| Thu 28 Apr 2011, 8:26 | | AQP - Aquarius Platinum Limited - Third quarter 2011: financial and |
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AQP
AQP
AQP - Aquarius Platinum Limited - Third quarter 2011: financial and
production results to 31 March 2011
Aquarius Platinum Limited
(Incorporated in Bermuda)
Registration Number: EC26290
Share Code JSE: AQP
ISIN Code: BMG0440M1284
THIRD QUARTER 2011: FINANCIAL AND PRODUCTION RESULTS TO 31 MARCH 2011
Highlights
- Attributable production increased by 18% year-on-year to 122,213 PGM ounces
- Average PGM Dollar prices improved through quarter - platinum up 6%,
palladium up 17% and rhodium up 5%
- The Rand was stable against the Dollar on average, weakening by 1%
- On-mine EBITDA for the quarter of $76.6 million
- Net operating cash flow of $60.5 million
- Net profit after tax for the quarter of $25.3 million, despite net foreign
exchanges losses of $7.6 million for the quarter
- Everest ramp-up proceeding as planned and Blue Ridge redevelopment
continuing
- Afarak transaction concluded shortly after quarter-end
Q3 2011 Operating Results Summary
Kroonda Marikan Everest Blue Mimosa CTRP Plat.
l a * Ridge + Mile
4E PGM
Production
Total 95,731 23,927 27,737 6,671 51,255 1,270 10,09
(100% 5
basis)
Attributab 47,866 11,963 27,737 3,336 25,628 635 5,048
le
4E Basket
Price
R/oz 10,859 10,792 10,634 11,020 - 11,66 10,34
1,529 3 2
$/oz 1,559 1,549 1,526 1,548 1,365 1,674 1,493
Cash Costs
(4E basis)
R/oz 6,578 8,465 6,907 - - 7,742 3,755
$/oz 944 1,215 991 - 725 1,111 538
Cash 31 15 35 - 58 9 60
Margin (%)
Stay-in-
Business
Capex
R/oz 967 900 1,158 3,624 - - 664
0
$/oz 139 129 166 520 162 - 95
* Everest is in ramp-up + Blue Ridge is in the
process of redevelopment
Commenting on the results, Stuart Murray, CEO of Aquarius Platinum said:
"The third quarter of the financial year, which incorporates the Christmas
and New Year holidays, is historically a weaker one. This past quarter saw
rather high absenteeism following the breaks but has also been further
affected by a marked increase in so-called `Section 54` stoppages across the
industry in South Africa. Aquarius` South African operations were not immune
to this reality, and production was somewhat impacted.
Despite these issues, I am pleased by the efforts of all to limit these
impacts. Mimosa had another strong production quarter. Cash costs in South
Africa increased quarter on quarter largely as a result of the effect of
lower production, and should improve to more usual levels during the next
quarter as production increases again.
The quarter under review also saw some notable successes, with no lost-time
injuries at all being recorded at either Mimosa or Marikana and a marked
improvement in the fortunes of Platinum Mile. We also closed the Afarak
transaction shortly after the period end, which we believe enhances the
strategic position of Aquarius.
The volatility in the Rand basket price is uppermost on my mind as we head
towards our next financial year. The improving Dollar PGM prices are welcome,
and Mimosa benefits from this, however in South Africa the fluctuations of
the received basket price in Rand terms make planning for projects somewhat
difficult, and greater focus will be going into ensuring capital projects
earn acceptable returns."
