AQP.L Regulatory News (AQP)

Aquarius Platinum Limited Production Results to 31 December 2014 Highlights- Attributable production from operating mines up 2% quarter-on-quarter, up 5% compared to previous corresponding period (pcp). - Kroondal records its 8th consecutive +105,000 PGM oz quarter - Mimosa attains a new quarterly production record at 60,842 PGM ozs - Highest attributable quarterly production for a quarter from Kroondal, Mimosa and Plat Mile combined - Average PGM basket price decreased 10% for the quarter - down 4% compared to pcp - The Rand weakened against the US Dollar by 4% on average quarter-on-quarter - down 8% compared to pcp - Cash costs at Kroondal decreased 1% to R8,925 per PGM ounce quarter-on-quarter - up 1% compared to pcp - Cash costs at Mimosa decreased 4% to $781 per PGM ounce quarter-on-quarter - down 7% compared to pcp - Surface stockpiles: Kroondal 160,000 tonnes, Mimosa 181,000 tonnes - Sale of Kruidfontein completed resulting in cash inflow of $27 million - Cash balance at quarter end of $164million with a further $8 million attributable to Aquarius in JV entities. Q2 2015 Operating Results Summary Kroondal Mimosa Platinum Mile 4E PGM Production Total (100% basis) 111,115 60,842 2,996 Attributable 55,557 30,421 2,996 4E Basket Price R/oz 12,186 - 12,233 $/oz 1,090 1,100 1,090 Cash Costs (4E basis) R/oz 8,925 - 7,500 $/oz 798 781 668 Cash Margin (%) 5 26 14 Stay-in-Business Capex R/oz 1,002 - - $/oz 90 137 - Commenting on the results, Jean Nel, CEO Aquarius Platinum said: Both Kroondal and Mimosa delivered excellent production and cost performancesin the quarter, with Mimosa recording its highest ever quarterly production andKroondal delivering a record 8th consecutive quarter of above 105 000 4E oz'sproduction. The increased production, coupled with excellent cost managementenabled Aquarius to generate positive operational cash flows despite a sharpdrop in PGM prices which fell by 10% in US$ terms and 8% in Rand terms. Theoperating teams under the leadership of Rob Schroder deserve much credit forthe performance. Aquarius' view remains that, attractive longer term fundamentalsnotwithstanding, a material increase in PGM prices is unlikely in the shortterm given muted demand growth and continued supply of metal from unprofitablemining operations in South Africa. This assessment informs Aquarius' statedfocus on consistent operational improvements, strengthening its balance sheetand restrained capital allocation. Aquarius is committed not to produceunprofitable ounces. In this regard Aquarius will continue to focus onoperational efficiencies and excellence to improve margins. As part of our year-end results presentation in August 2014, Aquarius advisedthat a number of incremental growth projects had been identified which are indifferent phases of assessment. During the quarter work on the projectscontinued. A progress update will be included in the interim resultsannouncement on 11 February 2015. Production by mine Quarter endedPGMs (4E) Dec 2014 Sept 2014 % Change Dec 2013 % Change Kroondal 111,115 112,248 -1 110,303 1 Mimosa 60,842 57,799 5 55,586 9 Platinum Mile 2,996 1,831 64 1,583 89 Total 174,953 171,878 2 167,472 4 Production by mine attributable to Aquarius (Operating mines) Quarter endedPGMs (4E) Dec 2014 Sept 2014 % Change Dec 2013 % Change Kroondal 55,557 56,124 -1 55,152 1 Mimosa 30,421 28,900 5 27,793 9 Platinum Mile 2,996 1,831 64 1,583 89 Total 88,974 86,855 2 84,528 5 Aquarius Group quarterly attributable production (PGM ounces) to 31 December2014 See www.aquariusplatinum.com for graph Market Summary The platinum price continued to fall in the fourth quarter, not only setting2014 lows, but testing their lowest levels since July 2009, falling below$1,200 per ounce level. It finished at $1,208 per ounce (6% lower over thequarter). Palladium prices were more robust gaining 3% during last quarter andclosing the year at $798 per ounce. Platinum finished lower for a variety of reasons including a drag of fallinggold prices and a sizable quantum of above ground stocks. Auto-related demandhas shown signs of firming across Europe, amplified by the implementation ofEuro 6 legislation, and jewellery demand has been responsive to lower prices.China's platinum imports have softened and have not been offset by imports intoHong Kong. After being dragged lower alongside the rest of the PGM complex, palladium hasmanaged to recover and traded, at times, above the $800 per ounce level.Destocking helped China's palladium imports to recover during 2014, with theaverage monthly imports reaching 65 000 ounces compared with 60 000 ounces in2013. Speculative positioning remained relatively elevated in Nymex palladiumand ETPs were close to the record high set at the end of November, whichimplied potential for some profit-taking. Further, palladium ETP holdings havealso proved to be a source of supply as well as demand over the quarter. Rand-Dollar exchange rate The average Rand-Dollar exchange rate weakened during the quarter, falling by4% from R10.71 to R11.18 to the US dollar. Since then, the Rand has weakenedfurther to average R11.60in the first three weeks of January. The average Rand basket price decreased 8% quarter-on-quarter, and the spotprice by 2% over the period. The US Dollar weighted average group basket pricedecreased by 10% to $1,097 per 4E PGM ounce compared to the previous quarter.The average South African basket price at AQPSA's operations was R12,189 perPGM ounce for the period. Subsequent to the end of the quarter, the PGM basketprice has consolidated to average R12,421 per PGM ounce for the first threeweeks of January 2015. 12-month individual PGM prices to December 2014 (US$/oz)12-month PGM basket prices to December 2014 (US$ and ZAR per PGM basket ounce) See www.aquariusplatinum.com for graphs 12-month Rand-Dollar exchange rate to December 2014 (ZAR/US$) See www.aquariusplatinum.com for graph Average PGM basket prices achieved at Aquarius operations Quarter endedUS$ per PGM ounce (4E) Dec 2014 Sept 2014 % Change Dec 2013 % Change Kroondal 1,090 1,239 (12) 1,145 (5) Mimosa 1,111 1,200 (7) 1,126 (1) Platinum Mile 1,090 1,202 (9) 1,117 (2) Weighted Avg. 1,097 1,225 (10) 1,138 (4) Operating Review Summary (all numbers on 100% basis) AQUARIUS PLATINUM (SOUTH AFRICA) (PTY) LTD (Aquarius Platinum - 100%) P&SA 1 at Kroondal (Aquarius Platinum - 50%) 12-month rolling average DIIR per 200,000 man hours deteriorated to 0.62 from0.55 in the previous quarter Production decreased to 1,807,000 tonnes from 2,013,000 tonnes Head grade improved from 2.37 g/t to 2.41 g/t Recoveries improved by 1% to 79% Volumes processed decreased to 1,814,000 tonnes, down 4% quarter-on-quarter Stockpiles at the end of the quarter totalled approximately 160,000 tonnes,down 7,000 tonnes PGM production decreased by 1% to 111,115 PGM ounces Revenue decreased by 17% to R1,046 million quarter-on-quarter due to lower Randprices and a negative sales adjustment of R87 million due to lower metal pricesquarter on quarter Mining cash costs increased by 2% to R547 per tonne, due to lower volumes Unit cost per PGM ounce reduced by 1% to R8,925 per PGM ounce due to improvedgrade and recovery as well as stock pile adjustment Kroondal's cash margin for the period decreased from 20% to 5% due to thenegative sales adjustment and lower basket prices Kroondal: Production, Cash Cost and Price Analysis See www.aquariusplatinum.com for graph Commentary As previously reported, regrettably a fatal incident occurred on 11 October2014 when Mr Pedro Tafulane Nhabinde, a Team Leader at Kwezi Shaft, tragicallylost his life whilst barring during safe declaration. Our deepest condolencesgo to his family and friends. The number of injuries increased from 12 to 29 quarter on quarter and the 12Rolling DIIR Rate deteriorated from 0.55 to 0.62. The deterioration on safetytook place despite a focussed safety campaign during the quarter. Safetycampaigns have been re-energised in January 2015. During the quarter threeSection 54 instructions were issued resulting in approximately 103,000 tons oflost production. Tonnes mined for the quarter was 10% lower at 1,807,000 tonnes due primarily tothe three Section 54 instructions issued by the DMR. In spite of these factors,Kroondal achieved its eighth consecutive +105,000 PGM production quarter. Unitcosts continued to respond positively down 1% quarter on quarter and up 1%compared to the previous corresponding period December 2013 in spite of SouthAfrica's inflation rate of approximately 6%. Operations at K6 Shaft remained challenging due to poor ground that still needsrehabilitation in order to get the belt