| Wed 13 Jul 2005, 13:07 | | Fourth quarter report |
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Aquarius Platinum Limited - Fourth quarter report - 30 June 2005
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`)
FOURTH QUARTER REPORT - 30 JUNE 2005
AQUARIUS GROUP
Highlights
* Fourth quarter mine production attributable to Aquarius boosted 33% quarter
on-quarter to 103,834 PGM ounces as expansions continue to deliver
* Record full year production attributable to Aquarius of 327,669 PGM ounces,
up 7%
* Kroondal P&SA expansion approaches targeted annual production of 505,000
PGM ounces
* New Everest Mine construction on track for production by end December 2005
Operations
Kroondal
* Record production of 116,669 PGM ounces for the quarter and 324,730 PGM
ounces for the year (Aquarius attributable 58,335 and 162,365 PGM ounces
respectively)
* New K2 Plant at steady state 3 months ahead of schedule; K1 plant continued
good performance
* Rand per PGM cash costs fall 10%, boosting cash margin to 45% during the
quarter
Marikana
* Announcement of Marikana Pool & Share Agreement with Anglo Platinum to
increase production, lower costs and extend life of mine.
* Production increases 2% for the quarter to 26,940 PGM ounces, and 14% to
99,161 PGM ounces for the year
* Mine contractor performance improved, achieving the mutually agreed revised
mining schedule
* Positive cash margin for the third successive quarter, improves to 8% for t
he quarter
* Trial Underground Mining Project commenced
Mimosa
* Production increased 6% to 35,644 PGM ounces for the quarter (Aquarius
attributable 17,822 PGM ounces), resulting in annual production of 130,167
PGM ounces (Aquarius attributable 65,084 PGM ounces
* Efficiencies remained constant for PGM recovery rate and improved slightly
by 2% for plant head grade
* Exchange rate depreciated by 45% while the FOB incentive was improved by
67%
Everest
* Construction activities proceeding on schedule and to budget
* Smaller scale opencast mining established ahead of underground operations;
56,580 tons opencast reef stockpiled
* Underground decline development ahead of schedule, decline conveyor system
commissioned
CTRP
* Production improves as operation continues to ramp up
36,900 ROM tons processed, producing 1,473 PGM ounces (Aquarius
attributable 737 PGM ounces)
Commenting on the results, Stuart Murray, CEO of Aquarius Platinum said,
`Aquarius has delivered shareholders a strong performance for the final quarter
with each operation producing at record levels. The Kroondal P&SA has performed
well, as production continues to ramp up. I am particularly pleased that
Marikana has made steady progress throughout the year, reporting positive cash
margins for three consecutive quarters. The recently announced Pool and Share
Agreement (P&SA2) with Anglo Platinum not only offers Marikana a longer life of
mine, but also confirms Aquarius` ability to find innovative solutions in the
search for production growth. Construction at our new mine Everest is on budget
and on schedule, and the Mimosa Mine is to commence a small expansion.
The recent weakness of the South African Rand and the Zimbabwean dollar are
positive shifts at a time when our operations are delivering more production
more efficiently. Looking ahead, Aquarius is well positioned to continue
delivering strong growth to shareholders. . I believe 2006 will be an exciting
year for Aquarius as we cement our position as the world`s fastest growing
established platinum producer.`
Production by Mine
PGMs (4E) Quarter Ended Full Year Ended
Sep 2004 Dec 2004 Mar 2005 Jun 2005 Jun 2005 Jun 2004
Kroondal 67,486 71,523 69,051 116,669 324,730 237,626
Marikana 21,694 24,019 26,509 26,940 99,161 87,176
Mimosa 30,608 30,386 33,529 35,644 130,167 119,390
CTRP - - 644 1,473 2,117 -
Total 119,788 125,928 129,733 180,726 556,175 444,192
Production by Mine Attributable to Aquarius
PGMs (4E) Quarter Ended Full Year Ended
Sep 2004 Dec 2004 Mar 2005 Jun 2005 Jun 2005 Jun 2004
Kroondal 33,743 35,761 34,526 58,335 162,365 160,190
(ii) (i)
Marikana 21,694 24,019 26,509 26,940 99,161 87,176
Mimosa 15,304 15,193 16,765 17,822 65,084 59,697
CTRP - - 322 737 1,059 -
Total 70,741 74,973 78,122 103,834 327,669 307,063
8 months of P&SA
Full impact of P&SA
Foreign Exchange
Rand
Over the quarter the Rand weakened against the US Dollar. On 30 June 2005 the
Rand Dollar exchange rate was 6.67, a weakening of some 8% on the quarter`s
opening exchange rate of 6.20. The Rand Dollar exchange rate is a significant
sensitivity on company earnings. This shift is positive as the company`s South
African operations incur costs in Rands and revenues in Dollars.
