AQP.L Regulatory News (AQP)

AQUARIUS PLATINUM LIMITED PRELIMINARY FULL YEAR RESULTS TO 30 JUNE 2014 Key Points: Financial - Significantly strengthened balance sheet following conclusion of rightsissue and repurchase of bonds, leaving AQP in a net cash position - $62 million improvement in headline earnings performance - Revenue marginally down by 2% to $233 million on lower prices (FY2013: $237 million) - Group mine EBITDA marginally down to $30 million (FY2013: $35 million) dueto lower prices and lower production at PlatMile tailings retreatment - Share of profit from JV entities: EBITDA $33 million, contributing netprofit $5 million - Headline loss (before exceptional charges) of $11 million at 1.13 cents pershare (FY2013: loss of $73 million at 8.80 cents per share) - Profit on repurchase of bonds $11 million - Accounting net loss after tax (to IFRS) of $13 million (1.38 cents pershare) (FY2013: loss of $288 million at 34.55 cents per share) - Mine operating net cash flow increased by $42 million to a $21 millioninflow (FY2013: outflow of $20 million) - Group cash balance at 30 June 2014 of $137 million, with a further $8million attributable to Aquarius held in JV entities Key Points: Operational - Significant improvement in Kroondal's safety performance with LTIFRimproving from 1.14 in FY2013 to 0.73 in FY2014 - Mimosa's LTIFR of 0.08 makes it the safest underground Platinum mine inSouthern Africa - Group attributable production increased by 2% to 331,642 PGM ounces (FY2013:325,103 PGM ounces) - Kroondal consistently producing at capacity levels with 6 consecutivequarters above guidance - Kroondal annual production at highest level since 2008 at in excess of430,000 PGM ounces - Mimosa performed strongly again, continuing to produce at capacity butimpacted by a low PGM Dollar price, with cash costs up 1% compared to theprevious corresponding period (pcp) - Mimosa Q4 production of >60,000 PGM ounces represents the highest everquarterly production by Mimosa - Mimosa voluntary retrenchment process completed, costs reduced by 5% - The average US Dollar PGM basket price of $1,164 was 5% lower compared tothe pcp - The average Rand basket price increased by 11% compared to the pcp due to aweaker Rand - The Rand weakened by 18% on average against the US Dollar compared to thepcp - On-mine unit cash costs at Kroondal from mature shafts increased by 3% inRand terms compared to the pcp and by 9% if the development shaft K6 isincluded in FY2014 costs Key Points: Strategic - Kroondal concluded 3 year wage agreements with representing unions at a costslightly above inflation measured by CPI - Mimosa wage costs increased by 2% - The implementation of the disposal of non-core assets announced in January2014 is on track - Agreed another extension of the Kroondal PSA by a further 4.8 milliontonnes. Commenting on the results, Jean Nel, CEO of Aquarius Platinum,said: "The 2014 financial year was a year in which Aquarius delivered on its objectives. Safety, production and cost performance at both Kroondal and Mimosa improvedsubstantially. Kroondal produced in excess of 430,000 PGM ounces for the firsttime since 2008, whilst at the same time improving its safety performancesubstantially. Also of significance is the 3 year wage agreement concludedafter year-end, once again, without any operational interruptions. Credit forKroondal's exceptional performance goes to the operational management teamlead by Rob Schroder and Wessel Phumo. Mimosa continues to deliver safety, production and costperformances ahead of guidance and is well positioned to continue delivery in2015. Following the implementation of the voluntary retrenchment program atMimosa unit cost performance is set to continue to improve sustainably. Againcredit for an excellent performance is due to the Mimosa operational team leadby Winston Chitando and Peter Chamboza. At corporate level, with overwhelming support from shareholders,AQP completed the rights offer and bond tender offer resulting in asubstantially strengthened balance sheet, with net cash, even before thepotential cash inflow from the sale of non-core assets. Whilst the year under review was a difficult year with the Platinummining sectors' challenges well published, Aquarius is proudly of a view thatsignificant progress was made in improving the quality of its operations andits balance sheet. These improvements, combined with the recently increasedmetal