infrastructure installed as well as ahigh incident of potholes. Kwezi shaft has been experiencing big falls ofground and all ends have been reduced for safety. Simunye shaft is miningthrough a dyke intersection. Bambanani have mined successfully through a shearzone. Kopaneng shaft production has remained steady since the undergroundworkshop and new chairlift have been commissioned. Various trials to mitigate the treating of iron-rich ultramafic pegmatite(IRUP) ore being mined at Kwezi has resulted in a potential solution comprisingblending the material, changing reagents and increasing the floatationretention time in the process plants. Recoveries improved by 2% quarter onquarter. Further work will continue in 2HY 2015. During the quarter the Kroondal work force maintained a positive outlook withopen communication channels on all levels. A recognition agreement wasconcluded with AMCU post quarter, in January 2015, negotiations of which wereconducted in a cordial manner. P&SA2 at Marikana (Aquarius Platinum - 50%) There has been no change to the Marikana operations which remain on care andmaintenance until further notice. Everest MineThere has been no change to the Everest operations which remain on care andmaintenance until further notice. AQPSA Operating cash costs per ounce (Rand) 4E 6E 6E net of by-products (Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni&Cu) Kroondal 8,925 7,317 7,131 Capital expenditure Kroondal (R'000 unless otherwise stated) Total Per 4E oz Ongoing establishment of infrastructure 104,864 944 Project capital (K6 shaft) 6,510 59 Mobile equipment 28,026 252 Total 139,400 1,255 Kroondal mine: reconciliation of cash costs per 4E ounce Cost per 4E ounce (Rand) Q1 2015 Q2 2015 Total operating expenditure 10,601 10,213 Less: Ongoing capital expenditure & mobile equipment (1,048) (1,195) Project capex (K6 shaft) (48) (59) Transferred (to)/from stockpile (504) (34) On mine cash costs 9,001 8,925 MIMOSA INVESTMENTS (Aquarius Platinum - 50%) Mimosa Platinum Mine - 12-month rolling average DIIR was constant at 0.05 per 200,000 man hours worked - Production increased by 3% to 677,305 tonnes - Head grade deteriorated slightly to 3.63 g/t - Recoveries improved to 78% - Volumes processed increased by 5% to 665,843 tonnes - Stockpile at the end of the quarter was approximately 181,258 tonnes - PGM production increased by 5% to 60,842 PGM ounces - Revenue, decreased in line with lower metal prices - Mining cash costs per tonne was unchanged constant at $71, costs per PGM ounce decreased by 4% to $781 as a result of increased production - Stay-in-business capital expenditure was $137 per PGM ounce for the quarter - Mimosa's cash margin for the period decreased from 41% to 26% due to negative sales adjustments and lower metal prices Mimosa: Production, Cash Cost and Price Analysis See www.aquariusplatinum.com for graph Commentary The Mimosa mine continues to operate well, despite cost pressures which haveincreased in recent quarters. The Mimosa management team has identified anumber of cost saving initiatives which are currently being implemented.Production of 60,842 PGM ounces for the quarter was a record for the Mimosamine. Operating cash costs per ounce Unit cash cost per PGM ounce (before by-product credits) was 4% lower comparedto the previous quarter mainly as a result of increased production. Mimosa operating cash costs per ounce 4E 6E 4E net of by-products (Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni, Cu & Co) Mimosa 781 737 562 Capital expenditure The total capital expenditure for the second quarter amounted to $8.5 million.Expenditure was mainly incurred on mobile equipment, Drill Rigs and LHD;Conveyor belt extension and Down dip Development. TAILINGS OPERATION Platinum Mile (Aquarius Platinum - 91.7%) - Material processed increased 31% to 1,346 million tonnes, up 31% quarter on quarter - Head grade decreased to 0.55 g/t from 0.58 - quarter on quarter - Recoveries increased to 13%, up from 9% quarter on quarter - Production increased to 2,996 PGM ounces as the operations continues it ramp up phase - Cash costs decreased to R7,500 per PGM ounce - Revenue was higher at R27 million for the quarter - Cash margin for the quarter was 13%, up from 9% in the previous quarter Commentary Platinum Mile The results for the quarter were much