AQUARIUS PLATINUM LIMITED: 2013 Half Year Financial Results to 31 Dec 2012

AQUARIUS PLATINUM LIMITED: 2013 Half Year Financial Results to 31 Dec 2012
2013 Half Year Financial Results: 31 December 2012                
                       Aquarius Platinum Limited                            


          Financial Results for the six months ended 31 December 2012          

Key Points: Financial          

Revenue decreased by 29% to $179 million (H1 2012: $252 million)

Mine operating net cash flow decreased by $63 million to a $38 million outflow
(H1 2012: inflow of $25 million)

Mine EBITDA decreased  by 24% to $22 million (H1 2012: $29 million)

Group cash balance at period end of $83 million

Key Points: Operational

Group attributable production decreased by 27% to 156,787 PGM ounces (H1 2012:
215,453 PGM ounces)

Attributable production from operating mines increased by 8% compared to the
previous corresponding period (pcp)

The average US Dollar PGM Basket Price was 10% lower compared to the pcp

The average Rand Basket Price increased by 1% compared to the pcp due to a
weaker Rand

The Rand weakened by 12% on average against the US Dollar

On-mine unit cash costs in South Africa increased by 3% in Rand terms

Mimosa performed strongly again, continuing to produce at capacity

Operations at Blue Ridge, Marikana, Everest and CTRP remained suspended

Key Points: Strategic

Transition to owner operator completed during the period, on time and below
budget

Rollout of revised hanging wall system completed during the period, on time and
below budget

Mimosa and Government of Zimbabwe agreed commercial terms on indigenisation and
signed a term sheet

Commenting on the results, Jean Nel, CEO of Aquarius Platinum said:

The period under review was one of the most challenging in the history of the
company. Industrial relations in the southern African mining industry, and in
particular the platinum sector, were volatile and strained throughout the
entire period, whilst at the same time, platinum group metal prices remained
low.

In South Africa, the Aquarius management team persisted with its focus on
restoring operational credibility at the Kroondal mine.  In this regard I am
pleased to report that both of the significant processes we committed to, being
the migration to owner operator and the implementation of the revised hanging
wall support regime, were completed on time and below budget. The
implementation of these two initiatives, combined with a focussed and motivated
work force at Kroondal contributed to Kroondal's production improving by 11%
relative to the pcp whilst unit costs only increased by 3%.  Given the macro
environment this was a pleasing performance which would not have been possible
without a motivated effort by the entire Kroondal work force.

At Mimosa the solid production performance continued, with the conclusion of
the indigenisation term sheet between Mimosa and the Government of Zimbabwe,
particularly pleasing.  The Mimosa management team is currently focused on
addressing the high cost inflation being experienced at Mimosa.

The satisfactory operational improvements notwithstanding, Aquarius remains
acutely aware that despite the improvements, the company continued to consume
cash during the period.  The metal price improvements and weakened Rand/Dollar
exchange rate in January 2013 combined with the fact that the once-off costs
associated with the two aforementioned processes and the closure of the
Marikana and Everest mines are now completed, is expected to substantially
reduce cash consumption and enable the company to start producing cash at mine
level.

From a PGM supply and demand perspective there seems to be consensus that both
platinum and palladium will move into primary supply deficit during 2013.
Whilst encouraging the increase in recycling, the continued depressed demand
from European auto producers and the substantial above ground inventories
renders significant further short term price increases unlikely.

In summary, despite the significant operational improvements delivered during
the period, cash generation at current spot prices remains constrained. It is
against this backdrop that Aquarius will continue to focus on operational
improvements and cash preservation whilst remaining committed to improving the
quality of life of the communities surrounding its operations.

Aquarius Group attributable production (PGM ounces) - twelve months to 31
December 2012

[See www.aquariusplatinum.com for graph]

Production

Total production from all Aquarius operations for the six months to December
2012 was 308,954 PGM ounces, representing a 20% decrease compared to the period
ended December 2011 (the previous corresponding period or "pcp").  Production
attributable to Aquarius fell by 27% to 156,787 PGM ounces for the period under
review when compared to the pcp following the Everest and Marikana mines being
placed on care and maintenance in May/June 2012.  Significantly, continuing
operating mines Kroondal and Mimosa recorded increased production compared to
the pcp of 11% and 5% respectively.  Gains recorded at Kroondal were
attributable to the move from contractor to owner operator and also the
successful implementation of a revised support system, both completed in the
December 2012 quarter.

