25th Oct 2007 07:00
Aquarius PlatinumJSE code: AQPISIN: BMG0440M102925 October 2007First Quarter 2008
Production & Financial Results
Highlights of the Quarter
* Group attributable production increased to a record of 140,357 PGM ounces * Group net profit increased 7% to $49.5 million compared to previous corresponding period
P&SA1 at Kroondal
* Production increased 8% quarter on quarter to 106,493 PGM ounces (Aquarius attributable: 53,246 PGM ounces), despite 148,983 tons lost due to unprotected industrial action * Cash margin for the quarter at 61%, maintained at good levels despite working cost pressures
P&SA2 at Marikana
* Production increased by 9% to 35,200 PGM ounces (Aquarius attributable: 17,600 PGM ounces) * Underground production increased 46% to 298,676 tons, despite 25,900 tons lost due to unprotected industrial action * Gross cash margin for the quarter at 33%, affected by oxidised ore recoveries
Everest
* Production increased by 19% to 48,841 PGM ounces * Record quarter production on basis of improved mining, grade and metallurgical recovery * Gross cash margin for the quarter at 62%, despite contractor issues
Mimosa
* Production 38,660 PGM ounces (Aquarius attributable: 19,330 PGM ounces) * Wedza Phase V expansion delayed * Gross cash margin for the quarter 71%
CTRP
* Production 2,681 PGM ounces (Aquarius attributable: 1,340 PGM ounces)
* Gross cash margin for the quarter at 80%
Commenting on the results, Stuart Murray, CEO of Aquarius said: "The results for the quarter demonstrate a good increase in production at a time of sustained high prices for our commodities. Operating cost pressures and industrial action have, however, reduced earnings, with the group reporting a modest increase in net profit for the quarter when compared to the same quarter in the previous financial year. The challenge at our operations remains achieving efficiencies in the coming quarters in light of the strong production increases already achieved."
Group Attributable Production (PGM Ounces)
Production by Mine
PGMs (4E) Quarter Ended Dec 2006 Mar 2007 Jun 2007 Sep 2007 Kroondal 117,189 102,079 98,370 106,493 Marikana 39,077 30,148 32,286 35,200 Everest 41,191 40,107 40,923 48,841 Mimosa 33,345 34,760 42,732 38,660 CTRP 1,866 1,954 1,877 2,681 Total 232,668 209,048 217,066 231,875
Production by Mine Attributable to Aquarius
PGMs (4E) Quarter Ended Dec 2006 Mar 2007 Jun 2007 Sep 2007 Kroondal 58,594 51,039 49,185 53,246 Marikana 19,538 15,074 16,143 17,600 Everest 41,191 40,107 40,923 48,841 Mimosa 16,672 17,380 21,366 19,330 CTRP 933 977 938 1,340 Total 136,928 124,577 128,994 140,357
Metals Prices and Foreign Exchange
Platinum reported a respectable price increase over the quarter, closing $100 per ounce stronger, or 8% at $1,377 per ounce. Production shortfalls and industrial action in South Africa have resulted in tight supply, reflected in high prices that have increased further in October 2007. Palladium fell 9% over the quarter, closing at $366 per ounce, largely due to speculative behaviour. Rhodium was flat over the quarter, closing at $6,150 per ounce, reflecting ongoing tight supply and demand fundamentals.
PGM basket prices for the Group reached record levels over the quarter in US Dollar terms. At our South African operations, the four element basket price remained above R10,000 per ounce, averaging 1% higher than the previous quarter at R10,651 per ounce, equal to $1,498 per ounce. In Zimbabwe, the average achieved basket price for the quarter averaged 2% higher at $1,065 per ounce.
Average PGM basket prices achieved at Aquarius operations: US$ per PGM ounce (4E)
Basket Prices (Quarter Ended)
Dec 2006 Mar 2007 Jun 2007 Sep 2007 Kroondal 1,287 1,427 1,520 1,518 Marikana 1,270 1,369 1,453 1,480 Everest 1,179 1,331 1,438 1,475 Mimosa 934 950 1,047 1,065 CTRP 1,592 1,806 1,856 1,775 Aquarius Group 1,211 1,326 1,405 1,438Average
The Rand Dollar exchange rate for the quarter averaged 7.11, though strengthening through the quarter to close at 6.88, which impacts on group profitability.
