27th Jan 2005 10:36
AQUARIUSQUARTERLY REPORT 31 DECEMBER 2004Aquarius GroupHighlights * Group attributable production up 6% to 74,973 PGM ounces for the quarter to December 2004. Record production at Kroondal, P&SA ahead of schedule * Marikana production increases with a decrease in unit cash costs * Improved Mimosa production rates, offset by a shortened reporting period, resulting in a steady quarter on quarter output Strategic * BEE entry into AQPSA completed, R860 million subscription paid in October 2004 * Cash / debt offset agreement entered into with Investec / ABSA. Outstanding AQPSA debt balance reduced by R250 million to R112 million, the term debt facility remains intact * Construction of the Everest mine commenced in October 2004, progressing on schedule * Chromite tailings retreatment project construction completed, first production delivered to smelter on 21st January 2005 * Aquarius becomes first foreign company to secondary list on the JSE in terms of new foreign exchange control dispensation OperationsKroondal * Record quarter, production improves a further 6% to 71,523 PGM ounces (Aquarius attributable 35,761 PGM ounces) * Concentrator plant recoveries maintained at 80% as mill throughput increased * Improved safety performance, 12 month rolling DIIR of 0.96 * Cash operating margin increases to 40%, as unit cash costs decrease to R2,224 per PGM ounce Marikana * PGM production improves 11% to 24,019 PGM ounces * Concentrator plant recoveries increase to 54% from 45% in the previous quarter * Improved safety performance, DIIR for the quarter improves to 0.70 from 0.80 in the previous quarter * On mine cash costs show improvement to result in a modest positive cash margin in the month of December Mimosa * Production in line with previous quarter at 30,386 PGM ounces (Aquarius attributable 15,193 PGM ounces) despite shortened reporting period to align Mimosa production cut-off dates with the rest of the Group * Improved safety performance, DIFR for quarter improves to 0.29 from 0.54 * Cash operating margin remains strong at 63% * Corporate tax rate in Zimbabwe reduced in December from 20% to 15% backdated to January 2004 * Mine management encouraged by its discussions with the Reserve Bank of Zimbabwe with respect to Mimosa's foreign currency arrangements ProjectsPooling and Sharing Agreement * Hot commissioning commencing March 2005, ahead of schedule * Underground tonnage build-up progressing ahead of plan * A 600,000 ton ore stockpile is anticipated to be built up ahead of the new concentrator start-up * Construction of 4th decline shaft started in January 2005 Chromite Tailings Retreatment Project * Construction completed in December * First concentrate delivered to smelter on 21st January 2005 Everest * Project started construction in October 2004 with anticipated commissioning in December 2005 Production by MinePGMs (4E) Quarter Ended Half Year ended Mar 2004 Jun 2004 Sep 2004 Dec 2004 Dec 2004 Dec 2003 Kroondal 60,032 59,830 67,486 71,523 139,009 117,764 Marikana 17,847 20,220 21,694 24,019 45,713 49,109 Mimosa 28,621 28,807 30,608 30,386 60,994 61,962 Total 106,500 108,857 119,788 125,928 245,716 228,835Production by Mine attributable to AquariusPGMs (4E) Quarter Ended Half Year ended Attributable to Aquarius Mar 2004 Jun 2004 Sep 2004 Dec 2004 Dec 2004 Dec 2003 Kroondal 30,016 29,915 33,743 35,761 69,504 (a) 100,200 (b) Marikana 17,847 20,220 21,694 24,019 45,713 49,109 Mimosa 14,311 14,403 15,304 15,193 30,497 30,981 TOTAL 62,174 64,538 70,741 74,973 145,714 180,290(a) includes full impact of the P&SA(b) includes 2 months of impact of the P&SAAQUARIUS PLATINUM (SOUTH