Production by mine
PGMs Quarter ended
(4E)
Mar 2011 Dec 2010 % Mar 2010 %
Change Change
Kroondal 95,731 119,444 (20) 103,071 (7)
Marikana 23,927 32,831 (27) 35,147 (32)
Everest 27,737 25,144 10 - -
Blue 6,671 - - 15,338 (57)
Ridge
Mimosa 51,255 47,023 9 49,008 5
CTRP 1,270 1,451 (12) 1,268 0
Platinum 10,095 4,121 145 2,737 269
Mile
Total 216,686 230,014 (6) 206,569 5
Production by mine attributable to Aquarius
PGMs Quarter ended
(4E)
Mar 2011 Dec 2010 % Mar 2010 %
Change Change
Kroondal 47,866 59,722 (20) 51,536 (7)
Marikana 11,963 16,415 (27) 17,574 (32)
Everest 27,737 25,144 10 - -
Blue 3,336 - - 7,669 (57)
Ridge
Mimosa 25,628 23,512 9 24,504 5
CTRP 635 725 (12) 634 0
Platinum 5,048 2,061 145 1,369 269
Mile
Total 122,213 127,579 (4) 103,286 18
Aquarius Group attributable production (PGM ounces) to 31 March 2011
(Please refer to www.aquariusplatinum.com for the graph)
Market Summary
Metals prices
Platinum and palladium prices rose strongly in January in response to an
improved global economic outlook and healthier auto manufacturing data, and
continued to strengthen slowly in dollar terms throughout most of February.
Both metals weakened considerably in late February and March, however, in
response to market shocks largely unrelated to the PGMs. This indicates that
the PGM market has not yet reached fundamental demand-supply balance and
prices remain driven to a large extent by investment demand, suggesting
ongoing volatility in the short term. Fundamental demand continues to improve
steadily, however, indicating a strongly positive outlook for these metals in
the medium term. The average platinum price rose by 6% and that of palladium
rose 17%. Rhodium and gold rose by 5% and 1% on average respectively.
Platinum closed the quarter broadly flat at $1,773 per ounce, while palladium
fell by 3% to $772 per ounce over the same period. The rhodium price fell 2%
to $2,375 per ounce over the quarter and gold rose 2% to $1,434 per ounce.
Rand-Dollar exchange rate
The average Rand-Dollar exchange rate for the quarter was stable, falling by
1% from R6.91 to R7.01 to the US dollar and belying volatile intra-quarter
fluctuations. The Rand weakened sharply in January as positive global
macroeconomic data briefly rendered the Rand carry trade less attractive
relative to other investment options. This trend was reversed in February and
March as uncertainty returned to the market, exacerbated by the Japanese
tsunami and ensuing nuclear crisis. The Rand closed the quarter down 2% at
R6.75 to the Dollar.
The effect of the Rand on Rand basket prices was muted as the average Rand-
Dollar exchange rate did not vary materially quarter-on-quarter. Average PGM
basket prices strengthened at all operations in both currencies over the
quarter, driven by higher Dollar PGM prices in January and February. The US
Dollar weighted average group basket price increased by 7% to $1,507 per 4E
PGM ounce compared to the previous quarter, while the weighted average basket
price at the South African operations was $1,545 per PGM ounce. The average
South African basket price was R10,832 per PGM ounce for the period, a 7%
increase compared to the prior quarter.
12-month individual PGM prices 12-month PGM basket prices to
to March 2011 March 2011
(US$/oz) (US$ and ZAR per PGM basket
ounce)
12-month Rand-Dollar exchange rate to March 2011
(ZAR/US$)
(Please refer to www.aquariusplatinum.com for the graph)
Average PGM basket prices achieved at Aquarius operations
US$ per Quarter ended
PGM
ounce
(4E)
Mar 2011 Dec 2010 % Mar 2010 %
Change Change
Kroondal 1,559 1,457 7 1,328 17
Marikana 1,549 1,455 6 1,328 17
Everest 1,526 1,427 7 - -
Blue 1,548 - - 1,313 18
Ridge
Mimosa 1,365 1,207 13 1,074 27
CTRP 1,674 1,559 7 1,456 15
Platinum 1,493 1,447 3 1,308 14
Mile
Weighted 1,507 1,405 7 1,267 19
Avg.
Financials
Aquarius recorded an improved financial result over the previous
corresponding period (pcp), with a net profit after tax of $25.3 million (5.5
cents per share) for the quarter. On-mine EBITDA of $76.6 million was 66%
higher compared to the pcp, March 2010. The increase in on-mining earnings
was driven by increased production up 24% on the pcp.