Financials
Aquarius announces consolidated earnings for the quarter to 30 September 2007 of $49.5 million
(US 58.2 cents per share) as the Group continues to deliver improved profits at a time of good PGM metal prices. The results represent a 7.4% increase compared to the previous corresponding period, September 2006.
Production of PGMs attributable to shareholders of Aquarius was 140,357 PGM ounces, up 9% from the previous quarter ended June 2007. Production was higher for the quarter despite unprotected industrial action which reduced production by 148,983 tons at Kroondal and 25,900 tons at Marikana.
Revenue for the quarter, net of currency adjustments, was $189.5 million (comprising sales revenue of $183.7 million and interest income of $5.8 million). High PGM metal prices recorded during the quarter, continued to support a strong cash flow stream resulting in an increase in Group cash of $107 million for the quarter. Gross margins remain strong across the Group with all operations with the exception of Marikana recording margin in excess of 60%. Finance charges for the quarter were consistent at $3.6 million which included a non-cash component of $1.5 million on the unwinding of the rehabilitation provision.
Cost of sales increased as a result of higher production and unit costs due to increases in contractor rates, annual increase in wages and the effect of industrial action.
Depreciation and amortisation was higher at $10 million reflecting the 9% increased production. Amortisation arising from the fair value uplift of mineral rights at $1.8 million was in line with the previous corresponding period.
Aquarius group cash balances at 30 September 2007 were $395 million, an increase of $107.4 million since June 2007. Net operating cash flow remained strong with $194 million received from sales and $83 million paid to suppliers. Material cash flow items (other than mine operations) that affected cash balances during the quarter included capital expenditure of $10.3 million and $0.6 million in income tax paid.
Group cash is held as follows:
AQP $88 million* AQPSA $245 million** ACS(SA) $2 million Mimosa $60 million Total $395 million
* Subsequent to quarter end, $25.5 million was paid out in dividends (30 cents per share) on 5 October 2007
** Included in AQPSA's cash balance are funds of approximately $70 million earmarked for cash backed rehabilitation provisions.
Aquarius Platinum Limited
Consolidated Income Statement
Quarter ended 30 Sep 2007
$'000 Note: Quarter Ended FY ended 30/09/07* 30/09/06* 30/6/07 Aquarius PGM Production (attributable 140,357 140,227 530,726ounces) Revenue (i) 201,918 158,284 710,802 Foreign exchange (ii) (3,580) 10,287 967gain/(loss) Cost of Sales (iii) (86,667) (70,824) (293,238) Gross Profit 111,671 97,747 418,531 Amortisation of fair value uplift of mineral (1,778) (1,976) (7,595)properties Gross profit after amortisation of fair value 109,893 95,771 410,936uplift Admin & other (2,012) (1,709) (8,952)operating costs
Other FX movements (iv) (4,170) 1,948 (2,308)
Finance costs (v) (3,616) (2,950) (15,218) Profit before tax 100,095 93,060 Income tax expense (24,659) (20,762) (90,861) Profit after tax 75,436 72,298 293,597 Minority interest (25,915) (26,357) (106,374) Net profit 49,521 45,941 187,223 EPS (basic - cents) 58.2 54.4 218.5 * Unaudited
Notes on the September 2007 Consolidated Income Statement
(i) Revenue higher due to improved PGM and base metal prices compared to September 2006
(ii 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
(iii) Cost of sales per PGM ounce increased due to impact of inflation and increased unit costs at Marikana and Everest compared to September 2006 as a result of more challenging geology being encountered.
