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AQP
AQP
AQP - Aquarius Platinum - Second Quarter 2010 - Production Results to
31 December 2009
Aquarius Platinum Limited
(Incorporated in Bermuda)
Registration Number: EC26290
Share Code JSE: AQP
ISIN Code: BMG0440M1284
SECOND QUARTER 2010 - PRODUCTION RESULTS TO 31 DECEMBER 2009
Highlights of the quarter
- Attributable production increased by 16% to 112,359 PGM ounces
- PGM Dollar prices improved over the quarter - platinum up 13%, rhodium up 37%
and palladium up 28%
- Positive growth in operating cash margins, despite continued strength of the
Rand (relative to weak US Dollar)
- Re-establishment of Everest Mine on track - production expected in Q3 of 2010
calendar year
- Record production from Platinum Mile Resources
- Good progress on Blue Ridge ramp-up
- $300 million convertible Bond offering completed, refinancing of R650 million
bond underway
Commenting on the results, Stuart Murray, CEO of Aquarius Platinum said:
"Overall Q2 has been a very satisfactory quarter for Aquarius. Operations at
Kroondal and Marikana have stabilised following the unprotected industrial
action of the previous quarter, while the recently acquired Ridge operation has
delivered good progress under our management team. Re-establishment of the
Everest Mine is on schedule, and within budget, and we expect production to
begin by quarter one of the next financial year. Mimosa and Platinum Mile
performed well. The welcome rise in PGM prices coupled with improved operational
performance has seen cash margins rise across the group.
While the Rand Dollar exchange rate continues to undermine some of the gains
achieved from operational performance and metal pricing, the market outlook
remains positive for Aquarius in the second half of 2010. The successful placing
of the $300 million convertible bond is well timed, allowing for the settlement
of the higher cost R650 million bonds, further strengthening the balance sheet."
P&SA1 at Kroondal
- PGM production of 108,254 PGM ounces (54,127 PGM ounces attributable)
- Cash margin for the quarter of 37%
P&SA2 at Marikana
- PGM production of 37,160 PGM ounces (18,580 PGM ounces attributable)
- Cash margin for the quarter of 20%
Everest
- Re-establishment project on track
Mimosa
- PGM production 50,079 PGM ounces (25,039 PGM ounces attributable)
- Cash margin for the quarter of 45%
CTRP
- PGM production of 2,087 PGM ounces (1,044 PGM ounces attributable)
- Cash margin for the quarter of 66%
Platinum Mile
- Record PGM production of 8,539 PGM ounces (4,270 PGM ounces attributable)
- Cash margin for the quarter of 42%
Blue Ridge
- PGM production of 18,598 PGM ounces (9,299 PGM ounces attributable)
Production by mine
PGMs (4E) Quarter ended
Mar 2009 Jun 2009 Sep 2009 Dec 2009
Kroondal 104,920 105,720 88,808 108,254
Marikana 38,851 37,753 31,223 37,160
Mimosa 46,278 46,874 50,828 50,079
CTRP 1,587 1,689 1,740 2,087
Platinum Mile 2,788 4,479 5,932 8,539
Blue Ridge - - 14,469 18,598
Total 194,424* 196,515 193,001 224,717
Production by mine attributable to Aquarius
PGMs (4E) Quarter ended
Mar 2009 Jun 2009 Sep 2009 Dec 2009
Kroondal 52,460 52,860 44,404 54,127
Marikana 19,426 18,877 15,611 18,580
Mimosa 23,139 23,437 25,414 25,039
CTRP 793 845 870 1,044
Platinum Mile 1,394 2,240 2,966 4,270
Blue Ridge - - 7,235 9,299
Total 97,212 98,259 96,500 112,359
Aquarius Group attributable production (PGM ounces)
[Please refer to www.aquariusplatinum.com for graph]
Metals prices and exchange rate
US Dollar PGM prices continued to reflect an improving fundamental market
demand, with prices rising across all PGM metals. Palladium and rhodium recorded
the largest price increases, at 28% and 37% respectively.
Platinum closed the quarter up by 13% to an average of $1,390 per ounce for the
quarter. Platinum traded at a quarterly high of $1,494 per ounce on 3 December
2009, and has traded above $1,500 since 5 January 2010. Rhodium increased by 37%
to an average $2,195 per ounce for the quarter. Rhodium closed the quarter at
$2,500 per ounce and has continued to trade above this level through January
2010. Palladium closed the quarter up 28% to average $348 per ounce for the
quarter and has traded above $400 per ounce since 4 January 2010.
