| Thu 11 Aug 2011, 8:03 | | AQP - Aquarius Platinum Limited - Preliminary Full Year results to 30 June |
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AQP
AQP
AQP - Aquarius Platinum Limited - Preliminary Full Year results to 30 June
2011
Aquarius Platinum Limited
(Incorporated in Bermuda)
Registration Number: EC26290
Share Code JSE: AQP
ISIN Code: BMG0440M1284
PRELIMINARY FULL YEAR RESULTS TO 30 JUNE 2011
Key Points: Financial
- Revenue increased by 45% to $682.9 million (FY2010: $472.2 million)
- Mine operating net cash flow increased by 44% to $162.3 million (FY2010:
$112.8 million)
- Mine EBITDA increased by 40% to $203.2 million (FY2010: $145.1
million)
- Headline Earnings (before exceptional charges) increased more than
fivefold to $142.8 million (FY2010: $23.6 million)
- Headline EPS of 30.85 US cents per share
- Asset impairment of the Blue Ridge mine (non-cash) of $159.8 million
following cessation of operations
- Reported net loss of $10.4 million (US (2.25) cents per share) as a
result of Blue Ridge impairment
- Group cash balance at FY close of $328.1 million
- Final dividend of US 4 cents per share declared, taking full year
dividend to US 8 cents per share (FY2010: US 6 cents)
Key Points: Operational
- Group attributable production increased by 15% to 487,404 PGM ounces for
the full year
- US Dollar PGM prices increased materially, but this benefit more than
offset in South Africa by a strengthening Rand-US Dollar exchange rate
- Weighted average on-mine unit cash costs in South Africa increased by
12% in Rand terms
- Mimosa on-mine unit cash costs up 14% as a result of challenging ground
conditions and significant industry collective bargaining wage
settlements for unionised employees
- Everest mine ramping up successfully
- Marikana open pit mined out and closed during the year
- Operations suspended at Blue Ridge mine and Marikana`s 1 Shaft due to
low Rand PGM prices
Key Points: Strategic
- Global industry best practice hangingwall support methodology
implemented across South African mines following tragic Marikana
multiple fatal accident in July 2010
- Acquired Afarak Platinum for $109.7m to facilitate potential mine life
extensions at Kroondal and Marikana
- Agreed to acquire Booysendal South for approximately $180m to extend
mine life and expand production at Everest
Afarak and Booysendal South transactions to increase Aquarius PGM
resources by approximately 50%
- Agreed to acquire a further 41.7% of Platinum Mile for approximately
$17m, raising ownership in that asset to 91.7%
Commenting on the results, Stuart Murray, CEO of Aquarius Platinum said:
"On balance the 2011 financial year was an improved one for Aquarius, though
reflective of the volatile times in which we live. Strengthening PGM prices
and a briefly weaker Rand in the first half of the year were cause for the
optimism I spoke about at the half year results and which proved to be
premature. The better market conditions together with strong operational
performances from our mines during that period set Aquarius up for a good
full year result. January brought with it the usual holiday-season
absenteeism, exacerbated by a material industry-wide increase in the number
of Section 54 safety stoppages imposed by the government regulator in South
Africa. Markets also began to falter. Together with some temporary
operational challenges at our South African mines in the final months of the
year, these factors impacted negatively on production and revenue in the
second half. Aquarius was nonetheless able to materially increase PGM
production and deliver an improved financial result this year. Everest was
the source of much of this production growth, and its continued ramp up will
provide further growth in the 2012 financial year. Mimosa also had yet
another record production year, despite difficult ground conditions in parts
of the mine.
Unit costs did increase during the year, but within expectations particularly
given the inflationary mining environment, the ramp-up status of Everest and
the oft-ignored effect of production volumes on our relatively large fixed
cost base.
The year was overshadowed by the terrible accident at Marikana in July 2010,
in the wake of which we have spared no effort or expense to improve
hangingwall support in our mines. Safety is and will remain an absolute
priority for Aquarius, at any cost.
On the corporate front, I am very pleased that we were able to consummate
several transactions which will in time be transformational for the company.
We have grown our resource base by approximately 50% during the year, and the
Booysendal South transaction in particular ensures the future of the Everest
mine and the Company for many years to come. The cessation of operations at
Blue Ridge and its resulting impairment is unfortunate, but I strongly
believe it was the right thing to do given the state of the PGM market.
Aquarius now has flexibility in its capital allocation decisions and we are
well-placed to weather and potentially benefit from the challenges that the
new financial year will surely bring."
Financial results: Year to 30 June 2011
Aquarius` Headline Earnings increased to $142.8 million in FY 2011 (FY 2010:
$23.6 million), a five-fold increase over FY 2010 supported by a 45% increase
in revenue and a 15% increase in production over FY 2010 (pcp). Consolidated
net results after tax (to IFRS) was a loss of $10.4 million (FY 2010: net
profit $27.8 million) following impairment of the Ridge assets due to the
Blue Ridge mine ceasing operations.
Operating results at mine level (Mine EBITDA) for the year of $203.2 million
was 40% higher compared to FY2010 following an increase of 85,236 PGM ounces
of production in the current year. The increased production, up 15%, was
derived mainly from the restart of the Everest mine.
The Directors have declared a final dividend of US 4 cents per share (2010: 4
cents) payable on 30 September 2011 to shareholders registered on 9 September
2011, recognising the company`s improved operational cash flow whilst being
cognisant of the current economic circumstances. This brings the total
dividend payable for the year ended 30 June 2011 to US 8 cents (2010: 6
cents).
Revenue (PGM sales, interest) for the year was $682.9 million, up 45% from
$472.2 million in the pcp. The increased revenue was a result of increased
production, up 85,236 PGM ounces and an 18% increase in the US Dollar PGM
basket price achieved for South African operations and a 29% increase in the
US Dollar price in Zimbabwe. Measured on a PGM ounce basis, group revenue
increased by 20% to $1,395 per PGM ounce from $1,164 per PGM ounce in the
pcp.
Group attributable mine production for the period was 487,404 PGM ounces. The
Group`s existing operations are expected to continue to increase production
in FY2012 to between 545,000 and 560,000 PGM ounces after allowing for the
temporary suspension of mining at the Blue Ridge operations. The increase is
envisaged to come from the continued ramp up of Everest as it reaches steady
state production, and from Marikana.
