25th Jul 2007 07:00
AQUARIUS PLATINUM LIMITED
25 JULY 2007
Aquarius Platinum Fourth Quarter 2007 Production Results
Attributable production for Q4 2007 increased 3.6% to 128,994 PGM ounces compared to Q3 2007
PGM prices continue to strengthen
Buyback acquisition of 3.5% of South African subsidiary completed
P&SA1 at Kroondal
Production 98,370 PGM ounces (Aquarius attributable: 49,185 PGM ounces)
Underground primary and re-development progressing ahead of plan
Five day strike in May resolved, resulting in reduced production 160,000 tons
Cash margin for the quarter at 66%
P&SA2 at Marikana
Production 32,286 PGM ounces (Aquarius attributable: 16,143 PGM ounces)
Five day strike in May resolved, resulting in a reduction of 21,700 tons
Gross cash margin for the quarter at 35%
Everest
Production 40,923 PGM ounces
Underground ramp-up continues, with underground production growing to 92% of total tonnage
Gross cash margin for the quarter at 64%
Mimosa
Production increased 25% to 43,732 PGM ounces (Aquarius attributable: 21,366 PGM ounces)
Wedza Phase V expansion plans interrupted to be enhanced for more production
Gross cash margin increased to 77%
CTRP
Production 1,877 PGM ounces (Aquarius attributable: 938 PGM ounces)
Gross cash margin for the quarter steady at 77%
Commenting on the results, Stuart Murray, CEO of Aquarius said: "Despite toughoperating conditions in Zimbabwe and industrial action at certain of the SouthAfrican operations, I am pleased to report a small increase in production. Prior decisions to focus on improving redundancy and flexibility at Kroondaland Marikana, I believe, will lead to further production improvements - notwithstanding further industrial action in the new financial year."
Production by Mine
Quarter Ended Total PGMs (4E)
Sep 2006 Dec 2006 Mar 2007 Jun 2007 FY 2007
Kroondal 121,713 117,189 102,079 98,370 439,351
Marikana 30,865 39,077 30,148 32,286 132,376
Everest 41,717 41,191 40,107 40,923 163,938
Mimosa 42,733 33,345 34,760 42,732 154,448
CTRP 1,711 1,866 1,954 1,877 7,408
Total 238,739 232,668 209,048 217,066 897,521
Production by Mine Attributable to Aquarius
Quarter Ended Total PGMs (4E)
Sep 2006 Dec 2006 Mar 2007 Jun 2007 FY 2007
Kroondal 60,856 58,594 51,039 49,185 219,674
Marikana 15,432 19,538 15,074 16,143 66,187
Everest 41,717 41,191 40,107 40,923 163,938
Mimosa 21,367 16,672 17,380 21,366 77,224
CTRP 855 933 977 938 3,703
Total 140,227 136,928 124,577 128,994 530,726
Metals Prices and Foreign Exchange
Platinum, palladium and rhodium reported price increases over the quarter. Platinum closed the period 2% stronger at $1,273 per ounce. Palladium added 4%over the quarter. Despite finished metals stocks, palladium continues tobenefit from an improved outlook owing to its discount to platinum andanticipated substitution opportunities in autocatalysts. Rhodium added $100per ounce or 1% to $6,250 per ounce. While speculation would appear to accountin part for these gains, rhodium's unique autocatalyst and flat screen glassapplications continue to see strong demand set against supply constraints. PGM basket prices continued a strong performance, buoyed by PGM priceincreases. At South African operations the 4 element basket price advancedabove R10,000 per PGM ounce, to average an achieved price of R10,534 per PGMounce for the quarter, equal to $1,488 per PGM ounce in dollar terms. InZimbabwe, the average achieved basket price for the quarter broke over $1,000to $1,047 per PGM ounce. Average PGM basket prices achieved at Aquarius operations: US$ per PGM ounce(4E) Basket Prices (Quarter Ended) Sep 2006 Dec 2006 Mar 2007 Jun 2007 Kroondal 1,311 1,287 1,427 1,520 Marikana 1,283 1,270 1,369 1,453 Everest 1,199 1,179 1,331 1,438 Mimosa 958 934 950 1,047 CTRP 1,622 1,592 1,806 1,856 Aquarius Group Average 1,223 1,211 1,326 1,405 (on attributable production basis)
The Rand Dollar exchange rate was volatile through the quarter, opening at 7.26 then falling, rising and falling back again to close at 7.07. The average exchange rate achieved at South African operations was 7.08.
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 from 0.86 to 0.75. The Department of Minerals and Energy's investigation into the fatalitypreviously reported that occurred on 26 March 2007 at Central Shaft has beenreferred to the Public Prosecutor for further consideration. Five lost-timeinjuries occurred during the quarter (two on surface and three underground).