prices positions the company to generate free cash for shareholders,which as we have noted in the past, has been a neglected stakeholder. Againstthis backdrop Aquarius' focus will remain resolutely on continuing to improvesafety, production and cost performances across the Group, whilst carefullyassessing selected growth opportunities." Financial results: Year to 30 June 2014 Aquarius has commenced accounting for its investments in Mimosa and Blue Ridgeusing the equity accounting method from 1 July 2013 Aquarius' consolidated result for the year ended 30 June 2014 was aloss of $13 million (1.38 cents per share). Profitability at mine level(on-mine EBITDA) was $30 million, down 14% compared to $35 million in the pcpdue to the impact of strikes on PlatMile's operations as well as the inclusionof the development shaft at Kroondal, K6, in operations for the first time in2014. The result reflects continued improvement of operational performance atall operating mines, be it in a difficult and lower PGM price environment.Total production from all Aquarius operations was 331,642 PGM ounces,representing a 2% increase compared to pcp, despite the effect of the strikeaction at Anglo Platinum on PlatMile's production. Profit & Production Summary Aquarius JV Total Consolidation Aquarius operations entities adjustment Group Mine EBITDA $30M $33M $63M ($33M) $30M Revenue $233M $131M $364M ($131M) $233M Cost of sales ($231M) ($110M) ($341M) $110M ($231M) Net profit/(loss) ($18M) $5M ($13M) - ($13M) after tax PGM ozs production 220,961 110,681 331,642 - 331,642 Revenue (PGM sales, interest) for the year was $233 million, 2%lower compared to the pcp due to lower PGM metal prices and the effect thatthe Anglo Platinum strike action had on PlatMile. The PGM basket priceachieved for the year was $1,164 per PGM ounce, down 5% from the pcp. Grossmargins improved at Kroondal on higher production and a weaker Rand butmargins were lower at Mimosa due to lower Dollar PGM basket prices. Total cash cost of production was $202 million, down $7 milliondespite a 2% increase in production at Kroondal and PlatMile. Significantly,Kroondal recorded its seventh consecutive +100,000 PGM ounce productionquarter, a record for the mine. This is particularly pleasing given theongoing difficulties prevailing in the sector. On a per PGM ounce basis Dollar unit costs in South Africadecreased 7% to $870 but increased 9% in Rand terms due to the inclusion ofKroondal's K6 development shaft in operations for the first time. The unitcost for the mature Kroondal shafts increased by only 3%. In Zimbabwe the cashcost per PGM ounce was $878, a 1% increase inclusive of completing a voluntarylabour rationalisation program at a once off cost of $5.5 million. Operatingcosts were well within inflationary targets and will continue to be a point offocus particularly in the ongoing low metal price environment. Exchange rate movements continued to have a volatile effect onearnings. The Rand weakened significantly to average R10.37 to the US Dollarcompared to R8.80 in the pcp. During the year Aquarius recorded net foreignexchange gains of $2 million comprising gains on sales adjustments andrevaluation of cash, intercompany loans and pipeline debtors. Administration costs of $7 million were substantially lowerfollowing cost reduction initiatives implemented. Depreciation andamortisation for the year of $29 million was lower despite increasedproduction due to an increased resource base resulting from the extension ofmine life of PSA1 at Kroondal. Finance costs included $22 million on convertible bonds (of which$10 million was non cash representing the accretion of interest on theconvertible bond), $5 million of non-cash interest arising from the unwindingof the net present value of the rehabilitation provisions of AQPSA and $1million of other costs. Income tax expense of $0.5 million includes normal tax, deferredtax and royalties. Group Financials by Operation Kroondal Marikana Everest Mimosa PMRPGM ounces (4E) (attributable) 215,371 - - 110,681 5,590 $MRevenue 222 1 1 131 5Cost of Sales - mining, processing & admin (189) (2) (6) (96) (5)Cost of Sales - depreciation & amortisation (24) - (2) (13) (2)Gross profit/(loss) 9 (2) (7) 22 (2)Administrative costs - - - - -Foreign exchange gain/(loss) 4 - - - -Finance costs - - - - -Impairment losses - - - - -Profit on repurchase of bonds - - - - -Profit on sale of assets - - - - -Closure, transition and rehabilitation costs (3) 9 (1) - -Community share ownership trust - - - (0.5) -Indigenisation costs - - - (2) -Share of profit from joint venture entities - - - - -Profit before income tax 10 7 (7) 19 (2) Blue Ridge Corporate Total Reconciliation to Consolidated Consolidated Information PGM ounces (4E) (attributable) - - 331,642 - - $MRevenue - 4 364 (131) 233Cost of Sales - mining, processing & admin (1) - (299) 97 (202)Cost of Sales - depreciation & amortisation - - (42) 13 (29)Gross profit/(loss) (1) 4 23 (21) 2Administrative costs - (7) (7) - (7)Foreign exchange gain/(loss) - (2) 2 - 2Finance costs - (32) (32) 4 (28)Impairment losses - (3) (3) - (3)Profit on repurchase of bonds - 11 11 - 11Profit on sale of assets - 1 1 - 1Closure, transition and rehabilitation costs - - 5 - 5Community share ownership trust - - (0.5) 0.5 -Indigenisation costs - - (2) 2 -Share of profit from joint venture entities - - - 5 5Profit before income tax (1) (29) (3) (9) (13) * In the consolidated financial statements the Mimosa and BlueRidge operating segments are accounted for using the equity method. The columntitled "Reconciliation to Consolidated Information" provides a reconciliationof the segment information used by the CEO to the consolidated financialinformation. Cash balances Group cash at 30 June 2014 was $137 million, up $59 million fromJune 2013. The increase in cash was mainly attributable to $226 millionproceeds from the rights issue to fund the repurchase of convertible bondswith a nominal value of $173 million at a cost of $162 million. In addition tothis, the group paid $28 million to fund its capital expenditure program, paid$13 million in interest and received $22 million of dividends from Mimosa. A key indicator to the improved performance of Aquarius' SouthAfrican assets is the $41 million turnaround in net cash flows from operatingactivities from a deficit of $20 million in the pcp to a surplus of $21million in FY2014. Cash held at Mimosa and Blue Ridge which is no longer classified asgroup cash due to the adoption of equity accounting was $16 million (100%basis). Joint venture entities Mimosa Investments Limited Mimosa recorded an EBITDA profit attributable to Aquarius of $34million and a net profit before tax of $10 million. The result was achieved onproduction of 110,681 PGM ounces attributable to Aquarius. Despite consistentproduction, EBITDA was lower than expected due to lower Dollar metal prices aswell as labour retrenchment costs of $5.5 million. Unlike Kroondal whichbenefits when the Rand weakens against the Dollar, Mimosa has no such relief.Mimosa's PGM basket price for the year was $1,133 per PGM ounce, 6% lowercompared to the pcp. Unit cash costs for the year were 1% higher at $878 perPGM ounce, inclusive of labour retrenchment costs of $5.5 million. Cash held in Mimosa at 30 June 2014 was $14 million (100%). Mimosa's financial result is provided in the Group Financials tableon page 4 and its operational performance is discussed under the OperatingReview section of this announcement. Blue Ridge Platinum (Pty) Ltd Blue Ridge recorded a net loss after tax of $5 million. The resultreflects care and maintenance and interest costs for the year. Adoption of IFRS 11 Joint Arrangements Following a change to International Financial Reporting Standard 11 (IFRS11)governing the accounting for jointly controlled investments, Aquarius hascommenced accounting for its investments in Mimosa and Blue Ridge using theequity accounting method from 1 July 2013. This differs from the previousapproach whereby Aquarius proportionately consolidated its investments inMimosa and Ridge. The equity method recognises the Group's share of net assetsand contribution to profit and loss as single line items in the statement offinancial position and statement of comprehensive income. This differs fromthe previous approach which included each line item such as revenue, cost ofsales, expenses etc as part of the consolidated results. This change has notresulted in a change to the net assets of the Group. Aquarius Platinum Limited Consolidated Income Statement Year ended 30 June 2014 $'000 Note Half year ended Year ended 30/06/14 31/12/13 30/06/14 30/06/13 Attributable Production (4E PGM 163,628 168,014 331,642 325,103 ounces) Revenue (i) 119,883 113,173 233,056 237,115 Cost of Sales (including D&A) (ii) (110,407) (120,751) (231,158) (248,726) Gross