Significant interest in Exchange Traded Funds (ETF) continues to drive platinum
and palladium prices. The US-based platinum and palladium ETF`s commenced
trading on 8 January 2010 on the NYSE Arca exchange, the same day that the
Julius Baer Swiss-based physically-backed ETF`s also commenced trading. These
are the first physically-backed ETF`s for the metals in the US and are expected
to further increase investor interest in PGMs.
12-month individual PGM prices to December 2009
[Please refer to www.aquariusplatinum.com for graph]
Average PGM basket prices achieved at Aquarius operations: US$ per PGM ounce
(4E)
Basket prices (Quarter ended)
Mar 2009 Jun 2009 Sep 2009 Dec 2009
Kroondal 795 915 972 1,163
Marikana 799 928 999 1,173
Mimosa 626 751 805 910
CTRP 859 993 1,074 1,266
Platinum Mile 810 930 1,004 1,192
Blue Ridge - - 967 1,138
Aquarius Group 756 879 931 1,094
average
12-month PGM basket prices to December 2009 (Dollar and Rand per PGM basket
ounce)
[Please refer to www.aquariusplatinum.com for graph]
The Rand maintained its strength against the weak US Dollar during the quarter,
with the average Rand-Dollar exchange rate appreciating by 6% to R7.45. PGM
basket prices in US Dollars strengthened at all operations, with the average
group basket price being 18% higher at $1,094 per PGM ounce compared to the
previous quarter. The Rand closed the quarter at R7.39 to the US Dollar. The
average basket price at the South African operations was $1,152 per PGM ounce,
equivalent to R8,580 per PGM ounce at an average exchange rate for the period of
R7.45:$1.
12-month Rand-Dollar exchange rate to December 2009
[Please refer to www.aquariusplatinum.com for graph]
AQUARIUS PLATINUM (SOUTH AFRICA) (PTY) LTD (Aquarius Platinum 100%)
P&SA 1 at Kroondal
Safety
-The 12-month rolling average disabling injury incidence rate (DIIR per 200,000
hours) improved to 0.63 from 0.66 in the previous quarter
-During the quarter, Kroondal achieved twelve months without a fatal accident
Mining
-Production tonnes for the quarter increased by 28% to 1,746,867 tonnes
-Head grade deteriorated slightly from 2.63 g/t to 2.57 g/t
Processing
-Tonnes processed increased by 27% to 1,674,260 tonnes
-Recoveries decreased by 1% to 78%
-PGM production increased by 22% to 108,254 PGM ounces
P&SA1 at Kroondal PGM production and Rand cash costs per PGM ounce (100%)
[Please refer to www.aquariusplatinum.com for graph]
Revenue
Revenue for the quarter increased by 43% to R910 million (R455 million
attributable) due to a higher Rand basket price, improved production and
positive PGM sales adjustments. (PGM sales are accounted for in the month of
delivery to the refineries and adjusted for actual prices at the conclusion of
the three-month refining pipeline).
The Kroondal Dollar-denominated basket price improved by 20% to an average of
$1,163 per PGM ounce. The strength of the Rand (which appreciated by 6% against
the Dollar) resulted in Kroondal`s Rand-denominated basket improving by 13%
compared to the previous quarter. Pricing stability contributed to positive PGM
sales adjustments, which increased to R116 million in Q2 2010 from R58 million
in Q1 2010.
Operations
Mining operations stabilised during the quarter following the unprotected
industrial action in the previous quarter. On-reef stoping square metres mined
increased by 31% and primary development (at 2,389 metres) increased by 42%
during the quarter. Tonnes produced increased by 28% to 1,746,867 tonnes for the
quarter.
Processed tonnes increased by 27% to 1,674,260 tonnes with stockpiles at the end
of the quarter totalling 129,723 tonnes.
Off-reef mining increased from 2.5% to 5.3% of the on-reef square meters mined
due to geological structures, resulting in additional re-development and
dilution. As a result, the head grade decreased marginally resulting in an
average grade of 2.57g/t for the quarter. Recoveries also marginally decreased,
to 78% from 79% due to lower head grade and increased mill throughput.
PGM production increased by 22% to 108,254 PGM ounces (54,127 ounces
attributable).
Kroondal: Metal in concentrate produced (PGM ounces)
Quarter Pt Pd Rh Au PGMs Attributab
ended le
to
Aquarius
Dec 2009 63,772 32,153 11,808 521 108,25 54,127
4
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
Operating cash costs
Cash costs decreased by 13% to R343 per tonne, whilst costs per PGM ounce
decreased by 9% to R5,305 as a result of the increase in production.