Mining
The mine recorded production of 1,512,291 underground tons and 77,037 open pit tons
The K5 Project remains on schedule
Head grade decreased from 2.80 g/t to 2.73 g/t
Processing
Plant processed 1,464,124 tons
Recoveries increased to 77% from 76% in the previous quarter
Production fell to 98,370 PGM ounces
Revenue
Revenue at Kroondal decreased by 15% to R962 million for the quarter (Aquariusshare: R481 million). This was due in part to lower production due to anillegal strike by MRC employees, a strengthening in the exchange rate and areduction in the four-month-rolling sales adjustment due to thequarter-on-quarter volatility of the ruthenium price. The cash margin for thequarter consequently decreased to 66% from 71% in the previous quarter.
Operations
Total tons mined increased by 6% to 1,589,328 tons. Underground production increased by 8% to 1,512,291 tons and open pit production decreased by 20% to 77,037 tons.
During the quarter, production was adversely impacted by 5-working-dayunprotected industrial action by MRC employees related to bonus payments. Itis estimated that this reduced production by 160,000 tons. A task-teamconsisting of all stakeholders was established to investigate and recommend anew bonus scheme.
Tons processed declined by 2% to 1,464,124 tons, including 72,206 tons of opencast material.
Over the quarter, stockpiles increased to 78,745 tons.
The head grade decreased to 2.73 g/t compared to 2.80 g/t in the previous quarter as a result of the ramp up of lower-grade ore from the new K5 shaft during the establishment phase of the shaft. Dilution at K5 has improved but is not yet comparable with existing shafts.
Primary development has progressed well, increasing redundancy at both the Central and East Shafts, but No. 3 Shaft still remains constrained due to an increase in potholing.
Plant recoveries increased by 1% to 77% compared to 76% during the previous quarter.
PGM production decreased by 4% to 98,370 PGM oz (Aquarius attributable: 49,185 PGM ounces).
Subsequent to the quarter end, a second illegal strike by MRC employees occurred, which began on Sunday 15th July and ended with a return to normalised operations on 23rd July.
Kroondal: Metal in concentrate produced (PGM ounces)
Quarter ended Pt Pd Rh Au PGMs PGMs attributable to Aquarius Jun 2007 58,930 28,541 10,403 496 98,370 49,185 Mar 2007 61,240 29,593 10,720 526 102,079 51,039 Dec 2006 70,522 33,748 12,295 624 117,189 58,594 Sep 2006 73,239 35,166 12,679 629 121,713 60,856 Operating Cash CostsCash costs increased by 1% to R226 per ROM ton. Consequently, cash costs perPGM ounce for the quarter increased 2% to R3,361. The increase in unit cost ismainly due to a reduction in head grade and reduction in production volumes.
Kroondal: Operating Cash Costs
4E 6E 6E net of by-products (Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni&Cu) Kroondal R 3,361 per PGM ounce R 2,765 per PGE ounce R 2,540 per PGE ounce Operating cash costs include ledging and primary development costs of R445 perPGM ounce (up 22% on the previous quarter), secondary development costs of R103per PGM ounce (up 47% on previous quarter) and engineering infrastructure costsof R150 per PGM ounce (down 36% on previous quarter). The stoping cost wasR2,663 per PGM ounce, a 2% increase compared to the previous quarter. Itshould be noted that operating costs continue to include costs associated withthe new K5 Shaft of R278 per PGM ounce. The K5 Shaft is in a ramp-up phase andtherefore attracts high relative unit costs.
Kroondal Operating Cash Costs Reconciliation
Rand per PGM ounce Q3 (Mar 2007) Q4 (Jun 2007) Variance Cash costs 3,281 3,361 -2% Ledging and primary development costs (366) (445) 22% Secondary development costs (70) (103) 47% Engineering infrastructure costs (235) (150) -36% Cash cost after adjustments 2,610 2,663 -2%
K5 Project Capital Expenditure
During the quarter R11.5 million was spent, including R4.4 million for initialstrike and dip conveyor extensions, R2.1 million for K5 surface infrastructureand dip conveyor extensions and R5 million on the K5 rail-link.
The appointed contractor Deilmann-Haniel (SA) (Pty) Ltd continues to perform satisfactorily.
A total 158,318 tons were produced. The geology remains challenging with ground conditions adversely affected by faulting and rolling reef and compounded by variations in the leader reef parting.
Construction of the surface silo, rail-link and off-loading facilities at Klipfontein were completed as planned. Underground belt infrastructure construction is also progressing well despite adverse ground conditions.
P&SA2 at Marikana
Safety
The 12-month rolling DIIR remained unchanged at 0.36. Two lost-time injuries occurred during the quarter.
Mining
Open pit operations produced 389,258 tons and underground operations 204,314 tons
Stockpile increased 5% to 193,014 tons
Head grade fell to 3.10 g/t as open pit ore increased against underground
No 4 shaft transferred to Operations from Projects
Processing
Plant processed a total 581,943 ROM tons
Recoveries decreased to 56% due to higher feed of oxidised material from the open pit operations
Production increased 7% to 32,286 PGM ounces (Aquarius attributable: 16,143 PGM ounces)
RevenueThe PGM basket price for the quarter averaged $1,453 per PGM ounce, 6% higherthan the previous quarter. However, mine revenue decreased to R311 million forthe quarter (AQPSA share: R155 million) due to a reduction in thefour-month-rolling sales adjustment caused by the quarter-on-quarter volatilityin the ruthenium price. The reduction in revenue coupled with a 5% increase inunit costs per ounce, resulted in the cash margin for the quarter decreasing to35% from 46%.Operations
Total production increased by 34% to 593,573 ROM tons for the quarter, with 34% coming from underground and 66% from open pit operations.