Total cost of production was $507.7 million, up 44% per PGM ounce in Dollar
terms, due to increased production volumes in addition to being materially
influenced by inflationary pressures and Rand strength. The Rand strengthened
by 8% on average against the US Dollar.
Gross margins were stable with improved pricing providing relief from higher
operating costs. Average unit cash costs for FY2011 (excluding Blue Ridge)
were $932 per 4E ounce, up 18% compared to FY2010. The weighted average cash
cost per PGM ounce at the South African operations increased by 12% to
R6,910, equivalent to $982 per PGM ounce at the average Rand exchange rate
for the year. The increase in US dollar terms was 21%, as a result of the
strengthening in the value of the Rand during the year under review. In
Zimbabwe the cash cost per PGM ounce was $695, a 14% increase. Increases in
cash costs were driven by inflationary factors affecting inputs such as
labour, electricity, steel and diesel. The ramp up of Everest and new support
installation also had a negative effect, as did lower volumes at certain
operations impacting on the high fixed cost base.
An impairment charge of $159.8 million against the carrying value of the
Ridge assets has been recognised in the income statement netted off against a
reversal of $10 million deferred tax. Based on a recoverable amount of the
project of R1 billion (per independent valuation) the assets in Blue Ridge
Platinum (BRP) have been impaired by R1.8 billion. 50% of this impairment is
attributable to the Aquarius group and results in a group impairment charge
on the project of $159.8 million. A tax credit of $10 million arises from the
previously recognised deferred tax payable balance in BRP. Aquarius continues
in discussions with its Blue Ridge partners, Imbani Platinum, and lenders to
explore all alternatives with respect to the future direction and development
of the Ridge assets, particularly the Blue Ridge mine. Aquarius, which
stepped into a Rand Merchant Bank (RMB) loan to Blue Ridge (inclusive of all
RMB`s rights), is also a preferred creditor. The loans to BRP from Aquarius,
DBSA and IDC are preferential and rank equally.
Exchange rate movements continued to have a volatile effect on earnings with
a $66 million forex gain recorded in the first six months followed by a $6
million forex loss recorded in the second half of the financial year. The
weakening US Dollar resulted in foreign exchange gains of $77 million on the
revaluation of net monetary assets, partially offset by $18 million exchange
losses on sales adjustments recorded at EBITDA level.
Amortisation and depreciation (D&A) at $61.5 million (FY 2010: $41.9 million)
was higher in line with higher production for the year. D&A included $5.5
million of write-offs following closure of the Marikana open pit.
Corporate administration expenses of $10.7 million was lower compared to the
pcp largely due to lower M&A and restructuring activity.
Finance costs for the year of $30.9 million included $13.9 million interest
on convertible notes and bank borrowings, borrowing costs amortised of $1.0
million and a (non cash) charge of $16.0 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 comprises $18.1 million normal corporate tax, $14.0
million deferred tax and $3.6 million withholding tax.
Headline Earnings, Profit & Production Comparison by Half Year & Full Year
(FY 2011 & 2010)
1st half 2nd half FY2011 FY2010 Movement
FY 2011 FY 2011
Headline $94.2M $48.6M $142.8M $23.6M $119.2M
earnings
Net profit $130.0M $55.2M $185.2M $58.4M $126.8M
before
impairment and
tax
Impairment - ($159.8M) ($159.8M) - ($159.8M)
Net profit $94.3M ($104.7M) ($10.4M) $27.8M ($38.2M)
(loss) after
impairment and
tax
Revenue $336.2M $346.7M $682.9M $472.2M $210.7M
PGM ozs 246,925* 231,626* 478,551* 393,315* 85,236
production
(in
operation*)
Average $1,330 $1,465 $1,395 $1,201 $194
revenue per
PGM ounce
achieved
*excludes PGM ounces of Blue Ridge production capitalised.
Reconciliation of Net Loss to Headline Earnings ($m)
Please refer to www.aquariusplatinum.com for the graph.
Group Financials by Operation
Kroondal Marikana Everest Mimosa
PGM ounces (4E) (attributable) 207,473 52,962 100,252 104,008
$M
Revenue 268.0 71.0 143.2 170.3
Cost of Sales - mining, (185.9) (63.5) (110.6) (74.2)
processing & admin
Cost of Sales - depreciation & (24.2) (14.4) (8.9) (5.1)
amortisation
Gross Profit 57.9 (6.9) 23.6 87.5
Other Income
Corporate administration
Foreign exchange gain/(loss) (11.4) (2.9) (2.1) (0.9)
Finance costs
Settlement of contractor
dispute
Profit before impairment 46.4 (9.8) 21.6 86.6
Impairment losses
Profit before income tax 46.4 (9.8) 21.6 86.6
PMR RK1 Blue Ridge Corp. Total
PGM ounces (4E) 11,417 2,438 8,854 - 487,404
(attributable)
$M
Revenue 14.3 2.6 13.5 682.9
Cost of Sales - mining, (8.2) (2.7) (1.0) (446.2)
processing & admin
Cost of Sales - (0.3) (61.5)
depreciation &
amortisation
Gross Profit 1.0 (0.4) 12.5 175.1
Other Income 1.8 1.8
Corporate administration (13.0) (13.0)
Foreign exchange 0.1 77.3 60.1
gain/(loss)
Finance costs (30.9) (30.9)
Settlement of contractor (7.8) (7.8)
dispute
Profit before impairment 1.0 (0.4) 39.7 185.2
Impairment losses (159.8) (159.8)
Profit before income tax 1.0 (0.4) (159.8) 39.7 25.4
Cash Balances
Net operating cash flows for the year generated by the group`s mining
operations increased 44% to $162 million in line with increased production
and higher prices achieved compared to the pcp. Cash generated from
operations were utilised for mine and development $140 million, cash portion
of the purchase consideration for Afarak Platinum Limited of $70 million and
dividends paid to shareholders of $37 million. Group cash balance at 30 June
2011 was $328.1 million representing a decrease of $53.6 million over the
pcp.
Group Debt
Group interest bearing debt (excluding pipeline advances) at 30 June 2011 of
$291 million comprised $247 million convertible notes, AQPSA equipment leases
$16 million and $28 million bank loans at subsidiary level.
