27th Jul 2006 10:30
AQUARIUS PLATINUM LIMITED 4TH QUARTERLY RESULTS: 30 June 2006Marikana Pool and Share Agreement shows its promiseHighlights of the QuarterGroup attributable production increased 8% to a new quarterly record of 129,162PGM ouncesAverage group PGM basket prices up 21% to $1,192 per ounceStrong improvements in cash margins across all operations, notably MarikanaP&SA1 at Kroondal99,406 PGM ounces produced for the quarter (Aquarius attributable : 49,703 PGMounces)Difficult geology at No. 3 shaft and reduced number of mining shifts impactproductionIncreased mine development to provide positive results by next quarterCash margin increased to 66% from 61% in the previous quarterDecline sinking at No. 5 Shaft remains ahead of scheduleP&SA2 at MarikanaRecord 31,992 PGM ounces produced for the quarter (Aquarius attributable :15,996 PGM ounces)Open pit contractor increased production to 288,729 tons from 93,000 tons inthe previous quarterUnderground mine construction and production ramp up produced 109,470 tonsCash margin for the quarter increased substantially to 36% from 4% in theprevious quarterEverest43,838 PGM ounces produced during for the quarterUnprotected strike action in April by underground contractor employees impactsmine ramp-upOpencast operations on target producing 287,405 tonsUnderground development advances, producing 229,226 tonsGross cash margin increases to 66% from 53% in the previous quarterMimosa37,395 PGM ounces (Aquarius attributable : 18,697 PGM ounces)Wedza Phase IV Upgrade Expansion completed ahead of schedule and on budgetUnderground tonnages increased 3% to 451,578 tonsGross cash margin maintained strong at 66%CTRPRecord 1,856 PGM ounces produced for the quarter (Aquarius attributable : 928PGM ounces)Further improvement in recoveries to 68% from 51% in the previous quarterOperation enjoys highest basket price in Group due to significant contributionfrom good rhodium priceGross cash margin increases to 88% from 65% Commenting on the results, Stuart Murray, CEO of Aquarius Platinum said, "As weclose the 2006 financial year, I am pleased to report that Aquarius, despite atough quarter at certain operations, has continued to deliver increases inproduction at a time of great prices for the platinum group metals. Thisquarter should, however, be recognised for our successes at Marikana, where theteam has delivered a strong turn-around in ore quality, grade and tonnage, andthe plant has achieved record recovery rates. Mimosa has again put in asterling performance, including commissioning the Wedza IV upgrade, which willraise production in the 2007 financial year." Production by Mine PGMs Quarter Ended Full Year Ended Sep 2005 Dec 2005 Mar 2006 Jun 2006 Jun 2006 Jun 2005 % +/- Kroondal 115,362 117,175 107,501 99,406 439,444 324,730 35% Marikana 27,322 20,789 5,810 31,992 85,912 99,161 (9)% Everest - 7,111 46,081 43,838 97,031 - - Mimosa 36,368 35,394 33,252 37,395 142,407 130,167 9% CTRP 1,363 1,533 1,484 1,856 6,234 2,117 194% Total 180,415 182,002 194,128 214,487 771,028 556,175 39% Production by Mine Attributable to Aquarius PGMs Quarter Ended Full Year Ended Sep 2005 Dec 2005 Mar 2006 Jun 2006 Jun 2006 Jun 2005 % Kroondal 57,681 58,588 53,751 49,703 219,722 162,365 35% Marikana 27,322 10,394 2,905 15,996 56,617* 99,161 (43)% Everest - 7,111 46,081 43,838 97,030 - - Mimosa 18,184 17,697 16,626 18,697 71,204 65,084 9% CTRP 682 767 742 928 3,119 1,059 194% Total 103,869 94,557 120,105 129,162 447,693 327,669 37% *Year on year figures are not comparable due to implementation of the MarikanaPool & Share Agreement (P&SA2) in October 2005 Metals PricesStrong prices for the PGMs were achieved over the quarter, recording highaverage prices despite considerable volatility. Continued long-term supplyconcerns coupled with short-term supply constraints out of South Africa sawplatinum average $1,190 per ounce over the quarter, reaching highs of $1,330per ounce. Rhodium posted a great performance, averaging $5,028 per ounce inthe quarter, peaking at $6,275 per ounce. Palladium, despite greater supplythan platinum also saw price