EBITDA, Profit & Production Comparison by corresponding quarters
Quarter Quarter Movement FY2010
ended ended
March 2011 March
2010
EBITDA $76.6M $46.1M $30.5M $145.0M
Net profit (loss) after tax $25.3M $23.2M $2.1M $27.8M
Revenue $183.0M $128.8M $54.2M $472.2M
PGM ozs production (in 118,877* 95,617* 23,260 393,341*
operation)
Average PGM basket price per $1,519 $1,318 $201 $1,199
ounce achieved
* excludes PGM ounces of Blue Ridge production capitalised.
On-mine EBITDA for the quarter of $76.6 million included $6.1 million foreign
exchange gains on sales as a result of the US Dollar regaining some value
over the Rand during the quarter. These foreign exchange gains (at mine
level) were eroded by foreign exchange losses of $13.7 million recorded by
the group on the revaluation of net monetary assets against a stronger US
Dollar, resulting in net foreign exchange losses to the group of $7.6 million
for the quarter. To the extent that the Dollar depreciates against these
currencies, some of these losses which are unrealised may reverse.
Revenue (PGM sales and including interest income of $2.4 million) was up 42%
to $183.0 million from $128.8 million compared to the pcp. Revenue was
inclusive of positive sales adjustments of $8.5 million due to the flow-
through of improved PGM prices experienced during the quarter. This resulted
in higher revenue of $1,519 per PGM ounce compared to $1,318 per PGM ounce in
the March 2010 quarter.
Quarter ended
Mar `10 June`10 Sep `10 Dec`10 Mar `11
Revenue $116.5m $136.0m $145.9m $173.8m $174.5m
PGM sales adjustments $12.3m $1.3m $3.6m $12.9m $8.5m
Total revenue $128.8m $137.3m $149.5m $186.7m $183.0m
Production for the quarter was 24% higher at 118,877 PGM ounces from 95,617
PGM ounces in the pcp. The increase in production was from the recently
recommissioned Everest mine which performed extremely well producing 27,737
PGM ounces in the quarter whilst still in ramp up phase. This was a credible
performance given the lower number of shifts worked in the quarter due to the
Christmas holiday break.
Quarter ended
Attributable ounces Mar `10 June`10 Sep `10 Dec `10 Mar `11
4PGE production 95,617 105,373 119,346 127,579 118,877
Blue Ridge 7,669 5,101 4,046 - 3,336
Total production 103,286 110,474 123,392 127,579 122,213
Total cash cost of production was higher at $110 million in line with the 24%
increase in production. On a unit cost basis (PGM ounce), costs at the South
African operations in Rand terms were 9.9% higher quarter-on-quarter and 8.0%
higher compared to March 2010. In Dollar terms, overall group unit costs
increased 5.5% quarter-on-quarter and 22.2% compared to March 2010 due
materially to Rand strength against the US Dollar. Increased unit costs
quarter-on-quarter generally reflects inflationary pressures and the impact
of the fixed nature of mine costs measured against lower production levels
for the quarter.
Amortisation and depreciation were higher at $15.0 million from $10.5 million
in the pcp, in line with the 24% increase in production.
Administrative costs of $3.7 million are in line with quarterly trends.
Finance costs for the quarter of $8.7 million comprised interest expense of
$5.6 million for convertible notes, $0.3 million pipeline finance, amortised
borrowing costs $0.4 million, $1.6 million on the unwinding of the rehab
provision and $0.8 million in fees on the restructure of the Ridge debt
facilities.
Group cash remained strong at $384 million at the end of the quarter.
Net operating cash flow for the quarter of $60.5 million comprised $181
million from sales, $117 million paid to suppliers, income tax paid $6
million and net finance income of $2 million. Development and capital
expenditure for the quarter was $24.4 million with financing cash outflows
comprising the payment of Aquarius` dividend of 4 cents per share to Aquarius
shareholders of $18.5 million.