AFRICA) (PTY) LTD (Aquarius 50.5%)Kroondal Platinum MineSafetyThe DIIR recorded a good improvement to 0.38 for the quarter and thus loweredthe 12 month rolling DIIR to 0.96. Regrettably a fatal accident occurred at themine on 20 November 2004 when a LHD operator sustained an injury to the head.The circumstances leading up to the accident are unclear and the matter isunder investigation by inspectors of the Department of Minerals and Energy.Processing * Record 150,000 square meters mined leading to 1,067,000 tons ore hoisted from underground, with a further 109,000 tons of opencast produced * Record concentrator throughput of 878,000 tons achieved * 71,523 PGM ounces produced (Aquarius attributable 35,761 PGM ounces) * Closing surface stockpile at quarter end (ahead of the Christmas and New Year holidays) at 503,000 tons OperationsPGM production improved by 6% to 71,523 PGM ounces for the quarter. 878,000tons were processed at an improved head grade of 3.15 g/t (3.02 g/t for theprevious quarter). This achievement was commendable as the plant was notoperated for a period in order to undertake a rod mill reline and a replacementof a failed ball mill bearing. Concentrator plant recoveries also improved to arecord 80.35% in the December month.The PGM basket price increased to $700 per PGM ounce from $672 the previousquarter, with this improvement in Dollar price offset by a strengthening of theRand average exchange rate to R6.11 per $ from R6.34 the previous quarter. Theexchange rate ended the quarter stronger still at R5.62 per $.The mining operations produced a record 1,176,000 tons for the quarter, with1,067,000 tons hoisted from underground and 109,000 tons mined from the openpits. The increased face length derived as a result of being able to developdown dip as part of the PSA project has had a marked positive effect onproduction.Cash costs at Kroondal were well controlled recording a decrease to R2,224 perPGM ounce, down from R2,436 per PGM ounce, a 9% improvement.Kroondal: Metal in concentrate produced (ounces)Quarter ended Pt Pd Rh Au PGMs (4E) PGMs (4E) attributable to Aquarius Dec 04 42,659 20,815 7,723 326 71,523 35,761* Sep-04 40,389 19,471 7,285 341 67,486 33,743* Jun-04 35,724 17,343 6,481 282 59,830 29,915* Mar-04 36,283 17,243 6,233 273 60,032 30,016* Dec-03 36,476 17,021 6,189 276 59,962 42,398 Sep-03 34,926 16,616 6,009 251 57,802 57,802Note * Reflects full impact of the P&SA for an entire quarter.Pooling & Sharing Agreement (P&SA)The P&SA expansion program is set to commission in the coming quarter. Atsteady state production, the new concentrator is targeted to produce 250,000PGM ounces per annum, effectively doubling the Kroondal Mine's annual output to505,000 PGM ounces per annum. Expansion of the underground mine at the Central,East and No 3 shafts progressed well through the quarter. A total of 1,020meters of down-dip development has now been completed. The underground mine iscurrently producing over 350,000 tons per month which places the build-upapproximately 5 months ahead of project plan.Cold commissioning of the new concentrator will start in January 2005 with hotcommissioning planned from March 2005, 3 months ahead of schedule. A stockpileof over 600,000 tons is anticipated to be available for plant commissioning.First ounces from the new plant are expected during the final quarter (April toJune 2005) of this financial year.The P&SA project's capital expenditure commitments were R548 million at the endof the quarter with capital expenditure paid to date of R405 million. AQPSA'sshare of these commitments and expenditure is 50% of these amounts.Marikana Platinum MineSafetyThe DIIR