(iv) Reflects foreign exchange movements on net monetary assets
(v) Finance costs includes group debt ($0.4 million), pipeline finance ($1.7 million) and unwinding of
rehabilitation provision ($1.5 million)
(vi) Minority interests reflect 46% outside equity interest of the Savannah Consortium 26% (SavCon) and Impala Platinum Holdings Limited 20% (Implats) in AQPSA
Aquarius Platinum Limited
Consolidated Cash flow Statement
Quarter ended 30 September 2007
$'000 Quarter ended FY ended Note: 30/09/07* 30/09/06* 30/06/07 Net operating cash (i) 114,428 87,561 323,240inflow Net investing cash (ii) (10,359) (14,082) (93,690)outflow Net financing cash (iii) (336) 1,029 (106,544)outflow Net increase in cash 103,733 74,508 123,006held Opening cash balance 287,663 162,425 162,425 Exchange rate 3,623 (6,553) 2,232movement on cash Closing cash balance 395,019 230,380 287,663* Unaudited
Notes on the September 2007 Consolidated Cash flow Statement
(i) Net operating cash flow includes $194 million inflow from sales and $83 million paid to suppliers from operations, income tax paid of $0.6 million and net finance income of $4.0 million
(ii) Reflects development and plant and equipment expenditure of $10.3 million
(iii) Includes dividend paid to shareholders $10 million and proceeds from the exercise of employee options of $2.5 million
Aquarius Platinum LimitedConsolidated Balance SheetAt 30 September 2007$'000 Note: 30/09/07* 30/06/07 Assets Cash assets 395,019 287,663 Current receivables (i) 96,833 100,573 Other current assets (ii) 33,188 26,127 Property, plant and (iii) 213,803 207,360equipment Mining assets (iv) 311,576 311,425 Other non-current assets 13,287 12,026 Total assets 1,063,706 945,174 Liabilities Current liabilities (v) 77,519 50,676 Non-current payables (vi) 55,484 54,228 Non-current (vii) 34,572 35,321interest-bearing liabilities Other non-current (viii) 177,879 172,404liabilities Total Liabilities 345,454 312,629 Net assets 718,252 632,545 Equity Parent entity interest 511,271 456,138 Minority interest 206,981 176,407 Total Equity 718,252 632,545 * Unaudited
Notes on the September 2007 Consolidated Balance Sheet
i. Reflects debtors receivable on PGM concentrate sales
ii. Reflects PGM concentrate inventory
iii. Represents fixed assets within the Group
iv. Mining assets reflects Kroondal, Marikana, Mimosa and Everest mining
(mining rights) assets
v. Includes tax payable ($28 million) and creditors ($49 million)
vi. Includes non-interest bearing portion of AQPSA shareholder loans (Implats
$23 million and SavCon $30 million)
vii. Includes interest bearing debt payable to RMB ($27 million) and deemed
lease liability ($7 million)
viii. Reflects deferred tax liabilities $106 million and provision for closure
costs $72 million
AQUARIUS PLATINUM (SOUTH AFRICA) (PTY) LTD (Aquarius Platinum 54%)
P&SA 1 at Kroondal
Safety
The 12-month rolling average DIIR for the quarter improved to 0.59 from 0.75 in the previous quarter.
Six lost time injuries occurred during the quarter.
Despite the continuous improvement in the injury rate, an fatality occurred on 6 July 2007 at East Shaft,
in which Mr Ernst James Mower, a hydraulic fitter was electrocuted as a result of inter alia not following standard lock-out procedures.
Mining
* The mine recorded a 1% increase in total production to 1,606,664 tones, consisting of 1,523,322 underground and 83,342 open pit tons respectively * Head grade remained consistent at 2.73 g/t * Geological anomalies at the K5 Project have adversely affected the ramp-up to steady-state production
Processing
* Processed tons increased 8% to 1,588,436 tons * Recoveries flat at 76.5% * Production increased 8% to 106,493 PGM ounces from 98,370
Revenue
Revenue at Kroondal increased by 6% to R1,018 million for the quarter (Aquarius share: R509 million) due to increased production and improved commodity prices. The cash margin for the quarter, however, decreased to 61% from 66% in the previous quarter, due to the impact of cost pressures for contractor rate increases.
Operations
Total tons mined increased by 1% to 1,606,664 tons. Underground production increased 1% to 1,523,322 tons and open pit production increased 8% to 83,342 tons.
During the quarter, production was again adversely impacted by unprotected industrial action by the underground contractor Murray and Roberts Cementation employees related to pay issues. It is estimated that this reduced production by 150,000 tons. The contractor is currently addressing the key industrial relations issues with unions at shaft, regional and national levels.
The performance of K5 contractor, Redpath Mining, (previously Deilmann-Haniel) has been negatively affected by adverse geological anomalies encountered in the decline shaft system. The mining lay-out is being reviewed to address the geological issues.