improved as the operations recovered fromthe five month strike that ended in July 2014. Production is expected tocontinue rising as the plant reaches capacity. The increase in the cash margin of the operation is encouraging given the 9%decline in the basket price for the quarter. In the next quarter focus will begiven to the improvement of the efficiency and integration of the newlycommissioned coarse grind circuit to improve overall recoveries at theoperation. Once full production ramp-up in achieved the operation shouldproduce some 1,607 ounces per month. Platinum Mile: Operating cash costs per ounce 4E 6E 4E net of by-products (Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni, Cu& Co) Platinum Mile 7,500 6,387 5,878 Chromite Tailings Retreatment Plant (CTRP) (Aquarius Platinum - 50%) There has been no change to the CTRP operations which remain on care andmaintenance until further notice. CORPORATE MATTERS Board Changes Sir Nigel Rudd was appointed to the Board of Directors and as ChairmanDesignate with effect from 1st November 2014. Nicholas Sibley, who has been aDirector since 1999 and Chairman since 2002, will be stepping down on28 February, 2015 and Sir Nigel will become Chairman on 1st March, 2015. Completion of asset sale - Kruidfontein prospecting right Aquarius concluded the sale of its indirect interest in the Kruidfonteinprospecting right ("Kruidfontein Right") to Pilanesberg Platinum Mines (Pty)Ltd on 1 December 2014 for S27 million (before Capital Gains Tax "CGT").Pursuant to the contractual obligation to the original vendors of theirinterests in the Kruidfontein Right Aquarius issued 36,505,657 common shares ata deemed price of US$0.24961 per Share in lieu of cash to the original vendorsof the Kruidfontein Right. More information on all corporate matters can be found atwww.aquariusplatinum.com Statistical Information: Kroondal P&SA1Statistical Information: MimosaStatistical Information: Platinum Mile See www.aquariusplatinum.com for statistical information Aquarius Platinum LimitedIncorporated in BermudaExempt company number 26290 Board of Directors Nicholas Sibley Non-executive Chairman Sir Nigel Rudd Chairman Designate 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 Bruyn Sebotsa Non-executive Audit/Risk CommitteeDavid Dix (Chairman)Edward HaslamTim FreshwaterKofi MornaNicholas Sibley Remuneration CommitteeEdward Haslam (Chairman)David DixZwelakhe MankazanaNicholas Sibley Nomination CommitteeSonja De Bruyn Sebotsa (Chairman)Edward HaslamTim FreshwaterKofi MornaWilli Boehm Chief Operating OfficerRobert Schroder Company SecretaryWilli Boehm AQPSA ManagementRobert Schroder Managing DirectorJean Nel Executive DirectorWessel Phumo General Manager: Kroondal Mimosa Mine ManagementWinston Chitando ChairmanPeter Chimboza Resident DirectorFungai Makoni Managing Director Platinum Mile ManagementRichard Atkinson Managing DirectorPaul Swart Financial Director Issued Capital At 31 December 2014, the Company had on issue: 1,501,979,560 fully paid commonshares. Substantial Shareholders 31 December 2014 Number of Shares Percentage HSBC Custody Nominees (Australia) Limited 98,959,287 6.59 J P Morgan Nominees Australia Limited 59,886,092 3.99 Primary Australian Securities Exchange Trading InformationListing: (AQP.AX) Premium 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 1225 Ropemaker Street,LondonEC2Y 9LYTelephone: Euroz Securities+44 (0)20 3100 2000 Level 18 Alluvion Rand Merchant Bank 58 Mounts Bay Road, (A division of FirstRand BankBarclays Perth WA 6000 Limited)5 The North Telephone: +61 (0) 8 1 Merchant PlaceColonnade 9488 1400 Cnr of Rivonia Rd and FredmanCanary Wharf Drive, Sandton 2196London E14 4BB Johannesburg South AfricaTel:+44 (0) 20 7623 2323 Telephone: +44 (0)20 7628 1000 Aquarius Platinum (South Africa) (Proprietary) Ltd100% 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 AfricaTelephone: +27 (0) 10 001 2848Facsimile: +27 (0) 12 001 2070 Aquarius Platinum Corporate Services Pty Ltd100% 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 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 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 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) TARP Trigger Action Response Procedure UG2 Reef A PGE-bearing chromite layer within the Critical Zone of the Bushveld Complex