As a result of increased revenue and lower unit costs, Kroondal`s cash margin
for the period of 37% was nearly double the 19% achieved in the previous
quarter.
Kroondal: Operating cash costs per ounce
4E 6E 6E net of by-products
(Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni&Cu)
Kroondal 5,305 4,344 4,226
Capital expenditure
Capital expenditure for the quarter was R43 million (R398 per PGM ounce). This
was all stay-in-business capital, primarily related to the establishment of
underground infrastructure. All critical capital expenditure is up to date.
P&SA2 at Marikana
Safety
-The 12-month rolling average DIIR for the quarter improved to 1.08 per 200,000
hours worked from 1.26 in the previous quarter
-Just after the close of the quarter, Marikana achieved twelve months without a
fatal accident
Mining
-Production tonnes increased by 14% to 629,391 tonnes, comprising 425,260 tonnes
from underground and 204,131 tonnes from open-pit operations
-Head grade increased by 5% to 2.73 g/t
Processing
-Tonnes processed increased by 8% to 599,532 tonnes
-Recoveries increased by 5% to 71%
-PGM production increased by 19% to 37,160 ounces (18,580 PGM ounces
attributable)
P&SA2 at Marikana PGM production and Rand cash costs per PGM ounce (100%)
[Please refer to www.aquariusplatinum.com for graph]
Revenue
Revenue at Marikana increased by 42% to R324 million (R162 million attributable)
on the basis of higher production and a stronger basket price.
The Marikana Dollar-denominated basket price averaged $1,173 per PGM ounce, 17%
higher than the previous quarter. Rand strength (which appreciated by 6% against
the Dollar) resulted in the Marikana Rand-denominated basket improving by 11%
compared to the previous quarter. Pricing stability continued to contribute to
positive PGM sales adjustments, which increased to R41.5 million in Q2 2010 from
R26.7 million in Q1 2010.
Operations
Production improved during the quarter as the operations stabilised following
the unprotected industrial action by mining contractor employees during the
previous quarter.
Underground production rose by 27% from the previous quarter to 425,260 tonnes.
The ratio of mining from underground to opencast has increased from 60% to 68%,
as the production build-up at 4 Shaft continues and the opencast mine approaches
its end of life. Development activities at 4 Shaft is yielding results, with a
commensurate increase in production. Re-commissioning of the western shaft of
the Firstplats acquisition (termed M5 shaft) commenced during the quarter, and
first production from the mining area is expected during the next quarter. The
beneficial access arising from the Firstplats acquisition has yielded
significant life of mine capital savings (precluding the use of vertical shafts)
and enabled faster mining access to the Marikana ore body adjacent to the
acquisition area.
The Pit A opencast area was mined out during the quarter. Opencast mining is now
focussed on the ROM and West-West pits. The majority of the oxide material in
the West-West pit was mined out during the quarter and the remainder of the
mining in the pit will be in un-oxidised material, which should yield higher
recoveries. Pre-stripping costs were incurred in the West-West pit during the
quarter, which will contribute to lower stripping ratios and mining cost during
the next quarter.
Processed tonnes mirrored the mining tonnes and volumes processed, and totalled
599,532 tonnes, 8% up on the previous quarter.
The head grade increased by 5% to 2.73g/t, as development activities at 4 Shaft
contributed to a reduction in off-reef mining.
Recoveries were also 5% higher at 71% as a resulting in the change in mining
mix, and the higher amount of un-oxidised material arising from the West-West
pit.
PGM production for the quarter increased by 19% to 37,160 PGM ounces (18,580 PGM
ounces attributable).
Marikana: Metal in concentrate produced (PGM ounces)
Quarter Pt Pd Rh Au PGMs Attributable to
ended Aquarius
Dec 2009 22,838 10,470 3,642 209 37,160 18,580
Sep 2009 19,515 8,407 3,100 200 31,222 15,611
Jun 2009 23,155 10,368 4,010 220 37,753 18,877
Mar 2009 23,673 10,908 4,034 236 38,851 19,426
Operating cash costs
Cash costs decreased by 3% to R431 per tonne, while costs per PGM ounce
decreased by 12% to R6,954 as a result of improved output from the mining
operations.
Gross revenue increased by 42% to R324 million as a result of higher production
and the stronger basket price.
