31 Jan 2012 07:00
Second Quarter 2012: Production Results Aquarius Platinum Limited
Aquarius Platinum Limited Production Results to 31 December 2011 Highlights
Attributable production for the second quarter decreased by 4% quarter-on-quarter to 105,629 PGM ounces
Significant increase in the number of Section 54 safety stoppages negatively impacting production - an industry-wide phenomenon
Average PGM Dollar prices deteriorated in the quarter - platinum and palladium fell 14% and 17% respectively while rhodium fell 16%
The Rand weakened against the US Dollar by 13% on average quarter-on-quarter, but was flat over the current quarter
Q2 2012 Operating Results Summary Kroondal Marikana Everest * Mimosa CTRP Plat. Mile 4E PGM Production Total (100% basis) 86,796 28,809 18,712 50,456 1,117 3,328 Attributable 43,398 14,404 18,712 25,228 559 3,328 4E Basket Price R/oz 10,217 10,337 10,193 - 10,498 9,785 $/oz 1,262 1,277 1,259 1,303 1,296 1,208 Cash Costs (4E basis) R/oz 8,410 9,530 10,971 - 11,120 6,335 $/oz 1,039 1,177 1,355 739 1,373 782 Cash Margin (%) -14 -24 -46 49 (80) 8 Stay-in-Business Capex R/oz 1,097 1,060 850 - 147 - $/oz 135 131 105 329 18 - * Everest is in ramp-up phase
Commenting on the results, Stuart Murray, CEO of Aquarius Platinum said:
"The December quarter of 2011 was a most challenging one, both for AQPSA and, it seems, the entire platinum industry, which continues to be attacked from many angles. The period saw the tail-end of our recent operational challenges and was exacerbated by deteriorating economic conditions, increased Section 54 stoppages across the Rustenburg district and continued underperformance by the lead mining contractor. This last factor has caused AQPSA to begin a review of this contractual relationship as the current cost-reimbursable model is untenable in the current environment. The prior issues relating to the implementation of the new hangingwall support methodology at Kroondal and Marikana were largely resolved during the quarter, but production nonetheless remained below capacity due to the widespread (and sometimes unjustified) application of Section 54 safety stoppages. This issue is making the South African mining industry a difficult place in which to operate and whilst zero-harm is laudable, there must be practical implementation of the law. Not only has the incidence of these stoppages risen markedly, in many cases the time now taken by the regional department to resolve these stoppages has risen from some 2 days to a week or sometimes more. Production at Everest was also negatively impacted by a protected two-week strike by employees of the contractor. The mine is now also under an optimisation study as a result of near-term poor ground conditions, lower prices and the significant delays in permitting the open-cast reserves. In Zimbabwe, Mimosa's operations continued apace, with production broadly flat, but negative regulatory impositions continue to escalate there. All these relentless challenges make it clear that some of the stakeholders in both countries in which we operate simply do not grasp the fact that there are only 100 cents in the Rand and 100 pennies in the Dollar. There is simply no more to be taken before the operations are threatened. (continued overleaf)
The challenges facing the region's platinum industry at present should not beunderestimated. PGM margins are now low in both Rand and Dollar terms, andoversupply (relative to real consumption) coupled with a poor economic outlookis likely to ensure that this remains the case, at least in the short term.Cost and regulatory pressures also continue unabated. In this environment, itis the companies that are willing to plan for low margins to preserve cash thatwill fare best. Aquarius remains well-placed in this regard. We haveoperational flexibility, lower capital expenditure requirements, and awillingness to adjust both strategy and production volumes to the dictates ofthe prevailing economic and political conditions, and not to the holy grail ofproduction at all costs."Production by mine Quarter ended PGMs (4E) Dec 2011 Sept 2011 % Change Dec 2010 % Change Kroondal 86,796 88,908 (2%) 119,444 (27%) Marikana 28,809 25,993 11% 32,831 (12%) Everest 18,712 23,074 (19%) 25,144 (26%) Blue Ridge - - - - - Mimosa 50,456 53,798 (6%) 47,023 7% CTRP 1,117 661 69% 1,451 (23%) Platinum Mile 3,328 3087 8% 4,121 (19%) Total 189,218 195,521 (3%) 230,014 (18%)