Tons processed increased 8% to 1,588,436 tons, including 68 163 tons of opencast material.
Over the quarter, stockpiles decreased to +/- 50,000 tons.
The head grade remained constant at 2.73 g/t.
Primary development increased by 11% compared to the previous quarter, resulting in an improvement in redundancy.
Plant recoveries decreased marginally by 0.5% to 76.5% compared to the previous quarter.
PGM production increased by 8% to 106,493 PGM oz (Aquarius attributable: 53,246 PGM ounces).
Operating Cash Costs
Cash costs increased by 9% to R247 per ton milled as a result of the approved increase in mining rates and a double-digit annual wage increase implemented for Murray & Roberts Cementation during the quarter. The increase in primary development and the transport cost from the increased tonnage from K5 further contributed to the cost increase. The K5 Shaft is in a ramp-up phase and therefore attracts high relative unit costs. Consequently, cash costs per PGM ounce for the quarter increased 10% to R3,683.
Capital Expenditure
During the quarter R56 million was incurred, including R28.6 million for underground infrastructure establishment, R14.6 million for K5 surface infrastructure.
P&SA2 at MarikanaSafety
The 12-month rolling DIIR deteriorated to 0.40 due to 3 lost-time injuries which occurred during the quarter. Marikana achieved 1.4 million fatality-free shifts at the end of the quarter. Safety initiatives, including an interactive behaviour coaching initiative, are being implemented.
Mining
* Open pit operations produced 283,531 tons * Underground production increased by 46% to 298,676 tons * Stockpile reduced by 8% to 177,917 tons * Head grade remained unchanged at 3.10 g/t
Processing
* Plant processed a total 570,719 ROM tons * Recoveries increased from 56% to 62% * Production increased by 9% to 35,200 PGM ounces (Aquarius attributable: 17,600 PGM ounces)
Revenue
The PGM basket price for the quarter averaged $1,480 per PGM ounce, 2% higher than the previous quarter. Mine revenue increased to R333 million for the quarter (AQPSA share: R167 million) due to an increase in metal production together with an improved basket price. An increase in production costs resulted in the cash margin for the quarter decreasing from 35% to 33%.
Operations
Total production decreased by 2% to 582,207 tons for the quarter, with 51% coming from underground (previous quarter 34%) and 49% from open-pit operations.
During the quarter production was adversely impacted by unprotected industrial action by Murray and Roberts Cementation (MRC) employees related to pay issues. It is estimated that this reduced production by 30,000 tons.
Production from underground operations increased by 46% to 298,676 tons. The establishment of underground production sections progressed well during the quarter, with an increase in primary development at No.4 Shaft to 1,301 meters and to 1,050 meters at No.1 & 2 Shafts. At No 2 Shaft production increased to 41,900 tons from 19,600 tons in the previous quarter.
Production from open pit operations decreased by 27% to 283,531 tons. Production was adversely affected by a foot wall failure on the south western portion of the open pit resulting in a lock-up of an estimated 40,000 tons of reef and an increase in waste stripping in an attempt to expedite production from other areas.
The stockpile at the end of quarter was 170,000 tons, comprising 150,000 open pit tons and 20,000 underground tons respectively. The open pit stockpile includes 70,000 tons of low recovery oxidised material.
A total of 570,719 tons were processed during the quarter, comprising of 262,684 tons from underground and 308,036 tons of open pit material. Head grade remained consistent at 3.10 g/t whilst recoveries improved by 10% to 62%.
On the P&SA2 Project, expansion capital totalled R5.3 million for the quarter. The total committed expansion capital expenditure to date is R107 million (AQPSA share: R54 million) with R97 million incurred to date (AQPSA share: R49 million).
Operating Cash Costs
Cash cost per ROM ton increased by 12% to R390 per ROM ton and by 1% to R6,321 per PGM ounce, mainly as a result of increased stripping associated with the low wall failure in the open pit operations. Underground unit costs also increased as a result of the approved increase in mining rates and a double-digit annual wage increase implemented for Murray & Roberts Cementation during the quarter.