As at Kroondal, during the quarter, production was adversely impacted by 5-working-day unprotected industrial action which impacted on underground production only.
Open pit production increased 31% to 389,258 tons. The open pit operation was replanned and rescheduled in January 2007 which resulted in an increase in stripping ratios, contributing to higher operating costs.
Underground production increased by 39% to 204,314 tons, with an estimated21,700 tons reduction due to the industrial action. At No. 4 Shaft 873 meters,and at No. 1 Shaft 423 metres of primary development were completedrespectively during the quarter. With the constant build up of production,vacant key labour have resulted in some production losses. A RecruitmentOfficer has since been employed by underground contractor MRC which has seenthe situation improve considerably.
At No. 2 Shaft, mining operations started at the beginning of the quarter and 411 meters of primary development was completed during the quarter.
The stockpile at the end of quarter amounted to a total of 193,014 tons, comprising of 183,789 open pit tons and 9,222 underground tons respectively.
A total of 581,943 tons were processed during the quarter, comprising of207,858 tons from underground and 374,085 tons of open pit material. For thequarter 480,224 tons were fed to the mills, with a split of 308,573 open pitand 171,650 underground tons.On the P&SA2 Project, expansion capital totalled R6.2 million for the quarter. The total expansion capital expenditure to date is R105 million (AQPSA share: R52.5 million).
Subsequent to the quarter end, a second illegal strike by MRC employees occurred, which began on Sunday 15th July and ended with a return to normalised operations on 23rd July.
Marikana: Metal in concentrate produced (PGM ounces)
Quarter ended Pt Pd Rh Au PGMs PGMs attributable to Aquarius June 2007 20,164 8,963 2,917 242 32,286 16,143 Mar 2007 18,525 8,595 2,794 234 30,148 15,074 Dec 2006 23,627 11,218 3,941 291 39,077 19,538 Sep 2006 18,588 8,944 3,098 235 30,865 15,432 Operating Cash CostsCash cost per ROM ton decreased by 12% to R348 per ROM ton, however, the cashcost per PGM ounce increased by 5% to R 6,274 per PGM ounce, mainly as a resultof lower recoveries and head grade consistent with the increased feed ofoxidised open pit material. A contributing factor is the increase in strippingratio and increase in underground development.
Marikana: Operating Cash Costs
4E 6E 6E net of by-products (Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni&Cu) Marikana R 6,274 per PGM ounce R 5,242 per PGE ounce R 4,827 per PGE ounce
Contractor dispute with Moolman Mining
On 19 March 2007, AQPSA delivered its reply to Moolman Mining's response to AQPSA's original motion proceedings application to stay the Arbitration proceedings in this matter, pending the outcome of the trial action proceedings instituted by AQPSA against Moolman Mining based on Moolman Mining's misrepresentation of the extent of its foreign currency exposure when it originally concluded the mining contract with Moolman Mining. AQPSA is awaiting a response to its reply from Moolman Mining.
The discovery of documents by Moolman Mining which was necessary for AQPSA'sabove mentioned reply in the motion proceedings has not disclosed anydocumentation which would support any foreign exposure by Moolman Mining, tendsto confirm that AQPSA's original decision to resile from the mining contractwas correct in the circumstances.AQPSA will be serving a plea to Moolman Mining's counterclaim in the actionproceedings in due course. AQPSA denies that any amounts whatsoever are owingto Moolman Mining as the misrepresentation at the instance of Moolman Mininghas the effect that no such amounts will be payable.
Everest Platinum Mine
Safety
The 12-month rolling DIIR deteriorated to 0.62 from 0.58. The Department ofMinerals and Energy has issued a report regarding the investigation that wasperformed following the fatality that occurred during the previous quarter. The report concluded that the requisite safety management systems were inplace, ascribing the basic cause of the accident to the deceased taking anunsafe position and not following procedures. The implementation of remedialactions arising from the investigations was completed during the quarter. Fivelost-time injuries occurred during the quarter. Safety initiatives continue tofocus on fall-of-ground prevention and materials handling.
Mining
Underground ore production increased by 15% to 531,191 tons
Opencast operations production decreased to 47,130 tons
Opencast mining extension through the South-West Pit continued
Processing
Plant processed 573,265 tons, a 5% increase compared to the previous quarter
Recoveries were consistent with the previous quarter, remaining at 78%.
Production increased 2% to 40,923 PGM ounces
Revenue
Revenue decreased by 4% to R400 million for the quarter,due to a strengtheningin the exchange rate and a reduction in the four-month-rolling sales adjustmentdue to the quarter-on-quarter volatility of the ruthenium price. The averagePGM basket price for the quarter increased to $1,438 per PGM ounce. The cashmargin for the quarter decreased to 64% from 66% in the previous quarter.
