| Thu 7 Feb 2008, 9:15 | | AQP - Aquarius Platinum Limited - Half year financial results (December 2007) |
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AQP
AQP
AQP - Aquarius Platinum Limited - Half year financial results (December 2007)
Aquarius Platinum Limited
(Incorporated in Bermuda)
Registration Number: EC26290
Share Code JSE: AQP
ISIN Code: BMG0440M1029
("Aquarius" or the "Company")
Half Year Financial Results (December 2007)
* Highlights of the half year
* Net Profit up 25% to $106.6 million (US 41.6 cents per share)
* Production stable at 277,813 PGM ounces attributable
* Interim dividend up 150% to US 10 cents per share
* Operational
* Kroondal margins stable despite increased development and K5 ramp-up
* Increased production at Marikana as underground operations ramp-up
* Continued ramp-up at Everest lifts production and profit margins
* Mimosa Phase V expansion near completion
* Financial
* Average basket prices increased 24% to $1,502 per PGM ounce
Revenues up 28% to $423.7 million
Net profit up 25% to $106.6 million (US 41.6 cents per share)
Consolidated cash balances at period end $368.7 million, up $81 million since
June 2007
Strategic
Binding offer for the acquisition of a 50% interest in Platinum Mile Resources
(Pty) Limited accepted
Wedza Phase V expansion 85% complete, commissioning on 4 March 2008
Three-for-one share split completed
Commenting on the results, Stuart Murray, CEO of Aquarius Platinum said, "In the
face of a difficult six months from an operational point of view, I am pleased
to be reporting results with a 25% increase in net profits and a solid increase
in our interim dividend.
The operating environment has been troubled by safety issues and poor industrial
relations management by certain of our contractors, whilst power issues in both
Zimbabwe and South Africa have reared their head to a greater degree. Equipment
failure issues at Kroondal and Mimosa were also a negative feature of the half
year.
Despite these problems, production was maintained on a period on period basis
and coupled with rising metals prices, the groups profitability has risen most
satisfactorily.
The coming half year will be most challenging (as already reported to
shareholders), although the ongoing rise in prices will ameliorate this impact.
Until the power situation in both South Africa and Zimbabwe settles, it is
rather difficult to predict where the year`s full production will end up.
On a brighter note, I am pleased to report, the announcement, following our
recent Board meeting, of the acquisition of a 50% interest in Platinum Mile
Resources, a tailings retreatment operation, already in production. Following
completion of documentation, the meeting of conditions precedent and regulatory
approvals, we are pleased to welcome Mvelaphanda Holdings as a shareholder and
both parties are committed to exploring further opportunities in the field of
platinum group metal production from tailings.
Financial results: Half Year to 31 December 2006
Aquarius Platinum Limited announces consolidated earnings for the half year to
31 December 2007 of $106.6 million (US 41.6 cents per share), up 25% on the
previous corresponding six month period to December 2006.
Revenues from ordinary activities for the period rose 28% to $423.7 million
(comprising sales revenue of $411.5 million and interest and other income of
$12.2 million) up from $330.4 million (sales revenue $322.3 million and interest
and other income of $8.0 million) in the previous corresponding period. The
increase in revenue was driven largely by higher PGM basket prices. PGM basket
prices increased an average 24% for the group: 25% in South Africa and 13% in
Zimbabwe. Strong base metal prices boosted earnings in Zimbabwe (with nickel up
39% and copper up 2%) contributing approximately 35% of revenue at Mimosa.
Total on mine PGM production for the period decreased 2% to 460,067 PGM ounces,
however, production attributable to Aquarius increased a quarter of a percent
(0.25%) to 277,813 PGM ounces due to the increased contribution from Everest.
The total cost of production was $175.6 million, up 23%, in part due to a weaker
US Dollar.
Amortisation and depreciation at $24.2 million (December 2006: $18.8 million)
was higher in-line with the expansion program at AQPSA and also the increased
rehabilitation provisions at Kroondal and Marikana being amortised. Net finance
income for the period of $3.3 million, comprised $12.2 million of interest
income and $8.9 million in interest expense.