Production by mine attributable to Aquarius
Quarter ended PGMs (4E) Dec 2011 Sept 2011 % Change Dec 2010 % Change Kroondal 43,398 44,454 (2%) 59,722 (27%) Marikana 14,404 12,996 11% 16,415 (12%) Everest 18,712 23,074 (19%) 25,144 (26%) Blue Ridge - - - - - Mimosa 25,228 26,899 (6%) 23,512 7% CTRP 559 331 69% 725 (23%) Platinum Mile 3,328 2,074 60% 2,061 61% Total 105,629 109,828 (4%) 127,579 (17%)
Aquarius Group attributable production (PGM ounces) to 31 December 2011
[Please refer to www.aquariusplatinum.com for graph]
Market Summary
Metals prices
The Dollar prices of platinum, palladium and rhodium improved over October and into early November, as fundamental industrial demand continued to improve slowly, remaining to some extent decoupled from the weak and volatile financial markets prevailing at the time. Positive US auto sales data and higher-than-normal imports of platinum into Asia had a tightening effect on prices over this period. This was short-lived, as the Dollar prices of both platinum and rhodium fell sharply during late November and December. In the case of platinum, this was as a result of deteriorating investor sentiment driven by the ongoing European debt crisis coupled with poor automobile sales statistics from certain European countries, which manifested in platinum ETF outflows. The fall in the rhodium price is of more concern, as it is indicative not only of the surplus in that metal, but also of a slowdown in demand from auto manufacturers, which suggests that the decoupling of investor sentiment and fundamental demand is ending. Only palladium held onto gains throughout the second quarter, less affected by negative European sentiment and having underperformed the other PGMs earlier in calendar 2011.
The average platinum, palladium and rhodium prices all declined broadly in line quarter-on-quarter, by 14%, 17% and 16% respectively. Gold fell by 1% on average, reflecting the continued lack of liquidity and uncertainty in global markets. In an unprecedented development, the prices of both platinum and rhodium remained below that of gold throughout the second quarter. Platinum closed the quarter down 10% at $1,354 per ounce, while palladium rose by 6% to $630 per ounce over the same period. The rhodium price fell 16% to $1,400 per ounce over the quarter and gold fell 5% to $1,572 per ounce.
PGM prices have improved slightly in January, but oversupply and a poor macroeconomic outlook are likely to continue to dampen material price improvements in the short term. In the medium term, structural considerations within the platinum industry continue to suggest a strong recovery is likely once markets stabilise.
Rand-Dollar exchange rate
The average Rand-Dollar exchange rate for the quarter weakened by 13% from R7.15 to R8.10 to the US dollar, as the Rand continued to trade in line with the currency of South Africa's largest trading partner, the Euro. The Rand closed the quarter flat at R8.12 to the Dollar.
The significantly lower average Rand Dollar exchange rate was outweighed by declining Dollar PGM prices and as a result the Rand basket price deteriorated slowly over the quarter, falling more steeply in December. Average PGM basket prices over the quarter weakened at all operations in both Rand and US Dollar terms. The US Dollar weighted average group basket price decreased by 12% to $1,272 per 4E PGM ounce compared to the previous quarter, while the weighted average basket price at the South African operations was $1,262 per PGM ounce. The average South African basket price was R10,222 per PGM ounce for the period, a 3% decrease compared to the prior quarter.