Operations
Opencast and underground mining combined produced a total 578,321 tons, a 9%increase compared to the previous quarter, with the production balance roughly92% from underground and 8% from opencast operations respectively.Opencast mining production followed plan and continued to decrease to 47,130tons, largely comprising of high grade, high cost tons from the deeper areas ofthe South-West Pit. Production capacity remains limited by the small reservein the South-West Pit and the boulder laden nature of the overburden. Thereduction in opencast production, high boulder volumes and the high strippingratios inherent in the South-West Pit extension resulted in an increase inopencast mining unit cost.Underground on-reef development and the establishment of stoping sectionscontinued during the quarter. The underground production showed a 15% increasein production to 531,191 tons from 463,202 tons. The performance of theunderground mining contractor, Shaft Sinkers Mining, showed some improvement asshown by the increase in production. Shaft Sinkers Mining did however requesta revision in mining rates on the basis of mining parameters, specificallypillar layouts, explosives and support specifications; which had changed as aresult of geological and geotechnical conditions. The request was approvedfollowing a validation and review process. Shaft Sinkers Mining wagenegotiations are underway, and it is anticipated that the revision and miningrates coupled with wage increases will result in an increase in undergroundmining cost in the next quarter.The underground head grade was consistent with the previous quarter. The planthead grade for the quarter decreased to 2.84 g/t from 2.94 g/t in the previousquarter due to a reduction in high-grade opencast material.Concentrator throughput was 573,265 tons milled for the period, with no tonsconsumed from the stockpile, which increased to 11,471 tons at the end of thequarter.
Recoveries were consistent at 78%.
Everest: Metal in concentrate produced (PGM ounces)
Quarter ended Pt Pd Rh Au PGMs (4E)
Jun 2007 23,883 12,544 4,155 341 40,923 Mar 2007 23,561 12,359 3,845 342 40,107 Dec 2006 23,495 13,484 3,838 374 41,191 Sep 2006 23,459 14,140 3,697 421 41,717
Operating Cash Costs
Cash costs decreased by 2% to R252 per ROM ton milled in line with theincreased ratio of underground tons at higher cost which was offset by areduction in high cost opencast material. Process plant unit costs reduced as aresult of the higher throughput. As a consequence of lower grades andconsistent recoveries, cash costs per PGM ounce for the quarter increased by 1%to R3,528 per PGM ounce.
Everest Operating Cash Costs
4E 6E 6E net of by-products (Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni&Cu)
Everest R3,528 per PGM ounce R 2,893 per PGE ounce R 2,543 per PGE ounce
*As adjusted forIFRIC-4 (determining whether an arrangement contains a lease) by R240 per PGM ounce
MIMOSA INVESTMENTS (Aquarius Platinum 50%)
Mimosa Platinum Mine
Safety
The DIIR improved to 0.23 for the quarter from 0.50 in the previous quarter.Regrettably on the 18th of May, two fatalities occurred underground when aSafety Health Environmental Officer and an Acting Ventilation Officer succumbedto asphyxia in a previously abandoned underground area where pumping was beingcarried out to reopen it. An official investigation is underway; however, theresults have not yet been released.
Mining
Underground production decreased 3% to 449,000 tons
The surface stockpile decreased to a total 361,000 tons at the end of the quarter
Processing
Concentrator plant recoveries improved to 77.9% from 77.7%
Total mine production increased 23% to 42,732 PGM ounces, equalling previous production record (Aquarius share: 21,366)
Revenue
The average achieved PGM basket price for the quarter increased 10% to $1,047per PGM ounce. The average nickel price over the quarter rose by 36% to $20.52per pound from $15.21 per pound in the previous quarter. Together with acontribution from base metals of approximately 44% of gross revenue, salesrevenue for the quarter totalled $60.4 million, an increase of $13.4 millionwhen compared to the previous quarter. The gross cash margin increased to 77%from 72% in the previous quarter.
Operations
During the quarter mining operations hoisted 449,000 tons compared to 463,000tons in the previous quarter. Tons milled during the quarter totalled 481,000tons, with the balance from the stockpile, which totalled 361,000 tons at thequarter end using the reconciliation method.
The average plant head grade was steady at 3.64 g/t, compared to 3.68 g/t in the previous quarter.
Tons processed totalled 481,000, a 27% increase compared to the previous quarter. This increase was planned following the plant shutdowns in the previous quarters. The milling situation is now back to normal. Recoveries for the quarter slightly increased to 77.9% from 77.7%.
PGM production during the fourth quarter increased by 23% to 42,732 ounces (Aquarius attributable: 21,366 ounces).
Mimosa: PGMs in concentrate produced (ounces)
Quarter ended Pt Pd Rh Au PGMs PGMs attributable to Aquarius Jun 2007 21,724 16,494 1,688 2,826 42,732 21,366 Mar 2007 17,624 13,380 1,355 2,401 34,760 17,380 Dec 2006 16,810 12,856 1,316 2,363 33,345 16,672 Sep 2006 21,613 16,486 1,671 2,963 42,733 21,367
Mimosa: Base Metals in concentrate produced (tons)
Mine Production Attributable to Aquarius Quarter ended Ni Cu Co Ni Cu Co Jun 2007 587 485 18 293.5 242.5 9 Mar 2007 468 394 15 234 197 7.5 Dec 2006 449 377 14 225 189 7 Sep 2006 574 475 18 287 238 9 Operating Cash Costs
Cash costs for the quarter decreased to $350 per PGM ounce, a 12% decrease compared to the previous quarter's figure of $396 per PGM ounce.