Ridge assets
As previously disclosed, Blue Ridge has been closed for redevelopment since
August 2010. During the course of the execution of the redevelopment project,
Ridge Mining determined that the mine could not be operated economically at
current low Rand PGM prices and therefore recommended that it be placed on
care and maintenance pending a full review of its economic viability. The
Company stated in its Q3 2011 report that such a review was likely to be
prompted by the persistent low Rand price environment.
Aquarius has assessed the carrying value of its investment in Ridge Mining to
determine if an impairment charge be recognised if the accounting carrying
value exceeds the recoverable amount of the asset. Various methods have been
undertaken to determine the recoverable amount of BRP`s assets. Accounting
standards state that the recoverable amount is the higher of value in use
(essentially a DCF calculation) and an arms-length sale value.
To determine the value of the mine, Aquarius has considered its own internal
modelling using consensus and average macroeconomic assumptions as well as
external modelling to determine the carrying value of the Ridge assets. On
the basis of the above reports, management has concluded that the Ridge
Mining assets should be written down by R1.8 billion (100% basis) to reflect
a carrying value of R1 billion. Based on a recoverable amount of the project
of R1 billion the assets in BRP have been impaired by R1.8 billion. 50% of
this impairment is attributable to the Aquarius group and results in a group
impairment charge on the project of $159.8 million. A tax credit of $10
million was recognised from the previously recognised deferred tax payable
balance in BRP.
Rand-US Dollar Exchange Rate
The Rand strengthened significantly over the 2011 financial year, starting
the year at R7.72 to the US Dollar and ending it at R6.80. This 12% increase
in the value of the currency was largely driven by the uncertain global
economic recovery which has proven increasingly fragile, and the developing
debt crises in Europe and the US. These factors both bolstered the Rand as a
commodity currency and made the returns available from the Rand carry trade
more attractive, while also contributing to high intra-year volatility. The
Rand averaged 7.01 to the US Dollar during the year, 8% stronger than the
average of 7.59 recorded in the prior financial year. The Rand has continued
to strengthen into the new financial year.
Financial Year 2011: Rand US Dollar Exchange Rate
Please refer to www.aquariusplatinum.com for the graph.
Platinum Group Metal Prices
Platinum group metals prices strengthened considerably in US Dollar terms
over the period under review, primarily as a result of strong investment
demand during the first eight months of the financial year for palladium and,
to a lesser extent, platinum. The positive investor perception of fundamental
PGM demand was driven by recovering automobile demand in the developed world,
the implementation of emissions standards for heavy duty trucks and other
diesel applications in Europe and the US, the increasing likelihood of auto
emissions regulations in developing world nations and mining supply
constraints in South Africa and Zimbabwe. Investors gained exposure to the
PGMs largely through the physically-backed platinum exchange traded funds
(ETFs), and flows into these ETFs supported prices by absorbing excess metal
which would otherwise have represented a fundamental demand surplus. From
April 2011, US Dollar PGM prices largely stagnated, after the Japanese
earthquake and tsunami and other macroeconomic shocks such as the various
sovereign debt crises threw the timing of a fundamental industrial deficit in
PGM supply into doubt. Although volatility increased, PGM prices on average
did not drop significantly in the final quarter of the year, as Chinese
jewellery demand was stronger than expected despite the higher Dollar prices,
and the safe-haven nature of gold and its ever-stronger price exerted some
upward pressure on the other precious metals. Platinum rose 14% over the year
to close at $1,722 per ounce and averaged $1,706 per ounce for the financial
year, an 18% improvement over the prior year. Palladium rose 75% over the
year and 76% on average, outperforming for a second year running due to
expectations of auto catalysis in expanding markets for gasoline engines, as
well as technological advances permitting some substitutability of palladium
for platinum in diesel engines. The average rhodium price fell by 20% versus
the prior year, lacking support from any material investment demand. Gold
rose by 22% during the period.
Financial Year 2011: Platinum, Palladium, Rhodium and Gold Prices
Please refer to www.aquariusplatinum.com for the graph.
As a consequence of the stronger US Dollar PGM prices during the year, US
Dollar 4E basket prices in both South Africa and Zimbabwe increased compared
to the prior financial year. The basket price was 18% higher for the year
across the South African operations at $1,450 per 4E ounce, however in Rand
terms the basket price rose only 10% as a result of the stronger Rand-Dollar
exchange rate. The US Dollar basket price in Zimbabwe increased by 29% on
average compared to the previous year to $1,280 per 4E ounce.
Financial Year 2011: PGM Basket Prices (4E)
Please refer to www.aquariusplatinum.com for the graph.
Production
Total production from all operations in the 2011 financial year increased by
5% to 874,555 4E ounces. Production attributable to Aquarius and its
shareholders increased by 15% to 487,406 4E ounces, largely as a result of
the continuing ramp-up of Everest, which produced 100,252 4E ounces in the
year under review compared to 8,496 the year before. The Everest ramp-up will
continue in the 2012 financial year. Production increased slightly at
Kroondal but fell at Marikana as a result of lost production following the
tragic accident in July 2010 and the closure of uneconomic panels later in
the year. All of the South African operations suffered excessive governmental
safety stoppages during the second half of the year, as did the rest of the
mining industry. Kroondal and Marikana also lost production in the final
quarter as a result of timing issues relating to the manual installation of
roof support. In Zimbabwe, Mimosa yielded yet another record performance,
producing in excess of its nameplate capacity of 200,000 4E ounces. 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.
