Aquarius Platinum Limited
Second Quarter 2009 Production Results (to 31 December 2008)
Highlights of the Quarter
Increase in Group production
Reductions in cash costs at Kroondal, Marikana, and CTRP and for the Group as a
whole
Further falls in all PGM prices, with some respite from a weaker Rand
Commenting on the results, Stuart Murray, CEO of Aquarius Platinum said, "The
operational turnaround which started in the previous quarter continued its
momentum to deliver solid improvements in production and costs across the Group
during the quarter, despite the subsidence event at Everest resulting in the
temporary suspension of operations. This temporary suspension will allow us
the time we need to engage with our insurers and develop a plan to ensure that
Everest is brought back in the right manner for the long-term, rather than
rushing into a short-term high-risk turnaround that could place strain on the
business as a whole."
The dire global macro environment continues however to impact on profitability
of the Group as PGM prices have weakened further during the quarter.
Preliminary assessment of the half yearly result for the Group indicates a net
after tax loss in the range of $75 million to $85 million after approximately
$20m (pre tax) in writedowns associated with the temporary closure of the
Everest mine. The deterioration in earnings has been attributable in the main
to the continued decline in metal prices during the second quarter,
particularly rhodium which fell 54% and nickel which fell 27%. This guidance
is preliminary in nature, subject to finalisation within Aquarius as well as
review by the company's external auditors. Additionally, the Company will be
conducting impairment testing of the carrying value of certain assets as at 31
December 2008. As such, the actual results for the six months to 31 December
2008 may differ from the guidance given in this update. Given the ongoing
turmoil in global markets and the impact this may have on operations, we
believe it is appropriate to provide an early indication of half yearly
results. Further detailed analysis will be covered in the results announcement
to be released on 5th February 2008."
P&SA1 at Kroondal
PGM production up 8% to 109,707 PGM ounces (Aquarius attributable: 54,854 PGM
ounces)
Cash cost fell 13% to R4,856 per PGM ounce
Effective cash margin of 15%, reduced to -78% after accounting for negative
sales price adjustments
P&SA2 at Marikana
PGM production up 9% to 42,451 PGM ounces (Aquarius attributable: 21,226 PGM
ounces)
Cash costs fell 20% to R6,279 per PGM ounce
Effective cash margin of -13%, reduced to -146% after accounting for negative
sales price adjustments
Everest
Operations temporarily suspended following subsidence in decline area
PGM production down 2% to 31,703 PGM ounces (Aquarius attributable 31,703 PGM
ounces)
Effective cash margin of -19%, reduced to -210% after accounting for negative
sales price adjustments
Mimosa
PGM production marginally lower at 43,232 PGM ounces (Aquarius attributable
21,616 PGM ounces)
Cash costs increased 2% to $473 per PGM ounce
Cash margin for the quarter reduced to 56% following metal price reductions
CTRP
PGM production up marginally to 1,784 PGM ounces (Aquarius attributable: 892
PGM ounces)
Cash costs fell 11% to R3,361 per PGM ounce
Effective cash margin of reduced to -2% after accounting for negative sales
price adjustments
Platinum Mile
PGM production down 48% to 3,103 PGM ounces (Aquarius attributable: 1,552 PGM
ounces)
Cash costs increased to R5,500 per PGM ounce due to interruption during plant
expansion
Cash margin for the quarter at 42%
Production by Mine
Quarter Ended
PGMs (4E)
Mar 2008 Jun 2008 Sep 2008 Dec 2008
Kroondal 100,020 83,062 101,731 109,707
Marikana 24,223 28,416 38,883 42,451
Everest 31,107 31,327 32,365 31,703
Mimosa 34,283 38,517 43,638 43,232
CTRP 2,309 2,044 1,764 1,784
Platinum Mile 2,006 5,035 5,983 3,103
Total 193,948 188,401 224,364 231,980
Production by Mine Attributable to Aquarius
Quarter Ended
PGMs (4E)
Mar 2008 Jun 2008 Sep 2008 Dec 2008
Kroondal 50,010 41,531 50,866 54,854
Marikana 12,111 14,208 19,442 21,226
Everest 31,107 31,327 32,365 31,703
Mimosa 17,142 19,258 21,819 21,616
CTRP 1,154 1,022 882 892
Platinum Mile 1,003* 2,517 2,992 1,552
Total 112,527 109,863 128,366 131,843
Cash Costs
At operations in South Africa, cash costs have been reduced; primarily a
reflection of increased volumes rather than the falling price of mine
consumables. Restructuring initiatives were implemented across all operations
to optimise labour complements and associated cost. Labour cost therefore
reduced across the period. Although some consumable cost, such as steel, diesel
and explosives showed a price decrease towards the latter half of the quarter
on the basis of falling commodity prices the effect on cost was muted, with the
cost benefit expected to be more substantive in the next quarter along with
further efficiency initiatives.
