AQP.L Regulatory News (AQP)

AQUARIUS PLATINUM LIMITED Preliminary Full Year Results to 30 June 2013 Key Points: Financial Mine EBITDA increased by 145% to $70 million (FY2012: $29 million) Revenue decreased by 24% to $371 million (FY2012: $486 million) Headline loss (before exceptional charges) of $61 million (FY2012: headlineloss $154 million) Reported net loss of $288 million (61.13 cents loss per share) after impairmentlosses of $226 million Group cash balance at FY close of $103 million No dividend declared Key Points: Operational Group attributable production, excluding operations on care and maintenance,increased by 13% to 325,103 PGM ounces for the full year US Dollar PGM price weakened by 6%, offset in South Africa by weaker Rand-USDollar exchange rate Average Rand Basket Price up 7% year-on-year at just over R10,940 per PGM ouncedue to Rand weakness. Weighted average on-mine unit cash costs in South Africa decreased by 15% inRand terms Key Points: Strategic Implementation of revised support system at Kroondal completed Move to Owner Operator model at Kroondal completed Focus on turnaround at Kroondal evidenced by improved operating results -Kroondal EBITDA up 12 fold compared to pcp Kroondal mine life increased a further 3.5 years to 9.5 years followingagreement with PSA1 partner Amplats. All unprofitable operations have been placed on care and maintenance for theduration of the current downturn Commenting on the results, Jean Nel, CEO of Aquarius Platinum said: "The year under review was exceptionally challenging for Aquarius, a year inwhich we had to close loss-making mines, face disruptive industrial action,implement an owner-operator model at Kroondal and revise the hanging wallsupport regime. Further, we had to contend with on-going regulatory uncertaintyin an environment in which metal prices continued to materially underperformconsensus forecast. That said, we have learnt much during these difficult times and have emerged asa leaner and more focussed business, fully intent on continuing the positivemomentum into the new year. As we expect the difficult operating conditions andlow metal prices to continue in the new financial year, our focus will remainon improving operational performance and cash generation." Financial results: Year to 30 June 2013 Aquarius' consolidated result for the financial year ended 30 June 2013 was aloss of $288 million (61.13 cents per share) after an impairment charge of $226million. On Mine EBITDA was $70 million, a 145% increase compared to the pcp. Headline Earnings, Profit & Production Comparison by Half Year & Full Year (FY2013 & 2012) 1st 2nd half half FY2013 FY2012 Movement FY 2013 FY 2013 Headline earnings/(loss) ($56M) ($5M) ($61M) ($154M) $93M EBITDA $22M $48M $70M $29M $41M Foreign exchange gain/(loss) ($20M) $1M ($19M) ($95M) $76M Net loss after tax, before ($57M) ($5M) ($62M) ($154M) $92Mimpairment Impairment ($127M) ($99M) ($226M) ($4M) ($222M) Net loss after impairment and ($184M) ($104M) ($288M) ($158M) ($130M)tax PGM ozs production (mines in 156,787 168,316 325,103 287,035 38,068operation) Production (mines on care & - - - 124,363 (124,363)maintenance) Total production 156,787 168,316 325,103 411,398 (86,295) Profitability at mine level (on-mine EBITDA) was $70 million, up 145% comparedto $29 million in the pcp. The financial year's result was one of twocontrasting half years. The first six months saw an EBITDA of $22 millionrecorded in spite of significant challenges encountered including the closureof Marikana and Everest, the transition to owner operated mining at Kroondaland the implementation of the revised support system. These factors not onlyrequired Management time but also consumed cash. This resulted in a netoperating cash outflow for the half year to December 2012 of $38 million. Incontrast, the second half of the financial year was one of consolidation of thegains achieved in the first half. The second half returned an EBITDA of $48million, a 125% increase over the first six months due to higher production,lower operating costs and the conclusion of