[Please refer to www.aquariusplatinum.com for graphs]
Average PGM basket prices achieved at Aquarius operations
Quarter ended US$ per PGM ounce (4E) Dec 11 Sept 11 % Change Dec 10 % Change Kroondal 1,262 1,480 -15% 1,457 -13% Marikana 1,277 1,488 -14% 1,455 -12% Everest 1,259 1,460 -14% 1,427 -12% Blue Ridge - - - - - Mimosa 1,303 1,374 -5% 1,207 8% CTRP 1,296 1,535 -16% 1,559 -17% Platinum Mile 1,208 1,438 -16% 1,447 -17% Weighted Avg. 1,272 1,450 -12% 1,405 -9%
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 deteriorated to 0.78 per 200,000 man hours from 0.63 in the previous quarter
Production was broadly flat at 1,481,000 tonnes
10% fall in planned production due to Section 54 stoppages
Head grade deteriorated slightly from 2.39 g/t to 2.37 g/t
Recoveries deteriorated by 1%
Volumes processed broadly flat at 1,473,000 tonnes
Stockpiles at the end of the quarter totalled approximately 28,000 tonnes
PGM production decreased by 2% to 86,796 PGM ounces
Revenue decreased by 16% to R642 million Q-on-Q due to lower volumes and a reduction in the basket price which resulted in a negative sales adjustment of R125 million
Mining cash costs decreased by 3% to R496 per tonne, and costs per PGM ounce by 1% to R8,410
Kroondal's cash margin for the period decreased from 1% to -14%
P&SA2 at Marikana (Aquarius Platinum - 50%)
12-month rolling average DIIR deteriorated to 0.33 per 200,000 man hours from 0.30 in the previous quarter
Production increased by 11% to 528,000 tonnes, all from underground operations
Head grade increased by 2% to 2.34 g/t
Recoveries decreased by 3% to73%
Volumes processed increased by 12% to 524,000 tonnes
PGM production increased by 11% to 28,809 ounces
Revenue decreased by 4% to R221 million Q-on-Q despite increased volumes, due to lower basket prices which resulted in a negative sales adjustment of R40 million
Mining cash costs decreased by 7% to R524 per tonne, and costs per PGM ounce by 6% to R9,530
Marikana's cash margin deteriorated from -14% to -24%
Everest Mine (Aquarius Platinum - 100%)
12 month rolling DIIR deteriorated to 1.71 per 200,000 man hours from 1.28 in the previous quarter
Production decreased by 3% to 315,000 tonnes
Head grade deteriorated from 2.57 g/t to 2.27 g/t
Recoveries deteriorated to 82%
Volumes processed decreased by 4% to 315,000 tonnes, with 13 production days lost due to strike by MRC employees in October
PGM production decreased by 19% to 18,712 PGM ounces
Revenue decreased by 34% compared to the previous quarter to R140 million
Mining cash costs decreased by 5% to R652 per tonne, and costs per PGM ounce increased by 12% to R10,972
Everest's cash margin decreased from -6% to -46%
Commentary
Kroondal and Marikana: Delivery has been taken of four mechanised support drill rigs, and all cable anchors for hangingwall support will now be drilled on a mechanised basis. Further rigs are on order and their rollout will occur as they are delivered. The shortage of suitable drill steel also persists, and as disclosed in the Q1 report, for this reason some shafts at Kroondal and Marikana have been converted back to the old support methodology, with significantly improved control technology in place. These measures resulted in an increase of approximately 18% in daily production, permitting a return to production at capacity. However, an elevated incidence of Section 54 safety stoppages issued in the Rustenburg district has negatively affected production. A dialogue has been established with the new Principal Inspector of the region in an attempt to find a practical solution to this issue in order to maximise safety while minimising disruption to operations and the associated negative economic effects. Kroondal would have run at full capacity in December if not for Section 54 stoppages.
At Marikana, 4 Shaft is running at capacity, while both the M5 project and the Siphumelele shaft are increasing production in line with their development schedules. The latter two shafts remain in ramp-up phase, and as a result at current Rand basket prices they are loss-making.
