| Thu 11 Feb 2010, 10:14 | | AQP - Aquarius Platinum Limited - 2010 Half year financial results - December |
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AQP
AQP
AQP - Aquarius Platinum Limited - 2010 Half year financial results - December
2009
Aquarius Platinum Limited
(Incorporated in Bermuda)
Registration Number: EC26290
Share Code JSE: AQP
ISIN Code: BMG0440M1284
Aquarius Platinum
2010 HALF YEAR FINANCIAL RESULTS - DECEMBER 2009
Key Points: Operational
- Attributable production for the first half of the 2010 financial year was
208,857 PGM ounces, 7% higher than the previous 6 months to June 2009,
though 20% lower compared to the 6 months to December 2008, due largely to
the temporary closure of Everest
- Group Cash costs for the first half 2009 increased by 7% compared to first
half 2008 to $682 per PGM ounce from $639 per ounce, reflecting lower
production and a stronger Rand
Key Points: Financial
- Average basket prices increased by 25% to $1,026 per PGM ounce compared to
the six months ended June 2009
- Revenues increased by 48% to $206.1 million despite lower production as a
result of higher PGM prices
- Net profit of $3.9 million (US 0.86 cents per share), impacted by a number
of one-off charges including $20.8 million relating to early redemption of
convertible notes and $7.8 million relating to a Zimbabwean deferred tax
liability recalculation due to the change in corporate tax rate
- Successfully raised $300m through a convertible bond issue, strengthening
the balance sheet
- Consolidated cash balances at period end of $464.6 million
- Interim dividend of US 2.0 cents per share declared
Key Points: Strategic
- Integration and production ramp-up at Blue Ridge progressing well
- Everest re-establishment project initiated and progressing well
- Mimosa and Platinum Mile expansions completed
Commenting on the results, Stuart Murray, CEO of Aquarius Platinum said:
"The improvement in the Dollar basket price during the first six months of the
2010 financial year has enabled Aquarius to return to profitability despite a
strong Rand and the lower production caused principally by the unprotected
industrial action at Kroondal and Marikana in the first quarter. Aquarius staff
have worked hard to successfully control costs and mitigate production loss. I
am pleased with the progress made with the ramp-up at Blue Ridge, the re-
establishment project at Everest and the outcome of the Mimosa expansion.
With the improved outlook in terms of revenue per ounce, the second half
financial results should be an improvement on the first half. The belief in
improved times ahead has enabled the company to resume the payment of
dividends."
Aquarius Half Year Group Attributable Production
(Please refer to www.aquariusplatinum.com for the graph)
Production
Total on mine PGM production for the period was 417,714 PGM ounces. This
represents a 2% increase compared to the six months ended June 2009, and an 8%
decrease (due to the temporary closure of Everest) when compared to the December
2008 period. Production attributable to Aquarius was up 7% to 208,857 PGM
ounces for the half year ended December 2009 when compared to the six months
ended June 2009, though 20% lower compared to the previous corresponding period
(pcp). This decrease was due to the temporary closure of the Everest Mine on 7
December 2008.
Production by Mine and Attributable to Aquarius
PGMs (4E) Mine Attributable to Aquarius
Half Year Half Year Half Year Half Year
ended ended ended ended
Dec 2009 Dec 2008 Dec 2009 Dec 2008
Kroondal 197,061 211,438 98,530 105,720
Marikana 68,381 81,333 34,190 40,667
Everest - 64,068 - 64,068
Mimosa 100,907 86,870 50,454 43,435
CTRP 3,827 3,548 1,913 1,774
Platinum Mile 14,471 9,088 7,236 4,544
Blue Ridge 33,067 - 16,534 -
Total 417,714 456,345 208,857 260,208
The period under review was impacted by the suspension of operations at Everest
as well as the unprotected industrial action that took place at Kroondal and
Marikana in September 2009. These factors resulted in a decrease in production
compared to the first half of the 2009 financial year. However growth is being
maintained as shown in the following graph as a result of the Mimosa expansion,
Platinum Mile expansion and the Blue Ridge acquisition; and the negative impact
shown is of a temporary nature and will not detract from the longer term AQPSA
profile.
(Please refer to www.aquariusplatinum.com for the graph)
Foreign Exchange
The Rand continued to strengthen over the 6 months to December 2009 moving from
an average of 8.79 in the period to December 2008 to a period average of 7.65.
The Rand closed the half year at R7.39 to the US Dollar.
Rand Dollar Exchange Rate
(Please refer to www.aquariusplatinum.com for the graph)
Platinum Group Metal Prices
US Dollar PGM prices continued to reflect an improving fundamental market
demand and significant interest in Exchange Traded Funds (ETF) continues to
drive platinum and palladium prices. The US-based platinum and palladium ETFs
commenced trading on 8 January 2010 on the NYSE Arca exchange, the same day
that the Julius Baer Swiss-based physically-backed ETFs also commenced trading.
These are the first physically-backed ETFs for the metals in the US and are
expected to further increase investor interest in PGMs.
With prices rising across all PGM metals, palladium and rhodium recorded the
largest price increases, at 58% and 72% respectively. Platinum closed the period
24% higher at $1,461 per ounce, rhodium 72% higher at $2,500 per ounce,
palladium 58% higher at $393 per ounce, and gold 18% higher at $1,105 per ounce.
Individual PGM Prices December 2008 - 2009 (Dollar and Rand per PGM ounce)
(Please refer to www.aquariusplatinum.com for the graph)
The Rand continued to strengthen against a weak US Dollar during the half year
but stabilised towards the end of the period. This stability, linked with
continued strength in Dollar prices reflected in strong improvement in Rand
prices towards the end of the period. South African operations averaged $1,086
per PGM ounce (equivalent to R8,309 per PGM ounce) and closed the period at
R9,136 per PGM ounce. In Zimbabwe, the average achieved basket price for the
first half of the financial year was $859 per ounce. This resulted in a group
basket price equivalent of $1,026 per PGM ounce, up 25% from the six months
ended June 2009.