Group cash at 31 March 2011 was held as follows:
AQP $ 291 million
AQPSA $ 48 million
ACS(SA) $ 2 million
Mimosa $ 34 million
Platmile $ 2 million
Ridge Mining $ 7 million
Total $ 384 million
Aquarius Platinum Limited
Consolidated Income Statement
Quarter ended 31 March 2011
$`000
Note Quarter Nine Months Financial
Ended Ended Year Ended
31/03/11* 31/03/11* 30/06/10
Attributable Production 365,801 393,341
(PGM Ounces) (before Blue 118,877
Ridge production)
Revenue (i) 182,998 519,150 472,220
Cost of sales (including (ii) (124,640) (367,459) (349,952)
D&A)
Gross profit 58,358 151,691 122,268
Other income 273 561 1,588
Administrative costs (iii) (3,739) (10,352) (15,243)
Foreign exchange (iv) (7,590) 58,612 (4,846)
gain/(loss)
Finance costs (v) (8,711) (24,079) (25,750)
Settlement of contractor - (7,810) -
dispute
Fair value movement in - - 6,084
derivative liability
Loss on early redemption - - (26,920)
of convertible note
Transaction and - - 1,248
acquisition costs
associated with Ridge
Mining, net of discount on
acquisition
Profit before income tax 38,591 168,623 58,429
Income tax expense (13,309) (49,061) (30,656)
Net profit attributable to 25,282 119,562 27,773
equity holders of the
parent
Earnings per share (basic 5.46 25.81 6.09
- cents)
*Unaudited
Notes on the Consolidated Income Statement
(i) Revenue for the quarter was higher compared to the pcp in line with
increased production and higher pgm prices.
(ii) Cost of sales per PGM ounce increased as a result of inflationary
pressures and lower production.
(iii) Administration and other costs of $3.7 million is inclusive of annual
bonus payments for FY2010.
(iv) Foreign exchange losses largely attributable to positive revaluation
adjustments on intergroup debt
(v) Finance costs included interest expensed of $4.2 million on group debt,
non-cash interest accretion on the convertible note of $2.5 million and
unwinding of the rehabilitation provision of $1.6 million.
Aquarius Platinum Limited
Consolidated Cash Flow Statement
Quarter ended 31 March 2011
$`000
Quarter Nine Financial
Ended Months Year Ended
Ended
Note 31/03/11* 31/03/11* 30/06/10
Net operating cash (i) 60,464 107,524 112,780
inflow
Net investing cash (ii) (24,399) (83,787) (79,591)
outflow
Net financing cash (iii) (19,080) (44,895) 195,898
inflow/(outflow)
Net 16,985 (21,158) 229,087
increase/(decrease)
in cash held
Opening cash balance 368,459 381,734 153,600
Exchange rate (1,103) 23,765 (953)
movement on cash
Closing cash balance 384,341 384,341 381,734
* Unaudited
Notes on the Consolidated Cash Flow Statement
(i) Net operating cash flow for the March quarter includes $181 million
inflow from sales, $117 million paid to suppliers, tax paid of $6 million and
net finance income of $2 million.
(ii) Includes development and plant and equipment expenditure on AQPSA,
Mimosa and capex and opex capitalised on Blue Ridge.
(iii) Includes dividend paid of $18 million.
Aquarius Platinum Limited
Consolidated Balance Sheet
At 31 March 2011
$`000
$`000
As at As at
31/03/11* 30/06/10
Note
Assets
Cash assets 384,341 381,734
Current receivables (i) 123,674 96,846
Other current assets (ii) 49,512 49,338
Property, plant and (iii) 319,875 272,117
equipment
Mining assets (iv) 504,139 425,882
Intangibles (v) 79,064 80,450
Other non-current (vi) 107,112 72,833
assets
Total assets 1,567,717 1,379,200
Liabilities
Current liabilities (vii) 123,410 103,906
Non-current payables (viii) 5,458 4,631
Non-current interest- (ix) 247,959 238,289
bearing liabilities
Other non-current (x) 245,976 195,341
liabilities
Total liabilities 622,803 542,167
Net assets 944,914 837,033
Equity
Issued capital 23,162 23,154
Treasury shares (15,076) (14,264)
Reserves 690,224 664,041
Retained earnings 246,604 164,102
Total equity 944,914 837,033
* Unaudited
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 reflects Kroondal, Marikana, Mimosa, Everest and Ridge
mining (mining rights).
