| Thu 25 Oct 2007, 8:00 | | AQP - Aquarius Platinum - First Quarter 2008 Produ |
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AQP
AQP
AQP - Aquarius Platinum - First Quarter 2008 Production & Financial Results
Aquarius Platinum
JSE code: AQP
ISIN: BMG0440M1029
25 October 2007
First Quarter 2008 Production & Financial Results
Highlights of the Quarter
- Group attributable production increased to a record of 140,357 PGM ounces
- Group net profit increased 7% to $49.5 million compared to previous
corresponding period
P&SA1 at Kroondal
- Production increased 8% quarter on quarter to 106,493 PGM ounces (Aquarius
attributable: 53,246 PGM ounces), despite 148,983 tons lost due to
unprotected industrial action
- Cash margin for the quarter at 61%, maintained at good levels despite
working cost pressures
P&SA2 at Marikana
- Production increased by 9% to 35,200 PGM ounces (Aquarius attributable:
17,600 PGM ounces)
- Underground production increased 46% to 298,676 tons, despite 25,900 tons
lost due to unprotected industrial action
- Gross cash margin for the quarter at 33%, affected by oxidised ore
recoveries
Everest
- Production increased by 19% to 48,841 PGM ounces
- Record quarter production on basis of improved mining, grade and
metallurgical recovery
- Gross cash margin for the quarter at 62%, despite contractor issues
Mimosa
- Production 38,660 PGM ounces (Aquarius attributable: 19,330 PGM ounces)
- Wedza Phase V expansion delayed
- Gross cash margin for the quarter 71%
CTRP
- Production 2,681 PGM ounces (Aquarius attributable: 1,340 PGM ounces)
- Gross cash margin for the quarter at 80%
Commenting on the results, Stuart Murray, CEO of Aquarius said: "The results for
the quarter demonstrate a good increase in production at a time of sustained
high prices for our commodities. Operating cost pressures and industrial action
have, however, reduced earnings, with the group reporting a modest increase in
net profit for the quarter when compared to the same quarter in the previous
financial year. The challenge at our operations remains achieving efficiencies
in the coming quarters in light of the strong production increases already
achieved."
Group Attributable Production (PGM Ounces)
Production by Mine
PGMs (4E) Quarter Ended
Dec 2006 Mar 2007 Jun 2007 Sep 2007
Kroondal 117,189 102,079 98,370 106,493
Marikana 39,077 30,148 32,286 35,200
Everest 41,191 40,107 40,923 48,841
Mimosa 33,345 34,760 42,732 38,660
CTRP 1,866 1,954 1,877 2,681
Total 232,668 209,048 217,066 231,875
Production by Mine Attributable to Aquarius
PGMs (4E) Quarter Ended
Dec 2006 Mar 2007 Jun 2007 Sep 2007
Kroondal 58,594 51,039 49,185 53,246
Marikana 19,538 15,074 16,143 17,600
Everest 41,191 40,107 40,923 48,841
Mimosa 16,672 17,380 21,366 19,330
CTRP 933 977 938 1,340
Total 136,928 124,577 128,994 140,357
Metals Prices and Foreign Exchange
Platinum reported a respectable price increase over the quarter, closing $100
per ounce stronger, or 8% at $1,377 per ounce. Production shortfalls and
industrial action in South Africa have resulted in tight supply, reflected in
high prices that have increased further in October 2007. Palladium fell 9% over
the quarter, closing at $366 per ounce, largely due to speculative behaviour.
Rhodium was flat over the quarter, closing at $6,150 per ounce, reflecting
ongoing tight supply and demand fundamentals.
PGM basket prices for the Group reached record levels over the quarter in US
Dollar terms. At our South African operations, the four element basket price
remained above R10,000 per ounce, averaging 1% higher than the previous quarter
at R10,651 per ounce, equal to $1,498 per ounce. In Zimbabwe, the average
achieved basket price for the quarter averaged 2% higher at $1,065 per ounce.