PGM Basket Prices December 2008 - 2009 (Dollar and Rand per PGM ounce)
(Please refer to www.aquariusplatinum.com for the graph)
Financial results: Half Year to 31 December 2009
Aquarius showed a significant financial improvement on the previous
corresponding period, moving from a $70.1 million loss to a profit of $3.8
million (0.86 cents per share) for the half year ended 31 December 2009 (the
"Result"), a $74 million turnaround.
This improvement was evident in a $129 million increase in mine EBITDA, moving
it from a negative of $72.8 million in the pcp to a positive of $56.7 million in
the current period. The improved result was despite lower comparative production
(due to the temporary closure of the Everest mine in December 2008) and reflects
improved and less volatile PGM prices.
The Directors have declared an interim dividend of US 2 cents per share (2009:
nil) payable on 26 March 2010 to shareholders registered on 5 March 2010,
reflecting the company`s improved operational cash flow and the Directors`
increasing confidence in the improved economic environment.
The Result was heavily influenced by exceptional non mining expenditure,
primarily related to:
- the early redemption of the Rand convertible notes resulting in net costs
of $20.8 million; and
- a $7.8 million increase in Mimosa`s deferred tax liability following an
increase from 15% to 25% in Zimbabwe`s corporate tax rate.
Group Financials by Operation (attributable to Aquarius)
$ million Kroondal Marikana Everes Mimos CTRP PMR Blue Corpo Total
t a Ridge rate
PGM ounces 98,530 34,190 - 50,45 1,913 7,236 16,53 - 208,85
(4E) 4 4 7
(attributa
ble)
Revenue 101.6 36.4 55.1 2.1 7.4 3.5 206.1
Cost of
sales
On mine (71.2) (33.0) (3.4) (28.9 (1.4) (4.6) (142.5
cash costs ) )
Depreciati (9.7) (5.0) (2.7) (0.1) (2.3) (0.1) (19.9)
on &
amortisati
on
Gross 20.7 (1.6) (3.4) 23.5 0.6 0.5 3.4 43.7
profit
Other 0.4 0.4
Income
Corporate (8.2) (8.2)
admin &
other
costs
Foreign (0.6) (1.0) (0.8) 18.5 16.1
currency
gain/(loss
)
Finance (10.6 (10.6)
charges )
Early (20.8 (20.8)
redemption )
of con
note
Ridge 0.2 0.2
acquisitio
n costs
(net)
Reversal/( 0.5 - 0.5
Impairment
) of
assets
Profit/(lo 20.1 (2.6) (3.4) 23.2 0.6 0.5 (17.2 21.3
ss) before )
tax
Tax (17.4)
benefit/(e
xpense)
Profit/(lo 3.9
ss) after
tax
Net profit Half Add back costs associated Adjusted Net
year 31 Dec with: profit Half
2009 year 31 Dec
2009
Early Increase in
redemption Zimbabwe`s
of Rand corporate
convertible tax rate
notes
Revenue $206.1m - - $206.1m
Mine EBITDA $56.7m - - $56.7m
Operating ($14.6m) - - ($14.6m)
expenses
Early ($20.8 m) $20.8 m - -
redemption of
Rand
convertible
notes
Profit before $21.3m $20.8m - $42.1m
tax
Income tax ($17.4m) - $7.8 m ($9.6m)
expense
Net profit $3.9 m $20.8 m $7.8 m $32.5m
after tax
On an adjusted basis for one-offs, the net profit for the period is estimated at
$32.5 million (as outlined in the table below).
Revenue (PGM sales and interest) for the half year to December 2008 was up 48%
from $139 million in the pcp to $206 million. Measured on a PGM ounce basis,
this represents an increase from $535 per PGM ounce to $1,071 per PGM ounce.
Gross margins recovered following improved and less volatile PGM prices during
the half year.
Total cash cost of production was $142.5 million, up 10% per PGM ounce in Dollar
terms, partially influenced by Rand strength. Amortisation and depreciation were
marginally lower at $20 million from $21 million reflecting lower production.
Finance costs for the period of $10.6 million includes interest on convertible
notes and bank borrowings at Mimosa level and a non cash element of $2.7 million
relating to the net present value adjustments to the Marikana and Kroondal
rehabilitation provisions.
Income tax expense was higher due to a $7.8 million increase in Mimosa`s
deferred tax liability following an increase from 15% to 25% in Zimbabwe`s
corporate tax rate
Net operating cash generated showed a $33.5 million improvement, bringing net
operating cash inflow to a positive $17.7 million for the period despite lower
comparable production. Following the successful raising of $300 million of
unsubordinated, unsecured convertible notes Aquarius` cash balances increased
$378 million from the pcp to $465 million.
On 18 January 2010, Aquarius utilised approximately $106 million from its cash
reserves to retire the Company`s existing R650 million convertible notes in
accordance with their terms (at an aggregate redemption price of R747.5
million). Notification of redemption was given on 21 December 2009 and
completion of the redemption process occurred on 18 January 2010. The impact
arising from the notification of early redemption of the company`s rand
convertible notes inclusive of the borrowing costs and the 15% premium was
accounted for in the consolidated income statement for the period under review.
Acquisition of Ridge Mining plc
On 6 July 2009, pursuant to a Scheme of Arrangement, Aquarius acquired 100% of
the voting shares of Ridge, a company registered and headquartered in England
and publicly listed on the AIM market of the London Stock Exchange.
Ridge`s Blue Ridge Mine is in commissioning and ramp-up and will further
diversify Aquarius` portfolio, increase its resource base, and add new
production ounces and longevity to its production profile. The acquisition will
also add significant optionality with the new Sheba`s Ridge project.
The total cost of the business combination was US$112,703,640 and comprised the
issue of equity instruments - both ordinary shares and options over ordinary
shares. Aquarius issued 33,477,945 ordinary shares with a fair value of GBP
1.968 each, based on the quoted price of the shares of Aquarius on 6 July 2009.
Convertible Notes
In December 2009, 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. With
the declaration of the interim dividend the conversion price will be adjusted
and bondholders informed in due course of the revised conversion price.
Part of the proceeds of the Bonds have been 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) with the
balance for general corporate purposes and business opportunities.
The Bonds commenced trading on the Exchange`s LSE`s Professional Securities
Market on 21 December 2009.
Financials
Aquarius Platinum Limited
Consolidated Income Statement
For the Half Year ended 31 December 2009
$`000
Half Year Ended Year
Ended
Note: 31/12/09 31/12/08 30/6/09
Production
Everest mine - 64,068 64,068
All other mines 192,323 196,140 391,607
Attributable Production (PGM 192,323* 260,208 455,675
Ounces)
(before Blue Ridge production
of 16,534 ozs)
Revenue (i) 206,089 139,179 310,556
Cost of sales (including D&A) (ii) (162,380) (197,321) (334,327
)
Gross profit/(loss) 43,709 (58,142) (23,771)
Other income 510 186 1,815
Corporate Admin & other costs (iii) (8,268) (4,710) (9,919)
Finance costs (iv) (10,644) (21,590) (35,968)
Loss arising on notification (20,836) - -
of redemption of convertible
notes
Foreign exchange (v) 16,086 (36,299) (20,328)
gains/(losses)
Transaction and acquisition (vi) 246 - -
costs associated with Ridge
Mining
Fair value movement in - - 3,829
derivative
Reversal/(Impairment) of (vii) 506 (12,582) (13,050)
assets
Profit/(loss) before tax 21,309 (133,137) (97,392)
Income tax credit (expense) (viii) (17,438) 27,165 15,808
Profit/(loss) after tax 3,871 (105,972) (81,584)
Minority interest (ix) - 35,842 35,842
Net profit/(loss) 3,871 (70,130) (45,742)
Earnings per share (basic - 0.86 (25.09) (13.30)
cents)
Notes on the Consolidated Income Statement
(i) Revenue is higher compared to December 2008 despite lower PGM ounces
produced, due to improved metal prices and a less volatile price
environment.
(ii) The 11.3% increase in cost of sales on a unit cost basis reflects Rand
strength, the impact of inflation on mine cash costs, and includes
depreciation and amortisation of $19.9 million.
(iii) Relates to administration costs of the Aquarius Group inclusive of
costs associated with business development activities, legal and
financial advisory expenses.
(iv) Finance costs reflect a $7.3 million interest expense on convertible notes
and bank loan at Mimosa, pipeline finance of $0.4 million and interest
expense on the unwinding of the rehabilitation provisions of $2.7 million.
(v) Foreign exchange gains are mainly a result of gains on group loans due to
the weakening of the Dollar against the Rand.
(vi) Reflects net impact of transaction and acquisition costs associated with
the acquisition of Ridge Mining.
(vii)Reflects reversal of impairment charges for listed investments.
(vii) Income tax includes a $7.8 million increase in Mimosa`s deferred tax
liability following an increase from 15% to 25% in Zimbabwe`s corporate tax
rate.
(ix) Minority interest reflects interest previously at AQPSA level, now 100%
owned by AQP.
Aquarius Platinum Limited
Consolidated Cash Flow Statement
Half year ended 31 December 2009
$`000
Half year ended Year ended
Note: 31/12/09 31/12/08 30/06/09
Net operating cash inflow (i) 17,651 (15,880) 12,006
Net investing cash outflow (ii) (29,881) (24,444) (73,380)
Net financing cash outflow (iii) 312,872 (30,094) 38,754
Net increase in cash held 300,642 (70,418) (22,620)
Opening cash balance 153,600 170,956 170,956
Exchange rate movement on (iv) 10,334 (13,584) 5,264
cash
Closing cash balance 464,576 86,954 153,600
Notes on the Consolidated Cash Flow Statement
(i) Net operating cash flow includes a $179.3 million net inflow from sales,
$156.7 million paid to suppliers, interest income of $4.6 million, interest
expense of $4.3 million and income tax paid of $5.7 million.
(ii) Reflects development and plant and equipment expenditure of $43.5 million
less cash balances acquired as part of the Ridge acquisition.
(iii) Includes $293.9 million net proceeds from a capital raising of
unsubordinated, unsecured convertible bonds, proceeds from the issue of
shares on exercise of options and warrants, loans repaid $11 million and
$10.8 million loan to an associate company.
(iv) Reflects movement of Rand against the US dollar.
Aquarius Platinum Limited
Consolidated Balance Sheet
At 31 December 2009
$`000
Half year ended Year
ended
Note: 31/12/09 31/12/ 30/06/0
08 9
Assets
Cash assets 464,576 86,954 153,600
Current receivables (i) 165,661 71,754 119,866
Other current assets (ii) 50,255 45,017 43,652
Property, plant and (iii) 299,616 195,90 230,057
equipment 4
Mining assets (iv) 389,120 260,00 270,374
2
Other non-current assets (v) 26,685 13,029 25,287
Intangibles (vi) 76,980 49,231 74,167
Total assets 1,472,893 721,89 917,003
1
Liabilities
Current liabilities (vii) 179,525 229,63 81,514
5
Non-current payables (viii 5,532 1,986 1,555
)
Non-current interest- (ix) 254,959 1,933 70,034
bearing liabilities
Other non-current (x) 193,196 100,86 155,730
liabilities 8
Total Liabilities 633,212 334,42 308,833
2
Net assets/(liabilities) 839,681 387,46 608,170
9
Equity
Parent entity interest 839,681 387,46 608,170
9
Minority interest - - -
Total Equity 839,681 387,46 608,170
9
Notes on the 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 relate to Kroondal, Marikana, Mimosa, Everest and Blue Ridge
mine properties and mine development.
(v) Includes recoverable portion of rehabilitation provision from Anglo
Platinum ($11.9 million), investments in rehabilitation Trusts of $12.6
million and investments held for resale of $2.1 million.
(vi) Included intangibles relating to goodwill and contract value acquired on
acquisition of 50% equity interest in Platinum Mile Resources (Pty) Ltd.
(vii) Includes $106.7 million of Rand convertible notes subsequently paid
out on 18 January 2010, creditor and other payables of $71.7 million and
tax payable of $1 million.
(viii) Includes rehabilitation obligations on P&SA1 and P&SA2 structures.
(ix) Includes convertible notes of $231m, DBSA and IDC loans at Blue Ridge Pty
Ltd level of $23m, Investec loan to Platmile of $0.2m, AQPSA vehicle
leases of $0.6m and TKO loan of $0.3m.
(x) Includes deferred tax liabilities of $106.6 million, provision for closure
costs of $70.9 million.
OPERATIONS
AQUARIUS PLATINUM (SOUTH AFRICA) (PTY) LTD (Aquarius Platinum Limited - 100%)
P&SA1 at Kroondal
Safety
- No fatal accidents during the period - Kroondal achieved 12 fatality-free
months in Q2 2010
- The 12-month rolling average disabling injury incidence rate (DIIR)
improved to 0.63 from 0.77 during the half year
Mining
- Underground volumes fell by 10.6% to 3.1 million tonnes due to unprotected
industrial action
- Open pit operations ceased in the previous financial year
- Achieved head grade in the first half increased by 1.2% compared to 1H
2009, to 2.60 g/t.
Processing
- 3.0 million tonnes of ore processed in concentrator plants, 6.8% lower than
in 1H 2009
- Concentrator recoveries improved marginally to 79%
- Production decreased by 6.8% to 197,061 PGM ounces
- Strong operational response in Q2 2010 partially offset ounces lost to
unprotected strike in Q1
Revenue
The Dollar PGM basket price achieved by Kroondal for the first half was
$1,077 per PGM ounce. This was 12.7% lower than in the comparable period last
year, but 25.9% higher than in 2H 2009. The Rand also strengthened over the
period, with the Rand/Dollar exchange rate averaging R7.65/$ for the six months
as a result (1H 2009: R8.79/$). Revenue at Kroondal in 1H 2010 was consequently
lower initially, but the stabilising and subsequent increase in PGM prices
during the half resulted in positive sales adjustments. By comparison these
adjustments were materially negative in 1H 2009 due to falling PGM prices.
Overall revenue from the mine therefore increased in 1H 2010 by 84.2% to
R1,549 million.
Operations
Production of ore from the Kroondal underground operations for the first six
months of FY2010 was 3.1 million tonnes, a decrease of 10.6% compared with the
first half of FY2009. This reduction in mined volumes was largely as a result
of the unprotected industrial action that occurred during the first quarter of
the financial year involving employees of the underground mining contractor,
MRC, on three of the Kroondal shafts. This industrial action took place despite
a wage settlement of 10.2% having been agreed between MRC and the National
Union of Mineworkers (NUM), and eventually resulted in a mass dismissal of the
workforce. 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, further impacting mining volumes. This unprotected
strike action also affected both underground shafts at Marikana. The new
workforce has been fully trained and subsequent to the replacement of the old
workforce, industrial relations have been stable at both operations.
During the first quarter, the underground mining contract at the K5 shaft was
transferred from Redpath to MRC, motivated by operational and equipment
synergies. Although the transfer process proceeded according to plan, it did
result in lower production during the handover. At the period end, the K5 shaft
was achieving the benefits and synergies anticipated by management as a result
of the transfer.
Mining volumes at Kroondal fell 16.0% quarter on quarter in the first quarter of
the financial year, but rose by 21.9% in the second quarter to a satisfactory
level following a creditable operational management response to the problems
encountered in the first part of the financial year.
Primary development increased by 12.0% over the period to a total of 4,072
metres due to improved operational efficiencies and ground conditions.
At the end of the period, stockpiles had been increased to 130,000 tonnes of ore
in preparation for the Christmas close and to mitigate the impact of the Q3
holiday season.
The concentrators processed 3.0 million tonnes in the first six months of the
financial year, representing a decrease of 6.8% versus the comparable period
in the prior year. This reduction was again due to the knock-on effect of the
unprotected strike. The plant head grade increased slightly to 2.60g/t for the
first half, primarily due to a reduction in footwall waste and waste from
off-reef mining being packed underground, while recoveries improved to 79%
through improvement initiatives in operational stability and control. Total
4E PGM production fell by 6.8% to 197,061 PGM ounces, 98,531 PGM ounces of
which are attributable to Aquarius.
Operating Cash Costs
Cash costs for the first half increased by 7.7% compared to 1H 2009, to R365
per ROM ton and by 6.7% to R5,549 per PGM ounce. It is also noteworthy that Rand
costs per PGM ounce in Q2 2010 were only 2.0% higher than in the corresponding
quarter a year ago.
The relative strength of the Rand against the Dollar is reflected in the fact
that the cash costs in Dollar terms increased 22.5% to $725. Rand-denominated
costs were affected by both the unprotected strike as lower production increased
the impact of fixed costs, and by increased labour costs. Electricity tariffs
were increased materially (33%) in June 2009, resulting in increased effective
electricity costs at Kroondal over the first half of the year. However, as a
result of the shallow nature of the Kroondal ore body and the trackless mining
method employed by Aquarius, electricity only comprises approximately 5% of
cash costs. Labour remains the largest single component of Kroondal`s operating
cash costs, representing approximately 50% of the total.
Kroondal: Operating Cash Costs
4E 6E 6E net of by-
(Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) products (Ni&Cu)
Kroondal R 5,549 per PGM R 4,542 per PGE R 4,410 per PGE
ounce ounce ounce
Capital Expenditure
Capital expenditure at Kroondal was R72 million in the first half of FY2010,
or approximately R368 per PGM ounce. This was spent largely on the construction
of underground infrastructure. Kroondal management was able to significantly
reduce capital expenditure at the mine compared with prior periods as a result
of reclamation and re-design initiatives. All of the expenditure incurred
during the period was stay-in-business sustaining capital, and Kroondal`s
expenditure is up to date as per mine plan.
Firstplats transaction
The Firstplats transaction was concluded during the first half, as announced
previously. It has resulted 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.
P&SA2 at Marikana
Safety
- No fatal accidents during the period - Marikana achieved 12 fatality-free
months shortly after the close of the half year
- The 12-month rolling average DIIR for the half year deteriorated to 1.08
compared with 0.70 in the previous corresponding period as a result of the
higher risk profile associated with operations moving from primarily open
pit mining to a combination of underground and open pit mining
- Management actions have been implemented which are expected to reverse this
trend over time
Mining
- Underground production ramp-up continues to progress with 761,000 tons
mined for the period despite the closure of 2 Shaft (at the end of the pcp)
and the unprotected industrial action
- Open pit production decreased to 420,000 tons as a result of geological
pothole intersections and the ramping down of opencast operations
- Head grade decreased to 2.67 g/t due to increased underground tonnage
Processing
- Tonnes processed decreased by 15.0% compared to the first half of 2009,
to 1,157,000, reflecting lower availability of opencast material
- Recoveries improved by 7.8% to 69%
- Marikana produced 68,381 4E PGM ounces during the period, a 15.9% decrease
compared to the first half of 2009
- Production, head grade and recoveries all improved in the second quarter of
the financial year
Revenue
The Dollar PGM basket price achieved by Marikana for the first half was $1,093
per PGM ounce, 8.8% lower than in 1H 2009 but 26.7% higher than in 2H 2009. As
was the case at Kroondal, the strengthening Rand and lower basket prices
resulted in Marikana generating lower revenue initially, but the stabilising
and subsequent increase in PGM prices during the half resulted in positive
sales adjustments. As a result, overall revenue at Marikana increased by 82.5%
to R553 million in the period under review.
Operations
Total mine production for the first six months decreased by 18.0% to 1,2 million
tonnes, made up of 761,000 underground tonnes and 420,000 open pit tonnes. The
reduction in the total was as a result of several factors, including the
unprotected industrial action affecting Marikana`s underground operations, the
ramping down of the opencast operations and the closure of 2 Shaft. Open pit
mining volumes were also impacted negatively by a significant pothole
intersection that occurred shortly prior to the commencement of the first half.
Production improved during the second quarter as the operations stabilised.
The Pit A opencast area was mined out during the second 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 final months of the first
half 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 which will contribute to lower stripping ratios and mining cost
during the next quarter.
Although delayed by the unprotected industrial action, the ratio of underground
mining to opencast continues to increase, as the production build-up at 4 Shaft
continues and the opencast mine approaches its end of life. Development
activities to negate the effect of a high incidence of potholing and geological
features at 1 and 4 Shafts are yielding results, with a commensurate increase in
production in the later months of the period under review. The amount of mining
done adjacent to potholes has negatively influenced the in-situ grade,
exacerbated by the necessary focus on development after the industrial action,
resulting in lower grades due to higher than normal waste contribution. The
grade improved towards the end of the first half as stoping tonnes increased and
panels moved away from pothole areas.
Re-commissioning of the western shaft of the Firstplats acquisition (termed M5
shaft) also commenced and first production from that 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 surface stockpile decreased to 38,000 tons at the end of the period, as ore
stocks were used to offset lower mining volumes.
During the first six months, a total of 1,157,000 tons were processed in the
Marikana concentration plant, a 15.1% decrease period on period.
The average plant head grade decreased to 2.67g/t for the first six months
compared to 2.87 g/t for 1H 2009 due to higher percentage of underground ore and
lower-than-expected underground grades as a result of geological anomalies.
Plant recoveries increased to 69% as the use of oxide material from the open pit
operations declined. Marikana produced 68,381 PGM ounces in the first half of
FY2010 (Aquarius attributable 34,191 PGM ounces), down 15.9% compared to 1H
2009.
Operating Cash Costs
Cash costs for the first half increased by 3.8% compared to 1H 2009, to R436 per
ROM ton and by 4.9% to R7,386 per PGM ounce. As with Kroondal it is noteworthy
that Rand costs per PGM ounce in Q2 2010 at Marikana were only 1.2% higher than
in the corresponding quarter a year ago. Rand cash costs in Q2 2010 also showed
some improvement compared to the first quarter of this financial year, falling
12% to R6,954 per PGM ounce. As with Kroondal, costs were negatively impacted by
increased labour costs and the effect of the mine`s fixed cost base during the
unprotected industrial action in the first quarter. Electricity remains less
than 5% of operating costs at Marikana, while labour constitutes approximately
50%.