Metals Prices and Foreign Exchange
Metals price performance for our commodities was volatile over the quarter.
Platinum closed the quarter down 10% to $865 per PGM ounce, though has
subsequently picked up in to the new calendar year. Palladium closed the
quarter up 4% to $191 per ounce. Rhodium fell significantly over the quarter,
closing down 54% at $1,688 per ounce and has fallen further since. Gold was
almost flat over the quarter, closing down just 1% at $866 per ounce.
Looking at the 4PGE basket prices for the quarter, the average basket for the
operations in South Africa fell 57% to $744 per ounce and at Mimosa in Zimbabwe
by 58% to $905 per ounce. The average 4PGE basket for the group for the
quarter fell 54% to $770 per PGM ounce.
Average PGM basket prices achieved at Aquarius operations: US$ per PGM ounce
(4E)
Basket Prices (Quarter Ended)
Mar 2008 Jun 2008 Sep 2008 Dec 2008
Kroondal 2,129 2,350 1,758 746
Marikana 2,041 2,311 1,693 744
Everest 2,112 2,266 1,692 746
Mimosa 1,237 1,607 1,549 905
CTRP 2,505 2,850 2,251 818
Platinum Mile - 1,989 1,085 596
Aquarius Group Average 1,981 2,187 1,684 770
The Rand weakened significantly over the quarter, closing 21% down at an
exchange rate of 9.4 to the US Dollar. It should be noted, however, that the
quarter average was weaker still at 9.9 due to a short period when the Rand was
11.6 to the US Dollar. The Rand has continued to weaken during 2009.
AQUARIUS PLATINUM (SOUTH AFRICA) (PTY) LTD (Aquarius Platinum 100%)
P&SA 1 at Kroondal
Safety
The 12-month rolling average DIIR for the quarter deteriorated from 0.54 in the
previous quarter to 0.77. Seven lost-time injuries were reported during the
quarter.
Regrettably a fatal accident occurred at the K5 Shaft on 18 September 2008,
when Mr Castigo Machel, a load-haul-dumper (LHD) operator and employee of
mining contractor Redpath Mining, was fatally injured when he was struck by an
LHD vehicle in the underground operation.
AQPSA has concluded the internal investigation but was issued a Section 54
instruction under the Mine Health and Safety Act, 1996. The instruction
resulted in a 2-day stoppage of LHD operations on all Kroondal shafts. The
Department of Minerals and Energy (DME) has yet to complete the enquiry into
the accident.
Mining
Production tons increased by 6% to 1,804,021 tons
Head grade increased from 2.54 g/t to 2.60 g/t
Processing
Tons processed increased by 7% to 1,673,563 tons
Recoveries remained consistent at 78%
PGM production increased by 8% to 109,707 PGM ounces
Revenue
The basket price for the quarter averaged $746 per PGM ounce, 58% lower than
the previous quarter. The Rand Dollar exchange rate averaged 9.75 for the
quarter. Revenue at Kroondal decreased by 45% to R299 million for the quarter
(Aquarius attributable: R150 million).
The increase in production was offset by the significant reduction in the
basket price. This was compounded by negative sales adjustments caused by
weakening PGM prices at the close of the period compared to the close of the
prior quarter.
Operations
Total production increased by 6% to 1,804,021 tons. Production from
underground operations increased by 6% to 1,795,306 tons with only 8,715 tons
produced from open pit operations. Open pit operations were completed during
the quarter.
The relationship building exercise initiated during the previous quarter is
ongoing, with no days lost as a result on industrial action. Production was,
however, impacted by the Section 54 instruction issued by the DME following the
fatal accident at K5 shaft.
Tons processed increased by 7% to 1,674,523 tons, comprising 1,673,563 tons
from underground and 960 tons of opencast material. Stockpiles at the end of
the quarter were 154,000 tons.