profit/(loss) 9,476 (7,578) 1,898 (11,611) Other income 102 72 174 278 Administrative costs (iii) (3,017) (4,336) (7,353) (12,368) Foreign exchange gain/(loss) (iv) (888) 2,731 1,843 (19,323) Finance costs (v) (12,796) (15,295) (28,091) (26,669) Impairment losses (vi) (597) (2,487) (3,084) (214,111) Profit on repurchase of bonds 10,925 - 10,925 - Profit on sale of assets 684 (31) 653 - Closure, transition and rehabilitation reversal/(cost) (vii) 5,342 - 5,342 (54,538) Share of profit/(loss) from joint venture entities (viii) 4,889 166 5,055 (2,698) Profit/(loss) before tax 14,120 (26,758) (12,638) (341,040) Income tax (expense)/benefit (ix) (3,274) 2,730 (544) 53,127 Net profit/(loss) 10,846 (24,028) (13,182) (287,913) Loss per share (basic - cents) 3.73 (5.11) (1.38) (34.55) Notes on the June 2014 Consolidated Income Statement (i) Sales revenue was marginally lower despite increased productiondue to lower PGM prices compared to the pcp. (ii) Aggregate cost of sales were $17 million lower. In SouthAfrica unit costs per PGM ounce decreased 7% in Dollar terms but increased by9% in Rand terms due to the inclusion of the Kroondal development shaft, K6,for the first time in FY2014. (iii) Corporate administration costs are lower due to costreduction initiatives. (iv) Foreign exchange gains of $2 million were recorded on salesadjustments and revaluation of cash, intercompany loans and pipeline debtors. (v) Finance costs of $28 million comprises interest and non-cashaccretion of the convertible bond of $22 million, non-cash interest arisingfrom the unwinding of the net present value of the rehabilitation provisionsof AQPSA of $5 million and other costs of $1 million. (vi) Includes impairment charges relating to TKO and Investments inJV Entities. (vii) A downwards revision of the rehabilitation provision was madefollowing the annual reassessment of the cost of performing rehabilitationwork. (viii) Contribution from JV entities represents a $10 millionMimosa net profit offset by a $5 million loss incurred at Blue Ridge. (ix) Income tax expense of $0.5 million comprises normal tax,deferred tax and royalties. Aquarius Platinum Limited Consolidated Cash Flow Statement Year ended 30 June 2014 $'000 Half year ended Financial year ended Note 30/06/14 31/12/13 30/06/14 30/06/13 Net operating cash flow (i) 16,536 4,706 21,242 (20,392)Net investing cash flow (ii) (16,235) (10,989) (27,224) (20,630)Net financing cash flow (iii) 52,209 9,912 62,121 (35,419)Net increase/(decrease) in cash held 52,510 3,629 56,139 (76,441)Opening cash balance 82,998 77,773 77,773 166,652Exchange rate movement on cash (iv) 1,312 1,596 2,908 (12,438)Closing cash balance (v) 136,820 82,998 136,820 77,773 Notes on the June 2014 Consolidated Cash Flow Statement (i) Net operating cash flow includes net inflow from operations $16million, interest received $6 million and income tax paid $1 million. (ii) Net investing cash flow includes payments for mine developmentand development costs $28 million and proceeds from sale of property, plantand equipment $1 million. (iii) Net financing cash flow includes interest paid $13 million,net proceeds from rights issue and repurchase of bonds $55 million, proceedsfrom borrowings $3 million, repayment of borrowings $4 million and dividendsfrom joint venture entities $22 million. (iv) Exchange rate movement reflects movement of other currenciesagainst the US Dollar. (v) Excludes $8 million attributable cash held at Mimosa and Blue Ridge. Aquarius Platinum Limited Consolidated Balance Sheet At 30 June 2014 $'000 Financial year ended Note 30/06/14 30/06/13AssetsCash assets 136,820 77,773Current receivables (i) 30,104 34,622Other current assets (ii) 15,246 15,237Property, plant and equipment (iii) 100,122 105,030Mining assets (iv) 109,089 125,816Intangibles (v) 54,499 59,449Investments in joint venture entities (vi) 230,410 242,079Other non-current assets (vii) 41,185 43,668Total assets 717,475 703,674LiabilitiesCurrent liabilities (viii) 41,338 42,845Non-current payables (ix) 2,065 2,665Non-current interest-bearing liabilities (x) 117,704 268,788Other non-current liabilities (xi) 82,600 93,434Total liabilities 243,707 407,732Net assets 473,768 295,942EquityIssued capital 73,216 24,343Treasury shares (26,239) (26,526)Reserves 781,692 639,881Accumulated losses (360,450) (347,402)Non-controlling interests 5,549 5,646Total equity 473,768 295,942 Notes on the June 