28 Jan 2010 07:17
AQUARIUS PLATINUM LIMITED
Aquarius Platinum: Second Quarter 2010 - Production Results to 31 December 2009
Highlights of the quarter
Attributable production increased by 16% to 112,359 PGM ounces
PGM Dollar prices improved over the quarter - platinum up 13%, rhodium up 37% and palladium up 28%
Positive growth in operating cash margins, despite continued strength of the Rand (relative to weak US Dollar)
Re-establishment of Everest Mine on track - production expected in Q3 of 2010 calendar year
Record production from Platinum Mile Resources
Good progress on Blue Ridge ramp-up
$300 million convertible Bond offering completed, refinancing of R650 million bond underway
Commenting on the results, Stuart Murray, CEO of Aquarius Platinum said:
"Overall Q2 has been a very satisfactory quarter for Aquarius. Operations at Kroondal and Marikana have stabilised following the unprotected industrial action of the previous quarter, while the recently acquired Ridge operation has delivered good progress under our management team. Re-establishment of the Everest Mine is on schedule, and within budget, and we expect production to begin by quarter one of the next financial year. Mimosa and Platinum Mile performed well. The welcome rise in PGM prices coupled with improved operational performance has seen cash margins rise across the group.
While the Rand Dollar exchange rate continues to undermine some of the gains achieved from operational performance and metal pricing, the market outlook remains positive for Aquarius in the second half of 2010. The successful placing of the $300 million convertible bond is well timed, allowing for the settlement of the higher cost R650 million bonds, further strengthening the balance sheet."
P&SA1 at Kroondal
PGM production of 108,254 PGM ounces (54,127 PGM ounces attributable)
Cash margin for the quarter of 37%
P&SA2 at Marikana
PGM production of 37,160 PGM ounces (18,580 PGM ounces attributable)
Cash margin for the quarter of 20%
Everest
Re-establishment project on track
Mimosa
PGM production 50,079 PGM ounces (25,039 PGM ounces attributable)
Cash margin for the quarter of 45%
CTRP
PGM production of 2,087 PGM ounces (1,044 PGM ounces attributable)
Cash margin for the quarter of 66%
Platinum Mile
Record PGM production of 8,539 PGM ounces (4,270 PGM ounces attributable)
Cash margin for the quarter of 42%
Blue Ridge
PGM production of 18,598 PGM ounces (9,299 PGM ounces attributable)
Production by mine Quarter ended PGMs (4E) Mar 2009 Jun 2009 Sep 2009 Dec 2009 Kroondal 104,920 105,720 88,808 108,254 Marikana 38,851 37,753 31,223 37,160 Mimosa 46,278 46,874 50,828 50,079 CTRP 1,587 1,689 1,740 2,087 Platinum Mile 2,788 4,479 5,932 8,539 Blue Ridge - - 14,469 18,598 Total 194,424* 196,515 193,001 224,717
Production by mine attributable to Aquarius
Quarter ended PGMs (4E) Mar 2009 Jun 2009 Sep 2009 Dec 2009 Kroondal 52,460 52,860 44,404 54,127 Marikana 19,426 18,877 15,611 18,580 Mimosa 23,139 23,437 25,414 25,039 CTRP 793 845 870 1,044 Platinum Mile 1,394 2,240 2,966 4,270 Blue Ridge - - 7,235 9,299 Total 97,212 98,259 96,500 112,359
Aquarius Group attributable production (PGM ounces)
[Please refer to www.aquariusplatinum.com for graph]
Metals prices and exchange rate
US Dollar PGM prices continued to reflect an improving fundamental market demand, with prices rising across all PGM metals. Palladium and rhodium recorded the largest price increases, at 28% and 37% respectively.
Platinum closed the quarter up by 13% to an average of $1,390 per ounce for the quarter. Platinum traded at a quarterly high of $1,494 per ounce on 3 December 2009, and has traded above $1,500 since 5 January 2010. Rhodium increased by 37% to an average $2,195 per ounce for the quarter. Rhodium closed the quarter at $2,500 per ounce and has continued to trade above this level through January 2010. Palladium closed the quarter up 28% to average $348 per ounce for the quarter and has traded above $400 per ounce since 4 January 2010.