for this quarter was 0.70 compared to 0.80 the previous quarter,ensuring that the mine retained the coveted NOSA 4 Star Platinum status.Mining * Improved stripping ratio during the quarter has had a positive impact on costs * Second contractor introduced to supplement shortfall in contribution from first contractor Processing * 364,000 tons processed during the quarter * Concentrator plant recoveries at 54% up from 45% in the previous quarter * 24,019 PGM ounces, up 11% from the previous quarter OperationsPGM production improved by 11% to 24,019 PGM ounces for the quarter. This wasdespite fewer tons being processed during the quarter, at 364,000 tons comparedto 400,000 tons in the previous quarter. The increase in PGM ounces was theresult of improved recoveries as deeper more competent ore was accessed incertain parts of the pit. Reflecting the access to competent ore, plantrecoveries for the quarter improved to 54% from last quarter's 45%.As a result of a lower stripping ratio and higher recovery levels cash costsper PGM ounce reduced by 18% to R4,248, an improvement of R950 per PGM ouncecompared to the previous quarter. This improvement is encouraging and hasresulted in the mine breaking even in cash terms for the month of December.Further efficiencies will be achieved through the continuing implementation ofthe revised mining plan. This is evident in the reduced 364,000 tons processedduring the quarter at an improved head grade of 3.79 g/t (compared to 3.72 g/tfor the previous quarter).The Marikana PGM basket price increased marginally to $690 per PGM ounce from$685 in the previous quarter, with this improvement in Dollar price offset by astrengthening of the Rand average exchange rate to R6.11 per $ from R6.34 theprevious quarter. The exchange rate closed the quarter stronger still at R5.62per $.OutlookWhile Aquarius is implementing the revised mining plan, discussions are beingheld with owners of adjacent mineral rights with a view to cooperation "acrossfarm boundaries".Trial underground miningTrial underground mining will commence in the current quarter. It is expectedthat underground mining will lead to a reduction in unit cash costs and createmore flexibility for the exploitation of the ore body.Contractor dispute with contractor Moolman BrothersThe arbitration date for the dispute relating to the Rise and Fall component ofthe mining contract has been set for April 2005.Marikana: Metal in concentrate produced (ounces)Quarter ended Pt Pd Rh Au PGMs (4E) Dec-04 15,808 6,214 1,800 197 24,019 Sep-04 13,937 6,039 1,509 209 21,694 Jun-04 13,591 5,086 1,369 174 20,220 Mar-04 11,950 4,484 1,272 141 17,847 Dec-03 16,275 6,843 1,892 219 25,229 Sep-03 15,958 6,185 1,529 208 23,880Everest Platinum MineSafetyNo accidents were reported.ProgressConstruction of Everest started in October 2004, following successfulcompletion and the receipt of funds from the BEE transaction. The capitalbudget is R819 million including a R33 million allowance for escalation.Everest will mine and process 3 million tons per annum of UG2 ore to produce225,000 ounces of PGMs per annum at steady state. Commissioning is anticipatedin December 2005, with full production to be attained in 2006. Everest , with aUG2 reserve of 26.79 million tonnes at 3.36 g/t (4E) containing 2.8 millionounces of PGMs, is the company's third mining operation in South Africa.Dowding Reynard and Associates (DRA), who managed the construction of theKroondal, Marikana, and P&SA concentrators, have been appointed to execute theEverest project. Preparatory engineering work undertaken throughout 2004 hasallowed the project to be rapidly mobilised, with earthworks starting withinthe week following funds receipt. Construction activities during the quarterfocussed on the process plant platform, excavation of the portal for theunderground mining decline and general infrastructure. Engineering, design andprocurement activities are proceeding in parallel and project execution is ontrack for hot commissioning during December 2005.Both opencast and underground mining contractors were appointed during theperiod. The opencast mining contractor, MCC, will start mining activitiesduring the first quarter of 2005. Shaft Sinkers, the underground contractor,will start the development of the decline during the second quarter of 2005.AQPSA mining personnel from the Kroondal Mine were seconded to Everest toenable a transfer of knowledge and skills, and will be transferred to siteduring the next reporting period to manage the mining operations.The identification and implementation of Social Upliftment and SustainableLivelihood projects is ongoing. Contractor recruitment of local labour iscoordinated with the Department of Labour in Lydenburg, and has provedeffective with sixty local people employed during the period. The Adult BasicEducation and Training (ABET) facility, where community members attendtwice-weekly classes, is ongoing and a project to supply water to the localprimary school was initiated during the period. Projects which will beinitiated during the next period include a day care centre, the removal ofalien plants, a nutritional feeding scheme and a catering project.The transfer of land title to the local Phetla community under a settlementreached with the land restitution authorities continues. Under the terms of theagreement land required for the mine to operate will be leased back to AQPSA.MIMOSA INVESTMENTS (Aquarius 50%)Mimosa Platinum MineSafetyThe mine recorded a significant improvement in safety performance. During thequarter the DIFR was 0.29 compared to the last quarter's figure of 0.54. Thefinancial year to date DIFR stands at 0.40 and the rolling 12 months DIFR at0.49.OperationsMining operating days were reduced by six during the quarter as the monthlyreporting date was brought forward from 28 to 22 December to accord with AQPSA.In addition, three operating days were lost to illegal industrial action calledby the trade union organisation. Despite the loss of nine days, PGM productionfor the quarter was stable at 30,386 ounces, similar to previous quarter'sproduction of 30,608 ounces, reflecting an improvement in productivity.The Mimosa PGM basket price increased to $588 per PGM ounce from $571 in theprevious quarter. Together with the contribution from base metals(approximately 27% of gross revenue) this generated sales revenue for thequarter of $20.1 million, an increase of $0.1 million from the previous quarterat a gross cash margin (63%) of some $12.7 million.The Government of Zimbabwe announced a reduction in the rate of company tax formining companies from 20% to 15% backdated to January 2004. This development ismost welcome.Mining operations hoisted a ROM total of 326,000 dry metric tonnes. Thiscompares with 329,000 dry metric tonnes in the previous quarter. Nine operatingdays were lost in the quarter. Tonnes milled during the period amounted to338,000 tonnes at an average plant feed grade of 3.65 PGM g/t compared with335,000 tonnes at 3.68 PGM g/t in the previous quarter. PGM production remainedstable quarter on quarter with a slight decrease to 30,386 PGM ounces from30,608 ounces.Earlier reported problems encountered in the crushing circuit have beenresolved. Satisfactory throughput is now being achieved enabling a steady stateoperation of the flotation circuits. The plant achieved above target metalrecovery rates in respect of base metals and focus in the current quarter is onachieving similar results for PGMs.Operating CostsExchange rates achieved were at the Reserve Bank of Zimbabwe (RBZ) auctionfloor rates which averaged Z$5,900 per $. This level of exchange rate has notcompensated for the inflation rate impact on operating costs at mine level.Consequently unit cash costs per PGM ounce for the quarter increased to $342(or $124 per PGM ounce after by-product credits) from $321 (or $111 per PGMounce after by-product credits) for the previous quarter. On a 12 month rollingbasis to December 2004, unit cash costs per PGM ounce were $319 (or $106 perPGM ounce after by-product credits). The 15% FOB incentive granted by the RBZwas offset against operating costs as per normal practice.The expansion project was closed out at a capital cost of $41 million.Industrial RelationsThree operating days were lost to illegal industrial action called by the tradeunion to obtain concessions during national wage negotiations conducted by theChamber of Mines. The combined effects of a harsh socio-economic environmentand an approaching parliamentary election will make managing the industrialrelations environment in current quarter somewhat difficult.PGM Sector ReformsThe Government of Zimbabwe, through the RBZ, has accorded the PGM sector aspecial status in order to stimulate growth of the Zimbabwe platinum industryand enhance Government's understanding of the sector. Mimosa management hasbeen encouraged by its discussions with the Reserve Bank to achieve a "win-winsituation" with respect to the management of foreign currency flows. Asuccessful outcome of these discussions will lead to an evaluation of furthergrowth opportunities on the mine.Mimosa : PGMs in Concentrate Produced (PGM ounces)Quarter Pt Pd Rh Au PGMs (4E) PGMs (4E) ended attributable to Aquarius Dec-04 15,557 11,514 1,198 2,117 30,386 15,193 Sep-04 15,727 11,562 1,210 2,109 30,608 15,304 Jun-04 14,653 10,902 1,187 2,065 28,807 14,404 Mar-04 14,647 10,621 1,281 2,072 28,621 14,311 Dec-03 15,773 11,282 1,256 2,162 30,473 15,237 Sep-03 16,350 11,892 1,312 1,935 31,489 15,745Mimosa : Base metals in Concentrate Produced (tons)Quarter Ended Nickel Copper Cobalt Dec-04 444 374 13 Sep-04 447 362 14 Jun-04 414 329 13 Mar-04 412 340 13 Dec-03 432 360 13 Sep-03 452 374 13AQUARIUS PLATINUM (SA) (CORP SERVICES) (PTY) LIMITED (ASACS), (Aquarius 100%)Chromite Ore Tailings Retreatment Project (ASACS 50%)SafetyNo accidents were reported during the quarterProject DevelopmentConstruction of the plant was completed during the quarter. Cold commissioningcommenced during the first week in December and hot commissioning commenced17th December 2004. First concentrate was delivered to the smelter on 21stJanuary 2005.CORPORATE MATTERSBlack Economic Empowerment (BEE)The BEE transaction announced to shareholders on 26th July 2004 and approved byshareholders in Special General Meeting on 11th October 2004 was formallyconcluded with the receipt of R860 million in cash by the Aquarius Group on the29th October 2004.The transaction has two key components, the first of which is now completed.This saw the BEE consortium, led by Savannah Resources (Pty) Limited, subscribefor a 29.5% shareholding in the enlarged share capital of AQPSA. ConcurrentlyImpala Platinum Holdings Limited (Impala) acquired an additional holding inAQPSA from Aquarius to increase their shareholding to 20% in AQPSA followingthe dilution resulting from the issue of the new shares in AQPSA to the BEEconsortium. At this time, the shareholdings in AQPSA