The head-grade increased to 2.60 g/t.
Recoveries increased remained at 78%.
PGM production increased by 8% to 109,707 PGM ounces (Aquarius attributable:
54,854 ounces) due to the increased underground production.
Primary development for the quarter was 1,724 metres.
Kroondal: Metal in concentrate produced (PGM ounces)
Quarter ended Pt Pd Rh Au PGMs Attributable
to Aquarius
Dec 2008 65,075 32,161 11,941 531 109,707 54,854
Sep 2008 60,634 29,573 11,068 456 101,731 50,866
Jun 2008 49,621 24,054 9,014 372 83,062 41,531
Mar 2008 59,834 28,966 10,759 461 100,020 50,010
Operating Cash Costs
Cash costs per ton decreased by 12% to R318 and costs per PGM ounce decreased
by 13% to R4,856 as a result of increased production and successful cost
reduction initiatives. Gross revenue decreased by 45% to R299m as a result of
the significant decline in PGM prices and the negative sales adjustment. As a
result, Kroondal Mine shows a negative cash margin for the period of -78%,
however, the calculated cash margin for the quarter excluding the sales
adjustments is 15% showing that the operation remains cash generative in terms
of current operations.
Kroondal: Operating Cash Costs per Ounce
4E 6E 6E net of by-products
(Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni&Cu)
Kroondal R 4,856 R 3,979 R 3,907
Capital Expenditure
Capital expenditure for the quarter was R75,451 million, all ongoing capital.
Major items included underground infrastructure, underground workshop upgrade,
mobile mining equipment and the K5 rail link project.
P&SA2 at Marikana
Safety
The 12-month rolling average DIIR for the quarter deteriorated from 0.64 in the
previous quarter to 0.70. Nine lost time injuries were reported during the
quarter.
Mining
Production tons increased by 7% to 744,692 tons, comprising 378,641 tons from
underground and 366,051 tons from open pit operations
Head grade increased by 4% to 2.92 g/t
Processing
Tons processed decreased by 1% to 679,111 tons
Recoveries increased by 5% to 66%
PGM production increased by 9% to 42,451 ounces (Aquarius attributable: 21,226
ounces)
Revenue
The basket price for the quarter averaged $744 per PGM ounce, 56% lower than
the previous quarter. The Rand Dollar exchange rate averaged 9.75 for the
quarter. Quarterly revenue at Marikana decreased by 44% to R108 million
(Aquarius attributable: R54 million) due to a significant reduction in PGM
prices and negative sales adjustments caused by weakening PGM prices at the
close of the period compared to the close of the prior quarter as detailed.
Operations
Total production increased by 7% to 744,692 tons for the quarter.
The open pit operation performance improved, showing a quarter-on-quarter
increase of 10% to 366,051 tons. The open pit shell was re-optimised during
the quarter in line with the reduced PGM prices. A new shell with a lower
strip ratio of 21:1 from 30:1 is now being mined resulting in a 24%
quarter-on-quarter decrease in the stripping ratio.
Operations at Number 2 shaft were suspended at the end of the previous quarter
on the basis of its financial viability at current metals prices. Despite the
suspension, underground production increased by 5% to 378,641 tons for the
quarter although face length was adversely affected by a high frequency of
potholes. The focus remains on development to mitigate the impact of the
geological losses.
The 'Areboleleng' (Tswana for "let's talk") safety initiatives that were
implemented in the previous quarter and the new commercial arrangement with MRC
have both had a positive effect on industrial relations, with no industrial
action during the quarter.
Tons processed decreased by 1% to 679,111 tons, comprising 292,026 tons from
underground and 387,085 tons of open pit material.
Stockpiles at the end of the quarter were 145,407 tons, consisting
predominantly of open pit material.
The head-grade increased by 4% to 2.92 g/t, mainly as a result of the higher
proportion of open pit tons processed. Recoveries improved from 63% to 66%
quarter on quarter, in line with the increased head grades and competent open
pit material processed.
The PGM production for the quarter increased by 9% to 42,451 PGM ounces
(Aquarius attributable: 21,226).