(v) Includes intangibles relating to goodwill and contract value acquired on
acquisition of 50% equity interest in Platinum Mile Resources (Pty) Ltd.
(vi) Includes recoverable portion of rehabilitation provision from Anglo
Platinum of $15 million, receivable from the Reserve Bank of Zimbabwe (RBZ)
of $28 million, receivable from outside shareholders of Blue Ridge and
Sheba`s Ridge of $44 million, investments in rehabilitation trusts of $17
million and investments held for resale of $3 million.
(vii) Includes creditors and other payables of $91 million, DBSA and IDC
loans at Blue Ridge of $30 million and tax payable of $2 million.
(viii) Includes rehabilitation obligations on P&SA1 and P&SA2 structures.
(ix) (Includes convertible notes of $245m and AQPSA / Ridge equipment leases
of $3 million.
(x) Includes deferred tax liabilities of $166 million and provision for
closure costs of $80 million.
Operating Review Summary (all numbers on 100% basis)
AQUARIUS PLATINUM (SOUTH AFRICA) (PTY) LTD (Aquarius Platinum - 100%)
P&SA 1 at Kroondal (Aquarius Platinum - 50%)
- Kroondal achieved 1 million fatality free shifts on 3 March 2011
- 12-month rolling average DIIR deteriorated to 0.77 per 200,000 man hours
from 0.74 in the previous quarter
- Production decreased by 20% to 1,401,000 tonnes
- Head grade improved from 2.63 g/t to 2.64 g/t
- Recoveries remained at 80%
- Volumes processed decreased by 20% to 1,410,000 tonnes
- Stockpiles at the end of the quarter totalled approximately 25,000 tonnes
- PGM production decreased by 20% to 95,731 PGM ounces
- Revenue decreased by 19% to R918 million compared to the previous quarter
due to lower production
- Mining cash costs increased by 20% to R446 per tonne, and costs per PGM
ounce by 20% to R6,578
- Kroondal`s cash margin for the period deteriorated from 42% to 31%
- K6 Project commenced on 26 July 2010 and the first decline blast was
carried out on 1 March 2011
P&SA2 at Marikana (Aquarius Platinum - 50%)
- 12-month rolling average DIIR improved to 0.50 per 200,000 man hours from
0.61 in the previous quarter
- No lost time injuries were recorded at Marikana during the quarter
- Production decreased by 33% to 412,000 tonnes; 335,000 from underground and
77,000 from open pit
- Head grade increased by 0.2% to 2.32 g/t
- Recoveries increased by 8% to 77%
- Volumes processed decreased by 33% to 419,000 tonnes
- PGM production decreased by 27% to 23,927 ounces
- Revenue decreased by 26% to R238 million compared to the previous quarter
due to lower production
- Mining cash costs increased by 24% to R483 per tonne, and costs per PGM
ounce by 14% to R8,465
- Marikana`s cash margin deteriorated from 24% to 15%
Everest Mine (Aquarius Platinum - 100%)
- Everest achieved 1 million fatality free shifts on 23 February 2011
- 12 month rolling DIIR increased to 0.35 per 200,000 man hours from 0.25 in
the previous quarter
- Production increased by 4% to 362,000 tonnes
- Head grade improved from 2.80 g/t to 2.86 g/t
- Recoveries increased from 81% to 83%
- Better recoveries due to the stabilisation of the plant after re-
commissioning
- Volumes processed increased by 5% to 361,000 tonnes
- PGM production increased by 10% to 27,737 PGM ounces
- Revenue increased by 11% compared to the previous quarter to R295 million
- Mining cash costs increased by 4% to R531 per tonne, and costs per PGM
ounce decreased by 1% to R6,907
- Everest`s cash margin increased from 34% to 35%
- Re-establishment project and production ramp-up remain in line with plan
AQPSA Operating costs per ounce
4E 6E 6E net of by-
products
(Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni&Cu)
Kroondal 6,578 5,377 5,216
Marikana 8,465 6,966 6,714
Everest 6,907 5,757 5,051
Update on impact of revised hangingwall support strategy
All capital equipment for installation of the new support system is in place
and the crews have been trained in its implementation. The direction of
mining is currently being altered to run oblique to the direction of the
natural rock joints. This had a short term impact in this quarter on the
available mining face length as new faces had to be established. In the long
term, hand drilling of support will be phased out concurrent with the roll
out of mechanised support rigs.