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
(4E)
Sep-10 Dec-10 Mar-11 Jun-11 FY 2010 FY2011
Kroondal 110,575 119,444 95,731 89,196 408,570 414,946
Marikana 27,756 32,831 23,927 21,411 135,418 105,925
Everest 20,417 25,144 27,737 26,954 8,496 100,252
Mimosa 54,133 47,023 51,255 55,605 199,625 208,016
CTRP 1,470 1,451 1,270 685 6,399 4,876
Platinum 3,923 4,121 10,095 4,694 19,622 22,833
Mile
Blue 8,092 - 6,671 2,944 58,608 17,707
Ridge*
Total 226,366 230,014 216,686 201,489 836,742 874,556
Production by Mine Attributable to Aquarius
PGMs Quarter Ended Full Year Ended
Sep-10 Dec-10 Mar-11 Jun-11 FY 2010 FY2011
Kroondal 55,287 59,722 47,866 44,598 204,286 207,473
Marikana 13,878 16,415 11,963 10,705 67,710 52,962
Everest 20,417 25,144 27,737 26,954 8,496 100,252
Mimosa 27,067 23,512 25,628 27,803 99,812 104,008
CTRP 735 725 635 343 3,200 2,438
Platinum 1,962 2,061 5,048 2,347 9,811 11,417
Mile
Blue 4,046 - 3,336 1,472 29,304 8,854
Ridge*
Total 123,392 127,579 122,213 114,222 422,619 487,404
*Revenues and costs capitalised
FINANCIALS
Aquarius Platinum Limited
Consolidated Income Statement
Year ended 30 June 2011
$`000
Note Half year ended Year ended
30/6/2011 31/12/201 30/6/2011 30/6/2010
0
Blue Ridge 4,808 4,046 8,854 29,304
Attributable Production 231,625* 246,926* 478,551 393,315
(4E PGM Ounces)
(excluding Blue Ridge
production)
Total production 236,433 250,972 487,405 422,645
Revenue (i) 346,707 336,152 682,859 472,220
Cost of Sales (including (ii) (266,401) (241,327) (507,728) (352,029)
D&A)
Gross profit/(loss) 80,306 94,825 175,131 120,191
Other income 1,476 288 1,764 1,588
Corporate Admin & other (iii) (4,925) (8,105) (13,030) (13,167)
costs
Finance costs (iv) (15,576) (15,369) (30,945) (25,750)
Loss on early redemption (v) - - - (20,835)
of convertible note
Foreign exchange (vi) (6,134) 66,202 60,068 (4,846)
gains/(losses)
Settlement of contractor - (7,810) (7,810) -
dispute
Impairment of assets (vii) (159,779) - (159,779) -
Transaction and (viii) - - - 1,248
acquisition costs
associated with Ridge
Mining
Profit/(loss) before tax (104,632) 130,031 25,399 58,429
Income tax expense (ix) (44) (35,751) (35,795) (30,656)
Net profit/(loss) (104,676) 94,280 (10,396) 27,773
Earnings per share (20.68) 20.43 (2.25) 6.09
(basic - cents)
Notes on the June 2011 Consolidated Income Statement
(i) Sales revenue increase reflects higher production and higher PGM basket
price achieved.
(ii) Cash costs in South Africa in unit terms (excluding Blue Ridge)
increased by 21% in US Dollar terms but by only 12% in Rand terms due to
an 8% average increase in the value of the Rand compared to the US
Dollar.
(iii)Corporate administration costs are lower due to decreased restructure
and financing activity incurred during the year.
(iv) Finance costs comprised interest of $13.9 million on convertible notes
and bank borrowings, $1.0 of borrowing costs amortised, $6.4 million of
non-cash interest arising from the unwinding of the net present value of
the rehabilitation provisions of AQPSA, and $9.6 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 gain of $60 million include a $18 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 $47 million gain on the revaluation of group loans, $10
million gain on pipeline advances and a $21 million gain incurred on the
revaluation of net monetary assets.
(vii)Reflects impairment charges for Ridge assets.
(viii)Reflects net impact of transaction and acquisition costs associated
with the acquisition of Ridge Mining.
(ix) Income tax comprises $18.1 million normal corporate tax, $14.0 million
deferred tax and $3.6 million withholding tax.
Aquarius Platinum Limited
Consolidated Cash flow Statement
Year ended 30 June 2011
$`000
Half year ended Financial year ended
Note: 30/06/11 30/06/10 30/6/11 30/6/10
Net operating cash flow (i) 115,250 76,316 162,311 112,780
Net investing cash flow (ii) (150,520) (31,072) (209,908) (79,591)
Net financing cash flow (iii) (7,711) (116,799) (33,527) 195,898
Net increase (decrease) (42,981) (71,555) (81,124) 229,087
in cash held
Opening cash balance 368,459 464,576 381,734 153,600
Exchange rate movement (iv) 2,605 (11,287) 27,473 (953)
on cash
Closing cash balance 328,083 381,734 328,083 381,734
Notes on the June 2011 Consolidated Cash flow Statement
(i) Net operating cash flow includes net inflow from operations $184
million, income tax paid $24 million and other income of $2 million.
(ii) Net investing cash flow includes payments for mine development and
development costs $140 million and the cash portion of the purchase
consideration of Afarak Platinum $70 million.
(iii)Net financing cash flow includes: net proceeds of borrowing $17 million,
settlement of contractor dispute $9 million and dividends paid of $37
million.
(iv) Exchange rate movement reflects movement of other currencies against the
US Dollar.
Aquarius Platinum Limited
Consolidated Balance Sheet
At 30 June 2011
$`000
Financial year ended
Note: 30/6/11 30/6/10
Assets
Cash assets 328,083 381,734
Current receivables (i) 108,395 96,846
Other current assets (ii) 44,747 49,338
Property, plant and (iii) 325,763 272,117
equipment
Mining assets (iv) 480,634 425,882
Other non-current assets (v) 91,735 80,450
Intangibles (vi) 77,989 72,833
Total assets 1,457,346 1,379,200
Liabilities
Current liabilities (vii) 119,534 103,906
Non-current payables (viii) 6,021 4,631
Non-current interest-bearing (ix) 258,743 238,289
liabilities
Other non-current (x) 221,711 195,341
liabilities
Total Liabilities 606,009 542,167
Net assets 851,337 837,033
Equity
Issued capital 23,509 23,154
Reserves 711,182 664,041
Retained earnings 116,646 164,102
Total Equity 851,337 837,033
Notes on the June 2011 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.
(iv)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
$14 million, cash contributed to Rehabilitation Trusts of $20 million, listed
investments of $3 million and $28 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)Includes trade creditors $85 million and bank loans at subsidiary level
(Blue Ridge) $28 million
(viii)Reflects P&SA partners` right of recovery of rehabilitation provisions.
(ix)Includes convertible notes of $247 million and AQPSA vehicle leases of
$10 million.
(x)Reflects deferred tax liabilities of $152 million and provision for
closure costs of $70 million.