The Directors have declared an interim dividend of US 10 cents per share (2006:
US 4 cents per share) payable on 21 March 2008 to shareholders registered on 29
February 2008.
The cash balance at 31 December 2007 was $368.7 million.
Production
Total on mine PGM production for the period decreased 2% to 460,068 PGM ounces,
however, production attributable to Aquarius increased a quarter of a percent
(0.25%) to 277,813 PGM ounces due to the increased contribution from Everest.
At the start of the financial year, the Group was targeting annual production of
600,000 PGM ounces in FY2008, an increase of 13% on last year`s record
production. However, as already notified to shareholders (visit
www.aquariusplatinum.com), the Group has suffered production losses since the
start of the fiscal year as a result of industrial relations, safety related
issues and power outages. In common with the rest of the industry, Aquarius
faces ongoing issues with power supply in both South Africa and Zimbabwe. In
view of the ongoing work to identify power savings, and the continuing
production issues at the Everest Mine, new production guidance is difficult.
Foreign Exchange
The Rand strengthened marginally over the 6 months to December 2007, averaging
6.93 and closing at 6.81, though subsequently weakening into 2008. For the
previous corresponding period to December 2006 the Rand averaged 7.23,
strengthening from 7.10 at the start of the period to 7.01 at the end of the
period.
Platinum Group Metal Prices
The PGMs reported strong price increases over the first half of the financial
year, with platinum closing 20% higher at $1,530 per ounce, rhodium 10% higher
at $6,850, gold increasing 28% to $837 per ounce, although palladium was flat at
$364 per ounce. Platinum and rhodium prices continued to benefit from
heightened concerns over supply constraints in South Africa. Furthermore, gold
benefited from the weak US dollar and the flight to precious metals as an
alternative asset class in the face of recessionary concerns. As we have moved
into 2008, all the PGMs have risen materially from their year-end price levels,
as power disruptions in South Africa and Zimbabwe have increased the likelihood
of supply shortfalls.
PGM basket prices for the Group reached record levels over the first half of the
financial year. At our South African operations, the four element basket price
broke through R10,000 per ounce, averaging R10,894 per ounce, equal to $1,572
per ounce. In Zimbabwe, the average achieved basket price for the first half of
the financial year averaged $1,074 per ounce. This resulted in a group basket
price equivalent of $1,502 per PGM ounce or R10,409* per PGM ounce. The nickel
price, however, fell significantly to close $13.41/lb. This impacted on revenue
at the Mimosa mine where nickel is a significant by-product.
*Mimosa basket prices are accounted for in US Dollars. For the purposes of this
calculation they have been translated into Rand at an exchange rate of
USD1=ZAR6.9
Financials
Aquarius Platinum Limited
Consolidated Income Statement
For the Half Year ended 31 December 2007
$`000
Half Year Ended Year
Ended
Note: 31/12/07 31/12/06 30/6/07
Production: (attributable 277,183 277,156 530,726
PGM ounces)
Revenue (i) 423,657 330,388 709,184
Cost of sales (including (ii) (175,662) (142,578) (300,833)
D&A)
Gross profit 247,995 187,810 408,351
Other income 595 386 1,618
Corporate Admin & other (iii) (3,822) (3,574) (8,952)
costs
Finance costs (iv) (8,908) (7,322) (15,218)
Foreign exchange (v) (8,068) 1,684 (1,341)
gains/(losses)
Profit before tax 227,792 178,984 384,458
Income tax expense (vi) (59,178) (46,175) (90,861)
Profit after tax 168,614 132,809 293,597
Minority interest vii) (61,968) (47,438) (106,374)
Net profit 106,646 85,371 187,223
Earnings per share (basic (viii) 41.58 33.46 72.84
- cents)
Notes on the Consolidated Income Statement
(i) Sales revenue increase reflects higher PGM basket price achieved
(ii) Increase in cost of sales reflects impact of inflation, on mine cash
cost increases and higher amortisation charges
(iii) Relates to administration costs of the Aquarius Group
(iv) Increase in finance costs reflects increased pipeline finance on
higher metal prices and increase in the unwinding of the interest on
the rehabilitation provisions.