Zimbabwe Dollar
During the quarter, the Reserve Bank of Zimbabwe depreciated the Zimbabwean
currency by some 45% to approximately 9,000 Zimbabwean Dollars to the US Dollar.
This move is welcomed by management, and along with an increase in the F.O.B.
Certificate rates (a form of export credit offset against costs) from 15% to
25%, assists in a significant decrease in cash costs at the Mimosa Platinum Mine
in Zimbabwe.
Metals Prices
PGM prices
PGM prices continued to perform well during the quarter and indeed for the year
as a whole. Platinum rhodium and gold closed the quarter stronger, with the
rhodium price in particular performing well closing 27% higher at the quarter
end. Looking to platinum, management believes that continued supply-side
constraints due to higher South African costs associated with a strong rand have
continued to hamper new production. Demand, however, has continued to be strong,
notably for platinum autocatalysts and this has resulted in a continued platinum
supply-deficit and historically high prices. The palladium price has continued
to fall, losing some $20 over the quarter to close at $183 per ounce.
It should be note, however, that Aquarius mines a basket of platinum group
metals: platinum, palladium, rhodium and gold, referred to as 4PGE. These metals
occur in different ratios in South Africa and Zimbabwe, and when priced
accordingly, provide a PGM basket price, one of the principal revenue drivers.
With the sustained high prices of platinum and gold, and the strong increases in
rhodium the South African PGM basket prices increased 15% in local currency
terms to R5,251 PGM ounce or 7% in US dollar terms to $788 PGM ounce. In
Zimbabwe, despite a higher ratio of palladium in the basket, the PGM basket
price increased 1% to $603 PGM ounce.
Aquarius also produces base metals, nickel, copper and cobalt as PGM by-
products. Base metal prices also increased in the quarter with nickel increasing
7% over the quarter and 24% over the year to close at $7.44 per pound, and
copper increasing 3% and 35% respectively to close the year at $1.54 per pound.
AQUARIUS PLATINUM (SOUTH AFRICA) (PTY) LTD (Aquarius Platinum 50.5%)
Kroondal Platinum Mine
Safety
Despite a fatal accident during the quarter, Kroondal reported an improved DIIR
for the quarter to 0.65. A Rock Drill Operator was fatally injured as a result
of a fall of ground accident. The matter is under internal investigation and
also by inspectors of the Department of Minerals and Energy.
Mining
As Pool & Share Agreement (P&SA) expansion nears completion, operations produced
a record 1,148,308 tons
New No. 4 decline commenced underground mining operations
Underground production to continue ramping up to 540,000 tons per month by
December 2005
Processing
Production increased 69% to 116,669 PGM ounces for the quarter, boosting annual
production from the mine by 37% to 324,730 PGM ounces for the full year
Concentrator plants demonstrate excellent engineering and efficiencies
Operations
Development and equipping of additional underground mining areas continued at
the Central, East and No. 3 decline shafts. Underground mining at the new No. 4
decline shaft commenced in May 2005. A total of 1,208 metres of development was
completed during the quarter.
It is anticipated that the total underground mining production will reach a
steady state of 540,000 tons per month by December 2005. The only remaining
work on the P&SA expansion is the completion of East Mine bunker and the surface
and underground infrastructure at the No 4 decline shaft. This is expected to be
finalised by the end of 2005.
AQPSA`s commitments on the P&SA expansion project totalled R314m at the end of
the quarter with R278m paid. The expected final cost to AQPSA is estimated at
R358m. The increase in on-going capital expenditure during the quarter reflects
the movement from project status to maintenance of the ore reserve. As the
required ore reserve is established, this will reduce.
The mine produced 1,148,308 tons and the plants processed 1,578,675 ROM tons,
with 269,633 tons remaining on the surface stockpile at year end.
The head grade to the plant reduced marginally to 2.99g/t from 3.02g/t in the
previous quarter, due to development material from underground, a lower in-situ
grade and treatment of surface stockpile material. The slight reduction in
grade indicates good underground control measures.
