Aquarius Platinum Limited 1Q 2014 results (South Africa)

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Aquarius Platinum Limited 1Q 2014 results (South Africa)

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Aquarius Platinum Limited 1Q 2014 results (South Africa)

  1. 1. First Quarter 2014: Financial and Production Results Aquarius Platinum Limited Financial and Production Results to 30 September 2013 Highlights  EBITDA of $6.3 million up from $1.6 million in the previous corresponding period (pcp) September 2012, but down $4 million quarter-on-quarter due to higher costs and lower recoveries at Kroondal  Net loss after tax reduced to $10.2 million from $19.6 million in the pcp  Attributable production increased by 9% to 84,504 4E ounces compared to the pcp and remains consistent quarter-onquarter - 2.6% lower  Continued consistent production performance at Kroondal reinforces the benefits of transferring to owner operator and the successful implementation of the revised hanging wall system  Average PGM basket price decreased 3% for the quarter in Dollar terms but increased 5% in Rand terms due to Rand weakness  Cash costs at Kroondal decreased 1% per PGM ounce compared to pcp but increased 17% to R9,094 per PGM ounce quarter-on-quarter of which 6% relates to a one off adjustment of leave provisions in the previous quarter, 3% to higher winter electricity tariffs and 4% to the annual wage increase  Cash costs at Mimosa increased 1% per PGM ounce compared to the pcp but decreased 4% to $838 per PGM ounce quarter-on-quarter Q1 2014 Operating Results Summary Kroondal Mimosa Platinum Mile Total (100% basis) 106,441 55,110 3,729 Attributable 53,220 27,555 3,729 4E PGM production 4E basket price R/oz 11,818 $/oz 1,183 1,133 1,173 R/oz 9,094 - 6,934 $/oz 910 838 694 12 17 23 R/oz 736 - 0 $/oz 74 107 0 11,718 Cash costs (4E basis) Cash margin (%) Stay-in-business capex Commenting on the results, Jean Nel, CEO Aquarius Platinum said: The quarter in question was yet another challenging quarter on all fronts. Despite the challenges we faced, all operations delivered improved safety performances, and all operations delivered production results in line or above forecast. Notably, Kroondal exceeded forecast production levels, delivering in excess of 100,000 4E ounces for the fourth consecutive quarter, despite both concentrator plants undergoing planned maintenance during the quarter and despite the mine encountering geological and consequential recovery problems throughout the quarter. Cost performance at Mimosa and Plat Mile was in line and below forecast respectively, while costs at Kroondal were higher driven by the implementation of the wage increase in July, winter electricity tariffs, which will reverse in Q2, as well as lower concentrator plant recoveries. www.aquariusplatinum.com Page 1 of 24
  2. 2. First Quarter 2014: Financial and Production Results The credible operational performance for the quarter, and the significant reduction in the company’s corporate cost base notwithstanding, our business remains marginal at prevailing metal prices, where no improvement appears imminent. Against this backdrop management will remain resolute in its focus on improved safety, cost and operational performance. Tragically, post quarter end an employee, Cintiah Setuke, lost her life at Kroondal in what appears from the preliminary investigations to be a criminal act. Kroondal security personnel apprehended a suspect and handed him over the SAPS and he remains in custody. I join my colleagues in expressing condolences to her family and friends and Aquarius reiterates that it renounces all acts of violence. Sadly the incident took place despite an improved safety performance at Kroondal and after the successful launch of Kroondal’s safety campaign, Step-it-Up. Kroondal continues to render its full support to the Department of Mineral Resources and the South African Police Services in the course of its investigation. www.aquariusplatinum.com Page 2 of 24
  3. 3. First Quarter 2014: Financial and Production Results Production by mine Quarter ended PGMs (4E) Sept 2013 Jun 2013 % Change Kroondal 106,441 106,872 Mimosa 55,110 57,168 (4) 3,729 4,825 (23) 165,280 168,865 (2) Platinum Mile Total Sept 2012 % Change 92,073 16 56,341 2 3,270 14 151,684 9 Production by mine attributable to Aquarius (Operating mines) PGMs (4E) Quarter ended Sept 2013 June 2013 % Change 46,036 28,584 28,171 2 4,825 (23) 3,270 14 86,845 (3) 77,477 9 53,220 53,436 Mimosa 27,555 3,729 84,504 Total Sept 2012 (4) Kroondal Platinum Mile % Change 16 Aquarius Group quarterly attributable production (PGM ounces) to 30 September 2013 www.aquariusplatinum.com Page 3 of 24