the issues referred to above. Netoperating cash for the second six months was a net operating inflow of $60million, a $98 million turnaround. Revenue (PGM sales, interest) for the year was $371 million, down 24% from $486million in the pcp. The decreased revenue was a result of lower production,down 86,295 PGM ounces from the pcp due to the closure of Everest and Marikana.Measured on a PGM ounce basis, revenue decreased to $1,230 per PGM ounce from$1,310 per PGM ounce in the pcp. Total cash cost of sales was $307 million, down $158 million due to lowerproduction following the closure of high costs mines Everest and Marikana. On aper PGM ounce basis this represented a 19% decrease in Dollar terms (and 15% inRand terms) as a result of the closure of high costs mines, increasedefficiencies gained from the successful implementation of the revised supportsystem and the change to owner operated mine at Kroondal. Group attributable production for the year was 325,103 PGM ounces, 21% lowercompared to the pcp due to the closure of Everest and Marikana mines.Significantly, Aquarius' continuing mines exceeded last year's production.Kroondal recorded a 21% increase, Mimosa recorded a 3% increase and Platmilerecorded a 1% decrease on a 100% basis. These were significant, particularlyfor Kroondal which was faced with a number of challenging issues and structuralchanges. [See www.aquariusplatinum.com for graph] Gross profit increased to $13 million from a gross loss of $45 million in thepcp, a $58 million turnaround due largely to the closure of high cost minesEverest and Marikana and improved operating performances across the group. Average unit cash costs were significantly lower compared to the pcp due to theclosure of high cost mines Everest and Marikana and improved production fromon-going mines. In Dollar terms, average unit cash costs were $912 per 4Eounce, down 19% compared to pcp. The average cash cost per PGM ounce at theSouth African operations decreased by 15% to R8,242, equivalent to $936 per PGMounce at the average Rand exchange rate for the year. The decrease in US dollarterms was 25%, as a result of a weaker Rand relative to the Dollar during theyear. A 13% increase in PGM production in South Africa from operational minesalso contributed to lower unit costs as the ability to spread fix productioncosts increased. In Zimbabwe the cash cost per PGM ounce was $867, a 13%increase. Increases in cash costs were driven by inflationary factors affectinginputs such as labour, steel, diesel, surface lease fees and certain once-offexpenses including an inventory write off and stockpile build up costsfollowing the May 2012 fire. Exchange rate movements continued to have a volatile effect on earnings. TheRand weakened significantly over the 2013 financial year, starting the year atR8.15 to the US Dollar and ending it at R10.00, a 23% fall. The weakness in theRand can be attributed in part to the expected tapering of Quantitative Easingthat has been proposed by Federal Reserve Chairman, Ben Bernanke. This saw anoutflow of capital from emerging markets and investors increasingly lookingtowards the US economy as a possible investment destination. The other part ofthe Rand weakness can be attributed to the structural problems in the SouthAfrican economy. The labour issues in the mining sector also added to negativeinvestor sentiment. The Rand averaged R8.80 to the US Dollar during the year,14% weaker than the average of R7.74 recorded in the prior financial year. During the year Aquarius recorded net foreign exchange losses of $19 million.This comprised gains of $15 million on sales adjustments at EBITDA level offsetby a FX loss of $24 million arising on the closure of a currency contract takenout to fix the exchange rate covering the potential R1.2 billion purchase ofBooysendal, and a FX loss of $10 million on pipeline advances. Financial Year 2013: Rand US Dollar Exchange Rate [See www.aquariusplatinum.com for graph] Corporate administration expenses of $13 million were comparable to the priorperiod. Finance costs for the year of $31 