Average PGM basket prices achieved at Aquarius operations: US$ per PGM ounce
(4E)
Basket Prices (Quarter Ended)
Dec 2006 Mar 2007 Jun 2007 Sep 2007
Kroondal 1,287 1,427 1,520 1,518
Marikana 1,270 1,369 1,453 1,480
Everest 1,179 1,331 1,438 1,475
Mimosa 934 950 1,047 1,065
CTRP 1,592 1,806 1,856 1,775
Aquarius Group Average 1,211 1,326 1,405 1,438
The Rand Dollar exchange rate for the quarter averaged 7.11, though
strengthening through the quarter to close at 6.88, which impacts on group
profitability.
Financials
Aquarius announces consolidated earnings for the quarter to 30 September 2007 of
$49.5 million (US 58.2 cents per share) as the Group continues to deliver
improved profits at a time of good PGM metal prices. The results represent a
7.4% increase compared to the previous corresponding period, September 2006.
Production of PGMs attributable to shareholders of Aquarius was 140,357 PGM
ounces, up 9% from the previous quarter ended June 2007. Production was higher
for the quarter despite unprotected industrial action which reduced production
by 148,983 tons at Kroondal and 25,900 tons at Marikana.
Revenue for the quarter, net of currency adjustments, was $189.5 million
(comprising sales revenue of $183.7 million and interest income of $5.8
million). High PGM metal prices recorded during the quarter, continued to
support a strong cash flow stream resulting in an increase in Group cash of $107
million for the quarter. Gross margins remain strong across the Group with all
operations with the exception of Marikana recording margin in excess of 60%.
Finance charges for the quarter were consistent at $3.6 million which included a
non-cash component of $1.5 million on the unwinding of the rehabilitation
provision.
Cost of sales increased as a result of higher production and unit costs due to
increases in contractor rates, annual increase in wages and the effect of
industrial action.
Depreciation and amortisation was higher at $10 million reflecting the 9%
increased production. Amortisation arising from the fair value uplift of mineral
rights at $1.8 million was in line with the previous corresponding period.
Aquarius group cash balances at 30 September 2007 were $395 million, an increase
of $107.4 million since June 2007. Net operating cash flow remained strong with
$194 million received from sales and $83 million paid to suppliers. Material
cash flow items (other than mine operations) that affected cash balances during
the quarter included capital expenditure of $10.3 million and $0.6 million in
income tax paid.
Group cash is held as follows:
AQP $88 million*
AQPSA $245 million**
ACS(SA) $2 million
Mimosa $60 million
Total $395 million
* Subsequent to quarter end, $25.5 million was paid out in dividends (30 cents
per share) on 5 October 2007
** Included in AQPSA`s cash balance are funds of approximately $70 million
earmarked for cash backed rehabilitation provisions.
Aquarius Platinum Limited
Consolidated Income Statement
Quarter ended 30 Sep 2007
$`000
Note: Quarter FY ended
Ended
30/09/07* 30/09/06* 30/6/07
Aquarius PGM Production
(attributable ounces) 140,357 140,227 530,726
Revenue (i) 201,918 158,284 710,802
Foreign exchange gain/(loss) (ii) (3,580) 10,287 967
Cost of Sales (iii) (86,667) (70,824) (293,238)
Gross Profit 111,671 97,747 418,531
Amortisation of fair value
uplift
of mineral properties (1,778) (1,976) (7,595)
Gross profit after amortisation
of fair value uplift 109,893 95,771 410,936
Admin & other operating costs (2,012) (1,709) (8,952)
Other FX movements (iv) (4,170) 1,948 (2,308)
Finance costs (v) (3,616) (2,950) (15,218)
Profit before tax 100,095 93,060 384,458
Income tax expense (24,659) (20,762) (90,861)
Profit after tax 75,436 72,298 293,597
Minority interest (vi) (25,915) (26,357) (106,374)
Net profit 49,521 45,941 187,223
EPS (basic - cents) 58.2 54.4 218.5
* Unaudited
Notes on the September 2007 Consolidated Income Statement
(i) Revenue higher due to improved PGM and base metal prices compared to
September 2006
(ii) Reflects effects of adjusting revenue recorded at time of production at
Kroondal, Marikana and CTRP to actual receipts received at the end of the
four month pipeline
(iii)Cost of sales per PGM ounce increased due to impact of inflation and
increased unit costs at Marikana and Everest compared to September 2006 as
a result of more challenging geology being encountered.