The relative strength of the Rand against the Dollar is reflected in the fact
that the cash costs per PGM ounce in Dollar terms increased 20.5% to $965.
Marikana: Operating Costs
4E (Pt+Pd+Rh+Au) 6E 6E net of by-
(Pt+Pd+Rh+Ir+Ru+Au) products (Ni&Cu)
Marikana R7,386 per PGM R6,130 per PGE R 5,949 per PGE
ounce ounce ounce
Capital Expenditure
Stay-in-business capital expenditure at Marikana decreased by 35.7% to a total
for the period of R33.7 million (R491 per PGM ounce). This consisted primarily
of underground infrastructure establishment. All critical capital expenditure is
up to date.
Everest
Safety
- Everest achieved a zero 12-month rolling DIIR
- Everest completed 342 days without a lost time injury at the end of the
first half
Operations
Mining operations were suspended at Everest in December 2008 following a
subsidence event. The subsidence occurred over a mined-out area, and as a result
no resources were lost and stoping areas were not affected. The re-establishment
of Everest therefore relates entirely to the construction of new access points
and associated infrastructure.
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 first half. 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 period under review and a single decline
shaft will be developed to provide 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.
Capital Expenditure
The total re-establishment project capital (both Phase 1 and Phase 2, as
previously announced) of R259 million will put Everest in a position to resume
operations. Project expenditure to date is well within budget, at a total of
R66.0 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.
RIDGE MINING (PTY) LTD
Blue Ridge Mine (Aquarius Platinum - 50%)
Safety
- A fatality tragically occurred on 15 December 2009
- The 12-month rolling average DIIR for the half year was 1.09
- Preventative and remedial actions are being implemented to reverse the
negative trend in safety performance
Mining
- Underground operations produced 413,000 tonnes during the first half of
2010
- Head grade was 2.48g/t
- Stockpiles at the end of the period totalled 173,688 tonnes
Processing
- 605,000 tonnes of ore were processed at Blue Ridge during the first half
- Recoveries were 69%
- PGM production in the period amounted to 33,067 ounces (Aquarius
attributable:16,534 ounces)
Operations
The ramp-up of production at Blue Ridge continues to progress satisfactorily.
During the period under review the focus remained on primary development to open
ore reserves and available panels to increase production to steady state.
Underground mining is progressing well, and 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 has increased steadily, 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 average recoveries
over the half of 69%, reflecting an improvement from 65% to 74% between Q1 2010
and Q2 2010. Throughput for the half year was 605,000 tonnes.
The head grade averaged 2.48g/t over the period, slightly below expectations
mainly as a result of development dilution and the processing of lower grade
development stockpiles.
PGM production was 33,067 PGM ounces (Aquarius attributable 16,534 PGM ounces),
and the Dollar basket price was $1,061 per PGM ounce for the period.
Capital Expenditure
R54.0 million was spent on sustaining capital expenditure at Blue Ridge in the
first six months of the 2010 financial year, and a further R157.2 million of
expansionary capital expenditure was also incurred. Aquarius continues to
capitalise costs and revenues associated with the ramp-up phase of Blue Ridge.
MIMOSA INVESTMENTS LIMITED (Aquarius Platinum - 50%)
Mimosa Platinum Mine
Safety
- No fatal accidents during the period - Mimosa had achieved 2.2 million
fatality-free shifts by the end of the half year
- The 12-month rolling average DIIR improved from 0.18 to 0.14 for the period
- Mimosa retains the best safety record among the Aquarius operations
Mining
- Underground mining production was flat at 1,068,000 tonnes
- The surface stockpile decreased by 72.5% from the comparative period to
146,000 tonnes
Processing
- 1,153,000 tonnes were processed at Mimosa in 1H 2010, an increase of 13.7%
- Average concentrator plant recoveries rose to 76%
- Total mine production increased by 16.2% to 100,907 (Aquarius attributable:
50,454 PGM ounces)
Revenue
The Dollar PGM basket price for the period averaged $859 per PGM ounce, a 28.2%
decrease compared to 1H 2008, but a 24.7% increase compared to 2H 2009. The
average nickel price over the period was 9.1% lower at $7.59 per pound and
copper was 14.0% higher at $2.58 per pound compared to the previous
corresponding period.
As a result of increased PGM production and positive sales adjustments
reflecting higher PGM prices late in the period, revenue from Mimosa for the
first six months was $110 million, a 115.7% increase compared to the previous
corresponding period despite lower average metals prices.
During the period mining operations remained consistent, hoisting 1,068,000
tonnes, the same volume as in the previous corresponding period. Tonnes
processed at Mimosa during the first half totalled 1,153,000, an increase of
13.7%, despite a mill shutdown in December. The surface stockpile at the end of
the period stood at 146,000 tonnes, a reduction of 72.5% compared to the prior
period, as ore stocks were used to supplement mining volumes.
The average plant head grade for the period decreased slightly to 3.59 g/t,
while recoveries improved to 76%. Mimosa`s PGM production for the period
increased by 16.2% to 100,907 PGM ounces (Aquarius attributable: 50,454 PGM
ounces).
Operating Cash Costs
Cash costs for the period increased by 25.0% to $50 per ROM ton and by 21.3% to
$569 per PGM ounce compared to the previous corresponding period. Net of by-
products, cash costs were $278 per PGM ounce. The cost increases relate largely
to the continuing effects of the dollarization of the Zimbabwean economy.
Mimosa Operating Costs
4E 6E 4E net of by-
(Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) products (Ni, Cu&
Co)
Mimosa $569 per PGM $540 per PGE ounce $161 per PGE ounce
ounce
Capital Expenditure
Stay-in-business capital expenditure at Mimosa increased by 44.4% to a total
for the period of $13 million (approximately $120 per PGM ounce). This
consisted primarily of underground infrastructure establishment. All critical
capital expenditure is up to date.
