| Thu 27 Jan 2005, 16:48 | | Quarterly Report 31 December 2004 |
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Aquarius Platinum Limited - Quarterly Report 31 December 2004
Aquarius Platinum Limited
(Incorporated in Bermuda)
Registration number: EC26290
Share code on JSE: AQP ISIN: BMG0440M1029
Share code on ASX: AQP.AX ISIN: BMG0440M1029
Share code on LSE: AQP.L ISIN: BMG0440M1029
Share code on US Over the counter market: AQPTY ISIN: US03840M2089
(`Aquarius`)
QUARTERLY REPORT 31 DECEMBER 2004
Aquarius Group
Highlights
* Group attributable production up 6% to 74,973 PGM ounces for the quarter to
December 2004. Record production at Kroondal, P&SA ahead of schedule
* Marikana production increases with a decrease in unit cash costs
* Improved Mimosa production rates, offset by a shortened reporting period,
resulting in a steady quarter on quarter output
Strategic
* BEE entry into AQPSA completed, R860 million subscription paid in October
2004
* Cash / debt offset agreement entered into with Investec / ABSA.
Outstanding AQPSA debt balance reduced by R250 million to R112 million, the
term debt facility remains intact
* Construction of the Everest mine commenced in October 2004, progressing on
schedule
* Chromite tailings retreatment project construction completed, first
production delivered to smelter on 21st January 2005
* Aquarius becomes first foreign company to secondary list on the JSE in
terms of new foreign exchange control dispensation
Operations
Kroondal
* Record quarter, production improves a further 6% to 71,523 PGM ounces
(Aquarius attributable 35,761 PGM ounces)
* Concentrator plant recoveries maintained at 80% as mill throughput
increased
* Improved safety performance, 12 month rolling DIIR of 0.96
* Cash operating margin increases to 40%, as unit cash costs decrease to R2,
224 per PGM ounce
Marikana
* PGM production improves 11% to 24,019 PGM ounces
* Concentrator plant recoveries increase to 54% from 45% in the previous
quarter
* Improved safety performance, DIIR for the quarter improves to 0.70 from
0.80 in the previous quarter
* On mine cash costs show improvement to result in a modest positive cash
margin in the month of December
Mimosa
* Production in line with previous quarter at 30,386 PGM ounces (Aquarius
attributable 15,193 PGM ounces) despite shortened reporting period to align
Mimosa production cut-off dates with the rest of the Group
* Improved safety performance, DIFR for quarter improves to 0.29 from 0.54
* Cash operating margin remains strong at 63%
* Corporate tax rate in Zimbabwe reduced in December from 20% to 15%
backdated to January 2004
* Mine management encouraged by its discussions with the Reserve Bank of
Zimbabwe with respect to Mimosa`s foreign currency arrangements
Projects
Pooling and Sharing Agreement
* Hot commissioning commencing March 2005, ahead of schedule
* Underground tonnage build-up progressing ahead of plan
* A 600,000 ton ore stockpile is anticipated to be built up ahead of the new
concentrator start-up
* Construction of 4th decline shaft started in January 2005
Chromite Tailings Retreatment Project
* Construction completed in December
* First concentrate delivered to smelter on 21st January 2005
Everest
* Project started construction in October 2004 with anticipated commissioning
in December 2005
Production by Mine
PGMs (4E) Quarter Ended Half Year ended
Mar Jun Sep Dec Dec Dec
2004 2004 2004 2004 2004 2003
Kroondal 60,032 59,830 67,486 71,523 139,009 117,764
Marikana 17,847 20,220 21,694 24,019 45,713 49,109
Mimosa 28,621 28,807 30,608 30,386 60,994 61,962
Total 106,500 108,857 119,788 125,928 245,716 228,835
Production by Mine attributable to Aquarius
PGMs (4E) Quarter Ended Half Year ended
Attributable to
Aquarius
Mar Jun Sep Dec Dec Dec
2004 2004 2004 2004 2004 2003
Kroondal 30,016 29,915 33,743 35,761 69,504 100,200
(a) (b)
Marikana 17,847 20,220 21,694 24,019 45,713 49,109
Mimosa 14,311 14,403 15,304 15,193 30,497 30,981
TOTAL 62,174 64,538 70,741 74,973 145,714 180,290
(a) includes full impact of the P&SA
(b) includes 2 months of impact of the P&SA
AQUARIUS PLATINUM (SOUTH AFRICA) (PTY) LTD (Aquarius 50.5%)
Kroondal Platinum Mine
Safety
The DIIR recorded a good improvement to 0.38 for the quarter and thus lowered
the 12 month rolling DIIR to 0.96. Regrettably a fatal accident occurred at the
mine on 20 November 2004 when a LHD operator sustained an injury to the head.