Significant interest in Exchange Traded Funds (ETF) continues to drive platinum and palladium prices. The US-based platinum and palladium ETF's commenced trading on 8 January 2010 on the NYSE Arca exchange, the same day that the Julius Baer Swiss-based physically-backed ETF's also commenced trading. These are the first physically-backed ETF's for the metals in the US and are expected to further increase investor interest in PGMs.
12-month individual PGM prices to December 2009
[Please refer to www.aquariusplatinum.com for graph]
Average PGM basket prices achieved at Aquarius operations: US$ per PGM ounce(4E) Basket prices (Quarter ended) Mar 2009 Jun 2009 Sep 2009 Dec 2009 Kroondal 795 915 972 1,163 Marikana 799 928 999 1,173 Mimosa 626 751 805 910 CTRP 859 993 1,074 1,266 Platinum Mile 810 930 1,004 1,192 Blue Ridge - - 967 1,138 Aquarius Group average 756 879 931 1,094
12-month PGM basket prices to December 2009 (Dollar and Rand per PGM basket ounce)
[Please refer to www.aquariusplatinum.com for graph]
The Rand maintained its strength against the weak US Dollar during the quarter, with the average Rand-Dollar exchange rate appreciating by 6% to R7.45. PGM basket prices in US Dollars strengthened at all operations, with the average group basket price being 18% higher at $1,094 per PGM ounce compared to the previous quarter. The Rand closed the quarter at R7.39 to the US Dollar. The average basket price at the South African operations was $1,152 per PGM ounce, equivalent to R8,580 per PGM ounce at an average exchange rate for the period of R7.45:$1.
12-month Rand-Dollar exchange rate to December 2009
[Please refer to www.aquariusplatinum.com for graph]
AQUARIUS PLATINUM (SOUTH AFRICA) (PTY) LTD (Aquarius Platinum 100%)
P&SA 1 at Kroondal
Safety
The 12-month rolling average disabling injury incidence rate (DIIR per 200,000 hours) improved to 0.63 from 0.66 in the previous quarter
During the quarter, Kroondal achieved twelve months without a fatal accident
Mining
Production tonnes for the quarter increased by 28% to 1,746,867 tonnes
Head grade deteriorated slightly from 2.63 g/t to 2.57 g/t
Processing
Tonnes processed increased by 27% to 1,674,260 tonnes
Recoveries decreased by 1% to 78%
PGM production increased by 22% to 108,254 PGM ounces
P&SA1 at Kroondal PGM production and Rand cash costs per PGM ounce (100%)
[Please refer to www.aquariusplatinum.com for graph]
Revenue
Revenue for the quarter increased by 43% to R910 million (R455 million attributable) due to a higher Rand basket price, improved production and positive PGM sales adjustments. (PGM sales are accounted for in the month of delivery to the refineries and adjusted for actual prices at the conclusion of the three-month refining pipeline).
The Kroondal Dollar-denominated basket price improved by 20% to an average of $1,163 per PGM ounce. The strength of the Rand (which appreciated by 6% against the Dollar) resulted in Kroondal's Rand-denominated basket improving by 13% compared to the previous quarter. Pricing stability contributed to positive PGM sales adjustments, which increased to R116 million in Q2 2010 from R58 million in Q1 2010.
Operations
Mining operations stabilised during the quarter following the unprotected industrial action in the previous quarter. On-reef stoping square metres mined increased by 31% and primary development (at 2,389 metres) increased by 42% during the quarter. Tonnes produced increased by 28% to 1,746,867tonnes for the quarter.
Processed tonnes increased by 27% to 1,674,260 tonnes with stockpiles at the end of the quarter totalling 129,723 tonnes.
Off-reef mining increased from 2.5% to 5.3% of the on-reef square meters mined due to geological structures, resulting in additional re-development and dilution. As a result, the head grade decreased marginally resulting in an average grade of 2.57g/t for the quarter. Recoveries also marginally decreased, to 78% from 79% due to lower head grade and increased mill throughput.
PGM production increased by 22% to 108,254 PGM ounces (54,127 ounces attributable).
Kroondal: Metal in concentrate produced (PGM ounces)
Quarter ended Pt Pd Rh Au PGMs Attributable to Aquarius Dec 2009 63,772 32,153 11,808 521 108,254 54,127 Sep 2009 52,287 26,366 9,708 447 88,808 44,404 Jun 2009 62,535 31,158 11,492 535 105,720 52,860 Mar 2009 62,281 30,728 11,411 500 104,920 52,460 Operating cash costs
Cash costs decreased by 13% to R343 per tonne, whilst costs per PGM ounce decreased by 9% to R5,305 as a result of the increase in production.