(iv) Reflects foreign exchange movements on net monetary assets
(v) Finance costs includes group debt ($0.4 million), pipeline finance ($1.7
million) and unwinding of rehabilitation provision ($1.5 million)
(vi) Minority interests reflect 46% outside equity interest of the Savannah
Consortium 26% (SavCon) and Impala Platinum Holdings Limited 20% (Implats)
in AQPSA
Aquarius Platinum Limited
Consolidated Cash flow Statement
Quarter ended 30 September 2007
$`000
Quarter ended FY ended
Note: 30/09/07* 30/09/06* 30/06/07
Net operating cash inflow (i) 114,428 87,561 323,240
Net investing cash outflow (ii) (10,359) (14,082) (93,690)
Net financing cash outflow (iii) (336) 1,029 (106,544)
Net increase in cash held 103,733 74,508 123,006
Opening cash balance 287,663 162,425 162,425
Exchange rate movement on cash 3,623 (6,553) 2,232
Closing cash balance 395,019 230,380 287,663
* Unaudited
Notes on the September 2007 Consolidated Cash flow Statement
(i) Net operating cash flow includes $194 million inflow from sales and $83
million paid to suppliers from operations, income tax paid of $0.6 million
and net finance income of $4.0 million
(ii) Reflects development and plant and equipment expenditure of $10.3 million
(iii)Includes dividend paid to shareholders $10 million and proceeds from the
exercise of employee options of $2.5 million
Aquarius Platinum Limited
Consolidated Balance Sheet
At 30 September 2007
$`000
Note: 30/09/07* 30/06/07
Assets
Cash assets 395,019 287,663
Current receivables (i) 96,833 100,573
Other current assets (ii) 33,188 26,127
Property, plant and equipment (iii) 213,803 207,360
Mining assets (iv) 311,576 311,425
Other non-current assets 13,287 12,026
Total assets 1,063,706 945,174
Liabilities
Current liabilities (v) 77,519 50,676
Non-current payables (vi) 55,484 54,228
Non-current interest-bearing
Liabilities (vii) 34,572 35,321
Other non-current liabilities (viii) 177,879 172,404
Total Liabilities 345,454 312,629
Net assets 718,252 632,545
Equity
Parent entity interest 511,271 456,138
Minority interest 206,981 176,407
Total Equity 718,252 632,545
* Unaudited
Notes on the September 2007 Consolidated Balance Sheet
(i) Reflects debtors receivable on PGM concentrate sales
(ii) Reflects PGM concentrate inventory
(iii)Represents fixed assets within the Group
(iv) Mining assets reflects Kroondal, Marikana, Mimosa and Everest mining
(mining rights) assets
(v) Includes tax payable ($28 million) and creditors ($49 million)
(vi) Includes non-interest bearing portion of AQPSA shareholder loans (Implats
$23 million and SavCon $30 million)
(vii)Includes interest bearing debt payable to RMB ($27 million) and deemed
lease liability ($7 million)
(viii)Reflects deferred tax liabilities $106 million and provision for closure
costs $72 million
AQUARIUS PLATINUM (SOUTH AFRICA) (PTY) LTD (Aquarius Platinum 54%)
P&SA 1 at Kroondal
Safety
The 12-month rolling average DIIR for the quarter improved to 0.59 from 0.75 in
the previous quarter.
Six lost time injuries occurred during the quarter.
Despite the continuous improvement in the injury rate, an fatality occurred on 6
July 2007 at East Shaft,
in which Mr Ernst James Mower, a hydraulic fitter was electrocuted as a result
of inter alia not following standard lock-out procedures.
Mining
- The mine recorded a 1% increase in total production to 1,606,664 tones,
consisting of 1,523,322 underground and 83,342 open pit tons respectively
- Head grade remained consistent at 2.73 g/t
- Geological anomalies at the K5 Project have adversely affected the ramp-up
to steady-state production
Processing
- Processed tons increased 8% to 1,588,436 tons
- Recoveries flat at 76.5%
- Production increased 8% to 106,493 PGM ounces from 98,370
Revenue
Revenue at Kroondal increased by 6% to R1,018 million for the quarter (Aquarius
share: R509 million) due to increased production and improved commodity prices.