million comprised $29 million onconvertible notes and bank borrowings, and $2 million of non-cash interestarising from the unwinding of the net present value of the rehabilitationprovisions of AQPSA. Amortisation and depreciation of $51 million was underbudget in line with lower production. Income tax benefit of $44 million comprises a $51 million deferred tax credit,offset by $4 million normal tax, $2 million withholding tax and $1 millionroyalties. Group Financials by Operation Kroondal Marikana Everest Mimosa PMR CTRP Blue Corporate Total Ridge PGM ounces(4E) 203,249 - - 108,936 12,596 322 - - 325,103(attributable) $M Revenue 217 1 1 133 13 - - 5 371 Cost of Sales- mining, (193) (2) (4) (96) (9) - (2) - (307)processing &admin Cost of Sales- depreciation (32) (1) (3) (12) (3) - - - (51)& amortisation Gross profit/ (8) (2) (5) 25 - - (2) 5 13(loss) Corporate - - - - - - - (13) (13)administration Foreignexchange gain/ 12 - - - 1 - - (32) (19)(loss) Finance costs - - - - - - - (31) (31) Impairment - (19) (86) - (12) - (14) (95) (226)losses Closure andtransition (3) (41) (10) - - - - - (55)costs Communityshare - - - (1) - - - - (1)ownershiptrust Profit before 1 (62) (101) 24 (11) - (16) (166) (332)income tax Cash Balances Net operating cash flows for the year generated by the group's miningoperations of $22 million were comparable to the pcp. Other cash flowsincluded $54 million for mine development, $15 million refund of deposit paidon the Booysendal acquisition, $14 million interest paid, $24 million foreignexchange loss on currency contract and $10 million repayment of borrowings. Group cash balance at 30 June 2013 was $103 million representing a decrease of$77 million over the pcp, but a significant increase from the $83 million athalf year end on 31 December 2012. Group Debt Group interest bearing debt (excluding pipeline advances) at 30 June 2013 of$300 million comprised $268 million convertible notes, $5 million AQPSAequipment leases and $27 million bank loans at subsidiary level. Impairment assessment of mines An impairment charge of $226 million against the carrying value of the Group'smining assets was charged to the income statement. This comprised $127 millionthat was written off in the half-year to December 2012 and a further $99million written off in the half-year to June 2013. Of the $99 million writtenoff in the second half, $86 million relates to the Everest mine, $2 million toPlatmile and $11 million to other mineral rights. A summary of the impairment charges is set out below: 1st 2ndAsset half half FY2013 FY 2013 FY 2013 Afarak $84M - $84M Everest - $86M $86M Marikana $19M - $19M Platmile $10M $2M $12M Blue Ridge $13M - $13M Other mineral $1M $11M $12Mrights Total $127M $99M $226M Aquarius Platinum Limited Consolidated Income Statement Year ended 30 June 2013 $'000 Half year ended Year ended Note 30/06/13 31/12/12 30/06/13 30/06/12 Attributable Production (4E PGM 168,316 156,787 325,103 411,398 ounces) Revenue (i) 191,286 179,262 370,548 485,736 Cost of Sales (ii) (175,232) (182,578) (357,810) (531,169) (including D&A) Gross profit/(loss) 16,054 (3,316) 12,738 (45,433) Other income 172 106 278 2,076 Administrative costs (iii) (5,706) (7,218) (12,924) (11,950) Foreign exchange loss (iv) 863 (20,309) (19,446) (95,001) Finance costs (v) (14,930) (15,887) (30,817) (34,674) Impairment losses (vi) (98,470) (127,496) (225,966) (3,983) Closure, transition and rehabilitation (vii) (37,534) (17,004) (54,538) - costs Community share - (1,500) (1,500) - ownership trust Profit/(loss) before (139,551) (192,624) (332,175) (188,965) tax Income tax benefit (viii) 35,930 8,332 44,262 30,678 Net profit/(loss) (103,621) (184,292) (287,913) (158,287) Loss per share (basic (22.56) (38.57) (61.13) (33.77) - cents) Notes on the June 2013 Consolidated Income Statement Sales revenue decrease reflects closure of Everest and Marikana mines and a lowPGM basket price. Aggregate cost of sales was lower due to the closure of Everest and Marikanamines. Group cash costs in unit costs per PGM ounce decreased by 19% in Dollarterms. In South