AQP.L Regulatory News (AQP)

AQUARIUS PLATINUM LIMITED - Production Results to 30 June 2015

PR Newswire

London, July 28

AQUARIUS PLATINUM LIMITED

Production Results to 30 June 2015

Highlights

Commenting on the results, Jean Nel, CEO Aquarius Platinum said:

The fourth quarter was characterised by a particularly good performance from both Aquarius operating mines. Both Kroondal and Mimosa again improved safety, delivered all time fourth quarter production records and reduced costs, in what remains a challenging operating environment. The performance is testimony to a disciplined approach to operations and the operating teams at Kroondal and Mimosa deserve much credit for this. From a macro perspective, the lower metal prices which prevailed during the period and especially post quarter end will not only require an increased focus on safety, cost and production discipline, an approach which Aquarius will remain committed to, but also a focussed assessment of the viability of each shaft at each operating mine to ensure the sustainability of the business in a low metal price environment.

Production by mine attributable to Aquarius (Operating mines)

Average PGM basket prices achieved at Aquarius operations updated Braam

Aquarius Group quarterly attributable production (PGM ounces) to 30 June 2015

See http://www.aquariusplatinum.com/ for graph

PGM markets update

Precious metals suffered a weak end to the quarter, with the price of Palladium decreasing to almost a two-year low, ending the quarter at $675 per ounce (down 8%). Platinum also moved lower across the quarter, but avoided the weakness towards the end of June, stabilising to finish the quarter at $1,080 per ounce (down 6%), and continued to weaken post quarter end. The fall across both precious metals was largely driven by ETP outflows and weaker than expected Chinese consumption.

Platinum imports in China declined for the second straight month in May and fell 15% m/m, but rose a modest 2% y/y. Volumes traded on the Shanghai Gold Exchange rose 50% y/y and 18% m/m in May, as local prices fell 21% y/y. Although some positivity was seen as appetite responded to a lower price environment, concerns increased as it was insufficient to offer a firmer cushion.

Palladium imports in China also continued to fall, declining for the eighth straight month in June. Imports fell by 27% y/y and 36% m/m, falling to their lowest level since February. Imports at 36koz takes this year’s run rate to 48.6koz from 63koz last year, and the year-to-date imports are down 30% y/y. Underlying demand from the auto sector has softened further in recent months. Palladium has now fallen below $700/oz, to its lowest level since July 2013. ETP outflows resumed in June after a two-month hiatus, and outflows reached 106.3koz for the year.

The average Rand-Dollar exchange rate weakened during the quarter by 1.5% from R11.97 to R12.15. Since then, the Rand has weakened further 2% in the first two week of July, and trending around a level of R12.5.

12-month individual PGM prices to 30 June 2015 (US$/oz)

See http://www.aquariusplatinum.com/ for graph

12-month PGM basket prices to 30 June 2015 (US$ and ZAR per PGM basket ounce)

See http://www.aquariusplatinum.com/ for graph

Operating Review Summary (all numbers on 100% basis)

AQUARIUS PLATINUM (SOUTH AFRICA) (PTY) LTD (Aquarius Platinum - 100%)

P&SA1 at Kroondal (Aquarius Platinum – 50%)

Kroondal: Production, Cash Cost and Price Analysis

See http://www.aquariusplatinum.com/ for graph

Commentary

Kroondal:

There were no fatalities during the quarter. The 12 month rolling DIIR remained stable at 0.65 from the previous quarter but the 3 months DIIR rate improved to 0.47 from 0.70. One Section 54 instruction was issued during the quarter.

Production at Kroondal for the quarter was up 11% to 1,755,000.

Kroondal achieved its tenth consecutive +105,000 PGM production quarter. Unit costs in Rand terms continued to respond positively down 4% quarter on quarter and down 2% compared to the previous corresponding period June 2014 in spite of South Africa’s inflation rate of approximately 6%.