Net of by-products, however, cash costs were negative at ($289) per PGM ounce,compared to ($154) per PGM ounce in the previous quarter, primarily due to
thehigh nickel price.Mimosa Operating Cash Costs 4E 6E 4E net of by-products
(Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni, Cu & Co)
Mimosa $350 per PGM ounce $331 per PGE ounce ($289) per PGE ounce
Although operating costs are 12% better compared to the previous quarter, thecountry is still operating under hyperinflationary conditions. Annual inflationis over 4,500% and given a controlled foreign exchange rate regime, theinflation -rate disparity continues to exacerbate pressure on local costs.
Wedza Phase 5 Expansion
Satisfactory progress has been achieved as regards the mining side of the project. Most of the equipment is now on site and being commissioned.
The process side of the project is facing challenges. The project scope hasbeen revised twice due to concerns about the re-use of old equipment, and slowprogress is being registered as a result. The (RSA based) contractors who wereawarded most of the work are pressed due to the difficulties of operating inZimbabwe. Consequently, completion of the project will be delayed until thelast quarter of calendar 2007 and the capital cost has escalated by $5.7million to $28.9 million.
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 steady at 68,556 tons
Grade decreased to 4.0 g/t and recoveries decreased to 22%
Production decreased slightly to 1,877 PGM ounces
Revenue
The PGM basket price for the quarter increased 3% to $1,856 per PGM ounce. Revenue for the quarter decreased to R19 million (Aquarius share: R9.5 million). The cash margin remained steady at 77%.
Operations
The drop in recovery and ounces is attributable to the decrease in head grade. This decrease is a result of treating lower grade dump material.
Operating Costs
Cash costs decreased by 12% to $336 per PGM ounce. The decrease was due toreduced maintenance costs.CTRP Operating Cash Costs 4E 6E 4E net of by-products
(Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni, Cu& Co)
CTRP R2,382 per PGM ounce R1,599 per PGE ounce R1,197 per PGE ounce
CORPORATE MATTERS
Aquarius completes purchase of 3.5% of South African subsidiary from SavCon
On 26th April 2007, Aquarius announced the completion of the acquisition of a3.5% equity interest in AQPSA from SavCon for a cash consideration of ZAR 342.5million, as first announced in November 2006. As a result of the Transaction, Aquarius increased its ownership of AQPSA from50.5% to 54%. The number of new Aquarius shares to which SavCon will beentitled in exchange for its equity interest of 26% in AQPSA will reduceproportionately by 2,918,590 shares to 21,680,952 shares. The conditions forultimate disposal of SavCon's 26% in AQPSA and the take-up of its Aquariusshares in terms of the Final Phase remain unchanged.
More information on all the corporate matters can be found at www.aquariusplatinum.com
Statistical Information: Kroondal P&SA1
Data reflects 100% of Current Previous % Change Current Previous % Change mine operations Unit Quarter Quarter Quarter 12 12 Period Jun 2007 Mar 2007 on months months on Quarter Jun 07 Jun 06 Period Safety DIIR Rate/ 0.75 0.86 15 0.75 0.96 28 200,000 man hours Revenue Gross R'M 962 1,138 (15) 4,016 2,742 46 Revenue PGM basket $/oz 1,520 1,427 6 1,386 1,033 34 Price Gross cash % 66 71 (8) 66 59 13 margin Nickel $/lb 21.79 18.79 16 17.20 7.02 145 Price Copper $/lb 3.46 2.69 29 3.21 2.29 40 Price Ave R/$ 7.08 7.18 (1) 7.18 6.37 13 rate Cash Costs on-mine Per ROM ton R/ton 226 224 1 213 187 14 $/ton 32 31 2 30 29 1 Per PGM oz R/oz 3,361 3,281 2 3,069 2,565 20 (3E+Au) $/oz 474 457 4 427 403 6 Per PGE R/oz 2,765 