Production by Mine and Attributable to Aquarius
                           Mine                  Attributable to Aquarius    


                                                                         
PGMs (4E)     Half-Year ended Half-Year ended Half-Year ended Half-Year ended 


                 Dec 2012        Dec 2011        Dec 2012                    
                                                                 Dec 2011    


                                                                         
Kroondal              194,598         175,704          97,299          87,852 
                                                                         
Marikana                    -          54,802               -          27,400 
                                                                         
Everest                     -          41,787               -          41,787 
                                                                         
Mimosa                109,093         104,254          54,547          52,127 
                                                                         
CTRP                      644           1,769             322             885 
                                                                         
Platinum Mile           4,619           6,415           4,619           5,402 
                                                                         
Total                 308,954         384,731         156,787         215,453 
                                                                          
The chart below illustrates the impact on production of each of the operations
demonstrating the lower production caused by the placing of Everest and
Marikana on care and maintenance and also the improved production recorded by
continuing mines Kroondal and Mimosa. The most significant factor is the
increased production recorded at Kroondal during what has been regretfully, one
of the most disrupted and hostile periods in the sector. AQPSA who manage the
Kroondal operations engaged extensively with its workforce, the local
communities and regulators to build a workable solution to the ongoing regional
industrial unrest.     
[See www.aquariusplatinum.com for chart] 
Rand Dollar Exchange Rate 
The average Rand-Dollar exchange rate weakened during the half-year, falling by
14% from R7.60 in the pcp to R8.65 to the US dollar.  Since then, it has
averaged 8.78 in the month of January.  
The average Rand basket price achieved for the half-year was marginally up at
R10,262 compared to R10,185 in the pcp. Rand weakness contributed to the Rand
basket price remaining stable compared to US Dollar prices which had decreased
10% from the corresponding period, December 2011, to $1,211.  Subsequent to the
end of the half-year, the PGM basket price has consolidated to average R11,347
per PGM ounce in January 2013. 
[See www.aquariusplatinum.com for graph] 
Market Summary 
The price of the PGM basket recovered strongly in the first half of the period
under review triggered by supply disruptions at South African platinum mines
from illegal strike action.  Market sentiment for the PGM basket in dollar
terms had improved because of deteriorating supply expectations, a consequence
of the ongoing and severe labour disruptions in SA which led to rising
expectations of shaft closures, project deferrals and increased costs.  At the
beginning of the second quarter the PGM Rand basket price continued to rise as
persistent illegal strikes triggered concerns for both future supply of PGMs
and how it will impact the overall South African economy.  The pessimism on
supply did not last long as the basket price peaked at R12,398 per oz in
mid-October (from a trough R9,525 per oz in mid-August) at which point the US$
dollar metal prices began to retreat. By the end of October, platinum and
palladium were both trading at two-month lows. PGM prices were supported by the
publication of Johnson Matthey's Platinum 2012 Interim Review highlighting a
global deficit in platinum as a result of reduced supply from South Africa and
a decline in open-loop recycling. However, resolutions to illegal strike
activity in the region, together with negative news surrounding the euro zone
economy and investor nervousness over the US fiscal cliff at the end of the
period weighed on PGM prices and resulted in a disappointing end to a difficult
six months. 
The average platinum price decreased by 6.1%, while palladium decreased by 8.5%
and rhodium decreased by 34.2% compared to the pcp. Gold reduced by 0.4% on
average. Platinum closed the half-year down 3.8% at $1,589 per ounce, while
palladium remained stable at $691 per ounce and rhodium fell by 38% to $1,040
over the same period. Gold fell 0.3% to $1,688 per ounce.  Subsequent to the
end of the current half-year under review, platinum has averaged $1,637 in
January, while palladium rose 2.75% to $711 and rhodium rose by 10% to $1,157
in the same period.  Gold fell 1% to $1,670 per ounce. 
[See www.aquariusplatinum.com for graph] 
Financial results: Half-Year to 31 December 2012 
Aquarius' consolidated result for the half-year ended 31 December 2012 was a
loss of $184 million (38.57 cents per share).  The result includes an
impairment charge of $127 million arising substantially from a review of the
carrying value of non-operating assets, namely Marikana, Ridge Mining, Platmile
and several mining rights. 
Profitability at mine level (on-mine EBITDA) was $22 million compared to $29
million in the previous corresponding period (pcp) due to challenging operating
conditions experienced at the Group's South African operations, increased
mining costs and lower PGM metal prices.  Decreasing metal prices caused a
negative sales adjustment to be incurred. 
Group attributable mine production for the half-year was 156,787 PGM ounces. 
This was 58,666 PGM ounces (27%) lower compared to the pcp due to the closure
of the Everest and Marikana mines. 
Revenue (PGM sales and interest) for the half-year to December 2011 was $179
million, 29% lower compared to the pcp due to lower production and lower PGM
metal prices.  The revenue received per PGM ounce for the half-year was $1,211,
down 10% from the pcp. 
Group Financials by Operation 
           Kroondal Marikana Everest Mimosa  Plat  CTRP   Blue             
Total  