Capital expenditure
Ongoing capital expenditure has returned to normal operating levels but
project capital increased this quarter with the start of sinking operations
at K6 shaft.
Kroondal Marikana Everest
(R`000 unless Total Per 4E Total Per 4E Total Per 4E
otherwise stated) oz oz oz
Ongoing Infrastructure 53,219 556 15,179 634 32,109 1,158
Establishment
Project Capital 39,329 411 6,348 265 16,970 612
Mobile Equipment 13,505 141 - - 18,198 656
Total 106,052 1,108 21,526 900 67,277 2,426
RIDGE MINING LIMITED (Aquarius Platinum - 50%)
Blue Ridge Platinum Mine
- 12-month rolling average DIIR improved to 1.96 per 200,000 man hours
- Mine remained closed for redevelopment during the quarter
Update on redevelopment plan
The redevelopment project continued to progress through the quarter.
Infrastructure upgrading projects are underway, with an emphasis on ore
reserve creation. Individual projects include ore handling system upgrades,
utility provision upgrades and hygiene upgrades. Development for the quarter
was 1,927 metres resulting in a progressive developed ore reserve position of
2,462 metres.
During January the plant was temporarily re-commissioned in order to ensure
that it remains in a production-ready state for the commencement of stoping
operations. As a result some stockpiled material was processed during the
quarter, resulting in 6,671 PGM ounces being produced. This production
generated revenue of R64 million. Revenue and all expenditures continued to
be capitalised during the quarter.
In order to ensure the timely execution of the Blue Ridge redevelopment
project, Aquarius has funded 100% of the required capital expenditure for the
project and concluded an agreement with the financiers of Ridge Mining in
February 2011 in terms of which they agreed to a re-scheduling of the
interest bearing debt held by the Blue Ridge mine. As a result and in
accordance with agreements in place with Imbani Platinum ("Imbani"), the
other shareholder of the mine, Imbani`s ownership in Blue Ridge will be
diluted in compensation. This change in the shareholding structure of Blue
Ridge requires Competition Commission approval, and a further announcement
will be made in this regard once that has been obtained.
At current Rand basket prices of approximately R10,300 per PGM ounce, the
mine is forecast to remain marginal on a post operating and capital cash flow
basis. These PGM price levels, if sustained, may lead to a review of the
start-up date for continuous mining operations, currently scheduled for the
first quarter of the next financial year.
MIMOSA INVESTMENTS (Aquarius Platinum - 50%)
Mimosa Platinum Mine
- 12-month rolling average DIIR improved to 0.03 per 200,000 man hours from
0.17 in the previous quarter, with no lost-time injuries recorded
- Production increased by 3% to 577,506 tonnes
- Head grade improved by 1% to 3.63g/t
- Recoveries increased to 78% from 75%
- Volumes processed increased by 4% to 566,221 tonnes
- Stockpiles at the end of the quarter totalled approximately 158,478 tonnes
- PGM production increased by 9% to 51,255 PGM ounces
- Revenue increased by 39% to $95.9 million due to stronger PGM and base
metals prices
- Mining cash costs increased by 16% to $66 per tonne, and costs per PGM
ounce by 10% to $725, as a result of continuing poor ground conditions which
materially impacted mining efficiencies
- Stay-in-business capital expenditure was $162 per PGM ounce for the quarter
- Mimosa`s cash margin for the period grew from 55% to 58%
Operating cash costs per ounce
4E 6E 4E net of by-
(Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) products
(Ni, Cu & Co)
Mimosa 725 686 272
Indigenisation and Economic Empowerment Update
As disclosed at the time, the Minister of Indigenization and Economic
Empowerment issued a notice in March compelling all foreign owned mining
entities to submit within 45 days a plan showing how they intend to meet the
indigenization quota of 51%.