2,700 2 2,526 2,111 20 (5E+Au) $/oz 390 376 4 352 331 6 Capex Current/ R'000s 83,665 41,758 100 250,074 65,673 281 Sustaining 100% $'000s 11,809 5,812 103 34,821 10,309 238 Expansion R'000s - - - - 66,732 (100) 100% $'000s - - - - 10,476 (100) Tons Mined Underground ROM Ton 1,512 1,398 8 6,129 5,668 8 '000 Open Pit ROM Ton 77 96 (20) 495 419 18 '000 Total ROM Ton 1,589 1,494 6 6,624 6,086 9 '000 Surface Stockpiles Underground ROM Ton 49 13 274 49 29 69 Ore '000 Open Pit ROM Ton 30 23 31 30 16 92 Ore '000 Total ROM Ton 79 36 119 79 44 77 '000 Tons Processed Underground ROM Ton 1,392 1,424 (2) 5,920 5,639 5 '000 Open Pit ROM Ton 72 73 (1) 398 403 (1) '000 Total ROM Ton 1,464 1,497 (2) 6,319 6,042 5 '000 Grade Plant Head g/t 2.73 2.80 (2) 2.81 2.89 (3) Recoveries % 77 76 1 77 78 (1) PGM Production Platinum Ozs 58,930 61,240 (4) 263,930 262,263 1 Palladium Ozs 28,541 29,593 (4) 127,048 128,318 (1) Rhodium Ozs 10,403 10,720 (3) 46,097 46,663 (1) Gold Ozs 496 526 (6) 2,275 2,201 3 Total PGM Ozs 98,370 102,079 (4) 439,350 439,445 (0) (3E+Au) Iridium Ozs 4,073 4,175 (2) 18,026 18,238 (1) Ruthenium Ozs 17,148 17,794 (4) 76,483 76,387 0 Total PGE Ozs 119,591 124,048 (4) 533,859 534,069 (0) (5E+Au) Base Metals Production Nickel Tonnes 103 103 (0) 436 435 0 Copper Tonnes 45 46 (1) 190 191 (0) Chromite Tonnes 75 84 (10) 353 447 (21) (000)
Statistical Information: Marikana P&SA2
Data reflects 100% of Current Previous % Change Current Previous % Change mine operations Unit Quarter Quarter Quarter 12 12 Period Jun 2007 Mar 2007 on months months on Quarter Jun 07 Jun 06 Period Safety DIIR Rate/ 0.36 0.36 - 0.36 0.31 (14) 200,000 man hours Revenue Gross R'M 311 333 (6) 1,224 520 135 Revenue PGM basket $/oz 1,453 1,369 6 1,344 1,007 33 Price Gross cash % 35 46 (24) 44 16.0 172 margin Nickel $/lb 21.79 18.79 16 17.20 7.02 145 Price Copper $/lb 3.46 2.69 29 3.21 2.29 40 Price Ave R/$ 7.08 7.18 (1) 7.18 6.37 13 rate Cash Costs on-mine Per ROM ton R/ton 348 395 (12) 341 348 (2) $/ton 49 55 (11) 47 55 (13) Per PGM oz R/oz 6,274 5,977 5 5,219 5,069 3 (3E+Au) $/oz 886 832 6 727 796 (9) Per PGE R/oz 5,242 4,955 6 4,317 4,203 3 (5E+Au) $/oz 740 690 7 601 660 (9) Capital expenditure Current/ R'000s 49,301 53,240 (7) 128,048 8,521 1,403 Sustaining 100% $'000s 6,959 7,415 (6) 17,830 1,338 1,233 Expansion R'000s 4,531 (22,672) (120) 72,855 81,321 (10) 100% $'000s 640 (3,156) (120) 10,144 12,766 (21) Tons Mined Underground ROM Ton 204 147 39 708 188 276 '000 Open Pit ROM Ton 389 297 31 1,409 1,006 40 '000 Total ROM Ton 594 444 34 2,118 1,194 77 '000 Surface Stockpiles Underground ROM Ton 9 12 (23) 9 10 (4) Ore '000 Open Pit ROM Ton 184 171 7 184 93 98 Ore '000 Total ROM Ton 193 183 5 193 103 88 '000 Tons Processed Underground ROM Ton 208 163 28 708 178 298 '000 Open Pit ROM Ton 374 293 28 1,318 1,072 23 '000 Total ROM Ton 582 456 28 2,026 1,250 62 '000 Grade Plant Head g/t 3.10 3.33 (7) 3.19 3.20 (0) Recoveries % 56 62 (10) 63.69 67 (5) PGM Production Platinum Ozs 20,164 18,525 9 80,903 52,757 53 Palladium Ozs 8,963 8,595 4 37,719 24,461 54 Rhodium Ozs 2,917 2,794 4 12,750 8,023 59 Gold Ozs 242 234 4 1,003 671 49 Total PGM Ozs 32,286 30,148 7 132,375 85,912 54 (3E+Au) Iridium Ozs 1,171 1,146 2 4,997 3,156 58 Ruthenium Ozs 5,187 5,070 2 22,675 14,547 56 Total PGE Ozs 38,644 36,364 6 160,048 103,615 54 (5E+Au) Base Metals Production Nickel Tonnes 51 47 8 220 146 50 Copper Tonnes 28 25 10 119 84 41 Chromite Tonnes 41 42 (3) 140 135 4 (000) (000)
Statistical Information: Everest