The cash margin for the quarter, however, decreased to 61% from 66% in the
previous quarter, due to the impact of cost pressures for contractor rate
increases.
Operations
Total tons mined increased by 1% to 1,606,664 tons. Underground production
increased 1% to 1,523,322 tons and open pit production increased 8% to 83,342
tons.
During the quarter, production was again adversely impacted by unprotected
industrial action by the underground contractor Murray and Roberts Cementation
employees related to pay issues. It is estimated that this reduced production
by 150,000 tons. The contractor is currently addressing the key industrial
relations issues with unions at shaft, regional and national levels.
The performance of K5 contractor, Redpath Mining, (previously Deilmann-Haniel)
has been negatively affected by adverse geological anomalies encountered in the
decline shaft system. The mining lay-out is being reviewed to address the
geological issues.
Tons processed increased 8% to 1,588,436 tons, including 68 163 tons of opencast
material.
Over the quarter, stockpiles decreased to +/- 50,000 tons.
The head grade remained constant at 2.73 g/t.
Primary development increased by 11% compared to the previous quarter, resulting
in an improvement in redundancy.
Plant recoveries decreased marginally by 0.5% to 76.5% compared to the previous
quarter.
PGM production increased by 8% to 106,493 PGM oz (Aquarius attributable: 53,246
PGM ounces).
Operating Cash Costs
Cash costs increased by 9% to R247 per ton milled as a result of the approved
increase in mining rates and a double-digit annual wage increase implemented for
Murray & Roberts Cementation during the quarter. The increase in primary
development and the transport cost from the increased tonnage from K5 further
contributed to the cost increase. The K5 Shaft is in a ramp-up phase and
therefore attracts high relative unit costs. Consequently, cash costs per PGM
ounce for the quarter increased 10% to R3,683.
Capital Expenditure
During the quarter R56 million was incurred, including R28.6 million for
underground infrastructure establishment, R14.6 million for K5 surface
infrastructure.
P&SA2 at Marikana
Safety
The 12-month rolling DIIR deteriorated to 0.40 due to 3 lost-time injuries which
occurred during the quarter. Marikana achieved 1.4 million fatality-free shifts
at the end of the quarter. Safety initiatives, including an interactive
behaviour coaching initiative, are being implemented.
Mining
Open pit operations produced 283,531 tons
Underground production increased by 46% to 298,676 tons
Stockpile reduced by 8% to 177,917 tons
Head grade remained unchanged at 3.10 g/t
Processing
- Plant processed a total 570,719 ROM tons
- Recoveries increased from 56% to 62%
- Production increased by 9% to 35,200 PGM ounces (Aquarius attributable:
17,600 PGM ounces)
Revenue
The PGM basket price for the quarter averaged $1,480 per PGM ounce, 2% higher
than the previous quarter. Mine revenue increased to R333 million for the
quarter (AQPSA share: R167 million) due to an increase in metal production
together with an improved basket price. An increase in production costs
resulted in the cash margin for the quarter decreasing from 35% to 33%.
Operations
Total production decreased by 2% to 582,207 tons for the quarter, with 51%
coming from underground (previous quarter 34%) and 49% from open-pit operations.
During the quarter production was adversely impacted by unprotected industrial
action by Murray and Roberts Cementation (MRC) employees related to pay issues.
It is estimated that this reduced production by 30,000 tons.
Production from underground operations increased by 46% to 298,676 tons. The
establishment of underground production sections progressed well during the
quarter, with an increase in primary development at No.4 Shaft to 1,301 meters
and to 1,050 meters at No.1 & 2 Shafts. At No 2 Shaft production increased to
41,900 tons from 19,600 tons in the previous quarter.
Production from open pit operations decreased by 27% to 283,531 tons.
Production was adversely affected by a foot wall failure on the south western
portion of the open pit resulting in a lock-up of an estimated 40,000 tons of
reef and an increase in waste stripping in an attempt to expedite production
from other areas.
