5th Feb 2009 07:00
Aquarius Platinum
2009 Half Year Financial Results (December 2008)
Key Points: Operational
Attributable production for the first half of the 2009 financial year was 260,208 PGM ounces, 17% higher than the previous 6 months to June 2008, though 6% lower compared to the 6 months to December 2007, due largely in part to;
Temporary suspension at Everest following early detection of subsidence event
Group Cash costs for the first half 2009 increased 17% to $639 per PGM ounce from $547 per ounce compared to first half 2008
Key Points: Financial
Average basket prices decreased 19% to $1,211 per PGM ounce from $1,502 per PGM ounce
Revenues decreased 67% to $139.2 million (impacted by $41.0 million negative sales adjustments from prior period)
Net loss $70.1 million (US 25.1 cents per share), impacted by one-off charge of $16.8 million on Everest suspension costs.
However, net gross "cash" profit, (before Everest suspension, prior period sales adjustments and non cash charges, for the half year was $10.6 million
Consolidated cash balances at period end $87.0 million
Interim dividend decision deferred
Key Points: Strategic
Proposal for refinancing RMB debt facility at documentation stage
BEE transaction completed increasing Aquarius' holding in AQPSA to 100%
Continued progress with Mimosa and Platinum Mile expansions
Commenting on the results, Stuart Murray, CEO of Aquarius Platinum said, "Thedeclines in the PGM basket price resulting from a difficult global environmentalong with the implications of the Everest suspension have significantlyimpacted the company. Aquarius' people are working through these difficulttimes, reducing costs and capex to improve profitability and cashflows."
Production
Total on mine PGM production for the period was 456,345 PGM ounces. Thisrepresents a 19% increase compared to 2H 2008, however, a 1% decrease whencompared to 1H 2008. Production attributable to Aquarius shows a similarpattern, up 17% to 260,208 PGM ounces for 1H 2009 when compared to 2H 2008,though 6% lower compared to 1H 2008. This decrease was due to the temporaryclosure of the Everest Mine on 7 December 2008 resulting from a subsidenceevent. This demonstrates that following a weak 2H 2008, the group had startedto see improvements in production to December 2008.At the start of the financial year, the Group was targeting a 2009 annualproduction of 575,000 PGM ounces, an increase of approximately 15% on theprevious year. This target has been reduced by 100,000 ounces to take accountof the suspension of operations at Everest and the impact of the transition toowner operator.
Production by Mine and Attributable to Aquarius
Mine Attributable to Aquarius PGMs (4E) Half Year ended Half Year ended Half Year ended Half Year ended Dec 2007 Dec 2008 Dec 2007 Dec 2008 Kroondal 208,035 211,438 104,017 105,720 Marikana 72,944 81,333 36,472 40,667 Everest 95,560 64,068 95,560 64,068 Mimosa 78,032 86,870 39,016 43,435 CTRP 5,496 3,548 2,748 1,774 Platinum Mile - 9,088 - 4,544 Total 460,067 456,345 277,813 260,208 Platinum Group Metal Prices
PGM prices reported significant falls over the first half of this financialyear. Platinum closed the period 56% lower at $904 per ounce, rhodium 87%lower at $1,250 per ounce, palladium 60% lower at $184 per ounce, and gold 6%lower at $866 per ounce. Platinum, palladium and rhodium prices fell due tosharp falls in sales to autocatalyst manufacturers and liquidation of physicalmetal by investment institutions. All this despite tightening emissionsstandards, ongoing supply constraints and in November and December 2008 anoverall increase in jewellery and investment demand.The PGM basket prices for the Group consequently fell. At our South Africanoperations, the four element basket price averaged R10,673 per ounce, equal to$1,214 per ounce. In Zimbabwe, the average achieved basket price for the firsthalf of the financial year averaged $1,196 per ounce. This resulted in a groupbasket price equivalent of $1,211 per PGM ounce or R10,647 per PGM ounce.
Financial results: Half Year to 31 December 2008
Aquarius Platinum Limited announces a consolidated loss for the half year to 31December 2008 of $70.1million (US 25.1 cents per share), down from the previouscorresponding six month period to December 2007 which recorded a profit of$106.6 million (US41.58 cents).
