISIN number US03840M2089Convertible Bond ISIN number XS0470482067Broker (LSE) (Joint) Broker (ASX) Sponsor (JSE) Liberum Capital Limited City Point, 1 Ropemaker Street, London, EC2Y 9HT Euroz Securities Rand Merchant Bank Telephone: +44 (0) 20 3100 Level 14, The (A division of FirstRand 2000 Quadrant Bank Limited) 1 William Street, 1 Merchant Place Bank of America Merrill Perth WA 6000 Cnr of Rivonia Rd and Lynch Telephone: +61 Fredman Drive, Sandton 2146 2 King Edward St (0) 8 9488 1400 Johannesburg South Africa London, EC1A 1HQ Telephone: +44 (0)20 7628 1000
Aquarius Platinum (South Africa) (Proprietary) Ltd
100% Owned(Incorporated in the Republic of South Africa)
Registration Number 2000/000341/07
1st Floor, Building 5, Harrowdene Office Park, Western Service Road, Woodmead 2191, South Africa Postal Address: PO Box 76575, Wendywood, 2144, South Africa.
Telephone: +27 (0)11 656 1140Facsimile: +27 (0)11 802 0990
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,AustraliaPostal Address: PO Box 485, South Perth, WA 6151, AustraliaTelephone: +61 (0)8 9367 5211Facsimile: +61 (0)8 9367 5233Email: info@aquariusplatinum.com
For further information please visit www.aquariusplatinum.com or contact:
In AustraliaWilli Boehm+61 (0) 8 9367 5211
In the United Kingdom and South Africa
Gavin Mackay
gavin.mackay@aquariusplatinum.com
+ 44 7909 547 042GlossaryA$ Australian Dollar Aquarius Aquarius Platinum Limited or 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 Dollar or $ Everest Everest Platinum Mine Great A PGE bearing layer within the Great Dyke Complex in Zimbabwe Dyke Reef 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 Reserves code 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)
UG2 Reef A PGE-bearing chromite layer within the Critical Zone of the Bushveld
Complex
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