27th Jan 2006 09:02
AQUARIUS PLATINUM LIMITEDQUARTERLY REPORT: 31 DECEMBER 2005 AQUARIUS ADDS NEW PRODUCTION AT EVEREST MARIKANA POOL & SHARE AGREEMENT IMPLEMENTED Mimosa expansion on track * Group attributable production 94,557 PGM ounces for the quarter (104,951 PGM ounces produced prior to the Marikana P&SA2 implementation) * Marikana P&SA2 retrospectively implemented at quarter start * Everest Mine commissioned in November, 7,111 PGM ounces produced in December * Mimosa expansion (Wedza Phase IV Upgrade) on track * PGM US Dollar basket price for South African operations rises 16% and for Zimbabwe operations rises by 8% Highlights of the QuarterKroondal (P&SA1) * Record 117,175 PGM ounces produced for the quarter (Aquarius attributable 58,588 PGM ounces) * Pool & Share Agreement (P&SA1) expansion nears completion; underground operations produce a record 1.6 million tons * Cash cost per ROM ton and per PGM ounce reduce 2% over previous quarter * Gross cash margin rises to 56% on higher PGM basket price * No. 4 decline established, will transfer to Marikana P&SA2 Marikana * P&SA2 signed and implemented, unlocks the future potential of the asset * AQPSA cash margin recorded at 24% as a result of P&SA2 implementation * Trial underground mining project progressing to plan, favourable mining conditions encountered * Replacement primary opencast contract awarded to MCC, operations commencing January 2006 Everest * Commissioning of metallurgical plant one month ahead of schedule * 7,111 PGM ounces produced during December commissioning * Underground establishment progressing on schedule Mimosa * Consistent quarterly production at 35,394 PGM ounces (Aquarius attributable 17,697 PGM ounces) * Wedza Phase IV Upgrade on track for commissioning in May 2006 * Cash costs per PGM ounce reduce 10% to $325 per PGM ounce, $94 per PGM ounce after by-product credits * Cash margin rises to 64% on higher PGM basket price and lower local costs CTRP * Improved PGM production, up 12% on previous quarter * Improved understanding of the metallurgical issues affecting production * Test work and plant redesign in progress to improve throughput and recovery levels Production by Mine PGMs (4E) Quarter Ended Half Year Ended Mar 2005 Jun 2005 Sep 2005 Dec 2005 Dec 2004 Dec 2005 + / - % Kroondal 69,051 116,669 115,362 117,175 139,099 232,537 67% Marikana 26,509 26,940 27,322 20,789 45,713 48,111 5% Mimosa 33,529 35,644 36,368 35,394 60,994 71,762 18% CTRP 644 1,473 1,363 1,533 - 2,897 - Everest - - - 7,111 - 7,111 - Total 129,733 180,726 180,415 182,002 245,806 362,418 47%Production by Mine Attributable to Aquarius PGMs (4E) Quarter Ended Half Year Ended Mar 2005 Jun 2005 Sep 2005 Dec 2005 Dec 2004 Dec 2005 + / - % Kroondal 34,526 58,335 57,681 58,588 69,504 116,269 67% Marikana 26,509 26,940 27,322 10,394 45,713 37,716 -17% Mimosa 16,765 17,822 18,184 17,697 30,497 35,881 18% CTRP 322 737 682 767 - 1,449 - Everest - - - 7,111 - 7,111 - Total 78,122 103,834 103,869 94,557 145,714 198,426 36%AQUARIUS PLATINUM (SOUTH AFRICA) (PTY) LTD (Aquarius Platinum 50.5%)Kroondal Platinum MineSafetyThe (12-month rolling average) DIIR deteriorated to 0.96 from 0.65 in theprevious quarter. Action has been initiated to reduce the number of disablinginjuries.Processing * Plant feed increased to a record 1.61 million tons * Production increased 2% to a record 117,175 PGM ounces * Overall recovery decreased marginally by 1% to 77%, due to an increase in opencast material processed Mining * Underground operations hoisted a record 1.6 million tons from 213,000 square meters mined, notably during December underground operations hoisted a record 590,000 tons * The new No. 4 decline was established and was transferred as of 21st December 2005, as part of the boundary adjustments with the Marikana P&SA2 in exchange for the RPM Townlands Block (please reference the Marikana P&SA press release of 13th July 2005) RevenueThe PGM basket price for the quarter increased 16% to $946 per PGM ounce,resulting in mine revenue of R654 million for the quarter (Aquarius share R327million). On-mine cash margin for the quarter rose to 56%.OperationsPGM production increased by 2% to a record 117,175 PGM ounces for the quarter(Aquarius attributable 58,588 PGM ounces). Plant head grade increased to 2.96g/t PGM from 2.88g/t PGM in the previous quarter. The K1 and the new K2 plantboth performed well, processing a combined record of 1.61 million ROM tons, a1% increase over the previous quarter. 