The stockpile at the end of quarter was 170,000 tons, comprising 150,000 open
pit tons and 20,000 underground tons respectively. The open pit stockpile
includes 70,000 tons of low recovery oxidised material.
A total of 570,719 tons were processed during the quarter, comprising of 262,684
tons from underground and 308,036 tons of open pit material. Head grade
remained consistent at 3.10 g/t whilst recoveries improved by 10% to 62%.
On the P&SA2 Project, expansion capital totalled R5.3 million for the quarter.
The total committed expansion capital expenditure to date is R107 million (AQPSA
share: R54 million) with R97 million incurred to date (AQPSA share: R49
million).
Operating Cash Costs
Cash cost per ROM ton increased by 12% to R390 per ROM ton and by 1% to R6,321
per PGM ounce, mainly as a result of increased stripping associated with the low
wall failure in the open pit operations. Underground unit costs also increased
as a result of the approved increase in mining rates and a double-digit annual
wage increase implemented for Murray & Roberts Cementation during the quarter.
Contractor dispute with Moolman Mining
AQPSA awaits a response from Moolman Mining to AQPSA`s answering affidavit in
Moolman Mining`s counter-application in the motion proceedings instituted by
AQPSA. AQPSA`s application is to stay the Arbitration proceedings instituted by
Moolman Mining in the "rise and fall" formula dispute, pending the outcome of
the action proceedings instituted by AQPSA against Moolman Mining to set aside
the mining contract by reason of Moolman Mining`s misrepresentation when the
mining contract in question was originally concluded.
AQPSA has served a plea to Moolman Mining`s counterclaim in the abovementioned
action proceedings. AQPSA denies that any amounts whatsoever are owing to
Moolman Mining because such claims arise either directly out of the mining
contract or as a result of a finding that AQPSA was not entitled to rescind the
mining contract. A finding that there was a misrepresentation at the instance
of Moolman Mining will have the effect that none of the amounts in the counter-
claim will be payable.
Everest Platinum Mine
Safety
The 12-month rolling DIIR deteriorated from 0.62 to 0.72. Nine lost-time
injuries occurred during the quarter, with falls of ground being the predominant
injury mechanism. A fall of ground campaign was launched during the quarter and
a reduction in fall of ground incidents was realised in the latter half of the
quarter.
Mining
- Underground ore production increased by 14% to 606,122 tons
- Opencast operations production increased to 69,383 tons
- Head grade improved from 2.84 g/t to 2.94 g/t
Processing
- Plant processed 642,586 tons, a 12% increase compared to the previous
quarter
- Recoveries increased to 80% from 78% in the previous quarter
- Production increased 19% to 48,841 PGM ounces
Revenue
Revenue increased 16% to R463 million for the quarter, due to higher PGM
production and the average PGM basket price for the quarter which increased to
$1,475 per PGM ounce. The cash margin for the quarter decreased to 62% from 64%
in the previous quarter.
Operations
Opencast and underground mining combined produced a total 675,505 tons, a 17%
increase compared to the previous quarter, with the production balance roughly
90% from underground and 10% from opencast operations respectively.
Opencast mining production performed well, increasing to 69,383 tons, largely
comprising of high-grade but high cost tons from the deeper areas of the South-
West Pit. The opencast reserve is approaching depletion and the last opencast
production will be delivered in the next quarter. Opencast rehabilitation is
also showing good progress with backfill and topsoil placement in the depleted
north pit at 95% completion.
Underground on-reef development and the establishment of stoping sections
continued during the quarter. Underground production showed a 14% improvement,
increasing to 606,122 tons from 531,191 tons in the previous quarter. Shaft
Sinkers (Pty) Ltd, the sole shareholder of Shaft Sinkers Mining (Pty) Ltd has
informed Aquarius Platinum (South Africa) of its intention to sell its
shareholding in Shaft Sinkers Mining (Pty) Ltd to JIC Mining Services (Pty) Ltd.
Although the transaction will only become effective in the next quarter, the
announcement of the transaction to the workforce resulted in labour instability
which adversely affected production in the latter part of the quarter. JIC
Mining (Pty) Ltd performs contract mining in the platinum, gold and ferrochrome
industries.