Data reflects 100% of Current Previous % Change Current Previous % Change mine operations Unit Quarter Quarter Quarter 12 12 Period Jun 2007 Mar 2007 on months months on Quarter Jun 07 Jun 06 Period Safety DIIR Rate/ 0.62 0.58 (6) 0.62 0.73 18 200,000 man hours Revenue Gross R'M 400 416 (4) 1,468 550 167 Revenue PGM basket $/oz 1,438 1,331 8 1,286 1,037 24 Price Gross cash % 64 66 (3) 62 61.0 2 margin Nickel $/lb 21.79 18.79 16 17.20 7.02 145 Price Copper $/lb 3.46 2.69 29 3.21 2.29 40 Price Ave R/$ 7.08 7.18 (1) 7.18 6.37 13 rate Cash Costs on-mine Per ROM ton R/ton 193 258 (25) 187 161 16 $/ton 27 36 (24) 26 25 3 Per PGM oz R/oz 3,528 3,504 1 3,373 2,390 41 (3E+Au) $/oz 498 488 2 470 375 25 Per PGE R/oz 2,893 2,921 (1) 2,821 2,057 37 (5E+Au) $/oz 408 407 0 393 323 22 Capital expenditure Current/ R'000s 16,203 20,096 (19) 107,489 7,108 1,412 Sustaining 100% $'000s 2,287 2,797 (18) 14,967 1,116 1,241 Expansion R'000s 1,230 3,095 (60) 25,441 391,972 (94) 100% $'000s 174 431 (60) 3,542 61,534 (94) Tons Mined Underground ROM Ton 531 463 15 1,805 471 283 '000 Open Pit ROM Ton 47 70 (32) 589 991 (41) '000 Total ROM Ton 578 533 9 2,394 1,462 64 '000 Surface Stockpiles Underground ROM Ton 7 - - 7 - - Ore '000 Open Pit ROM Ton 4 2 75 4 - - Ore '000 Total ROM Ton 11 2 360 11 - - '000 Tons Processed Underground ROM Ton 729 464 57 2,593 471 451 '000 Open Pit ROM Ton 21 80 (74) 357 991 (64) '000 Total ROM Ton 750 544 38 2,950 1,462 102 '000 Grade Plant Head g/t 2.84 2.94 (3) 2.89 3.04 (5) Recoveries % 81 78 3 77 68 13 PGM Production Platinum Ozs 23,883 23,561 1 94,398 56,118 68 Palladium Ozs 12,544 12,359 1 52,527 32,108 64 Rhodium Ozs 4,155 3,845 8 15,534 7,821 99 Gold Ozs 341 342 (0) 1,478 984 50 Total PGM Ozs 40,923 40,107 2 163,937 97,031 69 (3E+Au) Iridium Ozs 1,598 1,444 11 5,741 2,925 96 Ruthenium Ozs 7,382 6,559 13 26,352 12,761 107 Total PGE Ozs 49,904 48,109 4 196,030 112,717 74 (5E+Au) Base Metals Production Nickel Tonnes 60 52 16 224 138 62 Copper Tonnes 29 25 18 111 74 50 Chromite Tonnes - - - - - - (000) (000)
Statistical Information: Mimosa
Current Previous % Current Previous % Rolling Change Change Unit Quarter Quarter Quarter 12 12 Period 12 Jun 2007 Mar 2006 on months months on Months Quarter Jun 07 Jun 06 Period Safety DIIR Rate/ 0.23 0.5 54 0.41 0.28 46 0.41 200,000 man hours Revenue Gross US$M 60 47 28 199 113 75 199 Revenue PGM basket US$/oz 1,047 950 10 974 720 35 974 Price Gross cash % 77 72 7 74 64 16 74 margin Nickel US$/lb 20.52 15.21 35 14.64 6.65. 120 14.64 Price Copper US$/lb 3.17 2.90 9 3.22 1.94 66 3.22 Price Cash Costs Per Rom US$/ 31 36 14 35 31 -13 35 ton ton Per PGM US$/oz 434 396 -10 381 336 -13 381 ounce 3E+Au Per PGM US$/oz -284 -154 85 -123 100 223 -123 ounce 3E+Au (after by-product credit) Per 6 PGM US$/oz 324 374 13 360 318 -13 360 ounce 5E+Au Per 6 PGM US$/oz -255 -134 91 -107 98 209 -107 ounce 5E+Au (after by-product credit) Capex Current US$ ' 2,284 2,396 5 7,803 7,999 2 7,803 000s Expansion US$ ' 3,608 720 -401 5,665 10,471 46 5,665 000s Mining Underground RoM ton 449 463 -3 1,847 1,713 8 1,847 '000 Surface Stock Piles Underground ton 361 393 -8 361 212 70 361 '000 Tonnes Processed Milled ton 481 379 27 1,692 1,532 10 1,692 '000 Grade Plant Head g/t 3.64 3.68 -1 3.66 3.71 -1 3.66 Recoveries % 77.6 77.7 -0.13 77.60 77.80 -0.26 77.60 PGM Production Platinum Ozs 21,724 17,624 23 78,240 72,232 8 78,240 Palladium Ozs 16,494 13,380 23 59,517 54,722 9 59,517 Rhodium Ozs 1,688 1,355 25 6,067 5,578 9 6,067 Gold Ozs 2,826 2,401 18 10,613 9,876 8 10,613 Total Ozs 42,732 34,760 23 154,436 142,408 8 154,436 Iridium Ozs 1,668 1,331 25 5,904 5,358 10 5,904 Ruthenium Ozs 823 666 24 2,965 9,876 -70 2,965 Total 5E + Ozs 45,223 36,757 23 163,605 142,408 15 163,305Au Base Metals Production Nickel Tons 599 468 28 2,090 1,958 7 2,090 Copper Tons 496 394 26 1,742 1,638 6 1,742 Cobalt Tons 18 15 24 64 59 9 64
Statistical Information: Chrome Tailings Retreatment Plant