As a result of increased revenue and lower unit costs, Kroondal's cash margin for the period of 37% was nearly double the 19% achieved in the previous quarter.
Kroondal: Operating cash costs per ounce
4E 6E 6E net of by-products (Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni&Cu) Kroondal 5,305 4,344 4,226 Capital expenditure
Capital expenditure for the quarter was R43 million (R398 per PGM ounce). This was all stay-in-business capital, primarily related to the establishment of underground infrastructure. All critical capital expenditure is up to date.
P&SA2 at Marikana
Safety
The 12-month rolling average DIIR for the quarter improved to 1.08 per 200,000 hours worked from 1.26 in the previous quarter
Just after the close of the quarter, Marikana achieved twelve months without a fatal accident
Mining
Production tonnes increased by 14% to 629,391 tonnes, comprising 425,260 tonnes from underground and 204,131 tonnes from open-pit operations
Head grade increased by 5% to 2.73 g/t
Processing
Tonnes processed increased by 8% to 599,532 tonnes
Recoveries increased by 5% to 71%
PGM production increased by 19% to 37,160 ounces (18,580 PGM ounces attributable)
P&SA2 at Marikana PGM production and Rand cash costs per PGM ounce (100%)
[Please refer to www.aquariusplatinum.com for graph]
Revenue
Revenue at Marikana increased by 42% to R324 million (R162 million attributable) on the basis of higher production and a stronger basket price.
The Marikana Dollar-denominated basket price averaged $1,173 per PGM ounce, 17% higher than the previous quarter. Rand strength (which appreciated by 6% against the Dollar) resulted in the Marikana Rand-denominated basket improving by 11% compared to the previous quarter. Pricing stability continued to contribute to positive PGM sales adjustments, which increased to R41.5 million in Q2 2010 from R26.7 million in Q1 2010.
Operations
Production improved during the quarter as the operations stabilised following the unprotected industrial action by mining contractor employees during the previous quarter.
Underground production rose by 27% from the previous quarter to 425,260 tonnes. The ratio of mining from underground to opencast has increased from 60% to 68%, as the production build-up at 4 Shaft continues and the opencast mine approaches its end of life. Development activities at 4 Shaft is yielding results, with a commensurate increase in production. Re-commissioning of the western shaft of the Firstplats acquisition (termed M5 shaft) commenced during the quarter, and first production from the mining area is expected during the next quarter. The beneficial access arising from the Firstplats acquisition has yielded significant life of mine capital savings (precluding the use of vertical shafts) and enabled faster mining access to the Marikana ore body adjacent to the acquisition area.
The Pit A opencast area was mined out during the quarter. Opencast mining is now focussed on the ROM and West-West pits. The majority of the oxide material in the West-West pit was mined out during the quarter and the remainder of the mining in the pit will be in un-oxidised material, which should yield higher recoveries. Pre-stripping costs were incurred in the West-West pit during the quarter, which will contribute to lower stripping ratios and mining cost during the next quarter.
Processed tonnes mirrored the mining tonnes and volumes processed, and totalled 599,532 tonnes, 8% up on the previous quarter.
The head grade increased by 5% to 2.73g/t, as development activities at 4 Shaft contributed to a reduction in off-reef mining.
Recoveries were also 5% higher at 71% as a resulting in the change in mining mix, and the higher amount of un-oxidised material arising from the West-West pit.
PGM production for the quarter increased by 19% to 37,160 PGM ounces (18,580 PGM ounces attributable).
Marikana: Metal in concentrate produced (PGM ounces)
Quarter ended Pt Pd Rh Au PGMs Attributable to Aquarius Dec 2009 22,838 10,470 3,642 209 37,160 18,580 Sep 2009 19,515 8,407 3,100 200 31,222 15,611 Jun 2009 23,155 10,368 4,010 220 37,753 18,877 Mar 2009 23,673 10,908 4,034 236 38,851 19,426 Operating cash costs
Cash costs decreased by 3% to R431 per tonne, while costs per PGM ounce decreased by 12% to R6,954 as a result of improved output from the mining operations.
Gross revenue increased by 42% to R324 million as a result of higher production and the stronger basket price.