  4. 4. First Quarter 2014: Financial and Production Results Market Summary It was another very volatile quarter for the PGM Rand Basket, with prices rising from R11,000 per PGM oz to new all-time highs of R13,500 per PGM oz, only to fall back to R12,000 per PGM oz by the end of September. The moves in the US$ platinum price remain dictated by moves in the gold price, which in spite of the US Federal Reserve not tapering its quantitative easing programme and the prospect of a US default, resumed its downward trend at the beginning of September. The debt ceiling debate may have agitated the US Federal Reserve enough to continue with its quantitative easing programme in the short term. The Rand exchange rate has for the most part traded around the R10/US$ level, with significant strengthening as a result of the US Federal Reserve not tapering its quantitative easing programme, only to weaken shortly after on the concerns of strike action. The platinum ETF buying continued at a strong pace with total global holdings up nearly 60% YTD. The ETF purchases are absorbing excess supply but are raising longer term concerns on potential future outflows. Optimism is growing in the European car market with registrations up 5% year-on-year, although commentators do not expect any material growth for two years. Strong Chinese auto sales surged 21% in September beating analysts’ expectations and maintaining support for palladium demand. The average platinum price decreased by 1%, while palladium increased by 1.3% and rhodium fell by 11% quarter on quarter. Gold fell by 6.3% on average. Platinum closed the quarter up 2.1% at $1,408 per ounce, while palladium rose by 6% to $726 per ounce and rhodium fell by 1% to $990 per ounce over the same period. Gold rose 5.6% to $1,327 per ounce. Rand-Dollar exchange rate The average Rand-Dollar exchange rate weakened during the quarter, falling by 6% from R9.41 to R9.99 to the Dollar. Since then, it has traded in a narrow range to average R9.97 in the first two weeks of October. The average Rand basket price for the quarter improved by 5% quarter-on-quarter, but since quarter end the spot price has deteriorated by 4%. The Dollar weighted average group basket price deteriorated by 3% to $1,168 per 4E ounce compared to the previous quarter. The average South African basket price at AQPSA’s operations was R11,824 per PGM ounce for the period. Subsequent to the end of the quarter, the PGM basket price consolidated to average R11,359 per PGM ounce for the first two weeks of October, recording a low of R11,202 during October. 12-month individual PGM prices to 30 Sept 2013 (US$/oz) www.aquariusplatinum.com 12-month PGM basket prices to 30 Sept 2013 (US$ and ZAR per PGM basket ounce) Page 4 of 24
  5. 5. First Quarter 2014: Financial and Production Results 12-month ZAR price to 30 Sept 2013 (ZAR/US$) Average PGM basket prices achieved at Aquarius operations US$ per PGM ounce (4E) Quarter ended Sept 2013 Jun 2013 % Change Kroondal 1,183 1,195 (1) 1,195 (1) Mimosa 1,133 1,217 (7) 1,148 (1) Platinum Mile 1,173 1,169 0 1,272 (8) Weighted Avg. 1,168 1,201 (3) 1,182 (1) www.aquariusplatinum.com Sept 2012 % Change Page 5 of 24
  6. 6. First Quarter 2014: Financial and Production Results Financials Direct comparisons with prior periods are not possible given the introduction of the International Financial Reporting Standard 11 (IFRS11) governing the accounting for jointly controlled investments. Aquarius has commenced accounting for its investments in Mimosa and Blue Ridge as joint ventures and accordingly is required to apply the equity accounting method from 1 July 2013. The equity method recognises the Group’s share of net assets and contribution to profit and loss as single line items in the statement of financial position and statement of comprehensive income. This differs from the previous approach which included each line item such as revenue, cost of sales, expenses etc as part of the consolidated results. This change has not resulted in a change to the net assets of the Group. Whilst Aquarius’ after tax result remains identical under both reporting formats, it is important to note that Aquarius’ reported cash position from July 2013 only reflects cash from Aquarius' joint operations (Kroondal) and no longer includes cash held in