(v) 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 ($7.7 million) and revaluation of net
monetary assets including impact of depreciating Zimbabwean Dollar
($0.4million)
(vi) Income tax expense for the period for AQPSA and Mimosa
(vii ) Minority interests reflect 46% outside equity interest of the Savannah
Consortium (SavCon) and Impala Platinum Holdings Limited (Implats) in
AQPSA.
(viii)Earnings per share is calculated on the post share split (3:1) as approved
by shareholders in November 2007.
Aquarius Platinum Limited
Consolidated Cash Flow Statement
Half year ended 31 December 2007
$`000
Half year ended Year
ended
Note: 31/12/07 31/12/06 30/06/07
Net operating cash inflow (i) 205,152 159,026 164,214
Net investing cash (ii) (32,996) (25,489) (68,201)
outflow
Net financing cash (iii) (95,297) (36,895) (69,649)
outflow
Net increase in cash held 76,859 96,642 26,364
Opening cash balance 287,663 162,425 263,563
Exchange rate movement on (iv) 4,160 4,496 (2,264)
cash
Closing cash balance 368,682 263,563 287,663
Notes on the Consolidated Cash Flow Statement
(i) Net operating cash flow includes $238 million inflow from operations,
income tax paid $40 million and $6 million net finance income
(ii) Reflects payments for mine development and development costs
(iii) Reflects repayments of shareholder loans and share premium account
(AQPSA level) $69 million, and payment of dividends of $25 million
(iv) Reflects movement of Rand against the US dollar
Aquarius Platinum Limited
Consolidated Balance Sheet
At 31 December 2007
$`000
Half year ended Year
ended
Note: 31/12/07 31/12/06 30/06/07
Assets
Cash assets 368,682 263,563 287,663
Current receivables (i) 107,282 71,245 100,573
Other current assets (ii) 38,591 27,610 26,127
Property, plant and (iii) 214,043 212,140 207,360
equipment
Mining assets (iv) 316,408 279,145 311,425
Other non-current assets (v) 13,230 8,571 12,026
Total assets 1,058,236 862,274 945,174
Liabilities
Current liabilities (vi) 68,128 48,237 50,676
Non-current payables (vii) 2,391 124,410 54,228
Non-current interest- (viii) 33,731 34,843 35,321
bearing liabilities
Other non-current (ix) 181,215 132,813 172,404
liabilities
Total Liabilities 285,465 340,303 312,629
Net assets/(liabilities) 772,771 521,971 632,545
Equity
Parent entity interest 542,199 392,814 456,138
Minority interest 230,572 129,157 176,407
Total Equity 772,771 521,971 632,545
Notes on the Consolidated Balance SheetReflects debtors receivable on PGM
concentrate sales.
i Reflects PGM concentrate inventory.
ii Represents fixed assets within the Group.
iii Increase in mining assets reflects Kroondal, Marikana, Mimosa and Everest
mining assets.
iv Includes tax payable ($22 million) and creditors ($46 million).
V Includes recoverable portion of rehabilitation provision from Anglo
Platinum ($12.8 million), investments in unlisted entities ($0.4 million)
Vi Reflects Angloplats right of recovery of rehabilitation provisions.
Decrease in non-current payables from pcp reflects repayment of shareholder
loans since June 2007 of $54 million.
Vii Includes interest bearing debt payable to RMB ($27 million), embedded lease
re: Everest Mine $8 million.
Viii Reflects deferred tax liabilities $109 million, provision for closure
costs $72 million.
OPERATIONS
AQUARIUS PLATINUM (SOUTH AFRICA) (PTY) LTD (Aquarius Platinum 54%)
P&SA1 at Kroondal
Safety
The 12-month rolling average DIIR improved to 0.44 during the half year.
Regrettably a fatality occurred on 6 July 2007 at East Shaft, in which Mr Ernst
Mower, a hydraulic fitter was electrocuted as a result of inter alia not
following standard lock-out procedures. Further, on 21 November 2007 at Central
Shaft. Mr Johannes Tseliso Nthunya, an underground load haul dumper operator,
employed by contractor Murray and Roberts Cementation was fatally injured
following a fall of ground accident. The mine was voluntarily shut down for 5
days for retraining of the underground workforce.