Contractor dispute with Moolman Mining
AQPSA awaits a response from Moolman Mining to AQPSA's answering affidavit in Moolman Mining's counter-application in the motion proceedings instituted by AQPSA. AQPSA's application is to stay the Arbitration proceedings instituted by Moolman Mining in the "rise and fall" formula dispute, pending the outcome of the action proceedings instituted by AQPSA against Moolman Mining to set aside the mining contract by reason of Moolman Mining's misrepresentation when the mining contract in question was originally concluded.
AQPSA has served a plea to Moolman Mining's counterclaim in the abovementioned action proceedings. AQPSA denies that any amounts whatsoever are owing to Moolman Mining because such claims arise either directly out of the mining contract or as a result of a finding that AQPSA was not entitled to rescind the mining contract. A finding that there was a misrepresentation at the instance of Moolman Mining will have the effect that none of the amounts in the counter-claim will be payable.
Everest Platinum Mine
Safety
The 12-month rolling DIIR deteriorated from 0.62 to 0.72. Nine lost-time injuries occurred during the quarter, with falls of ground being the predominant injury mechanism. A fall of ground campaign was launched during the quarter and
a reduction in fall of ground incidents was realised in the latter half of the quarter.
Mining
* Underground ore production increased by 14% to 606,122 tons * Opencast operations production increased to 69,383 tons * Head grade improved from 2.84 g/t to 2.94 g/t
Processing
* Plant processed 642,586 tons, a 12% increase compared to the previous quarter * Recoveries increased to 80% from 78% in the previous quarter * Production increased 19% to 48,841 PGM ounces
Revenue
Revenue increased 16% to R463 million for the quarter, due to higher PGM production and the average PGM basket price for the quarter which increased to $1,475 per PGM ounce. The cash margin for the quarter decreased to 62% from 64% in the previous quarter.
Operations
Opencast and underground mining combined produced a total 675,505 tons, a 17% increase compared to the previous quarter, with the production balance roughly 90% from underground and 10% from opencast operations respectively.
Opencast mining production performed well, increasing to 69,383 tons, largely comprising of high-grade but high cost tons from the deeper areas of the South-West Pit. The opencast reserve is approaching depletion and the last opencast production will be delivered in the next quarter. Opencast rehabilitation is also showing good progress with backfill and topsoil placement in the depleted north pit at 95% completion.
Underground on-reef development and the establishment of stoping sections continued during the quarter. Underground production showed a 14% improvement, increasing to 606,122 tons from 531,191 tons in the previous quarter. Shaft Sinkers (Pty) Ltd, the sole shareholder of Shaft Sinkers Mining (Pty) Ltd has informed Aquarius Platinum (South Africa) of its intention to sell its shareholding in Shaft Sinkers Mining (Pty) Ltd to JIC Mining Services (Pty) Ltd. Although the transaction will only become effective in the next quarter, the announcement of the transaction to the workforce resulted in labour instability which adversely affected production in the latter part of the quarter. JIC Mining (Pty) Ltd performs contract mining in the platinum, gold and ferrochrome industries.
The underground head grade improved as reef widths increased and development tons decreased comparative to stoping tons. The plant head grade accordingly improved to 2.94 g/t from 2.84 g/t in the previous quarter.
Concentrator throughput was 642,586 tons milled for the period, with no tons consumed from the stockpile, which increased to 48,188 tons at the end of the quarter. Recoveries improved to 80% from 78% due to improved process stability resulting from the implementation of advanced flotation process control systems. The grade and recovery improvement had a significant positive impact on the PGM yield with record production for the quarter of 48,841 PGM oz, a 19% improvement on the previous quarter.
Operating Cash Costs
Cash costs increased by 8% to R271 per ROM ton milled as a result of the increase in mining rates approved for Shaft Sinkers Mining as well as a double-digit wage increase implemented by Shaft Sinkers Mining during the quarter. Process plant unit cost increased as a result of the annual increase in the cost of the operating contractor, Minopex, coming into effect in the quarter. The increase in cost was however offset by the improved PGM yield, with cash costs per PGM ounce for the quarter increasing by only 1% to R3,566 per PGM ounce.
MIMOSA INVESTMENTS (Aquarius Platinum 50%)
Mimosa Platinum Mine
Safety
The DIIR was constant at 0.23 for the quarter compared to the previous quarter.