The increase in mining area as a result of down-dip development as part of the
P&SA project, has had a marked positive effect on production, with an average of
2km of dip face length mined every month.
Production increased 69% to 116,669 PGM ounces for the quarter (Aquarius
attributable 58,335 PGM ounces), boosting annual production from the mine by 37%
to 324,730 PGM ounces to financial year end 30 June 2005 (Aquarius attributable
160,190 PGM ounces).
Both concentrator plants performed well in terms of throughput. The K2 plant
was successfully commissioned and ramped up to near full design capacity tons
during the quarter, while the K1 plant continued to perform well above design
capacity of 250,000 tons per month, ultimately resulting in a record of
1,578,675 tons processed during the quarter. The impact on metal production was
equally impressive with in excess of 40,000 PGM ounces achieved during June.
Concentrator recoveries were 78.0% and 75.6% respectively at the K1 and K2
Plants. K1 was marginally lower reflecting the treatment of coarse surface
stockpile material. Recoveries at the new K2 Plant are expected to further
improve.
Cash cost per ROM ton decreased by 12% to R163 compared to the previous quarter
due to economies of scale. Cash costs per PGM ounce decreased by 10% to R2,208
per PGM ounce, despite a combination of higher cost for development and ledging
operations as a result of the P&SA and higher costs of deeper open pit tons.
The PGM basket price for the quarter increased 2% to $745 per PGM ounce.
Kroondal: Metal in concentrate produced (PGM ounces)
Quarter Pt Pd Rh Au PGMs (4E) PGMs (4E)
ended attributable
to Aquarius
Jun 05 69,875 33,728 12,499 567 116,669 58,335
Mar 05 41,366 19,971 7,408 306 69,051 34,526
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
Outlook
The outlook for Kroondal is positive: the P&SA expansion is almost complete
ahead of time and below budget. At full capacity the newly expanded mine will
produce 505,000 PGM ounces a year (Aquarius attributable 50%) for a
significantly longer life of mine to 2016.
The focus now is to complete the final expansion works and development of the
new No. 4 shaft. Operating efficiencies are already evident and are expected to
further improve as the expansion works tail-off, with the associated portion of
development costs currently attributed to operating expected to reduce.
Environmental Management
Environmental management at Kroondal is a core part of day to day operations.
In February 2005 an external environmental auditing and management services
company was contracted to undertake the environmental management at the Mine
complementing existing environmental programs.
During the quarter a dedicated task team was created to minimise dust pollution
from the tailings dams.
In addition, other detailed ongoing environmental action plans include:
* Other airborne dust pollution remediation
* Dust monitoring
* Ground and surface water monitoring
* Open pit rehabilitation
* Quarterly environmental assessments and monthly environmental management
meetings
* Quarterly tailings dam assessments
* Regular community liaison meetings
Marikana Platinum Mine
Safety
Marikana reported a DIIR of zero for the quarter, with no lost time injuries
recorded. Consequently, the 12 month-rolling DIIR reduced to 0.81 from 0.99.
Mining
* Mine contractor performance improved, achieving the mutually agreed revised
mining schedule
* Stripping ratios increased slightly with the opening up of a new pit
* Trial underground mining commenced during the quarter
Processing
* ROM tons processed increased 16% over the quarter to 403,450 tons
* Concentrator plant recoveries maintained at 65%, despite a reduction in
head grade
* Production improved 2% to 26,940 PGM ounces from the previous quarter, with
annual production from the mine increasing 14% to 99,161 PGM ounces for the
full year
Operations
PGM production improved by 2% to 26,940 PGM ounces for the quarter, lifting
production to 99,161 PGM ounces for the full year. This represents a year-on-
year increase of 14%, as deeper and more competent reef was mined, yielding
higher recoveries.
Mining operations occurred in five pits during the quarter. Production from
Pits C and D is scheduled to end during next year as the remaining deep ore is
depleted. As production declines, it will be replaced from the new Pit A. This
planning allows the correct mix of reef going forward while Pit A produces
weathered material, good ore is sourced from C and D, whereafter good ore is
opened in Pit A. This ensures 25% weathered ore with 75% competent ore
available to the plant.
Contractor performance improved during the quarter and achieved the revised
mining schedule agreed to in March 2005. The secondary surface mining
contractor, MCC, continues to perform well.
ROM tons increased 16% during the quarter to 403,450 tons at a lower head grade
of 3.2g/t. This was due to both internal waste dilution and unavoidable footwall
dilution from adverse localised geological conditions in Pits C and D.