OPERATING REVIEW
This section contains summarised operating reviews of each of the Company`s
operations. Full operating statistics are provided on page 22 of this report,
and other updates relevant to all operations can be found under Corporate
Matters on pages 20-21. In addition, further detail on each of the operations
can be obtained from the quarterly and half-yearly reports released by the
Company throughout the 2011 financial year which are available on the
Company`s website, www.aquariusplatinum.com.
AQUARIUS PLATINUM (SOUTH AFRICA) (PTY) LTD ("AQPSA") (Aquarius Platinum -
100%)
P&SA 1 at Kroondal (Aquarius Platinum - 50%)
- 12-month rolling average DIIR deteriorated to 0.77 per 200,000 man hours
from 0.57 the previous year
- Production was flat at 6.2m tonnes
- Volumes processed increased to 6.2m tonnes
- Head grade was stable at 2.59 g/t
- Recoveries improved by 1% to 80%
- PGM production increased by 2% to 414,946 PGM ounces
- Revenue increased by 7% to R3,738 million compared to the previous
financial year due to slightly higher production and an improved average
PGM basket price
- Mining cash costs increased by 9% to R417 per tonne, and costs per PGM
ounce by 9% to R6,273
- Kroondal`s cash margin for the period fell from 32% to 30%
Commentary
Safety, Health and Environment
Regrettably, one fatality occurred at Kroondal during the 2011 financial
year. On 13 August 2010, Mr Vasco Macamo was fatally injured when he was
caught between the LHD he was operating and another vehicle on surface at the
start of the shift. Thereafter, Kroondal achieved 1 million fatality free
shifts on 3 March 2011. The deterioration of the DIIR at Kroondal during the
year was due largely to a fire incident at Kopaneng Shaft on 6 July 2010 and
some slip-and-fall and materials handling incidents. The fire was commendably
dealt with and resulted in no serious injuries, but it did nonetheless lead
to an increase in the number of lost-time injuries reported in the first
quarter and negatively impacted statistics for the year. Safety remains of
paramount importance at Kroondal as at all operations, as evidenced by the
implementation of industry-leading roof support methodologies throughout the
mine`s 4 shafts during the period under review.
Operations
Improved operating efficiencies and stable industrial relations compared to
the previous year enabled Kroondal to increase production in the first half
of the 2011 financial year, but these gains were largely negated during the
second half. Absenteeism over the Christmas and Easter periods, a significant
increase in `Section 54` safety stoppages by government inspectors (which
affected the industry as a whole) and disruption to the timing of blasts
because of manual installation of the new hangingwall support all impacted
negatively on mining volumes in the final two quarters. Manual support
installation was made necessary by the long lead times and delayed delivery
of new drilling rigs for this purpose. Towards the end of the year the
orientation of mining was also shifted to run obliquely to the natural
fracturing in the rock, which reduced the available mining face length as new
faces had to be established, and temporarily impacted head grade. Adjustments
have now been made to accommodate these factors, and production levels are
returning to normal. Management anticipates that Kroondal will produce
approximately 420,000 PGM ounces on a 100% basis in the 2012 financial year.
Primary development increased by 51% over the period to a total of 14,375
metres, and stockpiles at the end of the financial year were approximately
14,000 tonnes. In the period under review the two year wage agreement reached
with the National Union of Mineworkers (NUM) at the conclusion of the strike
in 2009 remained in force. Wage negotiations for the 2012 financial year
commenced shortly after the period end.
Operating Cash Costs
The 9% increase in unit Rand cash costs at Kroondal was due in part to the
fixed cost base impacting on lower than optimal mining volumes, as well as
the addition of costs associated with the new safety measures, and
inflationary factors linked to electricity, labour and the international oil
price. The Rand strengthened over the year on average, exacerbating this
effect on US Dollar costs, which rose 17% on a per ounce basis.
P&SA2 at Marikana (Aquarius Platinum - 50%)
- 12-month rolling average DIIR improved to 0.48 per 200,000 man hours
from 0.74 the previous year
- Production decreased by 13% to 1.9m tonnes, with an increase of 7% from
underground operations as the open pit was ramped down and depleted
during the year
- Volumes processed decreased to 2.0m tonnes
- Head grade decreased by 12% to 2.34 g/t
- Recoveries were stable at 72%
- PGM production decreased by 22% to 105,924 ounces
- Revenue decreased by 17% to R987 million compared to the previous
financial year due principally to the reduction in PGM ounce production
- Mining cash costs increased by 5% to R455 per tonne, and costs per PGM
ounce by 18% to R8,394
- Marikana`s cash margin deteriorated from 19% to 10%
Commentary
Safety, Health and Environment
Five employees were tragically killed in a fall-of-ground incident at
Marikana`s 4 Shaft on 6 July 2010. Since this accident, further safety
initiatives have been agreed with the Department of Mineral Resources and are
currently being implemented at Marikana, together with changes in hangingwall
support methodologies and mining direction. These additional safety measures
have been independently audited and were found to be industry-leading
globally. Comprehensive detail on this tragedy and the remedial actions taken
is available in previous disclosures, including the 2010 Annual Report.
Safety remains of paramount importance at Marikana, as borne out by the
improvement in DIIR over the 2011 financial year. Management actions have
been implemented to focus on improving the safety behaviour of employees and
effective interaction from supervisors.
Operations
The decreased production of ore from the Marikana operations in FY2011
resulted from two weeks of lost underground production as a result of the
Section 54 suspension notice relating to the tragic fall of ground accident,
as well as the same absenteeism, indiscriminate `Section 54` safety stoppages
by government inspectors and disruption relating to manual installation of
the new hangingwall support that affected Kroondal. In addition, Marikana`s 1
Shaft became uneconomical during the second quarter and was placed on care
and maintenance. The Marikana open pit was finally mined out and closed
during the final quarter of the year. The underground ramp-up continues to
yield increased volumes of ore, but it has been slowed to some extent by the
intersection of geological anomalies and factors relating to the new safety
measures. The deterioration in the achieved plant head grade was also due to
this higher incidence of potholes which led to increased off-reef mining due
to difficulties in packing waste underground. As with Kroondal, these issues
have largely been dealt with and production is improving in the new financial
year. Management anticipates that Marikana will produce approximately 130,000
PGM ounces on a 100% basis in the 2012 financial year.