Operations at K6 Shaft remained challenging. During the quarter the installation of two new conveyor belts and a tip were completed, which is expected to positively impact production in coming quarters. Kwezi shaft still have reduced ends due to poor ground conditions and continue to mine consistently during the quarter. Simunye shaft’s TMM fleet stabilized during the quarter with the addition of the last replacement machines. The newly installed chairlift at Simunye was licensed during the quarter and will enhance efficiencies. Bambanani production volumes were stable during the quarter. Recently installed chairlift are expected to be licensed during Q1 of FY16. Ventilation constraints continue to be resolved at Kopaneng with the raise boring of the new ventilation shaft now under way.

Successful trials now completed to mitigate the treating of iron-rich ultramafic pegmatite (IRUP) ore being mined at Kwezi have resulted in a new reagent regime being implemented. Recoveries are constant and the blending of Kwezi ore is constant as well. The processing plants produced stably throughout the quarter.

During the quarter the Kroondal work force maintained a positive outlook with open communication channels on all levels.

AQPSA Operating cash costs per ounce (Rand)

Kroondal mine: reconciliation of cash costs per 4E ounce

MIMOSA INVESTMENTS (Aquarius Platinum – 50%)

Mimosa: Production, Cash Cost and Price Analysis

See http://www.aquariusplatinum.com/ for graph

Operating cash costs per ounce

Unit cash costs per PGM ounce (before by-product credits) were slightly below the previous quarter.

Capital expenditure

The total capital expenditure for the quarter was $7.2 million. Expenditure was incurred mainly on mobile equipment, drill rigs and LHDs, the conveyor belt extension and down dip development.

TAILINGS OPERATION

Platinum Mile (Aquarius Platinum – 91.7%)

The maintenance work as reported upon in the previous quarter has had the desired effect of increased plant availability and as a result recoveries and production yields increased accordingly.

Revenue for the quarter remained consistent despite lower basket prices due to higher production.

Operating cash costs per ounce

MINES UNDER CARE AND MAINTENANCE

P&SA2 at Marikana (Aquarius Platinum – 50%)

Given the continuing low Rand PGM basket prices, Marikana 4 shaft, the remaining operating shaft, and the processing plant at Marikana continue on care and maintenance until further notice.

Chromite Tailings Retreatment Plant (CTRP) (Aquarius Platinum – 50%)

This operation remains on care and maintenance.

CORPORATE MATTERS

Sale of Assets: Everest

Aquarius announced on 10 February 2015 that its subsidiary, AQPSA, had entered into an agreement to sell its entire interest in the Everest Mine and ancillary mining and processing infrastructure and immovable properties to Northam Platinum Limited, for an aggregate cash consideration of R450 million, to be completed in two parts, being R400 million for the concentrator and other mining assets of Everest Mine (Part A) plus R50 million for the Everest Mining Right (Part B). On 26 June 2015, R400 million and a further R55 million representing VAT collected on sale of Everest (Part A) was received by Aquarius. The R55 million which forms part of the Group's present cash will be paid out in July 2015.

Part B of the disposal process is subject to the consent of the Minister of Mineral Resources in terms of section 11 of the Mineral and Petroleum Resources Development Act. The section 11 application has been submitted to the Department of Mineral Resources. Should the Ministerial Consent not be obtained, the first part of the Disposal will not be unwound.

Statistical information: Kroondal P&SA1

See http://www.aquariusplatinum.com/ for table

Statistical information: Mimosa

See http://www.aquariusplatinum.com/ for table

Statistical information: Platinum Mile

See http://www.aquariusplatinum.com/ for table

Issued capital

At 30 June 2015, the Company had on issue: 1,505,339,079 fully paid common shares.

Aquarius Platinum (South Africa) (Proprietary) Ltd

100% owned(Incorporated in the Republic of South Africa)

Registration Number 2000/000341/07

1st Floor, Block C, Rosebank Office Park, 181 Jan Smuts Avenue, Rosebank, South AfricaPostal Address: PO Box 7840, Centurion, 0046, South Africa

Telephone: +27 (0)10 001 2848

Facsimile: +27 (0)12 001 2070

Aquarius Platinum Corporate Services Pty Ltd

100% Owned

(Incorporated in Australia)

ACN 094 425 555

Level 1, Suite 6, SOUTHPOINT, 100 Mill Point Road, 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: