| Thu 12 Aug 2010, 8:42 | | AQP - Aquarius Platinum Limited - Preliminary full year results to 30 June |
|
AQP
AQP
AQP - Aquarius Platinum Limited - Preliminary full year results to 30 June
2010
Aquarius Platinum Limited
(Incorporated in Bermuda)
Registration Number: EC26290
Share Code JSE: AQP
ISIN Code: BMG0440M1284
PRELIMINARY FULL YEAR RESULTS TO 30 JUNE 2010
Key Points: Financial
- Revenue increased by 52% to $472.2 million (FY2009: $310.6 million)
- Mine operating net cash flow increased six-fold to $94.0 million (FY2009:
$12.0 million)
- Mine EBITDA increased by $175.5 million to $145.1 million (FY2009: -$30.5
million)
- Adjusted Net profit of $62.1 million (before exceptional charges)
- Reported Net profit increased by $73.5 million to $27.8 million (US 6.09
cents per share)
- Group cash balance at FY close of $381.7 million, an increase of $228.1
million on the prior year
- Final dividend of US 4 cents per share declared, taking full year dividend
to US 6 cents per share (FY2009: nil)
Key Points: Operational
- Group attributable production (including Blue Ridge) of 422,645 PGM ounces
for the full year, despite the Everest mine closure for the most part of the
year
- Weighted average on-mine unit cash costs in South Africa increased by 9% in
Rand terms, credible in the circumstances
- Everest mine recommissioned in May, within budget and 3 months ahead of
schedule - now ramping up smoothly
- Mimosa on-mine unit cash costs up 22% as a result of the adoption of the
multi-currency regime (US dollar) in Zimbabwe
Key Points: Strategic
- Safety review in respect of "falls of ground" underway and additional safety
measures agreed with DMR following tragic Marikana multiple fatal accident
(shortly after year end)
- $300 million of unsubordinated, unsecured convertible bonds due 2015 issued
in December 2009
- ZAR Bond repayment - $101 million of cash used to retire existing relatively
expensive R650 million convertible bonds
- US Dollar bond removes derivative foreign exchange effect of ZAR bond
- Blue Ridge long term mine plan under review, to enhance production and
improve operational flexibility and cost
Commenting on the results, Stuart Murray, CEO of Aquarius Platinum said:
"The 2010 financial year has been a very different year for Aquarius compared
to 2009. Sharp improvements have been recorded in almost all financial metrics
compared to the very tough 2009 financial year, as the effects of the global
financial crisis have abated and markets have made a tentative recovery.
During the year average PGM prices recovered quite strongly, despite the
recent corrections since May. PGMs are late-stage recovery commodities, as
they are linked to that significant consumer expenditure item - the car! As a
result we believe that as world demand continues to recover, so the outlook
for our primary products will continue to improve, aided in the medium term by
continued supply side constraints. 2010 was a much improved year financially,
and 2011 has the potential to be somewhat better.
The year was not free of its challenges. An illegal strike in August 2009
halted production at Kroondal and Marikana for two weeks, and the performance
of our tailings operations was negatively impacted by below-plan feedstock
quality and volume issues. Safety matters at Blue Ridge blighted an otherwise
excellent track record at the other operations. There were also successes,
with Mimosa performing exceptionally well and Everest restarting ahead of
schedule and under budget.
It would be wrong not to finish with words about the terrible accident that
occurred at Marikana`s 4 Shaft shortly after the 2010 year end. It is the
worst accident in Aquarius` history and our sincere condolences go out to the
family, friends and colleagues of the five men who died. We are redoubling our
commitment to safety and we have agreed and are implementing new and
additional safety measures at our mines."
Financial results: Year to 30 June 2010
Aquarius recorded a significant financial improvement on the previous
corresponding period (pcp), to report a net profit of $27.8 million (6.09
cents per share) for the financial year despite the significant impact of
$34.3 million of exceptional charges. This represents an increase of $74
million over the previous corresponding period (pcp).
This improvement was reflected in the $175.5 million increase in mine EBITDA,
moving from a loss of $30.5 million in the pcp to a profit of $145.1 million
in FY2010. 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 Everest mine recommenced processing
ore in June 2010, contributing 8,496 PGM ounces to Group production for the
financial year under review. The early start of Everest generated $9.8 million
of revenue which partly offset care and maintenance costs at the mine for the
year.
The Directors have declared a final dividend of US 4 cents per share (2009:
nil) payable on 1 October 2010 to shareholders registered on 10 September
2010, reflecting the company`s improved operational cash flow and the
Directors` increasing confidence in the improved operating cashflow of the
business. This brings the total dividend payable for the year ended 30 June
2010 to US 6 cents (2009: nil).
The Result was significantly impacted by $34.3 million of exceptional non-
mining expenditure, primarily related to:
$4.9 million in M&A and capital raising costs with respect to the acquisition
of Ridge Mining and the $300 million convertible note issue completed in
December 2009
$20.9 million for the early redemption of the Rand convertible notes,
inclusive of $4.9 million borrowing costs written off
$9.7 million one-off charge to adjust Mimosa`s deferred tax following the
increase in the company tax rate in Zimbabwe from 15% to 25%
credit of $5.4 million to record the discount realised on the acquisition of
the Ridge assets from fair valuing the assets
EBITDA, Profit & Production Comparison by Half Year & Full Year (FY 2010 &
2009)
1st 2nd FY2010 FY2009 Movement
half half
FY FY
2010 2010
EBITDA $56.6M $88.4M $145.0 ($30,5 $175.5M
M M)
Net profit (loss) $3.9M $23.9M $27.8M ($45.7 $73.5M
after tax & OEI M)
Revenue $206.1 $266.1 $472.2 $310.6 $161.6M
M M M M
PGM ozs 192,32 201,01 393,34 455,74 (62,399)
production (in 3 8 1 (a) 0 (b)
operation)
Average PGM $1,072 $1,324 $1,201 $682 $519
basket price per
ounce achieved
(a) excludes 29,304 PGM ounces of Blue Ridge production capitalised.
(b) Includes 64,068 PGM ounces from Everest mine
On an adjusted basis, net profit before these significant and one-off
adjustments was $62.1 million.
Please refer to www.aquariusplatinum.com for the graph.
Revenue (PGM sales and interest income of $14 million) for the FY2010 was up
52% to $472.2 million from $310.6 million. Measured on a PGM ounce basis, this
represents an increase in revenue realised from $682 per PGM ounce to $1,201
per PGM ounce.
Gross mine margins recovered following improved and less volatile PGM prices
during the year.
Group attributable mine production for the period was 422,645 PGM ounces. The
Group`s existing operations are expected to continue to increase production in
FY2011 to approximately 530,000 PGM ounces after allowing for the temporary
suspension of mining at the Blue Ridge operations.
Total cash cost of production was $310 million, up 23% per PGM ounce in Dollar
terms, materially influenced by Rand strength which strengthened by 16%
against the US Dollar and by the adoption of the US dollar in Zimbabwe.
Weighted average unit costs for FY2010 (excluding Blue Ridge) were $751 per 4E
ounce, up 26% compared to FY2009.
Amortisation and depreciation were marginally lower at $42 million from $43
million reflecting lower production at the South African operations.
Corporate administration expenses of $13.5 million included one-off costs of
$4.9 million associated with M&A activity (including the Ridge acquisition)
and refinancing activities.
Finance costs for the year of $25.7 million included $12.7 million interest on
convertible notes and bank borrowings, borrowing costs amortised of $0.9
million and a (non cash) charge of $12.1 million relating to the net present
value adjustments to the Marikana and Kroondal rehabilitation provisions and
accretion of the interest component of the convertible note debt.
Income tax expense was higher due to a $9.7 million increase in Mimosa`s
deferred tax liability following an increase from 15% to 25% in Zimbabwe`s
corporate tax rate and R11.4 million of new SA royalties (as introduced by the
Mineral and Petroleum Resources Development Act), for the period from 1 March
to 30 June.
Refinancing Activities
Convertible Bond
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.
Part of the proceeds of the Bonds were 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 impact
arising from the notification of early redemption of the company`s rand
convertible notes inclusive of the borrowing costs and the 15% premium has
been accounted for in the consolidated income statement for FY2010. Cash
Balances
Group cash balance at 30 June 2010 was $381.7 million representing an increase
of $228.1 million over the pcp.
Net operating cash flows for the year generated by the group`s mining
operations increased six fold to $94.0 million despite lower comparative
production. The table below reconciles net profit to net cash flows of the
group provides a more appropriate gauge of the cash generating capacity of the
group`s mines.
$000`s
Operating Profit After Tax 27,773
Adding Back Non Cash Items
Depreciation 31,154
Amortisation 10,785
Movement in fair value of (6,084)
derivative
Discount on acquisition (5,425)
Loss on early redemption of 26,920
convertible note
Borrowing costs amortisation 918
Accretion of interest on 6,699
convertible bond
Accretion of interest on rehab 5,414
liability
Provision for tax 23,204
Provision for employee 22
entitlements
Provision for rehabilitation (26,011)
Rehabilitation trust interest (3,514)
Profit/(Loss) on the sale of non 44
current assets
Changes in net market value of (301)
investments
Net foreign currency losses 4,846
Movements in assets and (2,479)
liabilities:
Net operating cash flows 93,966
Group Debt
Group interest bearing debt (excluding pipeline advances) at 30 June 2010 of
$260 million comprised, $238 million convertible notes and $22 million bank
loans at subsidiary level (mainly Blue Ridge).
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 as a result
revenue and costs at this mine continue to be capitalised. The acquisition
also added significant optionality with the Sheba`s Ridge resource.
The total cost of the business combination was US$112.7 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.
Group Financials by Operation
Please refer to www.aquariusplatinum.com for the table.
Rand US Dollar Exchange Rate
The Rand strengthened slightly against the US Dollar over the 2010 financial
year, starting the year at 7.78 and ending it at 7.62. There was considerably
less volatility in the exchange rate compared with the previous year as the
effects of the global financial crisis receded. The Rand averaged 7.59 to the
US Dollar during the year, 16% stronger than the average of 9.03 recorded in
the prior financial year. The currency was range-bound throughout the year.
Financial Year 2010: Rand US Dollar Exchange Rate
Please refer to www.aquariusplatinum.com for the graph.
Platinum Group Metal Prices
The prices of the platinum group metals recovered consistently in US Dollar
terms over the period from July 2009 to May 2010, reflecting restocking by
automobile manufacturers and improving demand for automobiles worldwide, and
strong jewellery demand. This strengthening in the prices was aided by the
launch of two new US-listed physically-backed platinum exchange traded funds
(ETFs) in January 2010 which permitted increased investor interest in the
metal. Strong flows into these, the existing Swiss-based platinum ETF and the
palladium ETFs supported prices in the third quarter. In May 2010 the Greek
sovereign debt crisis caused a correction in PGM prices as the economic
recovery particularly in Europe was called into question. In the final month
of the financial year the market satisfied itself that a second recession was
unlikely and the PGMs resumed their slow, steady price improvement. Platinum
rose 30% over the year to close at $1,532 per ounce and averaged $1,450 per
ounce for the financial year, a 26% improvement over the prior year. Platinum
peaked in April at $1,752 per ounce, but underperformed the other PGMs because
of its reliance on European demand for diesel passenger cars. The recovery in
palladium and rhodium prices was more marked, with palladium rising 76% over
the year and rhodium rising 75%. Gold rose 34% during the period. PGM prices
have continued to rise in the new financial year.
Financial Year 2010: Platinum, Palladium, Rhodium and Gold Prices
Please refer to www.aquariusplatinum.com for the graph.
The South African and Zimbabwean US Dollar 4E basket prices consequently saw
significant increases compared to the prior financial year. In South Africa
the basket price averaged 17% higher for the year at $1,231 per 4E ounce for
the group, while in Zimbabwe it rose 24%. The average basket price achieved
by the South African operations was $1,227 per 4E ounce and in Zimbabwe it was
$993.
Financial Year 2010: PGM Basket Prices (4E)
Please refer to www.aquariusplatinum.com for the graph.
Production
Total production decreased in the 2010 financial year from 847,283 to 836,795
4E ounces, largely due to the impact of the closure of Everest in 2009.
Everest remained closed for much of the 2010 financial year but was re-opened
ahead of schedule in the final quarter and contributed 8,496 4E ounces.
Everest is expected to ramp up rapidly in 2011. Kroondal and Marikana both
produced less than in FY 2009 due to an illegal two-week strike in August
2009, while Mimosa produced more, successfully ramping up to its nameplate
200,000 ounces following the completion of the Wedza Phase 5 expansion last
year. The chart below illustrates the annual production profile.
Aquarius Group Attributable Annual Production (4E PGM ounces)
Please refer to www.aquariusplatinum.com for the graph.
Production of PGMs attributable to shareholders of Aquarius was 422,645 4E
ounces. The tables below compare production by operation and attributable to
Aquarius over the four quarters and year-on-year.
Production by Mine
PGMs Quarter Ended Full Year Ended
Quarter Quarter Quarter Quarter FY 2009 FY 2010
1 2 3 4
Kroondal 88,808 108,254 103,072 108,438 422,078 408,570
Marikana 31,222 37,160 35,148 31,890 157,938 135,418
Everest - - - 8,496 64,068 8,496
Mimosa 50,828 50,078 49,008 49,710 180,022 199,625
CTRP 1,740 2,088 1,268 1,304 6,824 6,399
Platinum 5,932 8,540 2,738 2,412 16,353 19,670
Mile
Blue 14,469 18,598 15,340 10,202 - 58,617
Ridge
Total 192,999 224,718 206,574 212,452 847,283 836,795
Production by Mine Attributable to Aquarius
PGMs Quarter Ended Full Year Ended
Quarter Quarter Quarter Quarter FY 2009 FY2010
1 2 3 4
Kroondal 44,404 54,127 51,536 54,219 211,039 204,285
Marikana 15,611 18,580 17,574 15,945 78,969 67,709
Everest - - - 8,496 64,068 8,496
Mimosa 25,414 25,039 24,504 24,855 90,011 99,812
CTRP 870 1,044 634 652 3,412 3,200
Platinum 2,966 4,270 1,369 1,206 8,177 9,835
Mile
Blue 7,235 9,299 7,670 5,101 - 29,308
Ridge*
Total 96,500 112,359 103,287 106,226 455,676 422,645
*Mine in ramp-up, revenues and costs capitalised
FINANCIALS
Aquarius Platinum Limited
Consolidated Income Statement
Year ended 30 June 2010
$`000
Note Half year ended Year ended
30/6/2010 31/12/09 30/6/2010 30/6/09
Blue Ridge 12,770 16,534 29,304 0
Attributable 201,018* 192,323* 393,315 455,675
Production (PGM
Ounces) (excluding
Blue Ridge
production)
Total production 213,788 208,857 422,645 455,675
Revenue (i) 266,131 206,089 472,220 310,556
Cost of Sales (ii) (189,649) (162,380 (352,029) (334,327
(including D&A) ) )
Gross profit/(loss) 76,482 43,709 120,191 (23,771)
Other income 1,079 510 1,589 1,815
Corporate Admin & (iii) (5,200) (8,268) (13,468) (9,919)
other costs
Finance costs (iv) (15,106) (10,644) (25,750) (35,968)
Loss on early (v) - (20,836) (20,836) -
redemption of
convertible note
Foreign exchange (vi) (20,932) 16,086 (4,846) (20,328)
gains/(losses)
Fair value movement - - - 3,829
in derivative
Impairment of assets (vii) (205) 506 301 (13,050)
Transaction and (viii 1,002 246 1,248 -
acquisition costs )
associated with
Ridge Mining
Profit/(loss) before 37,120 21,309 58,429 (97,392)
tax
Income tax credit (ix) (13,218) (17,438) (30,656) 15,808
(expense)
Profit/(loss) after 23,902 3,871 27,773 (81,584)
tax
Minority interest (x) - - - 35,842
Net profit/(loss) 23,902 3,871 27,773 (45,742)
Earnings per share 5.23 0.86 6.09 (13.30)
(basic - cents)
Notes on the June 2010 Consolidated Income Statement
(i) Sales revenue increase reflects higher PGM basket price achieved.
(ii) Weighted average cash costs in unit terms (excluding Blue Ridge)
increased by 26% in US Dollar terms but by only 9% in Rand terms (excluding
Mimosa and Blue Ridge) due to a 16% increase in the value of the Rand compared
to the US Dollar.
(iii) Corporate administration costs are above the pcp due to increased M&A
and refinancing activities ($4.9 million) included in corporate administration
costs.
(iv) Decrease in finance costs reflects improved terms secured for the new
convertible note issue that replaced the previous Rand convertible note issue.
Finance costs comprised interest of $12.8 million on convertible note and bank
borrowings, $0.8 million on pipeline finance, $5.4 million of non-cash
interest arising from the unwinding of the net present value of the
rehabilitation provisions of AQPSA, and $6.7 million non-cash interest arising
from the accretion of interest on the convertible note.
(v) Loss incurred on the early payout of the Rand convertible note inclusive
of associated borrowing costs and the reversal of the fair value the
derivative component of the Rand convertible note previously amortised against
the life of the note.
(vi) Foreign exchange losses include a $2 million loss on adjusting revenue
recorded at time of production at Kroondal, Marikana and CTRP to realised
receipts received at the end of the four month pipeline, a $4.6 million loss
on the revaluation of the Rand convertible note (since repaid), a $8 million
gain on the revaluation of group loans, $0.5 million gain on pipeline
advances, $6.5 million loss incurred on the revaluation of net monetary
assets.
(vii) Reflects movement in impairment charges for listed investments.
(viii) Reflects net impact of transaction and acquisition costs associated
with the acquisition of Ridge Mining.
(ix) Income tax includes a $9.7 million increase in Mimosa`s deferred tax
liability following an increase from 15% to 25% in Zimbabwe`s corporate tax
rate and R11.4 million of new South African royalties (as introduced by the
Mineral and Petroleum Resources Development Act) for the period from 1 March
to 30 June.
(x) Minority interest reflects interest previously at AQPSA level, now 100%
owned by AQP.
Aquarius Platinum Limited
Consolidated Cash flow Statement
Year ended 30 June 2010
$`000
Half year ended Financial year
ended
Note: 30/06/10 30/06/09 30/6/10 30/06/09
Net operating cash (i) 76,316 27,886 93,967 12,006
flow
Net investing cash (ii) (31,072) (48,936) (60,953) (73,380)
flow
Net financing cash (iii) (116,799) 68,848 196,073 38,754
flow
Net increase (71,555) 47,798 229,087 (22,620)
(decrease) in cash
held
Opening cash balance 464,576 86,954 153,600 170,956
Exchange rate (iv) (11,287) 18,848 (953) 5,264
movement on cash
Closing cash balance 381,734 153,600 381,734 153,600
Notes on the June 2010 Consolidated Cash flow Statement
(i) Net operating cash flow includes net inflow from operations $101 million,
net interest paid of $1 million and income tax paid $7 million.
(ii) Net investing cash flow includes payments for mine development and
development costs $75 million and cash acquired re the Ridge Mining
acquisition, $14 million.
(iii) Net financing cash flow includes: issue of shares $43 million,
convertible notes issued $294 million (net), repayment of Rand convertible
notes $101 million, loans repaid at subsidiary level - Ridge RMB loan $12
million, Mimosa working capital loan $5 million and PlatMile bank loan $2
million, and dividends paid of $9 million.
(iv) Exchange rate movement reflects movement of other currencies against the
US Dollar.
Aquarius Platinum Limited
Consolidated Balance Sheet
At 30 June 2010
$`000
Financial year ended
Note: 30/6/10 30/06/09
Assets
Cash assets 381,734 153,600
Current receivables (i) 120,693 119,866
Other current assets (ii) 49,338 43,652
Property, plant and (iii) 272,117 230,057
equipment
Mining assets (iv) 425,882 270,374
Other non-current assets (v) 56,603 25,287
Intangibles (vi) 72,833 74,167
Total assets 1,379,200 917,003
Liabilities
Current liabilities (vii) 102,313 75,430
Non-current payables (viii) 6,932 1,555
Non-current interest- (ix) 237,581 70,034
bearing liabilities
Derivative financial (x) - 6,084
instrument at fair value
Other non-current (xi) 195,341 155,730
liabilities
Total Liabilities 542,167 308,833
Net assets 837,033 608,170
Equity
Issued capital 23,154 20,751
Reserves 649,777 441,835
Retained earnings 164,102 145,584
Total Equity 837,033 608,170
Notes on the June 2010 Consolidated Balance Sheet
(i) Reflects debtors receivable on PGM concentrate sales.
(ii) Reflects PGM concentrate inventory, consumables, stores and critical
spares.
(iii) Represents fixed assets within the Group.
9iv) Includes group`s mining assets at Kroondal, Marikana, Mimosa, Everest,
Blue Ridge, CTRP and Platmile
(v) Includes recoverable portion of rehabilitation provision at P&SA sites of
$12 million, cash contributed to Rehabilitation Trusts of $15 million, listed
investments of $3 million and $27 million owed by the RBZ to Mimosa relating
to the previous requirements to repatriate US Dollar proceeds on metals sales
to the RBZ.
(vi) Included intangibles relating to goodwill and contract value acquired on
acquisition of 50% equity interest in Platinum Mile Resources (Pty) Ltd.
(vii) Increase reflects bank loans at subsidiary level (Blue Ridge) $22
million, trade creditors $76 million and current tax liabilities $4 million.
(viii) Reflects P&SA partners` right of recovery of rehabilitation provisions.
(ix) Includes convertible notes of $237m and AQPSA vehicle leases of $0.6m.
(x) Derivative relates to the fair value of the option component which formed
part of the overall Rand convertible note debt since repaid.
(xi) Reflects deferred tax liabilities of $128 million and provision for
closure costs of $68 million.
OPERATING REVIEW
This section contains summarised operating reviews of each of the Company`s
seven operations. Further detail can be obtained from the quarterly and half-
yearly reports released by the Company throughout the 2010 financial year
which are available on the Company`s website, www.aquariusplatinum.com.
AQUARIUS PLATINUM (SOUTH AFRICA) (PTY) LTD (Aquarius Platinum 100%)
P&SA1 at Kroondal
Safety, Health and Environmental
The 12-month rolling average DIIR for the year improved to 0.57 from 0.74 in
the previous year, and no fatalities were recorded. Management measures and
safety management systems have continued to see improving results during the
financial year. Following the tragic accident at the Marikana mine shortly
after the year end, further safety initiatives have been agreed with the
Department of Mineral Resources and are currently being implemented at
Kroondal. Further details of these additional safety measures are available in
the Q4 2010 quarterly report.
Production
Underground production fell 4% year-on-year to 6.2 million tonnes, largely as
a result of the illegal two-week strike that occurred in August 2009. The
average head grade over the year was marginally higher at 2.59 g/t.
Recoveries remained static at 79%. Total PGM production for the year decreased
by 3% to 408,570 4E ounces (Aquarius attributable: 204,285 ounces).
Kroondal: Metal in concentrate produced (PGM ounces)
Year Pt Pd Rh Au PGMs Attributable
Ended (4E) PGMs (4E)
June 240,441 121,572 44,533 2,024 408,570 204,285
2010
June 250,525 123,620 45,912 2,022 422,078 211,039
2009
Revenue
The average achieved PGM basket price for the year increased 18% to $1,227 per
4E ounce. The gross cash margin for the year rose 113% to 32%, despite
slightly lower production volumes and the marginally stronger Rand.
Operating Costs
Cash cost per ROM ton increased by 13% to R381 per ton. Consequently, cash
costs per PGM ounce increased 11% to R5,769.
P&SA1 at Kroondal: Operating Costs
Rand 4E per Rand 6E per Rand 6E per
ounce ounce(Pt+Pd+Rh+Ir+Ru+Au) ouncenet of by-
(Pt+Pd+Rh+Au) products (Ni&Cu)
FY 5,769 4,720 4,587
2010
Capital Expenditure
Stay-in-business capital expenditure at Kroondal for the 2010 financial year
was R423 per 4E ounce.P&SA2 at Marikana Platinum Mine
Safety, Health and Environmental
The 12-month rolling average DIIR for the year improved to 0.74 from 0.91 in
the previous year. No fatalities were recorded in the year under review;
however shortly after the year end five employees were tragically killed in a
fall-of-ground incident at Marikana`s 4 Shaft. Since this accident, further
safety initiatives have been agreed with the Department of Mineral Resources
and are currently being implemented at Marikana. Further details of these
additional safety measures are available in the Q4 2010 quarterly report.
Production
Total tonnes produced decreased by 15% to 2.2 million tonnes. This was
comprised of 1.5 million tonnes from underground and 714 thousand tonnes from
the open pit. Production from the Marikana open pit operation declined by 42%
and was compensated to a large extent by an 8% increase in volumes from
underground, in line with the mine plan. The Marikana open pit is scheduled to
close before the end of this calendar year. Underground production was
negatively affected by the illegal two-week strike that occurred in August
2009 and by geological losses caused by the intersection of an unusually high
number of potholes. The average head grade reduced to 2.65 g/t compared to
2.84 g/t in the previous year. Recoveries, however, improved from 67% to 72%.
As a result of all these factors, total PGM production decreased 14% year-on-
year to 135,418 4E ounces (Aquarius attributable: 67,709 4E ounces).
Marikana: Metal in concentrate produced (PGM ounces)
Year Pt Pd Rh Au PGMs (4E) PGMs (4E)
Ended attributable
June 82,523 38,226 13,863 806 135,418 67,709
2010
June 97,203 43,618 16,166 950 157,938 78,969
2009
Revenue
The average realised PGM basket price for the year increased by 19 % to $1,228
per 4E ounce. This together with an improved cost performance resulted in a
24% increase in mine revenue to R1,189 million for the year (Aquarius share:
R595 million). The cash margin for the year rose to 19%, compared to -10% in
2009.
Operating Costs
Cash cost per ROM tonne increased by 6% to R434, an increase below general
South African mine inflation caused by the move to more cost-effective
underground mining together with an improvement in the strip ratio at the open
pit late in the year. Consequently, cash costs per PGM ounce increased by 7%
to R7,133 per 4E ounce.
Marikana: Operating Costs
Rand (4E) per Rand (6E) per Rand (6E)
ounce ounce(Pt+Pd+Rh+Ir+Ru+Au) per ouncenet
(Pt+Pd+Rh+Au) of by-
products
(Ni&Cu)
FY 2010 7,133 5,887 5,695
Capital Expenditure
Stay-in-business capital expenditure at Marikana for the 2010 financial year
was R761 per 4E ounce.
Contractor dispute with Moolman Mining
The losses anticipated by AQPSA in respect of the original Marikana project at
the time of the recission of the contract with Moolman Mining have been
successfully mitigated, and AQPSA has consequently recently withdrawn its
damages claim against Moolman Mining and Brian Wilmot. However, the claim by
AQPSA for recission of the contract remains unaffected.
As disclosed in prior announcements, this claim and Moolman Mining`s remaining
counterclaims are to come to trial in the near future. The trial is expected
to commence on 23 August 2010.
An announcement concerning the outcome will be made at the appropriate time.
Everest Platinum Mine
Safety, Health and Environmental
The 12 month rolling DIIR for the period was 0.31, and no fatalities were
recorded during the year.
Re-establishment Project and Production
At the year end, Phase 2 of the re-establishment project had progressed well
with 95% of the necessary work completed.
The establishment of permanent underground services, the reclamation of
infrastructure, and the equipping of declines and strike sections have all
been completed. The completion of this infrastructure resulted in early
delivery of ore from underground. Together with approximately 85,000 tonnes of
opencast ore, a total of approximately 189,000 tonnes were hoisted during the
year, most of which was mined in the final quarter of the year.
The processing plant was recommissioned in May 2010 with 150,279 tonnes
processed for the year at a head grade of 3.09 g/ton. A total of 8,496 4E
ounces (all attributable to Aquarius) were produced at a recovery rate of 57%.
The recovery was negatively affected by the initial open pit material which
was oxidized, and by challenges experienced with the plant PLC system during
re-commissioning.
The overland conveyor belt and chairlift is 95% complete with final touches
still being applied. Work is scheduled to be completed at the end of July
2010. Work at the Valley box cut also commenced during the final quarter. Box
cut excavation and access road construction is in progress, with completion
targeted for the end of August 2010.
Construction of the Chromite Spiral Plant was completed at the end of May and
commissioning was completed at the end of June. The Spiral Plant is currently
running within the designed criteria.
Everest: Metal in concentrate produced (PGM ounces)
Year Pt Pd Rh Au PGMs (4E) PGMs (4E)
Ended attributable
June 5,098 2,655 660 84 8,496 8,496
2010
June 37,643 19,365 6,499 562 64,068 64,068
2009
Revenue
Everest is in early ramp-up and as a result the financial metrics pertaining
to it are not representative of steady-state or mine plan production, and
comparatives with prior years are not meaningful. The average realised PGM
basket price for period in which Everest was operating in May and June 2010
was $1,321 per 4E ounce. Mine revenue was R75 million for the year, and the
cash margin was -4%.
Operating Costs
Cash cost per ROM tonne was R517 and per PGM ounce was R9,150 per 4E ounce.
These costs are expected to improve materially as Everest ramps up.
Everest: Operating Costs
Rand (4E) per Rand (6E) per Rand (6E) per
ounce ounce(Pt+Pd+Rh+Ir+Ru+Au) ouncenet of by-
(Pt+Pd+Rh+Au) products
(Ni&Cu)
FY 2010 9,150 7,899 7,762
Capital Expenditure
The total re-establishment project capital (both Phase 1 and Phase 2 as
previously announced) amounts to R265 million, and project expenditure to date
is within budget, at a total of R217 million for the year. On-mine capital
projects expenditure amounted to R 30.3 million for the year, mainly for the
construction of the Chrome Spiral plant (R21.2 million), and also for the re-
establishment of the main decline belts (outside the scope of the re-
establishment project) and the Hoogland Environmental Impact Assessment study.
MIMOSA INVESTMENTS (Aquarius Platinum 50%)
Mimosa Platinum Mine
Safety
The DIIR for the year improved to 0.07 from 0.10 in the previous year. No
fatalities were recorded.
Production
Production from underground operations increased slightly to 2.1 million
tonnes. The average plant head grade decreased slightly from 3.60 g/t to 3.59
g/t. Recoveries improved from 74% in the prior year to 76% in 2010, and this
resulted in PGM production for the year increasing by 11% to 199,625 4E ounces
(Aquarius attributable: 99,812 ounces).
Mimosa: Metal in concentrate produced (PGM ounces)
Year Pt Pd Rh Au PGMs (4E) PGMs (4E)
Ended attributable
Aquarius
June 101,241 76,603 8,078 13,702 199,625 99,812
2010
June 91,520 69,423 7,170 11,909 180,022 90,011
2009
Revenue
The average PGM basket price for the year was 7% higher at $993 per 4E ounce.
This together with higher production resulted in a 43% increase in mine
revenue to $252 million (Aquarius share: $126 million). The cash margin for
the year was 48%.
Operating Costs
Cash costs per ROM tonne increased by 23% to $53 per tonne. Cash costs per
PGM ounce also increased by 22% to $610 per 4E ounce primarily as a result of
the continuing effects of the implementation of the multi-currency regime
(effectively the US dollarisation of the Zimbabwe economy). After by-product
credits, cash costs were $284 per PGM ounce.
Mimosa: Operating Costs
$ (4E) per ounce $ (6E) per $ (6E) per
(Pt+Pd+Rh+Au) ounce(Pt+Pd+Rh+Ir+Ru+Au) ouncenet of by-
products (Ni&Cu)
FY 610 579 284
2010
Capital Expenditure
Development capital expenditure of $18 million was spent during the year,
largely on completing the Wedza Phase 5 expansion. Stay-in-business capital
expenditure amounted to $110 per 4E ounce for the year.
AQUARIUS PLATINUM (SA) CORPORATE SERVICES (PTY) LTD
Chromite Tailings Retreatment Plant (CTRP) (Aquarius Platinum 50%)
Safety, Health and Environmental
CTRP recorded a DIIR of 0 for the year.
Production
Tonnes processed increased by 19% to 293,000 tonnes. However, the average head
grade fell 3% to 2.28 g/t for the year compared to 2.34 g/t in the previous
year, and recoveries deteriorated from 38% in the prior year to 30% in 2010.
This was largely as a result of a deterioration in the quality of plant
feedstock. As detailed in the Q3 and Q4 quarterly reports, CTRP has now
secured additional sources of tailings to process. As a result of these
factors total PGM production in the 2010 financial year fell 6% to 6,399 4E
ounces (Aquarius attributable: 3,200 ounces).
CTRP: Metal in concentrate produced (PGM ounces)
Year Pt Pd Rh Au PGMs (4E) PGMs (4E)
Ended attributable
June 3,892 1,420 1,074 13 6,399 3,200
2010
June 4,145 1,512 1,151 15 6,824 3,412
2009
Revenue
The average PGM basket price for the year was 5% higher at $1,301 per 4E
ounce, and as a result of this and strong by-product revenues, total revenue
rose 79% to R50 million (Aquarius attributable: R25 million). The cash margin
for the year increased to 49% from 26%.
CTRP: Operating Costs
Cash costs per PGM ounce for the year increased 32% to R3,951 per 4E ounce.
CTRP: Operating Costs
Rand 4E per ounce Rand 6E per Rand 6E per
(Pt+Pd+Rh+Au) ounce(Pt+Pd+Rh+Ir+Ru+Au) ouncenet of by-
products (Ni&Cu)
FY 3,951 2,727 2,643
2010
Capital Expenditure
Stay-in-business capital expenditure at CTRP for the 2010 financial year was
R128 per 4E ounce.
Platinum Mile (Aquarius Platinum 50%)
Safety, Health and Environmental
Platinum Mile recorded a DIIR of 0 for the year.
Production
The operation processed 7.0 million tonnes in 2010, 19% less than in 2009, and
the average head grade for the year was 0.58 g/t as compared to 0.67 in the
prior year. However, recoveries for the period increased to 15% from 9%. As a
result of these factors total PGM production for the period increased by 20%
to 19,670 4E ounces (Aquarius attributable: 9,835 ounces)
In the fourth quarter, the quantity and quality of tailings deteriorated
significantly, which has had a material impact on the performance and
profitability of Platinum Mile. Alternative strategies to boost metal output
are under investigation.
Platinum Mile: Metal in concentrate produced (PGM ounces)
Year Ended Pt Pd Rh Au PGMs (4E) PGMs (4E)
attributa
ble
June 2010 11,44 6,015 1,789 420 19,670 9,835
6
June 2009 9,484 5,069 1,471 329 16,353 8,176
Revenue
The average PGM basket price for the period increased 49% to $1,278 per 4E
ounce. Revenue for the period was R171 million (Aquarius attributable: R86
million). The cash margin for the period was 36%.
Platinum Mile: Operating Costs
The average cash cost per PGM ounce for the period was R5,618 per 4E ounce.
Platinum Mile: Operating Costs
Rand 4E per ounce Rand 6E per Rand 6E per
(Pt+Pd+Rh+Au) ounce(Pt+Pd+Rh+Ir+Ru+Au) ouncenet of by-
products (Ni&Cu)
FY 5,618 4,843 4,497
2010
Capital Expenditure
Stay-in-business capital expenditure at Platinum Mile for the 2010 financial
year was R68 per 4E ounce.
RIDGE MINING LIMITED
Blue Ridge Platinum Mine (Aquarius Platinum - 50%)
Safety, Health and Environmental
Regrettably, three fatalities occurred at the Blue Ridge mine during the 2010
financial year, one in December 2009 and two in separate incidents during June
2010. These were the only fatalities at Aquarius operations during the year
under review. The circumstances of these fatalities were not acceptable. The
12-month rolling average DIIR for the year also deteriorated to 1.86 from 1.26
in the 2009 financial year. As a result senior management personnel changes
have been implemented and a safety review and review of the Blue Ridge mine
plan are underway, as announced in the Q4 quarterly report.
Following the two fatalities that occurred during June a decision was taken by
Aquarius to halt all operations at the Blue Ridge mine for a two week period,
during which time all employees were retrained. All codes of practice, safe
operating procedures and base line risk assessments were reviewed. All
employees were taken through a "Stop Think" behaviour program which included
an industrial theatre performance and a workshop on the importance of
reporting injury incidence. Staged mock ups were erected showing the dangers
associated with 10 cardinal rules of safety. The section 54 suspension which
was issued was lifted on 25 June and mining recommenced on 29 June.
Production
Blue Ridge was acquired by Aquarius in July 2009. The mine remains in project
phase and all revenue and expenditure are capitalised. 711,000 tonnes were
mined from underground at Blue Ridge in 2010. The average head grade for the
year was 2.36 g/t and recoveries for the period were 71%. Total PGM production
for the year was 58,617 4E ounces (Aquarius attributable: 29,309 ounces)
Blue Ridge: Metal in concentrate produced (PGM ounces)
Year Ended Pt Pd Rh Au PGMs (4E) PGMs (4E)
attributa
ble
June 2010 35,17 17,34 5,525 573 58,617 29,309
9 0
Revenue
The average PGM basket price for the year was $1,183 per 4E ounce.
Update on review of Blue Ridge business plan
As set out in the Q4 2010 quarterly report, the shareholders of the Blue Ridge
mine (Aquarius and Imbani Platinum) are now in the process of finalising a
substantially revised Life of Mine business plan to optimise the operation
with an ongoing focus on safe mining operations. Several deficiencies in the
mine design as it currently stands have been identified and require
addressing. The fatality that occurred in December 2009 did so partly as a
result of the incompetency of the hanging wall above the original planned
mining cut (the so-called "sweet cut"). This required the company to abandon
the sweet cut, which caused the plant head grade to deteriorate and also
resulted in larger volumes of ore and waste from the mine. This in turn caused
bottlenecks in the plant which need to be resolved. The mine design itself is
not optimal, with key infrastructure not installed or requiring upgrade and a
second decline and third access point not established. The Blue Ridge orebody
is also reasonably geologically complex and the current mine design does not
allow for sufficiently high development rates and the associated proposed
stoping rates. Blue Ridge is located in an area which has not historically had
much of a mining industry, and as a result the available workforce is less
skilled and requires higher levels of training.
This has necessitated the initiation of a fundamental redevelopment programme
at the mine, which is expected to run for a 10 to 12 month period. This
optimisation programme will focus on mine access, ore and waste mass flows. It
will provide for a third mine access point and reinstates the construction of
a second decline. Underground waste surge capacity infrastructure and
aggressive on- and off-reef development will also be provided for. The
redevelopment programme is focused on the efficient and sustainable operation
of the mine in the medium and long term.
Optimisation of the mine may necessitate the termination of production at Blue
Ridge for up to seven months. This will provide a period to be used
exclusively for the implementation of fundamental mining infrastructure
alterations and key development initiatives on the mine. It is believed that
this option will prove the most cash-efficient. Blue Ridge will continue to be
treated as a project with costs capitalised for accounting purposes throughout
this process. Since the Q4 quarterly report was released Aquarius has done
further analysis and is convinced that halting production as aforesaid is the
most sensible option, particularly in light of the lower Rand basket price
over the past three months. It must be noted that this plan has not yet been
agreed by Imbani Platinum and their funders.
If the proposed optimisation plan for Blue Ridge is approved by its
shareholders and implemented as described above, the expected net additional
contribution that is likely to be required from Aquarius is approximately $20
million (depending on metals prices up until termination), which will be used
for capital and operating expenditures, and debt service in terms of current
debt schedules. This is in addition to the approximately R300 million already
committed to Blue Ridge by Aquarius in terms of the acquisition in July 2009.
It is proposed that the mine will have a capacity of 160,000 tonnes per month
on re-opening, equivalent to approximately 140,000 4E ounces per year.
CORPORATE MATTERS
US Dollar convertible bond offering and repayment of Rand convertible bond
During the 2010 financial year 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 (which may be adjusted for dividends paid), 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 were intended to 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.