joint ventures such as Mimosa and Blue Ridge. Aquarius’ net investment in Mimosa and Blue Ridge is disclosed in the balance sheet as “Investments in joint venture entities.” Results for comparative periods below have been restated to account for the change in accounting policy. Aquarius recorded an on-mine EBITDA profit of $6.3 million for the quarter ended 30 September 2013. This represents an increase in EBITDA of $4.7 million, a 3 fold increase compared to the previous corresponding quarter, September 2012 (pcp). The increased result was due to a 15% increase in production at Kroondal compared to the pcp during which time Kroondal was undergoing a transformation to an owner operated mine and was also implementing a revised hanging wall support system. The successful implementation of both initiatives is clearly visible in Kroondal's production record since September 2012. This is the fourth consecutive quarter that the Kroondal mine has produced in excess of 100,000 PGM ounces. EBITDA, Profit and Production Comparison: Quarter ended Sept 2013 Sept 2012 Movement EBITDA $6.3M $1.6M $4.7M Revenue $59.7M $58.0M $1.7M Share of (loss)/profit from joint venture entities (note a) ($1.3M) $0.3M ($1.6M) ($10.2M) ($19.6M) $9.4M $5.3M $5.9M ($0.6M) ($6.6M) ($5.6M) ($1.0M) ($1.3M) $0.3M ($1.6M) Aquarius Group - Net loss after tax note a: Share of profit/(loss) from joint venture entities consists of: EBITDA Other expenses Net (loss)/profit after tax contribution to Aquarius Group www.aquariusplatinum.com Page 6 of 24
  7. 7. First Quarter 2014: Financial and Production Results Revenue (PGM sales plus interest income of $1.3 million) was up marginally at $60 million compared to $58 million in the pcp. The increased revenue, achieved despite the lower PGM basket price, was driven by Kroondal's 16% increase in production. Revenue from Mimosa which is included in "share of profit/(loss) from jointly controlled entities" was lower due to a $5.3 million negative sales adjustment incurred during the quarter. Quarter ended Kroondal & Platinum Mile Sep 2013 $59.4M Jun 2013 $61.3M Mar 2013 $64.0M Dec 2012 $58.5M Sep 2012 $53.7M $0.3M ($5.4M) $1.6M ($0.8M) $4.2M $59.7M $55.9M $65.6M $57.7M $57.9M Revenue $33.5M $39.5M $35.3M $35.3M $35.0M PGM sales adjustments ($5.3M) ($4.5M) ($0.4M) ($1.2M) ($5.6M) Total revenue $28.2M $35.0M $34.9M $34.1M $29.4M Revenue PGM sales adjustments Total revenue Mimosa (joint venture entity) Production for the quarter increased 9% to 84,504 PGM ounces compared to the pcp with the majority of the increased production coming from Kroondal. Production at joint venture entity Mimosa remained consistent. Production comparisons Quarter ended Sep 2013 56,949 Jun 2013 58,261 Mar 2013 55,665 Dec 2012 52,612 Sep 2012 49,306 PGM production – Mimosa 27,555 28,584 25,805 26,377 28,171 Total attributable production (PGM oz) 84,504 86,845 81,470 78,989 77,477 PGM production – Kroondal & Platmile Average PGM basket price per ounce achieved Kroondal & Platinum Mile R11,815 R11,225 R11,674 R10,903 R9,924 Kroondal & Platinum Mile $1,183 $1,193 $1,316 $1,261 $1,199 Mimosa $1,133 $1,217 $1,247 $1,213 $1,148 Total cash cost of production of $53 million was marginally lower compared to the pcp (despite a 15% increase in production) due to a 21% weakening in the Rand/Dollar exchange rate. In Rand terms, total cash costs were 17% higher compared to the pcp in line with increased production. On a per unit cash cost basis, Kroondal's cash costs per ounce in Rand terms increased 1% compared to the pcp but decreased by 16% in Dollar terms due to the weaker Rand. Compared to the previous quarter ended June 2013, cash costs at Kroondal increased by 17% per PGM ounce in Rand terms. This increase was driven by a reversal of leave pay provision (6%), higher winter electricity tariffs (3%), implementation of the annual wage increase at Kroondal (4%) and lower recoveries caused by geological complexities at Kwezi shaft mining through a sheer zone at Bambanani (2%). In Dollar terms, Kroondal's cash costs were 11% higher compared to the last quarter ended June 2013. www.aquariusplatinum.com Page 7 of 24
