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AQP
AQP
AQP - Aquarius Platinum - first quarter production and financial results 30
September 2009
Aquarius Platinum Limited
(Incorporated in Bermuda)
Registration Number: EC26290
JSE Code: AQP
ISIN: BMG0440M1029
27 October 2009
FIRST QUARTER PRODUCTION AND FINANCIAL RESULTS30 September 2009
Highlights of the Quarter
* Attributable production of 96,500 PGM ounces
* PGM Dollar prices improved through quarter
* Gross "cash" profit for the quarter of $18.6 million
* Net profit for the quarter was $9.5 million after $3.2 million "once off"
costs associated with the Ridge acquisition and after $3.4 million movement
on
the convertible bond
* Ridge Mining plc acquisition successfully completed
* Re-establishment of Everest Mine on track
Commenting on the results, Stuart Murray, CEO of Aquarius Platinum said "While
production and hence costs were negatively affected by unprotected industrial
action at the Kroondal and Marikana mines, the underlying performance of these
operations remained stable. The attributable loss of approximately 16,000
ounces due the industrial action is in line with previous guidance given.
Dollar metal prices continued to show resilience, with a 6% increase in the
PGM Dollar basket price during the quarter. That said, the continuing strength
of the Rand, and rising input costs (most notably of electricity) will
continue to place margins in the South African platinum industry under
pressure.
"The Ridge Mining acquisition was completed during the quarter, and these
operations have now been firmly integrated within the AQPSA management
structures. We expect these operations to add modest growth to existing
operations in the short to medium term, while presenting a prospective growth
profile in the longer term. Good progress has been made with the re-
establishment of Everest; although a decision on when to resume mining
operations will only be made when market circumstances are more favourable.
"Despite market turmoil, Rand strength and the "industrial action season" in
South Africa, Aquarius remains cash positive, with a strong balance sheet and
$195 million in cash. We will continue to seek further growth opportunities
and are well-positioned to do so in an industry that is cash-strapped and
under pressure."
P&SA1 at Kroondal
* PGM production of 88,808 PGM ounces (44,404 PGM ounces attributable to
Aquarius)
* Production affected by unprotected industrial action
* One million fatality free shifts achieved on 21 August
* Firstplats transaction effective, extends Kroondal life-of-mine in excess of
one year
* Cash margin for the quarter of 19%
P&SA2 at Marikana
* PGM production of 31,222 PGM ounces (15,611 PGM ounces attributable to
Aquarius)
* Production affected by unprotected industrial action and open pit pothole
intersection
* Firstplats transaction effective, extends Marikana life-of-mine in excess of
two years
* Cash margin for the quarter of -8%
Everest
* Re-establishment project on track
* Excavation of North decline portal complete; decline development ready to
commence
* Department of Minerals and Resources (DMR) original mine suspension order
(Section 54 notice) fully lifted
Mimosa
PGM production 50,828 PGM ounces (25,414 PGM ounces attributable to Aquarius).
Cash margin for the quarter of 36%
CTRP
* PGM production of 1,740 PGM ounces (870 PGM ounces attributable to Aquarius)
* Effective cash margin of 42%
Platinum Mile
* PGM production of 5,932 PGM ounces (2,966 PGM ounces attributable to
Aquarius)
* Milling expansion yielding anticipated results
* Effective cash margin of 34%
Blue Ridge
* Fully integrated into AQPSA operational management
* Mining ramp-up and concentrator commissioning in progress
* PGM production of 14,469 PGM ounces (7,235 PGM ounces attributable to
Aquarius)
* Revenues and operating expenditure capitalised
Production by mine
PGMs (4E) Quarter ended
Dec 2008 Mar 2009 Jun 2009 Sep 2009
Kroondal 109,707 104,920 105,720 88,808
Marikana 42,451 38,851 37,753 31,223
Everest* 31,703 - - -
Mimosa 43,232 46,278 46,874 50,828
CTRP 1,784 1,587 1,689 1,740
Platinum Mile 3,103 2,788 4,479 5,932
Blue Ridge - - - 14,469
Total 231,980 194,424* 196,515 193,001
*Mining operations at Everest mine were temporarily suspended from the night
shift on 7 December 2008 following a subsidence incident. The mine is
currently undergoing a re-establishment capex programme to ready the mine for
operations.
Production by mine attributable to Aquarius
PGMs (4E) Quarter ended
Dec 2008 Mar 2009 Jun 2009 Sep 2009
Kroondal 54,854 52,460 52,860 44,404
Marikana 21,226 19,426 18,877 15,611
Everest* 31,703 - - -
Mimosa 21,616 23,139 23,437 25,414
CTRP 892 793 845 870
Platinum Mile 1,552 1,394 2,240 2,966
Blue Ridge - - - 7,235
Total 131,843 97,212 98,259 96,500
*Mining operations at Everest mine were temporarily suspended from the night
shift on 7 December 2008 following a subsidence incident. The mine is
currently undergoing a re-establishment capex programme to ready the mine for
operations.
Metals prices and exchange rate
US Dollar prices increased across all PGM metals with palladium (16%) and
rhodium (14%) recording the largest price increases.
Platinum closed the quarter up 5% at $1,230 per PGM ounce. Platinum has now
traded above $1,200 per ounce since 2 August, trading at a quarterly high of
$1,339 per ounce on 16 September. Strong jewellery demand in China continues
to mitigate reduced demand from the auto industry. Rhodium increased by 14% to
average $1,603 per ounce for the quarter. The metal broke out of the $1,500
band on 23 July and traded above $1,600 through to the end of the quarter,
closing at $1,650 per ounce. Palladium closed the quarter up by 18% at $294
per ounce and has now increased by 55% from its January 2009 price, assisted
by increased exchange traded fund (ETF) activity.
Average PGM basket prices achieved at Aquarius operations: US$ per PGM ounce
(4E)
Basket prices (Quarter ended)
Dec 2008 Mar 2009 Jun 2009 Sep 2009
Kroondal 746 795 915 972
Marikana 744 799 928 999
Everest 746 - - -
Mimosa 905 626 751 805
CTRP 818 859 993 1,074
Platinum Mile 596 810 930 1,004
Blue Ridge - - - 967
Aquarius Group 770 756 879 931
average
Consequently, PGM basket prices in US Dollars strengthened at all operations,
with the average group basket price being 6% higher at $931 per ounce compared
to the previous quarter. The average basket price at the South African
operations was $981 per PGM ounce, equivalent to R7,744 per PGM ounce at an
average exchange rate for the period of R7.89:$1.