As a result, Marikana Mine showed a significantly improved cash margin of 20% for the period.
Marikana: Operating cash costs per ounce
4E 6E 6E net of by-products (Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni&Cu) Marikana 6,954 5,796 5,637 Capital expenditure
Stay-in-business capital expenditure totalled R18.2 million (R492 per PGM ounce), an increase of 18%. This consisted primarily of underground infrastructure establishment. All critical capital expenditure is up to date.
Contractor dispute with Moolman Mining
During March 2009, AQPSA and Moolman Mining agreed that the dispute relating to AQPSA resiling from the contract originally concluded between AQPSA and Moolman Mining on the basis of misrepresentation by Moolman Mining and Moolman Mining's conditional counter claims, would be referred to trial and would not be subject to arbitration. As a result, the original arbitration instituted by Moolman Mining against AQPSA relating to the application of the rise and fall formula in that contract, will be indefinitely suspended pending the outcome of the trial proceedings. This agreement was made an order of court with the consent of both parties and provisional dates in September 2010 have been allocated for the trial.
Everest MineSafety
The safety performance at Everest remains positive, achieving a zero 12-month rolling DIIR
Everest completed 342 days without a lost time injury at the end of the quarter
Operations
Phase 1 of the re-establishment project, involving the excavation of the box cuts, storm water and earth works, the installation of temporary services and an access road was completed by the end of the quarter. Phase 2, which includes the establishment of permanent underground services, the reclamation of infrastructure, equipping of declines and strike sections and there-establishment of stoping sections, has commenced and is proceeding as planned. Permanent surface infrastructure, such as mine services, roads and overland conveyers will also be completed during this phase.
Decline development in the new North boxcut is now 65% complete with belt and surface infrastructure construction progressing as per schedule. The South boxcut was also completed during the quarter and a single decline shaft will be developed to gain access for men and material and for ventilation to the south stoping areas. A steel pre-fabricated tunnel was constructed from the high wall to surface and the boxcut will be completely filled and rehabilitated (a more cost effective and environmentally acceptable solution). The south decline development will commence in the next quarter.
Project execution remains on track for Everest to be in a position to resume milling operations in the latter part of the first quarter of next financial year.
Planning for the construction of the chromite spirals plant was finalised during the quarter, and construction activities will commence during the next quarter. Commissioning of the spirals plant will coincide with the resumption of milling operations at Everest.
[Please refer to www.aquariusplatinum.com for pictures]
Capital Expenditure
The total re-establishment project capital (both Phase 1 and Phase 2 as previously announced) which will put Everest in a position to resume operations amounts to R259 million. Project expenditure is well within budget, at a total of R52.0 million for the quarter, bringing the project expenditure to date to R 66.0 million.
Offtake agreement signed with Glencore for chromite from Everest Plant
An offtake agreement has been signed with Glencore International AG, for the purchase of the chromite produced by the chromite spirals plant currently under construction at Everest. The agreement has been concluded on commercially favourable terms and the revenue from the chromite by-product will contribute to Everest's margins. The chromite plant is anticipated to have annual output of approximately 200,000 tonnes of UG2 chromite (40% Cr2O3) at steady state and will commence production in Q3 of calendar year 2011.
MIMOSA INVESTMENTS (Aquarius Platinum - 50%)
Mimosa Platinum MineSafety
The 12-month rolling average DIIR for the quarter improved to 0.14 from the previous quarter of 0.17
One lost-time injury was recorded during the quarter
Mining
Underground production decreased by 2% to 528,687 tonnes
Head grade decreased marginally to 3.58g/t
Processing
Concentrator plant recoveries decreased to 75.5% from 76.3%
Total mine production was maintained at to 50,079 PGM ounces (25,039 PGM ounces attributable)
The surface stockpile decreased to a total 146,051 tonnes at the end of the quarter
Mimosa Mine PGM production and Dollar cash cost per PGM ounce (100%)
[Please refer to www.aquariusplatinum.com for graph]
Revenue
The average achieved PGM basket price for the quarter increased by 13% to $910 per PGM ounce, while the average achieved nickel price increased by 21% to $8.27 per pound. Consequently, revenue for the quarter increased to $66 million, with base metals accounting for approximately 26% of revenue. Revenue includes a $12 million positive price adjustment.
The cash margin increased to 45% from 36% in the previous quarter, mainly due to the firming of metal prices and positive price adjustments.