  8. 8. First Quarter 2014: Financial and Production Results Mimosa’s cash costs per PGM ounce increased 1% compared to the pcp but decreased 4% compared to the last quarter ended June 2013. Amortisation and depreciation were marginally higher at $9.7 million compared to the pcp in line with increased production. Administrative costs of $1.7 million were lower compared to the pcp in line with the cost reduction initiatives taken by the Aquarius Group. Finance costs for the quarter included interest paid on borrowings of $3.0 million, non-cash interest accretion on convertible bonds of $2.5 million and unwinding of the rehabilitation provision of $1.0 million. Net operating cash inflow for the quarter of $1 million comprised $60 million inflow from sales, $60 million paid to suppliers and $1 million interest received. Development and capital expenditure for the quarter was $4 million. Net financing cash inflows of $14 million included dividends of $18 million from Mimosa, $3 million interest paid and $1 million repayment of AQPSA lease liabilities. The Group’s cash balance was $91 million at the end of the quarter, held as follows: AQP AQPSA ACS(SA) Platmile Ridge Mining $62 million $22 million $2 million $4 million $1 million Total $91 million (note a) note a Mimosa and Blue Ridge (which Aquarius has a 50% equity interest in) are now accounted for using the equity method. Cash held in these two entities at 30 September 2013 was $14 million and does not form part of the above cash balances. Under the previous method of proportionately consolidating its investment in Mimosa and Blue Ridge, 50% of this cash would have been included in Aquarius' Group cash balance. www.aquariusplatinum.com Page 8 of 24
  9. 9. First Quarter 2014: Financial and Production Results Aquarius Platinum Limited Consolidated Income Statement Quarter ended 30 September 2013 $’000 Quarter Ended Note Quarter Ended Financial Year Ended 30/09/13* 30/09/12* 30/06/13 PGM production – Kroondal & Platmile 56,949 49,306 216,167 PGM production – Mimosa 27,555 28,171 108,936 Total PGM production 84,504 77,477 325,103 Revenue (i) 59,660 57,975 237,115 Cost of sales (including D&A) (ii) (62,519) (63,540) (248,308) (2,859) (5,565) (11,193) 11 68 278 Gross loss Other income Administrative costs (iii) (1,661) (2,768) (12,786) Foreign exchange gain/(loss) (iv) 1,967 2,744 (19,322) Finance costs (v) (6,828) (6,304) (24,365) - - (214,111) Impairment losses Closure, transition and rehabilitation costs (vi) (12) (14,621) (54,538) Share of (loss)/profit from joint venture entities (vii) (1,304) 261 (5,003) (10,686) (26,185) (341,040) 489 6,577 53,127 (10,197) (19,608) (287,913) (10,228) (19,628) (287,207) 31 20 (706) (10,197) (19,608) (287,913) (2.17) (4.17) (61.13) Loss before income tax Income tax benefit (viii) Net loss Net loss is attributable to: Equity holders of Aquarius Platinum Limited Non-controlling interests (ix) Earnings per share Basic loss per share (cents per share) * Unaudited www.aquariusplatinum.com Page 9 of 24
  10. 10. First Quarter 2014: Financial and Production Results Notes on the September 2013 Consolidated Income Statement (i) The marginal increase in revenue despite a 15% increase in production reflects continued low Dollar PGM prices and the impact of a 21% depreciation of the Rand compared to the pcp. (ii) Lower aggregate costs in Dollar terms were recorded for cost of sales including D&A despite a 15% increase in production due to a 21% depreciation of the Rand compared to the pcp. In Rand terms aggregate costs would have increased by 19%. (iii) Administration and other costs of $1.7 million are lower and in line with recent cost reduction initiatives. (iv) The forex gain of $2 million is attributable to revaluation adjustments on cash balances held in Rands, Australian Dollars and Pound Stirling, and the revaluation of pipeline debtors in line with movements in the Rand against the US Dollar. (v) Finance costs include interest paid on borrowings of $3 million, non-cash interest accretion on convertible bonds of $2.5 million and the unwinding of the rehabilitation provision of $1 million. (vi) Closure and transition costs reflect closure costs incurred on the closure of Everest and Marikana and the transition to owner-operator costs incurred at Kroondal. (vii) Represents share of profit of Mimosa and Blue Ridge, the joint venture entities. Mimosa's contribution was adversely impacted by a negative sales adjustment of $5.3 million. (viii) Income tax benefit consists of AQPSA deferred tax credits. (ix) Non-controlling interests reflect the 8.3% non-controlling interest of Platinum Mile Resources (Pty) Ltd. www.aquariusplatinum.com Page 10 of 24