Marikana: Metal in concentrate produced (PGM ounces)
Quarter ended Pt Pd Rh Au PGMs Attributable
to Aquarius
Dec 2008 26,193 11,733 4,256 268 42,451 21,226
Sep 2008 24,182 10,609 3,866 226 38,883 19,442
Jun 2008 17,843 7,649 2,769 155 28,416 14,208
Mar 2008 15,114 6,601 2,351 158 24,223 12,111
Operating Cash Costs
Cash costs per ton decreased by 12% to R392, whilst costs per PGM ounce
decreased by 20% to R 6,279 as a result of higher production and ongoing
improvement initiatives that are being implemented to counter the effect of
falling metals prices. However, gross revenue decreased by 44% to R108m as a
result of the significant decline in PGM prices and the negative sales
adjustment. As a result, Marikana Mine shows a negative cash margin for the
period of -146%.
Marikana: Operating Cash Costs per Ounce
4E 6E 6E net of by-products
(Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni&Cu)
Marikana R 6,279 R 5,148 R 5,002
Capital Expenditure
Ongoing capital expenditure totalled R29.9 million. (AQPSA share R14.95
million).
Contractor dispute with Moolman Mining
There have been no new developments during the quarter.
Everest Platinum Mine
On December 8 2008, Aquarius announced that operations at the Everest Platinum
Mine were suspended owing to geotechnical issues.
Operations at the Everest Mine were suspended from night shift on Sunday 7
December 2008 after instability was detected in the upper areas of the mine.
The instability was subsequently found to be a result of subsidence that has
occurred over an upper area of the mine with the area affected by subsidence
limited to a mined out area of the orebody which includes the upper levels of
the decline shaft.
The extent of the subsidence was investigated by independent rock engineering
specialists in conjunction with the Department of Minerals and Energy, who
subsequently issued a Section 54 instruction in terms of the Mine Health and
Safety Act stopping all mining operations. Following a comprehensive
assessment of the options available to mine management, and primarily focussing
on the future safety of the mine and its personnel, the decision has been made
to suspend operations for a minimum of six months, a prudent time frame that
will permit assessment of the best way forward for the long-term.
The nature of the suspension unfortunately resulted in the retrenchment of some
1,900 employees, and consultation with relevant unions were initiated in terms
of Section 189 of the Labour Relations Act in December 2008.
The following report for the Everest Platinum Mine is for the three months to
December 2008, however, it should be noted that the mine was only operating
until December 7, therefore period-on-period comparables are not accurate.
Safety
The 12-month rolling average DIIR for the quarter improved from 0.65 in the
previous quarter to 0.58. Four lost time injuries were reported during the
quarter.
Mining
Mining operations were suspended on December 7 2008
Underground production was 408,342 tons
The head grade improved to 2.96 g/t.
Processing
The processing plant was stopped on December 8 2008
Plant processed 401,781 tons
Recoveries improved to 84%
PGM production was 31,703 PGM ounces
Revenue
The basket price for the quarter (or production period to December 7 2008)
averaged $746 per PGM ounce with an average Rand Dollar exchange rate of 9.75.
Revenue at Everest was R69 million for the quarter (Aquarius attributable: R69
million) due to the significant weakening of PGM prices and negative sales
pipeline adjustments caused by weakening PGM prices.
Operations
Total production decreased by 8% to 408,345 tons.
Production showed a positive improvement throughout the quarter. The Northern
panels were increased in length after all the panels were undercut, leaving the
shear zone in the hanging wall. The increased panel length and the reduced
stoping width resulted in improved productivity, a reduction in dilution and a
resultant improved grade. This configuration also enabled better utilization
of mobile mining equipment which showed satisfactory availability
improvements. Face length availability remained a challenge at Everest.
Tons processed decreased by 8% to 401,806 tons in line with the production.
There was no stockpile at the end of the quarter.
The head-grade improved to 2.96 g/t due to a reduction in dilution from
underground.
Recoveries improved to 84% due to ongoing process optimisation.
PGM production decreased by 2% to 31,703 PGM ounces.
Primary development for the quarter decreased by 16% to 903.5 metres.