increases, averaging $346 per ounce. Gold priceswere also up, averaging $629 per ounce for the quarter. By-products - ruthenium, iridium, nickel, copper and cobalt also put in astrong showing. Prices for these metals continued to strengthen over thequarter. Nickel prices averaged $9.03 per pound and copper $3.27 over thequarter, quarter on quarter increases of 34% and 46% respectively. The value of the South African PGM basket rose 24% over the quarter to R8,655per PGM ounce. In US Dollar terms, this was a 14% increase over the previousquarter to $1,333 per PGM ounce. In South Africa, the Rand : US Dollarexchange rate weakened by 16% over the quarter from 6.07 to 7.15. The average Zimbabwean PGM basket over the quarter was 13% higher at US$854 perPGM ounce, and closed 18% higher quarter on quarter at US$877 per PGM ounce.Commodity basket prices achieved at Aquarius operations (US$ per PGM ounce) Basket Prices (2006) Q1 Q2 Q3 Q4 Kroondal 813 946 1,064 1,306 Marikana 800 925 1,028 1,275 Everest - 886 964 1,162 Mimosa 614 662 750 854 CTRP 940 1099 1,276 1,449 AQUARIUS PLATINUM (SOUTH AFRICA) (PTY) LTD (Aquarius Platinum 50.5%) P&SA1 at KroondalSafetyThe 12-month rolling average DIIR for the quarter improved to 0.79 from 0.93 inthe previous quarter. Kroondal achieved 1,000,000 fatality-free shifts.MiningOperations constant with underground hoisting 1.3 million tons and opencastproducing 46,000 tonsSignificant increases in development are underway to provide more face to copewith higher level of production and more than usual potholing at No. 3 shaftDecline development at new K5 shaft on track to intersect reef late in 2006ProcessingPlant processed 1.35 million tons including 46,000 tons of opencast materialProduction fell to 99,406 PGM ounces as a combination of public holidays, anindustrial stoppage and reduced face availability impacted ore availabilityduring the quarterConcentrator recoveries increased 1% to 79% RevenueThe PGM basket price for the quarter increased 23% to $1,306 per PGM ounce,resulting in mine revenue of R830 million for the quarter (Aquarius share :R415 million). The cash margin for the quarter rose to 66%.OperationsOver the quarter, six public holidays and a national one day stay-away reducedoperating days to 85. Underground operations produced a reduced 1.3 milliontons due to the loss of days and a reduction in face length availability at No.3 Shaft. Opencast produced a further 46,000 tons. Higher than usual potholingat the No. 3 and East Shafts continued to hamper production for the secondquarter and affected grade during the quarter. To overcome this issue,increased face availability is being created by advancing development ahead ofplan and equipping additional strike belts. This issue has had an impact onunit costs. Plant head grade improved marginally by 0.7% to 2.87 grams per ton. Improvements in head grade as a result of development are anticipated by theend of the calendar year. The processing plants treated 1.353 million tons, a9% decrease quarter on quarter. The previous quarter included 106,000 tons ofstockpile material processed with no available surface stockpiles this quarterto assist production. The K2 processing plant benefited from engineeringmodifications, with some circuit changes made to enhance performance on startup after routine maintenance. Consequently plant recoveries improved by 1% to79%. As a consequence of lower throughput, and yet despite an improved plantperformance, PGM production for the quarter was lower at 99,406 PGM ounces(Aquarius attributable 49,703 PGM ounces). The development of K5, the fifth decline, continues on schedule with reefintersection anticipated by the end of the calendar year 2006. In addition,development of additional mining areas is ongoing throughout the central andeastern areas of the mine. During the quarter, a considerable 2,279 metres ofprimary development was achieved to create additional mining face. In additionto the primary development, 1,221 metres of secondary development tore-establish around potholes was completed. Development requiresinfrastructure and