The circumstances leading up to the accident are unclear and the matter is under
investigation by inspectors of the Department of Minerals and Energy.
Processing
* Record 150,000 square meters mined leading to 1,067,000 tons ore hoisted
from underground, with a further 109,000 tons of opencast produced
* Record concentrator throughput of 878,000 tons achieved
* 71,523 PGM ounces produced (Aquarius attributable 35,761 PGM ounces)
* Closing surface stockpile at quarter end (ahead of the Christmas and New
Year holidays) at 503,000 tons
Operations
PGM production improved by 6% to 71,523 PGM ounces for the quarter. 878,000
tons were processed at an improved head grade of 3.15 g/t (3.02 g/t for the
previous quarter). This achievement was commendable as the plant was not
operated for a period in order to undertake a rod mill reline and a replacement
of a failed ball mill bearing. Concentrator plant recoveries also improved to a
record 80.35% in the December month.
The PGM basket price increased to $700 per PGM ounce from $672 the previous
quarter, with this improvement in Dollar price offset by a strengthening of the
Rand average exchange rate to R6.11 per $ from R6.34 the previous quarter. The
exchange rate ended the quarter stronger still at R5.62 per $.
The mining operations produced a record 1,176,000 tons for the quarter, with
1,067,000 tons hoisted from underground and 109,000 tons mined from the open
pits. The increased face length derived as a result of being able to develop
down dip as part of the PSA project has had a marked positive effect on
production.
Cash costs at Kroondal were well controlled recording a decrease to R2, 224 per
PGM ounce, down from R2,436 per PGM ounce, a 9% improvement.
Kroondal: Metal in concentrate produced (ounces)
Quarter Pt Pd Rh Au PGMs PGMs (4E)
ended (4E) attributable
to Aquarius
Dec 04 42,659 20,815 7,723 326 71,523 35,761*
Sep-04 40,389 19,471 7,285 341 67,486 33,743*
Jun-04 35,724 17,343 6,481 282 59,830 29,915*
Mar-04 36,283 17,243 6,233 273 60,032 30,016*
Dec-03 36,476 17,021 6,189 276 59,962 42,398
Sep-03 34,926 16,616 6,009 251 57,802 57,802
Note * Reflects full impact of the P&SA for an entire quarter.
Pooling & Sharing Agreement (P&SA)
The P&SA expansion program is set to commission in the coming quarter. At
steady state production, the new concentrator is targeted to produce 250,000 PGM
ounces per annum, effectively doubling the Kroondal Mine`s annual output to
505,000 PGM ounces per annum. Expansion of the underground mine at the Central,
East and No 3 shafts progressed well through the quarter. A total of 1,020
meters of down-dip development has now been completed. The underground mine is
currently producing over 350,000 tons per month which places the build-up
approximately 5 months ahead of project plan.
Cold commissioning of the new concentrator will start in January 2005 with hot
commissioning planned from March 2005, 3 months ahead of schedule. A stockpile
of over 600,000 tons is anticipated to be available for plant commissioning.
First ounces from the new plant are expected during the final quarter (April to
June 2005) of this financial year.
The P&SA project`s capital expenditure commitments were R548 million at the end
of the quarter with capital expenditure paid to date of R405 million. AQPSA`s
share of these commitments and expenditure is 50% of these amounts.
Marikana Platinum Mine
Safety
The DIIR for this quarter was 0.70 compared to 0.80 the previous quarter,
ensuring that the mine retained the coveted NOSA 4 Star Platinum status.