Everest: Metal in concentrate produced (PGM ounces)
Quarter ended Pt Pd Rh Au PGMs (4E)
Dec 2008 18,340 9,900 3,174 288 31,703
Sep 2008 19,302 9,465 3,325 274 32,365
Jun 2008 18,777 9,060 3,236 254 31,327
Mar 2008 18,863 8,912 3,072 259 31,107
Operating Cash Costs
Cash costs per ton were R530 per ton, whilst costs per PGM ounce were R6,717
per ounce. Although unit cost showed a major improvement for the first two
months of the quarter (for November, the cash cost R/oz was R4,967, an
improvement of 25% on Q1 2009), unit cost was negatively impacted by the
suspension of the operations and the continued overhead cost for December. The
cash margin for the quarter was -210%. This variance is attributed to the
negative pipeline sales adjustment that resulted from the significant decline
in PGM prices during the quarter as detailed above. Gross revenue decreased to
R69m.
Everest Operating Cash Costs per PGM Ounce
4E 6E 6E net of by-products
(Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni&Cu)
Everest R 6,717 R 5,523 R 5,393
Capital Expenditure
Capital expenditure for the quarter was R36 million, R10 million up from
quarter 1. The major contributors were the chrome spiral plant at R17.5
million and mobile mining equipment at R8 million. The chrome spiral plant
project has subsequently been suspended.
MIMOSA INVESTMENTS (Aquarius Platinum 50%)
Mimosa Platinum Mine
Safety
The 12-month rolling average DIIR for the quarter improved from 0.19 in the
previous quarter to 0.17. Two lost time injuries were reported during the
quarter.
Mining
Underground production increased by 9% to 547K tons
Head grade slightly increased 1% to 3.63 g/t
The surface stockpile increased to a total 530,000 tons at the end of the
quarter, equivalent to over 82-days mill feed
Processing
Concentrator plant recoveries increased to 74.2% from 73.4%
Total mine production marginally decreased by 1% to 43,232 PGM ounces (Aquarius
share: 21,616 PGM ounces)
A process optimisation programme was initiated in July 08 following the
successful repairs to the
No 2 Primary Ball Mill. Positive results have followed in the current quarter
which demonstrate that the Phase V operations can achieve the design outputs
both underground and on surface. The only outstanding major efficiency issues
relate to PGM recoveries. Further improvements are expected as process
stability and mill grinds improves.
Revenue
The average achieved PGM basket price for the quarter decreased by 42% to $905
per PGM ounce. The average achieved nickel price over the quarter decreased by
27% to $7.15 per pound from $9.79 per pound in the previous quarter. Revenue
for the quarter decreased to $46.1 million, with base metals accounting for
approximately 24% of revenue. The cash margin decreased to 56% from 69% in the
previous quarter mainly due to falling metal prices.
Operations
During the quarter mining operations hoisted 546,891 tons compared to 499,590
tons in the previous quarter. Tons milled during the quarter totalled 499,331
tons, with 47,560 tons being transferred to the stockpile, which totalled
529,976 tons at the quarter end. In line with plan, the stockpile increased by
47,560 tons.
The average plant grade marginally increased to 3.63 g/t, compared to 3.59 g/t
in the previous quarter.
Tons processed totalled 499,331, a 3% decrease compared to the previous
quarter, due to a number of operational issues which included crushing plant
stoppages, unplanned Phase V Primary Ball mill stoppage, planned maintenance
challenges experienced on the tailings disposal lines and power failure.
Recoveries for the quarter slightly increased to 74.2% from 73.4%.
PGM production during the quarter decreased by 1% to 43,232 ounces (Aquarius
attributable: 21,616 ounces).
Mimosa: PGMs in concentrate produced (ounces)
Quarter ended Pt Pd Rh Au PGMs Attributable to Aquarius
Dec 2008 21,903 16,678 1,753 2,898 43,232 21,616
Sep 2008 22,113 16,863 1,770 2,892 43,638 21,819
Jun 2008 19,532 14,821 1,535 2,628 38,517 19,258
Mar 2008 17,392 13,234 1,351 2,306 34,283 17,142
Mimosa: Base Metals in concentrate produced (tons)
Mine Production Attributable to Aquarius
Quarter ended Ni Cu Co Ni Cu Co
Dec 2008 615 497 18 307.5 248.5 9
Sep 2008 602 498 17 301 249 8.5
Jun 2008 533 439 15 266 219 7
Mar 2008 475 392 14 237 196 7
Operating Cash Costs
Cash costs per ROM ton increased by 4% to $41, whilst costs per PGM ounce
increased by 2% to $473. The increase in cash costs for the quarter was
attributable to low production throughput recorded during the quarter.