Africa unit costs per PGM ounce decreased 25% in Dollar termsand 15% in Rand terms due to a 14% average decrease in the value of the Randcompared to the Dollar. Decreased unit costs reflected the closure of highcosts mines Everest and Marikana. Corporate administration costs are comparable to the prior period. Foreign exchange loss of $19 million includes a $24 million loss arising on theclosure of a currency contract taken out to fix the exchange rate covering thepotential R1.2 billion purchase of Booysendal, a $15 million gain on adjustingrevenue recorded at time of production at Kroondal, Marikana and CTRP torealised receipts received at the end of the four month pipeline and a $10million loss on pipeline advances. Finance costs of $31 million comprised interest of $29 million on convertiblenotes and bank borrowings and $2 million of non-cash interest arising from theunwinding of the net present value of the rehabilitation provisions of AQPSA. Includes impairment charges for Everest, Marikana, Blue Ridge, Plat Mile andother mining rights. Includes $14 million Everest and Marikana closure costs, $4 million Kroondaltransition costs from contractor to owner operator and $37 million Marikanarehabilitation costs following a re-estimate of the rehabilitation liability. Income tax benefit of $44 million comprises $51 million deferred tax credit,offset by $4 million normal tax, $2 million withholding tax and $1 millionroyalties. Aquarius Platinum Limited Consolidated Cash flow Statement Year ended 30 June 2013 $'000 Half year ended Financial year ended Note: 30/06/13 31/12/12 30/06/13 30/06/12 Net operating cash flow (i) 60,384 (38,465) 21,919 22,270 Net investing cash flow (ii) (11,817) (26,752) (38,569) (120,079) Net financing cash flow (iii) (11,627) (36,275) (47,902) (30,439) Net increase/(decrease) in cash held 36,940 (101,492) (64,552) (128,248) Opening cash balance 83,330 180,088 180,088 328,083 Exchange rate movement on cash (iv) (17,338) 4,734 (12,604) (19,747) Closing cash balance 102,932 83,330 102,932 180,088 Notes on the June 2013 Consolidated Cash flow Statement Net operating cash flow includes net inflow from operations $51 million,closure and transition costs $28 million, interest received $6 million andincome tax paid $8 million. Net investing cash flow includes payments for mine development and developmentcosts $54 million and refund of deposit on Booysendal acquisition $15 million. Net financing cash flow includes interest paid $14 million, foreign exchangeloss on currency contract $24 million and repayment of borrowings $10 million. Exchange rate movement reflects movement of other currencies against the USDollar. Aquarius Platinum Limited Consolidated Balance Sheet At 30 June 2013 $'000 Financial year ended Note: 30/06/13 30/06/12 Assets Cash assets 102,932 180,088 Current receivables (i) 58,424 87,100 Other current assets (ii) 41,254 44,258 Property, plant and equipment (iii) 261,222 276,195 Mining assets (iv) 160,795 437,574 Other non-current assets (v) 80,845 88,093 Intangibles (vi) 59,449 87,882 Total assets 764,921 1,201,190 Liabilities Current liabilities (vii) 78,037 113,466 Non-current payables (viii) 7,121 4,204 Non-current interest-bearing liabilities (ix) 268,788 265,526 Other non-current liabilities (x) 115,033 141,349 Total liabilities 468,979 524,545 Net assets 295,942 676,645 Equity Issued capital 24,370 23,516 Unissued shares - 2,436 Treasury shares (26,526) (18,128) Reserves 639,854 722,734 Accumulated losses (347,402) (60,195) Non-controlling interests 5,646 6,282 Total equity 295,942 676,645 Notes on the June 2013 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, BlueRidge, CTRP and Platmile. Includes recoverable portion of rehabilitation provision at P&SA sites of $10million, cash contributed to Rehabilitation Trusts of $17 million, listedinvestments of $3 million and $29 million owed by the RBZ to Mimosa relating tothe previous requirements to repatriate US Dollar proceeds on metals sales tothe RBZ. Includes intangibles relating to acquisition of Platmile Resources. Includes trade