2014 Consolidated Balance Sheet (i) Reflects debtors receivable on PGM concentrate sales. (ii) Reflects PGM concentrate inventory, consumables, stores and criticalspares. (iii) Represents fixed assets within the Group. (iv) Includes group's mining assets at Kroondal, Marikana, Everest, CTRP andPlatmile. (v) Includes intangibles relating to acquisition of Platmile Resources. (vi) Represents investments in joint venture entities Mimosa and Blue Ridge. (vii) Includes recoverable portion of rehabilitation provision at P&SA sitesof $9 million, cash contributed to rehabilitation trusts $17 million anddeferred tax asset $15 million. (viii) Includes trade creditors $34 million, AQPSA finance leases $3 millionand leave provisions $4 million. (ix) Reflects P&SA partners' right of recovery of rehabilitation provisions. (x) Reflects convertible bond of $118 million. (xi) Includes deferred tax liabilities $17 million and provision for closurecosts $66 million. OPERATING REVIEW This section contains summarised operating reviews of each of theCompany's operations. Full operating statistics are provided on page 16 ofthis report, and other updates relevant to all operations can be found underCorporate Matters on page 14. In addition, further detail on each of theoperations can be obtained from the quarterly and half-year reports releasedby the Company throughout the 2014 financial year which are available on theCompany's website at 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 36% to 0.73 per200,000 man hours from 1.14 the previous year - Production improved by 9% to 7.2m tonnes - Volumes processed increased to 7.2m tonnes - Head grade deteriorated slightly to 2.39 g/t - Recoveries decreased by 1% to 78% due to reduced head grade - PGM production increased by 6% to 430,743 PGM ounces - Revenue increased by 20% to R4.6 billion compared to theprevious financial year due improved production coupled with 12% improvementin the Rand basket price - Mining cash costs increased by 7% to R547 per tonne (makingKroondal the most efficient underground platinum mine in South Africa on a R/tbasis), and costs per PGM ounce from mature shafts increased by 3% andinclusive of K6 development shaft by 9% to R9,115 - Kroondal's cash margin for the period rose from 12% to 15% Commentary - Kroondal Safety, Health and Environment The Kroondal operations ended the year with a much improved DIIRcompared to last year. The 36% improvement in safety is attributable to theembracement of the My Life, My Responsibility, I will Comply Safety campaignlaunched in late September 2013 by all employees. The focus remains on lowenergy incidents and general behaviour. Operations Kroondal operations were stable throughout the five month strikethat gripped the rest of the industry in the Rustenburg area. This was initself a significant achievement and credit to our employees, organised labourrepresentatives and management. In July 2014 AQPSA concluded three year wage agreements with itswork force at Kroondal agreeing an increase slightly above inflation (CPI)without the loss of a single production shift, a result on which the Kroondalwork force and the company is rightfully proud. Operating Cash Costs Cash costs at Kroondal increased by 9% to R9,115 per 4E ouncefollowing the inclusion of the Kroondal development shaft K6 in operations forthe first time. AQPSA Operating costs per ounce (R/oz) 6E net of 4E 6E by-products (Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni&Cu)Kroondal 9,115 7,486 7,277 AQPSA Capital expenditure Stay-in-business capital expenditure was in line with the mine planand mobile equipment replacement schedule. The K6 Shaft project cost wasapproximately R89 million for FY2014 and is complete with the exception of thefinal power reticulation from the local authority. Kroondal (100% basis)(R'000 unless otherwise stated) Total Per 4E ozOngoing Infrastructure Establishment 314,472 730Project Capital (K6 shaft) 89,530 208Mobile Equipment 129,008 300Total 533,011 1,237 P&SA2 at Marikana (Aquarius Platinum - 50%) Given the continuing low Rand PGM basket prices, Marikana continueson care 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 deteriorated to 0.08 per 200,000man hours from 0.05 in the previous year - Production increased by 4% to 2.512m tonnes - Volumes processed increased by 3% to 2.453m tonnes - Head grade deteriorated slightly to 3.65g/t - Recoveries deteriorated