Consequently on mine cash costs were also higher at $403 per PGM ounce. The
gross cash margin decreased to 56% from 69% in the previous quarter mainly due
to falling metal prices.
Net of by-products, cash costs were positive at $181 per PGM ounce, compared to
$144 per PGM ounce in the previous quarter, primarily due to falling nickel
prices.
Mimosa Operating Cash Costs per Ounce
4E 6E 4E net of by-products
(Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au)
(Ni, Cu & Co)
Mimosa $473 $450 $181
Update on Foreign Currency Regime in Zimbabwe
The Interbank foreign exchange market introduced in April 2008 is still
operational. The Central Bank has also recently authorised approximately 1,000
retail and wholesale outlets nation-wide to sell products in United States
dollars. Following this development, the economy has now almost dollarised as
every retailer or service provider is demanding payment in foreign currency.
Update on Indigenisation Legislation in Zimbabwe
The Indigenisation and Economic Empowerment bill was enacted into law during
the last quarter of the previous financial year. Specific details on the
implementation of the act in various sectors are being awaited. The details on
the mining sector are supposed to be incorporated into the amendments to the
Mines and Minerals Act which are yet to be brought before parliament.
Wedza Phase 5.5 Expansion
The project is progressing well with some notable milestones,, namely: the
civil construction of the silo, the installation of the 70m3 flotation cell,
the laying of the tailing delivery line and the delivery to site of the crusher
and the sizing screen. All of the major equipment and structural steel is now
on site. Commissioning is planned for end March 2009.
AQUARIUS PLATINUM (SA) CORPORATE SERVICES (PTY) LTD
Chromite Tailings Retreatment Plant (CTRP) (Aquarius Platinum 50%)
Safety
The DIIR decreased from 5.69 to 4.80 from the previous quarter. No lost time
accidents were recorded.
Processing
Material processed reduced to 50,000 tons
Grade decreased 14% to 2.27 g/t
Recoveries increased by 46% to 48%
Production marginally increased to 1,784 PGM ounces (Aquarius attributable: 892
PGM ounces)
Revenue
The basket price for the quarter averaged $818 per PGM ounce, 64% lower than
the previous quarter, with average Rand Dollar exchange rate of 9.75. Revenue
decreased by 2% to R6 million for the quarter (Aquarius attributable: R3
million) due to the lower production and negative sales pipeline adjustments
caused by weakening PGM prices at the close of the period compared to the close
of the prior quarter.
Operations
Material processed fell to 50,000 tons.
The head grade decreased 14% to 2.27 g/t as a result of grade variances within
the chromite dump source material.
Recoveries, however, increased significantly, up 46% to 48% due to improvement
in operational stability following the implementation of several initiatives.
This resulted in production increasing by 1% to 1,784 PGM ounces (Aquarius
attributable: 892 ounces) this decrease in production was due to the lower feed
grade.
CTRP: Metal in concentrate produced (PGM ounces)
Quarter ended Pt Pd Rh Au PGMs (4E)
Dec 2008 1,078 404 297 4 1,784
Sep 2008 1,077 388 295 4 1,764
Jun 2008 1,254 452 333 5 2,044
Mar 2008 1,437 517 351 5 2,309
Operating Costs
Cash costs decreased by 11% to R3361 per PGM ounce. Cash margin for the period
of -2%, however, the operation remains cash generative in terms of current
operations.
CTRP Operating Cash Costs per Ounce
4E 6E 4E net of by-products
(Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au)
(Ni, Cu& Co)
CTRP R 3,361 R 2,325 R2,150
Platinum Mile (Aquarius Platinum 50%)
The effective date of the acquisition of the 50% interest in Platinum Mile was
March 1 2008.
Safety
The DIIR was zero for the quarter. No lost time accidents were recorded.
Processing
Tailings processed decreased 22% compared to the previous quarter to 2,006
million tons
PGM grade was 0.67 g/t
Production was 3,103 PGM ounces (Aquarius attributable: 1,552 PGM ounces)
Revenue
Revenue as R32 million for the quarter (Aquarius attributable: R16 million).
The basket price for the quarter averaged $596 per PGM ounce, at an average
Rand Dollar exchange rate of R9.89. The cash margin for the quarter was 42%.
Operations
During the quarter the feed head grade decreased marginally to 0.67 g/t
compared to 0.76 g/t the previous quarter.
Recoveries decreased to 7% compared to the 10% achieved the previous quarter.