Mining
* Significant primary development continues to improve face-availability and
mining flexibility
* Underground tonnages increases marginally to 3.2 million and open pit
tonnages declined in line with plan to 133,000.
* Head-grade averaged 2.68 g/t for the first half, down 6% compared to the
first half 2007
Processing
* Plant processed 3,152,000 tonnes, 6% lower that the first half 2007
largely due to smaller contribution from open-pit mining
* Concentrator recoveries steady at 77%
* Production down 13% compared to 208,035 PGM ounces
Revenue
The PGM basket price for the half was good at $1,586 per PGM ounce. Despite
lower production, higher commodity prices lifted revenue to R2.1 billion
(Aquarius share: R1.1 billion). The on-mine cash margin for the half year to
December 2006 was steady at 64% compared with the first half to December 2006.
Operations
Production for the first six months decreased 13% compared with the first half
2006, totaling 3.3 million tons: 3,196,000 tons from underground operations and
133,000 tons from open pit operations.
Production was adversely affected by 9-day shut down of the K2 mill to repair
both of the mill girth gears, the voluntary shut down of the mine following the
fall of ground fatality, Eskom power outages and a one day national NUM strike.
It is estimated that this reduced production by 7,000 PGM ounces (Aquarius
share: 3,500 PGM ounces). Furthermore, the direction of the K5 declines had to
be changed due to adverse geological anomalies, which negatively affected
production.
Primary development increased by 8.1% over the period to a total 7,558 metres.
At the end of period, the stockpile had increased to 123,000 tons in preparation
for the Christmas close and to mitigate the Q3 holiday impact.
Tons processed decreased 6% to 3.152 million tons. The plant head grade fell to
2.68g/t. for the first half due to mining width and dilution of ore whilst
negotiating faults. PGM production decreased by 13% to 208,035 PGM ounces for
the half year (Aquarius attributable: 104,017 PGM ounces).
Operating Cash Costs
Cash costs for the first half increased to R245 per ROM ton and $536 per PGM
ounce.
P&SA2 at Marikana
Safety
The 12-month rolling average DIIR for the half year improved to 0.33 compared
with 0.43 in the previous corresponding period.
Regrettably, a fatality occurred on 11 December 2007 at One Shaft when Mr.
Thabiso Chaka, an underground load haul dumper operator, employed by mining
contractor Murray and Roberts Cementation, was fatally injured following a load
haul dumper accident. The DME, together with AQPSA Management has conducted an
inquiry into the accident.
Mining
* Underground production ramp-up progressing well, totaling 558,000 tons for
the period
* Open pit production reduced in line with plan to 630,000 tons
* Head grade decreased to 3.02 g/t due to changes in geology, notably the
opencast reef intersecting areas of excessive internal waste.
Processing
* Record 1,180,000 tons processed during the quarter, a 19% increase compared
to the first half 2007
* Recoveries fell to 64%, though increasing in the second quarter compared to
the first quarter
* 72,944 PGM ounces produced (Aquarius attributable 36,472 PGM ounces), a 4%
increase compared to the first half 2007
Revenue
The PGM basket price for the half year increased 22% period on period to $1,559
per PGM ounce. Revenues increased nearly 28% to R744 million from R580 million
in the previous corresponding period. The gross margin for the first half was
44%, down from 46% in the previous corresponding period as a result of increased
production costs.
Operations
Total production for the first six months increased to 1,187,000 million tons,
made up of 558,000 underground tons and 630,000 open pit tons.
Production was adversely affected by industrial action of the underground
contractor`s (Murray & Roberts Cementation) employees. Due to an ongoing
dispute over bonus payouts the workforce embarked on a slow strike which
culminated in a seven day unprotected industrial action towards the end of the
period. The workforce further participated in a one day national stay away.
The estimated production loss as a result of the above was 3,000 PGM ounces.
(Aquarius share: 1,500 PGM oz).
The surface stockpile (predominantly comprising oxidised material) decreased to
172,000 tons at the end of the period.