slightly to 77% - PGM production increased by 2% to 221,358 PGM ounces - Revenue decreased by 4% to $260 million due to lower metalprices - Mining cash costs decreased 3% to $77 per tonne, and PGM ouncecost decreased by 2% to $849 before retrenchment costs. - Mining cash costs constant at $79 per tonne, PGM ounce costincreased by 1% to $878 after retrenchment costs. - Mimosa's cash margin for the period decreased to 24% from 26% Commentary Safety, Health and Environment No fatalities occurred at Mimosa during the year. Three lost-timeinjuries were reported with a commensurate deterioration in the DIIR. Operations The Mimosa mine operated very well during the year, enjoyingcordial industrial relations and meeting most of its production targets. Regulatory and fiscal environment During the year, the Zimbabwean political and regulatoryenvironment remained challenging for all mining companies operating in thecountry. Indigenisation During the course of the year in question Mimosa had frequentinteraction with the Ministry of Indigenisation and continues to workpro-actively towards a sustainable solution but to date no agreements ordefinitive terms have been agreed between Mimosa and the Ministry ofIndigenisation. Taxation New Income Tax Act The proposed new Income Tax Bill was gazetted in November 2012. Thebill was presented to Parliament for the first reading in May 2013. It passedthe second and third reading in Parliament on 25 June 2013 after amendmentsfrom all relevant stakeholders. However, the President raised reservationswhich Parliament is still considering. Meanwhile, the income tax rate has remained at 25% of taxableincome, and withholding tax on technical fees and dividends at 15% and 10%respectively. Finance Act, 2014 The Finance Act which gives legal effect to the proposals madethrough the Budget Statement for 2014 was gazetted on the 4 April 2014. Thenew requirements legislated in the Finance Act include: - Contributions or donations to Community Ownership Trust are nowallowable for tax deduction subject to approval of the Trust by the Minister. - Proposed payment of VAT on un-beneficiated Platinum (15%)effective 1 January 2015. - Disallowing of royalties as a deductible expense against taxableincome with effect from 1 January 2014 Discussions between the mining sector and the Government ofZimbabwe in relation to the last 2 points above are ongoing with a view toreaching a solution that will result in these new taxes not being implemented.Shareholders will be updated as to any material progress as soon as ispractical. Operating Cash Costs Operating costs increased slightly by 1% from the prior costplatform mainly as a result of retrenchment costs following a labourrationalisation exercise carried out during the year. Operating cash costs per ounce ($/oz) before voluntary retrenchmentcosts 4E 6E 4E net of (Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) by-products (Ni, Cu & Co)Mimosa 849 803 575 Operating cash costs per ounce ($/oz) after voluntary retrenchmentcosts 4E 6E 4E net of (Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) by-products (Ni, Cu & Co)Mimosa 878 830 604 Capital expenditure Stay in business capital expenditure at Mimosa was $27 million($123 per PGM ounce), spent mainly on mobile equipment, drill rigs and LHDs,the conveyor belt extension, down dip development and housing projects. TAILINGS OPERATIONS Platinum Mile (Aquarius Platinum - 91.7%) - Material processed decreased by 29% to 2.441m tonnes - Recoveries decreased by 50% to 7% - Production decreased by 56% to 5,590 PGM ounces - Cash costs increased by 39% to R9,165 per PGM ounce. - Revenue decreased by 56% to R52 million - The cash margin for the period was negative 2%, a decrease from25% the previous year Commentary Platinum Mile: The result for the year was severely impacted by strike action atAnglo Platinum's operations in the Rustenburg area starting on 25 January 2014and lasting until 24 June 2014. No meaningful analogies can be inferred bycomparing annual numbers. The coarse grinding expansion at the operation was successfullyelectromechanically commissioned at a capital cost of R26 million. Thebenefits of this expansion on production yields should become evident in the2015 financial year. Operating cash costs per ounce (R/oz) 4E 6E 4E net of (Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) by-products (Ni, Cu& Co)PMR 9,165 7,919 7,364 Chromite