Data reflects 100% of Current Previous % Change Current Previous % Change mine operations Unit Quarter Quarter Quarter 12 12 Period Jun 2007 Mar 2007 on months months on Quarter Jun 07 Jun 06 Period Safety DIIR Rate/ - - - - - - 200,000 man hours Revenue Gross R'M 19 23 (17) 77 43 80 Revenue PGM basket $/oz 1,856 1,806 3 1,704 1,207 41 Price Gross cash % 77 77 (1) 77 63.0 23 margin Nickel $/lb 21.79 18.79 16 17.20 7.02 145 Price Copper $/lb 3.46 2.69 29 3.21 2.29 40 Price Ave R/$ 7.08 7.22 (2) 7.18 6.37 13 rate Cash Costs on-mine Per ROM ton R/ton 65 124 (47) 97 96 1 $/ton 9 17 (46) 13 15 (11) Per PGM oz R/oz 2,382 2,750 (13) 2,377 2,507 (5) (3E+Au) $/oz 336 381 (12) 331 394 (16) Per PGE R/oz 1,599 1,699 (6) 1,587 1,766 (10) (5E+Au) $/oz 226 235 (4) 221 277 (20) Capital expenditure Current/ R'000s - - - - 950 (100) Sustaining 100% $'000s - - - - 149 (100) Expansion R'000s - - - - - - 100% $'000s - - - - - - Tons Mined Underground ROM Ton nm nm nm nm nm nm '000 Open Pit ROM Ton nm nm nm nm nm nm '000 Total ROM Ton nm nm nm nm nm nm '000 Surface Stockpiles Underground ROM Ton nm nm nm nm nm nm Ore '000 Open Pit ROM Ton nm nm nm nm nm nm Ore '000 Total ROM Ton nm nm nm nm nm nm '000 Tons Processed Underground ROM Ton nm nm nm nm nm nm '000 Open Pit ROM Ton 69 44 56 182 162 12 '000 Total ROM Ton 69 44 56 182 162 12 '000 Grade Plant Head g/t 4.00 4.98 (20) 4.32 3.21 34 Recoveries % 22 28 (22) 31 40 (23) PGM Production Platinum Ozs 1,157 1,200 (4) 4,512 3,799 19 Palladium Ozs 408 438 (7) 1,629 1,378 18 Rhodium Ozs 308 313 (2) 1,252 1,044 20 Gold Ozs 4 4 (3) 15 13 14 Total PGM Ozs 1,877 1,955 (4) 7,408 6,234 19 (3E+Au) Iridium Ozs 159 306 (48) 661 321 106 Ruthenium Ozs 759 902 (16) 3,032 2,296 32 Total PGE Ozs 2,795 3,163 (12) 11,101 8,851 25 (5E+Au) Base Metals Production Nickel Tonnes 5 6 (25) 12 4 203 Copper Tonnes 4 3 43 10 2 389 Chromite Tonnes - - - - - (000) (000) 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 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 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 Management
Alex Mhembere Managing Director
Winston Chitando Finance Director
Herbert Mashanyare Technical Director
Peter Chimboza Operations Director Issued Capital
At 30 June 2007, the Company had on issue:
85,485,101 fully paid common shares and 1,098,652 unlisted options
Substantial Shareholders 31 March 2007 Number of Shares Percentage
Impala Platinum Holdings Ltd 7,127,276 8.34 Nutraco Nominees Limited 5,649,694 6.61 Trading InformationISIN number BMG0440M1029Broker (LSE) (Joint) Broker (ASX) Sponsor (JSE) Morgan Stanley & Co Euroz Securities Investec Bank Limited International Limited Level 14, The Quadrant 100 Grayston Drive 20 Cabot Square, Canary Wharf 1 William Street Sandown London, E14 4QW Perth WA 6000 Sandton 2196
Telephone: +44 (0) 20 7425 8000 Telephone: +61 (0)8 Telephone: +27 (0)11 Facsimile: +44 (0)20 7425 8990 9488 1400 286 7326
Facsimile: +61 (0)8 Facsimile: +27 (0)11 9488 1478 291 1066 Investec Securities Limited Investec Bank (UK) Limited 2 Gresham Street London, 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 2007Postal 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, Australia
Postal Address PO Box 485, South Perth, WA 6151, Australia.Telephone: +61 (0)8 9367 5211Facsimile: +61 (0)8 9367 5233Email: [email protected]$ 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
DME South African Government Department of Minerals and Energy DMS Dense Media Separation 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 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), 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
or visit: www.aquariusplatinum.com
AQUARIUS PLATINUM LIMITEDRelated Shares:
AQP.L