consequently, related engineering costs nearly doubled toR21.4 million, unavoidably increasing cash costs.Operating CostsCash cost per ROM ton increased by 16% to R211 per ton due higher costs andlower production. Consequently, cash costs per PGM ounce for the quarterincreased 14% to R2,871. These costs included ledging and sinking costs ofR271 per PGM ounce (up 24%), development costs of R60 per PGM ounce (up 76%)and engineering equipping costs of R215 per PGM ounce (up 100%).P&SA1 at Kroondal: Operating Costs 4E (Pt+Pd+Rh+Au) 6E 6E net of by-products (Ni (Pt+Pd+Rh+Ir+Ru+Au) &Cu) P&SA1 at R 2,871 per PGM R 2,364 per PGE R 2,341 per PGE ounce Kroondal ounce ounce Early indications are that the development investments made at Kroondal willstart to bear fruit in the next six months as production output is expected torise and the associated economies of scale kick-in.P&SA1 Project Capital ExpenditureDuring the quarter R26.9m was spent on ongoing capital mainly on conveyorsystems and R23.4m was spent on expansion capital mainly at the new K5 shaft(Aquarius share : 50%). The K5 project is on track and no cost problems havebeen identified.Kroondal: Metal in concentrate produced (PGM ounces)Quarter ended Pt Pd Rh Au PGMs PGMs attributable to Aquarius Jun 2006 59,057 29,194 10,649 506 99,406 49,703 Mar 2006 64,248 31,372 11,342 539 107,501 53,751 Dec 2005 69,830 34,332 12,422 591 117,175 58,588 Sep 2005 69,129 33,420 12,250 563 115,362 57,681 P&SA2 at MarikanaSafetyThe 12 month rolling DIIR rate deteriorated to 0.31 from 0.23 in the previousquarter, due to one lost time injury for the quarter. By the end of thequarter 718,330 fatality free shifts were recorded.MiningOpen cast production increased to 288,729 tonsUnderground production started ramping up, totaling 109,470 tons for thequarterSurface stockpiles reduced to 102,000 tonsProcessingPlant processed 420,199 tonsSignificant improvement in concentrator recoveries to 75% from 66% in theprevious quarterA new mine record of 31,992 PGM ounces were produced RevenueThe PGM basket price for the quarter increased 24% to $1,275 per PGM ounce,resulting in mine revenue of R211 million for the quarter (Aquarius shareR105.5 million). During the quarter 15,092 tons of ore were toll treated fromneighbouring operations generating minor additional revenues. Marikana's cashmargin for the quarter increased to 36% from 4% in the previous quarterreflecting the production ramp-up and the strong PGM prices. OperationsOperations produced 398,199 ROM tons with 288,729 from opencast operations andimportantly 109,470 tons from underground operations starting to ramp up. At the end of the quarter, the stockpile contained 102,000 tons down from the124,000 at the end of the previous quarter. Plant head grade improved 8% to 3.16 grams per tonne. Recoveries improved by14% to 75%, due to improved ore quality and enhancements undertaken to theplant circuit. As a combination of increased tonnages, improved ore quality, higher headgrades and a significant improvement in recoveries, PGM production achieved was31,992 PGM ounces. At No. 1 Shaft, previously referred to as the Trial Mining Project,construction on the conveyor infrastructure was completed and development is ontrack to build production up to 25,000 tons per month in the new financialyear. The geology remains favourable for conventional board and pillar miningand the decline system is now developed to a distance of 300m down dip from theportals. At No. 4 shaft (transferred from P&SA1) the decline system isdeveloped to a distance of 360 metres. The production build up remains ontarget and mining conditions are acceptable.Operating CostsCash costs per ROM ton decreased to R324, a 38% improvement compared to theprevious quarter. Cash costs per PGM ounce decreased to R4,255 per PGM ounce,a 49% improvement over the previous quarter. Reduced costs are reflective ofthe increased production achieved over the quarter. Marikana: Operating Costs 4E (Pt+Pd+Rh+Au) 6E 6E net of by-products (Ni& (Pt+Pd+Rh+Ir+Ru+Au) Cu) Marikana R 4,255 per PGM R 3,516 per PGE ounce R 3,291 per PGE ounce ounce