131,000 ROM tons remained on the surfacestockpile at the end of the quarter.An increase in the opencast blend from 8% to 10% during the quarter marginallyreduced recoveries to 77% for the quarter. The blend ratio was required toallow for a build up of an underground stockpile in preparation for theChristmas and New Year holiday season. During the quarter some process upgradeswere completed at the K1 Plant.Cash cost per ROM ton decreased by 2% to R177 compared to the previous quarteras economies of scale from the enlarged operations began to kick-in. Cash costsper PGM ounce also decreased by 2% to R2,429 per PGM ounce (including ledgingand sinking costs). This was achieved in the face of a combination of costs fordevelopment and ledging operations as a result of deepening the P&SA declines(R292 per PGM ounce), and higher costs associated with the increase in opencast blend, notably from deeper open pit tons (opencast mining costs R137 perPGM ounce).Development and equipping of additional underground mining areas continued atthe Central, East, No. 3 and No. 4 decline shafts. This will ensure steadystate production going forward, even though the No. 4 decline will now formpart of the Marikana P&SA2. A substantial total of 2,050 meters of developmentwas completed during the quarter.P&SA1 Project Capital ExpenditureAQPSA's commitments on the P&SA1 expansion project totalled R322 million at theend of the quarter with R306 million paid. The expected final cost to AQPSA ofthe P&SA is estimated at R345 million (escalated) comparing favourably to thecost of R370 million (unescalated) estimated at the time of the P&SAannouncement in June 2003. Future capital expenditure at P&SA1 will be largelyof a sustaining nature to maintain steady-state operations.Kroondal: Metal in concentrate produced (PGM ounces)Quarter ended Pt Pd Rh Au PGMs PGMs attributable to Aquarius Dec 05 69,830 34,332 12,422 591 117,175 58,588 Sept 05 69,129 33,420 12,250 563 115,362 57,681 Jun 05 69,875 33,728 12,499 567 116,669 58,335 Mar 05 41,366 19,971 7,408 306 69,051 34,526Environmental ManagementEnvironmental management at Kroondal focussed on dust suppression on roads andtailings dams. The "floppy-system" of applying dust allaying water to the K1tailings dam has proved to be extremely effective during the quarter and is nowbeing rolled out to the other two tailings dams. In addition, main road dustsuppression trials have returned positive results and are now being rolled out.It is expected that the enhanced systems will also result in a reduction inwater consumption.Marikana Platinum MineSafetyThe (12-month rolling average) DIIR improved to 0.72 from 0.80 in the previousquarter, as a result from a no loss time injuries quarter.Mining * The contract with Moolman Mining South Africa (MMSA) was rescinded on 19th December 2005 on grounds of material misrepresentation by MMSA at time of tender * MCC were appointed in MMSA's stead, commencing operations in January 2006 * Stockpiles at the end of the quarter totalled 54,000 ROM tons * Trial underground mining extended 140 meters down dip of the portals Processing * 319,148 ROM tons were processed during the period * Overall concentrator recoveries for the quarter were 62%, with significant variations in the ratio of oxidised to unoxidised ore processed * 20,789 PGM ounces were produced, a 24% reduction compared to the previous quarter (Aquarius attributable 10,394 PGM ounces) RevenueThe PGM basket price for the quarter increased 16% to $925 per PGM ounce,resulting in mine revenue of R101 million for the quarter. AQPSA's revenue forthe quarter was R70 million, greater than 50% of mine revenues due to pipelinepayment effects. AQPSA's cash margin for the quarter increased to 24% despitecash costs increasing 20% to R5,132 per PGM ounce. The margin figure is alsoenhanced by pipeline effects from the previous quarter.OperationsMine reef tons and PGM production both decreased by 24%, despite almost normalstripping volumes occurring. A total of 10 days of production was lost as aresult of mining contractor MMSA experiencing industrial unrest and therescission of the MMSA contract three days before the end of the quarter.A zone of large boulders was encountered in Pit A which resulted in low diggingrates in this area. The issue was resolved by revising the drilling pattern.Extended depth of weathering in Pits A and SW affected PGM recoveries fromthese ores thereby requiring blending with unoxidised ore and thus affectingoverall plant throughput. This resulted in a ROM stockpile of 54,000 tons ofweathered material containing an estimate recoverable 2,400 PGM ounces.Cash costs for the quarter were negatively impacted as a result of near normalstripping ratios coupled with under delivery of reef. The strip ratio was highat 35:1 for the quarter and coupled with the poor recovery ores, resulted in acash cost of R5,132 per PGM ounce.Expansion capital expenditure of R8.1 million was spent at No. 4 shaft duringthe quarter for