Primary development increased by 25% over the period to a total of 10,306
metres.
Operating Cash Costs
The 18% increase in unit Rand cash costs at Marikana occurred because of the
same inflationary factors that impacted Kroondal, although the effect of
lower volumes on the fixed cost base was more marked at Marikana, as were the
additional costs associated with the new safety measures. The Rand
strengthened over the year on average, exacerbating this effect on US Dollar
costs, which rose 27% on a per ounce basis.
Everest Mine (Aquarius Platinum - 100%)
- 12 month rolling DIIR deteriorated to 0.41 per 200,000 man hours from
0.31 the previous year
- Production increased by 6 times to 1.3m tonnes, as the mine ramped up
- Volumes processed increased to 1.4m tonnes
- Head grade deteriorated from 3.09 g/t to 2.76 g/t
- Recoveries increased from 57% to 82%
- PGM production increased by 10 times to 100,252 PGM ounces
- Revenue increased by 12 times to R997 million compared to the previous
year
- Mining cash costs increased by 8% to R557 per tonne, but costs per PGM
ounce decreased by 16% to R7,677 due to improved recoveries and scale
effects
- Everest`s cash margin increased from (4%) to 23%
Commentary
Safety, Health and Environment
No fatalities occurred at Everest during the financial year under review, and
very few lost-time injuries were reported. The DIIR deteriorated slightly
compared to the previous year, but off a low base as Everest resumed
operations only in the final two months of the 2010 financial year. As
Everest ramps up, the same industry leading hangingwall support methodology
used at Kroondal and Marikana will be implemented there, in keeping with the
Aquarius commitment to safety.
Operations
Phase 2 of the re-establishment project was completed during the first half
of the 2011 financial year, and recruitment and training of new crews for
production was completed during the year, in line with the planned build up.
The majority of employees recruited are former employees in line with the
retrenchment agreement signed with the unions when operations were ceased
following the subsidence event in December 2008. Access to the Everest mine
workings was re-established and production restarted in May 2010, and the
ramp-up of production progressed as planned for the first 8 months of the
period under review, with grades and recoveries both improving steadily. In
the final months of the year, however, mining was scheduled to take place on
the shallower fringes of the Everest orebody, where an oxidised zone of
approximately 50m in depth was anticipated. The actual oxidised layer was
significantly deeper (approximately 75m), and the resulting friable rock and
bad ground conditions negatively impacted mine production, head grade and
consequently unit costs during this period. Good plant stability enabled
Everest to continue to increase recoveries slightly, despite the oxidised
material being treated. This oxidised material and associated bad ground
conditions negatively impacted production in the final months of the year,
and caused the mine to produce below plan. Adjustments have been made to the
mining method in the area of oxidisation and production levels are returning
to normal in the new year. Management anticipates that Everest will produce
approximately 160,000 PGM ounces in the 2012 financial year.
Primary development totalled 5,037 metres. Stockpiles at the end of the
financial year were approximately 3,000 tonnes.
Operating Cash Costs
Unit cash costs in Rand terms fell significantly compared to the prior year,
as the ramp-up in production continued to reduce the impact of the mine`s
fixed cost base. This decreasing trend was interrupted in the final quarter
of the year by poor ground conditions but is expected to resume in the new
year as production continues to grow. US Dollar costs also fell, but by a
lower margin because of increased Rand strength.
AQPSA Operating costs per ounce (R/oz)
4E 6E 6E net of by-
products
(Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni&Cu)
Kroondal 6,273 5,127 4,985
Marikana 8,394 6,889 6,657
Everest 7,677 6,398 5,823
AQPSA Capital expenditure
All stay-in-business capital expenditure for the AQPSA operations is up-to-
date as per the mine plans for the specific operations. The ongoing
construction of the K6 shaft at Kroondal is likely to require approximately
R180 million of development capital expenditure in the 2012 financial year,
and there is also R14 million of project capital remaining to be spent at
Everest over the same period.
Kroondal Marikana Everest
(R`000 unless Total Per 4E Total Per 4E Total Per 4E
otherwise stated) oz oz oz
Ongoing Infrastructure 229,151 552 93,606 884 115,496 1,152
Establishment
Project Capital 119,449 288 30,754 290 82,122 819
Mobile Equipment 45,788 110 23,382 221 69,473 693
Total 394,387 950 147,742 1,395 267,090 2,664
RIDGE MINING LIMITED (Aquarius Platinum - 50%)
Blue Ridge Platinum Mine
- 12-month rolling average DIIR deteriorated slightly to 1.91 per 200,000
man hours from 1.86 the previous year
- Review and redevelopment project undertaken during the financial year
- Mine ceased operations during the fourth quarter
17,707 PGM ounces produced during the financial year
- All production and associated revenues and costs at Blue Ridge were
capitalised
- Carrying value of the Blue Ridge mine written down by $159.8 million
Commentary
Safety, Health and Environment
Regrettably, one fatality occurred at Blue Ridge during the 2011 financial
year. On 2 November 2010 Mr V.M Cossa was fatally injured in a blasting
accident caused by a failure to follow ignition procedures. The mine design
inherited from the previous owners of the Blue Ridge mine was deemed to be
inherently unsafe by Blue Ridge management during the year, and as a result a
safety review and mine redevelopment project was initiated during the year.
Operations
The decision to redevelop the Blue Ridge mine and install infrastructure was
taken in September 2010, given the low Rand basket prices prevailing at the
time and the inherited sub-optimal mine design. The implementation of the
project commenced during the second quarter, and approximately 900 employees
were redeployed, some to other operations, in a process that was concluded
satisfactorily and with retrenchments limited to a bare minimum. During the
course of the execution of the redevelopment project, however, Ridge Mining
determined that the mine could not be operated economically at current low
Rand PGM prices and therefore recommended that it be placed on care and
maintenance pending a full review of its economic viability. Ridge Mining
accordingly suspended the funding of the Blue Ridge mine pending a final
decision by the Board of Blue Ridge to place the mine on care and
maintenance. It is envisaged that Blue Ridge management will then conduct a
comprehensive evaluation of the mine to explore alternative mine plans and
determine whether the Blue Ridge ore body can be profitably exploited in a
low Rand price environment. The Blue Ridge mine ceased mining operations and
further mine development in the final quarter of the year. Discussions
continue with the lenders to the mine on a suitable resolution to its debt
situation. Aquarius is a significant creditor of the Blue Ridge mine and has
extended no corporate guarantees to the other providers of third party debt
to the mine.