The Rand maintained its strength against the US Dollar during the quarter,
with the average Rand-Dollar exchange rate appreciating by 8% to R7.89. The
Rand closed the quarter at R7.42 to the US Dollar.
Financials
Consolidated earnings for the quarter ended 30 September 2009 showed a net
profit of $9.5 million (US 2 cents per share). Net cash profit for the quarter
was $18.7 million. This is a significant improvement on the previous
corresponding quarter (September 2008) when a net loss of $21.5 million was
recorded due largely to the impact of significant negative sales adjustments
caused by falling prices. This quarter`s results reflect reduced volatility in
PGM prices, which have gradually risen from the low base experienced in
October-December 2008. The full upside of the price recovery was contained by
a strengthening of the Rand.
Revenue for the quarter was $85.8 million and is inclusive of positive sales
adjustments of $8.2 million due to the flow-through of improved PGM prices
experienced during the quarter. The stability and recovery in PGM prices has
seen an end to the abnormally high sales adjustments experienced in the
December 2008 half year.
Table A: Aquarius attributable production and net profit summary by quarter
Quarter Quarter Quarter Quarter Quarter
ended Sep ended Dec ended Mar ended ended Sep
`08 `08 `09 June`09 `09
4PGE production 128,366 131,843 97,212 98,259 96,500
(attributable
ounces)
Revenue $178.1m $90.0m $66.7m $80.6m $77.6m
PGM sales ($71.9m) ($57.1m) $11.8m $12.3m $8.2m
adjustments -
realised &
Unrealised
Total revenue $106.2m $32.9m $78.5m $92.9m $85.8m
Net profit/loss ($20.4m) ($76.9m) $5.5m $30.2m $17.9m
Fair value movement - - - $3.8m ($3.4m)
in derivative
liability
"One - off" costs - - - - ($3.2m)
relating to the
Ridge acquisition*
Income tax ($1.1m) $28.3m $1.0m ($12.4m) ($1.8m)
Net Profit/(Loss) ($21.5m) ($48.6m) $6.5m $17.8m $9.5m
after tax & outside
equity Interests
*Pursuant to IFRS business combination standard
Production for the quarter was a credible 96,500 PGM ounces (including 7,235
PGM ounces from the Blue Ridge mine that was acquired from Ridge Mining in
July 2009), given the disruption to operations caused by the unprotected
industrial action of the employees of the underground mining contractor,
Murray and Roberts Cementation (MRC) at Kroondal and Marikana. Approximately
16,000 PGM ounces of attributable production were lost due to the strike, with
some impact extending into the initial part of the next quarter. Management
measures, such as working additional shifts, are being implemented to recover
the production lost during the course of the financial year.
Consequently, reductions in unit costs did not materialise at Kroondal and
Marikana. Although management plans were implemented to mitigate the impact
of the industrial action, unit costs at both operations rose. The quarter also
carried the full electricity tariff increase effected in June 2009, as well as
higher seasonal tariffs, resulting in a 44% increase in electricity cost
(despite lower consumption due to industrial action).
Unit costs at Mimosa were relatively stable.
Operating costs at Blue Ridge will continue to be capitalised during the ramp-
up phase.
As a result of reduced revenue and higher unit costs at the South African
operations, margins declined for the quarter, returning a gross profit of $9.4
million.
Looking to the next quarter, production costs will continue to be under
pressure with increased electricity costs, wage increases implemented and a
strong Rand. A return to normalised production levels should, however, result
in a decrease in unit costs.
Administration and other costs of $6 million included the $3.2 million "once
off" costs relating to the acquisition of Ridge Mining, reported in accordance
with IFRS business combination standard.
Finance charges of $5.1 million for the quarter were lower as a result of the
repayment of the bridge facility of $177 million in May 2009. Included in
finance charges was interest expensed of $2.9 million on group debt, non-cash
accretion of the convertible note $0.8 million and unwinding of the
rehabilitation provision of $1.3 million. Depreciation and amortisation were
in line at $9.0 million.
Fair value movement in embedded derivative component of convertible bond
As the convertible bond was issued in Rand and the functional currency of
Aquarius is US Dollars, the convertible note represents a financial exposure.
The embedded derivative portion of this convertible note is required to be
measured at fair value with any movement recognised through the income
statement. The derivative was fair valued at 30 September resulting in an
income statement charge of $3.4million.
Cash
Group cash balances increased by $41 million to $194.7 million partly due to
the exercise of the Ridge Mining warrants and options by Zijin ($7.8 million)
and Imbani ($28 million) which were subsequently swapped for shares in
Aquarius.
Net operating cash flow for the quarter comprised $84.7 million from sales,
$58.2 million paid to suppliers and net finance expenses of $1.6 million.
Material cash flow items (other than mine operations) that affected cash
balances during the quarter included capital expenditure of $10.5 million.
Group cash at 30 September 2009 was held as follows:
AQP $141 million
AQPSA $31 million
ACS(SA) $9 million
Mimosa $4 million
Ridge Mining $10 million
Total $195 million
Aquarius Platinum Limited
Consolidated Income Statement
Quarter ended 30 September 2009
$`000
Note: Quarter Ended Financial
Year Ended
30/09/09* 30/09/08* 30/06/09
Aquarius PGM 96,500** 128,366 455,675
Production
(attributable
ounces)
Revenue (i) 85,884 106,243 310,556
Cost of sales (ii) (76,443) (104,870) (334,327)
(including D&A)
Gross profit/(loss) 9,441 1,373 (23,771)
Other income 87 74 1,815
Admin & other (iii) (6,034) (2,327) (9,919)
operating costs
Other FX movements (iv) 16,410 (23,427) (20,328)
Fair value movement (v) (3,415) - 3,829
in derivative
liability
Finance costs (vi) (5,126) (11,598) (35,968)
Impairment (losses) - - (13,050)
Profit/(loss) before 11,363 (35,905) (97,392)
tax
Income tax (1,815) (1,129) 15,808
benefit/(expense)
Profit/(loss) after 9,548 (37,034) (81,584)
tax
Minority interest (vii) - 15,475 (35,842)
Net profit/(loss) 9,548 (21,559) (45,742)
EPS (basic - cents 2.1 (8.2) (13.30)
per share)
*Unaudited
** PGM production of 96,500 includes 7,325 PGM ounces from Blue Ridge -
operating costs and revenue currently capitalised.