P&SA2 Expansion projectConstruction of the DMS plant is progressing to schedule. R20.7m expansioncapex was spent in the quarter, with the total spent to date of R81.3 million(Aquarius share : 50%). Marikana: Metal in concentrate produced (PGM ounces)Quarter ended Pt Pd Rh Au PGMs PGMs attributable to Aquarius Jun 2005 19,036 9,531 3,162 263 31,992 15,996 Mar 2005 3,591 1,642 534 43 5,810 2,905 Dec 2005 12,887 5,879 1,861 162 20,789 10,394 Sep 2005 17,244 7,409 2,466 203 27,322 27,322 *Quarter on quarter figures are not directly comparable due to implementationof the Marikana Pool & Share Agreement (P&SA2) in October 2005 Contractor dispute with Moolman MiningAQPSA resiled from the mining contract with Moolman Mining during December 2005on the basis of a misrepresentation on the part of Moolman Mining when themining contract was originally concluded. This misrepresentation becameapparent to AQPSA after the audit, conducted by KPMG during October 2005, intothe rise and fall formula applied in the mining contract.In the notice of recission, AQPSA advised Moolman Mining that AQPSA wouldinstitute a damages claim in an amount of R963,775,098 was served on GrinakerLTA on 18 April 2006. Moolman Mining has indicated their intent to defend theaction by serving the applicable notice in law.Arbitration was initiated by Moolman Mining before AQPSA resiled from themining contract. AQPSA launched an application to stay these proceedings. This application was served on Moolman Mining on 15 May 2006 with them havingin return, served notice of their intention to oppose same. Everest Platinum MineSafetyThe 12 month rolling average DIIR improved to 0.73 from 0.82 for the quarter.No disabling injuries occurred during the quarter.MiningOpencast operations produced 287,405 tonsUnderground development advanced, producing 229,226 tonsRemaining stockpiles were consumed during the quarterProcessingPlant processed 659,636 tonsRecoveries continue to improve, increasing to 72% from 65%Quarterly production was 43,838 PGM ounces RevenueThe PGM basket price for the quarter increased 21% to $1,162 per PGM ounce,resulting in mine revenue of R326 million for the quarter. The cash margin forthe quarter rose to 66%. OperationsOperational ramp up continued, with opencast and underground operationproducing a total 516,631 tons, a 38% increase compared to the previousquarter. Opencast mining was on target, with a total of 287,405 tons produced during thequarter. The opencast mining contractor continues to perform well in terms ofboth production and cost. For the quarter, opencast mining provided themajority of the plant feed. Opencast ROM grade was lower than the previousquarter as mining focussed in the lower grade areas in the North pit. With thefocus on developing underground feed, the balance will start to shift towardsunderground feed by the end of the calendar year. Underground mining progress continued during the quarter, with on-reef declinedevelopment on schedule and the establishment of stoping sections continuing. Production output for the period was adversely affected when the employees ofthe underground mining contractor embarked on an unprotected two week strikeduring April, citing contractor wages as the cause of the strike. Nevertheless, underground production showed a 46% increase in production to229,226 ROM tons for the quarter. Despite the industrial action, equipping ofthe underground mining conveyor installations, ventilation and mining serviceswere completed on schedule. Concentrator throughput was 659,636 tons milled during the period, the balanceprovided from stockpile. Because lower grade opencast material provided themajority of the feed, plant head grade decreased to 2.9 grams per tonne from3.2 grams per tonne. Operational stability saw further improvements, withmetallurgical recoveries increasing by 11% to 72%. This resulted in productionof 43,838 PGM ounces for the quarter. Operating CostsCash costs increased 7% to R167 per ROM ton milled and 10% to R2,507 per PGMounce (including ledging, sinking and underground infrastructure cost of R163per PGM ounce). The