Capital expenditure
R84 million of capital expenditure was invested at the Blue Ridge mine in the
2011 financial year on a 100% basis.
MIMOSA INVESTMENTS (Aquarius Platinum - 50%)
Mimosa Platinum Mine
- 12-month rolling average DIIR improved to 0.03 per 200,000 man hours
from 0.07 the previous year
- Production increased by 13% to 2.4m tonnes
- Volumes processed increased by 1% to 2.3m tonnes
- Head grade improved by 1% to 3.63g/t
- Recoveries increased by 1% to 77%
- PGM production increased by 4% to 208,016 PGM ounces
- Revenue increased by 35% to $340 million due to increased production and
a higher basket price
- Mining cash costs were stable at $53 per tonne, but costs per PGM ounce
increased by 14% to $695
- Mimosa`s cash margin for the period rose from 48% to 57%
Commentary
Safety, Health and Environment
Regrettably, one fatality occurred at Mimosa during the first quarter of the
2011 financial year, when Mr Innocent Ndlovu, an Acting Machine Operator, was
fatally injured in an explosion when an operating rock drill intersected a
socket containing misfired explosives as a result of a failure to observe
established safety procedures. Management changes were made as a result of
this accident, which ended a period of 2.7 million fatality-free shifts for
Mimosa. Very few lost-time injuries were reported during the year, with a
commensurate improvement in the DIIR.
Operations
After record production levels achieved in the first quarter of the 2011
financial year, challenging ground conditions were encountered across all
areas of Mimosa in the second quarter, persisting for the remainder of the
year. This lowered production in the second quarter, following which
additional LHDs and drilling rigs were deployed across the mine in order to
maintain production levels. This was successful in that Mimosa achieved
record production during the year under review, although it placed pressure
on mining costs.
Operating Cash Costs
Cost increases during the year were attributable to deteriorating ground
conditions and the associated use of additional equipment. Sales-related
costs such as royalties, commission and technical fees were also above
budget, in line with higher sales revenue.
Operating cash costs per ounce ($/oz)
4E(Pt+Pd+Rh+Au) 6E(Pt+Pd+Rh+Ir+Ru+Au) 4E net of by-
products
(Ni, Cu & Co)
Mimosa 695 658 185
Capital expenditure
Capital expenditure at Mimosa for the 2011 financial year was $50 million
($240 per PGM ounce), spent largely on the completion of the housing project
($21.7 million), stay-in-business projects ($22.9 million) and the balance on
business optimisation and growth projects.
Indigenisation and Economic Empowerment
As previously disclosed and in line with the requirements of General Notice
number 114 of 2011, the Indigenization Plan for Mimosa was submitted on 9 May
2011. Discussions on this issue remain in progress in an effort to find a
suitable way forward.
TAILINGS OPERATIONS
Chromite Tailings Retreatment Plant (CTRP) (Aquarius Platinum - 50%)
- Material processed decreased by 58% to 122,000 tonnes
- Head grade increased to 2.97 g/t
- Recoveries increased by 40% to 42%
- Production decreased by 24% to 4,876 PGM ounces
- Cash costs increased by 83% to R7,223 per PGM ounce due to lower volumes
processed
- Revenue decreased by 30% to R35 million for the financial year
- The cash margin for the period was (1%), a decrease from 49% the
previous year
Platinum Mile (Aquarius Platinum - 50%)
- Material processed decreased by 37% to 4.4m tonnes
- Head grade increased by 17% to 0.68 g/t
- Recoveries increased by 53% to 23%
- Production increased by 16% to 22,833 PGM ounces
- Cash costs decreased by 15% to R4,795 per PGM ounce due to improved
grades and recoveries
- Revenue increased by 16% to R199 million for the financial year
- The cash margin for the period was 45%, an increase from 36% the
previous year
Commentary
CTRP
Production fell and costs increased at CTRP as a direct result of lower
throughput largely as a result of diminishing tailings supply from external
providers. In the second half of the year dump material was secured as
feedstock, necessitating a modification of the plant to accept this type of
material. A scrubber was consequently installed and commissioning will be
completed at the end of July 2011. Volumes and recoveries should improve in
the new year following these modifications.
Platinum Mile
Production volumes and recoveries at PlatMile are highly sensitive to the
grade of feed material treated at the plant. The improved average plant feed
grade and better recoveries over the year resulted in higher production
levels, despite a decline in feedstock volumes.
Operating cash costs per ounce (R/oz)
4E 6E 4E net of by-
(Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) products
(Ni, Cu& Co)
CTRP 7,223 5,099 4,990
Platinum 4,795 4,133 3,576
Mile
CORPORATE MATTERS
Safety Initiatives
On 6 July 2010, during the first week of the 2011 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 ensuing releases and in the 2010 Annual Report.
Following this accident, the Company retained the services of an external
consultant to advise it on the best possible safety practices relating to
hangingwall support and fall-of-ground prevention to employ in its
underground mines. New codes of conduct were agreed and Aquarius is currently
rolling these new measures out at its mines. Comprehensive detail on these
new safety measures and support systems is available in previous disclosures.
These measures have been independently audited and were found to be of a
global industry standard.
Settlement of Moolman Mining Litigation
In August 2010, Aquarius announced that the Arbitration and Litigation which
its subsidiary AQPSA instituted against Moolman Mining (a division of
Grinaker LTA Limited) and the counter-claims made by Moolman Mining against
AQPSA in 2006 relating to the Marikana mine had been finally settled by
agreement between the parties. Pursuant to an agreement of settlement signed
on 18 August 2010, AQPSA paid to Moolman Mining, in full and final settlement
of all disputes and claims between AQPSA, Moolman Mining and the MD of
Moolman Mining, Mr Brian Wilmot, an amount of R86.8 million (approximately
$12 million). Moolman Mining had previously made counterclaims against AQPSA
in an amount of R486.3 million (approximately $67 million), plus interest on
all these counterclaims calculated at 15.5% per annum from December 2005
until the date of final payment. The settlement amount represents a payment
for work actually done by Moolman Mining which work was not previously paid
for by AQPSA, plus interest since December 2005 and certain legal costs, and
ignores the remainder of Moolman Mining counterclaims. Further detail on this
matter is available in the Company`s announcement dated 19 August 2010.