Notes on the September 2009 Consolidated Income Statement
(i) Revenue for the quarter was lower as a function of reduced production in
South Africa and a lower Rand basket price given the 8% appreciation of
the
Rand against the US Dollar
(ii) Cost of sales per PGM ounce increased as a result of higher electricity
charges and reduced production in South Africa due to unprotected
industrial action during the quarter
(iii) Administration and other costs of $6 million included $3.2 million "once
off" costs relating to the acquisition of Ridge Mining, pursuant to IFRS
business combination standard
(iv) Gain largely attributable to positive revaluation adjustments on
intergroup
debt
(v) Relates to the movement in the fair value of the derivative component of
R650 million ($78 million) convertible bond issued during May 2009
(vi) Finance costs include group debt ($2.9 million), non-cash interest
accretion on the convertible note ($0.8 million) and unwinding of the
rehabilitation provision ($1.3 million).
(vii) Minority interests no longer apply following conclusion of the final
phase
of the BEE flip in October 2008.
Aquarius Platinum Limited
Consolidated Cash flow Statement
Quarter ended 30 September 2009
$`000
Quarter Ended Financia
l Year
Ended
Note: 30/09/0 30/09/08 30/06/09
9* *
Net operating cash (i) 28,124 90,637 13,219
inflow
Net investing cash (ii) (44,219 (11,499) (74,593)
outflow )
Net financing cash (iii) 48,729 (26,205) 38,754
inflow/(outflow)
Net increase (decrease) 32,634 52,933 (22,620)
in cash held
Opening cash balance 153,600 170,956 170,956
Exchange rate movement 8,421 (10,064) 5,264
on cash
Closing cash balance 194,655 213,825 153,600
* Unaudited
Notes on the September 2009 Consolidated Cash flow Statement
(i) Net operating cash flow for the September quarter includes $84.7 million
(ii) inflow from sales, $58.2 million paid to suppliers and net finance income
of $1.6 million.
(iii) Includes development and plant and equipment expenditure of $10.5
million.
Includes exercise of Ridge options $39.7 million and net movement in
borrowings $6.0 million
Aquarius Platinum Limited
Consolidated Balance Sheet
At 30 September 2009
$`000
Quarter Financial
Ended Year
30 Sept Ended
2009 30 June
2009
Note: $`000 $`000
Assets
Cash assets 194,655 153,600
Current receivables (i) 127,753 119,866
Other current assets (ii) 52,539 43,652
Property, plant and equipment (iii) 305,952 230,057
Mining assets (iv) 376,440 270,374
Intangibles (v) 77,737 74,167
Other non-current assets (vi) 27,585 25,287
Total assets 1,162,661 917,003
Liabilities
Current liabilities (vii) 81,233 81,514
Non-current payables (viii) 6,467 1,555
Non-current interest-bearing (ix) 120,385 70,034
liabilities
Other non-current liabilities (x) 175,847 155,730
Total liabilities 383,932 308,833
Net assets 778,729 608,170
Equity
Parent entity interest 778,729 608,170
Total equity 778,729 608,170
* Unaudited
Notes on the September 2009 Consolidated Balance Sheet
(i) Reflects debtors receivable on PGM concentrate sales
(ii) Reflects PGM concentrate inventory, reef stockpiles and consumables
stores
(iii) Represents plant and equipment within the Group
(iv) Mining assets reflects Kroondal, Marikana, Mimosa, Everest and Ridge
mining (mining rights)
(v) Platinum Mile Resources acquisition
(vi) Includes recoverable portion of rehabilitation provision from P&SA
partner
($12.2 million), investment in rehabilitation trust ($12.6 million) and
investments in unlisted entities ($2.8 million)
(vii) Includes trade creditor and other payables.
(viii) Includes rehabilitation obligations on P&SA1 and P&SA2 structures.
(ix) Includes convertible note liability ($73.5 million), derivative liability
($9.5 million), Ridge group loans ($35.5 million) and other loans (1.6
million).
(x) Reflects deferred tax liabilities $106.6 million, provision for closure
costs $69.3 million.
AQUARIUS PLATINUM (SOUTH AFRICA) (PTY) LTD (Aquarius Platinum 100%)
P&SA 1 at Kroondal
Safety
The 12-month rolling average disabling injury incidence rate (DIIR) for the
quarter improved to 0.66 per 200,000 hours worked from 0.74 in the previous
quarter. Only five lost-time injuries were reported during the quarter, a 50%
improvement in the number of lost-time injuries compared with the previous
quarter. Kroondal Mine was recognised for achieving one million fatality free
shifts on 21 August 2009.
Mining
* Operations at Kroondal were significantly impacted by unprotected industrial
action by employees of the underground mining contractor, MRC, which
resulted
in the eventual dismissal of the workforce.
* The underground mining contract at the K5 shaft was successfully transferred
from Redpath Mining to MRC to consolidate operations under one contractor,
albeit with some production lost during the process
* Production tonnes for the quarter decreased by 16% to 1,365,911 tonnes
* Head grade improved marginally from 2.58 g/t to 2.63 g/t
Processing
* Tonnes processed decreased by 18 % to 1,323,505 tonnes
* Recoveries increased by 0.2% to 79.1%
* PGM production decreased by 16 % to 88,808 PGM ounces
Revenue
The Kroondal Dollar-denominated basket price improved by 6% to an average of
$972 per PGM ounce. The improvement was, however, offset by Rand strength,
and resulted in the Kroondal Rand-denominated basket weakening by 2.7%
compared with the previous quarter. Pricing stability contributed to lower PGM
sales adjustments, which reduced from R113 million in Q4 (2009) to R58 million
in Q1 (2010).
The decrease in production, the lower Rand basket price and decreased PGM
sales, negatively affected revenue for the quarter, which decreased by 23% to
R638 million (R319 million attributable to Aquarius).
Operations
The underground mining contract at the K5 shaft was successfully transferred
from Redpath to MRC during the quarter. The contract transfer was motivated by
operational and equipment synergies that could be realised, benefiting the K5
shaft in terms of production and cost improvements. Although the transfer
process proceeded according to plan, it did result in lower production during
the handover.