The underground head grade improved as reef widths increased and development
tons decreased comparative to stoping tons. The plant head grade accordingly
improved to 2.94 g/t from 2.84 g/t in the previous quarter.
Concentrator throughput was 642,586 tons milled for the period, with no tons
consumed from the stockpile, which increased to 48,188 tons at the end of the
quarter. Recoveries improved to 80% from 78% due to improved process stability
resulting from the implementation of advanced flotation process control systems.
The grade and recovery improvement had a significant positive impact on the PGM
yield with record production for the quarter of 48,841 PGM oz, a 19% improvement
on the previous quarter.
Operating Cash Costs
Cash costs increased by 8% to R271 per ROM ton milled as a result of the
increase in mining rates approved for Shaft Sinkers Mining as well as a double-
digit wage increase implemented by Shaft Sinkers Mining during the quarter.
Process plant unit cost increased as a result of the annual increase in the cost
of the operating contractor, Minopex, coming into effect in the quarter. The
increase in cost was however offset by the improved PGM yield, with cash costs
per PGM ounce for the quarter increasing by only 1% to R3,566 per PGM ounce.
MIMOSA INVESTMENTS (Aquarius Platinum 50%)
Mimosa Platinum Mine
Safety
The DIIR was constant at 0.23 for the quarter compared to the previous quarter.
Mining
- Underground production increased 2% to 457,155 tons
- The surface stockpile increased to a total 378,673 tons at the end of the
quarter
Processing
- Concentrator plant recoveries decreased to 76.2% from 77.9%
- Total mine production decreased by 9% to 38,660 PGM ounces (Aquarius share:
19,330), due to the impact of electrical power outages amounting to 127
hours during the quarter.
Revenue
The average achieved PGM basket price for the quarter increased by 2% to $1,065
per PGM ounce. The average nickel price over the quarter decreased by 13% to
$17.95 per pound from $20.52 per pound in the previous quarter. Sales revenue
for the quarter totalled $54.8 million, a decrease of $5.6 million when compared
to the previous quarter, with base metals contributing approximately 38% of
gross revenue. The gross cash margin decreased to 71% from 77% in the previous
quarter.
Operations
During the quarter mining operations hoisted 457,155 tons compared to 448,732
tons in the previous quarter. Tons milled during the quarter totalled 439,365
tons, with 17,790 transferred to the stockpile, which totalled 378,673 tons at
the quarter end using the reconciliation method.
The average plant head grade declined marginally to 3.59 g/t, compared to 3.64
g/t in the previous quarter.
Tons processed totalled 439,365, a 9% decrease compared to the previous quarter.
Hoisting performance was hampered by load-shedding due to nation-wide shortage
of electricity. The plant operations were unstable during the quarter due to
problems relating to maintenance of the primary mill and the secondary mills as
well as failure of the tailings thickener drive.
Recoveries for the quarter slightly decreased to 76.2% from 77.9%.
PGM production during the first quarter decreased by 10% to 38,660 ounces
(Aquarius attributable: 19,330 ounces).
Operating Cash Costs
Cash costs for the quarter were impacted badly at $437 per PGM ounce, a 25%
increase compared to the previous quarter`s figure of $350 per PGM ounce. The
impact of foreign currency modalities were a major factor in this increase.
Net of by-products, cash costs were negative at ($150) per PGM ounce, compared
to ($289) per PGM ounce in the previous quarter, primarily due to lower nickel
production and lower nickel prices which were 13% lower than the previous
quarter.
Operating costs for the quarter were 25% higher than the previous quarter as a
result of hyperinflationary conditions prevailing in the country (the inflation
-exchange rate disparity continues to exacerbate pressure on local costs), low
production throughput recorded and the breakdowns experienced on the secondary
ball mill.
Update on Foreign Currency Retention Levels in Zimbabwe
On the 1st of October 2007, the Governor of the Reserve Bank of Zimbabwe issued
the Mid-Year Monetary Policy Statement. One of the measures announced within
this statement was the centralising, at the Central Bank of corporate foreign
currency balances held with financial institutions. Financial institutions now
only maintain "mirror accounts" of the balances held at the Central Bank.