infrastructure.Environmental ManagementRehabilitation in mined areas continued, with 1,900,000m‚³ of backfill placedduring the quarter.Marikana: Metal in concentrate produced (PGM ounces)Quarter ended Pt Pd Rh Au PGMs Dec 05 12,887 5,879 1,861 162 20,789 Sept 05 17,244 7,409 2,466 203 27,322 Jun 05 16,893 7,402 2,428 217 26,940 Mar 05 17,230 6,759 2,324 196 26,509Marikana Pool & Share Agreement (P&SA2)The P&SA2 between AQPSA and Anglo Platinum was retrospectively implemented tothe quarter start. Production is anticipated in January 2006 from No. 4 shaft,transferred from Kroondal P&SA. The upgrading of the metallurgical plant atMarikana to a capacity of 250,000 tons per month will commence during the nextquarter. Currently down-dip development on the No. 4 shaft declines as well aslateral development to the West are on schedule.Trial Underground MiningThe portals were successfully established and sinking has progressed to 140meters down-dip. The dip of the Marikana ore body is flatter than initiallyenvisaged which will allow for more conventional bord and pillar mining and isexpected to positively impact on the production ramp-up rates of the P&SA2.All lateral development for ventilation purposes was completed to the east ofthe declines and underground development has progressed to the extent thatmechanical installations will commence in January 2006.Contractor dispute with Moolman MiningOn 19 December 2005, AQPSA rescinded the Marikana Mining contract with MMSA,its principal contractor at Marikana, based on an actionable misrepresentationon the part of MMSA, which induced AQPSA to conclude the mining contract.AQPSA's decision was based on external legal advice from Senior Counsel and aleading forensic auditor. Information obtained from a recent KPMG audit (asrequested by MMSA), gave rise to AQPSA's decision to rescind from the contract.AQPSA will now claim damages against MMSA, estimated to be in the region of R1billion.The operational and financial impact of this action will be of a short-termnature. Following the rescission, operations ceased temporarily on 20thDecember 2005. MCC Mining (a division of the MCC Group and an alreadyestablished contractor at both the Kroondal and Everest Mines) were appointedduring the last few days of December, and were able to assist with orehandling, ensuring that the mills continued to run. Reefing and waste crewswere mobilised and limited operations were established. In the coming weeks,further mobilisation of equipment and production teams is anticipated. Reducedoperations have also afforded the time to upgrade the haul roads in the pits toimprove future operating conditions.Everest Platinum MineSafetyThe (12 month rolling average) DIIR deteriorated to 0.77 from 0.41 for thequarter. Regrettably on 17th October 2005 an assistant pipe fitter sufferedfatal injuries when he fell from a steel structure 8 metres high. Aninvestigation has been completed by the Department of Minerals and Energy;however, the report has not yet been issued. The preliminary indications arethat the assistant pipe fitter was issued and trained in the use of a safetyharness; however, he failed to secure himself.All employees working at height have been retrained.Mining * Opencast operations ahead of schedule with 279,000 tons produced during the period * Underground development continuing, producing 85,000 tons in the period * Stockpiles at the end of the quarter totalled 472,000 tons Processing * Concentrator plant hot commissioned ahead of schedule * 128,757 tons were processed * 7,111 PGM ounces produced * Concentrator plant recoveries were 55% for the period, and in line with expectations during the commissioning period Everest: Metal in concentrate produced (PGM ounces)Quarter ended Pt Pd Rh Au PGMs (4E) Dec-05 4,161 2,351 532 67 7,111 RevenueThe PGM basket price for the quarter was $886 per PGM ounce. Revenue for thequarter was R31 million, which will be capitalised against the project.As a result of the more rapid ramp-up of operations and the prospect ofmaintaining the mine in positive net profit territory from hereon, the minewill convert to operational status from January 2006.OperationsOpencast mining remained ahead of programme, with a total of 279,000 tonsproduced during the quarter. The opencast mining area continues to perform wellin terms of production and costs, providing the bulk of the reef stockpile.Underground mining progressed well during the period, with on-reef declinedevelopment and the first stoping sections being established. Undergroundproduction tonnages were as planned, with 85,000 tons of underground ROM tonsproduced in the quarter. Equipping of the underground mining is on track withconveyor installations, ventilation and mining services