are as follows: * 50.5% interest by AQP; * 29.5% by the Savannah consortium; and * 20% held by Impala. The consideration paid by Impala amounted to R71.5 million, which was settledby the cession of R71.5 million of interest bearing loan account to Aquarius.At the time of the BEE transaction, AQPSA had an interest bearing loan of overR93 million (both principal and accumulated interest) to Impala. Followingcession of R71.5 million of the loan to Aquarius, AQPSA settled the outstandingbalance of the loan in cash.The final component of the transaction will in time and subject to theconditions detailed in the notice of meeting to shareholders of 17th September2004, see the Savannah consortium's 29.5% holding in AQPSA be exchanged for24,599,542 new Aquarius shares. Following this exchange, Aquarius will hold 80%of AQPSA and Savannah consortium constituent members will hold approximately23% of the enlarged share capital of Aquarius.In terms of the BEE transaction agreements, Aquarius has invited the Savannahconsortium to nominate a non-executive director to the Board of Director's ofAquarius and to nominate three non-executive directors to the Board ofDirector's of AQPSA.JSE Securities Exchange South AfricaUnder revised exchange control regulations announced by South African FinanceMinister, the Honourable Trevor Manuel in February 2004, Aquarius became thefirst foreign company to list its shares on the JSE. Listing on 8 December2004, to fulfil the company's obligations to its empowerment partners, tradehas been light to date. Steps to improve liquidity are in progress.Cash balances / DebtAquarius Group cash balances at 31 December 2004 were $137 million, after thereduction in debt at AQPSA by R250 million in terms of an offset arrangementwith Investec / ABSA.Shortly before the close of the quarter, AQPSA signed an agreement withInvestec / ABSA to create an innovative cash balance management offsetmechanism in respect of its existing term debt facility. AQPSA is permitted todeposit its cash (up to the outstanding balance of the debt facility) in orderto reduce its interest expense for the period that the cash is on deposit withthe banks. An amount of R250 million has been placed on deposit with the banks,thereby reducing the Investec/ABSA debt balance to R112 million. Funds will bere-advanced by the banks, without limitation at AQPSA's request, up to thelimits of the original facility. These funds are anticipated to remain ondeposit until the end of the calendar year.Approval of long term incentive and bonus planDuring the quarter the long term incentive plan and option plan and anamendment to terms of existing options granted was approved by shareholders. Kroondal 100% Current Previous +/- % YTD Prev +/- % Corr Unit Quarter Quarter Quarter 6 6 12 Dec Sept on months months months 2004 2004 Quarter to Dec to Dec Ytd 2004 2003 Safety DIIR Rate/ 0.38 0.94 (60) 0.66 1.52 (57) 200,000 man hours Revenue R'M 263 257 2 521 412 26 Gross Revenue PGM basket Price $/oz 700 672 4 686 550 25 Gross cash margin % 40 36 11 38 50 (24) Nickel Price $/lb 6.38 6.36 0 6.37 4.94 29 Copper Price $/lb 1.40 1.29 9 1.35 0.86 56 Ave R/$ rate 6.11 6.34 (4) 6.23 7.05 (12) Cash Costs Per ROM ton R/ton 181 189 (4) 185 133 39 $/ton 30 30 (1) 30 19 56 Per PGM ounce R/oz 2,224 2,436 (9) 2,323 1,727 35 $/oz 364 384 (5) 373 245 52 Per PGM ounce after R/oz 2,129 2,333 (9) 2,231 1,654 35 by product credit $/oz 348 368 (5) 357 235 52 Capital expenditure Current R'000s 42.14 1,455 - 1,497 25,260 (94) $'000s 6.90 229 - 236 3,586 (93) Expansion R'000s 197,927 115,420 71 313,347 - - $'000s 32,394 18,199 78 50,593 - - Mining Processed Underground