Operations
Mining operations hoisted 528,687 tonnes compared to 539,475 tonnes in the previous quarter. Tonnes milled totalled 576,008 tonnes, with 47,321 tonnes being taken from the stockpile. Surface stockpile totalled 146,051 tonnes at the quarter end.
The average plant grade was consistent at 3.58g/t.
Tonnes processed totalled 576,008 tonnes, comparable to the previous quarter whilst recoveries for decreased to 75.5% from 76.3%.
PGM production during the quarter decreased by 1.47% to 50,079 ounces (25,039 ounces attributable).
Mimosa: PGMs in concentrate produced (ounces)
Quarter ended Pt Pd Rh Au PGMs Attributable to Aquarius Dec 2009 25,388 19,237 2,012 3.442 50,079 25,039 Sep 2009 25,691 19,569 2,096 3,473 50,829 25,414 Jun 2009 23,910 17,979 1,851 3,135 46,875 23,437 Mar 2009 23,590 17,905 1,797 2,986 46,278 23,139
Mimosa: Base metals in concentrate produced (tons)
Mine production Attributable to Aquarius Quarter ended Ni Cu Co Ni Cu Co Dec 2009 695 574 19 347.5 287 9.5 Sep 2009 705 572 19 352.5 286.0 9.5 Jun 2009 667 534 18 333.5 267.0 9 Mar 2009 659 545 18 329.5 272.5 9 Operating cash costs
Cash costs per ROM tonne increased by 2% to $50, from $49 while costs per PGM ounce increased by 3% to $578 from $561.
The gross cash margin increased to 45% from 36% in the previous quarter mainly due to rising PGM basket prices. Net of by-products, cash costs were $261 per PGM ounce, compared with $316 per PGM ounce in the previous quarter, primarily due to a rise in the prices of base metals.
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 578 547 261
Update on foreign currency regime in Zimbabwe
Since the introduction of the use of multi currencies in the economy in January 2009, there have not been any changes in the foreign currency environment. The US Dollar and the South African Rand remain the most widely used currencies in the economy. The 2010 Fiscal Budget announced in December 2009 did not make any changes to the foreign currency environment, but unfavourable proposals in respect of royalties and corporate taxes were tabled. Future updates will be given with the financial half-year results on 11 February 2010.
AQUARIUS PLATINUM (SA) CORPORATE SERVICES (PTY) LTD
Chromite Tailings Retreatment Plant (CTRP) (ACS(SA) - 50%)
SafetyThe DIIR remained at 0 Processing
Material processed increased by 6% to 73,157 tonnes
Grade increased by 6% to 2.34g/t
Recoveries increased by 6% to 38%
Production increased to 2,087 PGM ounces (1,044 PGM ounces attributable)
CTRP PGM production and Rand cash costs per PGM ounce (100%)
[Please refer to www.aquariusplatinum.com for graph]
Revenue
The achieved mine basket price for the quarter averaged $1,266 per PGM ounce, 18% higher than the previous quarter. The achieved mine Rand-Dollar exchange rate averaged R7.45/$ for the quarter.
Operations
Material processed increased to 73,157 tonnes as planned for the quarter.
The head grade increased slightly to 2.34g/t.
Recoveries increased by 6% to 38%. This resulted in production being up 20% to 2,087 PGM ounces (1,044 PGM ounces attributable).
CTRP: Metal in concentrate produced (PGM ounces)
Quarter ended Pt Pd Rh Au PGMs (4E) Attributable to Aquarius Dec 2009 1,267 464 353 4 2,087 1,044 Sep 2009 1,048 381 308 3 1,740 870 Jun 2009 1,024 369 292 4 1,689 845 Mar 2009 966 351 267 3 1,587 794 Operating costs
Cash costs decreased by 15% to R2,875 per PGM ounce mainly as a result of the increased production and the continued attention to efficiencies.
The cash margin for the period was 66%, an increase from 42% in the previous quarter.
CTRP 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) CTRP 2,875 1,976 1,909
Platinum Mile Resources (ACS (SA) - 50%)
Safety
The DIIR was zero for the quarter
Processing
Tailings processed totalled 1975 million tonnes.