completed on schedule.The underground mining is ramping up as planned within budget, and nosignificant geological or mining problems have been experienced.The combined opencast and underground mining have yielded a cumulativestockpile of 472,000 ROM tons.The Everest construction programme finished approximately a month ahead ofschedule with hot commissioning commencing at the end of November 2005. Hotcommissioning proceeded very well with 128,757 tons milled during the Decemberproduction month to produce 7,111 PGM ounces. The plant performed withinexpectations for the commissioning period with a recovery of 55%. Plant feedconsisted predominantly of open cast ore at a head grade of 3.12 g/t PGM.Process plant availability and throughput is encouraging and a steady ramp-upin tonnage throughput is anticipated in the next quarter.Project Capital ExpenditureThe capital expenditure budget is R819 million including a R33 millionallowance for escalation. The project capital expenditure commitments were R622million at the end of the quarter with capital expenditure spent to date ofR413 million.It is anticipated that the project will now incur capital expenditure ofapproximately R707 million as a result of: * Direct project savings identified of R23 million; * Escalation allowance of R33 million not utilised; and * Early project start savings at R56 million as a result of no longer capitalising working costs for the quarter starting January 2006. Mimosa Mine (Aquarius Platinum 50%)SafetyThe (12-month rolling average) DIIR declined marginally from 0.12 to 0.13 forthe quarter, with only one disabling injury recorded. In October, the MimosaMine was awarded a NOSA 5 Star Platinum Rating.OperationsPGM production for the quarter was 35,394 ounces.During the quarter mining operations hoisted a total of 429,000 ROM tonscompared to 433,000 tons in the previous quarter. Tons milled during thequarter amounted to 379,000 tons at an average plant head grade of 3.72g/t PGMcompared to 385,000 tons at 3.76g/t PGM in the previous quarter. While therewas a marginal drop in ROM and PGM production of 1% & 3% respectively comparedto the previous quarter, results were very acceptable.The plant optimisation programme continued during the quarter, focusing on theuse of alternative grinding media and reagents. The objectives of the trialswere to improve metal recovery rates and identify a reliable supplier of thecommodities. Following the trials, appropriate and cost effective reagents andgrinding media have been selected.RevenueThe PGM basket price for the quarter increased by 8% to $662 per PGM ouncecompared with $614 per ounce in the previous quarter. The nickel price fell 11%from $6.92 per pound to $6.13 per pound over the corresponding period. Togetherwith the contribution from base metals (approximately 29% of gross revenue),this generated sales revenue for the quarter of $27.8 million, up $0.2 millionfrom the previous quarter. The gross cash margin rose to 64% from 57% in theprevious quarter.Mimosa: PGMs in concentrate produced (ounces)Quarter ended Pt Pd Rh Au PGMs (4E) PGMs (4E) attributable to Aquarius Dec 05 17,961 13,582 1,390 2,461 35,394 17,697 Sept 05 18,548 13,915 1,407 2,498 36,368 18,184 Jun 05 18,269 13,518 1,406 2,451 35,644 17,822 Mar 05 17,189 12,665 1,343 2,332 33,529 16,765Mimosa: Base Metals in concentrate produced (tons) Mine Production Attributable to Aquarius Quarter ended Ni Cu Co Ni Cu Co Dec 05 488 410 15 244 205 8 Sept 05 512 422 15 256 211 8 Jun 05 514 420 15 257 210 8 Mar 05 491 407 14 245 203 7 Operating costsCash costs per PGM ounce for the quarter of $325 per ounce ($94 per ounce afterby-product credits) were 10% lower than the previous quarter's figure of $361per ounce ($105 per ounce after by-product credits). A relaxation of controlson foreign exchange management in the current quarter through the TradeableForeign Currency Balance System (TFCBS) favourably impacted on the ZimbabweanDollar denominated costs such as labour and power.Wedza Phase IV UpgradeWork on the Wedza Phase IV Upgrade project to take production from 120,000 tonsto 150,000 tons milled per month commenced during the quarter following thegranting of all requisite approvals by government. The project is on track forcommissioning in May 2006, ramping to full production in July 2006.AQUARIUS PLATINUM (SA) CORPORATE SERVICES (PTY) LTDChromite Tailings Retreatment Plant (CTRP) (Aquarius Platinum 50%)SafetyNo lost time injuries have occurred since the start-up of the operation inFebruary 2005.Processing * 60,643 tons processed for the quarter, an increase of 64% on the previous quarter * 1,533 PGM ounces produced, an increase of 12% on the previous quarter OperationsThroughput of current arisings from the