As a result, Marikana Mine showed a significantly improved cash margin of 20%
for the period.
Marikana: Operating cash costs per ounce
4E 6E 6E net of by-products
(Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni&Cu)
Marikana 6,954 5,796 5,637
Capital expenditure
Stay-in-business capital expenditure totalled R18.2 million (R492 per PGM
ounce), an increase of 18%. This consisted primarily of underground
infrastructure establishment. All critical capital expenditure is up to date.
Contractor dispute with Moolman Mining
During March 2009, AQPSA and Moolman Mining agreed that the dispute relating to
AQPSA resiling from the contract originally concluded between AQPSA and Moolman
Mining on the basis of misrepresentation by Moolman Mining and Moolman Mining`s
conditional counter claims, would be referred to trial and would not be subject
to arbitration. As a result, the original arbitration instituted by Moolman
Mining against AQPSA relating to the application of the rise and fall formula in
that contract, will be indefinitely suspended pending the outcome of the trial
proceedings. This agreement was made an order of court with the consent of both
parties and provisional dates in September 2010 have been allocated for the
trial.
Everest Mine
Safety
-The safety performance at Everest remains positive, achieving a zero 12-month
rolling DIIR
-Everest completed 342 days without a lost time injury at the end of the quarter
Operations
Phase 1 of the re-establishment project, involving the excavation of the box
cuts, storm water and earth works, the installation of temporary services and an
access road was completed by the end of the quarter. Phase 2, which includes the
establishment of permanent underground services, the reclamation of
infrastructure, equipping of declines and strike sections and there-
establishment of stoping sections, has commenced and is proceeding as planned.
Permanent surface infrastructure, such as mine services, roads and overland
conveyers will also be completed during this phase.
Decline development in the new North boxcut is now 65% complete with belt and
surface infrastructure construction progressing as per schedule. The South
boxcut was also completed during the quarter and a single decline shaft will be
developed to gain access for men and material and for ventilation to the south
stoping areas. A steel pre-fabricated tunnel was constructed from the high wall
to surface and the boxcut will be completely filled and rehabilitated (a more
cost effective and environmentally acceptable solution). The south decline
development will commence in the next quarter.
Project execution remains on track for Everest to be in a position to resume
milling operations in the latter part of the first quarter of next financial
year.
Planning for the construction of the chromite spirals plant was finalised during
the quarter, and construction activities will commence during the next quarter.
Commissioning of the spirals plant will coincide with the resumption of milling
operations at Everest.
[Please refer to www.aquariusplatinum.com for pictures]
Capital Expenditure
The total re-establishment project capital (both Phase 1 and Phase 2 as
previously announced) which will put Everest in a position to resume operations
amounts to R259 million. Project expenditure is well within budget, at a total
of R52.0 million for the quarter, bringing the project expenditure to date to R
66.0 million.
Offtake agreement signed with Glencore for chromite from Everest Plant
An offtake agreement has been signed with Glencore International AG, for the
purchase of the chromite produced by the chromite spirals plant currently under
construction at Everest. The agreement has been concluded on commercially
favourable terms and the revenue from the chromite by-product will contribute to
Everest`s margins. The chromite plant is anticipated to have annual output of
approximately 200,000 tonnes of UG2 chromite (40% Cr2O3) at steady state and
will commence production in Q3 of calendar year 2011.
MIMOSA INVESTMENTS (Aquarius Platinum - 50%)
Mimosa Platinum Mine
Safety
-The 12-month rolling average DIIR for the quarter improved to 0.14 from the
previous quarter of 0.17
-One lost-time injury was recorded during the quarter
Mining
-Underground production decreased by 2% to 528,687 tonnes
-Head grade decreased marginally to 3.58g/t
Processing
-Concentrator plant recoveries decreased to 75.5% from 76.3%
-Total mine production was maintained at to 50,079 PGM ounces (25,039 PGM ounces
attributable)
-The surface stockpile decreased to a total 146,051 tonnes at the end of the
quarter
Mimosa Mine PGM production and Dollar cash cost per PGM ounce (100%)
(Please refer to www.aquariusplatinum.com for graph)
Revenue
The average achieved PGM basket price for the quarter increased by 13% to $910
per PGM ounce, while the average achieved nickel price increased by 21% to
$8.27 per pound. Consequently, revenue for the quarter increased to $66 million,
with base metals accounting for approximately 26% of revenue. Revenue includes a
$12 million positive price adjustment.
The cash margin increased to 45% from 36% in the previous quarter, mainly due to
the firming of metal prices and positive price adjustments.