Further, foreign currency retention levels were increased from the previous
levels of 60% to 65% with the balance of 35% being sold to the Central Bank.
Mimosa continues to operate under the regulations of the Enhanced Platinum
Sector Regime and the related tripartite Account Management Agreements signed
between the Central Bank, MBCA Bank and Mimosa. The Company`s foreign currency
balances still continue to be maintained offshore.
Wedza Phase 5 Expansion
Progress on the Phase V Expansion Project has continued to be disappointing.
The areas of concern are completion of ventilation holes and commissioning of
the processing plant on time. Apart from the plant, the major challenge is to
complete the establishment of the raise bores for ventilation. Murray and
Roberts are scheduled to be on site on the 24th of October 2007 and should
finish by end of November 2007. The completion date is forecast at 26 February
2008. The project costs totalled $6.34 million for the quarter. The total
committed expansion capital expenditure to date is $16.4million.
AQUARIUS PLATINUM (SA) CORPORATE SERVICES (PTY) LTD
Chromite Tailings Retreatment Plant (CTRP) (Aquarius Platinum 50%)
Safety
The DIIR is zero. No Lost Time Accidents have occurred since the project
commenced.
Processing
- Material processed increased to 70,000 tons
- Grade increased to 5.0 g/t and recoveries increased to 23%
- Production increased by 43% to 2,681 PGM ounces
Revenue
The PGM basket price for the quarter decreased 4% to $1,775 per PGM ounce.
Reflecting higher production, revenue for the quarter increased to R26 million
(Aquarius share: R13 million). The cash margin increased to 80%.
Operations
The increase in recovery and ounces is attributable to the installation of a
thickener and a fine grind ahead of the flotation plant.
Costs
Cash costs decreased by 8.5% to R1,976 per PGM ounce. The decrease was due to
the increase in production.
`
Bakgaga Mining (Aquarius Platinum Farm In Exploration Agreement)
In October 2006, Aquarius signed a farm-in agreement with Bakgaga Mining to
drill and conduct feasibility work at prospective PGMs bearing properties on the
Eastern Limb of South Africa`s Bushveld.
Exploration has been ongoing and recently intersected rock types similar to the
Merensky Reef at a depth of approximately 1,900m below surface. This confirms
the occurrence of the Critical Zone lithologies of the Bushveld Complex on the
properties and further drilling will be done to assess the extent of the
Critical Zone development. PGM mineralisation will be evaluated by analysis of
the target zone.
CORPORATE MATTERS
Proposed Share Split
On 8th August 2007 at the time of the 2007 Annual Results, the Board requested
to place before shareholders at the upcoming AGM in November 2007 a resolution
seeking approval to subdivide the issued capital of the company on the basis
that each existing share be subdivided into three shares and each existing
option be subdivided into three options each. It is believed that the share
split will benefit shareholders by increasing the liquidity and affordability to
investors of the company`s shares.
The Resolution will be put to the AGM on 23rd November and should it be approved
should be implemented by the end of December 2007.