In terms of the notice, the 51% equity quota may be issued to five designated
entities namely:
- National Indigenization and Economic Fund;
- The Zimbabwe Mining Development Corporation;
- any company incorporated by the Zimbabwe Mining Development Corporation;
- A statutory sovereign wealth fund that may be created by law; or
- An employee or management or community share ownership scheme or trust.
Once the plan has been approved by the Minister, the implementation timeframe
is six months from the date of the notice. Discussions are ongoing in order
to find a position that will be compliant with the notice and beneficial to
stakeholders and shareholders will be immediately informed of any progress in
this regard.
TAILINGS OPERATIONS
Chromite Tailings Retreatment Plant (CTRP) (Aquarius Platinum - 50%)
- Material processed decreased 15% to 49,000 tonnes
- Head grade decreased to 3.13 g/t
- Recoveries decreased by 15% to 49%
- Production decreased to 1,270 PGM ounces
- Cash costs increased by 34% to R7,742 per PGM ounce
- Revenue was R11 million for the quarter
- The cash margin for the period was 9%, a decrease from 26% in the previous
quarter
Platinum Mile (Aquarius Platinum - 50%)
- Material processed decreased 5% to 1091 tonnes
- Head grade grew to 0.81 g/t
- Recoveries increased by 79% to 34%
- Production increased to 10,095 PGM ounces
- Cash costs decreased by 32% to R3,755 per PGM ounce
- Revenue was R95 million for the quarter
- The cash margin for the period was 60%, an increase from 37% in the
previous quarter
Operating cash costs per ounce
4E 6E 4E net of by-
(Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) products
(Ni, Cu& Co)
CTRP 7,742 5,358 5,280
Platinum 3,755 3,237 2,488
Mile
Statistical Information: Kroondal P&SA1
(Please refer to www.aquariusplatinum.com for the graph)
Statistical Information: Marikana P&SA2
(Please refer to www.aquariusplatinum.com for the graph)
Statistical Information: Everest
(Please refer to www.aquariusplatinum.com for the graph)
Statistical Information: Blue Ridge
(Please refer to www.aquariusplatinum.com for the graph)
Statistical Information: Mimosa
(Please refer to www.aquariusplatinum.com for the graph)
Statistical Information: Chrome Tailings Retreatment Plant
(Please refer to www.aquariusplatinum.com for the graph)
Statistical Information: Platinum Mile
(Please refer to www.aquariusplatinum.com for the graph)
CORPORATE MATTERS
Zimbabwean Indigenisation
As announced at the time and referred to above, the Zimbabwean Minister of
Youth, Indigenisation and Economic Empowerment published a statutory
instrument in the Zimbabwean Government Gazette on 28 March 2011, setting out
the requirements for the implementation of the provisions of the
Indigenisation and Economic Empowerment Act and its supporting regulations as
they pertain to the mining sector.
Discussions are ongoing in order to find a position that will be compliant
with the notice and beneficial to all stakeholders and shareholders will be
immediately informed of any progress in this regard.
Acquisition of Afarak Platinum (Pty) Ltd
Aquarius announced the acquisition of Afarak on 13 April, shortly after the
close of the third quarter. The purchase price for 100% of Afarak was
US$109.7 million, comprising US$70.2 million in cash and the remainder in
Aquarius shares. After the acquisition Aquarius holds 74% of Afarak directly
and Watervale (Pty) Ltd, a company in which Aquarius has a 47% stake with the
remainder held by Savannah Resources, Aquarius` BEE partner, holds the
remaining 26%.