Kroondal Chrome Mine and dump materialfrom the Bayer Chrome Mine rose to above planned levels in the course of thequarter. The additional feed rates did, however, have a negative impact onrecoveries which dropped as low as 20% at times. It has been determined thatthe dump material requires further upgrading prior to being fed to the CTRP.The quantity of dump material has since been restricted and will remain sountil further metallurgical work is completed. By December, recoveries on thecurrent arisings had improved to over 40%.Test work at Mintek was commissioned to better understand the metallurgicalcharacteristics of the various feed sources. Preliminary results are providinga strong basis for improved performance in the future but the challenges aremore complex than initially predicted. The project planning for the retrofit ofadditional process equipment is underway and designs will be finalisedfollowing the final results of the Mintek test work.Cash operating costs per ton for the CTRP improved by 19% to R87 per tontreated, however, costs per ounce rose 19% to R3,458 per PGM ounce due to lowerrecoveries achieved.CORPORATE MATTERSAQP DirectorateSubsequent to the end of the quarter, Ms Cathie Markus tendered her resignationfrom the Board of Directors of Aquarius Platinum Limited. The Board wish torecord its appreciation of Ms Markus' contribution towards the growth of theCompany during her tenure as director.AQPSA DirectorateIt is with great sadness that the Board of Directors of Aquarius Platinum SouthAfrica announces the death of Bruce Sutherland on 27 October 2005. Bruce wasinvolved with Aquarius since its inception, formerly as a Director of KroondalPlatinum Mines Limited and subsequently as an AQPSA Director and miningconsultant. He was a force in guiding the management of this young company andhis contributions will be sorely missed.AQPSA is pleased to announce the appointment of Peter Ledger as a Non-ExecutiveDirector and mining consultant to the Board of Aquarius Platinum South Africaas of January 2006. Peter was previously an Executive Director of Lonmin plc,responsible for its South African mining operations, retiring from thisposition in January 2005.Conversion of South African mining and prospecting rights a. Mining Rights The applications for Kroondal and Marikana have been passed on by the regionaloffice of the Department of Minerals and Energy to its Head Office in Pretoria.The Everest conversion is still with the regional office and it is anticipatedthat this should be passed on to Head Office by the end of the coming quarter. b. Prospecting Rights Two new order applications have been granted: Hoogland and Chieftains Plain.Statistical Information: Kroondal P&SA1 Data reflects 100% Current Previous % Change of mine operations Unit Quarter Quarter Quarter Dec 2005 Sept 2005 on Quarter Safety DIIR - 12 Month Rate/200,000 0.96 0.65 48 rolling Average man hours Revenue Gross Revenue R'M 654 573 14 PGM basket Price $/oz 946 813 16 Gross cash margin % 56 50 12 Nickel Price $/lb 5.74 6.60 (13) Copper Price USc/lb 195 170 15 Ave R/$ rate 6.51 6.52 (0) Cash Costs Per ROM ton R/ton 177 181 (2) $/ton 27 28 (2) Per PGM oz R/oz 2,429 2,489 (2) $/oz 373 382 (2) Per PGM oz after R/oz 2,303 2,362 (3) by-product credit $/oz 354 362 (2) Capex Current / Sustaining R'000s 17,003 16,522 3 $'000s 2,612 2,534 3 Expansion R'000s 25,301 32,635 (22) $'000s 3,886 5,005 (22) Mining Processed Underground ROM Ton '000 1,446 1,465 (1) Open Pit ROM Ton '000 160 125 28 Total ROM Ton '000 1,605 1,590 1 Grade Plant Head g/t PGM 2.96 2.88 3 Recoveries % 77 78 (1) PGM Production Platinum Ozs 69,830 69,129 1 Palladium Ozs 34,332 33,420 3 Rhodium Ozs 12,422 12,250 1 Gold Ozs 592 563 5 Total Ozs 117,175 115,362 2 Base Metals Production Nickel Tonnes 112 110 2 Copper Tonnes 50 48 4 Chromite (000) Tonnes (000) 145 113 28 Data reflects 100% Current Previous +/- % YTD of mine operations Unit 6 months to 6 months to Year on 6 months to Dec 05 Dec 04 Year Dec 2005 Safety DIIR - 12 Month Rate/200,000 0.96 0.66 45 0.96 rolling Average man hours Revenue Gross Revenue R'M 1,227 521 136 1,227 PGM basket Price $/oz 879 686 28 879 Gross cash margin % 53 38 39 53 Nickel Price $/lb 6.17 6.37 (3) 6.17 Copper Price USc/lb 183 135.00 35 183 Ave R/$ rate 6.52 6.23 5 6.52 Cash Costs Per ROM ton R/ton 179 185 (3) 179 $/ton 27 30 (8) 27 Per PGM oz R/oz 2,458 2,323 6 2,458 $/oz 377 373 1 377 Per PGM oz after R/oz 2,331 2,231 4 2,331 by-product credit $/oz 358 357 0 358 Capex Current / R'000s 33,525 1497 2,139 33,525 Sustaining $'000s 5,145 236 2,080 5,145 Expansion R'000s 57,936 313,347 - 57,936 $'000s 8,891 50,593 - 8,891 Mining Processed Underground ROM Ton '000 2,911 1,595 82 2,911 Open Pit ROM Ton '000 285 151 89 