During the first six months, a total of 1,180,000 tons were processed, a 19%
increase period on period.
The plant head grade averaged 3.02g/t for the first six months. Plant
recoveries fell 8% to 64%, resulting in production of 72,944 PGM ounces, up 4%
compared to the first six months to 2007.
Operating Cash Costs
Cash costs averaged R355 per ROM ton for the period. Cash costs per PGM ounce
increased by 30% to R5,742 compared to the first six months to 2007. Cash costs
in the second quarter, however, showed some improvement, reducing 18% to R5,203
per PGM ounce compared to the first quarter
Contractor dispute with Moolman Mining
AQPSA has received 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. The response has not
changed AQPSA`s view of the merits of the matter in any respect.
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.
All pleadings in the matter are now closed and the legal teams will be meeting
in the near future to discuss a time table and procedural issues for the hearing
of the matter.
Everest Platinum Mine
Safety
The 12 month rolling average DIIR for the half year improved to 0.84 compared
with 0.52 in the previous corresponding period.
Regrettably two fatalities occurred during the quarter. On Tuesday 23 October,
Mr. Juao Jose Paulo, an Utility Vehicle Driver employed by the mining
contractor, Shaft Sinkers Mining Ltd, was fatally injured in an accident
resulting from being trapped between two vehicles on surface. On Saturday 24
November, Mr. Tete Tlali, a Rockdrill Operator employed by the mining
contractor, Shaft Sinkers Mining Ltd, died following a fall of ground accident.
The DME, together with AQPSA Management has conducted inquiries into both the
accidents. The results of the enquiries are still pending.
Mining
* The continuing ramp-up in underground ramp operations resulted in a 43%
increase in production to 1,159,000 tons
* Opencast production fell in line with plan to 135,000 tons
* Head grade increased to 2.97 g/t
Processing
* Total 1,266,000 tons processed
* Significant improvement in recoveries to 79% reflecting increased
underground to open pit production blend
* Production ramps up to 95,560 PGM ounces
Revenue
The PGM basket price increased by 31% to $1,553 per PGM ounce compared to the
`previous corresponding period. The strong increase in prices, combined with
significantly higher volumes as the operation continues to ramp up resulted in
revenues increasing 53% to of R995 million. The cash margin increased to 66%.
Operations
Operational ramp-up continued with opencast and underground producing a total
1,294,000 tons. Through the period, the production of underground to open pit
ore shifted firmly in favour of the higher quality underground ore.
Underground production was affected by voluntary stoppages due to the fatal
accidents, a two day unprotected work stoppage and a national one day protected
stay-away. 2,000 PGM ounces were lost (Aquarius share: 2,000 PGM ounces), due
to the voluntary closure of the mine as a result of the fatal accident on 24
November 2007. Complex geological ground conditions requiring additional
support also adversely affected production on the northern side of the mine.
Concentrator throughput was 1,266,000 tons milled for the period. At the end of
the period, the surface stockpile totalled 44,000 tons.
Metallurgical recoveries improved to 79% for the first six months compared with
72% in the previous corresponding period, reflecting the larger underground
contribution in the feed blend.
Production for the first six months totalled 95,560 PGM ounces.
Operating Cash Costs
Cash costs for the period increased to R264 per ROM ton milled, Consequently,
cash costs per PGM ounce for the period increased by 8% to 3,493 per PGM ounce.
Encouragingly, cash costs for the second quarter decreased by 4% to R3,417
compared to the first quarter.
Mimosa Mine (Aquarius 50%)
Safety
The 12-month rolling average DIIR improved to 0.11 for the period.
Mining
* Wedza Phase V Expansion Project 85% completed
* Underground production increased to 971,000 tons
* The surface stockpile increased by 36% to 418,000 tons at the end of the
period
Processing
* Tons processed increased 7% to 896,000 tons despite plant shutdowns
* Average concentrator plant recoveries fell to 76%
* Total mine production increased 3% to 78,032 (Aquarius attributable: 39,016
PGM ounces)
Revenue
The PGM basket price for the period averaged $1,074 per PGM ounce, a 13%
increase compared to the first six months in the previous financial year. The
nickel price over the period averaged 39% higher at $15.66 per pound and copper
2% higher at $3.46 per pound compared to the previous corresponding period.