Improvements in processing resulted in concentrator plant recoveries maintained
at 65%, as per the previous quarter, despite the lower head grade.
Cash costs at Marikana for the quarter were R239 per ROM ton and R3,578 per PGM
ounce. The increase in PGM ounce costs was due to higher costs associated with
a planned higher stripping ratio necessary to open up the new Pit A, and the
negative effect of higher dilution currently being experienced simultaneously in
Pits B, C and NE.
The PGM basket price increased to $746 per PGM ounce.
Marikana: Metal in concentrate produced (PGM ounces)
Quarter Pt Pd Rh Au PGMs (4E)
ended
Jun 05 16,893 7,402 2,428 217 26,940
Mar 05 17,230 6,759 2,324 196 26,509
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
Trial Underground Mining
The trial underground mining project commenced during the quarter, with the
construction of both the highwall support and underground portals.
Marikana Pool & Share Agreement
Aquarius announced on 13th July a Marikana Pool and Share Agreement (P&SA2) with
Anglo Platinum in relation to their respective mineral rights and assets at and
around the Marikana Platinum mine. The P&SA2, which is subject to certain
suspensive conditions being met including both parties signing off on a
development plan as per the Kroondal P&SA process, and regulatory approvals, is
targeted to come into effect on 22nd September 2005. The P&SA2 will extend the
life of mine at Marikana by 10 years to 2024. Full details of the P&SA2
agreement are outlined in the announcement released on 13th July 2005 and
available on the Company website: www.aquariusplatinum.com.
Contractor dispute with Moolman Mining
During the quarter, Grinaker-LTA Limited trading as Moolman Mining (South
Africa) requested a postponement of the arbitration. This was requested to
enable an audit be conducted from inception up until the end of March 2005 on
the cost elements and expenditure incurred which formulate the rise and fall
calculation.
The audit is currently being conducted by KPMG and assisted by independent
auditing experts representing Moolman Mining South Africa and AQPSA
respectively. It is anticipated that the audited report will be available
during the next quarter, whereafter the parties will agree on a way forward.
Everest Platinum Mine
Highlights
* Construction activities proceeding on schedule and to budget
* Smaller scale opencast mining established; 56,580 tons opencast reef
stockpiled
* Underground decline development ahead of programme, decline conveyor system
commissioned
Safety
The DIIR for the quarter rose to 0.39 from zero in the previous quarter as a
result of two lost time injuries occurring during the period.
Mining
Ahead of underground mining, small scale open cast mining is planned to provide
initial feedstock. During the quarter, the opencast North Pit was established,
with opencast mining continuing from the South Pit. Opencast mining is on
schedule, with a total of 599,385m3 of waste moved and 56,580 tons of reef
produced. The decline development commenced in April 2005 as scheduled, and is
ahead of programme with a system advance of 135m against the 99m programme
advance. The decline conveyor and first underground tip was successfully
commissioned during the period.
Progress
The Everest construction programme is proceeding as planned. Civil construction
and erection of steel structures are ongoing and piping, electrical and
instrumentation and tailings dam construction commenced during the period.
Engineering, design and procurement activities are proceeding in parallel and
project execution is on track for hot commissioning during December 2005.
Everest expects to mine and process 250,000 tons per month of UG2 ore to produce
225,000 PGM ounces per annum at steady state, with full production to be
attained in 2006.
The Everest capital budget is R819 million including a R33 million allowance for
escalation. The Everest project capital expenditure commitments were R533
million at the end of the quarter, with capital expenditure paid to date of R223
million.
Social Upliftment
The implementation of social upliftment and sustainable livelihood projects is
ongoing. Contractor recruitment of local labour is proving beneficial with 473
local people employed during the period.
MIMOSA INVESTMENTS
Mimosa Mine (Aquarius Platinum 50%)
Safety
The DIIR recorded a 0.34 for the quarter as a result of 3 disabling injuries
incurred in the quarter. The DIIR for the year to June 2005 at 0.31 was better
by 40% compared to the year to June 2004. The result is attributable to a
vigorous risk management programme implemented during the period under review.
Processing
* 35,644 PGM ounces produced (Aquarius attributable 17,822 PGM ounces)
* PGM Recovery Rate remained at 77.2% despite increase in throughput
* Base metal tons produced for the quarter increased by 4%
* ROM tons improved by 4% for the quarter to 395 000 tones. The increase in
mining production is directly attributable to improvements in the provision
of underground infrastructure and equipment.