Operations
Mining operations hoisted 528,687 tonnes compared to 539,475 tonnes in the
previous quarter. Tonnes milled totalled 576,008 tonnes, with 47,321 tonnes
being taken from the stockpile. Surface stockpile totalled 146,051 tonnes at
the quarter end.
The average plant grade was consistent at 3.58g/t.
Tonnes processed totalled 576,008 tonnes, comparable to the previous quarter
whilst recoveries for decreased to 75.5% from 76.3%.
PGM production during the quarter decreased by 1.47% to 50,079 ounces (25,039
ounces attributable).
Mimosa: PGMs in concentrate produced (ounces)
Quarter Pt Pd Rh Au PGMs Attributable
ended to Aquarius
Dec 2009 25,388 19,237 2,012 3.442 50,079 25,039
Sep 2009 25,691 19,569 2,096 3,473 50,829 25,414
Jun 2009 23,910 17,979 1,851 3,135 46,875 23,437
Mar 2009 23,590 17,905 1,797 2,986 46,278 23,139
Mimosa: Base metals in concentrate produced (tons)
Mine production Attributable to Aquarius
Quarter Ni Cu Co Ni Cu Co
ended
Dec 2009 695 574 19 347.5 287 9.5
Sep 2009 705 572 19 352.5 286.0 9.5
Jun 2009 667 534 18 333.5 267.0 9
Mar 2009 659 545 18 329.5 272.5 9
Operating cash costs
Cash costs per ROM tonne increased by 2% to $50, from $49 while costs per PGM
ounce increased by 3% to $578 from $561.
The gross cash margin increased to 45% from 36% in the previous quarter mainly
due to rising PGM basket prices. Net of by-products, cash costs were $261 per
PGM ounce, compared with $316 per PGM ounce in the previous quarter, primarily
due to a rise in the prices of base metals.
Mimosa operating cash costs per ounce
4E 6E 4E net of by-products
(Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni, Cu & Co)
Mimosa 578 547 261
Update on foreign currency regime in Zimbabwe
Since the introduction of the use of multi currencies in the economy in January
2009, there have not been any changes in the foreign currency environment. The
US Dollar and the South African Rand remain the most widely used currencies in
the economy. The 2010 Fiscal Budget announced in December 2009 did not make any
changes to the foreign currency environment, but unfavourable proposals in
respect of royalties and corporate taxes were tabled. Future updates will be
given with the financial half-year results on 11 February 2010.
AQUARIUS PLATINUM (SA) CORPORATE SERVICES (PTY) LTD
Chromite Tailings Retreatment Plant (CTRP) (ACS(SA) - 50%)
Safety
-The DIIR remained at 0
Processing
-Material processed increased by 6% to 73,157 tonnes
-Grade increased by 6% to 2.34g/t
-Recoveries increased by 6% to 38%
-Production increased to 2,087 PGM ounces (1,044 PGM ounces attributable)
CTRP PGM production and Rand cash costs per PGM ounce (100%)
[Please refer to www.aquariusplatinum.com for graph]
Revenue
The achieved mine basket price for the quarter averaged $1,266 per PGM ounce,
18% higher than the previous quarter. The achieved mine Rand-Dollar exchange
rate averaged R7.45/$ for the quarter.
Operations
Material processed increased to 73,157 tonnes as planned for the quarter.
The head grade increased slightly to 2.34g/t.
Recoveries increased by 6% to 38%. This resulted in production being up 20% to
2,087 PGM ounces (1,044 PGM ounces attributable).
CTRP: Metal in concentrate produced (PGM ounces)
Quarter Pt Pd Rh Au PGMs Attributable to
ended (4E) Aquarius
Dec 2009 1,26 464 353 4 2,087 1,044
7
Sep 2009 1,04 381 308 3 1,740 870
8
Jun 2009 1,02 369 292 4 1,689 845
4
Mar 2009 966 351 267 3 1,587 794
Operating costs
Cash costs decreased by 15% to R2,875 per PGM ounce mainly as a result of the
increased production and the continued attention to efficiencies.
The cash margin for the period was 66%, an increase from 42% in the previous
quarter.
CTRP Operating cash costs per ounce
4E 6E 4E net of by-products
(Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni, Cu& Co)
CTRP 2,875 1,976 1,909
Platinum Mile Resources (ACS (SA) - 50%)
Safety
- The DIIR was zero for the quarter
Processing
- Tailings processed totalled 1975 million tonnes.