Unprotected industrial action by employees of the underground mining
contractor, MRC on three of the Kroondal shafts during September 2009, had a
significant impact on production. This unprotected industrial action, which
eventually resulted in a mass dismissal of the workforce, took place despite a
wage settlement of 10.2% having been agreed between MRC and the National Union
of Mineworkers (NUM). Disruptive and intimidatory action by former employees
prevented effective recruitment from the dismissed employee base, requiring a
greater component of those recruited to be new employees, thus delaying the
engagement, training and deployment plan.
The above factors resulted in on-reef stoping square metres mined decreasing
by 24% and primary development decreasing by 8% during the quarter. Primary
development for the quarter was 1,683 metres. Sweepings increased by 137% from
the previous quarter and tonness produced decreased by 16% to 1,365,911 tonnes
for the quarter (ROM tonnage excludes 34,797 tonnes transferred to Marikana).
Planned maintenance was performed on the K1 ball mill girth gear at the
beginning of the quarter, while down-time as a result of the strike was used
to undertake the relining of the primary and secondary mills of the K2
concentrator. Processed tonnes decreased by 18% to 1,323,505 tonnes with
stockpiles at the end of the quarter totalling 57,116 tonnes.
Grade control initiatives increased the head grade by 2%, resulting in an
average grade of 2.63g/t for the quarter despite a 7% decrease in the in situ
grade. This was primarily due to a reduction in footwall waste and waste off-
reef mining being packed underground. Recoveries also increased marginally to
79.1% due to improvement initiatives in operational stability and control.
PGM production decreased by 16% to 88,808 PGM ounces (44,404 ounces
attributable to Aquarius).
Kroondal: Metal in concentrate produced (PGM ounces)
Quarter Pt Pd Rh Au PGMs Attributable
ended to Aquarius
Sep 2009 52,287 26,366 9,708 447 88,808 44,404
Jun 2009 62,535 31,158 11,492 535 105,72 52,860
0
Mar 2009 62,281 30,728 11,411 500 104,92 52,460
0
Dec 2008 65,075 32,161 11,941 530 109,70 54,854
7
Operating cash costs
Extensive management plans were implemented to mitigate the impact of the
industrial action but cash costs per tonne increased by 16% to R392 and costs
per PGM ounce increased by 13% to R5,847 as a result of the decrease in
production. The quarter also carried the full electricity tariff increase of
June 2009 as well as higher seasonal tariffs, resulting in a 44% increase in
electricity cost despite lower consumption. Costs associated with the
relining activities were also expensed during the quarter.
As a result of reduced revenue and higher unit costs, Kroondal Mine achieved a
lower cash margin for the period of 19% compared with 34% in the previous
quarter.
Kroondal: Operating cash costs per ounce
4E 6E 6E net of by-
(Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) products
(Ni&Cu)
Kroondal 5,847 4,783 4,635
Capital expenditure
Capital expenditure for the quarter was R30 million, all stay-in-business
capital. Major items included the establishment of underground
infrastructure. This is a 57% reduction against the previous quarter,
primarily due to cash curtailment during the strike period. The capital
expenditure required to maintain production levels has been spent, however,
and is up to date.
Firstplats transaction
The Firstplats transaction was concluded during the quarter, resulting in a
pro-rata addition of 0.46 million ounces of reserves into the P&SA1, thereby
extending the life-of-mine of Kroondal in excess of one year. The additional
reserves are down-dip of central shaft and will be mined from existing shaft
infrastructure requiring only stay-in-business capital expenditure and
enabling cost efficient ore extraction (refer to the Corporate matter section
for a more detailed description of the transaction).
P&SA2 at Marikana
SafetyThe 12-month rolling average DIIR for the quarter deteriorated to 1.26
per 200,000 hours worked from 0.91 in the previous quarter. Five lost-time
injuries were reported during the quarter. This deterioration is cause for
concern and management measures have been implemented to reverse this trend.
Mining
* Underground operations at Marikana were significantly affected by
unprotected industrial action by MRC employees which resulted in the
eventual dismissal of the workforce
* Open-pit production and costs were affected by the pothole intersection
reported in the previous quarter
* Production tonnes increased by 0.15% to 551,944 tonnes, comprising 335,988
tonnes from underground and 216,006 tonnes from open-pit operations
* Head grade decreased by 5% to 2.60 g/t due to the increase in underground
tonnes
Processing
* Tonnes processed decreased by 10% to 557,668 tonnes
* Recoveries decreased by 3% to 67%
* PGM production decreased by 17% to 31,222 ounces (15,611 ounces attributable
to Aquarius)
Revenue
The Dollar-denominated Marikana basket price averaged $999 per PGM ounce, 7.7%
higher than the previous quarter, while the Rand-Dollar exchange rate averaged
R7.89 for the quarter. This resulted in the Marikana Rand-denominated basket
price decreasing by 1.4% against the previous quarter. Pricing stability also
contributed to lower PGM sales adjustments, which reduced from R50.1 million
in Q4 (2009) to R26.7 million in Q1 (2010).
Quarterly revenue at Marikana decreased by 26% to R229 million (R115 million
attributable to Aquarius) on the basis of lower production and a weaker basket
price.
Operations
The quarter was significantly affected by the unprotected industrial action of
the employees of the underground mining contractor, MRC on both of the
Marikana shafts during September 2009. This unprotected industrial action
took place despite a wage settlement of 10.2% having been agreed between MRC
and the NUM, which eventually resulted in a mass dismissal of the workforce.
As at Kroondal, disruptive and intimidatory action by former employees
prevented effective recruitment from the dismissed employee base, requiring a
greater component of those recruited to be new employees which delayed the
engagement, training and deployment plan.
At both the No.1 and No.4 shafts, the focus remained on primary development
and redevelopment to negate the effect of a high incidence of potholing and
geological features. Primary development reduced by 10% from the previous
quarter, and re-development was 20% lower as a result of the industrial
action. The amount of mining currently done adjacent to potholes has
negatively influenced the in-situ grade, leading to a much lower grade being
mined. This was exacerbated by the focus on development after the industrial
action, resulting in lower grades due to higher than normal waste
contribution. The grade is expected to improve as stoping tonnes increase and
panels move away from pothole areas.