Everest: As disclosed at the time, industrial action occurred at Everest in October as a result of the unwillingness by the mining contractor at the mine to recognise the AMCU trade union. This strike cost Everest 13 production days, equivalent to approximately 18% of quarterly production. AMCU has now been recognised in a new structure, and employees at Everest were transferred to this new structure which is currently in wage negotiations with AMCU.
The eastern side of Everest is within the last 18 months of its life, and is being replaced by the reserves on the western side. As mining has proceeded into the shallower extremities of the orebody, the oxidised zone has been encountered at depth, with the associated poor ground conditions and grade reductions. Given this development, it was anticipated that underground production could be slowed, and supplemented by a targeted 3,000 4E ounces per month of production from the Hoogland opencast pit. However, notwithstanding the fact that the application for converting the exploration right at Hoogland into a mining authorisation was submitted in May 2011, it has yet to be approved by the DMR, a delay occasioned by, among other things, a jurisdictional dispute between the regional offices of Mphumalanga and Limpopo.
The failure by the DMR to grant the Hoogland mining authorisation coupled with ongoing underperformance by the mining contractor and continued industrial relations difficulties has prompted Aquarius to embark on a strategic review of the Everest operation. In the interim, given these operational challenges and the currently prevailing low Rand PGM prices, and while we wait for the Section 102 consent relating to the Buttonshope (Booysendal South) property to be granted, it has been decided to optimise Everest at a sustainable underground production target of 10,000 4E ounces per month for the next 12 to 18 months.
AQPSA Operating costs per ounce
4E 6E 6E net of by-products (Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni&Cu) Kroondal 8,410 6,896 6,775 Marikana 9,530 7,893 7,624 Everest 10,971 9,090 8,858 Capital expenditure Kroondal Marikana Everest
(R'000 unless otherwise stated) Total Per 4E oz Total Per 4E oz Total Per 4E oz
Ongoing Infrastructure Establishment 41,108 474 30,545 1,060 14,249 762
Project Capital 54,142 624 - - 1,650 88 Mobile Equipment 30,837 355 23,956 832 - - Total 126,086 1,453 54,501 1,892 15,900 850
The project capital at Kroondal is being incurred on the K6 shaft project, which is a replacement shaft scheduled for first production in June 2013, with reef intersection anticipated in June 2012.
The Mobile Equipment Capital is being financed through a lease agreement over the life of the equipment.
MIMOSA INVESTMENTS (Aquarius Platinum - 50%)
Mimosa Platinum Mine
12-month rolling average DIIR improved to 0.25 per 200,000 man hours
Production decreased by 4% to 577,932 tonnes
Head grade improved by 1% to 3.65g/t
Recoveries deteriorated slightly
Volumes processed decreased by 6% to 555,098 tonnes
Stockpiles at the end of the quarter totalled approximately 182,017 tonnes
PGM production decreased by 6% to 50,456 PGM ounces
Revenue decreased by 8% to US$70 million due to lower metal prices achieved during the quarter
Mining cash costs increased by 1% to US$67 per tonne, and costs per PGM ounce by 1% to $739
Stay-in-business capital expenditure was $329 per PGM ounce for the quarter
Mimosa's cash margin for the period fell from 50% to 49%
Commentary
The Mimosa mine itself continues to operate well. However, the Zimbabwean political and regulatory environment becomes ever more challenging for all mining companies operating in the country. Second quarter production performance was adversely affected by power outages as well as surface electrical breakdowns. Installed power generating capacity in Zimbabwe is not adequate to meet demand. This has been the situation for some time and has resulted in a situation where local generation is augmented by importing from Hydro Cabhora Basa (HCB) of Mozambique. Mimosa's production performance will, as in the past, largely depend on the Zimbabwe Electricity Supply Authority's (ZESA) ability to manage the power situation in the short to medium term. HCB has threatened to cut off supply to ZESA for non-payment, and discussions are currently ongoing between the local power utility, HCB and Mimosa management in order to arrive at a solution to this situation.