285 Total ROM Ton '000 3,195 1,746 83 3,195 Grade Plant Head g/t PGM 2.92 3.09 (6) 2.92 Recoveries % 78 80 (3) 78 PGM Production Platinum Ozs 138,959 83,048 67 138,959 Palladium Ozs 67,752 40,286 68 67,752 Rhodium Ozs 24,672 15,008 64 24,672 Gold Ozs 1,155 667 73 1,155 Total Ozs 232,537 139,009 67 232,537 Base Metals - Production Nickel Tonnes 222 130 71 222 Copper Tonnes 98 57 72 98 Chromite (000) Tonnes (000) 258 119 117 258 Statistical Information: Marikana P&SA2Data reflects 100% of Current Previous % mine operations Change Unit Quarter Quarter Quarter Dec 2005 Sept on 2005 Quarter Safety DIIR - 12 Month Rate/ 0.72 0.80 (10) rolling Average 200,000 man hours Revenue Gross Revenue (see R'M 70 127 (45) note i) PGM basket Price $/oz 925 800 16 Gross cash margin (see % 24 8 200 note ii) Nickel Price $/lb 5.74 6.60 (13) Copper Price USc/lb 195 170 15 Ave R/$ rate 6.51 6.52 (0) Cash Costs Per ROM ton R/ton 334 280 19 $/ton 51 43 (5) Per PGM oz R/oz 5,132 4,268 20 $/oz 788 655 20 Per PGM ounce after by R/oz 4,879 4,051 20 product credit $/oz 749 621 21 Capital expenditure Current / Sustaining R'000s 3,312 3,434 (4) $'000s 509 527 (3) Expansion R'000s 8,147 - $'000s 1,251 - Processed Underground ROM Ton 28 8 250 '000 Open Pit ROM Ton 291 409 (29) '000 Total ROM Ton 319 417 (24) '000 Grade Plant Head g/t PGM 3.24 3.26 (1) Recoveries % 62 62 - PGM Production Platinum Ozs 12,887 17,244 (25) Palladium Ozs 5,879 7,409 (21) Rhodium Ozs 1,861 2,466 (25) Gold Ozs 162 203 (20) Total Ozs 20,789 27,322 (24) Base Metals Production Nickel Tonnes 32 40 (20) Copper Tonnes 17 24 (29) Chromite (000) Tonnes 44 60 (27) (000) (I) The revenue amount reflects AQPSA share which includes the roll over of 10% of the sales adjustments for the previous Quarter (II) Based on AQPSA Share of the revenue Data reflects Current Previous +/- % YTD 100% of mine operations Unit 6 months 6 Year on 6 months to Dec months Year to Dec 05 to Dec 2005 04 Safety DIIR - 12 Rate/ 0.76 0.75 1 0.76 Month rolling 200,000 Average man hours Revenue Gross Revenue R'M 197 165 19 197 (see note i) PGM basket $/oz 863 688 25 863 Price Gross cash % 14 (30.0) 147 14 margin (see note ii) Nickel Price $/lb 6.17 6.36 (3) 6.17 Copper Price USc/lb 183 135 35 183 Ave R/$ rate 6.52 6.23 5 6.52 Cash Costs Per ROM ton R/ton 303 281 8 303 $/ton 47 45 3 47 Per PGM oz R/oz 4,642 4,699 (1) 4,642 $/oz 712 755 (6) 712 Per PGM ounce R/oz 4,403 4,588 (4) 4,403 after by product credit $/oz 676 737 (8) 676 Capital - expenditure Current / R'000s 6,746 7,148 (6) 6,746 Sustaining $'000s 1,035 1,148 (10) 1,035 Expansion R'000s 8,147 - 8,147.00 $'000s 1,250 - 1,250.20 Processed Underground ROM Ton 36 - 36 '000 Open Pit ROM Ton 700 764 (8) 700 '000 Total ROM Ton 736 764 (4) 736 '000 Grade Plant Head g/t PGM 3.25 3.75 (13) 3.25 Recoveries % 62 50 24 62 PGM Production Platinum Ozs 30,131 29,745 1 30,131 Palladium Ozs 13,288 12,253 8 13,288 Rhodium Ozs 4,327 3,309 31 4,327 Gold Ozs 365 406 (10) 365 Total Ozs 48,111 45,713 5 48,111 Base Metals Production Nickel Tonnes 72 49 47 72 Copper Tonnes 41 26 57 41 Chromite (000) Tonnes 104 124 - 104 (000) (I) The revenue amount reflects AQPSA share which includes the roll over of 10% of the sales adjustments for the previous Quarter (II) Based on AQPSA Share of the revenue Notes :(i) The revenue amount reflects AQPSA 50% share for the quarter ANDadditionally includes the sales adjustments for the previous quarter prior to P&SA2 implementation. Any comparison with the prior quarter's information is notmeaningful.(ii) Margin is based on AQPSA's revenues per note (i) and any comparison withthe prior quarter's information is not meaningful.Statistical Information: Everest Data reflects 100% of Current Previous % Change mine operations Unit Quarter Quarter Quarter Dec 2005 Sept on 2005 Quarter Safety DIIR - 12 Month rolling Rate/ 0.77 0.41 88 Average 200,000 man hours Revenue Gross Revenue R'M 31 - - PGM basket Price $/oz 886 - Gross cash margin % 28 - Nickel Price $/lb 6.09 - Copper Price USc/lb 208 - Ave R/$ rate 6.35 - Cash Costs Per ROM ton R/ton 168 - $/ton 27 - Per PGM oz R/oz 3,136 - $/oz 494 - Per PGM ounce after by R/oz 2,981 - product credit $/oz 470 - Capital expenditure Current / Sustaining R'000s - - - $'000s - - - Expansion R'000s 203,272 145,917 39 $'000s 32,047 22,979 39 Mining Processed Underground ROM Ton 39 '000 Open Pit ROM Ton 89 - '000 Total ROM Ton 129 - '000 Grade Plant Head g/t PGM 3.12 - Recoveries % 55 - PGM Production Platinum Ozs 4,161 - Palladium Ozs 2,351 - Rhodium Ozs 532 - Gold Ozs 67 - Total Ozs 7,111 - Base Metals Production Nickel Tonnes 13 - Copper Tonnes 5 - Chromite (000) Tonnes - - (000) Data reflects 100% of Current Previous +/- % YTD mine operations Unit 6 months 6 months Year on 6 