ROM Ton 792 803 (1) 1,595 1,379 16 '000 Open Pit ROM Ton 86 65 32 151 152 (1) '000 Total ROM Ton 878 868 1 1,746 1,531 14 '000 Grade Plant Head g/t 3.15 3.02 4 3.09 3.14 (2) Recoveries % 80% 80% (0) 80% 75% 7 PGM Production Platinum Ozs 42,659 40,389 6 83,048 71,402 16 Palladium Ozs 20,815 19,471 7 40,286 33,637 20 Rhodium Ozs 7,723 7,285 6 15,008 12,198 23 Gold Ozs 326 341 (5) 667 527 27 Total Ozs 71,523 67,486 6 139,009 117,764 18 Base Metals Production Nickel Tonnes 67 63 6 130 98 33 Copper Tonnes 30 27 11 57 46 24 Chromite Tonnes 69 50 38 119 145 (18) (000) Marikana Current Previous +/- % YTD Prev +/- % Corr Unit Quarter Quarter Quarter 6 6 12 Dec 2004 Sept 2004 on months months months Quarter to to Dec Ytd Sept 2003 2004 Safety DIIR Rate/ 0.70 0.80 (13) 0.75 0.69 9 200,000 man hours Revenue R'M 83 82 2 165 182 (9) Gross Revenue PGM basket Price $/oz 690 685 1 688 579 19 Gross cash margin % (22) (38) (42) (30) 2 n/a Nickel Price $/lb 6.38 6.35 1 6.36 4.94 29 Copper Price $/lb 1.40 1.29 9 1.35 0.86 57 Ave R/$ rate 6.11 6.34 (4) 6.23 7.05 (12) Cash Costs Per ROM ton R/ton 280 282 (0) 281 230 22 $/ton 46 44 (5) 45 33 37 Per PGM ounce R/oz 4,248 5,198 (18) 4,699 3,631 29 $/oz 695 820 (15) 755 515 47 Per PGM ounce after R/oz 4,077 5,100 (20) 4,588 3,582 28 by product credit $/oz 667 804 (17) 737 508 45 Capital expenditure Current R'000s 2,048 5,100 (60) 7,148 3,228 121 $'000s 335 804 (58) 1,148 458 151 Expansion R'000s - - - 15,826 - $'000s - - - 2,245 - Processed Underground ROM Ton - - - - - '000 Open Pit ROM Ton 364 400 (9) 764 774 (1) '000 Total ROM Ton 364 400 (9) 764 774 (1) '000 Grade Plant Head g/t 3.79 3.72 2 3.75 3.77 (0) Recoveries % 54% 45% 19 50% 52% (4) PGM Production Platinum Ozs 15,808 13,937 13 29,745 32,233 (8) Palladium Ozs 6,214 6,039 3 12,253 13,029 (6) Rhodium Ozs 1,800 1,509 19 3,309 3,421 (3) Gold Ozs 197 209 (6) 406 426 (5) Total Ozs 24,019 21,694 11 45,713 49,109 (7) Base Metals Production Nickel Tonnes 26 23 12 49 50 (1) Copper Tonnes 13 13 2 26 29 (11) Chromite Tonnes 63 61 3 124 10 - (000) Mimosa 100% Current Previous +/- % YTD Prev. +/- % Rolling Corr Unit Quarter Quarter Quarter 6 months 6 6 12 Dec Sep 2004 on to Dec months months months 2004 Quarter 2004 Dec Ytd to Dec 2003 2004 Safety DIFR Rate/ 0.29 0.54 (46) 0.40 0.45 (11) 0.49 200,000 man hours Revenue Gross Revenue R'M 20.1 20 1 40 34 17 78 PGM basket $/oz 588 571 3 580 502 16 578 Price Gross cash % 63 62 2 62 70 (11) 62 margin Nickel Price $/lb 6.17 6.06 2 6.11 5.31 15 6 Copper Price $/lb 1.20 0.97 24 1.08 0.80 35 1.10 Cash Costs Per ROM ton $/ton 31 29 7 29 19 53 29 Per PGM ounce $/oz 342 321 7 319 202 58 319 Per PGM ounce $/oz 124 111 12 105 20 425 106 after by-product credit Capital expenditure Current $'000s 3,504 5,650 (38) 9,154 4,195 118 14,246 Expansion $'000s 335 321 4 656 3,212 (80) 1,701 Mining Underground ROM Ton 326 329 (1) 656 665 (1) 1,320 '000 Grade Plant Head g/t 3.65 3.68 (1) 3.66 3.75 (2) 3.71 Recoveries % 76.6 77.0 (1) 76.9 76.0 1 75.6 PGM Production Platinum Ozs 15,557 15,727 (1) 31,284 32,123 (3) 60,584 Palladium Ozs 11,514 11,562 (0) 23,076 23,174 (0) 44,599 Rhodium Ozs 1,198 1,210 (1) 2,408 2,568 (6) 4,876 Gold Ozs 2,117 2,109 0 4,226 4,097 3 8,363 Total Ozs 30,386 30,608 (1) 60,994 61,962 (2) 118,422 Base Metals Production Nickel Tonnes 444 447 (1) 891 883 1 1,716 Copper Tonnes 374 362 3 736 734 0 1,405 Cobalt Tonnes 13 14 (7) 26 27 (4) 52 Aquarius Platinum LimitedBoard of DirectorsNicholas Sibley Chairman Stuart Murray Chief Executive Officer David Dix Non-executive Edward Haslam Non-executive Catherine Markus Non-executive Sir William Purves Non-executive Patrick Quirk Non-executive