Mining
* Improved stripping ratio during the quarter has had a positive impact on
costs
* Second contractor introduced to supplement shortfall in contribution from
first contractor
Processing
* 364,000 tons processed during the quarter
* Concentrator plant recoveries at 54% up from 45% in the previous quarter
* 24,019 PGM ounces, up 11% from the previous quarter
Operations
PGM production improved by 11% to 24,019 PGM ounces for the quarter. This was
despite fewer tons being processed during the quarter, at 364,000 tons compared
to 400,000 tons in the previous quarter. The increase in PGM ounces was the
result of improved recoveries as deeper more competent ore was accessed in
certain parts of the pit. Reflecting the access to competent ore, plant
recoveries for the quarter improved to 54% from last quarter`s 45%.
As a result of a lower stripping ratio and higher recovery levels cash costs per
PGM ounce reduced by 18% to R4,248, an improvement of R950 per PGM ounce
compared to the previous quarter. This improvement is encouraging and has
resulted in the mine breaking even in cash terms for the month of December.
Further efficiencies will be achieved through the continuing implementation of
the revised mining plan. This is evident in the reduced 364,000 tons processed
during the quarter at an improved head grade of 3.79 g/t (compared to 3.72 g/t
for the previous quarter).
The Marikana PGM basket price increased marginally to $690 per PGM ounce from
$685 in the previous quarter, with this improvement in Dollar price offset by a
strengthening of the Rand average exchange rate to R6.11 per $ from R6.34 the
previous quarter. The exchange rate closed the quarter stronger still at R5.62
per $.
Outlook
While Aquarius is implementing the revised mining plan, discussions are being
held with owners of adjacent mineral rights with a view to cooperation `across
farm boundaries`.
Trial underground mining
Trial underground mining will commence in the current quarter. It is expected
that underground mining will lead to a reduction in unit cash costs and create
more flexibility for the exploitation of the ore body.
Contractor dispute with contractor Moolman Brothers
The arbitration date for the dispute relating to the Rise and Fall component of
the mining contract has been set for April 2005.
Marikana: Metal in concentrate produced (ounces)
Quarter Pt Pd Rh Au PGMs (4E)
ended
Dec-04 15,808 6,214 1,800 197 24,019
Sep-04 13,937 6,039 1,509 209 21,694
Jun-04 13,591 5,086 1,369 174 20,220
Mar-04 11,950 4,484 1,272 141 17,847
Dec-03 16,275 6,843 1,892 219 25,229
Sep-03 15,958 6,185 1,529 208 23,880
Everest Platinum Mine
Safety
No accidents were reported.
Progress
Construction of Everest started in October 2004, following successful completion
and the receipt of funds from the BEE transaction. The capital budget is R819
million including a R33 million allowance for escalation. Everest will mine and
process 3 million tons per annum of UG2 ore to produce 225,000 ounces of PGMs
per annum at steady state. Commissioning is anticipated in December 2005, with
full production to be attained in 2006. Everest, with a UG2 reserve of 26.79
million tonnes at 3.36 g/t (4E) containing 2.8 million ounces of PGMs, is the
company`s third mining operation in South Africa.
Dowding Reynard and Associates (DRA), who managed the construction of the
Kroondal, Marikana, and P&SA concentrators, have been appointed to execute the
Everest project. Preparatory engineering work undertaken throughout 2004 has
allowed the project to be rapidly mobilised, with earthworks starting within the
week following funds receipt. Construction activities during the quarter
focussed on the process plant platform, excavation of the portal for the
underground mining decline and general infrastructure. Engineering, design and
procurement activities are proceeding in parallel and project execution is on
track for hot commissioning during December 2005.
Both opencast and underground mining contractors were appointed during the
period. The opencast mining contractor, MCC, will start mining activities
during the first quarter of 2005. Shaft Sinkers, the underground contractor,
will start the development of the decline during the second quarter of 2005.
AQPSA mining personnel from the Kroondal Mine were seconded to Everest to enable
a transfer of knowledge and skills, and will be transferred to site during the
next reporting period to manage the mining operations.
The identification and implementation of Social Upliftment and Sustainable
Livelihood projects is ongoing. Contractor recruitment of local labour is
coordinated with the Department of Labour in Lydenburg, and has proved effective
with sixty local people employed during the period. The Adult Basic Education
and Training (ABET) facility, where community members attend twice-weekly
classes, is ongoing and a project to supply water to the local primary school
was initiated during the period. Projects which will be initiated during the
next period include a day care centre, the removal of alien plants, a
nutritional feeding scheme and a catering project.