increase is attributed to the ramp up phase.Everest Operating Costs 4E (Pt+Pd+Rh+Au) 6E 6E net of by-products (Ni& (Pt+Pd+Rh+Ir+Ru+Au) Cu) Everest R2,507 per PGM ounce $2,149 per PGE ounce $2,090 per PGE ounce Project Capital ExpenditureCapital expenditure commitments totalled R672 million at the end of the quarterwith capital expenditure spent to date of R648 million. Prior capitalisedexpenditure of R12 million was reversed to working costs due to revisedaccounting standards relating to revenue capitalised during commissioning inDecember 2005 month.Everest: Metal in concentrate produced (PGM ounces)Quarter ended Pt Pd Rh Au PGMs Jun 2006 24,699 14,844 3,817 478 43,838 Mar 2006 27,257 14,913 3,472 439 46,081 Dec 2005 4,161 2,351 532 67 7,111 MIMOSA INVESTMENTS (Aquarius Platinum 50%) Mimosa Platinum MineSafetyThe 12-month rolling average DIIR deteriorated to 0.28 for the quarter from0.23 in the previous quarter.MiningUnderground production increased 3% to 451,578 tonsThe surface stockpile increased to a total 211,713 tons at the quarter endExpansion project completed ahead of time and on budgetProcessingTon processed increased 10% to 403,037 tonsConcentrator plant recoveries increased by 1% to 78%Total production increased 12% to 37,395 PGM ounces (Aquarius attributable18,697 PGM ounces) RevenueThe PGM basket price for the quarter increased by 14% to $854 per PGM ouncecompared with $750 per ounce in the previous quarter. The nickel price rose by21% to $7.42 per pound from $6.14 per pound over the corresponding period. Together with the contribution from base metals, approximately 25% of grossrevenue, sales revenue for the quarter of $31 million, an increase of $4million. The gross cash margin was unchanged at 66%. OperationsDuring the quarter mining operations hoisted 451,578 tons compared to 399,493tons in the previous quarter. Tons milled during the quarter totalled 403,037tons, with the balance going to a stockpile totaling 211,713 tons at thequarter end. The average plant head grade was 3.68 grams per tonne, steady compared to 3.69grams per tonne in the previous quarter. Recoveries improved by 2% in the quarter. PGM production for the quarter increased by 12% to 37,395 ounces (Aquariusattributable : 18,697 ounces).Mimosa: PGMs in concentrate produced (ounces)Quarter ended Pt Pd Rh Au PGMs PGMs attributable to Aquarius Jun 2006 18,904 14,417 1,475 2,599 37,395 18,697 Mar 2006 16,820 12,809 1,306 2,317 33,252 16,626 Dec 2006 17,961 13,582 1,390 2,461 35,394 17,697 Sep 2005 18,548 13,915 1,407 2,498 36,368 18,184 Mimosa: Base Metals in concentrate produced (tons) Mine Production Attributable to Aquarius Quarter ended Ni Cu Co Ni Cu Co Jun 2006 506 423 15 253 211 7 Mar 2006 452 383 14 226 191 7 Dec 2005 488 410 15 244 205 8 Sep 2005 512 422 15 256 211 8 Operating costsCash costs for the quarter improved to $328 per PGM ounce ($96 per PGM ounceafter by-product credits), a 1% improvement compared to the previous quarter'sfigure of $331 per PGM ounce ($108 per PGM ounce after by-product credits). The reduction in cash costs was attributable to higher PGM production recordedduring the quarter and higher by-product credits realised during the quarter.Mimosa Operating Costs 4E (Pt+Pd+Rh+Au) 6E 6E net of by-products (Ni,Cu& (Pt+Pd+Rh+Ir+Ru+Au) Co) Mimosa $328 per PGM ounce $310 per PGE ounce $94 per PGE ounce Wedza Phase IV UpgradeThe Wedza Phase IV upgrade project was completed and commissioned two monthsahead of target and on budget. Optimisation work in terms of metal recoveryrates is in progress. Capital ExpenditureCapital expenditure commitments totalled $2.1 million at the end of the quarterwith capital expenditure for the quarter recorded at $5.8 million. AQUARIUS PLATINUM (SA) CORPORATE SERVICES (PTY) LTD Chromite Tailings Retreatment Plant (CTRP) (Aquarius Platinum 50%)SafetyThe DIIR is zero.ProcessingPlant processed 31,625 tons, an increase of 20%Production increased 25% to a record 1,856 PGM ounces producedSignificant improvement in recoveries to 68% from 51% in the previous quarterRevenueThe PGM basket price for the quarter increased 