creditors $46 million and Blue Ridge bank loans $25 million,which is not guaranteed by Aquarius . Reflects P&SA partners' right of recovery of rehabilitation provisions. Includes convertible notes of $268 million and AQPSA vehicle leases of $1million. Reflects deferred tax liabilities of $38 million and provision for closurecosts of $77 million. OPERATING REVIEW This section contains summarised operating reviews of each of the Company'soperations. Full operating statistics are provided on page 15 of this report,and other updates relevant to all operations can be found under CorporateMatters on page 14. In addition, further detail on each of the operations canbe obtained from the quarterly and half-yearly reports released by the Companythroughout the 2013 financial year which are available on the Company'swebsite, www.aquariusplatinum.com. AQUARIUS PLATINUM (SOUTH AFRICA) (PTY) LTD ("AQPSA") (Aquarius Platinum - 100%) P&SA 1 at Kroondal (Aquarius Platinum - 50%) 12-month rolling average DIIR improved to 1.14 per 200,000 man hours from 1.20the previous year Production improved by 17% to 6.6m tonnes Volumes processed increased to 6.6m tonnes Head grade increased to 2.41 g/t Recoveries increased by 1% to 79% due to improved quality and improve plantstability PGM production increased by 21% to 406,497 PGM ounces Revenue increased by 39% to R3.8 billion compared to the previous financialyear due improved production coupled with 6% improvement in the Rand basketprice Mining cash costs decreased by 2% to R513 per tonne, and costs per PGM ounce by5% to R8,343 Kroondal's cash margin for the period rose from -6% to 12% Commentary - Kroondal Safety, Health and Environment The Kroondal operations ended the year with slightly better DIIR compared tolast year. The main contributor on safety has been low energy incidents thatwere encountered and were generally behaviour based. Another potentialcontributor was that employees' mind set were affected by the recurringindustrial actions in the surrounding area. Regrettably, one fatality occurred at Kroondal during the year when a RockDrill Operator Mr. Raohang Ramakhetha employed by Precrete, was struck by afall of ground during the drilling operations of long anchor support. Operations Kroondal operations started the financial year being disrupted by theindustrial action at Kwezi shaft which was an extension of labour unrest in thearea. Subsequently industrial relations at Kroondal have improved significantlyand Kroondal continues to improve quarter by quarter after this unfortunateincident. During the year Kroondal operations completed the roll out of the revisedsupport regime on all shafts with the exception of Bambanani shaft. This shaftwill be completed during the 2014 financial year once equipment deliveries arecompleted. The transition from contractor to owner operator was also completed this yearon time and below budget. Encouragingly, employees have accepted the transitionwhich is evidenced by the positive labour relations environment that prevailedat Kroondal during the time where the Rustenburg region underwent some of theworst industrial unrest the region has ever seen. In June 2013 AQPSA also concluded one year wage agreements with its work forceat Kroondal agreeing an increase slightly above inflation (6%) without the lossof a single production shift, a result which the Kroondal work force and thecompany is rightfully proud. Operating Cash Costs Cash costs at Kroondal improved by 5% to R8,343 per 4E ounce mainly as a resultof the increased volumes. 