Afarak`s only material assets are 100% of the mineral rights to Hoedspruit, a
farm on the Western Limb of the Bushveld Igneous Complex near Rustenburg and
a right to earn 50% of the mineral rights to Kruidfontein, a farm in the
northern part of the Western Limb. As disclosed previously, these two PGM-
bearing areas are strategically located close to existing platinum mining
operations and also significantly increase Aquarius` portfolio of PGM
resources.
More information on all corporate matters can be found at
www.aquariusplatinum.com
Aquarius Platinum Limited
Incorporated in Bermuda
Exempt company number 26290
Board of Directors
Nicholas Sibley Non-executive Chairman
Stuart Murray Chief Executive Officer
David Dix Non-executive
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
Mkhululi Duka Director: Human Capital
Abraham van Ghent Senior General Manager: Operations
Graham Ferreira General Manager: Group Admin & Company Secretary
Wessel Phumo General Manager: Kroondal
Jenkins Kroon Acting General Manager: Marikana
Augustine Simbanegavi General Manager: Everest
Anthony Joubert General Manager: Engineering
Radesh Sukhdeo General Manager: Process & Environmental
Dave Starley General Manager: Projects
Mimosa Mine Management
Winston Chitando Managing Director
Herbert Mashanyare Technical Director
Peter Chimboza Resident Director
Fungai Makoni General Manager Finance & Company Secretary
Platinum Mile Management
Richard Atkinson Managing Director
Paul Swart Financial Director
Issued Capital
At 31 March 2011, the Company had in issue: 463,241,295 fully paid common
shares and 452,171 unlisted options.
Substantial Shareholders 31 Number of Percentage
March 2011 Shares
Savannah Consortium 63,254,371 13.66
JP Morgan Nominees Australia 46,135,926 9.96
Limited
HSBC Custody Nominees 38,189,609 8.25
(Australia) Limited
National Nominees Limited 32,498,637 7.02
Chase Nominees Limited 25,268,975 5.45
Main Australian Securities Trading Information
Listing: Exchange (AQP.AX)
Secondary London Stock Exchange ISIN number
Listing: (AQP.L) BMG0440M1284
Secondary JSE Limited (AQP.ZA) ADR ISIN number
Listing: US03840M2089
Convertible Bond ISIN
number XS0470482067
Broker (LSE) (Joint) Broker (ASX) Sponsor (JSE)
Liberum Capital Euroz Securities Rand Merchant Bank
Limited Level 18 Alluvion (A division of
City Point, 1 58 Mounts Bay Road, FirstRand Bank
Ropemaker Street, Perth WA 6000 Limited)
London, EC2Y 9HT Telephone: +61 (0) 1 Merchant Place
Telephone: +44 (0) 8 9488 1400 Cnr of Rivonia Rd
20 3100 2000 and Fredman Drive,
Bank of America Sandton 2146
Merrill Lynch Johannesburg South
2 King Edward St Africa
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 Africa
Postal Address: PO Box 76575, Wendywood, 2144, South Africa.
Telephone: +27 (0)11 656 1140
Facsimile: +27 (0)11 802 0990
Aquarius Platinum Corporate Services Pty Ltd
100% Owned
(Incorporated in Australia)
ACN 094 425 555
Level 4, Suite 5, South Shore Centre, 85 The Esplanade, South Perth, WA 6151,
Australia
Postal Address: PO Box 485, South Perth, WA 6151, Australia
Telephone: +61 (0)8 9367 5211
Facsimile: +61 (0)8 9367 5233
Email: info@aquariusplatinum.com
For further information please visit www.aquariusplatinum.com or contact:
In Australia
Willi Boehm
+61 (0) 8 9367 5211
In the United Kingdom and South Africa
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
one of the Bushveld Complex
28 April 2011
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 28/04/2011 08:26:00 Produced by the JSE SENS Department.
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