Operations
PGM production improved by 6.3% to 35,644 PGM ounces for the quarter year to
June 2005, boosting annual production from the mine by 9% to 130,167 PGM ounces
to financial year end 30 June 2005. The increase in PGM production was as a
result of increases in ROM which ensured a 4% increase in concentrator
throughput to 383,000 tons. In addition plant feed grade improved by 2% to 3.75
g/t while the PGM recovery rate was maintained at the same levels of 77.2%.
The PGM basket price increased to $603 per PGM ounce, with this improvement in $
price offset by a strengthening of the Z$ exchange rate.
Cash costs at Mimosa for the quarter were $36 per ROM ton and $389 per PGM
ounce, (or $164 per PGM ounce after by-product credits). On a 12 month rolling
basis to June 2005, unit cash costs per PGM ounce were $357 (or $140 per PGM
ounce after by-product credits). The exchange rates achieved for the currency
funding requirements were based on the Reserve Bank of Zimbabwe (RBZ) Auction
Floor Rates that were lower compared to inflation differential against major
currencies. Consequently costs for the quarter were 6% worse than the previous
quarter and 42% worse on rolling averages. However, both the Auction Floor Rate
and FOB allowance were depreciated by 45% and 67% respectively at the end of May
2005. The impact of these changes on operating costs will be realised in the
first quarter of the 2006 financial year.
Mimosa: PGMs in concentrate produced (ounces)
Quarter Pt Pd Rh Au PGMs (4E) PGMs (4E)
ended attributable
to Aquarius
Jun 05 18,269 13,518 1,406 2,451 35,644 17,822
Mar 05 17,189 12,665 1,343 2,332 33,529 16,765
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 14,310
Mimosa: Base Metals in concentrate produced (tons)
Mine Production Attributable to Aquarius
Quarter Ni Cu Co Ni Cu Co
ended
Jun 05 514 420 15 257 210 8
Mar 05 491 407 14 245 203 7
Dec 04 444 374 13 222 187 6
Sep 04 447 362 14 223 181 7
Jun 04 414 329 13 207 164 6
Mar 04 412 340 13 206 170 6
Expansion Potential
Mimosa mine has completed technical work for the Wedza Phase IV upgrade to
increase concentrator throughput by 25% by June 2006.
Indigenisation
Substantial progress has been made in the indigenisation of 15% of the company`s
shareholding.
AQUARIUS PLATINUM (SA) CORPORATE SERVICES (PTY) LTD
Chromite Tailings Retreatment Plant (CTRP) (Aquarius Platinum 50%)
Safety
The Plant recorded a DIIR of 0 for the quarter and the year.
Processing
* 36,900 ROM tons processed
* As the project continues to ramp up, 1,473 PGM ounces were produced
(Aquarius attributable 737 PGM ounces) during the quarter
Operations
As the project continues to steadily ramp up, PGM production increased to 1,473
PGM ounces for the quarter (Aquarius attributable 737 PGM ounces), resulting in
full year production (five months from January 2005) of 2,117 PGM ounces
(Aquarius attributable 1,059 PGM ounces)
During the quarter 36,900 ROM tons were processed at a slightly lower head grade
of 2.58g/t, compared to 2.98g/t in the previous quarter. The feed grade is
erratic due to the high variability of the grades in the dumps. Recoveries
improved from 34.5% in the third quarter to 46.6% during the fourth quarter, as
a consequence of steadier operations.
The ability of the CTRP plant to process the designed tonnages has been
restricted by excessive water feeding the plant via the tailings streams
received from the chrome mine. Cyclones will be installed during the next
quarter to remove the excess water, thereby increasing the ability to reach the
designed dry solids throughput.
Cash costs at the CTRP for the quarter were $339 per PGM ounce, an improvement
of 15% compared to the previous quarter due to increasing throughput.
The PGM basket price increased to $840 per PGM ounce. This is higher than the
other operations due to a higher rhodium content in the concentrate.