14% to $1,449 per PGM ounce.CTRP revenue for the quarter more than doubled to R18 million (Aquariusattributable R9 million). The cash margin rose to 88% from 65%.OperationsDuring the quarter only current arisings from the Kroondal Chrome Mine were fedto the CTRP. Consistent and stable operation was achieved and recoveries roseto 68% against 51% in the previous quarter. A project to add dump material from the Kroondal Chrome Mine to the CTRP feedis progressing well, and scheduled to complete in August 2007 at a cost ofapproximately R2 million. With an increase in feed planned for the 2007financial year, it is anticipated that PGM production will continue toincrease.Operating CostsCash costs continued to improve, decreasing by 14% to R1,721 per PGM ounce.CTRP Operating Costs 4E (Pt+Pd+Rh+Au) 6E (Pt+Pd+Rh+Ir+Ru+Au) 6E net of by-products CTRP R1,721 per PGM ounce R1,217 per PGE ounce R1,176 per PGE ounce Statistical Information: Kroondal P&SA1 Statistical Information: Kroondal % +/- Current Previous Change Current Previous % YTD Data reflects 100% of mine operations Quarter 12 12 Year Unit Quarter Quarter on months months on Year Jun 2006 Mar 2006 Quarter to Jun to Jun Year 2006 06 05 Safety Rate/200,000 DIIR man hours 0.96 0.93 (3) 0.96 0.75 (22) 0.96 Revenue Gross Revenue R'M 830 686 21 2,742 1,250 119 2,742 PGM basket Price $/oz 1,306 1,064 23 1,033 711 45 1,033 Gross cash margin % 66 61 8 59 40 48 59 Nickel Price $/lb 9.03 6.72 35 7.02 6.92 1 7.02 Copper Price $/lb 3 2.24 46 2 1.43 60 2.29 Ave R/$ rate 6.32 6.13 3 6.37 6.17 3 6.37 Cash Costs on-mine Per ROM ton R/ton 211 181 16 187 177 5 187 $/ton 33 30 13 29 29 1 29 Per PGM oz (3E+Au) R/oz 2,871 2,514 14 2,565 2,311 11 2,565 $/oz 454 410 11 403 375 7 403 Per PGE (5E+Au) R/oz 2,364 2,075 14 2,111 1,904 11 2,111 $/oz 374 339 11 331 309 7 331 Capex Current/Sustaining 100% R'000s 26,881 5,237 413 65,673 20,521 220 65,673 $'000s 4,255 854 398 10,309 3,326 210 10,309 Expansion 100% R'000s 23,427 (14,631) (260) 66,732 462,374 (86) 66,732 $'000s 3,708 (2,386) (255) 10,476 74,939 (86) 10,476 Mining Processed Underground ROM Ton '000 1,308 1,420 (8) 5,639 3,974 42 5,639 Open Pit ROM Ton '000 46 72 (37) 403 266 51 403 Total ROM Ton '000 1,353 1,492 (9) 6,041 4,240 42 6,041 Grade Plant Head g/t 2.87 2.85 1 2.89 3.04 (5) 2.89 Recoveries % 79 78 1 78 79 (1) 78 PGM Production Platinum Ozs 59,057 64,247 (8) 262,263 194,290 35 262,263 Palladium Ozs 29,194 31,372 (7) 128,318 93,984 37 128,318 Rhodium Ozs 10,649 11,342 (6) 46,663 34,916 34 46,663 Gold Ozs 506 540 (6) 2,201 1,540 43 2,201 Total PGM (3E+Au) Ozs 99,406 107,501 (8) 439,444 324,730 35 439,444 Total PGE (5E+Au) Ozs 120,722 130,222 (7) 534,069 394,222 35 534,069 Base Metals Production Nickel Tonnes 107 104 3 435 314 38 435 Copper Tonnes 43 49 (12) 191 141 35 191 Chromite (000) Tonnes (000) 74 115 (36) 447 461 (3) 447 Statistical Information: Marikana P&SA2 % +/- Current Previous Change Current Previous % YTD Data reflects 100% of mine operations Quarter 12 12 Year Unit Quarter Quarter on months months on Year Jun 2006 Mar 2006 Quarter to Jun to Jun Year 2006 06 05 Safety Rate/200,000 DIIR man hours 0.31 0.23 35 0.31 0.81 (62) 0.31 Revenue Gross Revenue R'M 211 51 314 520 364 43 520 PGM basket Price $/oz 1,275 1,028 24 1,007 713 41 1,007 Gross cash margin % 36 4 929 16 (10.0) n/a 16 Nickel Price $/lb 9.03 6.72 35 7.02 6.92 1 7.02 Copper Price $/lb 3.27 2.24 46 2.29 1.43 60 2.29 Ave R/$ rate 6.32 6.13 3 6.37 6.17 3 6.37 Cash Costs on-mine Per ROM ton R/ton 324 520 (38) 348 264 32 348 $/ton 51 85 (40) 55 43 27 55 Per PGM oz (3E+Au) R/oz 4,255 8,416 (49) 5,069 4,035 26 5,069 $/oz 673 1,373 (51) 796 654 22 796 Per PGE (5E+Au) R/oz 3,516 6,974 (50) 4,203 3,393 24 4,203 $/oz 556 1,138 (51) 660 620 6 660 Capital expenditure - Current/Sustaining 100% R'000s 2,279 1,202 90 8,521 19,362 (56) 8,521 $'000s 361 196 84 1,338 3,138 (57) 1,338 Expansion 100% R'000s 20,799 50,591 (59) 81,321 - - 81,321 $'000s 3,292 8,253 (60) 12,766 - - 12,766 Mining Processed Underground ROM Ton '000 106 43 147 178 - - 178 Open Pit ROM Ton '000 314 51 516 1,072 1,515 (29) 1,072 Total ROM