Aquarius Platinum Limited
Incorporated in Bermuda
Exempt company number 26290
Board of Directors
Nicholas Sibley Non-executive Chairman
Stuart Murray Chief Executive Officer
David Dix Non-executive
Timothy Freshwater Non-executive
Edward Haslam Non-executive
Sir William Purves Non-executive
Kofi Morna Non-executive
Zwelakhe Mankazana Alternate to Kofi Morna
Audit/Risk Committee
Sir William Purves (Chairman)
David Dix
Edward Haslam
Nicholas Sibley
Remuneration/Succession Planning Committee
Edward Haslam (Chairman)
Nicholas Sibley
Nomination Committee
The full Board comprises the Nomination Committee
Company Secretary
Willi Boehm
AQPSA Management
Stuart Murray Executive Chairman
Anton Wheeler Managing Director
Ayanda Khumalo Finance Director
Graham Ferreira General Manager Admin & Company Secretary
Hugo Holl General Manager Everest
Willie Byleveld General Manager Marikana
Gordon Ramsay General Manager Metallurgy
Rudi Rudolph General Manager Kroondal
Gabriel de Wet General Manager Engineering
Mimosa Mine Management
Winston Chitando Managing Director
Herbert Mashanyare Technical Director
Peter Chimboza Operations Director
Issued Capital
At 30 September 2007, the Company had on issue:
85,511,422 fully paid common shares and 1,019,687 unlisted options
Substantial Shareholders 30 September 2007 Number of Shares Percentage
Impala Platinum Holdings Ltd 7,127,276 8.33
Nutraco Nominees Limited 5,626,120 6.58
Trading Information
ISIN number BMG0440M1029
Broker (LSE) (Joint) Broker (ASX) Sponsor (JSE)
Morgan Stanley & Co International Limited
20 Cabot Square, Canary Wharf
London, E14 4QW
Telephone: +44 (0) 20 7425 8000
Facsimile: +44 (0)20 7425 8990 Euroz Securities
Level 14, The Quadrant
1 William Street
Perth WA 6000
Telephone: +61 (0)8 9488 1400
Facsimile: +61 (0)8 9488 1478
Investec Bank Limited
100 Grayston Drive
Sandown
Sandton 2196
Telephone: +27 (0)11 286 7326
Facsimile: +27 (0)11 291 1066
Investec Securities Limited
Investec Bank (UK) Limited
2 Gresham Street
London, EC2V 7QP
Telephone: +44 (0)20 7597 5970
Facsimile: +44 (0)20 75975120
Aquarius Platinum (South Africa) (Proprietary) Ltd
54% Owned
(Incorporated in the Republic of South Africa)
Registration Number 2000/000341/07
Block A, 1st Floor, The Great Wall Group Building,
5 Skeen Boulevard, Bedfordview
South Africa 2007
Postal Address P O Box 1282, Bedfordview, 2008, South Africa.
Telephone: +27 (0)11 455 2050
Facsimile: +27 (0)11 455 2095
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
Glossary
A$ Australian Dollar
Aquarius Aquarius Platinum Limited
ABET Adult Basic Education Training programme
APS Aquarius Platinum Corporate Services Pty Ltd
AQPSA Aquarius Platinum (South Africa) Pty Ltd
ACS(SA) Aquarius Platinum (SA) (Corporate Services) (Pty) Limited
CTRP Chromite Ore Tailings Retreatment Operation
DIFR Disabling Injury Incidence 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 South African Government Department of Minerals and Energy
Dollar or $ United States Dollar
EMPR Environmental Management Programme Report
Everest Everest Platinum Mine
Great Dyke Reef A PGE bearing layer within the Great Dyke Complex in
Zimbabwe
g/t Grams per tonne, measurement unit of grade (1g/t = 1 part per million)
JORC code Australasian code for reporting of Mineral Resources and Ore Reserves
JSE JSE Securities Exchange South Africa
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
MRC Murray & Roberts Cementation
NOSA National Occupational Safety Association
PGE(s) (6E) Platinum Group Elements plus Gold. Five metallic elements
commonly found together which constitute the platinoids (excluding Os (osmium)).
These are Pt (platinum), Pd (palladium), Rh (rhodium), Ru (ruthenium), Ir
(iridium) plus Au (gold)
PGM(s) (4E) Platinum Group Metals plus Gold. Aquarius reports the PGMs as
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
RK1 Consortium comprising Aquarius Platinum (SA) (Corporate Services) (Pty)
Limited (ASACS), Ivanhoe Nickel and Platinum Limited and Sylvania South Africa
(Pty) Ltd (SLVSA).
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.
RPM Rustenburg Platinum Mines Limited
SavCon The Savannah Consortium. The principal Black Empowerment Investor in
Aquarius Platinum
TKO TKO Investment Holdings Limited
Ton 1 Metric tonne (1,000kg)
UG2 Reef A PGE bearing chromite layer within the Critical Zone of the Bushveld
Complex
Z$ Zimbabwe Dollar
For further information please contact:
In Australia:
Willi Boehm
Aquarius Platinum Corporate Services Pty Ltd
+61 (0)8 9367 5211
In the United Kingdom and South Africa
Nick Bias
BuckBias Limited
+ 44 (0)7887 920 530
Date: 25/10/2007 08:00:51 Produced by the JSE SENS Department.
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