PGM grade was 0.56 g/t, a decrease of 19% on the previous quarter
Production was 8,539 PGM ounces (4,269 PGM ounces attributable to Aquarius)
Platinum Mile PGM production and Rand cash costs per PGM ounce (100%)
[Please refer to www.aquariusplatinum.com for graph]
Revenue
Revenue increased by 85% to R74 million (R37 million attributable to Aquarius).The achieved mine basket price for the quarter averaged $1,192 per PGM ounce, 19% higher than the previous quarter, and together with improved production results, helped to increase revenue by 85%. The achieved Rand-Dollar exchange rate averaged R7.47/$ for the quarter.
Operations
Production levels increased by 44% during the quarter following the completion of the milling expansion, which is now yielding most of the anticipated benefits. This improved performance was despite the head grade of the tailings processed decreasing to 0.56g/t from 0.69g/t in the previous quarter.
Recoveries increased to 24% compared to 14% in the previous quarter. As a result, production increased by 44% to 8,539 PGM ounces (4,269 ounces attributable to Aquarius).
Platinum Mile: Metal in concentrate produced (PGM ounces)
Quarter ended Pt Pd Rh Au PGMs (4E) Attributable to Aquarius
Dec 2009 4,953 2,647 769 170 8,539 4,269 Sep 2009 3,440 1,839 534 119 5,932 2,966 Jun 2009 2,598 1,388 403 90 4,479 2,239 Mar 2009 1,617 864 251 56 2,788 1,394
Operating costs
Cash costs decreased by 37% to R1,990 per PGM ounce, largely as a result of improved plant operations and increased production levels.
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 1,990 1,716 Nm Capital expenditure
No capital expenditure was incurred during the quarter.
Blue Ridge Platinum (Aquarius Platinum - 50%)
Safety
Regrettably a fatal accident occurred underground on 14 December 2009 when Mr Khayalethu Nongqayi, a rock drill operator, was fatally injured in a fall of ground accident. The Board and management of Aquarius Platinum extend their condolences to Mr Khayalethu's family and colleagues.
The 12-month rolling average DIIR for the quarter deteriorated to 1.09 from 0.47 in the previous quarter. 22 lost-time injuries were reported during the quarter. Preventative and remedial actions are being implemented to reverse the negative trend in the safety performance.
Mining
Underground operations increased production by 15% to 220,726 tonnes
Head grade deteriorated to 2.40 g/t
Stockpiles at the end of the quarter totalled 173,688 tonnes
Processing
Tonnes processed increased by 25% to 336,294 tonnes
Recoveries increased by 7% to 74%
PGM production increased by 28% to 18,598 ounces (9,299 ounces attributable to Aquarius)
Revenue
Revenue for the quarter increased 59% to R162 million for the quarter (R81 million attributable to Aquarius) due to increased production and a higher basket price. The achieved mine basket price for the quarter improved by 17% to an average of $1,138 per PGM ounce. The Rand/Dollar average exchange rate for the quarter was R7.48/$.
Operations
The focus remained on primary development to open ore reserves and available panels to increase production to steady state. Primary development matched the previous quarters' results by achieving 2,502 meters for the period with the footwall decline and level development progressing to target. Equipping of the main conveyor decline is due to conclude in the third quarter with installation of all services completed on schedule.
Underground mining progressed well during the quarter with a 15% improvement on the previous quarter in respect of tonnes produced and delivered to the concentrator plant. Tonnes mined increased from 191,968 tonnes to 220,726 tonnes. Stoping teams are being recruited and trained as stoping panels are being made available through the holing of additional raise lines.
The concentrator plant's availability increased quarter on quarter, with downtime mainly due to power interruptions as a result of lightning, redesign and re-engineering of the secondary mill from a grate discharge to an overflow discharge configuration as well as the installation of a new tailings pipeline. Improved process stability and process control resulted in recoveries improved from 65% to 74%. Throughput for this quarter was 336,294 tonnes.
The head grade averaged 2.40g/t for the quarter, a deterioration against the previous quarter, mainly as a result of development dilution and the processing of lower grade development stockpiles.
PGM production was 18,598 PGM ounces (9,299 ounces attributable to Aquarius).
Blue Ridge: Metal in concentrate produced (PGM ounces)
Quarter ended Pt Pd Rh Au PGMs (4E) Attributable to
Aquarius Dec 2009 11,201 011111 5,454 1,762 181 18,598 9,299 Sep 2009 8,598 4,383 1,347 141 14,469 7,235 Operating cash costs
Total operating expenditure during the quarter amounted to R 159 million. Operating expenditure continued to be capitalised during the ramp-up phase but a modest on-mine operating cash margin (before finance costs) of R 1.7 million was achieved. The resultant capitalisation of cost and revenue to the project (including finance costs) amounted to R 59 million for the quarter.