Company SecretaryWilli BoehmIssued CapitalAt 31 December 2004, the Company had on issue:82,753,892 fully paid ordinary shares4,027,929 unlisted optionsSubstantial Shareholders 31 December 2004 No. of Shares Percentage Impala Platinum Holdings Ltd 7,141,966 8.63 % J P Morgan Nominees Australia Limited 5,512,590 6.66 % ANZ Nominees Limited 5,222,040 6.31 % Chase Nominees Limited (FISL) 4,684,626 5.66 % Broker (ASX) Broker (LSE) Euroz Securities Numis Securities Level 14, The Quadrant Cheapside House 1 William Street 138 Cheapside Perth WA 6000 London EC2V 6LH Telephone: +61 8 9488 1400 Telephone: +44 20 7776 1500 Fax: +61 8 9488 1478 Facsimile: +44 20 7776 1550 Sponsor in South Africa (JSE) Nedbank Capital 135 Rivonia Road Sandown, Sandton, 2196 Telephone: +27 (0) 11 294 3601 Aquarius Platinum (South Africa) Aquarius Platinum Corporate Services (Proprietary) Ltd. Pty Ltd 50.5% Owned 100% Owned Registration Number 2000/000341/07 ACN 094 425 555 (Incorporated in the Republic of South (Incorporated in Australia) Africa) Level 4, Suite 5 The Great Wall Group Building Block A, 1st Floor South Shore Centre 5 Skeen Boulevard 85 The Esplanade Bedfordview South Africa 2007 South Perth Western Australia 6151 P O Box 1282 Telephone: +61 (8) 9367 5211 Bedfordview South Africa 2009 Facsimile: +61 (8) 9367 5233 Telephone: +27 11 455 2050 Email: [email protected] Facsimile: +27 11 455 2095 Email: [email protected] Management Stuart Murray Executive Chairman Gert Ackerman Managing Director Ayanda Khumalo Finance Director Gordon Ramsay Projects Director Neil Collett General Manager P&SA Project Gabriel de Wet General Manager Engineering Graham Ferreira General Manager Finance Hugo Holl General Manager Everest Rob Mallinson General Manager Marikana Phil Rooke General Manager Metallurgy & New Projects Hulme Scholes General Manager Commercial & Legal / Company Secretary Dave Starley General Manager Kroondal 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 ASACS Aquarius Platinum (SA) (Corporate Services) (Pty) Limited DIFR Disabling Injury Frequency 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 g/t Grams per tonne, measurement unit of grade (1 g/t = 1 part per million) Great Dyke Reef A PGE bearing layer within the Great Dyke Complex in Zimbabwe JORC code Australasian code for reporting of Mineral Resources and Ore Reserves JSE JSE Securities Exchange South Africa Kroondal Kroondal Platinum Mine LHD Load Haul Dump machine Marikana Marikana Platinum Mine Mimosa Mimosa Mining Company (Private) Limited or Mimosa Platinum Mine NOSA National Occupational Safety Association PGE(s)(6E) Platinum Group Elements. Six metallic elements commonly found together which constitute the platinoids. These are Pt (platinum), Pd (palladium), Rh (rhodium), Ru (ruthenium), Ir (iridium) and Os (osmium). PGM(s) (4E) Platinum Group Metals. Aquarius reports the composite grade comprising Pt+Pd+Rh+Au (gold), the Pt (platinum), Pd (palladium) and Rh (rhodium) being the most economic platinoids in the UG2 and Great Dyke reefs. P&SA Pooling & Sharing Agreement between AQPSA and RPM Ltd in respect of Kroondal 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 in South Africa $ United States Dollar Z$ Zimbabwe Dollar Further information please visit our website www.aquariusplatinum.com orContact:In Australia: Willi Boehm Aquarius Platinum Corporate Services Pty Ltd +61 (0) 8 9367 5211 In United Kingdom: Alex Buck Nick Bias Buck-Bias Limited Buck-Bias Limited +44 (0) 7932 740 452 + 44 (0) 7887 920 530 In South Africa: +27 (0) 11 294 3601 Charmane Russell Russell & Associates +27 (0) 11 880 3924 / +27 (0) 82 376 2327 ENDRelated Shares:
AQP.L