Ton '000 420 94 347 1,250 1,515 (17) 1,250 Grade Plant Head g/t 3.16 2.93 8 3.20 3.60 (11) 3.20 Recoveries % 75 66 14 67.00 57 18 67 PGM Production Platinum Ozs 19,036 3,591 430 52,757 63,868 (17) 52,757 Palladium Ozs 9,531 1,642 480 24,461 26,413 (7) 24,461 Rhodium Ozs 3,162 534 492 8,023 8,061 (0) 8,023 Gold Ozs 263 43 512 671 819 (18) 671 Total PGM (3E+Au) Ozs 31,992 5,810 451 85,912 99,161 (13) 85,912 Total PGE (5E+Au) Ozs 38,716 7,011 452 103,615 117,908 (12) 103,615 Base Metals Production Nickel Tonnes 66 8 725 146 133 10 146 Copper Tonnes 38 4 850 84 73 15 84 Chromite (000) Tonnes (000) 18 13 38 135 247 (45) 135 Statistical Information: Everest % +/- Current Previous Change Current Previous % YTD Data reflects 100% of mine operations Quarter 12 12 Year Unit Quarter Quarter on months months on Year Jun 2006 Mar 2006 Quarter to Jun to Jun Year 2006 06 05 Safety Rate/200,000 DIIR man hours 0.73 0.82 (11) 0.73 - - 0.73 Revenue Gross Revenue R'M 326 225 45 550 - - 550 PGM basket Price $/oz 1,162 964 21 1,037 - - 1,037 Gross cash margin % 66 53 25 61 - - 61 Nickel Price $/lb 9.03 6.72 34 7.02 - - 7.02 Copper Price $/lb 3.27 2.24 46 2.29 - - 2.29 Ave R/$ rate 6.32 6.14 3 6.37 - - 6.37 Cash Costs on-mine Per ROM ton R/ton 167 156 7 161 - - 161 $/ton 26 25 (5) 25 - - 25 Per PGM oz (3E+Au) R/oz 2,507 2,280 10 2,390 - - 2,390 $/oz 397 371 7 375 - - 375 Per PGE (5E+Au) R/oz 2,149 1,974 9 2,057 - - 2,057 $/oz 340 321 6 323 - - 323 Capital expenditure - Current/Sustaining 100% R'000s 7,108 - 7,108 - - 7,108 $'000s 1,125 1,116 - - 1,116 Expansion 100% R'000s (11,860) 67,094 (118) 391,972 - - 391,972 $'000s (1,877) 10,927 (117) 61,532 - - 61,532 Mining Processed Underground ROM Ton '000 229 202 13 471 - - 471 Open Pit ROM Ton '000 431 473 (9) 991 - - 991 Total ROM Ton '000 660 675 (2) 1,462 - - 1,462 Grade Plant Head g/t 2.86 3.22 (11) 3.04 - - 3.04 Recoveries % 72 65 11 68 - - 68 PGM Production Platinum Ozs 24,699 27,257 (9) 56,118 - - 56,118 Palladium Ozs 14,844 14,913 (0) 32,108 - - 32,108 Rhodium Ozs 3,817 3,472 10 7,821 - - 7,821 Gold Ozs 478 439 9 984 - - 984 Total PGM (3E+Au) Ozs 43,838 46,081 (5) 97,031 - - 97,031 Total PGE (5E+Au) Ozs 51,145 53,202 (4) 112,717 - - 112,717 Base Metals Production Nickel Tonnes 76 54 40 138 - - 138 Copper Tonnes 41 28 45 74 - - 74 Chromite (000) Tonnes (000) - - - - Statistical Information: Mimosa Data Reflects 100% of Current Previous +/- % YTD Previous +/- % Rolling mine operations Quarter Quarter Quarter on 12 months 12 months 12 Months 12 Months Unit Jun 06 Mar 06 Quarter Jun 06 Jun 05 Ytd Jun 06 Safety DIIR Rate/200 000 man hours 0.36 0.40 10 0.28 0.31 10 0.28 Revenue Gross Revenue US$M 31 27 15 113 84 35 113 PGM basket Price US$/oz 854 750 14 713 590 21 713 Gross cash margin % 66 66 4 64 60 7 64 Nickel Price US$/lb 7.42 6.14 21 6.64 6.51 2 6.64 Copper Price US$/lb 3 2 27 2 1 55 2 Cash Costs Per Rom ton US$/ton 30 30 (1) 31 33 4 31 Per PGM ounce (3E+Au) US$/oz 328 331 1 336 357 6 336 Per PGM ounce (3E) after by-product US$/oz 96 108 11 100 140 29 100 credits Per 6 PGM ounce 310 313 1 318 339 6 318 (5E+Au) US$/oz Per 6 PGM ounce (5E+Au) after US$/oz 94 105 10 98 135 28 98 by-product credits Capital Expenditure Current US$ ' 000s 2,967 705 (321) 7,999 13,672 41 7,999 Expansion US$ ' 000s 2,895 6,526 56 10,471 1,108 (845) 10,471 Mining Underground RoM ton '000 452 399 13 1,713 1,432 20 1,713 Grade Plant Head g/t 3.68 3.69 0 3.71 3.69 1 3.71 Recoveries % 78 77 1 78 77 1 78 PGM Production Platinum Ozs 18,904 16,820 12 72,232 66,742 8 72,232 Palladium Ozs 14,417 12,809 13 54,722 49,259 11 54,722 Rhodium Ozs 1,475 1,306 13 5,577 5,156 8 5,577 Gold Ozs 2,599 2,317 12 9,876 9,010 10 9,876 Total Ozs 37,395 33,252 12 142,407 130,167 9 142,407 Base Metals Production Nickel Tons 506 452 12 1,958 1,895 3 1,958 Copper Tons 423 383 10 1,638 1,563 5 1,638 Cobalt Tons 15 14 7 59 56 5 59 Note: Cash Cost Per ROM ton calculated using milled tonnage Statistical Information: Chrome Tailings Retreatment Plant % Current Previous Change Current Previous +/- % YTD Data reflects 100% of mine operations Quarter 12 12 Year Quarter Quarter