- PGM grade was 0.56 g/t, a decrease of 19% on the previous quarter
- Production was 8,539 PGM ounces (4,269 PGM ounces attributable to Aquarius)
Platinum Mile PGM production and Rand cash costs per PGM ounce (100%)
[Please refer to www.aquariusplatinum.com for graph]
Revenue
Revenue increased by 85% to R74 million (R37 million attributable to
Aquarius).The achieved mine basket price for the quarter averaged $1,192 per PGM
ounce, 19% higher than the previous quarter, and together with improved
production results, helped to increase revenue by 85%. The achieved Rand-Dollar
exchange rate averaged R7.47/$ for the quarter.
Operations
Production levels increased by 44% during the quarter following the completion
of the milling expansion, which is now yielding most of the anticipated
benefits. This improved performance was despite the head grade of the tailings
processed decreasing to 0.56g/t from 0.69g/t in the previous quarter.
Recoveries increased to 24% compared to 14% in the previous quarter. As a
result, production increased by 44% to 8,539 PGM ounces (4,269 ounces
attributable to Aquarius).
Platinum Mile: Metal in concentrate produced (PGM ounces)
Quarter Pt Pd Rh Au PGMs Attributable to
ended (4E) Aquarius
Dec 2009 4,95 2,64 769 170 8,539 4,269
3 7
Sep 2009 3,44 1,83 534 119 5,932 2,966
0 9
Jun 2009 2,59 1,38 403 90 4,479 2,239
8 8
Mar 2009 1,61 864 251 56 2,788 1,394
7
Operating costs
Cash costs decreased by 37% to R1,990 per PGM ounce, largely as a result of
improved plant operations and increased production levels.
Platinum Mile operating cash costs per ounce
4E 6E 4E net of by-products
(Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni, Cu& Co)
Platinum 1,990 1,716 Nm
Mile
Capital expenditure
No capital expenditure was incurred during the quarter.
Blue Ridge Platinum (Aquarius Platinum - 50%)
Safety
Regrettably a fatal accident occurred underground on 14 December 2009 when Mr
Khayalethu Nongqayi, a rock drill operator, was fatally injured in a fall of
ground accident. The Board and management of Aquarius Platinum extend their
condolences to Mr Khayalethu`s family and colleagues.
The 12-month rolling average DIIR for the quarter deteriorated to 1.09 from 0.47
in the previous quarter. 22 lost-time injuries were reported during the
quarter. Preventative and remedial actions are being implemented to reverse the
negative trend in the safety performance.
Mining
- Underground operations increased production by 15% to 220,726 tonnes
- Head grade deteriorated to 2.40 g/t
- Stockpiles at the end of the quarter totalled 173,688 tonnes
Processing
- Tonnes processed increased by 25% to 336,294 tonnes
- Recoveries increased by 7% to 74%
- PGM production increased by 28% to 18,598 ounces (9,299 ounces attributable to
Aquarius)
Revenue
Revenue for the quarter increased 59% to R162 million for the quarter (R81
million attributable to Aquarius) due to increased production and a higher
basket price. The achieved mine basket price for the quarter improved by 17% to
an average of $1,138 per PGM ounce. The Rand/Dollar average exchange rate for
the quarter was R7.48/$.
Operations
The focus remained on primary development to open ore reserves and available
panels to increase production to steady state. Primary development matched the
previous quarters` results by achieving 2,502 meters for the period with the
footwall decline and level development progressing to target. Equipping of the
main conveyor decline is due to conclude in the third quarter with installation
of all services completed on schedule.
Underground mining progressed well during the quarter with a 15% improvement on
the previous quarter in respect of tonnes produced and delivered to the
concentrator plant. Tonnes mined increased from 191,968 tonnes to 220,726
tonnes. Stoping teams are being recruited and trained as stoping panels are
being made available through the holing of additional raise lines.
The concentrator plant`s availability increased quarter on quarter, with
downtime mainly due to power interruptions as a result of lightning, redesign
and re-engineering of the secondary mill from a grate discharge to an overflow
discharge configuration as well as the installation of a new tailings pipeline.
Improved process stability and process control resulted in recoveries improved
from 65% to 74%. Throughput for this quarter was 336,294 tonnes.
The head grade averaged 2.40g/t for the quarter, a deterioration against the
previous quarter, mainly as a result of development dilution and the processing
of lower grade development stockpiles.
PGM production was 18,598 PGM ounces (9,299 ounces attributable to Aquarius).