The results for the period were heavily influenced by:
The significant reduction in metal prices experienced since June 2008, whichsaw platinum decrease from an average of $2,036 per ounce in the month of Juneto an average of $840 per ounce in the month of December. Rhodium similarlydecreased from an average of $9,774 per ounce in the month of June to $1,220per ounce in the month of December. In addition, by-product nickel also fell50%, averaging $6.76/lb for the period compared to $13.47/lb in 1H 2008.
Interest expense $21.6 million (pre-tax) due to increased debt following repurchase of 20% of AQPSA
$16.8 million (pre-tax) of adjustments associated with the temporary suspensionof mining at the Everest mine on 7 December 2008. $10.1 million of this relatedto impairment of mining assets damaged in the underground and $6.7 millionrelated to provision for redundancies and inventory losses.
$29 million foreign currency loss (pre-tax) on pipeline advances due to US dollar strengthening during the half year.
Declining PGM prices casuing $41 million of negative PGM sales adjustments(pre-tax) in the current period. This related to the difference between thevalue of PGM concentrate sales provisionally priced and recorded in the Junequarter 2008 and the actual settled PGM price recorded in the Dec 2008 half . Add back Half year Everest Portion of sales Adjusted gross Dec 2008 closure adjustment relating to profit for the costs prior period Half Year Revenue $268.2m - - $268.2m Impact of Sales ($129.0m) - $41.0m ($88.0m) Adjustments Reported $139.2m - $41.0m $180.2m Revenue Cost of Sales ($176.3m) $6.7m - ($169.6) (excl D&A) Gross "Cash" Profit / ($37.1m) - - $10.6m (Loss) Gross "Cash" - - - 5.9% Margin (%)
Revenue from ordinary activities for the period was $139 million, down from theprevious corresponding period due to the factors described above. Afteradjusting for the items described above the gross "cash" profit of the Groupfor the half year was $10.6 million.Total mine PGM production for the period decreased 1% to 456,345 PGM ounces.Production attributable to Aquarius was 6% lower at 260,208 PGM ounces. Thedecrease in attributable production was due mainly to lower production at theEverest mine. Operations at the Everest mine were suspended on 7 December 2008following a subsidence event.Total cash cost of production was $176.3 million, up 17% per PGM ounce indollar terms. Amortisation and depreciation was lower at $21 million from $24million in line with the 8% decrease in production. Finance charges for thehalf year of $21.6 million included interest payments on the RMB debt facilityof $14.9 million; pipeline finance of $3.2 million; and a non-cash component of$3.4 million on the unwinding of the rehabilitation provision.
Cash balances during the half year were impacted by the net repayment of approximately $90 million of pipeline sales advances resulting from the decline in PGM prices from the time of the advance to the time of sale. Following the recent stabilisation of PGM prices, pipeline advances are not expected to continue to impact cash flow adversely.
No interim dividend has been declared.
Group Financials by Operation (attributable to Aquarius)
$ million Kroondal Marikana Everest Mimosa CTRP PMR Corporate Total
PGM ounces (4E) 105,720 40,667 64,068 43,435 1,774 4,544 - 260,208(attributable) Revenue 53.8 19.2 29.5 25.9 1.2 3.8 5.8 139.2
Cost of sales (71.8) (39.7) (59.5) (21.8) (2.1) (2.4) (0.1) (197.4)
Gross profit (18.0) (20.5) (30.0) 4.1 (0.9) 1.4 5.7 (58.2) Other Income (0.1) 0.1 0.2 0.2 Corporate admin - - - - - - (4.7) (4.7) & other costs Foreign currency gain/ (14.2) 2.5 (6.2) (9.2) - - (9.1) (36.2) (loss) Finance charges - - - - - - (21.6) (21.6) Impairment of (10.1) (2.5) (12.6) assets Profit/(loss) (32.2) (18.0) (46.3) (7.6) (1.0) 1.5 (29.5) (133.1)before tax Tax benefit/ - - - - - - 27.2 27.2 (expense) Profit/(loss) - - - - - - - (105.9)after tax Minority - - - - - - - 35.8 interest Profit/(loss) after minority - - - - - - - (70.1) interest A proposal for refinancing the RMB debt facility is currently at thedocumentation stage.Financials Aquarius Platinum Limited Consolidated Income Statement For the Half Year ended 31 December 2008 $'000 Half Year Ended Year Ended Note: 31/12/08 31/12/07 30/6/08 Production: (attributable PGM 260,208 277,183 500,203ounces) Revenue (i) 139,179 423,657 919,012 Cost of sales (including D&A) (ii) (197,321) (175,662) (359,873) Gross profit/(loss) (58,142) 247,995 559,139 Other income 186 595 2,109 Corporate Admin & other costs (iii) (4,710) (3,822) (10,467) Finance costs (iv) (21,590) (8,068) (28,260)