CORPORATE MATTERS
Convertible bond offering
During the quarter Aquarius concluded a capital raising of $300 million of unsubordinated, unsecured convertible bonds, due 2015.
The Bonds were issued at 100% of their principal amount and have a coupon of 4.0% per annum, payable semi-annually in arrears. The initial conversion price is $6.773 per share, representing a premium of 22.5% to the volume weighted average price of the Company's common shares on the London Stock Exchange (LSE) between launch and pricing, translated at a GBP-USD exchange rate of 1.653.
The proceeds of the Bonds will be used to fund the early redemption of all of the Company's existing R650 million convertible bonds in accordance with their terms (at an aggregate redemption price of R747.5 million) and for general corporate purposes and business opportunities, including the construction of a chromite recovery plant at Everest.
The Bonds commenced trading on the Exchange's LSE's Professional Securities Market on 21 December 2009.
Group cash balances increased to $465 million during the quarter following completion of the bond placement.
Subsequent to the end of the quarter, on 18 January 2010, $105 million of this balance was used to retire the Company's existing R650 million convertible bonds in accordance with their terms (at an aggregate redemption price of R747.5 million). Whilst completion of the redemption process occurred on 18 January 2010, the accounting for the early redemption of the company's rand convertible notes inclusive of the borrowing costs and the 15% premium (which will impact the income statement) will be accounted for in the half yearly accounts to 31 December 2009.
Cash Balances
Group cash balances increased to $465 million during the quarter following completion of the bond placement.
Subsequent to the end of the quarter, on 18 January 2010, $105 million of this balance was used to retire the Company's existing R650 million convertible bonds in accordance with their terms (at an aggregate redemption price of R747.5 million).
Group cash at 31 December 2009 was held as follows:
AQP $409 million AQPSA $ 35 million ACS(SA) $ 4 million Mimosa $ 5 million Ridge Mining $ 12 million Total $465 million*
*Before redemption of Rand convertible bonds
Interim Results
On 11 February 2010, Aquarius Platinum will report unaudited Interim Financial Results for the Half Year to 31 December 2009. Further information concerning the release and conference call hosted by CEO Stuart Murray, will be provided on the website www.aquariusplatinum.com one week before the release.
More information on all corporate matters can be found at www.aquariusplatinum.com
Statistical Information: Kroondal P&SA1
[Please refer to www.aquariusplatinum.com for table]
Statistical Information: Marikana P&SA2
[Please refer to www.aquariusplatinum.com for table]
Statistical Information: Mimosa
[Please refer to www.aquariusplatinum.com for table]
Statistical Information: Chrome Tailings Retreatment Plant
[Please refer to www.aquariusplatinum.com for table]
Statistical Information: Platinum Mile
[Please refer to www.aquariusplatinum.com for table]
Statistical Information: Blue Ridge
[Please refer to www.aquariusplatinum.com for table]
Aquarius Platinum LimitedIncorporated in BermudaExempt company number 26290Board of DirectorsNicholas Sibley Non-executive Chairman Stuart Murray Chief Executive Officer David Dix Non-executive Tim Freshwater Non-executive Edward Haslam Non-executive
Sir William Purves Non-executive (Senior Independent Director)
Kofi Morna Non-executive Zwelakhe Mankazana Non-executive Audit/Risk CommitteeSir William Purves (Chairman)David DixEdward HaslamNicholas Sibley
Remuneration/Succession Planning Committee
Edward Haslam (Chairman)Nicholas SibleyNomination Committee
The full Board comprises the Nomination Committee
Company SecretaryWilli BoehmAQPSA ManagementStuart Murray Executive Chairman Hugo H¶ll Managing Director H©l¨ne Nolte Director: Finance Hulme Scholes Commercial Director Anton Lubbe Operations Director: West Anton Wheeler Operations Director: East Graham Ferreira General Manager: Group Admin & Company Secretary Mkhululi Duka General Manager: Group Human Resources & Transformation Abraham van Ghent General Manager: Kroondal Wessel Phumo General Manager: Marikana Gabriel de Wet General Manager: Engineering Augustine Simbanegavi General Manager: Everest Anthony Joubert General Manager: Blue Ridge ACS (SA) Management
Paul Smith Director: New Business
Mimosa Mine Management
Winston Chitando Managing Director Herbert Mashanyare Technical Director Peter Chimboza Resident Director Fungai Makoni General Manager Finance & Company Secretary
Platinum Mile Management
Richard Atkinson Managing Director
Paul Swart Financial Director
Issued Capital
At 31 December 2009, the Company had on issue: 462,491,685 shares fully paid common shares and 1,628,240 unlisted options.