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 8,343 6,851 6,700 AQPSA Capital expenditure Stay-in-business capital expenditure was in line with the mine plan and mobileequipment replacement schedule. The K6 Shaft project cost was approximatelyR172m for FY2013 and will require a further R88 million to complete the wholeproject in FY2014. Kroondal (100% basis) (R'000 unless otherwise stated) Total Per 4E oz Ongoing Infrastructure Establishment 227,861 561 Project Capital (K6 shaft) 172,579 425 Mobile Equipment 142,295 350 Total 542,735 1,336 P&SA2 at Marikana (Aquarius Platinum - 50%) Given the continuing low Rand PGM basket prices, Marikana 4 shaft (theremaining operating shaft) and the processing plant at Marikana continue oncare and maintenance until further notice. Everest MineSimilarly the Everest mine remains on care and maintenance until furthernotice. MIMOSA INVESTMENTS (Aquarius Platinum - 50%) Mimosa Platinum Mine 12-month rolling average DIIR improved to 0.05 per 200,000 man hours from 0.24in the previous year Production increased by 7% to 2.412m tonnes Volumes processed increased by 2% to 2.381m tonnes Head grade improved slightly to 3.66g/t Recoveries increased slightly to 78% PGM production increased by 3% to 217,871 PGM ounces Revenue decreased by 7% to $266 million due to depressed metal prices Mining cash costs increased by 13% to $79 per tonne, PGM ounce cost increasedby 13% to $867 Mimosa's cash margin for the period decreased to 26% from 46% Commentary Safety, Health and Environment No fatalities occurred at Mimosa during the year. Two lost-time injuries werereported with a commensurate improvement in the DIIR. Operations The Mimosa mine operated very well during the year, meeting most of itsproduction targets. However, the Zimbabwean political and regulatoryenvironment remained challenging for all mining companies operating in thecountry. Discussions covering the draft minerals policy at Chamber of Mines level areongoing. Indigenisation A non-binding Indigenisation term sheet was signed on 14 December 2012. Theterm sheet sets out the key details of the indigenisation plan and paves wayfor the drafting of detailed agreements that will facilitate the implementationof the plan. No progress has been made beyond the term sheet signed anddiscussions on the way forward are still in progress. Taxation The proposed new Income Tax Bill was gazetted in November 2012. The bill waspresented to Parliament for the first reading in May 2013. It passed the secondand third reading in Parliament on 25 June 2013 after amendments from allrelevant stakeholders. The new bill is expected to become law effective 1January 2014 once signed by the President. The income tax rate has remained at 25% of taxable income, and withholding taxon technical fees and dividends at 15% and 10% respectively. Operating Cash Costs Operating costs increased by 13% from the pcp as a result of: increased labour costs increased surface rental fees of $1.3 million stockpile build up costs following the fire that occurred in May 2012 of $1.4million above budget consumption of chemicals and reagents due to variabilitychallenges in the quality of the fine depressant, $1.2 million certain one off costs, including inventory write-off ($2.2 million) Cash costs increased by 1% in the second half of the year to $870 per PGM ouncefrom $864 per PGM ounce in the first half despite the annual wage increase of7.5% becoming effective in January 2013. Operating cash costs per ounce ($/oz) 4E 6E 4E net of by-products (Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni, Cu & Co) Mimosa 867 819 537 Capital expenditure Stay In Business Capital expenditure at Mimosa was $32 million ($148 per PGMounce), spent mainly on mobile equipment, drill rigs and LHDs, the conveyorbelt extension, down dip development and housing projects. TAILINGS OPERATIONS Platinum Mile (Aquarius Platinum - 91.7%) Material processed decreased by 28% to 3.446m tonnes Recoveries decreased by 13% to 14% Production decreased by 1% to 12,596 PGM ounces Cash costs increased by 2% to R6,606 per PGM ounce. Revenue increased by 18% to R118 million for the financial year The cash margin for the period was 25%, an increase from 13% the previous year Commentary Platinum Mile: The improved cash margin for the year was as a result of improved Rand basketprices and continuous focus and improvement of the fine grinding circuits atthe operation. The coarse grinding expansion at the operation is progressing within budget andshould come into operation in the first quarter of 2014. The grinding expansionshould yield an additional approximately 480 PGM ounces per month and the totalcapital cost for this expansion is expected to be around R20 million. 