The transfer of land title to the local Phetla community under a settlement
reached with the land restitution authorities continues. Under the terms of the
agreement land required for the mine to operate will be leased back to AQPSA.
MIMOSA INVESTMENTS (Aquarius 50%)
Mimosa Platinum Mine
Safety
The mine recorded a significant improvement in safety performance. During the
quarter the DIFR was 0.29 compared to the last quarter`s figure of 0.54. The
financial year to date DIFR stands at 0.40 and the rolling 12 months DIFR at
0.49.
Operations
Mining operating days were reduced by six during the quarter as the monthly
reporting date was brought forward from 28 to 22 December to accord with AQPSA.
In addition, three operating days were lost to illegal industrial action called
by the trade union organisation. Despite the loss of nine days, PGM production
for the quarter was stable at 30,386 ounces, similar to previous quarter`s
production of 30,608 ounces, reflecting an improvement in productivity.
The Mimosa PGM basket price increased to $588 per PGM ounce from $571 in the
previous quarter. Together with the contribution from base metals (approximately
27% of gross revenue) this generated sales revenue for the quarter of $20.1
million, an increase of $0.1 million from the previous quarter at a gross cash
margin (63%) of some $12.7 million.
The Government of Zimbabwe announced a reduction in the rate of company tax for
mining companies from 20% to 15% backdated to January 2004. This development is
most welcome.
Mining operations hoisted a ROM total of 326,000 dry metric tonnes. This
compares with 329,000 dry metric tonnes in the previous quarter. Nine operating
days were lost in the quarter. Tonnes milled during the period amounted to
338,000 tonnes at an average plant feed grade of 3.65 PGM g/t compared with
335,000 tonnes at 3.68 PGM g/t in the previous quarter. PGM production remained
stable quarter on quarter with a slight decrease to 30,386 PGM ounces from
30,608 ounces.
Earlier reported problems encountered in the crushing circuit have been
resolved. Satisfactory throughput is now being achieved enabling a steady state
operation of the flotation circuits. The plant achieved above target metal
recovery rates in respect of base metals and focus in the current quarter is on
achieving similar results for PGMs.
Operating Costs
Exchange rates achieved were at the Reserve Bank of Zimbabwe (RBZ) auction floor
rates which averaged Z$5,900 per $. This level of exchange rate has not
compensated for the inflation rate impact on operating costs at mine level.
Consequently unit cash costs per PGM ounce for the quarter increased to $342 (or
$124 per PGM ounce after by-product credits) from $321 (or $111 per PGM ounce
after by-product credits) for the previous quarter. On a 12 month rolling basis
to December 2004, unit cash costs per PGM ounce were $319 (or $106 per PGM ounce
after by-product credits). The 15% FOB incentive granted by the RBZ was offset
against operating costs as per normal practice.
The expansion project was closed out at a capital cost of $41 million.
Industrial Relations
Three operating days were lost to illegal industrial action called by the trade
union to obtain concessions during national wage negotiations conducted by the
Chamber of Mines. The combined effects of a harsh socio-economic environment and
an approaching parliamentary election will make managing the industrial
relations environment in current quarter somewhat difficult.
PGM Sector Reforms
The Government of Zimbabwe, through the RBZ, has accorded the PGM sector a
special status in order to stimulate growth of the Zimbabwe platinum industry
and enhance Government`s understanding of the sector. Mimosa management has been
encouraged by its discussions with the Reserve Bank to achieve a `win-win
situation` with respect to the management of foreign currency flows. A
successful outcome of these discussions will lead to an evaluation of further
growth opportunities on the mine.