Press reports have been circulating in the past month relating to a potentially significant rise in various fees for the mining industry. These relate principally to ground rental, mining licensing and mineral export licensing fees, among others. If implemented as reported, these revised fees could result in an increase of 50,000 percent compared to the current fee regime and will have a huge impact on all mining companies. Mimosa might be faced with an additional multi-million Dollar charge. Discussions are currently being conducted through the Chamber of Mines with a view to achieving reduced and sustainable mining fees.
Mimosa has to date operated offshore foreign currency accounts domiciled in London and Mauritius. The Reserve Bank of Zimbabwe has recently issued a directive for these accounts to be localised in Zimbabwe as of 1 February 2012. Mimosa will comply with this directive and work closely with its suppliers and bankers in order to ensure that this development does not have a negative impact on operations.
As previously disclosed, royalties for gold and platinum have been increased to 7% and 10% of revenue respectively, as of 1 January 2012. The relevant authorities are being engaged with a view to taking a holistic approach to the issue of royalties, taxes and other government related payments such that a streamlined payment structure is put in place.
As disclosed at the time, a deed of trust establishing the Zvishavane Community Trust was signed during the quarter, to form an indivisible part of the full indigenisation plan. Discussions with the Ministry of Indigenisation will resume in January 2012 to get full acceptance of Mimosa's indigenisation proposal, and the official launch of the trust by the President of Zimbabwe is now expected in early 2012.
Operating cash costs per ounce
Slightly lower production in the second quarter had a resultant negative impacton unit cash costs. 4E 6E 4E net of by-products (Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni, Cu & Co) Mimosa 739 699 381 Capital Expenditure
The slightly elevated capital expenditure in the second quarter was spent largely on a conveyor belt extension, the down-dip development, ventilation walls underground and construction of staff housing.
TAILINGS OPERATIONS
Chromite Tailings Retreatment Plant (CTRP) (Aquarius Platinum - 50%)
Material processed increased 22% to 86,000 tonnes
Head grade increased to 3.05g/t
Recoveries increased by 27% to 14%
Production increased to 1,117 PGM ounces
Cash costs decreased by 31% to R11,120 per PGM ounce
Revenue was R7 million for the quarter
CTRP's cash margin for the period was (80%), a decrease from (516%) in the previous quarter
Platinum Mile (Aquarius Platinum - 91.70%)
Material processed increased 7% to 1,313,000 tonnes
Head grade decreased to 0.51 g/t
Recoveries remained constant at 15%
Production increased to 3,328 PGM ounces, all of which is now attributable to Aquarius as Platinum Mile is consolidated
Cash costs decreased by 18% to R6,335 per PGM ounce
Revenue was R22 million for the quarter
The cash margin for the period was 8%, a decrease from 22% in the previous quarter
CommentaryCTRP:
Plant modifications and upgrades were completed in the quarter. Throughput and recoveries showed a steady increase. It is expected that the operation will again yield positive margins and operate profitably from the third quarter of FY2012 onwards.
Platinum Mile:
Volumes, grades and recoveries have remained fairly constant for the quarter. Lower basket prices have impacted negatively on cash margins. The operation is running profitably and a feasibility study to evaluate the viability of pumping Kroondal tailings to be treated at the operation has commenced. Platinum Mile is now consolidated in the Aquarius accounts, which results in 100% of production being attributable and the generation of a small minority interest in the group income statement.