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 6,606 5,716 5,145 Chromite Tailings Retreatment Plant (CTRP) (Aquarius Platinum - 50%)This operation remains on care and maintenance. CORPORATE MATTERS Issue of Shares to Support Black Economic Empowerment (BEE) Partners On 4 October 2012 the Company provided a limited guarantee and pledge to assistin preserving the black economic empowerment (BEE) credentials of Aquarius.This limited guarantee and pledge was released in January 2013. Following thedecrease in the Aquarius share price during the second half of the financialyear, Aquarius agreed to reinstate the limited guarantee and pledge provided tothe BEE Partners' financiers for 10.2 million shares on identical terms andconditions. The Board of Aquarius considers that it is in the interests ofAquarius, and in line with its ongoing commitment to comply with the BEE andregulatory framework in South Africa, to assist the BEE Partners to preservetheir remaining shareholding in Aquarius. Booysendal Sale of Rights Agreement Lapses The Company advised that the Sale Agreement concerning rights at BooysendalSouth entered into with Northam Platinum Limited and its subsidiaries lapsed.The condition precedent that Section 102 approval be granted by the Departmentof Mineral Resources prior to close of business on 30 April 2013 had not beenfulfilled. Extension of the Kroondal PSA The Company reached agreement with a wholly owned subsidiary of Anglo AmericanPlatinum (Amplats) to extend the Kroondal PSA arrangement. The agreementincreases Kroondal's life-of-mine by 3 years from 6.5 years to 9.5 years. Wage agreements reached at Kroondal Aquarius' wholly owned subsidiary, Aquarius Platinum (South Africa)(Proprietary) Limited concluded a wage agreement with the National Union ofMineworkers in relation to its members employed at the Kroondal mine. AQPSAalso reached a wage agreement with Solidarity representing Kroondal's Cat A,skilled workforce. Both agreements came into effect from 1 July 2013 and willremain in place for one year. The successful conclusion of the wage agreement is a significant positivedevelopment for the company, particularly in the difficult environment theplatinum sector is currently experiencing. AQPSA is extremely proud of itsworkforce which continued to work uninterruptedly to maintain its operatingperformance throughout the negotiation process. Mimosa Equity accounting FY2014 Following a change to the International Financial Reporting Standards 11(IFRS11) governing the accounting for jointly controlled investments, Aquariushas commenced accounting for its investment in Mimosa and Ridge as aninvestment in an associate under the equity accounting method from 1 July 2013.This differs from the present approach whereby Aquarius proportionatelyconsolidates its investment in Mimosa and Ridge. The equity method recognisesthe Group's share of net assets and contribution to profit and loss as singleline items in the statement of financial position and statement ofcomprehensive income. This differs from the previous approach which includedeach line item such as revenue, cost of sales, expenses etc as part of theconsolidated results. This change will not result in a change to the netassets of the Group. Whilst Aquarius' after tax result remains identical under both reportingformats, it is important to note that Aquarius' reported cash position fromJuly 2013 will now only reflect cash from controlled entities and will nolonger include cash held in associate companies such as Mimosa and Ridge.Aquarius' net investment in Mimosa and Ridge will be disclosed in the balancesheet as "Investment in associates." More information on all the 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 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 Bruin Sebotsa Non-executive Audit/Risk Committee David Dix (Chairman) Edward Haslam Tim Freshwater Kofi Morna Nicholas Sibley Remuneration/Succession Planning Committee