Mimosa : PGMs in Concentrate Produced (PGM ounces)
Quarter Pt Pd Rh Au PGMs PGMs (4E)
ended (4E) attributable
to Aquarius
Dec-04 15,557 11,514 1,198 2,117 30,386 15,193
Sep-04 15,727 11,562 1,210 2,109 30,608 15,304
Jun-04 14,653 10,902 1,187 2,065 28,807 14,404
Mar-04 14,647 10,621 1,281 2,072 28,621 14,311
Dec-03 15,773 11,282 1,256 2,162 30,473 15,237
Sep-03 16,350 11,892 1,312 1,935 31,489 15,745
Mimosa : Base metals in Concentrate Produced (tons)
Quarter Ended Nickel Copper Cobalt
Dec-04 444 374 13
Sep-04 447 362 14
Jun-04 414 329 13
Mar-04 412 340 13
Dec-03 432 360 13
Sep-03 452 374 13
AQUARIUS PLATINUM (SA) (CORP SERVICES) (PTY) LIMITED (ASACS), (Aquarius 100%)
Chromite Ore Tailings Retreatment Project (ASACS 50%)
Safety
No accidents were reported during the quarter
Project Development
Construction of the plant was completed during the quarter. Cold commissioning
commenced during the first week in December and hot commissioning commenced 17th
December 2004. First concentrate was delivered to the smelter on 21st January
2005.
CORPORATE MATTERS
Black Economic Empowerment (BEE)
The BEE transaction announced to shareholders on 26th July 2004 and approved by
shareholders in Special General Meeting on 11th October 2004 was formally
concluded with the receipt of R860 million in cash by the Aquarius Group on the
29th October 2004.
The transaction has two key components, the first of which is now completed.
This saw the BEE consortium, led by Savannah Resources (Pty) Limited, subscribe
for a 29.5% shareholding in the enlarged share capital of AQPSA. Concurrently
Impala Platinum Holdings Limited (Impala) acquired an additional holding in
AQPSA from Aquarius to increase their shareholding to 20% in AQPSA following the
dilution resulting from the issue of the new shares in AQPSA to the BEE
consortium. At this time, the shareholdings in AQPSA are as follows:
* 50.5% interest by AQP;
* 29.5% by the Savannah consortium; and
* 20% held by Impala.
The consideration paid by Impala amounted to R71.5 million, which was settled by
the cession of R71.5 million of interest bearing loan account to Aquarius. At
the time of the BEE transaction, AQPSA had an interest bearing loan of over R93
million (both principal and accumulated interest) to Impala. Following cession
of R71.5 million of the loan to Aquarius, AQPSA settled the outstanding balance
of the loan in cash.
The final component of the transaction will in time and subject to the
conditions detailed in the notice of meeting to shareholders of 17th September
2004, see the Savannah consortium`s 29.5% holding in AQPSA be exchanged for
24,599,542 new Aquarius shares. Following this exchange, Aquarius will hold 80%
of AQPSA and Savannah consortium constituent members will hold approximately 23%
of the enlarged share capital of Aquarius.
In terms of the BEE transaction agreements, Aquarius has invited the Savannah
consortium to nominate a non-executive director to the Board of Director`s of
Aquarius and to nominate three non-executive directors to the Board of
Director`s of AQPSA.
JSE Securities Exchange South Africa
Under revised exchange control regulations announced by South African Finance
Minister, the Honourable Trevor Manuel in February 2004, Aquarius became the
first foreign company to list its shares on the JSE. Listing on 8 December 2004,
to fulfil the company`s obligations to its empowerment partners, trade has been
light to date. Steps to improve liquidity are in progress.
Cash balances / Debt
Aquarius Group cash balances at 31 December 2004 were $137 million, after the
reduction in debt at AQPSA by R250 million in terms of an offset arrangement
with Investec / ABSA.
Shortly before the close of the quarter, AQPSA signed an agreement with Investec
/ ABSA to create an innovative cash balance management offset mechanism in
respect of its existing term debt facility. AQPSA is permitted to deposit its
cash (up to the outstanding balance of the debt facility) in order to reduce its
interest expense for the period that the cash is on deposit with the banks. An
amount of R250 million has been placed on deposit with the banks, thereby
reducing the Investec/ABSA debt balance to R112 million. Funds will be re-
advanced by the banks, without limitation at AQPSA`s request, up to the limits
of the original facility. These funds are anticipated to remain on deposit until
the end of the calendar year.
Approval of long term incentive and bonus plan
During the quarter the long term incentive plan and option plan and an amendment
to terms of existing options granted was approved by shareholders.