Substantial Shareholders 31 December 2009 Number of Shares Percentage
Savannah Consortium 68,658,728 14.85
HSBC Custody Nominees (Australia) Limited 39,410,836 8.52
JP Morgan Nominees Australia Limited 28,149,935 6.09 Trading InformationISIN number BMG0440M1284ADR ISIN number US03840M2089Convertible Bond ISIN number XS0470482067Broker (LSE) (Joint) Broker (ASX) Sponsor (JSE) Liberum Capital Limited City Point, 1 Ropemaker Street, London, EC2Y 9HT Euroz Securities Rand Merchant Bank Telephone: +44 (0) 20 3100 Level 14, The (A division of FirstRand 2000 Quadrant Bank Limited) 1 William Street, 1 Merchant Place Bank of America Merrill Perth WA 6000 Cnr of Rivonia Rd and Lynch Telephone: +61 Fredman Drive, Sandton 2146 2 King Edward St (0) 8 9488 1400 Johannesburg South Africa London, EC1A 1HQ Telephone: +44 (0)20 7628 1000
Aquarius Platinum (South Africa) (Proprietary) Ltd
100% Owned(Incorporated in the Republic of South Africa)
Registration Number 2000/000341/07
1st Floor, Building 5, Harrowdene Office Park, Western Service Road, Woodmead 2191, South Africa Postal Address: PO Box 76575, Wendywood, 2144, South Africa.
Telephone: +27 (0)11 656 1140Facsimile: +27 (0)11 802 0990
Aquarius Platinum Corporate Services Pty Ltd
100% Owned
(Incorporated in Australia)
ACN 094 425 555
Level 4, Suite 5, South Shore Centre, 85 The Esplanade, South Perth, WA 6151,AustraliaPostal Address: PO Box 485, South Perth, WA 6151, AustraliaTelephone: +61 (0)8 9367 5211Facsimile: +61 (0)8 9367 5233Email: info@aquariusplatinum.com
For further information please visit www.aquariusplatinum.com or contact:
In AustraliaWilli Boehm+61 (0) 8 9367 5211
In the United Kingdom and South Africa
Stuart MurrayHugo H¶ll+ 27 (0) 11 656 1140GlossaryA$ Australian Dollar Aquarius Aquarius Platinum Limited 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 Chromite Ore 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 Affairs DMR South African Government Department of Mineral Resources and Energy, formerly the DME Dollar United States Dollar or $ Everest Everest Platinum Mine Great A PGE bearing layer within the Great Dyke Complex in Zimbabwe Dyke Reef g/t Grams per tonne, measurement unit of grade (1g/t = 1 part per million) JORC Australasian code for reporting of Mineral Resources and Ore Reserves code JSE JSE Limited Kroondal Kroondal Platinum Mine or P&SA1 at Kroondal LHD Load haul dump machine Marikana Marikana Platinum Mine or P&SA2 at Marikana Mimosa Mimosa Mining Company (Private) Limited nm Not measured PGE(s) Platinum group elements plus gold. Five metallic elements commonly (6E) found together which constitute the platinoids (excluding Os (osmium)). These are Pt (platinum), Pd (palladium), Rh (rhodium), Ru (ruthenium), Ir (iridium) plus Au (gold) PGM(s) Platinum group metals plus gold. Aquarius reports the PGMs as (4E) comprising Pt+Pd+Rh plus Au (gold) with the Pt, Pd and Rh being the most economic platinoids in the UG2 Reef 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 plc ROM Run of mine. The ore from mining which is fed to the concentrator plant. This is usually a mixture of UG2 ore and waste. Tonne 1 Metric tonne (1,000kg)
UG2 Reef A PGE-bearing chromite layer within the Critical Zone of the Bushveld
Complex
Z$ Zimbabwe Dollar
vendor