As a result, production decreased 48% to 3,103 PGM ounces (Aquarius
attributable: 1,552 ounces). This was in part due to lower tonnages received
from Anglo Platinum but also due to the planned commissioning of new milling
capacity for the expansion project, due to be completed in the third quarter FY
2009.
Platinum Mile: Metal in concentrate produced (PGM ounces)
Quarter ended Pt Pd Rh Au PGMs (4E)
Dec 2008 1799 962 279 63 3,103
Sep 2008 3,470 1,855 538 120 5,983
Jun 2008 2,920 1,561 453 101 5,035
Mar 2008 1,127 636 208 34 2,005
Operating Costs
Cash costs increased by 17% to R5,500 per PGM ounce. The increase is as a
result of lower PGM production.
Platinum Mile Operating Cash Costs per Ounce
4E 6E 4E net of by-products
(Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au)
(Ni, Cu& Co)
Platinum Mile R 5,500 nm nm
Platinum Mile Milling Expansion Program
With the addition of additional grinding capacity in the third quarter, the
expansion program to increase annual production to 28,000 PGM ounces from March
2009 is on track. Capital expenditure for the quarter was R15.3 million. Of a
project budget of R59 million, this brings the total spent to date to R41
million, with R18 million remaining in the third quarter to March 2009.
CORPORATE MATTERS
Update on BEE
On October 27 2008, Aquarius announced the completion of the final phase of its
South African BEE transaction with Savannah Consortium whereby SavCon exchanged
its 32.5% shareholding in AQPSA into 65,042,856 new shares in Aquarius,
comprising approximately 20% of the enlarged share capital of Aquarius.
Subsequently, Aquarius increased its holding in AQPSA to 100% of AQPSA.
Following the acquisition of Impala Platinum's Holdings Limited interests in
Aquarius and AQPSA earlier in the year, Aquarius enjoys a 100% free-float and
full access to cash flows and earnings from its operations.
New UK Corporate Broker
On November 25 2008, Aquarius announced that it had appointed Merrill Lynch
International to act as joint UK corporate broker replacing Morgan Stanley &
Co. International Limited.
More information on corporate matters may be found at www.aquariusplatinum.com
Aquarius Platinum Limited
Incorporated in Bermuda
Exempt company number 26290
Board of Directors
Nicholas Sibley Non-executive Chairman
Stuart Murray Chief Executive Officer
David Dix Non-executive
Timothy Freshwater Non-executive
Edward Haslam Non-executive
Sir William Purves Non-executive
Kofi Morna Non-executive
Zwelakhe Mankazana Alternate to Kofi Morna
Audit/Risk Committee
Sir William Purves (Chairman)
David Dix
Edward Haslam
Nicholas Sibley
Remuneration/Succession Planning Committee
Edward Haslam (Chairman)
Nicholas Sibley
Nomination Committee
The full Board comprises the Nomination Committee
Company Secretary
Willi Boehm
AQPSA Management
Stuart Murray Executive Chairman
Hugo Höll Managing Director
Hélene Nolte Director: Finance
Hulme Scholes Commercial Director
Anton Lubbe Operations Director: West
Anton Wheeler Operations Director: East
Graham Ferreira General Manager: Group Admin & Company Secretary
Mkhululi Duka General Manager: Group Human Resources & Transformation
Wessel Phumo General Manager: Marikana
Jacques Pretorius General Manager: Everest
Gabriel de Wet General Manager: Engineering
ACS (SA) Management
Paul Smith Director: New Business
Mimosa Mine Management
Winston Chitando Managing Director
Herbert Mashanyare Technical Director
Peter Chimboza Operations Director
Fungai Makoni Finance Executive & Company Secretary
Issued Capital
At 31 December 2008, the Company had in issue: 327,095,634 fully paid common
shares and 1,680,305 unlisted options.