Regulatory developments in Zimbabwe
The Indigenization and Economic Empowerment Regulations - Statutory Instrument
21 of 2010 - was published in the Zimbabwean Government Gazette in early
February 2010. In terms of these regulations, foreign companies are required to
localise or indigenize "51% of their shares or interests therein" within 5 years
in all business sectors.
The regulations provide for the gazetting within twelve months of further rules
"with respect to each sector and subsector of the economy what lesser share than
the minimum indigenization and empowerment quota shall be the minimum lesser
share that indigenous Zimbabweans may hold in a business operating in the sector
or subsector in question."
The regulations further provide "what weighting (expressed as a fixed percentage
that may be added towards the fulfillment of the minimum indigenization
empowerment quota) to assign to anyone or more" of the "socially and
economically desirable objectives in favour of a business operating in a
specified sector or subsector of the economy."
At the time of publication of this report, the Chamber of Mines of Zimbabwe on
behalf of the mining sector was in closed discussions with relevant authorities
with respect to finalizing the indigenization and empowerment quota for the
mining industry.
Aquarius is studying the regulations and its formal response to compliance will
be guided by advice from its subsidiary, Mimosa Mining Company (Pvt) Limited.
Mimosa is a member of the Chamber of Mines of Zimbabwe.
As further information becomes available the market will be kept informed.
AQUARIUS PLATINUM (SA) CORPORATE SERVICES (PTY) LTD
Chromite Tailings Retreatment Plant (CTRP) (Aquarius Platinum - 50%)
Safety
- The DIIR for the period was 0
Processing
- Feed processed was 142,000 tonnes, an increase of 18.3%
- Average recoveries for the period decreased from 39% to 37%
- 3,827 PGM ounces produced (Aquarius attributable: 1,913 PGM ounces)
Revenue
The Dollar PGM basket price for the period was $1,179 per PGM ounce, a decrease
of 22.9% compared to 1H 2009 but an increase of 27.0% compared to 2H 2009. The
CTRP produces proportionately more rhodium than the other operations, which
contributes to the higher basket prices achieved. As was the case at the other
South African operations, the strengthening Rand and lower basket prices
resulted in CTRP generating lower revenue initially, but the stabilising and
subsequent increase in PGM prices during the half resulted in positive sales
adjustments. As a result, revenue at CTRP increased by 133.3% to R28 million.
Operations
Processing plant feed increased by 18.3% 142,000 tonnes over the first half,
while the head grade fell by 8.8% to 2.28 g/t. Recoveries also decreased, from
39% to 37%.
CTRP produced 3,827 PGM ounces (Aquarius attributable: 1,913 PGM ounces), a 7.8%
increase compared with the previous corresponding period.
Operating Costs
Cash costs decreased by 13.1% to R3,105 per PGM ounce, equal to $406 per PGM
ounce.
4E 6E 6E net of by-
(Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) products
CTRP R 3,105 per PGM R 2,121 per PGE R 2,040 per PGE
ounce ounce ounce
PLATINUM MILE RESOURCES (PTY) LTD
Platinum Mile (Aquarius Platinum - 50%)
Safety
- The DIIR for the period was 0.
Processing
- Milling expansion completed during the period, increasing the capacity and
processing efficiency of the plant
- Feed processed was 4.0 million tonnes, a decrease of 13.0%
- Average recoveries for the period were 15%
- 14,471 PGM ounces produced (Aquarius attributable: 7,236 PGM ounces)
Revenue
The Dollar PGM basket price for the period was $1,166 per PGM ounce, an increase
of 38.6% compared to 1H 2009. Revenue at Platinum Mile increased by 55.4% to
R115 million.
Operations
The Platinum Mile milling expansion has been completed, and is yielding the
anticipated improvements in processing capacity and efficiency by enabling
greater plant throughput and finer grinding.
Processing plant feed decreased by 13.0% to 4.0 million tonnes over the first
half, while the head grade fell by 12.5% to 0.63 g/t. Recoveries increased,
however, from 9% to 15%.
Platinum Mile produced 14,471 PGM ounces (Aquarius attributable: 7,236 PGM
ounces), a 59.3% increase compared with the previous corresponding period.
Operating Costs
Cash costs decreased by 26.5% to R2,490 per PGM ounce, equal to $333 per PGM
ounce.