  11. 11. First Quarter 2014: Financial and Production Results Aquarius Platinum Limited Consolidated Statement of Cash Flows Quarter ended 30 September 2013 $’000 Quarter Ended Note Quarter Ended Financial Year Ended 30/09/13* 30/09/12* 30/06/13 Net operating cash inflow/(outflow) (i) 729 (50,292) (21,448) Net investing cash outflow (ii) (4,352) (9,152) (20,629) Net financing cash inflow/(outflow) (iii) 13,902 (4,318) (34,364) Net increase/(decrease) in cash held 10,279 (63,762) (76,441) Opening cash balance 77,773 166,652 166,652 2,845 4,422 (12,438) 90,897 107,312 77,773 Exchange rate movement on cash Closing cash balance (iv) * Unaudited Notes on the September 2013 Consolidated Statement of Cash Flows (i) Net operating cash flow for the quarter includes $60 million inflow from sales, $60 million paid to suppliers and $1 million interest received. (ii) Comprises $4 million of development and plant and equipment expenditure at AQPSA. (iii) Includes dividends of $18 million from Mimosa, $3 million interest paid and $1 million repayment of AQPSA lease liabilities. (iv) Mimosa and Blue Ridge (which Aquarius has a 50% equity interest in) are now accounted for using the equity method. Cash held in these two entities at 30 September 2013 was $14 million and does not form part of the above cash balances. Under the previous method of proportionately consolidating its investment in Mimosa and Blue Ridge, 50% of this cash would have been included in Aquarius' Group cash balance. www.aquariusplatinum.com Page 11 of 24
  12. 12. First Quarter 2014: Financial and Production Results Aquarius Platinum Limited Consolidated Balance Sheet At 30 September 2013 $’000 Note Assets Cash and cash equivalents $’000 As at 30/09/13* As at 30/06/13 90,897 77,773 Current receivables (i) 35,256 33,965 Other current assets (ii) 16,190 16,181 Property, plant and equipment (iii) 101,306 105,030 Mining assets (iv) 119,277 121,695 Intangibles (v) 58,547 59,449 Investments in joint venture entities (vi) 188,049 207,299 Other non-current assets (vii) 50,529 49,327 660,051 670,719 Total assets Liabilities Current liabilities (viii) 27,633 26,765 Non-current payables (ix) 2,694 2,665 Non-current interest-bearing liabilities (x) 270,529 268,788 Other non-current liabilities (xi) 76,791 76,559 Total liabilities 377,647 374,777 Net assets 282,404 295,942 24,370 24,370 Treasury shares (27,554) (26,526) Reserves 637,536 639,854 (357,631) (347,402) 276,721 290,296 5,683 5,646 282,404 295,942 Equity Issued capital Accumulated losses Total equity attributable to equity holders of Aquarius Platinum Limited Non-controlling interests Total equity (xii) * Unaudited www.aquariusplatinum.com Page 12 of 24
  13. 13. First Quarter 2014: Financial and Production Results Notes on the September 2013 Consolidated Balance Sheet (i) Reflects debtors receivable on PGM concentrate sales. (ii) (iii) Reflects PGM concentrate inventory, consumables, stores and critical spares. Represents plant and equipment within the Group. (iv) (v) Includes Group mining assets at Kroondal, Marikana, Everest, CTRP and Platmile. Includes intangibles relating to contract value acquired on the acquisition of equity interest in Platinum Mile Resources (Pty) Ltd. Represents the investment in Mimosa and Blue Ridge. Includes the recoverable portion of the rehabilitation provision from Anglo Platinum of $10 million, receivables from joint venture entities of $24 million and investments in rehabilitation trusts of $17 million. Includes trade creditors of $22 million, AQPSA finance leases of $4 million and provision for annual leave of $1 million. (vi) (vii) (viii) (ix) Includes rehabilitation obligations on P&SA1 and P&SA2 structures. (x) Comprises convertible bonds of $271 million. (xi) Includes deferred tax liabilities $2 million and provision for closure costs $75 million. (xii) Reflects the 8.3% non-controlling interest of Platinum Mile Resources (Pty) Ltd. www.aquariusplatinum.com Page 13 of 24
  14. 14. First Quarter 2014: Financial and Production Results Operating Review Summary (all numbers on 100% basis) AQUARIUS PLATINUM (SOUTH AFRICA) (PTY) LTD (Aquarius Platinum - 100%) PSA 1 at Kroondal (Aquarius Platinum – 50%)            12-month rolling average LTIFR improved to 1.06 per 200,000 man hours from 1.14, quarter-on-quarter Production increased to 1,851,000 tonnes from 1,765,000 tonnes, quarter-on-quarter Head grade remained stable at 2.38g/t Recoveries deteriorated by 2% to 78% Volumes processed increased to 1,790,000 tonnes Stockpiles at the end of the quarter totalled approximately 80,000 tonnes PGM production marginally decreased by 0.4% to 106,441 PGM ounces, quarter-on-quarter Revenue