Underground production increased by 6% from the previous quarter to 335,988
tonnes (tonnage includes 34,797 tonnes transferred from Kroondal).
Open-pit mining was affected by a significant pothole intersection in the ROM
pit as identified during the previous quarter. Infill drilling was completed,
confirming a reserve loss of approximately 170,000 tonnes due to thin reef in
the pothole area. Establishment of the West-West pit was expedited in order
to mitigate the production loss, with a 41% increase in the volume of waste
bulk cubic metres moved during the period. The lower reef yield from the ROM
pit and the establishment of the West-West pit resulted in the stripping ratio
increasing to 28:1 during the quarter. This influenced the open-pit production
cost, which increased by 19%, despite open-pit production decreasing by 8% to
216,006 tonnes on a quarter-on-quarter basis. The West-West Pit yielded
predominantly shallow material and the production emphasis is to access lower
mining levels for "fresh" reef which will become available in the next
quarter.
Processed tonnes for the quarter were much lower due to ore availability
resulting in oxide material being processed to maintain production. Volumes
processed totalled 557,669 tonnes, 10% down on the previous quarter.
The head grade decreased by 5% to 2.60g/t due to the change in mining mix and
lower-than-expected grade from underground as a result of geological
anomalies.
Recoveries were also 3% lower at 67% compared with the previous quarter,
primarily due to the oxide material and shallow material arising from the West-
West pit.
PGM production for the quarter decreased by 17% to 31,222 PGM ounces (15,611
PGM ounces attributable to Aquarius).
Marikana: Metal in concentrate produced (PGM ounces)
Quarter Pt Pd Rh Au PGMs Attribu
ended table
to
Aquariu
s
Sep 2009 19,515 8,407 3,100 200 31,222 15,611
Jun 2009 23,155 10,368 4,010 220 37,753 18,877
Mar 2009 23,673 10,908 4,034 236 38,851 19,426
Dec 2008 26,193 11,733 4,256 268 42,450 21,226
Operating cash costs
Cash costs per tonne increased by 12% to R442, while costs per PGM ounce
increased by 22% to R7,899, a result of the production constraints of both the
open pit and underground operations. The changes made to the open pit profile
to negate the issues relating to ground conditions repeatedly filtered through
to the open pit cost profile. The industrial action in September and
subsequent loss in production from underground operations had a negative
impact on unit costs. With the low output from the mining operations, the
process plant could not be optimized, which in turn had a negative impact on
the process plant and other fixed costs.
Gross revenue decreased by 26% to R229 million as a result of lower production
and the strengthening of the Rand-Dollar exchange rate.
As a result, Marikana Mine shows a negative cash margin for the period of 8%.
Marikana: Operating cash costs per ounce
4E 6E 6E net of by-
(Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) products
(Ni&Cu)
Marikana 7,899 6,524 6,317
Capital expenditure
Stay-in-business capital expenditure totalled R15.4 million, a reduction of
19%. This consisted primarily of underground infrastructure establishment. All
critical capital expenditure is up to date.
Firstplats transaction
The Firstplats transaction was concluded during the quarter, resulting in an
addition of 0.54 million ounces of reserves into the P&SA 2, thereby extending
Marikana`s life-of-mine in excess of two years. The additional reserves are
contiguous to 1 and 4 shafts and will preclude the need for longer term
vertical shafts, thereby very significantly reducing the life-of-mine capital
requirement. (Refer to the Corporate matter section for a more detailed
description of the transaction)
Contractor dispute with Moolman Mining
During March 2009, AQPSA and Moolman Mining agreed that the dispute relating
to AQPSA resiling from the contract originally concluded between AQPSA and
Moolman Mining on the basis of misrepresentation by Moolman Mining and Moolman
Mining`s conditional counter claims, would be referred to trial and would not
be subject to arbitration. As a result, the original arbitration instituted by
Moolman Mining against AQPSA relating to the application of the rise and fall
formula in that contract, will be indefinitely suspended pending the outcome
of the trial proceedings. This agreement was made an order of court with the
consent of both parties and provisional dates in September 2010 have been
allocated for the trial.
Everest Mine
The DMR has removed the original suspension instruction (section 54 notice)
which was issued after the suspension of operations at Everest, allowing
normal mining operations to resume.
Phase 1 of the re-establishment project commenced in June 2009 with the
excavation of the North box cut, storm water earthworks, the installation of
temporary services and an access road. The North box cut excavation was
completed at the end of the quarter. The mining team is in the process of
supporting the high wall following which the development of the three
declines will begin. The South box cut will be excavated during quarter 2 with
the single end development planned to begin towards the end of the quarter.
Phase 1 was specifically scoped to be completed in the period before the start
of the rainy season and the decline shafts are planned to hole with the
current mine in May 2010.
Compilation of the detail engineering designs associated with Phase 2 is in
process, and preliminary capital budget estimates (CBE) are being finalised.
The capital requirement for the entire project (including Phase 1) will be
approximately R259 million. The project includes the establishment of
permanent underground services, the reclamation of infrastructure, the
equipping of declines and strike sections and the re-establishment of stoping
sections. Permanent surface infrastructure, such as mine services, roads and
overland conveyers, will also be completed during this phase. This
preparation, coupled with early production from the open pit operation, will
enable ramp-up of underground production, with reef stockpiling prior to
resumption of milling operations. Completion of Phase 2 and production ramp-up
to process plant resumption will require approximately 10 months.
Project execution is proceeding as anticipated to place Everest in a state of
readiness to resume operations. The decision to resume operations will,
however, be made in the context of prevailing metals prices and market
conditions at the time.
MIMOSA INVESTMENTS (Aquarius Platinum 50%)
Mimosa Platinum Mine
Safety
The 12-month rolling average DIIR for the quarter remained stable at 0.10 from
the previous quarter. Two lost-time injuries were recorded during the quarter.
Mining
Underground production increased by 3% to 539,475 tonnes
Head grade decreased slightly by 0.28% to 3.59g/t
The surface stockpile decreased to a total 196,075 tonnes at the end of the
quarter, equivalent to almost one-month mill feed
Processing
Concentrator plant recoveries increased to 76.3% from 75.3%
Total mine production increased by 8% to 50,828 PGM ounces (Aquarius share:
25,414 PGM ounces)
Revenue
The average achieved PGM basket price for the quarter increased by 7% to $805
per PGM ounce. The average achieved nickel price over the quarter increased
by 42% to $6.86 per pound from $4.84 per pound the previous quarter. Revenue
for the quarter increased to $44.2 million, with base metals accounting for
approximately 25% of revenue. The cash margin increased to 36% from 28% in
the previous quarter, mainly due to the firming of metal prices.
