Aquarius Platinum Limited - Marikana Mine Update
Aquarius Platinum Limited
(Incorporated in Bermuda)
Registration number: EC26290
Share code on JSE: AQP ISIN: BMG0440M1029
Share code on ASX: AQP.AX ISIN: BMG0440M1029
19 December 2005
MARIKANA MINE UPDATE
Aquarius Platinum Limited ("Aquarius") today announces that its 50.5% owned
subsidiary Aquarius Platinum (South Africa) (Proprietary) Limited ("AQPSA") has
regrettably taken the decision to rescind the Marikana mining contract with
Moolman Mining ("Moolman"), its principle mining contractor at Marikana, based
on an actionable misrepresentation on the part of Moolman. This
misrepresentation induced AQPSA to conclude the mining contract. AQPSA"s
decision is based on external advice from Counsel and a leading forensic
accountant. Information obtained from a recent KMPG audit (as requested by
Moolman), gave rise to AQPSA"s investigation and decision. AQPSA will now claim
damages against Moolman, estimated to be in excess of Rand 1 billion.
The Board of AQPSA believes the operational and financial impact of this action
will be of a short-term nature and has taken steps to manage and accordingly
mitigate it. Discussions have been entered into with a third party mining
contractor, in anticipation of the rescission of the mining contract. The
Marikana mine, now part of the recently announced the Marikana Pool and Share
Agreement ("P&SA2"), is expected to appoint a contractor in substitution for
Moolman in the very near future.
The Marikana mine has previously recorded and announced an on-mine loss of $18.6
million (made up of EBITDA - $4.3 million & Amortisation charges - $14.3
million) for financial year ended June 2005. With the implementation of P&SA2,
it is anticipated that the mine will return a significantly improved financial
result for the current financial year as a result of the inherent synergies
(including improved operating costs and lowered amortisation charges) of the
P&SA2 transaction.
For further information please contact:
In South Africa:
Stuart Murray
Executive Chairman
Aquarius Platinum (South Africa)
(Pty) Limited
+27 11 455 2050
+27 82 441 0326
or visit:
www.aquariusplatinum.com
Date: 20/12/2005 07:05:34 AM Produced by the JSE SENS Department
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