4E 6E 6E net of by-products
(Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au)
Platinum R 2,490 per PGM - -
Mile ounce
Statistics Kroondal Marikana P&SA2 CTRP Everest
P&SA1
Unit 6 6 6 6 6 6 6 6
mont mont months months monthsD months months month
hsDe hsDe Dec Dec ec 2009 Dec Dec sDec
c c 2009 2008 2008 2009 2008
2009 2008
Safety
DIIR Rate/2 0.63 0.77 1.08 0.70 0 4.80 -
00,000
hrs
Revenue
Gross Millio 1,54 841 553 303 28 12 - 226
revenue ns 9
PGM $/oz 1,07 1,23 1,093 1,198 1,179 1,530 - 1,224
basket 7 3
Price
Gross % 29 (31) 9 (89) 57 (5) - (89)
cash
margin
Nickel $/lb 7.99 6.76 7.99 6.76 7.99 6.76 - 6.76
Price
Copper $/lb 2.84 2.63 2.84 2.63 2.84 2.63 - 2.63
Price
Ave R/$ 7.65 8.79 7.65 8.79 7.65 8.79 - 8.79
rate
On Mine Cash Costs
Per ROM R/ton 365 339 436 420 84 106 - 511
ton
$/ton 48 39 57 48 11 12 - 58
Per PGM R/oz 5,54 5,20 7,386 7,038 3,105 3,572 - 6,686
(3E+Au) 9 3
$/oz 725 592 965 801 406 406 - 761
Per PGE R/oz 4,54 4,26 6,130 5,780 2,121 2,447 - 5,471
(5E+Au) 2 6
$/oz 594 485 801 658 277 278 - 623
Production
Undergr ton 3,11 3,48 761 740 - - - 839
ound `000s 3 3
Open ton 0 18 420 700 - - - -
Pit `000s
Total ton 3,11 3,50 1,181 1,440 142 120 - 839
`000s 3 1
Plant g/t 2.60 2.57 2.67 2.87 2.28 2.50 - 2.89
Head PGM
Recover % 79 78 69 64 37 39 - 83
ies
Platinu Ozs 116, 125, 42,353 50,375 2,315 2,155 - 37,64
m 059 709 3
Palladi Ozs 58,5 61,7 18,876 22,342 844 792 - 19,36
um 19 34 5
Rhodium Ozs 21,5 23,0 6,742 8,123 661 592 - 6,499
16 09
Gold Ozs 968 987 410 494 7 8 - 562
Total Ozs 197, 211, 68,381 81,333 3,827 3,548 - 64,06
PGM 061 438 8
(3E+Au)
Iridium Ozs 8,33 8,74 2,693 3,415 324 293 - 2,487
0 8
Rutheni Ozs 35,3 37,7 11,312 14,285 1,452 1,339 - 11,74
um 90 03 0
Total Ozs 240, 257, 82,387 99,034 5,603 5,179 - 78,29
PGE 782 889 5
(5E+Au)
Nickel Tons 216 215 89 118 5 5 - 122
Copper Tons 91 91 58 61 3 2 64
Statistics Mimosa Platinum Mile Blue
Ridge
Unit 6 6 6 6 6 months
monthsDec monthsDec monthsD months Dec 2009
2009 2008 ec 2009 Dec
2008
Safety
DIIR Rate/200,00 0.14 0.18 0 0 1.09
0 hrs
Revenue
Gross revenue Millions 110 51 115 74 -
PGM basket $/oz 859 1,196 1,166 841 1,061
Price
Gross cash % 42 20 40 43 -
margin
Nickel Price $/lb 7.59 8.35 7.48 5.83 7.99
Copper Price $/lb 2.58 3.19 3.10 2.12 2.84
Ave R/$ rate - - 7.48 8.83 7.62
On Mine Cash Costs
Per ROM ton R/ton - - 9 7 -
$/ton 50 40 1 1 -
Per PGM R/oz - - 2,490 3,387 -
(3E+Au)
$/oz 569 469 333 384 -
Per PGE R/oz - - 2,108 2,920 -
(5E+Au)
$/oz 540 446 282 331 -
Production
Underground ton `000s 1,068 1,068 - - 413
Open Pit ton `000s - - 3,952 4,574 -
Total ton `000s 1,068 1,068 3,952 4,574 413
Plant Head g/t PGM 3.59 3.61 0.63 0.72 2.48
Recoveries % 76 74 15 9 69
Platinum Ozs 51,079 44,016 8,393 5,269 19,799
Palladium Ozs 38,806 33,540 4,486 2,817 9,837
Rhodium Ozs 4,108 3,523 1,303 817 3,109
Gold Ozs 6,915 5,790 289 183 322
Total PGM Ozs 100,907 86,870 14,471 9,086 33,067
(3E+Au)
Iridium Ozs 3,578 2,962 - - 1,133
Ruthenium Ozs 1,841 1,535 2,315 1,453 5,422
Total PGE Ozs 106,326 91,367 16,786 10,539 39,622
(5E+Au)
Nickel Tons 1,400 1,217 67 54 -
Copper Tons 1,146 995 30 16 -
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)
David Dix
Zwelakhe Mankazana
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 Simbanegevi 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 Operations Director
Fungai Makoni Finance Executive & Company Secretary
Issued Capital
At 31 December 2009, the Company had in issue: 462,491,685 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 (Australia 39,410,836 8.52%
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 Euroz Securities RAND MERCHANT BANK (A division
Limited Level 14, The of FirstRand Limited)
City Point, 1 Quadrant cnr Rivonia Road & Fredman
Ropemaker Street, 1 William Street, Drive
London, EC2Y 9HT Perth WA 6000 Sandton 2196
Telephone: +44 (0) Telephone: +61 (0)8 Telephone:
20 3100 2000 9488 1400 +27 (0)11 282 8000
Bank of America
Merrill Lynch
2 King Edward St
London, EC1A 1HQ
Telephone: +44 (0)20
7628 1000
Aquarius Platinum (South Africa) (Proprietary) Ltd
100% Owned
(Incorporated in the Republic of South Africa)
Registration Number 2000/000341/07
1st Floor, Building 5, Harrowdene Office Park, Western Service Road, Woodmead
2191, South 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
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
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 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 Reef A PGE bearing layer within the Great Dyke Complex in
Zimbabwe
g/t Grams per tonne, measurement unit of grade (1g/t = 1 part per million)
JORC code Australasian code for reporting of Mineral Resources and Ore Reserves
JSE JSE Securities Exchange South Africa
Kroondal Kroondal Platinum Mine or P&SA1 at Kroondal
LHD Load Haul Dump machine
Marikana Marikana Platinum Mine or P&SA2 at Marikana
Mimosa Mimosa Mining Company (Private) Limited
MRC Murray & Roberts Cementation
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
PMR Platinum Mile Resources Pty Ltd
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.
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
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
Gavin Mackay
gavin.mackay@aquariusplatinum.com
+ 44 7909 547 042
Date: 11/02/2010 10:14:03 Produced by the JSE SENS Department.
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