Kroondal 100% Previou +/- % YTD Prev +/- %
Current s Corr
Unit Quarter 6 6 12
Quarter Quarter on months months months
Dec Sept Quarter to Dec to Dec Ytd
2004 2004 2004 2003
Safety
DIIR Rate/200 0.38 0.94 (60) 0.66 1.52 (57)
,000 man
hours
Revenue R`M 263 257 2 521 412 26
Gross Revenue
PGM basket $/oz 700 672 4 686 550 25
Price
Gross cash % 40 36 11 38 50 (24)
margin
Nickel Price $/lb 6.38 6.36 0 6.37 4.94 29
Copper Price $/lb 1.40 1.29 9 1.35 0.86 56
Ave R/$ rate 6.11 6.34 (4) 6.23 7.05 (12)
Cash Costs
Per ROM ton R/ton 181 189 (4) 185 133 39
$/ton 30 30 (1) 30 19 56
Per PGM ounce R/oz 2,224 2,436 (9) 2,323 1,727 35
$/oz 364 384 (5) 373 245 52
Per PGM ounce R/oz 2,129 2,333 (9) 2,231 1,654 35
after by
product credit
$/oz 348 368 (5) 357 235 52
Capital
expenditure
Current R`000s 42.14 1,455 - 1,497 25,260 (94)
$`000s 6.90 229 - 236 3,586 (93)
Expansion R`000s 197,927 115,420 71 313,347 - -
$`000s 32,394 18,199 78 50,593 - -
Mining
Processed
Underground ROM Ton 792 803 (1) 1,595 1,379 16
`000
Open Pit ROM Ton 86 65 32 151 152 (1)
`000
Total ROM Ton 878 868 1 1,746 1,531 14
`000
Grade
Plant Head g/t 3.15 3.02 4 3.09 3.14 (2)
Recoveries % 80% 80% (0) 80% 75% 7
PGM Production
Platinum Ozs 42,659 40,389 6 83,048 71,402 16
Palladium
Rhodium Ozs 7,723
Gold Ozs 326 341 (5) 667 527
Total Ozs 71,523 67,486 6 139,009 117,76
4
Base Metals Production
Nickel Tonnes 67 63 6 130 98
Copper Tonnes 30 27 11 57 46
Chromite Tonnes 69 50 38 119 145 (18)
(000)
Marikana Previous +/- % YTD Prev +/- %
Current Corr
Unit Quarter Quarter 6 6 12
Quarter Sept on months months months
Dec 2004 Quarter to Sept to Dec Ytd
2004 2004 2003
Safety
DIIR Rate/200 0.70 0.80 (13) 0.75 0.69 9
,000 man
hours
Revenue R`M 83 82 2 165 182 (9)
Gross Revenue
PGM basket $/oz 690 685 1 688 579 19
Price
Gross cash % (22) (38) (42) (30) 2 n/a
margin
Nickel Price $/lb 6.38 6.35 1 6.36 4.94 29
Copper Price $/lb 1.40 1.29 9 1.35 0.86 57
Ave R/$ rate 6.11 6.34 (4) 6.23 7.05 (12)
Cash Costs
Per ROM ton R/ton 280 282 (0) 281 230 22
$/ton 46 44 (5) 45 33 37
Per PGM ounce R/oz 4,248 5,198 (18) 4,699 3,631 29
$/oz 695 820 (15) 755 515 47
Per PGM ounce R/oz 4,077 5,100 (20) 4,588 3,582 28
after by
product credit
$/oz 667 804 (17) 737 508 45
Capital
expenditure
Current R`000s 2,048 5,100 (60) 7,148 3,228 121
$`000s 335 804 (58) 1,148 458 151
Expansion R`000s - - - 15,826 -
$`000s - - - 2,245 -
Processed
Underground ROM Ton - - - - -
`000
Open Pit ROM Ton 364 400 (9) 764 774 (1)
`000
Total ROM Ton 364 400 (9) 764 774 (1)
`000
Grade
Plant Head g/t 3.79 3.72 2 3.75 3.77 (0)
Recoveries % 54% 45% 19 50% 52% (4)
PGM Production
Platinum Ozs 15,808 13,937 13 29,745 32,233 (8)
Palladium Ozs 6,214 6,039 3 12,253 13,029 (6)
Rhodium Ozs 1,800 1,509 19 3,309 3,421 (3)
Gold Ozs 197 209 (6) 406 426 (5)
Total Ozs 24,019 21,694 11 45,713 49,109 (7)
Base Metals
Production
Nickel Tonnes 26 23 12 49 50 (1)
Copper Tonnes 13 13 2 26 29 (11)
Chromite Tonnes 63 61 3 124 10 -
(000)