Tailings Retreatment Plant (CTRP) (Aquarius Platinum - 50%)This operation remains on care and maintenance. CORPORATE MATTERS Tender Offer and Rights Issue On 7 April 2014, Aquarius Platinum Limited announced a tender offerto purchase a maximum of $225 million in principal amount of convertible bondsof the current $298 million in principal amount of the convertible bondsoutstanding at a repurchase price of $92,000 per $100,000 in principal amountof existing convertible bonds. The aggregate nominal amount of convertiblebonds validly tendered pursuant to the tender offer was $172.6 million. The repurchase price, which together with accrued interest totalled$165.7 million, was paid to security holders in May 2014. The company advised that the tender offer would be financed uponthe successful completion of a rights issue to finance part or all of theamount payable by the company for the existing convertible bonds accepted forrepurchase pursuant to the Tender offer. The company received valid acceptances in respect of 931,250,197rights issue shares, representing approximately 95.39 per cent of the totalnumber of rights issue shares offered to qualifying shareholders pursuant tothe rights issue announced by the company on 7 April 2014. The companyconfirms that the shortfall for the remaining 44,956,709 rights issue shareswere placed by the underwriters. The rights issue grossed $226.1 millionthrough the issuance of 976,206,906 new common shares. Following completion of the rights issue, the company's issuedshare capital consists of 1,464,310,359 common shares. The company holds17,047,787 common shares as treasury shares in accordance with Bermudan law.Therefore, the total number of voting rights in the company is 1,447,262,572.This figure may be used by shareholders as the denominator for thecalculations by which they determine if they are required to notify theirinterest in, or a change in their interest in, the company under the FCA'sDisclosure and Transparency Rules. Full details of the tender offer and Rights Issue can be found atwww.aquariusplatinum.com Update on Sale of Assets The company released details of the planned sale of two non-coreassets being its interest in the Blue Ridge Mine ("Blue Ridge Transaction")and its interest in the Kruidfontein prospecting right on 30 January 2014("Kruidfontein Transaction"). In the release the company confirmed itsexpectation that the conditions precedent would be fulfilled in H2 calendar2014. The Kruidfontein Transaction was conditional only upon obtaining certainapprovals from the DMR. Shareholders are advised that these approvalsincluding Section 11 approval were obtained in June 2014 and are currentlyawaiting registration at the Department of Mineral Resources titles office.Upon completion the Purchaser is obliged to, before 1 December 2014, payAquarius a total cash consideration of $27 million. Upon receipt of theproceeds Aquarius is obliged to pay the previous owners of the Kruidfonteinprospecting right $10.8 million in cash or Aquarius shares, at Aquarius' soleelection. The Blue Ridge Transaction is subject to the fulfilment of 34conditions precedent. Substantial progress has been made in terms offulfilling the conditions, but a number of conditions have yet to befulfilled. Aquarius' legal advice is that there appears to be no reason whythe remaining conditions precedent should not be fulfilled in due course. Thisnotwithstanding, shareholders are cautioned that the Blue Ridge Transactioninvolves many parties, and requires the approval of numerous regulators inSouth Africa as well as in the People's Republic of China (PRC) and henceexecution risk remains significant. This time line remains the company's base case expectation. Work inrelation to the fulfilment of the conditions precedent, noted in the releases,continues. Shareholders will be informed of any material developments in thisregard as soon as is practical. Appointment of Chief Operating Officer Mr. Rob Schroder, Managing Director of AQPSA, has been appointed tothe newly created position of Chief Operating Officer (COO) of the AquariusGroup. Mr. Schroder will continue with his role as MD of AQPSA and will haveoversight over the Group's entire mining operations. The appointment of MrSchroder as COO reflects the confidence which the Board of Aquarius has in MrSchroder and is due recognition for the key role which Mr Schroder continuesto fulfil across the