Acquisition of Afarak Platinum (Pty) Ltd
Aquarius announced the acquisition of Afarak Platinum on 13 April 2011.
Aquarius and Watervale (Pty) Ltd, a BEE entity in which Aquarius has a
minority interest, together paid $109.7 million for Afarak Platinum, which
owns 100% of the Hoedspruit PGM property near Rustenburg in South Africa,
close to Aquarius` Kroondal and Marikana operations. Through this
transaction, Aquarius also has the right to spend $15 million on exploration
at the Kruidfontein PGM property in the northern part of the Western Limb, in
order to earn a 50% stake in that property. The purchase price was settled by
means of $70.2 million of cash and the remainder in Aquarius shares. This
transaction has closed.
Acquisition of Booysendal South
Aquarius announced the acquisition of Booysendal South from Northam Platinum
Limited on 4 May 2011. Aquarius will pay Northam R1,200 million (c.$180
million) in cash for the Booysendal South PGM property, which is contiguous
with Aquarius` Everest mine and will be exploited using the existing Everest
infrastructure. Aquarius plans to spend capital of approximately R850 million
(c.$120 million) to integrate Booysendal South into its Everest operation,
expanding production there by 25% by 2017 and increasing its mine life by
approximately 30 years. This transaction is subject to a lengthy regulatory
approvals process and is expected to close in the second half of 2012.
Acquisition of a further stake in Platinum Mile Resources (Pty) Ltd
Aquarius announced the acquisition of a further 41.7% stake in PlatMile from
Mvelaphanda Holdings Limited and PlatMile management on 1 June 2011, bringing
Aquarius` holding in PlatMile to 91.7%. Aquarius will pay the vendors R115.5
million (c.$17 million) partly in cash with an election to pay the majority
in either cash or shares. Aquarius will use PlatMile as an important part of
an expanded tailings retreatment arm which could become an important source
of low cost PGM ounces in an environment of increasing mining costs. This
transaction is subject to certain conditions precedent, and is expected to
close in the next quarter.
Blue Ridge mine ceases operations
As announced on 1 June 2011 and stated earlier in this report, the Blue Ridge
mine ceased mining operations and further mine development during the
quarter, largely as a result of the continuing low Rand PGM price
environment. Discussions continue with the lenders to the mine on a suitable
resolution to its debt situation. Aquarius is a significant creditor of the
Blue Ridge mine and has extended no corporate guarantees to the other
providers of third party debt to the mine.
Zimbabwean Indigenisation
During the year under review, the Minister of Youth, Indigenisation and
Economic Empowerment of Zimbabwe published a statutory instrument in the
Government Gazette, General Notice 114 of 2011 (the "Notice"), 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. The Notice defines the minimum
indigenisation and empowerment quota as "a controlling interest or 51% of the
shares or interests which in terms of the Act is required to be held by
indigenous Zimbabweans in the non-indigenous mining business concerned", and
requires that disposals of the required indigenisation interests must be to
defined "designated entities", which include the National Indigenisation and
Economic Empowerment Fund, the Zimbabwe Mining Development Corporation or any
company incorporated by that entity, a statutory sovereign wealth fund that
may yet be created, or an employee share ownership scheme or trust.
As stated elsewhere in this report, the Mimosa mine submitted its
Indigenization Plan on 9 May 2011, in line with the requirements of the
Notice.
Appointments
Aquarius Platinum Limited: Jean Nel appointed as Commercial Executive
Aquarius appointed Jean Nel to the role of Commercial Executive during the
year under review, to manage the group`s commercial transactions. Jean
qualified as a chartered accountant (CA(SA)) and is a CFA, with 12 years of
mining corporate finance and commercial mining experience initially in
Southern Africa. He was part of the advisory team that structured the Pool
and Share Agreements for Kroondal and Marikana on behalf of Aquarius.
AQPSA: Wessel Phumo appointed as General Manager: Kroondal Mine
AQPSA appointed Wessel Phumo as General Manager of Kroondal Mine during the
year, to replace Abraham van Ghent who was appointed as Senior General
Manager: Operations at the end of the 2010 financial year. Wessel commenced
his career as a learner official at Saaiplaas Gold Mine in January 1988 and
held various positions in the Harmony Group until he joined AQPSA in May
2007. He was formerly General Manager: Marikana Mine.
More information on all the corporate matters can be found at
www.aquariusplatinum.com
Please refer to www.aquariusplatinum.com for the table.
Aquarius Platinum Limited
Incorporated in Bermuda
Exempt company number 26290
Board of Directors
Nicholas Sibley Non-executive Chairman
Stuart Murray Chief Executive Officer
David Dix Non-executive
Tim Freshwater Non-executive
Edward Haslam Non-executive
Sir William Purves Non-executive (Senior Independent Director)
Kofi Morna Non-executive
Zwelakhe Mankazana Non-executive
Audit/Risk Committee
Sir William Purves (Chairman) Kofi Morna
David Dix Nicholas Sibley
Edward Haslam
Remuneration/Succession Planning Committee
Edward Haslam (Chairman) Zwelakhe Mankazana
David Dix 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: Blue Ridge
Jan Hattingh 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 30 June 2011, the Company had in issue: 470,167,206 fully paid common
shares and 265,372 unlisted options.
Substantial Shareholders 30 Number of Percentage
June 2011 Shares
Savannah Consortium 63,254,371 13.45
JP Morgan Nominees Australia 43,452,853 9.24
Limited
HSBC Custody Nominees 40,774,456 8.67
(Australia) Limited
National Nominees Limited 33,487,706 7.12
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 Limited)
Ropemaker Street, Perth WA 6000 1 Merchant Place
London, EC2Y 9HT Telephone: +61 (0) Cnr of Rivonia Rd and
Telephone: +44 (0) 8 9488 1400 Fredman Drive, Sandton
20 3100 2000 2146
Bank of America Johannesburg South
Merrill Lynch Africa
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 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 Zone of the Bushveld Complex
Date: 11/08/2011 08:03:27 Produced by the JSE SENS Department.
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