Foreign exchange gains/(losses) (v) (36,299) (8,908) 14,286
Impairment of assets (vi) (12,582) - - Profit/(loss) before tax (133,137) 227,792 536,807 Income tax credit (expense) (vii) 27,165 (59,178) (173,214) Profit/(loss) after tax (105,972) 168,614 363,593 Minority interest (viii) 35,842 (61,968) (127,119) Net profit/(loss) (70,130) 106,646 236,474 Earnings per share (basic - cents) (25.09) 41.58 91.98
Notes on the Consolidated Income Statement
Revenue is lower compared to December 2007 due to a significant decreases in metal prices, an 8% drop in PGM production and $41 million negative sales adjustments on prior period production
Increase in cost of sales reflects impact of inflation, on mine cash cost increases and $10.0 million costs associated with the temporary closure of Everest, including depreciation and amortisation of $21.0 million
Relates to administration costs of the Aquarius Group
Increase in finance costs reflects interest expense on RMB bridge facility $14.9 million, pipeline finance $3.2 million and interest expense on the unwinding of the rehabilitation provisions $3.4 million
Reflects effects of adjusting revenue recorded at time of production at Kroondal, Marikana and CTRP to actual receipts received at the end of the four month pipeline $27 million and revaluation of net monetary assets including impact of the depreciating Zimbabwean Dollar $9 million
Includes impairment charges for $10.1 million of Everest mining assets and $2.5m for listed investments
Income tax includes deferred tax credit attributable to the loss incurred at AQPSA
Minority interests reflect outside equity interest of the Savannah Consortium(SavCon) for the months of July to October. Aquarius assumed 100% ownership ofAQPSA from 27 October following the final phase of the BEE flip which resultedin the SavCon consortium being issued with 65,042,856 shares in Aquarius inreturn for their 32.5% equity interest in AQPSA Aquarius Platinum Limited Consolidated Cash Flow Statement Half year ended 31 December 2008 $'000 Half year ended Year ended Note: 31/12/08 31/12/07 30/06/08 Net operating cash inflow (i) (15,880) 205,152 339,073 Net investing cash outflow (ii) (24,444) (32,996) (118,048) Net financing cash outflow (iii) (30,094) (95,297) (320,081) Net increase in cash held (70,418) 76,859 (99,056) Opening cash balance 170,956 287,663 287,663
Exchange rate movement on cash (iv) (13,584) 4,160 (17,651)
Closing cash balance 86,954 368,682 170,956
Notes on the Consolidated Cash Flow Statement
Net operating cash flow includes $243.5 million net inflow from sales (includes net repayment of $90 million of pipeline advances since June 2008), $247.8 million paid to suppliers, net finance expense of $9.7 million.
Reflects development and plant and equipment expenditure of $24.4 million.
Includes the final dividend for payment to shareholders of $26.2 million and $3.6 million AQPSA dividend to minorities.
Reflects movement of Rand against the US dollar.
Aquarius Platinum Limited Consolidated Balance Sheet At 31 December 2008 $'000 Half year ended Year ended Note: 31/12/08 31/12/07 30/06/08 Assets Cash assets 86,954 368,682 170,956 Current receivables (i) 71,754 107,282 186,964 Other current assets (ii) 45,017 38,587 35,941 Property, plant and equipment (iii) 195,904 214,043 221,515 Mining assets (iv) 260,002 316,408 277,428 Other non-current assets (v) 13,029 13,234 15,599 Goodwill 49,231 - 58,505 Total assets 721,891 1,058,236 966,908 Liabilities Current liabilities (vi) 229,635 68,128 267,517 Non-current payables (vii) 1,986 2,391 2,219 Non-current interest-bearing liabilities (viii) 1,933 33,731 1,752 Other non-current liabilities (ix) 100,868 181,215 150,906 Total Liabilities 334,422 285,465 422,394 Net assets/(liabilities) 387,469 772,771 544,514 Equity Parent entity interest 387,469 542,199 508,914 Minority interest - 230,572 35,600 Total Equity 387,469 772,771 544,514
Notes on the Consolidated Balance Sheet
Reflects debtors receivable on PGM concentrate sales.
Reflects PGM concentrate inventory, reef stockpiles and consumables stores.
Represents plant and equipment within the Group.
Mining assets relates to Kroondal, Marikana, Mimosa and Everest mine properties and mine development.
Includes recoverable portion of rehabilitation provision from Anglo Platinum ($11.5 million), investments in unlisted entities ($0.4 million)
Includes RMB bridge facility $166.7 million, creditor and other payables $59 million and tax payable $3 million.
Includes rehabilitation obligations on P&SA1 and P&SA2 structures.
Reflects Investec loan at PMR.
Reflects deferred tax liabilities $48 million, provision for closure costs $53 million.
OPERATIONS
AQUARIUS PLATINUM (SOUTH AFRICA) (PTY) LTD (Aquarius Platinum 100%)
P&SA1 at Kroondal
Safety
The 12-month rolling average DIIR deteriorated to 0.77 from 0.44 during the half year.
Mining
Underground tonnages increased 9% to 3.5 million tons
Open pit tonnages declined in line with plan to 18,000 tons
Head-grade averaged 2.57 g/t for the first half, down 4% compared to the first half 2008.
Processing
Plant processed 3.2 million tons, 3% higher than the first half 2008
Concentrator recoveries improved marginally to 78%
Production increased 2% to 211,438 PGM ounces
Revenue
The PGM basket price for the half was $1,233 per PGM ounce, 22% lower than 1H2008. The Rand Dollar exchange rate averaged 8.79 for the six months. Revenueat Kroondal consequently suffered, down 61% to R841 million, due primarily torepayment of sales advances caused by weakening PGM prices.
Operations
Production for the first six months increased 5% compared with the first half2008, totaling 3.5 million tons: 3,483,000 tons from underground operations and18,000 tons from open pit operations.
Primary development decreased by 52% over the period to a total 3,646 metres. Development decreased in accordance with mine planning.
At the end of period, the stockpile had increased to 154,000 tons in preparation for the Christmas close and to mitigate the Q3 holiday impact.
Tons processed increased 3% to 3,241 million tons. The plant head grade fell to 2.57g/t for the first half. PGM production increased by 2% to 211,438 (Aquarius attributable: 105,720 PGM ounces).
Operating Cash Costs
Cash costs for the first half increased to R339 per ROM ton and $592 per PGM ounce.
Kroondal: Operating Cash Costs
4E (Pt+Pd+Rh+Au) 6E 6E net of by-products (Ni& (Pt+Pd+Rh+Ir+Ru+Au) Cu) Kroondal R 5,203 per PGM R 4,266 per PGE R 4,161 per PGE ounce ounce ounce P&SA2 at MarikanaSafety
The 12-month rolling average DIIR for the half year deteriorated to 0.70 compared with 0.33 in the previous corresponding period. Operations moved from primarily open pit operations to a combination of underground and open pit mining resulting in a higher risk profile.
Mining
Underground production ramp-up continues to progress with 740,000 tons mined for the period
Open pit production also increased to 700,000 tons
Head grade decreased to 2.87 g/t due to increased underground tonnage
Processing
Tons processed increased to 1,363,000 a 15% increase compared to the first half 2008
Recoveries remained steady at 64%, though increasing in the second quarter compared to the first quarter
81,333 PGM ounces produced (Aquarius attributable 40,667 PGM ounces), a 12% increase compared to the first half 2008.
Revenue
The PGM basket price for the half was $1,198 per PGM ounce, 23% lower than 1H2008. The Rand Dollar exchange rate averaged 8.79 for the six months. Revenueat Marikana consequently suffered, down 59% to R303 million, due primarily torepayment of provisional sales advances.
Operations
Total production for the first six months increased to 1,440 million tons, made up of 740,000 underground tons and 700,000 open pit tons.
The surface stockpile decreased to 145,000 tons at the end of the period.
During the first six months, a total of 1,363,000 tons were processed, a 15% increase period on period.
The average plant head grade decreased to 2.87g/t for the first six months compared to 3.02 g/t for 1H 2008 due to higher percentage of underground ore. Plant recoveries were steady at 64%, resulting in production of 81,333 PGM ounces (Aquarius attributable 40,667 PGM ounces, up 12% compared to 1H 2008.
Operating Cash Costs
Cash costs averaged R420 per ROM ton for the period. Cash costs per PGM ounceincreased by 23% to R7,038 compared to the first six months to 2008, equal to$701 per PGM ounce. Cash costs in the second quarter, however, showed someimprovement, reducing 20% to R6,279 per PGM ounce compared to the firstquarter.Marikana: Operating Costs 4E (Pt+Pd+Rh+Au) 6E 6E net of by-products (Ni& (Pt+Pd+Rh+Ir+Ru+Au) Cu) Marikana R7,038 per PGM R5,780 per PGE ounce R 5,609 per PGE ounce ounce
The following report for the Everest Platinum Mine is for the six months to December 2008, however, it should be noted that the mine was only operating until December 7, therefore period-on-period comparables are not accurate.
Everest Platinum Mine
Safety
The 12 month rolling average DIIR for the half year improved to 0.58 compared with 0.84 in the previous corresponding period.
Mining
Underground operations produced to 839,000 tons
Head grade fell 3% to 2.89 g/t
Processing
839,000 tons processed
Significant improvement in recoveries to 83% reflecting ending of open pit production
Production 64,068 PGM ouncesRevenue
The PGM basket price fell by 21% to $1,224 per PGM ounce compared to 1H 2008. The Rand Dollar exchange rate averaged 8.79 for the six months. Revenue at Everest consequently suffered, down 77% to R226 million, due to lower production, the temporary suspension of operations and repayment of sales advances.
Operations
Underground operations produced 839,000 tons. Open pit mining ceased in the previous period.
Underground production was still ramping up following the conversion to owner-operator during 2H 2008 and affected by challenging geology on northern sections of the mine and wage negotiations concluded during the period.
Stockpiles were depleted during the period. Concentrator throughput was 839,000 tons milled for the period.
Metallurgical recoveries improved to 83% for the first six months compared with 79% in the previous corresponding period, reflecting the results of metallurgical optimisation.
Production for the first six months until operations were suspended totalled 64,068 PGM ounces.
Operating Cash CostsCash costs for the period increased to R511 per ROM ton milled, consequently,cash costs per PGM ounce for the period increased to R6,686 per PGM ounce, withsignificant impact due to operation .suspensionEverest Operating Costs 4E (Pt+Pd+Rh+Au) 6E 6E net of by-products (Ni& (Pt+Pd+Rh+Ir+Ru+Au) Cu) Everest R 6,686 per PGM R 5,471 per PGE ounce R 5,320 per PGE ounce ounce Mimosa Mine (Aquarius 50%)Safety
The 12-month rolling average DIIR deteriorated to 0.17 from 0.11 for the period.
Mining
Underground production increased to 1,046,000 tons
The surface stockpile increased by 27% to 530,000 tons at the end of the period
Processing
Tons processed increased 13% to 1,014,000 tons despite plant shutdowns
Average concentrator plant recoveries fell to 73.7%
Total mine production increased 11% to 86,870 (Aquarius attributable: 43,435 PGM ounces)
RevenueThe PGM basket price for the period averaged $1,196 per PGM ounce, an 11%increase compared to 1H 2008. The average nickel price over the period was 47%lower at $8.35 per pound and copper 8% higher at $3.00 per pound compared tothe previous corresponding period.
Revenue for the period was $110 million (Aquarius attributable: 50%), a 2% increase compared to the previous corresponding period.
During the period mining operations hoisted 1,046,000 tons compared with 971,000 tons in the previous corresponding period. Tons milled during the quarter totalled 1,014,000 tons, with the surface stockpile at the end of the period 530,000 tons.
The average plant head grade for the period increased slightly to 3.61 g/t.
Recoveries for the period fell slightly to 73.7%.
Production for the period increased 11% to 86,870 PGM ounces (Aquarius attributable: 43,435 PGM ounces).