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 11,120 10,291 10,141 Platinum Mile 6,335 5,462 4,850
Statistical Information: Kroondal P&SA1
[Please refer to www.aquariusplatinum.com for statistical table]
Statistical Information: Marikana P&SA2
[Please refer to www.aquariusplatinum.com for statistical table]
Statistical Information: Everest
[Please refer to www.aquariusplatinum.com for statistical table]
Statistical Information: Mimosa
[Please refer to www.aquariusplatinum.com for statistical table]
Statistical Information: Chrome Tailings Retreatment Plant
[Please refer to www.aquariusplatinum.com for statistical table]
Statistical Information: Platinum Mile
[Please refer to www.aquariusplatinum.com for statistical table]
CORPORATE MATTERS
Premium Listing on the London Stock Exchange
On 28 November, Aquarius completed its transfer of listing category from a standard listing to a premium listing (commercial company) on the Official List of the UK Listing Authority.
"Domestic" listing in South Africa
Aquarius is listed on the JSE in South Africa via an "inward-bound dual listing", a status which has historically signified that Aquarius' shares are to be treated as foreign assets for the purposes of Exchange Control. This has imposed limitations on South African institutions and individuals holding Aquarius shares. In his 2011 Medium Term Budget speech, the South African Minister of Finance proposed that such shares be henceforth treated as "domestic" for the purposes of trading on the JSE, and be eligible for index inclusion. On 12 January 2012, the JSE announced that the shares of all companies with inward-bound dual listings, including Aquarius, will be treated as domestic with immediate effect. As a result there are no longer any restrictions on South Africans holding Aquarius shares, and subject to free float requirements, Aquarius will be eligible for inclusion in the JSE equity indices.
More information on all corporate matters can be found at www.aquariusplatinum.comAquarius 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 HaslamKofi MornaNicholas Sibley
Remuneration/Succession Planning Committee
Edward Haslam (Chairman)David DixZwelakhe MankazanaNicholas SibleyNomination Committee
The full Board comprises the Nomination Committee
Company SecretaryWilli BoehmAQP ManagementJean Nel Executive: Corporate Finance
Gavin Mackay Executive: Business Development & Communications
AQPSA ManagementStuart Murray Executive Chairman Anton Lubbe Managing Director Mkhululi Duka Director: Human Resources & Transformation Jean Nel Director: Commercial H©l¨ne Nolte Director: Finance Robert Schr¶der Director: Projects Abraham van Ghent Senior General Manager: Operations (Acting as GM: Kroondal) Graham Ferreira General Manager: Group Admin & Company Secretary Wessel Phumo General Manager: Marikana Augustine General Manager: Everest Simbanegavi Jan Hattingh General Manager: Engineering Dave Starley General Manager: Projects Mimosa Mine ManagementWinston 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 2011, the Company had in issue: 470,312,578 fully paid common shares and 120,000 unlisted options.
Substantial Shareholders 31 December 2011 Number of Shares Percentage
Savannah Consortium 61,754,371 13.13 JP Morgan Nominees Australia Limited 45,207,771 9.61
HSBC Custody Nominees (Australia) Limited 35,365,053 7.52
National Nominees Limited 35,079,474 7.46 Main Listing: Australian Securities Exchange Trading Information (AQP.AX) Secondary London Stock Exchange (AQP.L) ISIN number BMG0440M1284 Listing: Secondary JSE Limited (AQP.ZA) ADR ISIN number US03840M2089 Listing: Convertible Bond ISIN number XS0470482067 Broker (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 18 Alluvion (A division of FirstRand 2000 58 Mounts Bay Bank Limited) Road, 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 1140 Facsimile: +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, Australia
Postal Address: PO Box 485, South Perth, WA 6151, Australia
Telephone: +61 (0)8 9367 5211 Facsimile: +61 (0)8 9367 5233 Email: info@aquariusplatinum.com
For further information please visit www.aquariusplatinum.com or contact:
In AustraliaWilli Boehm+61 (0) 8 9367 5211
In the United Kingdom and South Africa
Gavin Mackay
gavin.mackay@aquariusplatinum.com
+ 44 7909 547 042GlossaryA$ Australian Dollar Aquarius Aquarius Platinum Limited or 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 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 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)
UG2 Reef A PGE-bearing chromite layer within the Critical Zone of the Bushveld
Complex
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