On 18 January 2010, $101 million of the Company`s cash balance was used to
retire the Company`s existing R650 million convertible bonds and the 15%
premium as aforesaid. The early redemption of the company`s Rand convertible
notes inclusive of the borrowing costs and the 15% premium were accounted for
in the half yearly accounts to 31 December 2009.
AQPSA Appointments
Appointment of Managing Director of Aquarius Platinum (South Africa) (Pty) Ltd
("AQPSA")
Mr Anton Lubbe has been confirmed in the role of Managing Director of AQPSA,
with effect from 1 August 2010. Mr Lubbe replaces Hugo Holl, who resigned in
March for personal reasons. Mr Lubbe was previously Operations Director for
Aquarius` Western Limb Operations, and has been acting as Managing Director of
AQPSA since Mr Holl`s departure. The Board thanks Mr Holl for his contribution
to the business during his years at AQPSA.
Mr Lubbe has 29 years of mining experience, with exposure to gold, platinum,
chrome and copper. He has 10 years of experience as a General Manager, three
years as Divisional Director New Business for DRDGOLD, and three years
contracting experience as Operations Director of JIC (Mining). He also served
on the boards of DRDGOLD and its subsidiaries, and Westdawn Investments
(Trading as JIC Mining). He joined AQPSA in October 2008.
Other AQPSA appointments
Paul Smith has been appointed Director: New Business, Projects and Long-Range
Planning, a new AQPSA Board position. He transfers into AQPSA from Aquarius
Corporate Services (South Africa), a Group company that is due to be absorbed
into AQPSA in due course.
Mkhululi Duka has been appointed as Director: Human Capital, a new AQPSA Board
position. Prior to this appointment he was General Manager: Human Resources
and Transformation, based at Kroondal.
Abraham van Ghent has been appointed as Senior General Manager - Operations,
an AQPSA Executive position responsible for operations on all AQPSA managed
mines in South Africa. Prior to this appointment he was General Manager:
Kroondal. A new General Manager for Kroondal will be appointed in due course.
Aquarius appointment
Gavin Mackay was appointed as Business Development & Communications Executive
in February 2010, based in London. A lawyer by training, he previously held a
similar position at Ferrexpo plc, prior to which he was an investment banker
with JPMorgan Cazenove Limited in London.
Safety Initiatives
Subsequent to the end of the 2010 financial year, a multiple fatal accident
tragically claimed the lives of five employees in a single fall-of-ground
incident in 4 Shaft at Aquarius` Marikana Mine near Rustenburg in South
Africa. The ensuing events have been set out in detail in a series of public
announcements issued by the Company during July 2010, and summarised in full
in the Q4 2010 quarterly report.
Following this accident, the Company (along with other mining companies using
the same bord-and-pillar mining method as Aquarius) was instructed by the
Department of Mineral Resources (DMR) to present action plans to move to more
safe and conservative mining methods. Aquarius duly presented action plans in
respect of Marikana 4 Shaft to the DMR on Thursday 22 July, and these were
mutually agreed. Aquarius is currently rolling these new measures out at its
Kroondal and Marikana mines, while it continues to review its safety practices
at the Everest and Blue Ridge mines. A summary of the current generally
accepted safety design methodology for mines in the Bushveld Igneous Complex,
and the new initiatives and measures that AQPSA plans to implement in order to
modify it to world best practice are available in the Company`s Q4 2010
quarterly report.
More information on all the corporate matters can be found at
www.aquariusplatinum.com
Please refer to www.aquariusplatinum.com for the graph.
Aquarius Platinum LimitedIncorporated 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
Kofi Morna
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
Investor Relations
Gavin Mackay Business Development & Communications Executive
AQPSA Management
Stuart Murray Executive Chairman
Anton Lubbe Managing Director
Helene Nolte Director: Finance
Hulme Scholes Commercial Director
Paul Smith Director: New Business, Projects and Long-Range
Planning
Mkhululi Duka Director: Human Capital
Abraham van Ghent Senior General Manager: Operations
Graham Ferreira General Manager: Group Admin & Company Secretary
Wessel Phumo General Manager: Marikana
Gabriel de Wet General Manager: Engineering
Augustine Simbanegavi General Manager: Everest
Anthony Joubert General Manager: Blue Ridge
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 30 June 2010, the Company had in issue: 463,070,936 fully paid common
shares and 702,566 unlisted options.
Substantial Shareholders 30 June Number of Percentage
2010 Shares
Savannah Consortium 68,658,728 14.83
HSBC Custody Nominees 38,718,101 8.36
(Australia) Limited
JP Morgan Nominees Australia 34,587,626 7.47
Limited
National Nominees Limited 26,529,839 5.73
Chase Nominees Limited 25,729,854 5.56
Trading Information
ISIN number BMG0440M1284
ADR ISIN number US03840M2089Convertible Bond ISIN number XS0470482067
Broker (LSE) (Joint) Broker (ASX) Sponsor (JSE)
Liberum Capital Euroz SecuritiesLevel Rand Merchant Bank (A
LimitedCity Point, 1 14, The Quadrant1 division of FirstRand Bank
Ropemaker Street, William Street, Perth Limited) 1 Merchant Place
London, EC2Y WA 6000Telephone: +61 Cnr of Rivonia Rd and
9HTTelephone: +44 (0) (0) 8 9488 1400 Fredman Drive, Sandton 2146
20 3100 2000 Johannesburg South Africa
Bank of America
Merrill Lynch2 King
Edward StLondon, EC1A
1HQTelephone: +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
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
Glossary
A$ Australian Dollar
Aquarius or AQP 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 Chrome 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
DMR South African Government Department of Mineral Resources, 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
PlatMile Platinum Mile Resources (Pty) Ltd
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 Limited
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
Date: 12/08/2010 08:42:44 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