Operating Cash Costs
Cash costs for the period increased 11% to $40 per ROM ton and increased by 13%to $469 per PGM ounce compared to the previous corresponding period. Net ofby-products, cash costs were $161 per PGM ounce.Mimosa Operating Costs 4E (Pt+Pd+Rh+Au) 6E 4E net of by-products (Ni, Cu& (Pt+Pd+Rh+Ir+Ru+Au) Co) Mimosa $469 per PGM $446 per PGE ounce $161 per PGE ounce ounce
AQUARIUS PLATINUM (SA) CORPORATE SERVICES (PTY) LTD
Chromite Tailings Retreatment Plant (CTRP) (Aquarius Platinum 50%)
Safety
The DIIR is for the period was 4.80 compared to 0 for 1H 2008.
Processing
Feed processed was 120,000 tons
Average recoveries for the period increased 51% to 39%
3,548 PGM ounces produced (Aquarius attributable: 1,774 PGM ounces)
Revenue
The PGM basket price for the period decreased 18% to $1,530 per PGM ounce. The CTRP enjoys a high rhodium content hence the higher basket prices achieved.
The Rand Dollar exchange rate averaged 8.79 for the six months. Revenue at CTRP consequently suffered, down 78% to R12 million, due to PGM sales adjustments.
Operations
Feed decreased 15% 120,000 tons.
The head grade over the first half averaged 2.5 g/t.
Recoveries increased by 51% to 39%, though notably increasing though the period and averaging 48% in the second quarter.
This resulted in production of 3,548 PGM ounces produced (Aquarius attributable: 1,774 PGM ounces) compared with the previous corresponding period
Operating Costs
Cash costs increased to R3,572 per PGM ounce, equal to $406 per PGM ounce.
4E (Pt+Pd+Rh+Au) 6E (Pt+Pd+Rh+Ir+Ru+Au) 6E net of by-products
CTRP R 3,572 per PGM ounce R 2,447 per PGE ounce R 2,345 per PGE ounce
Platinum Mile (Aquarius Platinum 50%)
Safety
The DIIR is for the period was zero.
Processing
Feed processed was 4.6 million tons
Average recoveries for the period were 9%
9,087 PGM ounces produced (Aquarius attributable: 4,544 PGM ounces)
Revenue
The PGM basket price for the period was $841 per PGM ounce. The Rand Dollarexchange rate averaged 8.79 for the six months. Revenue at Platinum Mile wasR74 million.Operations
Feed during the period totalled 4,574,000 tons.
The head grade over the first half averaged 0.72 g/t with recoveries at 9%.
This resulted in production of 9,087 PGM ounces produced (Aquarius attributable: 4,544 PGM ounces) compared with the previous corresponding period.
Operating Costs
Cash costs for the period was R3,387 per PGM ounce, equal to $384 per PGMounce.Statistics Kroondal P&SA1 Marikana P&SA2 CTRP 6 6 Unit 6 months 6 months months months 6 months 6 months Dec 2008 Dec 2007 Dec Dec Dec 2008 Dec 2007 2008 2007 Safety Rate/ DIIR 200,000 0.77 0.44 0.70 0.33 4.80 0 hrs Revenue Gross Millions 841 2,138 303 744 12 56 revenue PGM basket $/oz 1,233 1,586 1,198 1,559 1,530 1,874 Price Gross cash % (31) 64 (89) 44 (5) 81 margin Nickel Price $/lb 6.76 13.47 6.76 13.47 6.76 13.47 Copper Price $/lb 2.63 3.38 2.63 3.38 2.63 3.38 Ave R/$ rate 8.79 6.93 8.79 6.93 8.79 6.93 On Mine Cash Costs R/ton 339 245 420 355 106 77 Per ROM ton $/ton 39 35 48 51 12 11 Per PGM R/oz 5,203 3,720 7,038 5,742 3,572 1,983 (3E+Au) $/oz 592 536 801 828 406 286 Per PGE R/oz 4,266 3,063 5,780 4,765 2,447 1,388 (5E+Au) $/oz 485 442 658 687 278 200 Production Underground ton 3,483 3,033 740 558 - - '000s Open Pit ton 18 120 700 630 - - '000s Total ton 3,501 3,152 1,440 1,187 120 141 '000s Plant Head g/t PGM 2.57 2.68 2.87 3.02 2.50 4.80 Recoveries % 78 77 64 64 39 26 Platinum Ozs 125,709 124,586 50,375 45,829 2,155 3,423 Palladium Ozs 61,734 60,380 22,342 19,667 792 1,231 Rhodium Ozs 23,009 22,079 8,123 6,953 592 830 Gold Ozs 987 990 494 495 8 12 Total PGM Ozs 211,438 208,035 81,333 72,944 3,548 5,496 (3E+Au) Iridium Ozs 8,748 8,570 3,415 3,093 293 417 Ruthenium Ozs 37,703 36,065 14,285 11,874 1,339 1,936 Total PGE Ozs 257,889 252,669 99,034 87,911 5,179 7,849 (5E+Au) Nickel Tons 215 208 118 113 5 8 Copper Tons 91 93 61 62 2 3 Statistics Everest Mimosa Platinum Mile Unit 6 months 6 months 6 months 6 months 6 months Dec Dec 2007 Dec 2008 Dec 2007 Dec 2008 2008 Safety DIIR Rate/ 0.58 0.84 0.17 0.11 0 200,000 hrs Revenue Gross Million 226 995 110 107 74 revenue PGM basket $/oz 1,224 1,553 1,196 1,074 841 Price Gross cash % (89) 66 64 71 43 margin Nickel $/lb 6.76 13.47 8.35 15.66 5.83 Price Copper $/lb 2.63 3.38 3.00 3.46 2.12 Price Ave R/$ 8.79 6.93 - - 8.79 rate On Mine