Operations
During the quarter mining operations hoisted 539,475 tonnes compared to
525,682 tonnes in the previous quarter. Tonnes milled during the quarter
totalled 576,616 tonnes, with 37,141 tonnes being taken from the stockpile,
which totalled 196,075 tonnes at the quarter end.
The average plant grade decreased marginally to 3.59g/t, compared to 3.60g/t
in the previous quarter.
Tonnes processed totalled 576,616, a 7% increase compared to the previous
quarter. Recoveries for the quarter increased slightly to 76.3% from 75.3%.
PGM production during the quarter increased by 8% to 50,828 ounces (25,414
ounces attributable to Aquarius).
Mimosa: PGMs in concentrate produced (ounces)
Quarter Pt Pd Rh Au PGMs Attributable
ended to Aquarius
Sep 2009 25,691 19,569 2,096 3,473 50,829 25,414
Jun 2009 23,910 17,979 1,851 3,135 46,875 23,437
Mar 2009 23,590 17,905 1,797 2,986 46,278 23,139
Dec 2008 21,903 16,678 1,753 2,898 43,232 21,616
Mimosa: Base metals in concentrate produced (tons)
Mine production Attributable to Aquarius
Quarter Ni Cu Co Ni Cu Co
ended
Sep 2009 705 572 19 352.5 286.0 9.5
Jun 2009 667 534 18 333.5 267.0 9
Mar 2009 659 545 18 329.5 272.5 9
Dec 2008 615 497 18 307.5 248.5 9
Operating cash costs
Cash costs per ROM tonne remained static at $49, while costs per PGM ounce
declined slightly to $561.
The gross cash margin increased to 36% from 28% in the previous quarter mainly
due to the firming of PGM basket prices. Net of by-products, cash costs were
$318 per PGM ounce, compared with $379 per PGM ounce in the previous quarter,
primarily due to a rise in the prices of base metals.
Mimosa operating cash costs per ounce
4E(Pt+Pd+Rh+Au) 6E(Pt+Pd+Rh+Ir+Ru+Au) 4E net of by-
products
(Ni, Cu & Co)
Mimosa 562 534 317
Update on foreign currency regime in Zimbabwe
Since the introduction of the use of multi-currencies in the economy in
January 2009, there have not been any changes in the foreign currency
environment. The US Dollar and the South African Rand remain the most widely
used currencies in the economy. Any changes to the foreign currency
environment that may come will be announced in the 2010 Fiscal Budget expected
during the second quarter.
AQUARIUS PLATINUM (SA) CORPORATE SERVICES (PTY) LTD
Chromite Tailings Retreatment Plant (CTRP) (Aquarius Platinum 50%)
Safety
The DIIR remained at 0.
Processing
* Material processed decreased marginally to 68,894 tonnes
* Grade remained stable at 2.20g/t
* Recoveries increased by 14% to 36%
* Production increased to 1,740 PGM ounces (870 PGM ounces attributable to
Aquarius)
Revenue
The achieved mine basket price for the quarter averaged $1,074 per PGM ounce,
8% higher than the previous quarter. The achieved mine Rand-Dollar exchange
rate averaged R7.89/$ for the quarter.
Operations
Material processed decreased to 68,894 tonnes. This was due to the
repositioning of the reclamation facilities on the chrome dump source.
The head grade remained stable at 2.20g/t.
Recoveries increased by 16% to 36%. This resulted in production being up 3% to
1,740 PGM ounces (Aquarius attributable: 870 PGM ounces).
CTRP: Metal in concentrate produced (PGM ounces)
Quarter Pt Pd Rh Au PGMs
ended (4E)
Sep 2009 1,048 381 308 3 1,740
Jun 2009 1,024 369 292 4 1,689
Mar 2009 966 351 267 3 1,587
Dec 2008 1,078 404 297 4 1,783
Operating costs
Cash costs increased by 26% to R3,380 per PGM ounce. This is mainly
attributable to maintenance on the Deswik mill. The cash margin for the period
was 42%, a decrease from 49% in the previous quarter.
CTRP Operating cash costs per ounce
4E(Pt+Pd+Rh+Au) 6E(Pt+Pd+Rh+Ir+Ru+Au) 4E net of by-
products
(Ni, Cu& Co)
CTRP 3,380 2,293 2,194
Platinum Mile (Aquarius Platinum 50%)
Safety
The DIIR was zero for the quarter.
Processing
* Tailings processed totalled 1,977 million tonnes which was consistent with
the 2,101 million tonnes processed in the previous quarter
* PGM grade was 0.69g/t, an increase of 17% on the previous quarter
* Milling expansion yielding anticipated results
* Production was 5,932 PGM ounces (2,966 PGM ounces attributable to Aquarius)
Revenue
The achieved mine basket price for the quarter averaged $1,004 per PGM ounce,
8% higher than the previous quarter, and together with improved production
results, helped to increase revenue by 33%. The achieved mine Rand-Dollar
exchange rate averaged R7.78/$ for the quarter. Quarterly revenue increased by
33% to R40 million (Aquarius attributable: R20 million).
Operations
Production levels increased by 32% during the quarter. The completion of the
milling expansion is now yielding the anticipated results. Full monthly
production rates were achieved during September 2009.
During the quarter the feed head grade increased to 0.69g/t compared to
0.59g/t the previous quarter.
Recoveries increased to 14% compared to 11% in the previous quarter. As a
result, production increased 32% to 5,932 PGM ounces (Aquarius attributable:
2,966 ounces). Target production at Platinum Mile remains 35,000 ounces per
annum. A table of monthly production statistics indicating the improved
recoveries follows, illustrating the achievement of the milling expansion
benefits.