Group's operations. More information on all corporate matters can be found atwww.aquariusplatinum.com See www.aquariusplatinum.com for statistical information Aquarius Platinum LimitedIncorporated in Bermuda Exempt company number 26290 Board of Directors Nicholas Sibley Non-executive ChairmanJean Nel Chief Executive OfficerDavid Dix Non-executiveTim Freshwater Non-executive (Senior Independent Director)Edward Haslam Non-executiveKofi Morna Non-executiveZwelakhe Mankazana Non-executiveSonja de Bruyn Non-executiveSebotsa Audit/Risk Committee David Dix (Chairman)Tim FreshwaterEdward HaslamKofi MornaNicholas Sibley Remuneration Committee Edward Haslam (Chairman)David DixZwelakhe MankazanaNicholas Sibley Nomination Committee Sonja de Bruyn Sebotsa (Chairman)Edward HaslamTim FreshwaterKofi MornaWilli Boehm Company Secretary Willi Boehm AQPSA Management Robert Schroder Managing DirectorJean Nel Executive DirectorWessel Phumo General Manager: KroondalMimosa Mine Management Winston Chitando ChairmanPeter Chimboza Resident DirectorFungai Makoni Managing DirectorPlatinum Mile Management Richard Atkinson Managing DirectorPaul Swart Financial DirectorIssued capital At 30 June 2014, the Company had on issue 1,464,310,359 fully paidcommon shares. Substantial shareholders 30 June 2014 Number of shares PercentageHSBC Custody Nominees (Australia) Limited 110,254,065 7.53JP Morgan Nominees Australia Limited 69,919,771 4.77 Primary Australian Securities Trading InformationListing: Exchange (AQP.AX)Premium London Stock Exchange ISIN number BMG0440M1284Listing: (AQP.L)Secondary JSE Limited (AQP.ZA) ADR ISIN number US03840M2089Listing: Convertible bond ISIN number XS0470482067 Broker (LSE) Broker (ASX) Sponsor (JSE) Barclays Euroz Securities Rand Merchant Bank5 The North Colonnade Level 18 Alluvion (A division ofCanary Wharf 58 Mounts Bay Road, FirstRand BankLondon E14 4BB Perth WA 6000 Limited)Telephone: +44 (0) 20 Telephone: +61 (0) 8 1 Merchant Place7623 2323 9488 1400 Cnr of Rivonia Rd and Fredman Drive, Sandton 2196 Johannesburg South Africa Aquarius Platinum (South Africa) (Proprietary) Ltd 100% owned(Incorporated in the Republic of South Africa) Registration Number 2000/000341/07 1st Floor, Block C, Rosebank Office Park, 181 Jan Smuts Avenue, Rosebank,South Africa Postal PO Box 7840, Centurion, 0046, South AfricaAddress:Telephone: +27 (0)10 001 2848Facsimile: +27 (0)12 001 2070Aquarius 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 PerthWA 6151, Australia Postal PO Box 485, South Perth, WA 6951, AustraliaAddress:Telephone: +61 (0)8 9367 5211Facsimile: +61 (0)8 9367 5233Email: info@aquariusplatinum.com For further information please visit www.aquariusplatinum.com orcontact: 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 DollarAquarius or Aquarius Platinum LimitedAQPAPS Aquarius Platinum Corporate Services Pty LtdAQPSA Aquarius Platinum (South Africa) (Pty) LtdACS(SA) Aquarius Platinum (SA) Corporate Services (Pty) LtdBEE Black Economic EmpowermentBRPM Blue Ridge Platinum MineCTRP 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 workedDIIR Disabling injury incidence rate, being the number of lost-timeinjuries expressed as a rate per 200,000 man-hours workedDME formerly South African Government Department of Minerals and EnergyDMR South African Government Department of Mineral Resources, formerly the DMEDollar or $ United States DollarEverest Everest Platinum MineGreat Dyke A PGE-bearing layer within the Great Dyke Complex in Zimbabwe ReefGoZ Government of Zimbabweg/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 ReservesJSE Johannesburg Stock ExchangeKroondal Kroondal Platinum Mine or P&SA1 at KroondalLHD Load haul dump machineLTIFR Lost Time Injury Frequency RateMarikana Marikana Platinum Mine or P&SA2 at MarikanaMimosa Mimosa Mining Company (Private) LimitedNUM National Union of Mineworkersnm Not measuredpcp previous corresponding periodPGE(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 ReefPlatMile Platinum Mile Resources (Pty) LtdPSA1 Pooling & Sharing Agreement between AQPSA and RPM Ltd on KroondalPSA2 Pooling & Sharing Agreement between AQPSA and RPM Ltd on MarikanaR or Rand South African RandRidge Ridge Mining LimitedROM 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 LimitedTonne 1 metric tonne (1,000kg)TARP Trigger Action Response ProcedureUG2 Reef A PGE-bearing chromite layer within the Critical Zone of the Bushveld Complex