Blue Ridge: Metal in concentrate produced (PGM ounces)
Quarter Pt Pd Rh Au PGMs Attributable to
ended (4E) Aquarius
Dec 2009 11,20 5,45 1,76 181 18,598 9,299
1 4 2
01111
1
Sep 2009 8,598 4,38 1,34 141 14,469 7,235
3 7
Operating cash costs
Total operating expenditure during the quarter amounted to R 159 million.
Operating expenditure continued to be capitalised during the ramp-up phase but a
modest on-mine operating cash margin (before finance costs) of R 1.7 million was
achieved. The resultant capitalisation of cost and revenue to the project
(including finance costs) amounted to R 59 million for the quarter.
CORPORATE MATTERS
Convertible bond offering
During the quarter Aquarius concluded a capital raising of $300 million of
unsubordinated, unsecured convertible bonds, due 2015.
The Bonds were issued at 100% of their principal amount and have a coupon of
4.0% per annum, payable semi-annually in arrears. The initial conversion price
is $6.773 per share, representing a premium of 22.5% to the volume weighted
average price of the Company`s common shares on the London Stock Exchange (LSE)
between launch and pricing, translated at a GBP-USD exchange rate of 1.653.
The proceeds of the Bonds will be used to fund the early redemption of all of
the Company`s existing R650 million convertible bonds in accordance with their
terms (at an aggregate redemption price of R747.5 million) and for general
corporate purposes and business opportunities, including the construction of a
chromite recovery plant at Everest.
The Bonds commenced trading on the Exchange`s LSE`s Professional Securities
Market on 21 December 2009.
Cash Balances
Group cash balances increased to $465 million during the quarter following
completion of the bond placement.
Subsequent to the end of the quarter, on 18 January 2010, $105 million of this
balance was used to retire the Company`s existing R650 million convertible bonds
in accordance with their terms (at an aggregate redemption price of R747.5
million). Whilst completion of the redemption process occurred on 18 January
2010, the accounting for the early redemption of the company`s rand convertible
notes inclusive of the borrowing costs and the 15% premium (which will impact
the income statement) will be accounted for in the half yearly accounts to 31
December 2009.
Group cash at 31 December 2009 was held as follows:
AQP $409million
AQPSA $35 million
ACS(SA) $4 million
Mimosa $5 million
Ridge $12 million
Mining
Total $465million*
*Before redemption of Rand convertible bonds
Interim Results
On 11 February 2010, Aquarius Platinum will report unaudited Interim Financial
Results for the Half Year to 31 December 2009. Further information concerning
the release and conference call hosted by CEO Stuart Murray, will be provided on
the website www.aquariusplatinum.com one week before the release.
More information on all corporate matters can be found at
www.aquariusplatinum.com
Statistical Information: Kroondal P&SA1
[Please refer to www.aquariusplatinum.com for table]
Statistical Information: Marikana P&SA2
[Please refer to www.aquariusplatinum.com for table]
Statistical Information: Mimosa
[Please refer to www.aquariusplatinum.com for table]
Statistical Information: Chrome Tailings Retreatment Plant
[Please refer to www.aquariusplatinum.com for table]
Statistical Information: Platinum Mile
[Please refer to www.aquariusplatinum.com for table]
Statistical Information: Blue Ridge
[Please refer to www.aquariusplatinum.com for table]
Aquarius Platinum 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
Tim Freshwater Non-executive
Edward Haslam Non-executive
Sir William Purves Non-executive (Senior Independent Director)
Kofi Morna Non-executive
Zwelakhe Mankazana Non-executive
Audit/Risk 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 Finance & Company Secretary
Platinum Mile Management
Richard Atkinson Managing Director
Paul Swart Financial Director
Issued Capital
At 31 December 2009, the Company had on issue: 462,491,685 shares fully paid
common shares and 1,628,240 unlisted options.