Cash Costs R/ton 511 264 - - 7 Per ROM ton $/ton 58 38 40 36 1
Per PGM R/oz 6,686 3,493 - - 3,387 (3E+Au) $/oz 761 504 469 414 384 Per PGE R/oz 5,471 2,837 - - - (5E+Au) $/oz 623 409 446 394 - Production Underground ton '000s 839 1,149 1,046 971 - Open Pit ton - 117 - - - 4,574 '000s Total ton 839 1,266 1,046 971 4,574 '000s Plant Head g/t 2.89 2.97 3.61 3.56 0.72 PGM Recoveries % 83 79 74 76 9 Platinum Ozs 37,643 56,787 44,016 39,641 5,269 Palladium Ozs 19,365 28,062 33,540 30,098 2,817 Rhodium Ozs 6,499 9,946 3,523 3,079 817 Gold Ozs 562 765 5,790 5,214 183 Total PGM Ozs 64,068 95,560 86,870 78,032 9,087 (3E+Au) Iridium Ozs 2,487 3,911 2,962 2,708 - Ruthenium Ozs 11,740 18,183 1,535 1,395 1,453 Total PGE Ozs 78,295 117,654 91,367 82,135 10,539 (5E+Au) Nickel Tons 122 149 1,217 1,078 54 Copper Tons 64 72 995 888 16 Other MattersSylvaniaAQPSA and AQP ("AQP Group") have since mid 2008, directed correspondence to theSylvania group of companies ("Sylvania Group"), recording the AQP Group'sdissatisfaction with the manner in which the Sylvania Group has managed itscontractual and business relationship with the AQP Group. This dissatisfactionextends to the manner in which the Sylvania Group has failed to honour thespirit of the agreement concluded between the AQP Group and the Sylvania Groupfor the Everest North project, for which AQPSA is the holder of a prospectingright and has the exclusive right to apply for a mining right in accordancewith the provisions of the MPRD Act 28 of 2002, which is contrary to the recentstatements made by the Sylvania Group in the financial press to the effect thatthe Sylvania Group is entitled to make such an application for a mining right.To date and despite requests for a response, the AQP Group has not received aconclusive response to the aforementioned correspondence and the AQP Group hasreferred the dispute with the Sylvania Group to its lawyers to provide the AQPGroup with an opinion as to the merits of the dispute with the Sylvania Group,whereafter decisive legal action against the Sylvania Group may follow.Aquarius Platinum LimitedIncorporated in BermudaExempt company number 26290Board of DirectorsNicholas Sibley Non-executive Chairman Stuart Murray Chief Executive Officer David Dix Non-executive Timothy Freshwater Non-executive Edward Haslam Non-executive Sir William Purves Non-executive Kofi Morna Non-executive
Zwelakhe Mankazana Non-executive (appointed 5 November 2008)
Audit/Risk Committee Sir William Purves (Chairman)David DixEdward HaslamNicholas Sibley
Remuneration/Succession Planning Committee
Edward Haslam (Chairman)Nicholas SibleyNomination Committee
The full Board comprises the Nomination Committee
Company SecretaryWilli BoehmAQPSA ManagementStuart Murray Executive Chairman Hugo H¶ll Managing Director H©l¨ne Nolte Director: Finance Hulme Scholes Commercial Director Anton Lubbe Operations Director: West Anton Wheeler Operations Director: East Graham Ferreira General Manager: Group Admin & Company Secretary Mkhululi Duka General Manager: Group Human Resources & Transformation Wessel Phumo General Manager: Marikana Jacques Pretorius General Manager: Everest Gabriel de Wet General Manager: Engineering ACS (SA) Management Paul Smith Director: New Business Mimosa Mine Management Winston Chitando Managing Director Herbert Mashanyare Technical Director Peter Chimboza Operations Director Fungai Makoni Finance Executive & Company Secretary Issued Capital
At 31 December 2008, the Company had in issue: 327,095,634 fully paid common shares and 1,680,305 unlisted options.