Statistical Information: Kroondal
Unit Current Previou % Current Previou %
s Change s Change
Quarter Quarter Quarter 12 12 Year
Jun Mar on months months on
2005 2005 Quarter Jun Jun Year
2005 2004
Safety
DIIR Rate/ 0.65 1.06 (39) 0.75 1.66 (55)
200,0
00
man
hours
Revenue
Gross revenue R`M 466 263 77 1,250 869 44
PGM basket price $/oz 745 728 2 711 599 19
Gross cash margin % 45 35 29 40 52 (23)
Nickel Price $/lb 7.44 6.96 7 6.92 5.56 24
Copper Price $/lb 1.54 1.49 3 1.43 1.06 35
Ave R/$ rate 6.33 5.90 7 6.17 6.86 (10)
Cash Costs
Per ROM ton R/ton 163 186 (12) 177 156 13
$/ton 26 31 (16) 29 23 26
Per PGM oz R/oz 2,208 2,462 (10) 2,311 2,132 8
$/oz 349 417 (16) 375 311 20
Per PGM oz after R/oz 2,070 2,382 (13) 2,173 1,987 9
by-product credit
$/oz 327 404 (19) 352 290 21
Capex
Current R 18,453 571 nm 20,521 28,894 (29)
`000s
$ 2,915 97 nm 3,326 4,212 (21)
`000s
Expansion R 67,198 81,829 (18) 462,374 91,805 404
`000s
$ 10,616 13,869 (23) 74,939 13,383 460
`000s
Underground
Underground ROM 1,519 860 77 3,974 2,862 39
ton
`000
Open pit ROM 59 55 8 266 277 (4)
ton
`000
Total ROM 1,578 915 72 4,240 3,139 35
ton
`000
Grade
Plant Head g/t 2.99 3.02 (1) 3.04 3.07 (1)
Recoveries % 77 79 (3) 79 77 3
PGM Production
Platinum Ozs 69,875 41,366 69 194,290 143,408 35
Palladium Ozs 33,728 19,971 69 93,984 68,223 38
Rhodium Ozs 12,499 7,408 69 34,916 24,913 40
Gold Ozs 567 306 85 1,540 1,081 42
Total Ozs 116,669 69,051 69 324,730 237,625 37
Base Metals Production
Nickel Tonne 119 64 86 314 206 52
s
Copper Tonne 53 29 83 141 94 50
s
Chromite (000) Tonne 261 63 314 461 256 80
s
Data reflects 100% of operations.
Statistical Information: Marikana
Unit Current Previou % Curren Previo %
s Change t us Change
Quarter Quarter Quarter 12 12 Year
Jun Mar on months months on
2005 2005 Quarter Jun Jun Year
2005 2004
Safety
DIIR Rate/ 0 0.99 (100) 0.81 0.85 (5)
200,00
0 man
hours
Revenue
Gross revenue R`M 105 94 12 364 334 9
PGM basket price $/oz 746 729 2 713 627 14
Gross cash margin % 8 5 60 -10 -5 100
Nickel Price $/lb 7.44 6.95 7 6.92 5.56 24
Copper Price $/lb 1.54 1.49 3 1.43 1.06 35
Ave R/$ rate 6.33 5.90 7 6.17 6.86 (10)
Cash Costs
Per ROM ton R/ton 239 256 (7) 264 235 12
$/ton 38 43 (12) 43 34 26
Per PGM oz R/oz 3,578 3,356 7 4,035 4,031 0
$/oz 565 569 (1) 654 588 11
Per PGM oz after R/oz 3,342 3,225 4 3,827 3,927 (3)
by-product credit
$/oz 528 547 (3) 620 572 8
Capex
Current R 6,053 6,161 (2) 19,362 6,442 201
`000s
$ 956 1044 (8) 3,138 939 234
`000s
Expansion R 0 0 - 0 0 -
`000s
$ 0 0 - 0 0 -
`000s
Mining Processed
Open Pit ROM 403 347 16 1,515 1,493 1
ton
`000
Grade
Plant Head g/t 3.20 3.66 (12) 3.60 3.70 (3)
Recoveries % 65 65 0 57 49 16
PGM Production
Platinum Ozs 16,893 17,230 (2) 63,868 57,774 11
Palladium Ozs 7,402 6,759 10 26,413 22,598 17
Rhodium Ozs 2,428 2,324 4 8,061 6,062 33
Gold Ozs 217 196 11 819 742 10
Total Ozs 26,940 26,509 2 99,161 87,176 14
Base Metals Production
Nickel Tonnes 45 38 19 133 86 55
Copper Tonnes 27 21 31 73 50 46
Chromite (000) Tonnes 66 57 16 247 106 133
Data reflects 100% of operations.