increased by 15% to R1,097 million, quarter-on-quarter, due to the rand weakening Mining cash costs increased by 16% to R541 per tonne, due to electricity winter tariffs, fuel prices and labour increases Unit cash cost per PGM ounce increased 17% to R9,094 per PGM ounce Kroondal’s cash margin for the period deteriorated from 13% to 12% due to increased costs Production, Cash costs and Price Analysis Commentary Kroondal: Production at Kroondal for the quarter was 1.851 million tonnes, up 5% compared to the previous quarter. One section 54 instruction was issued by the DMR at Simunye shaft resulting in a loss of five working days. The cost increases were driven by the implementation of the wage increase in July (4%), winter electricity tariffs (3%) which will reverse in Q2, and the reversal of the leave pay provision in the comparative quarter (June 2013) (6%). In addition to these expected cost increases, geological complications resulted in additional tonnes being milled at lower recovery to achieve forecast ounces and hence increased costs. More specifically, there was a deterioration of 2% in the level of concentrate recoveries due to the presence of the iron-rich ultramafic pegmatite (IRUP) in the processed ore. This caused Ferrosilicone losses in the DMS thus reducing recoveries. Samples of the IRUP ore which originates from Kwezi shaft have been sent for analysis to determine the optimal recovery of PGM's. The full impact this has on the flotation recovery will only be determined once the full mineralogical analysis is completed. www.aquariusplatinum.com Page 14 of 24
  15. 15. First Quarter 2014: Financial and Production Results Further disruptions to mining were encountered at Bambanani where two thirds of the mining faces at Bambanani are mining through a shear zone where the ore is oxidised, thus further reducing recoveries. It is expected that the all the mining faces will be through this shear zone at the end of the next quarter. PSA2 at Marikana (Aquarius Platinum – 50%) Given the continuing low Rand PGM basket prices, Marikana 4 shaft, the remaining operating shaft, and the processing plant at Marikana continue on care and maintenance until further notice. Everest Mine Similarly the Everest mine remains on care and maintenance until further notice. AQPSA Operating cash costs per ounce (Rand) 4E 6E 6E net of by-products (Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni&Cu) 9,094 7,475 Kroondal 7,301 Capital expenditure (100%) Kroondal (R’000 unless otherwise stated) Total Per 4E oz Ongoing establishment of infrastructure 53,185 500 Project capital (K6 shaft) 25,158 236 4,633 44 82,976 780 Mobile equipment purchased Total Kroondal mine: reconciliation of cash costs per 4E ounce Cost per 4E ounce (Rand) Q1 2014 Total operating expenditure Q4 2013 9,873 8,939 Ongoing capital expenditure & mobile equipment (543) (781) Project capex (K6 shaft) (236) (316) 0 (96) 9,094 7,746 Less: Transition costs (K6 shaft from contractor to own operations) On mine cash costs The K6 shaft sinking project was completed within budget and ahead of time. Development of the K6 shaft infrastructure at Kroondal continues. The transition from underground mining contractor to Aquarius at K6 shaft took place on 1 May 2013 and has been successfully completed. Almost all other project and growth capital expenditure has been placed on hold, pending improved market conditions. The Company is continuing with the necessary maintenance capital expenditure required by its operating mines. www.aquariusplatinum.com Page 15 of 24
  16. 16. First Quarter 2014: Financial and Production Results MIMOSA INVESTMENTS (Aquarius Platinum – 50%) Mimosa Platinum Mine            12-month rolling average DIIR improved to 0.03 per 200,000 man hours worked Production improved by 6% to 625,656 tonnes, quarter-on-quarter Head grade deteriorated slightly to 3.63 g/t Recoveries were 77.33%, down 1% quarter-on-quarter Volumes processed decreased by 2% to 611,133 tonnes Stockpiles at the end of the quarter totalled approximately 130,344 tonnes PGM production decreased by 4% to 55,110 PGM ounces, quarter-on-quarter Revenue decreased by 20% to $56 million, due to depressed dollar metal prices Mining cash costs decreased to $76 per tonne, and cash costs per PGM ounce also decreased to $838 per PGM ounce Stay-in-business capital expenditure was $107 per PGM ounce for the quarter Mimosa’s cash margin for the period decreased from 29% to 17% due to the 20% decrease in revenue as mentioned