Substantial Shareholders 31 Number of Percentage
December 2009 Shares
Savannah Consortium 68,658,728 14.85
HSBC Custody Nominees 39,410,836 8.52
(Australia) Limited
JP Morgan Nominees Australia 28,149,935 6.09
Limited
Trading Information
ISIN number BMG0440M1284
ADR ISIN number US03840M2089
Convertible Bond ISIN number XS0470482067
Broker (LSE) (Joint) Broker (ASX) Sponsor (JSE)
Liberum Capital Limited Euroz Securities Rand Merchant Bank (A
City Point, 1 Ropemaker Level 14, The Quadrant division of FirstRand
Street, London, EC2Y 9HT 1 William Street, Perth Bank Limited)
Telephone: +44 (0) 20 3100 WA 6000 1 Merchant Place
2000 Telephone: +61 (0) 8 Cnr of Rivonia Rd and
Bank of America Merrill 9488 1400 Fredman Drive, Sandton
Lynch 2146
2 King Edward St Johannesburg South
London, EC1A 1HQ Africa
Telephone: +44 (0)20 7628
1000
Aquarius Platinum (South Africa) (Proprietary) Ltd
100% Owned (Incorporated in the Republic of South Africa)
Registration Number 2000/000341/07
1st Floor, Building 5, Harrowdene Office Park, Western Service Road, Woodmead
2191, South Africa Postal Address: PO Box 76575, Wendywood, 2144, South Africa.
Telephone: +27 (0)11 656 1140
Facsimile: +27 (0)11 802 0990
Aquarius Platinum Corporate Services Pty Ltd
100% Owned
(Incorporated in Australia)
ACN 094 425 555
Level 4, Suite 5, South Shore Centre, 85 The Esplanade, South Perth, WA 6151,
Australia
Postal Address: PO Box 485, South Perth, WA 6151, Australia
Telephone: +61 (0)8 9367 5211
Facsimile: +61 (0)8 9367 5233
Email: info@aquariusplatinum.com
For further information please visit www.aquariusplatinum.com or contact:
In Australia
Willi Boehm
+61 (0) 8 9367 5211
In the United Kingdom and South Africa
Stuart Murray
Hugo H?ll
+ 27 (0) 11 656 1140
Glossary
A$- Australian Dollar
Aquarius- Aquarius Platinum Limited
APS- Aquarius Platinum Corporate Services Pty Ltd
AQPSA- Aquarius Platinum (South Africa) (Pty) Ltd
ACS(SA- Aquarius Platinum (SA) Corporate Services (Pty) Ltd
BEE- Black Economic Empowerment
BRPM- Blue Ridge Platinum Mine
CTRP- Chromite Ore Tailings Retreatment Operation. Consortium comprising
Aquarius Platinum (SA) (Corporate Services) (Pty) Limited (ASACS), Ivanhoe
Nickel and Platinum Limited and Sylvania South Africa (Pty) Ltd (SLVSA).
DIFR Disabling injury frequency rate - being the number of lost-time injuries
expressed as a rate per 1,000,000 man-hours worked
DIIR- Disabling injury incidence rate - being the number of lost-time injuries
expressed as a rate per 200,000 man-hours worked
DME- formerly South African Government Department of Minerals and Energy Affairs
DMR- South African Government Department of Mineral Resources and Energy,
formerly the DME
Dollar or $- United States Dollar
Everest- Everest Platinum Mine
Great Dyke Reef- A PGE bearing layer within the Great Dyke Complex in Zimbabwe
g/t- Grams per tonne, measurement unit of grade (1g/t = 1 part per million)
JORC code- Australasian code for reporting of Mineral Resources and Ore Reserves
JSE- JSE Limited
Kroondal- Kroondal Platinum Mine or P&SA1 at Kroondal
LHD- Load haul dump machine
Marikana- Marikana Platinum Mine or P&SA2 at Marikana
Mimosa- Mimosa Mining Company (Private) Limited
Nm- Not measured
PGE(s) (6E)- Platinum group elements plus gold. Five metallic elements commonly
found together which constitute the platinoids (excluding Os (osmium)). These
are Pt (platinum), Pd (palladium), Rh (rhodium), Ru (ruthenium), Ir (iridium)
plus Au (gold)
PGM(s) (4E)- Platinum group metals plus gold. Aquarius reports the PGMs as
comprising Pt+Pd+Rh plus Au (gold) with the Pt, Pd and Rh being the most
economic platinoids in the UG2 Reef
P&SA1- Pooling & Sharing Agreement between AQPSA and RPM Ltd on Kroondal
P&SA2- Pooling & Sharing Agreement between AQPSA and RPM Ltd on Marikana
R- South African Rand
Ridge- Ridge Mining plc
ROM- Run of mine. The ore from mining which is fed to the concentrator plant.
This is usually a mixture of UG2 ore and waste.
Tonne- 1 Metric tonne (1,000kg)
UG2 Reef- A PGE-bearing chromite layer within the Critical Zone of the Bushveld
Complex
Z$- Zimbabwe Dollar
Date: 28/01/2010 09:33:46 Produced by the JSE SENS Department.
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