Platinum Mile: Monthly tonnes and recoveries
Jul 09 Aug 09 Sep 09
Tons 650,688 706,262 620,017
Grade 0.73 0.66 0.69
Production 1,116 1,885 2,930
ounces
Recovery % 7% 13% 21%
Platinum Mile: Metal in concentrate produced (PGM ounces)
Quarter Pt Pd Rh Au PGMs
ended (4E)
Sep 2009 3,440 1,839 534 119 5,932
Jun 2009 2,598 1,388 403 90 4,479
Mar 2009 1,617 864 251 56 2,788
Dec 2008 1,799 962 279 63 3,103
Operating costs
Cash costs increased 13% to R3,157 per PGM ounce, largely as a result of the
increase in power costs from Eskom.
Platinum Mile operating cash costs per ounce
4E(Pt+Pd+Rh+Au) 6E(Pt+Pd+Rh+Ir+Ru+Au) 4E net of by-
products
(Ni, Cu& Co)
Platinum 3,157 Nm Nm
Mile
Capital expenditure
Capital expenditure for the quarter was R1.5 million. The expansion and fine
milling project is now complete and within the budget of R59 million.
Blue Ridge Platinum
Safety
The 12-month rolling average DIIR for the quarter deteriorated to 0.47 from
0.32 in the previous quarter. Five lost-time injuries were reported during
the quarter.
Mining
Underground operations produced 191,968 tonnes during the period
Head grade averaged 2.58g/t
Stockpiles at the end of the quarter totalled 279,832 tonnes
Processing
Tonnes processed for the quarter was 269,008 tons
Recoveries of 76.6% were achieved at the end of the period
14,469 PGM ounces were produced
Revenue
The achieved mine basket price for the quarter averaged $970 per PGM ounce
with a Rand/Dollar exchange rate of R7.90/$ for the quarter. Consequently
revenue was R102 million for the quarter (Aquarius attributable: R51 million).
All revenue is off-set (capitalised) against the project cost, therefore no
revenue is recognised in the income statement.
Operations
Development totalled 2,591 metres for the period with the decline and level
development performing to target. Equipping of the main conveyor decline is on
track with installation of all services completed on schedule.
Underground mining progressed well during the quarter with 191,968 tonnes
being produced. Underground mining is ramping up as planned and no significant
geological or mining problems have been experienced. Stoping teams are being
recruited and trained as stoping panels are being made available by the
development teams.
The restructuring of the operation to reduce the fixed cost base was finalised
and the retrenchment of excess services employees was completed at the end of
the quarter.
The plant commissioning experienced interruptions during the commissioning
phase and 269,008 tonnes were processed during the quarter. These
interruptions are normal during the commissioning phase, and process plant
availability and stability is expected to improve. A steady ramp-up in tonnage
throughput is anticipated in the next quarter. Concentrator throughput in the
quarter was supported by stockpile consumption as planned. Stockpiles at the
end of the quarter were 279,832 tons, consisting predominantly of previously
mined development material.
The head grade averaged 2.58g/t for the quarter, influenced by the consumption
of lower-grade development stockpile material.
PGM production was 14,469 PGM ounces (Aquarius attributable: 7,235 ounces).
Blue Ridge: Metal in concentrate produced (PGM ounces)
Quarter Pt Pd Rh Au PGMs Attribut
ended (4E) able to
Aquarius
Sep 2009 8,59 4,38 1,34 141 14,469 7,235
8 3 7
Jun 2009 - - - - - -
Mar 2009 - - - - - -
Dec 2008 - - - - - -
Operating cash costs
Operating costs will continue to be capitalised during the ramp-up phase.
Gross revenue increased by 400% to R102 million, principally as a result of
the increase in ounce production.
Capital expenditure
Capital expenditure for the quarter was R27 million, mainly on the completion
of capital projects e.g. an 3MVA power line, service water dams, critical
spares for the plant and increasing infrastructure underground.
CORPORATE MATTERS
Completion of Recommended All-Share Offer for Ridge Mining plc
In July, Aquarius completed the scheme of arrangement relating to the
recommended all share acquisition of Ridge in accordance with the terms
outlined in the prospectus issued on 31 March 2009. Aquarius issued 34,087,945
common shares on the basis of 1 Aquarius share for every 2.75 Ridge shares in
issue. Ridge Mining is now 100%-owned by Aquarius Platinum Limited. More
information and a full prospectus can be found at www.aquariusplatinum.com
As part of the Ridge Mining plc (Ridge) transaction, and as disclosed in the
prospectus on 30 March 2009, Zijin Mining Group Company (Zijin) and Imbani
Platinum (Pty) Ltd (Imbani) exercised their existing holdings in Ridge for new
fully paid common shares in Aquarius. These holdings were in existence prior
to the scheme of arrangement between Ridge and its shareholders relating to
the all share acquisition by Aquarius of Ridge.
* On 27 August, Zijin exercised 7,000,000 Ridge warrants for 2,545,454
Aquarius shares. These were issued to Zijin`s wholly-owned subsidiary Gold
Mountains (H.K.) International Mining Co., Limited on the basis of 1
Aquarius share for every 2.75 Ridge shares.
* On 8 September, Imbani exercised 25,000,000 Ridge options for 9,090,909
Aquarius shares on the basis of 1 Aquarius share for every 2.75 Ridge
shares. The aggregate exercise price of these options is GBP17.5 million
(GBP0.70 per Ridge option).
During the quarter, Aquarius issued 471,849 new fully paid common shares to
former employees of Ridge, following the exercise of Ridge employee options
and the subsequent transfer of the resulting 1,297,590 Ridge shares to
Aquarius on the basis of 1 Aquarius share for every 2.75 Ridge share.
Conclusion of Firstplats transaction
The transaction to acquire the mining assets of First Platinum (Pty) Ltd and
Salene Mining (Pty) Ltd, known collectively as "FirstPlats" was concluded
during the quarter.
The FirstPlats assets have a combined reserve base of 0.54 million PGM ounces.
Aquarius will add the additional reserves and FirstPlats mining infrastructure
to the Marikana P&SA 2, with the P&SA partner contributing a pro-rata addition
of 0.46 million ounces that will be added to the Kroondal Mine, P&SA 1. In
total, the additional reserves will extend the life of mine at Marikana by in
excess of two years and Kroondal by just more than one year. The P&SA 1
reserve base contribution is contiguous to Kroondal Mine.
The FirstPlats assets are strategically important to Marikana Mine because the
ground is contiguous with current operations and provides significant
infrastructure cost savings with the ongoing development of the mine. The
total consideration to FirstPlats is 2,732,000 new shares in Aquarius Platinum
(representing 0.6% of the enlarged share capital of Aquarius) to be issued at
nominal value on fulfilment of the Conditions Precedent.