Edward Haslam (Chairman) David Dix Zwelakhe Mankazana Nicholas Sibley Nomination Committee Sonja de Bruin Sebotsa (Chairman)Edward HaslamTim Freshwater Kofi Morna Willi Boehm Company Secretary Willi Boehm AQPSA Management Sonja de Bruin Sebotsa Non-executive Chairman Robert Schroder Managing Director Jean Nel Executive Director Graham Ferreira Finance Director Wessel Phumo General Manager: Kroondal Mimosa Mine Management Winston Chitando Chairman Herbert Mashanyare Technical Director Peter Chimboza Resident Director Fungai Makoni General Manager Finance & Company Secretary Platinum Mile Management Richard Atkinson Managing Director Paul Swart Financial Director Issued Capital At 30 June 2013, the Company had on issue: 486,851,336 fully paid common sharesand 120,000 unlisted options. Substantial Shareholders 30 June 2013 Number of Shares Percentage HSBC Custody Nominees (Australia) Limited 30,192,061 6.20 Chase Nominees Limited 29,419,456 6.04 JP Morgan Nominees Australia Limited 25,631,711 5.26 Main Listing: Australian Securities Exchange Trading Information (AQP.AX) Secondary London Stock Exchange (AQP.L) ISIN number BMG0440M1284Listing: Secondary JSE Limited (AQP.ZA) ADR ISIN number US03840M2089Listing: Convertible Bond ISIN number XS0470482067 Broker (LSE) (Joint) Broker (ASX) Sponsor (JSE) Liberum CapitalLimitedRopemaker Place,Level 12 Euroz Securities Rand Merchant Bank25 Ropemaker Street, Level 18 Alluvion (A division of FirstRand Bank 58 Mounts Bay Road, Limited)London, EC2Y 9LY Perth WA 6000 1 Merchant PlaceTelephone: +44 (0) 20 Telephone: +61 (0) 8 Cnr of Rivonia Rd & Fredman3100 2000 9488 1400 Drive, Sandton 2196 Johannesburg South AfricaBarclays5 The North ColonnadeCanary WharfLondon E14 4BBTel: +44 (0) 20 76232323 Aquarius Platinum (South Africa) (Proprietary) Ltd 100% owned(Incorporated in the Republic of South Africa) Registration Number 2000/000341/07 1st Floor, Block C, Rosebank Office Park, 181 Jan Smuts Avenue, Rosebank, SouthAfricaPostal Address: PO Box 7840, Centurion, 0046, South Africa Telephone: +27 (0) 10 001 2848 Facsimile: +27 (0) 12 001 2070 Aquarius Platinum Corporate Services Pty Ltd 100% Owned (Incorporated in Australia) ACN 094 425 555 Level 4, Suite 5, South Shore Centre, 85 The Esplanade, South Perth WA 6151,Australia Postal Address: PO Box 485, South Perth WA 6951, Australia Telephone: +61 (0) 8 9367 5211 Facsimile: +61 (0) 8 9367 5233 Email: info@aquariusplatinum.com For further information please visit www.aquariusplatinum.com or contact: In the United Kingdom and South Africa: In Australia:Jean Nel+27 (0) 10 001 2848 Willi Boehm +61 (0) 8 9367 5211 Glossary A$ Australian Dollar Aquarius Aquarius Platinum Limitedor AQP APS Aquarius Platinum Corporate Services Pty Ltd AQPSA Aquarius Platinum (South Africa) (Pty) Ltd ACS(SA) Aquarius Platinum (SA) Corporate Services (Pty) Ltd BEE Black Economic Empowerment BRPM Blue Ridge Platinum Mine CTRP Chrome Tailings Retreatment Operation. Consortium comprising Aquarius Platinum (SA) (Corporate Services) (Pty) Limited (ASACS), Ivanhoe Nickel and Platinum Limited and Sylvania South Africa (Pty) Ltd (SLVSA). DIFR Disabling injury frequency rate, being the number of lost-time injuries expressed as a rate per 1,000,000 man-hours worked DIIR Disabling injury incidence rate, being the number of lost-time injuries expressed as a rate per 200,000 man-hours worked DME formerly South African Government Department of Minerals and Energy DMR South African Government Department of Mineral Resources, formerly the DME Dollar United States Dollaror $ Everest Everest Platinum Mine Great A PGE-bearing layer within the Great Dyke Complex in ZimbabweDykeReef 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 ROM Run of mine. The ore from mining which is fed to the concentrator plant. This is usually a mixture of UG2 ore and waste. RPM Rustenburg Platinum Mines Limited, a subsidiary of Anglo PlatinumLimited Limited Tonne 1 metric tonne (1,000kg) TARP Trigger Action Response Procedure UG2 Reef A PGE-bearing chromite layer within the Critical Zone of the Bushveld Complex