Mimosa Current Previous +/- % YTD Prev. +/- % Rollin
100% Corr
Unit Quarter Quarter Quarter 6 6 6 12
Dec 2004 Sep 2004 on months months months months
Quarter to Dec Dec Ytd to Dec
2004 2003 2004
Safety
DIFR Rate/ 0.29 0.54 (46) 0.40 0.45 (11) 0.49
200,00
0 man
hours
Revenue
Gross R`M 20.1 20 1 40 34 17 78
Revenue
PGM basket $/oz 588 571 3 580 502 16 578
Price
Gross cash % 63 62 2 62 70 (11) 62
margin
Nickel $/lb 6.17 6.06 2 6.11 5.31 15 6
Price
Copper $/lb 1.20 0.97 24 1.08 0.80 35 1.10
Price
Cash Costs
Per ROM $/ton 31 29 7 29 19 53 29
ton
Per PGM $/oz 342 321 7 319 202 58 319
ounce
Per PGM $/oz 124 111 12 105 20 425 106
ounce
after by-
product
credit
Capital
expenditur
e
Current $`000s 3,504 5,650 (38) 9,154 4,195 118 14,246
Expansion $`000s 335 321 4 656 3,212 (80) 1,701
Mining
Undergroun ROM 326 329 (1) 656 665 (1) 1,320
d Ton
`000
Grade
Plant Head g/t 3.65 3.68 (1) 3.66 3.75 (2) 3.71
Recoveries % 76.6 77.0 (1) 76.9 76.0 1 75.6
PGM
Production
Platinum Ozs 15,557 15,727 (1) 31,284 32,123 (3) 60,584
Palladium Ozs 11,514 11,562 (0) 23,076 23,174 (0) 44,599
Rhodium Ozs 1,198 1,210 (1) 2,408 2,568 (6) 4,876
Gold Ozs 2,117 2,109 0 4,226 4,097 3 8,363
Total Ozs 30,386 30,608 (1) 60,994 61,962 (2) 118,42
Base
Metals
Production
Nickel Tonnes 444 447 (1) 891 883 1 1,716
Copper Tonnes 374 362 3 736 734 0 1,405
Cobalt Tonnes 13 14 (7) 26 27 (4) 52
Aquarius Platinum Limited
Board of Directors
Nicholas Sibley
Chairman
Stuart Murray
Chief Executive Officer
David Dix
Non-executive
Edward Haslam
Non-executive
Catherine Markus
Non-executive
Sir William Purves
Non-executive
Patrick Quirk
Non-executive
Company Secretary
Willi Boehm
Issued Capital
At 31 December 2004, the
Company had on issue:
- 82,753,892 fully paid
ordinary shares
- 4,027,929 unlisted
options
Substantial Shareholders 31 December 2004 No. of Shares Percentage
Impala Platinum Holdings Ltd 7,141,966 8.63 %
J P Morgan Nominees Australia Limited 5,512,590 6.66 %
ANZ Nominees Limited 5,222,040 6.31 %
Chase Nominees Limited (FISL) 4,684,626 5.66 %
Broker (ASX) Broker (LSE)
Euroz Securities Numis Securities
Level 14, The Quadrant Cheapside House
1 William Street 138 Cheapside
Perth WA 6000 London EC2V 6LH
Telephone: +61 8 9488 1400 Telephone: +44 20 7776 1500
Fax: +61 8 9488 1478 Facsimile: +44 20 7776 1550
Sponsor in South Africa (JSE)
Nedbank Capital
135 Rivonia Road
Sandown, Sandton, 2196
Telephone: +27 (0) 11 294 3601
Aquarius Platinum (South Africa) Aquarius Platinum Corporate Services
(Proprietary) Ltd. Pty Ltd
50.5% Owned 100% Owned
Registration Number 2000/000341/07 ACN 094 425 555
(Incorporated in the Republic of (Incorporated in Australia)
South Africa)
The Great Wall Group Building Level 4, Suite 5
Block A, 1st Floor South Shore Centre
5 Skeen Boulevard 85 The Esplanade
Bedfordview South Africa 2007 South Perth Western Australia 6151
P O Box 1282 Telephone: +61 (8) 9367 5211
Bedfordview South Africa 2009 Facsimile: +61 (8) 9367 5233