months to Dec 05 to Dec Year to Dec 04 2005 Safety DIIR - 12 Month rolling Rate/ 1.18 - - 1.18 Average 200,000 man hours Revenue Gross Revenue R'M 31 - - 31 PGM basket Price $/oz 886 - - 886 Gross cash margin % 28 - - 28 Nickel Price $/lb 6.09 - - 6.09 Copper Price USc/lb 208 - - 208 Ave R/$ rate 6.35 - - 6.35 Cash Costs Per ROM ton R/ton 168 - - 168 $/ton 27 - - 27 Per PGM oz R/oz 3,136 - - 3,136 $/oz 494 - - 494 Per PGM ounce after by R/oz 2,981 - - 2,981 product credit $/oz 470 - - 470 Capital expenditure - Current / Sustaining R'000s - - - - $'000s - - - - Expansion R'000s 349,189 24,212 349,189.00 $'000s 55,026 3,814 55,026.00 Mining Processed Underground ROM Ton 39 39 '000 Open Pit ROM Ton 89 - 89 '000 Total ROM Ton 129 - 129 '000 Grade Plant Head g/t PGM 3.12 - 3.12 Recoveries % 55 - 55 PGM Production Platinum Ozs 4,161 - 4,161 Palladium Ozs 2,351 - 2,351 Rhodium Ozs 532 - 532 Gold Ozs 67 - 67 Total Ozs 7,111 - 7,111 Base Metals Production Nickel Tonnes 13 - 13 Copper Tonnes 5 - 5 Chromite (000) Tonnes - - - (000) Statistical Information: MimosaData reflects 100% of Current Previous % Change mine operations Unit Quarter Quarter Quarter Dec 2005 Sept on 2005 Quarter Safety DIIR - 12 Month Rate/ 0.13 0.12 8 rolling Average 200,000 man hours Revenue Gross Revenue US$M 27.80 27.60 1 PGM basket Price $/oz 662 614 8 Gross cash margin % 64 57 12 Nickel Price $/lb 6.13 6.92 (11) Copper Price USc/lb 171 150 14 Cash Costs Per ROM ton $/ton 30 34 (12) Per PGM oz $/oz 325 361 (10) Per PGM oz after $/oz 94 106 (11) by-product credit Capital expenditure Current $'000s 1,895 2,432 (22) Expansion $'000s 3,581 - - Mining Underground ROM Ton 429 433 (1) '000 Grade Plant Head g/t PGM 3.72 3.76 (1) Recoveries % 78 78 - PGM Production Platinum Ozs 17,961 18,548 (3) Palladium Ozs 13,582 13,915 (2) Rhodium Ozs 1,390 1,407 (1) Gold Ozs 2,461 2,498 (1) Total Ozs 35,394 36,368 (3) Base Metals Production Nickel Tonnes 488 512 (5) Copper Tonnes 410 422 (3) Cobalt Tonnes 15 15 - Data reflects 100% Current Previous +/- % YTD of mine operations Unit 6 months 6 months to Year on 6 months to Dec 05 Dec 04 Year to Dec 2005 Safety DIIR - 12 Month Rate/ 0.12 0.4 (70) 0.12 rolling Average 200,000 man hours Revenue - Gross Revenue US$M 55.40 40.1 38 55.40 PGM basket Price $/oz 637 580 10 637 Gross cash margin % 61 62 (2) 61 Nickel Price $/lb 6.53 6.11 7 6.53 Copper Price USc/lb 160 108 48 160 Cash Costs Per ROM ton $/ton 32 29 10 32 Per PGM oz $/oz 343 319 8 343 Per PGM oz after $/oz 100 105 (5) 100 by-product credit Capital expenditure Current $'000s 4,327 9154 (53) 4,327 Expansion $'000s 3,581 656 446 3,581 Mining Underground ROM Ton 862 656 31 862 '000 Grade Plant Head g/t PGM 3.74 3.66 2 3.74 Recoveries % 78 77 1 78 PGM Production Platinum Ozs 36,509 31284 17 36,509 Palladium Ozs 27,497 23076 19 27,497 Rhodium Ozs 2,797 2408 16 2,797 Gold Ozs 4,959 4226 17 4,959 Total Ozs 71,762 60,994 18 71,762 Base Metals Production Nickel Tonnes 1,000 891 12 1,000 Copper Tonnes 832 736 13 832 Cobalt Tonnes 30 26 15 30 Statistical Information: Chrome Tailings Retreatment PlantNote: this operation commenced production of concentrate in late January 2005Data reflects 100% of mine Current Previous % Change operations Unit Quarter Quarter Quarter Dec 2005 Sept on 2005 Quarter Safety DIIR - 12 Month rolling Rate/ - - - Average 200,000 man hours Revenue Gross Revenue R'M 9 7 29 PGM basket Price $/oz 1,099 940 17 Gross cash margin % 43 45 (4) Nickel Price $/lb 5.74 6.60 (13) Copper Price USc/lb 195 170 15 Ave R/$ rate 6.51 6.52 1 Cash Costs Per ROM ton R/ton 87 107 (19) $/ton 13 16 (19) Per PGM oz R/oz 3,441 2,901 19 $/oz 529 448 18 Per PGM ounce after by $/oz - - - product credit Capital expenditure Current / Sustaining R'000s - - - $'000s - - - Expansion R'000s - 378 - $'000s - 58 (100) Feed Processed Feed Processed ROM Ton 60.6 37 64 '000 Grade Plant Head g/t PGM 2.98 2.91 2 Recoveries % 27 40 (31) PGM Production Platinum Ozs 937 864 8 Palladium Ozs 350 282 24 Rhodium Ozs 243 215 13 Gold Ozs 3 3 (1) Total Ozs 1,533 1,364 12 Data reflects 100% of Current Previous +/- % YTD mine operations Unit 6 months to 6 months Year on 6 months Dec 05 to Dec 04 Year to Dec 2005 Safety DIIR - 12 Month rolling Rate/ - - - - Average 200,000 man hours Revenue Gross Revenue R'M 17 - - 16.5 PGM basket Price $/oz 1,024 - - 1,024 Gross cash margin % 44 - - 44 Nickel Price $/lb 6.17 - - 6.17 Copper Price USc/lb 183 0 0 183 Ave R/$ rate 6.52 - - 6.52 Cash Costs Per ROM ton R/ton 95 - - 95 $/ton 15 - - 15 Per PGM oz R/oz 3,187 - - 3,187 $/oz 489 - - 489 Per PGM ounce after by $/oz - - - - product credit Capital expenditure - Current / Sustaining R'000s - - - - $'000s - - - - Expansion R'000s 378 - - 378 $'000s 58 - - 58 Feed Processed Feed