Statistical Information: Mimosa
Unit Curren Previou % Curre Previo % Rollin
t s Change nt us Chang g
e
Quarte Quarter Quarte 12 12 Year 12
r Jun Mar r on month months on months
2005 2005 Quarte s Jun Jun Year June
r 2005 2004 2005
Safety
DIIR Rate/ 0.34 0.11 209 0.31 0.52 (40) 0.31
200,00
0 man
hours
Revenue
Gross revenue $`M 23.0 20.7 11 83.8 72.1 16 83.8
PGM basket price $/oz 603 595 1 590 538 10 590
Gross cash margin % 57 58 (1) 60 66 (10) 60
Nickel Price $/lb 7.11 6.70 6 6.52 5.57 17 6.52
Copper Price $/lb 1.46 1.29 13 1.23 0.95 30 123
Cash Costs
Per ROM ton $/ton 36 34 6 33 23 42 33
Per PGM oz $/oz 389 372 4 358 252 42 357
Per PGM oz after $/oz 164 158 4 141 56 151 140
by-product credit
Capex
Current 100% $ 2,245 2,273 (1) 13,67 9,287 47 11,782
`000s 2
Expansion 100% $ 370 82 351 1,108 4,257 (74) 1,108
`000s
Mining Processed
Underground ROM 395 381 4 1,432 1,334 7 1,432
ton
`000
Grade
Plant Head g/t 3.75 3.68 2 3.69 3.71 (1) 3.69
Recoveries % 77.2 77.2 (0.0) 77.1 76 1.4 77.1
PGM Production
Platinum Ozs 18,269 17,189 6.3 66,74 61,422 8.7 66,742
2
Palladium Ozs 13,518 12,665 6.7 49,25 44,697 10.2 49,259
9
Rhodium Ozs 1,406 1,342 4.8 5,156 5,036 2.4 5,156
Gold Ozs 2,451 2,333 5.1 9,010 8,234 9.4 9,010
Total Ozs 35,644 33,529 6.3 130,1 119,38 9.0 130,16
67 9 7
Base Metals Production
Nickel Tons 514 491 4.5 1,895 1,708 11.0 1,895
Copper Tons 420 407 3.2 1,563 1,402 11.5 1,563
Cobalt Tons 15 14 4.4 56 52 7.5 56
Data reflects 100% of operations.
Statistical Information: Chromite Tailings Retreatment Program
Unit Curren Previou % Curren Previo %
t s Change t us Chang
e
Quarte Quarter Quarter 12 12 Year
r Jun Mar on months months on
2005 2005 Quarter Jun Jun Year
2005 2004
Safety
DIIR Rate/ 0 0 0 0 - -
200,00
0 man
hours
Revenue
Gross revenue $M 0.9 0.4 125 1.3 - -
PGM basket price $/oz 840 812 3 834 - -
Gross cash margin % 48 30 60 37.5 - -
Nickel Price $/lb - - - - - -
Copper Price $/lb - - - - - -
Cash Costs
Per ROM ton $/ton 14.02 13 -8 13.67 - -
Per PGM oz $/oz 339 400 15 367 - -
Per PGM oz after $/oz - - - - - -
by-product credit
Capex
Current 100% $ - - - - - -
`000s
Expansion 100% $ 0.1 1,555 nm nm - -
`000s
Feed Processed
ROM 36.9 19.4 90 56.3 - -
ton
`000
Grade
Plant Head g/t 2.58 2.98 -13 2.71 - -
Recoveries % 46.65 34.50 37 41.78 - -
PGM Production
Platinum Ozs 920 401 129 1,321 - -
Palladium Ozs 303 136 123 439 - -
Rhodium Ozs 247 106 133 353 - -
Gold Ozs 3 1 200 4 - -
Total Ozs 1,473 644 129 2,117 - -
Data reflects 100% of operations.