above Production, Cash costs and Price Analysis Operating cash costs per ounce Unit cash costs per PGM ounce before by-product credits) was 4% better than that achieved in the previous quarter as a result of various cost saving initiatives being implemented across the mine. 4E (Pt+Pd+Rh+Au) Mimosa 6E (Pt+Pd+Rh+Ir+Ru+Au) 4E net of by-products (Ni, Cu & Co) 838 793 549 Capital expenditure The total capital expenditure for the first quarter amounted to $6.19 million. Expenditure was incurred mainly on mobile equipment, drill rigs and LHDs, the conveyor belt extension, down dip development, milling and floatation project as well as primary jaw crusher refurbishment. www.aquariusplatinum.com Page 16 of 24
  17. 17. First Quarter 2014: Financial and Production Results TAILINGS OPERATION Platinum Mile (Aquarius Platinum – 91.7%)        Material processed increased 12% to 1,134 million tonnes, quarter-on-quarter Head grade decreased to 0.74 g/t Recoveries decreased to 14% Production decreased to 3,729 PGM ounces Cash costs increased to R6,934 per PGM ounce Revenue was R34 million for the quarter The cash margin for the period was 23%, a decrease from 27% in the previous quarter Commentary Platinum Mile: Strikes and stoppages as a result of water shortages at Anglo Platinum resulted in the loss of a number of production days for the quarter. These strikes continued into October 2013 and will also impact negatively on production results for the ensuing quarter. The installation of three coarse grinding mills at the operation is progressing and remains on target to come into production within the first quarter of calendar 2014. This enhancement should yield approximately 600 additional ounces per month. Operating cash costs per ounce 4E (Pt+Pd+Rh+Au) Platinum Mile 6E (Pt+Pd+Rh+Ir+Ru+Au) 4E net of by-products (Ni, Cu& Co) 6,934 5,991 5,417 Chromite Tailings Retreatment Plant (CTRP) (Aquarius Platinum – 50%) This operation remains on care and maintenance. www.aquariusplatinum.com Page 17 of 24
  18. 18. First Quarter 2014: Financial and Production Results CORPORATE MATTERS Fatal incident at Kroondal It is with great regret and sadness that a female employee was fatally injured in what appears to be a criminal act whilst underground at Kroondal Platinum Mine’s Kwezi Shaft on 9 October 2013. A suspect was apprehended by Kroondal security personnel and handed over to the SAPS and is currently being held in custody by the South African Police Service (SAPS). Trauma counselling has been held at the mine and has also been made available to the family of the deceased. AQPSA's Human Resources department is in contact with the family and is assisting with any required arrangements. AQPSA has extended an offer to the family to recruit a family member to provide further assistance and support. Aquarius deplores any incidence of violence. The company will work closely with the SAPS, the Department of Mineral Resources and employee representatives to support her family and to assist with the investigation. More information on corporate matters can be found at www.aquariusplatinum.com www.aquariusplatinum.com Page 18 of 24
  19. 19. First Quarter 2014: Financial and Production Results Statistical information: Kroondal PSA1 www.aquariusplatinum.com Page 19 of 24
  20. 20. First Quarter 2014: Financial and Production Results Statistical information: Mimosa www.aquariusplatinum.com Page 20 of 24
  21. 21. First Quarter 2014: Financial and Production Results Statistical information: Platinum Mile www.aquariusplatinum.com Page 21 of 24
  22. 22. First Quarter 2014: Financial and Production Results Aquarius Platinum Limited Incorporated in Bermuda Exempt company number 26290 Board of Directors Nicholas Sibley Jean Nel David Dix Tim Freshwater Edward Haslam Kofi Morna Zwelakhe Mankazana Sonja de Bruyn Sebotsa Non-executive Chairman Chief Executive Officer Non-executive Non-executive (Senior Independent Director) Non-executive Non-executive Non-executive Non-executive Audit/Risk Committee David Dix (Chairman) Edward Haslam Tim Freshwater Kofi Morna Nicholas Sibley Remuneration Committee Edward Haslam (Chairman) David Dix Zwelakhe Mankazana Nicholas Sibley Nomination Committee Sonja de Bruyn Sebotsa (Chairman) Edward Haslam Tim Freshwater Kofi Morna Willi Boehm Company Secretary Willi Boehm AQPSA Management Robert Schroder Jean Nel Graham Ferreira Wessel Phumo Managing Director Executive Director Finance Director General Manager: Kroondal Mimosa Mine Management Winston Chitando Herbert Mashanyare Peter Chimboza Fungai Makoni Chairman Technical Director Resident Director General Manager Finance & Company Secretary Platinum Mile Management Richard Atkinson Paul Swart Managing Director Financial Director www.aquariusplatinum.com Page 22 of 24