Processed ROM Ton 98 - - 98 '000 Grade Plant Head g/t PGM 2.95 - - 2.95 Recoveries % 33 - - 33 PGM Production Platinum Ozs 1,801 - - 1,801 Palladium Ozs 632 - - 632 Rhodium Ozs 458 - - 458 Gold Ozs 6 - - 6 Total Ozs 2,897 - - 2,897 Aquarius Platinum LimitedIncorporated in BermudaExempt company number 26290Board of DirectorsNicholas Sibley Non-executive Chairman Stuart Murray Chief Executive Officer David Dix Non-executive Edward Haslam Non-executive Sir William Purves Non-executive Patrick Quirk Non-executive Zwelakhe Sisulu Non-executive Audit/Risk CommitteeSir William Purves (Chairman)David DixEdward HaslamNicholas SibleyRemuneration/Succession Planning CommitteeEdward Haslam (Chairman)Nicholas SibleyNomination CommitteeThe full Board comprises the Nomination CommitteeCompany SecretaryWilli BoehmIssued CapitalAt 31 December 2005, the Company had on issue:82,864,892 fully paid common shares3,746,402 unlisted optionsSubstantial Shareholders 31 December 2005 Number of Shares Percentage Impala Platinum Holdings Ltd 7,141,966 8.6 National Nominees Limited 5,788,271 7.0 J P Morgan Nominees Australia Limited 4,750,117 5.7 ANZ Nominees Limited 4,343,794 5.2 Broker (LSE)Williams de Broƒ«6 BroadgateLondon EC2M 2RPTelephone: +44 (0)20 7588 7511Facsimile: +44 (0)20 7588 8860Broker (ASX)Euroz SecuritiesLevel 14, The Quadrant1 William StreetPerth WA 6000Telephone: +61 (0)8 9488 1400Facsimile: +61 (0)8 9488 1478Sponsor (JSE)Investec Bank Limited100 Grayston DriveSandown Sandton 2196Telephone: +27 (0)11 286 7326Facsimile: +27 (0)11 291 1066Aquarius Platinum (South Africa) Aquarius Platinum Corporate Services (Proprietary) Ltd. Pty Ltd 50.5% Owned 100% Owned (Incorporated in the Republic of South (Incorporated in Australia) Africa) ACN 094 425 555 Registration Number 2000/000341/07 Level 4, Suite 5, South Shore Centre,Block A, 1st Floor, The Great Wall Group Building 85 The Esplanade, South Perth, WA 6151, 5 Skeen Boulevard, Bedfordview Australia South Africa 2007 PO Box 485 P O Box 1282 South Perth, WA 6151, Australia Bedfordview South Africa 2009 Telephone: +61 (0)8 9367 5211 Telephone: +27 (0)11 455 2050 Facsimile: +61 (0)8 9367 5233 Facsimile: +27 (0)11 455 2095 Email: [email protected] Email: [email protected] AQPSA Management Stuart Murray - Executive Chairman Gert Ackerman - Managing Director Ayanda Khumalo - Finance Director Neil Collett - General Manager Business Development Graham Ferreira - General Manager Finance & Company Secretary Hugo Hƒ¶ll - General Manager Everest Robert Mallinson - General Manager Marikana Gordon Ramsay - General Manager Projects Dave Starley - General Manager Kroondal Gabriel de Wet - General Manager Engineering Mimosa Mine Management Alex Mhembere - Managing Director Winston Chitando - Finance Director Herbert Mashanyare - Technical Director Peter Chimboza - Operations Director 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 CTRP Chromite Ore Tailings Retreatment Operation DIFR Disabling Injury Incidence Rate - being the number of lost time injuries expressed as a rate per 1,000,000 man-hours worked DIIR Disabling Injury Incidence Rate - being the number of lost time injuries expressed as a rate per 200,000 man-hours worked EMPR Environmental Management Programme Report Everest Everest Platinum Mine Great 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 LHD Load Haul Dump machine Marikana Marikana Platinum Mine Mimosa Mimosa Mining Company (Private) Limited 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, Pd and Rh being the most economic platinoids in the UG2 Reef. P&SA1 Pooling & Sharing Agreement between AQPSA and RPM Ltd on Kroondal P&SA2 Pooling & Sharing Agreement between AQPSA and RPM Ltd on Marikana R South African Rand RK1 Consortium comprising Aquarius Platinum (SA) (Corporate Services) (Pty) Limited (ASACS), GB Mining and Exploration (SA) (Pty) Limited (GB) and Sylvania South Africa (Pty) Ltd (SLVSA). ROM Run of Mine. The ore from mining which is fed to the concentrator plant. This is usually a mixture of UG2 ore and waste. RPM Rustenburg Platinum Mines Limited TKO TKO Investment Holdings Limited Ton 1 Metric tonne (1 000kg) UG2 Reef A PGE bearing chromite layer within the Critical Zone of the Bushveld Complex $ United States Dollars Z$ Zimbabwe Dollar For further information please contact:In Australia: Willi Boehm Aquarius Platinum Corporate Services Pty Ltd +61 (0)8 9367 5211 In United Kingdom: Nick Bias BuckBias Limited + 44 (0)7887 920 530 Alex Buck BuckBias Limited +44 (0)7392 740 452 In South Africa: Stuart Murray Aquarius Platinum (South Platinum) (Pty) Ltd +27 (0)11 455 2050 Charmane Russell Russell & Associates +27 (0)11 880 3924 or visit: www.aquariusplatinum.com ENDAQUARIUS PLATINUM LIMITEDRelated Shares:
AQP.L