Note: this operation commenced production of concentrate in late January 2005
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
Edward Haslam Non-executive
Catherine Markus Non-executive
Sir William Purves Non-executive
Patrick Quirk Non-executive
Zwelakhe Sisulu Non-executive
Audit/Risk Committee
Sir William Purves (Chairman)
David Dix
Edward Haslam
Nicholas Sibley
Remuneration/Succession Planning Committee
Edward Haslam (Chairman)
Catherine Markus
Nicholas Sibley
Nomination Committee
The full Board comprises the Nomination Committee
Company Secretary
Willi Boehm
Issued Capital
At 30 June 2005, the Company had on issue:
82,753,892 fully paid common shares
3,794,626 unlisted options
Substantial Shareholders 30 June 2005 Number of Percentage
Shares
Impala Platinum Holdings Ltd 7,141,966 8.63 %
J P Morgan Nominees Australia Limited 6,072,196 7.34 %
Chase Nominees Limited (FISL) 5,691,676 6.88 %
National Nominees Limited 4,446,210 5.37 %
Broker (LSE)
Williams de Broe
6 Broadgate
London EC2M 2RP
Telephone: +44 (0)20 7588 7511
Facsimile: +44 (0)20 7588 8860
Broker (ASX)
Euroz Securities
Level 14, The Quadrant
1 William Street
Perth WA 6000
Telephone: +61 (0)8 9488 1400
Facsimile: +61 (0)8 9488 1478
Sponsor (JSE)
Nedbank Capital
135 Rivonia Road
Sandown, Sandton 2196
Telephone: +27 (0)11 294 3601
Facsimile: +27 (0)11 294 8602
Aquarius Platinum (South Africa) Aquarius Platinum Corporate Services
(Proprietary) Ltd. Pty Ltd
50.5% Owned 100% Owned
(Incorporated in the Republic of (Incorporated in Australia)
South Africa) ACN 094 425 555
Registration Number 2000/000341/07
Level 4, Suite 5, South Shore Centre,
Block A, 1st Floor, The Great Wall 85 The Esplanade, South Perth, WA
Group Building 6151,
5 Skeen Boulevard, Bedfordview Australia
South Africa 2007
PO Box 485
P O Box 1282 South Perth, WA 6151, Australia
Bedfordview South Africa 2009
Telephone: +61 (0)8 9367 5211
Telephone: +27 (0)11 455 2050 Facsimile: +61 (0)8 9367 5233
Facsimile: +27 (0)11 455 2095 Email: info@aquariusplatinum.com
Email: info@aquariussa.co.za
AQPSA Management
Stuart Murray Executive Chairman
Gert Ackerman Managing Director
Ayanda Khumalo Finance Director
Neil Collett General Manager P&SA Project
Graham Ferreira General Manager Finance & Company Secretary
Hugo Holl General Manager Everest
Robert Mallinson General Manager Marikana
Gordon Ramsay General Manager Projects
Dave Starley General Manager Kroondal
Gabriel de Wet General Manager Engineering
Mimosa Mine Management
Alex Mhembere Managing Director
Winston Chitando Finance Director
Herbert Mashanyare Technical Director
Peter Chimboza General Manager
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
CTRP Chromite Ore Tailings Retreatment Operation
DIFR Disabling Injury Incidence Rate - being the number of lost time
injuries expressed as a rate per 1,000,000 man-hours worked
DIIR Disabling Injury Incidence Rate - being the number of lost time
injuries expressed as a rate per 200,000 man-hours worked
EMPR Environmental Management Programme Report
Everest Everest Platinum Mine
Great Dyke Reef A PGE bearing layer within the Great Dyke Complex in
Zimbabwe
g/t Grams per tonne, measurement unit of grade (1g/t = 1 part per million)
JORC code Australasian code for reporting of Mineral Resources and Ore
Reserves
JSE JSE Securities Exchange South Africa
Kroondal Kroondal Platinum Mine
LHD Load Haul Dump machine
Marikana Marikana Platinum Mine
Mimosa Mimosa Mining Company (Private) Limited
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) (4E) Platinum Group Metals. Aquarius reports the composite grade
comprising Pt+Pd+Rh+Au (gold), the Pt, Pd and Rh being the most economic
platinoids in the UG2 Reef.
P&SA Pooling & Sharing Agreement between KPM and RPM Ltd
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
$ United States Dollars
Z$ Zimbabwe Dollar
Further information please contact:
In Australia:
Willi Boehm
Aquarius Platinum Corporate Services Pty Ltd
+61 (0)8 9367 5211
In United Kingdom:
Nick Bias
BuckBias Limited
+ 44 (0)7887 920 530
Alex Buck
BuckBias Limited
+44 (0)7392 740 452
In South Africa:
Stuart Murray
Aquarius Platinum (South Platinum) (Pty) Ltd
+27 (0)11 455 2050
Charmane Russell
Russell & Associates
+27 (0)11 880 3924
or visit: www.aquariusplatinum.