The FirstPlats assets, privately held by First Platinum and Salene Mining, are
contiguous with Aquarius` Marikana operations. The assets have a reserve base
of 0.55 million ounces from 5.22 million tonnes with an average grade of 3.28
g/t PGM. The acquisition of the FirstPlats assets includes both the FirstPlats
and the Salene old order mining rights, the surface rights of both companies
and the fixed and movable assets of both companies, inclusive of installed
power of 10MVA, from Eskom. There are two declines bordering the Marikana
mine, which have been developed since 2004.
The operations had a combined design capacity of 50,000 ROM tonnes per month.
The Firstplats assets have been on care and maintenance for the last three
years, principally due to the lack of critical mass and market conditions.
A total of 2,732,000 million new Aquarius shares will be issued to the
shareholders of FirstPlats on the LSE, equal to 0.59%, of the total number of
issues shares in Aquarius of 461,647,961. The shares will be issued on
completion of the conditions precedent set out below. This values the issue
at GBP8.2m (equal to approximately R100 million at an exchange rate of
GBP1:R12.30).
The addition of the FirstPlats and P&SA 1 reserves are value enhancing for a
number of reasons:
* Reserves of 540,000 4PGE ounces, further extending life of Marikana P&SA II
by in excess of two years.
* Shallow reserves that can be mined by Aquarius` established cost-effective
mechanised mining methods.
* Reserves are adjacent and contiguous with Marikana P&SA 2 mining areas.
* FirstPlats location and infrastructure permits rapid down-dip access into
Marikana P&SA 2 reserves and very significantly lowers life-of-mine capital
requirements.
* Existing old order mining rights still remain valid, enabling immediate
access to Aquarius, under the contract mining agreements, while application
for new order rights in process.
* Kroondal P&SA 1 contribution will add 460,000 4PGE ounces to Kroondal.
* Estimated to extend the Kroondal P&SA 1 mine life by just over a year.
* Property contiguous to Kroondal Central and East mining areas, enabling low
cost access and extraction from existing infrastructure.
Approval has been received from the South African Competition Commission.
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 Non-executive
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
Hugo Holl Managing Director
Helene Nolte Director: Finance
Hulme Scholes Commercial Director
Anton Lubbe Operations Director: West
Anton Wheeler Operations Director: East
Graham Ferreira General Manager: Group Admin & Company Secretary
Mkhululi Duka General Manager: Group Human Resources &
Transformation
Abraham van Ghent General Manager: Kroondal
Wessel Phumo General Manager: Marikana
Gabriel de Wet General Manager: Engineering
Augustine Simbanegavi General Manager: Everest
Anthony Joubert General Manager: Blue Ridge
ACS (SA) Management
Paul Smith Director: New Business
Mimosa Mine Management
Winston Chitando Managing Director
Herbert Mashanyare Technical Director
Peter Chimboza Resident Director
Fungai Makoni General Manager & Company Secretary
Platinum Mile Management
Richard Atkinson Managing Director
Paul Swart Financial Director
Issued Capital
At 30 September 2009, the Company had on issue: 461,647,961 shares fully paid
common shares and 1,128,125 unlisted options.
Substantial Shareholders 30 Number of Percentage
September 2009 Shares
Savannah Consortium 68,658,728 14.87
HSBC Custody Nominees 29,330,983 6.35
(Australia) Limited
Trading Information
ISIN number BMG0440M1284
ADR ISIN number US03840M2089Convertible Bond ISIN number BMG0440M1284
Broker (LSE) (Joint) Broker (ASX) Sponsor (JSE)
Liberum Capital Euroz Rand Merchant Bank
LimitedCity Point, 1 SecuritiesLevel 14, (A division of
Ropemaker Street, The Quadrant1 FirstRand Bank
London, EC2Y William Street, Limited) 1
9HTTelephone: +44 Perth WA Merchant Place Cnr
(0) 20 3100 2000 6000Telephone: +61 of Rivonia Rd and
Merrill Lynch Bank (0) 8 9488 1400 Fredman Drive,
of America2 King Sandton 2146
Edward StLondon, Johannesburg South
EC1A 1HQTelephone: Africa
+44 (0)20 7628 1000
Aquarius Platinum (South Africa) (Proprietary) Ltd
100% Owned (At 31 March 2009)
(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 AfricaPostal 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 aquariusplatinum.com or contact:
In Australia
Willi Boehm
+61 (0)8 9367 5211
In the United Kingdom and South Africa
Stuart Murray
Hugo Holl
+ 27 11 656 1140
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
BEE Black Economic Empowerment
BRPM Blue Ridge Platinum Mine
CTRP Chromite Ore Tailings Retreatment Operation. Consortium
comprising Aquarius Platinum (SA) (Corporate Services) (Pty)
Limited (ASACS), Ivanhoe Nickel and Platinum Limited and
Sylvania South Africa (Pty) Ltd (SLVSA).
DIFR Disabling injury frequency rate - being the number of lost-time
injuries
expressed as a rate per 1,000,000 man-hours worked
DIIR Disabling injury incidence rate - being the number of lost-time
injuries
expressed as a rate per 200,000 man-hours worked
DME former South African Government Department of
Minerals and Energy Affairs
DMR South African Government Department of Mineral
Resources and Energy, formerly the DME
Dollar or $ United States Dollar
EMPR Environmental Management Programme Report
Everest Everest Platinum Mine
Great Dyke ReefA 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 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
MRC Murray & Roberts Cementation, principal mining
contractor at Kroondal
nm Not measured
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
Redpath Redpath Mining South Africa Pty Ltd.
Ridge Ridge Mining plc
ROM Run of mine. The ore from mining which is fed to the
concentrator plant. This is usually a mixture of UG2 ore and
waste.
RPM Rustenburg Platinum Mines Limited
SavCon The Savannah Consortium - the principal Black Empowerment
Investor in Aquarius Platinum
TKO TKO Investment Holdings Limited
Tonne 1 Metric tonne (1,000kg)
UG2 Reef A PGE-bearing chromite layer within the Critical
Zone of the Bushveld Complex
Z$ Zimbabwe Dollar
Date: 27/10/2009 09:00:03 Produced by the JSE SENS Department.
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