  23. 23. First Quarter 2014: Financial and Production Results Issued capital At 30 September 2013, the Company had on issue: 486,851,336 fully paid common shares and 120,000 unlisted options. Substantial shareholder 30 September 2013 Wellington Management Company Number of Shares 45,475,688 Percentage 9.34 The Capital Group Companies 37,117,112 7.62 HSBC Custody Nominees (Australia) Limited 31,277,455 6.42 Primary Listing: Premium Listing: Secondary Listing: Australian Securities Exchange (AQP.AX) London Stock Exchange (AQP.L) JSE Limited (AQP.ZA) Broker (LSE) (Joint) Liberum Capital Limited Ropemaker Place, Level 12 25 Ropemaker Street London EC2Y 9LY Telephone: +44 (0) 20 3100 2000 Trading Information ISIN number BMG0440M1284 ADR ISIN number US03840M2089 Convertible Bond ISIN number XS0470482067 Broker (ASX) Sponsor (JSE) Euroz Securities Level 18 Alluvion 58 Mounts Bay Road, Perth WA 6000 Telephone: +61 (0) 8 9488 1400 Barclays 5 The North Colonnade Canary Wharf London E14 4BB Tel: +44 (0) 20 7623 2323 Rand Merchant Bank (A division of FirstRand Bank Limited) 1 Merchant Place Cnr of Rivonia Rd & Fredman Drive, Sandton 2196 Johannesburg South Africa Aquarius Platinum (South Africa) (Proprietary) Ltd 100% owned (Incorporated in the Republic of South Africa) Registration Number 2000/000341/07 1st Floor, Block C, Rosebank Office Park, 181 Jan Smuts Avenue, Rosebank, South Africa Postal Address: PO Box 7840, Centurion, 0046, South Africa Telephone: +27 (0) 10 001 2848 Facsimile: +27 (0) 12 001 2070 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 6951, Australia Telephone: +61 (0) 8 9367 5211 Facsimile: +61 (0) 8 9367 5233 Email: info@aquariusplatinum.com For further information please visit www.aquariusplatinum.com or contact: In the United Kingdom and South Africa: Jean Nel +27 (0) 10 001 2848 www.aquariusplatinum.com In Australia: Willi Boehm +61 (0) 8 9367 5211 Page 23 of 24
  24. 24. First Quarter 2014: Financial and Production Results Glossary A$ Australian Dollar Aquarius or AQP Aquarius Platinum Limited ACS Aquarius Platinum Corporate Services Pty Ltd AQPSA Aquarius Platinum (South Africa) (Pty) Ltd ACS(SA) Aquarius Platinum (SA) Corporate Services (Pty) Ltd BEE Black Economic Empowerment BRPM Blue Ridge Platinum Mine CTRP Chrome Tailings Retreatment Operation. Consortium comprising Aquarius Platinum (SA) (Corporate Services) (Pty) Limited (ASACS), Ivanhoe Nickel and Platinum Limited and Sylvania South Africa (Pty) Ltd (SLVSA). 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 DME formerly South African Government Department of Minerals and Energy DMR South African Government Department of Mineral Resources, formerly the DME Dollar or $ United States Dollar Everest Everest Platinum Mine Great Dyke Reef A PGE-bearing layer within the Great Dyke Complex in Zimbabwe GoZ Government of 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 Johannesburg Stock Exchange Kroondal Kroondal Platinum Mine or P&SA1 at Kroondal LHD Load haul dump machine LTIFR Lost Time Injury Frequency Rate Marikana Marikana Platinum Mine or P&SA2 at Marikana Mimosa Mimosa Mining Company (Private) Limited NUM National Union of Mineworkers nm Not measured PGE(s) (6E) Platinum group elements plus gold. Five metallic elements commonly found together which constitute the platinoids (excluding Os (osmium)). These are Pt (platinum), Pd (palladium), Rh (rhodium), Ru (ruthenium), Ir (iridium) plus Au (gold) PGM(s) (4E) Platinum group metals plus gold. Aquarius reports PGMs as comprising Pt+Pd+Rh plus Au (gold) with Pt, Pd and Rh being the most economic platinoids in the UG2 Reef PlatMile Platinum Mile Resources (Pty) Ltd PSA1 Pooling & Sharing Agreement between AQPSA and RPM Ltd on Kroondal PSA2 Pooling & Sharing Agreement between AQPSA and RPM Ltd on Marikana R or Rand South African Rand Ridge Ridge Mining Limited 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 Limited Rustenburg Platinum Mines Limited, a subsidiary of Anglo Platinum Limited Tonne 1 metric tonne (1,000kg) TARP Trigger Action Response Procedure UG2 Reef A PGE-bearing chromite layer within the Critical Zone of the Bushveld Complex www.aquariusplatinum.com Page 24 of 24

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