Base metals contributed approximately 35% of gross revenue. Sales revenue for
the period was $107.3 million (Aquarius attributable: 50%), a 17% increase
compared to the previous corresponding period. The cash margin was steady at
71%. In mid-December logistical problems with the movement of concentrate tons
to South Africa resulted in 1,300 tons of concentrate with an approximate sales
value of $6.0 million (US Dollars) being in transit at cut-off date. This
revenue will therefore be apportioned to the third quarter and second half of
the 2008 financial year.
Revenue in the second quarter was affected by a negative sales adjustment of $6
million as a result of the falling nickel price on the pipeline.
Operations
During the period mining operations hoisted 971,000 tons compared with 935,000
tons in the previous corresponding period. Tons milled during the quarter
totalled 895,000 tons, with the surface stockpile at the end of the period
418,000 tons.
The average plant head grade for the period fell slightly to 3.57 g/t. The
decline was attributable to low blasted grades in the month of October as a
result of the effects of reduced mining width and dilution of ore whilst
negotiating faults. Stringent controls on the mining width, optimisation of the
mined slice and control of secondary blasting of oversize material have resulted
in improvements in the feed grades.
Recoveries for the period were steady at 76.1%. Despite experiencing temporary
plant shutdowns, due to power supply issues production for the period increased
3% to 78,032 PGM ounces (Aquarius attributable: 39,016 PGM ounces.
Operating Cash Costs
Cash costs for the period remained steady at $36 per ROM ton and increased by 5%
to $414 per PGM ounce compares to the previous corresponding period. It should
be noted, however, that cash costs for the second quarter decreased by 10%
compared to the first quarter to $392 per PGM ounce. This was mainly due to
high production throughput and mine wide stringent cost control measures during
the second quarter.
Net of by-products, however, cash costs fell five-fold to -$110 per PGM ounce, a
significant windfall, primarily due to the prevailing nickel prices.
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
* Feed processed doubles to 141,000 tons
* Average recoveries for the period at 26%
* 5,496 PGM ounces produced (Aquarius attributable: 2,748 PGM ounces) a 54%
increase compared with the previous corresponding period
Revenue
The PGM basket price for the period increased 17% to $1,874 per PGM ounce. The
CTRP enjoys a high rhodium content hence the higher basket prices achieved.
Higher volumes and the strong basket price resulted in revenues increasing 61%
to R56 million (Aquarius attributable: 50%, and the cash margin widening from
78% to 81% compared to the previous corresponding period.
Operations
Feed increased from 70,000 to 141,000 tons. During the half year, a mill was
installed ahead of the flotation plant resulting in an improved performance. The
head grade over the first half averaged 4.8 g/t and recoveries at 26%. This
resulted in production increasing by 54% to 5,496 PGM ounces produced (Aquarius
attributable: 2,748 PGM ounces) compared with the previous corresponding period
Operating Costs
Cash costs decreased by 9% to R1,983 per PGM ounce due to higher volumes and the
improved grade.
CORPORATE MATTERS
Share Split Completed
On 5 December 2007, the shareholders of the Company at general meeting approved
the subdivision of the issued capital of the Company on the basis that every one
(1) fully paid common share be subdivided into three (3) fully paid common
shares and that options on issue be adjusted in accordance with the Australian
Stock Exchange Listing Rules, Aquarius
Following the share split there are 256,534,266 shares in issue and 3,059,061
unlisted options.
The new ISIN for shares on the Australian Securities Exchange, The London Stock
Exchange and the JSE Limited is BMG0440M1284 and for the ADRs remains
US03840M2089.
Bakgaga
Following the intersection of rock types resembling Merensky Reef (awaiting
confirmatory assay) as reported in the first quarter, a complete geological
review of the 2D seismic data relating to the relevant farms has been completed.
The results of the drill hole data, coupled with two dimensional seismic
interpretation are encouraging as to the presence of Merensky and UG2 reefs on
the property.