Substantial Shareholders 31 December 2008 Number of Shares Percentage
HSBC Custody Nominess (Australia Limited) 20,811,259 6.36%
Nutraco Nominees Limited 16,530,643 5.05%
Trading Information
ISIN number BMG0440M1284
ADR ISIN number US03840M2089
Broker (LSE) (Joint) Broker (ASX) Sponsor (JSE)
Merrill Lynch Euroz Securities Investec Bank Limited
International
Level 14, The Quadrant 100 Grayston Drive
2 King Edward St
1 William Street, Perth Sandown, Sandton 2196
London, EC1A 1HQ WA 6000
Telephone: +27 (0)11
Telephone: +44 (0)20 Telephone: +61 (0)8 9488 286 7326
7628 1000 1400
Investec Securities
Limited
Investec Bank plc
2 Gresham St, London,
EC2V 7QP
Telephone: +44 (0)20
7597 5970
Aquarius Platinum (South Africa) (Proprietary) Ltd
100% Owned (At 31 December 2008)
(Incorporated in the Republic of South Africa)
Registration Number 2000/000341/07
Block A, 1st Floor, The Great Wall Group Building, 5 Skeen Boulevard,
Bedfordview, South Africa 2007
Postal Address P O Box 1282, Bedfordview, 2008, South Africa.
Telephone: +27 (0)11 455 2050
Facsimile: +27 (0)11 455 2095
Aquarius Platinum Corporate Services Pty Ltd
100% Owned
(Incorporated in Australia)
ACN 094 425 555
Level 4, Suite 5, South Shore Centre, 85 The Esplanade, South Perth, WA 6151,
Australia
Postal Address PO Box 485, South Perth, WA 6151, Australia
Telephone: +61 (0)8 9367 5211
Facsimile: +61 (0)8 9367 5233
Email: info@aquariusplatinum.com
Glossary
A$ Australian Dollar
Aquarius Aquarius Platinum Limited
ABET Adult Basic Education Training programme
APS Aquarius Platinum Corporate Services Pty Ltd
AQPSA Aquarius Platinum (South Africa) Pty Ltd
ACS (SA) Aquarius Platinum (SA) (Corporate Services) (Pty) Limited
BEE Black Economic Empowerment
CTRP Chromite Ore 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 Incidence Rate - being the number of lost-time
injuries expressed as a rate per 1,000,000 man-hours worked
DIIR Disabling Injury Incidence Rate - being the number of lost-time
injuries expressed as a rate per 200,000 man-hours worked
DME South African Government Department of Minerals and Energy Affairs
Dollar United States Dollar
or $
EMPR Environmental Management Programme Report
Everest Everest Platinum Mine
Great A PGE bearing layer within the Great Dyke Complex in Zimbabwe
Dyke
Reef
g/t Grams per tonne, measurement unit of grade (1g/t = 1 part per million)
JORC Australasian code for reporting of Mineral Resources and Ore Reserves
code
JSE JSE Securities Exchange South Africa
Kroondal Kroondal Platinum Mine or P&SA1 at Kroondal
LHD Load Haul Dump machine
Marikana Marikana Platinum Mine or P&SA2 at Marikana
Mimosa Mimosa Mining Company (Private) Limited
MRC Murray & Roberts Cementation
nm Not measured
NOSA National Occupational Safety Association
NUM South African National Union of Mineworkers
PGE(s) Platinum Group Elements plus Gold. Five metallic elements commonly
(6E) found together which constitute the platinoids (excluding Os
(osmium)). These are Pt (platinum), Pd (palladium), Rh (rhodium), Ru
(ruthenium), Ir (iridium) plus Au (gold)
PGM(s) Platinum Group Metals plus Gold. Aquarius reports the PGMs as
(4E) comprising Pt+Pd+Rh plus Au (gold) with the Pt, Pd and Rh being the
most economic platinoids in the UG2 Reef
P&SA1 Pooling & Sharing Agreement between AQPSA and RPM Ltd on Kroondal
P&SA2 Pooling & Sharing Agreement between AQPSA and RPM Ltd on Marikana
R South African Rand
ROM Run of Mine. The ore from mining which is fed to the concentrator
plant. This is usually a mixture of UG2 ore and waste.
RPM Rustenburg Platinum Mines Limited
SavCon The Savannah Consortium - the principal Black Empowerment Investor in
Aquarius Platinum
TKO TKO Investment Holdings Limited
Ton 1 Metric tonne (1,000kg)
UG2 Reef A PGE bearing chromite layer within the Critical Zone of the Bushveld
Complex
Z$ Zimbabwe Dollar
For further information please contact:
In Australia:
Willi Boehm
+61 (0)8 9367 5211
In the United Kingdom and South Africa
Nick Bias
+ 44 (0)7887 920 530
nickbias@aquariusplatinum.com
END
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