Mining
* Underground production increased 2% to 457,155 tons * The surface stockpile increased to a total 378,673 tons at the end of the quarter
Processing
* Concentrator plant recoveries decreased to 76.2% from 77.9% * Total mine production decreased by 9% to 38,660 PGM ounces (Aquarius share: 19,330), due to the impact of electrical power outages amounting to 127 hours during the quarter.
Revenue
The average achieved PGM basket price for the quarter increased by 2% to $1,065 per PGM ounce. The average nickel price over the quarter decreased by 13% to $17.95 per pound from $20.52 per pound in the previous quarter. Sales revenue for the quarter totalled $54.8 million, a decrease of $5.6 million when compared to the previous quarter, with base metals contributing approximately 38% of gross revenue. The gross cash margin decreased to 71% from 77% in the previous quarter.
Operations
During the quarter mining operations hoisted 457,155 tons compared to 448,732 tons in the previous quarter. Tons milled during the quarter totalled 439,365 tons, with 17,790 transferred to the stockpile, which totalled 378,673 tons at the quarter end using the reconciliation method.
The average plant head grade declined marginally to 3.59 g/t, compared to 3.64 g/t in the previous quarter.
Tons processed totalled 439,365, a 9% decrease compared to the previous quarter. Hoisting performance was hampered by load-shedding due to nation-wide shortage of electricity. The plant operations were unstable during the quarter due to problems relating to maintenance of the primary mill and the secondary mills as well as failure of the tailings thickener drive.
Recoveries for the quarter slightly decreased to 76.2% from 77.9%.
PGM production during the first quarter decreased by 10% to 38,660 ounces (Aquarius attributable: 19,330 ounces).
Operating Cash Costs Cash costs for the quarter were impacted badly at $437 per PGM ounce, a 25% increase compared to the previous quarter's figure of $350 per PGM ounce. The impact of foreign currency modalities were a major factor in this increase.
Net of by-products, cash costs were negative at ($150) per PGM ounce, compared to ($289) per PGM ounce in the previous quarter, primarily due to lower nickel production and lower nickel prices which were 13% lower than the previous quarter.
Operating costs for the quarter were 25% higher than the previous quarter as a result of hyperinflationary conditions prevailing in the country (the inflation -exchange rate disparity continues to exacerbate pressure on local costs), low production throughput recorded and the breakdowns experienced on the secondary ball mill.
Update on Foreign Currency Retention Levels in Zimbabwe
On the 1st of October 2007, the Governor of the Reserve Bank of Zimbabwe issued the Mid-Year Monetary Policy Statement. One of the measures announced within this statement was the centralising, at the Central Bank of corporate foreign currency balances held with financial institutions. Financial institutions now only maintain "mirror accounts" of the balances held at the Central Bank. Further, foreign currency retention levels were increased from the previous levels of 60% to 65% with the balance of 35% being sold to the Central Bank.
Mimosa continues to operate under the regulations of the Enhanced Platinum Sector Regime and the related tripartite Account Management Agreements signed between the Central Bank, MBCA Bank and Mimosa. The Company's foreign currency balances still continue to be maintained offshore.
Wedza Phase 5 Expansion
Progress on the Phase V Expansion Project has continued to be disappointing. The areas of concern are completion of ventilation holes and commissioning of the processing plant on time. Apart from the plant, the major challenge is to complete the establishment of the raise bores for ventilation. Murray and Roberts are scheduled to be on site on the 24th of October 2007 and should finish by end of November 2007. The completion date is forecast at 26 February 2008. The project costs totalled $6.34 million for the quarter. The total committed expansion capital expenditure to date is $16.4million.
AQUARIUS PLATINUM (SA) CORPORATE SERVICES (PTY) LTD
Chromite Tailings Retreatment Plant (CTRP) (Aquarius Platinum 50%)
Safety
The DIIR is zero. No Lost Time Accidents have occurred since the project commenced.
Processing
* Material processed increased to 70,000 tons * Grade increased to 5.0 g/t and recoveries increased to 23% * Production increased by 43% to 2,681 PGM ounces
Revenue
The PGM basket price for the quarter decreased 4% to $1,775 per PGM ounce. Reflecting higher production, revenue for the quarter increased to R26 million (Aquarius share: R13 million). The cash margin increased to 80%.