It is proposed that ACS will now commit an amount of R13 million over the next
two years to continue with further geological work, including completing of an
aeromagnetic survey and drilling of up to five holes on the properties.
Post Period Event
Acquisition of 50% Interest in Platinum Mile Resources (Pty) Ltd
Aquarius Platinum announces that it has entered into a binding agreement for the
acquisition of a 50% interest in Platinum Mile Resources (Pty) Ltd. The
shareholding will be acquired from a consortium of private investors and
Mvelaphanda Holdings (Pty) Ltd.
Platinum Mile operates a tailings re-treatment facility which is located in
Rustenburg, North West Province. It is situated within RPM`s Lease Area,
adjacent to Kroondal.
The plant processes certain RPM mine tailings. The concentrates produced by
Platinum Mile are combined and sold to RPM and RPM enjoys a profit share
arrangement with Platinum Mile. The Platinum Mile plant currently produces
approximately 20,000 ounces of PGM (4E) per annum and production ramp-up plans
and technological innovations should see the production from the operation
increase to above 35,000 ounces of PGM (4E) per annum. It is the strategic
intent of the parties to grow the business and the parties will explore current
in-house opportunities as well the acquisition of similar operations within the
industry.
The consideration payable to the shareholders of Platinum Mile for 50% of the
issued share capital amounts to R420 million. The payment comprises of R210
million in cash and R210 million in Aquarius Platinum shares, issued on the
South African register, at a fixed price of R78.33 (
January 2008 VWAP).
Following completion of the transaction documentation, completion of conditions
precedent and regulatory approvals, Aquarius and Mvelaphanda Holdings will have
joint control of Platinum Mile. The company will become, where practicable, the
exclusive vehicle for the development and operation of all tailings re-treatment
opportunities identified by, or available to, the parties.
More information will be provided to shareholders following conclusion of this
transaction, which is expected by the end of May 2008
More information on all the corporate matters can be found at
www.aquariusplatinum.com
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 Financial Director
Graham Ferreira General Manager Group Admin & Company Secretary
Rudi Rudolph General Manager Kroondal
Wessel Phumo General Manager Marikana
Jacques Pretorius General Manager Everest
Gordon Ramsay General Manager Metallurgy
Hugo Holl General Manager Projects & Transformation
Gabriel de Wet General Manager Engineering
Willie Byleveld General Manager Technical Services
Mimosa Mine Management
Winston Chitando Managing Director
Herbert Mashanyare Technical Director
Peter Chimboza Operations Director
Issued Capital
At 31 December 2007, the Company had in issue:
256,534,266 fully paid common shares and 3,059,061 unlisted options
Substantial Shareholders 31 Number of Percentage
December 2007 Shares
Impala Platinum Holdings Ltd 21,381,828 8.33
Nutraco Nominees Limited 17,009,579 6.63
Trading Information
ISIN number remains unchanged following the share split BMG0440M1284
ADR ISIN number US03840M2089
Broker (LSE) (Joint)
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
Investec Securities Limited
Investec Bank (UK) Limited
2 Gresham Street
London, EC2V 7QP
Telephone: +44 (0)20 7597 5970
Facsimile: +44 (0)20 75975120
Broker (ASX)
Euroz Securities
Level 14, The Quadrant
1 William Street
Perth WA 6000
Telephone: +61 (0)8 9488 1400
Facsimile: +61 (0)8 9488 1478
Sponsor (JSE)
Investec Bank Limited
100 Grayston Drive
Sandown
Sandton 2196
Telephone: +27 (0)11 286 7326
Facsimile: +27 (0)11 291 1066
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 Affairs
Dollar or $ United States Dollar
EMPR Environmental Management Programme Report
Everest Everest Platinum Mine
Great Dyke A PGE bearing layer within the Great Dyke
Reef 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
NUM South African National Union of Mineworkers
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
+61 (0)8 9367 5211
In the United Kingdom and South Africa
Nick Bias
+ 44 (0)7887 920 530
nickbias@aquariusplatinum.com
Sponsor: Investec Bank
Date: 07/02/2008 09:15:04 Produced by the JSE SENS Department.
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