Telephone: +27 11 455 2050 Email: info@aquariusplatinum.com
Facsimile: +27 11 455 2095
Email: info@aquariussa.co.za
Management
Stuart Murray
Executive Chairman
Gert Ackerman
Managing Director
Ayanda Khumalo
Finance Director
Gordon Ramsay
Projects Director
Neil Collett
General Manager P&SA
Project
Gabriel de Wet
General Manager
Engineering
Graham Ferreira
General Manager Finance
Hugo Holl
General Manager Everest
Rob Mallinson
General Manager Marikana
Phil Rooke
General Manager
Metallurgy & New Projects
Hulme Scholes
General Manager
Commercial & Legal /
Company Secretary
Dave Starley
General Manager Kroondal
Glossary
A$ Australian Dollar
Aquarius Aquarius Platinum Limited
ABET Adult Basic Education Training programme
APS Aquarius Platinum Corporate Services Pty Ltd
AQPSA Aquarius Platinum (South Africa) Pty Ltd
ASACS Aquarius Platinum (SA) (Corporate Services)
(Pty) Limited
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
EMPR Environmental Management Programme Report
Everest Everest Platinum Mine
g/t Grams per tonne, measurement unit of grade (1
g/t = 1 part per million)
Great Dyke Reef A PGE bearing layer within the Great Dyke
Complex in Zimbabwe
JORC code Australasian code for reporting of Mineral
Resources and Ore Reserves
JSE JSE Securities Exchange South Africa
Kroondal Kroondal Platinum Mine
LHD Load Haul Dump machine
Marikana Marikana Platinum Mine
Mimosa Mimosa Mining Company (Private) Limited or
Mimosa Platinum Mine
NOSA National Occupational Safety Association
PGE(s)(6E) Platinum Group Elements. Six metallic elements
commonly found together which constitute the
platinoids. These are Pt (platinum), Pd
(palladium), Rh (rhodium), Ru (ruthenium), Ir
(iridium) and Os (osmium).
PGM(s) Platinum Group Metals. Aquarius reports the
(4E) composite grade comprising Pt+Pd+Rh+Au (gold),
the Pt (platinum), Pd (palladium) and Rh
(rhodium) being the most economic platinoids in
the UG2 and Great Dyke reefs.
P&SA Pooling & Sharing Agreement between AQPSA and
RPM Ltd in respect of Kroondal
R South African Rand
RK1 Consortium comprising Aquarius Platinum (SA)
(Corporate Services) (Pty) Limited (ASACS), GB
Mining and Exploration (SA) (Pty) Limited (GB)
and Sylvania South Africa (Pty) Ltd (SLVSA).
ROM Run of Mine. The ore from mining which is fed
to the concentrator plant. This is usually a
mixture of UG2 ore and waste.
RPM Rustenburg Platinum Mines Limited
TKO TKO Investment Holdings Limited
Ton 1 Metric tonne (1 000kg)
UG2 Reef A PGE bearing chromite layer within the Critical
Zone of the Bushveld Complex in South Africa
$ United States Dollar
Z$ Zimbabwe Dollar
Further information
please visit our website
www.aquariusplatinum.com
or
Contact:
In Australia:
Willi Boehm
Aquarius Platinum
Corporate Services Pty
Ltd
+61 (0) 8 9367 5211
In United Kingdom:
Nick Bias
Buck-Bias Limited
+ 44 (0) 7887 920 530
Alex Buck
Buck-Bias Limited
+44 (0) 7932 740 452
In South Africa:
Charmane Russell
Russell & Associates
+27 (0) 11 880 3924/
+27 (0) 82 376 2327