on months months on Year June 2006 Mar 2006 Quarter to June to June Year 2006 Unit 06 05 Safety Rate/200,000 DIIR man hours - - - - - - Revenue Gross Revenue R'M 18 8 119 43 1 3,188 43 PGM basket Price $/oz 1,449 1,276 14 1,207 834 45 1,207 Gross cash margin % 88 65 35 63 37.5 68 63 Nickel Price $/lb 9.03 6.72 35 7.02 - - 7.02 Copper Price $/lb 3 2.24 46 2 - - 2.29 Ave R/$ rate 6.32 6.32 - 6.37 - - 6.37 Cash Costs on-mine Per ROM ton R/ton 101 113 (11) 96 14 605 96 $/ton 16 18 (5) 15 - - 15 Per PGM oz (3E+Au) R/oz 1,721 2,000 (14) 2,507 367 - 2,507 $/oz 272 326 (16) 394 - - 394 Per PGE (5E+Au) R/oz 1,217 1,386 (12) 1,766 - - 1,766 $/oz 193 226 (15) 277 - - 277 Capital expenditure - Current/Sustaining 100% R'000s 572 - - 950 - - 950 $'000s 91 - - 149 - - 149 Expansion 100% R'000s - - - - - - - $'000s - - - - 3,676 - - Feed Processed Feed Processed ROM Ton '000 32 26 20 162 56 188 162 Total ROM Ton '000 32 26 20 162 56 188 162 Grade Plant Head g/t 2.83 2.76 2 3.21 2.71 18 3.21 Recoveries % 68 51 33 40 42 (4) 40 PGM Production Platinum Ozs 1,115 887 26 3,799 1,321 188 3,799 Palladium Ozs 411 334 23 1,378 439 214 1,378 Rhodium Ozs 326 260 25 1,044 353 196 1,044 Gold Ozs 4 3 35 13 4 225 13 Total PGM (3E+Au) Ozs 1,856 1,484 25 6,234 2,117 194 6,234 Total PGE (5E+Au) Ozs 2,626 2,142 23 8,851 2,940 201 8,851 Base Metals Production Nickel Tonnes 1 1 - 4 1 489 4 Copper Tonnes 1 0 - 2 2 13 2 Chromite (000) Tonnes (000) - - - - Aquarius Platinum LimitedIncorporated in BermudaExempt company number 26290 Board of DirectorsNicholas Sibley - Non-executive ChairmanStuart Murray - Chief Executive OfficerDavid Dix - Non-executiveEdward Haslam - Non-executiveSir William Purves - Non-executivePatrick Quirk - Non-executiveZwelakhe Sisulu - Non-executive Audit/Risk CommitteeSir William Purves (Chairman)David DixEdward HaslamNicholas Sibley Remuneration/Succession Planning CommitteeEdward Haslam (Chairman)Nicholas Sibley Nomination CommitteeThe full Board comprises the Nomination Committee Company SecretaryWilli Boehm Issued CapitalAt 30 June 2006, the Company had on issue:84,348,225 fully paid common shares2,343,105 unlisted optionsSubstantial Shareholders 30 June 2006 Number of Shares Percentage Impala Platinum Holdings Ltd 7,127,276 8.63 Nutraco Nominees Limited 5,242,250 6.25 National Nominees Limited 4,541,671 5.42 Broker (LSE) Broker (ASX) Sponsor (JSE) Evolution Securities Ltd Euroz Securities Investec Bank Limited 100 Wood Street Level 14, The Quadrant 100 Grayston Drive London EC2V 7AN 1 William Street Sandown Sandton 2196 Telephone: +44 (0)20 7071 Perth WA 6000 Telephone: +27 (0)11 286 4330 7326 Telephone: +61 (0)8 9488 Facsimile: +44 (0)20 7071 1400 Facsimile: +27 (0)11 291 4451 1066 Facsimile: +61 (0)8 9488 1478 Aquarius Platinum (South Africa) Aquarius Platinum Corporate Services Pty Ltd (Proprietary) Ltd. 100% Owned 50.5% Owned (Incorporated in Australia) (Incorporated in the Republic of South Africa) ACN 094 425 555 Registration Number 2000/000341/ 07 Level 4, Suite 5, South Shore Centre, 85 The Esplanade, South Perth, WA Block A, 1st Floor, The Great 6151,Australia Wall Group Building 5 Skeen Boulevard, Bedfordview PO Box 485 South Africa 2007 South Perth, WA 6151, Australia P O Box 1282 Telephone: +61 (0)8 9367 5211 Bedfordview South Africa 2009 Facsimile: +61 (0)8 9367 5233 Telephone: +27 (0)11 455 2050 Email: [email protected] Facsimile: +27 (0)11 455 2095 Email: [email protected] AQPSA Management Stuart Murray - Executive Chairman Gert Ackerman - Managing Director Ayanda Khumalo - Finance Director Anton Wheeler - Operations Director Graham Ferreira - General Manager Finance & Company Secretary Hugo HĦll - 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 - Operations Director 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 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 NOSA National Occupational Safety Association 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 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 For 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.com ENDAQUARIUS PLATINUM LIMITEDRelated Shares:
AQP.L