Substantial Shareholders 31 December 2008 Number of Shares Percentage
Savannah Consortium 65,042,856 19.88% HSBC Custody Nominees (Australia Limited) 20,811,259 6.36%
Nutraco Nominees Limited 16,530,643 5.05% Trading InformationISIN number BMG0440M1284ADR ISIN number US03840M2089Broker (LSE) (Joint) Broker (ASX) Sponsor (JSE) Merrill Lynch Euroz Securities Investec Bank Limited International Level 14, The Quadrant 100 Grayston Drive 2 King Edward St 1 William Street, Perth Sandown, Sandton 2196 London, EC1A 1HQ WA 6000 Telephone: +27 (0)11 Telephone: +44 (0)20 Telephone: +61 (0)8 9488 286 7326 7628 1000 1400 Investec Securities Limited Investec Bank plc 2 Gresham St, London, EC2V 7QP Telephone: +44 (0)20 7597 5970
Aquarius Platinum (South Africa) (Proprietary) Ltd
100% Owned (At 31 December 2008)
(Incorporated in the Republic of South Africa)
Registration Number 2000/000341/07
Block A, 1st Floor, The Great Wall Group Building, 5 Skeen Boulevard, Bedfordview, South Africa 2007
Postal Address P O Box 1282, Bedfordview, 2008, South Africa.Telephone: +27 (0)11 455 2050Facsimile: +27 (0)11 455 2095
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,AustraliaPostal Address PO Box 485, South Perth, WA 6151, AustraliaTelephone: +61 (0)8 9367 5211Facsimile: +61 (0)8 9367 5233Email: [email protected]
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
ACS (SA) Aquarius Platinum (SA) (Corporate Services) (Pty) Limited BEE Black Economic Empowerment CTRP Chromite Ore 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 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
DME South African Government Department of Minerals and Energy Affairs Dollar United States Dollar or $ EMPR Environmental Management Programme Report
Everest Everest Platinum Mine
Great A PGE bearing layer within the Great Dyke Complex in Zimbabwe Dyke Reef
g/t Grams per tonne, measurement unit of grade (1g/t = 1 part per million)
JORC Australasian code for reporting of Mineral Resources and Ore Reserves code JSE JSE Securities Exchange South Africa
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 MRC Murray & Roberts Cementation nm Not measured NOSA National Occupational Safety Association NUM South African National Union of Mineworkers PGE(s) Platinum Group Elements plus Gold. Five metallic elements commonly (6E) 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) Platinum Group Metals plus Gold. Aquarius reports the PGMs as (4E) comprising Pt+Pd+Rh plus Au (gold) with the Pt, Pd and Rh being the most economic platinoids in the UG2 Reef P&SA1 Pooling & Sharing Agreement between AQPSA and RPM Ltd on Kroondal P&SA2 Pooling & Sharing Agreement between AQPSA and RPM Ltd on Marikana PMR Platinum Mile Resources Pty Ltd R South African Rand 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 SavCon The Savannah Consortium - the principal Black Empowerment Investor in Aquarius Platinum 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 Z$ Zimbabwe Dollar
For further information please contact:
In Australia:Willi Boehm+61 (0)8 9367 5211
In the United Kingdom and South Africa
Nick Bias+ 41 (0)79 888 [email protected]
vendorRelated Shares:
AQP.L