Operations
The increase in recovery and ounces is attributable to the installation of a thickener and a fine grind ahead of the flotation plant.
Costs
Cash costs decreased by 8.5% to R1,976 per PGM ounce. The decrease was due to the increase in production.
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Bakgaga Mining (Aquarius Platinum Farm In Exploration Agreement)
In October 2006, Aquarius signed a farm-in agreement with Bakgaga Mining to drill and conduct feasibility work at prospective PGMs bearing properties on the Eastern Limb of South Africa's Bushveld.
Exploration has been ongoing and recently intersected rock types similar to the Merensky Reef at a depth of approximately 1,900m below surface. This confirms the occurrence of the Critical Zone lithologies of the Bushveld Complex on the properties and further drilling will be done to assess the extent of the Critical Zone development. PGM mineralisation will be evaluated by analysis of the target zone.
CORPORATE MATTERSProposed Share Split
On 8th August 2007 at the time of the 2007 Annual Results, the Board requested to place before shareholders at the upcoming AGM in November 2007 a resolution seeking approval to subdivide the issued capital of the company on the basis that each existing share be subdivided into three shares and each existing option be subdivided into three options each. It is believed that the share split will benefit shareholders by increasing the liquidity and affordability to investors of the company's shares.
The Resolution will be put to the AGM on 23rd November and should it be approved should be implemented by the end of December 2007.
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 Alternate to Kofi Morna Audit/Risk CommitteeSir 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 Anton Wheeler Managing Director Ayanda Khumalo Finance Director Graham Ferreira General Manager Admin & Company Secretary Hugo HĦll General Manager Everest Willie Byleveld General Manager Marikana Gordon Ramsay General Manager Metallurgy Rudi Rudolph General Manager Kroondal Gabriel de Wet General Manager Engineering Mimosa Mine ManagementWinston Chitando Managing Director Herbert Mashanyare Technical Director Peter Chimboza Operations Director Issued Capital
At 30 September 2007, the Company had on issue:
85,511,422 fully paid common shares and 1,019,687 unlisted options
Substantial Shareholders 30 September Number of Shares Percentage 2007 Impala Platinum Holdings Ltd 7,127,276 8.33 Nutraco Nominees Limited 5,626,120 6.58 Trading InformationISIN number BMG0440M1029
Broker (LSE) (Joint) Broker (ASX) Sponsor (JSE)
Morgan Stanley & Co International Limited
20 Cabot Square, Canary Wharf
London, E14 4QW
Telephone: +44 (0) 20 7425 8000
Facsimile: +44 (0)20 7425 8990 Euroz Securities
Level 14, The Quadrant1 William StreetPerth WA 6000
Telephone: +61 (0)8 9488 1400
Facsimile: +61 (0)8 9488 1478
Investec Bank Limited100 Grayston DriveSandownSandton 2196
Telephone: +27 (0)11 286 7326
Facsimile: +27 (0)11 291 1066
Investec Securities LimitedInvestec Bank (UK) Limited2 Gresham StreetLondon, EC2V 7QP
Telephone: +44 (0)20 7597 5970
Facsimile: +44 (0)20 75975120
Aquarius Platinum (South Africa) (Proprietary) Ltd
54% Owned
(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 2050
Facsimile: +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, Australia
Postal Address PO Box 485, South Perth, WA 6151, Australia.
Telephone: +61 (0)8 9367 5211
Facsimile: +61 (0)8 9367 5233
Email: [email protected]
GlossaryA$ 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 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 DME South African Government Department of Minerals and Energy Dollar or $ United States Dollar 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 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 NOSA National Occupational Safety Association PGE(s) (6E) Platinum Group Elements plus Gold. Five metallic elements commonly 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) (4E) Platinum Group Metals plus Gold. Aquarius reports the PGMs as 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), Ivanhoe Nickel and Platinum Limited 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 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
Aquarius Platinum Corporate Services Pty Ltd
+61 (0)8 9367 5211
In the United Kingdom and South Africa
Nick BiasBuckBias Limited+ 44 (0)7887 920 530
AQUARIUS PLATINUM LIMITEDRelated Shares:
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