                                                 Mile        Ridge              
     
                                                                                


 
PGM ounces                                                                       
 
(4E)            97,299     -        -    54,547 4,619   322    -              
156,787
(attributable)                                                                   


     
                                                                                
     


           Kroondal Marikana Everest Mimosa  Plat  CTRP   Blue  Corporate  
Total  


                                   $m      $m    Mile        Ridge     $m       
     


              $m       $m                     $m    $m     $m               
$m    
                                                                             
 
Revenue         106.5     0.5      0.6    63.6   5.0    0.3    -       2.6     
179.3  
                                                                             
 
Cost of sales                                                                    
 
- mining,                                                                        
 
processing &    (99.7)   (2.3)    (1.5)  (47.5) (3.8)  (0.4) (0.7)    (0.1)   
(156.1) 
                                                                             
 
Admin                                                                            


     
                                                                                


 
Cost of sales                                                                    
 
- depreciation                                                                   
 
&               (16.5)   (0.3)    (1.4)  (6.2)  (2.0)  (0.1) (0.1)      -     
(26.5)  
                                                                             
 
Amortisation                                                                     


     
                                                                                


 
Gross profit/   (9.6)    (2.0)    (2.3)   9.9   (0.8)  (0.2) (0.8)     2.5     
(3.3) 
(loss)                                                                           


     
                                                                                


 
Other income      -        -        -      -      -      -     -       0.1      
0.1   
                                                                             
 
Administrative    -        -        -      -      -      -     -      (7.2)    
(7.2) 
costs                                                                            


     
                                                                                


 
Foreign                                                                          
 
exchange gain/   1.4       -       0.1   (0.1)   0.4     -     -     (22.1)   
(20.3) 
(loss)                                                                           


     
                                                                                


 
Finance costs     -        -        -      -      -      -     -     (15.9)   
(15.9)  
                                                                             
 
Impairment        -      (18.8)     -      -    (10.0)       (13.6)  (85.1)   
(127.5)
losses                                                                           


     
                                                                                


 
Closure and                                                                      
 
transition      (3.3)    (2.7)   (11.0)    -      -      -     -        -     
(17.0) 
costs                                                                            


     
                                                                                


 
Community                                                                        
 
share             -        -        -    (1.5)    -      -     -        -      
(1.5) 
ownership                                                                        
 
trust                                                                            


     
                                                                                


 
Profit/(loss)                                                                    
 
before  income  (11.6)   (23.4)  (13.2)   8.3   (10.4) (0.2) (14.4)  (127.7)  
(192.6)
tax                                                                              


     
                                                                                


 
Income tax        -        -        -      -      -      -     -       8.3      
8.3  
benefit                                                                          


     
                                                                                


 
Net profit/                                                                      
 
(loss) from     (11.6)   (23.4)  (13.2)   8.3   (10.4) (0.2) (14.4)  (119.4)  
(184.3)
ordinary                                                                         
 
activities                                                                       


     
                                                                                
     
                                                                               

Group gross cash margin increased to 13% from 6% in the pcp due to the closure
of loss operating mines Marikana and Everest. 

Total cash cost of production was $156 million, down $80 million due to lower
production following the closure of high costs mines Marikana and Everest.  On
a per PGM ounce basis this represented a 9% decrease per ounce.  Finance costs
of $16 million included $9 million interest on convertible bonds and bank
borrowings, $5 million of non-cash interest arising from the unwinding of the
equity portion of the convertible bond and $2 million of non-cash interest
arising from the unwinding of the net present value of the rehabilitation
provisions of AQPSA.

During the half-year Aquarius recorded net foreign exchange losses of $20
million. 

The income tax benefit of $8 million includes $11 million movement in the
deferred tax credit offset by $2 million normal tax and $1 million withholding
tax.

The consolidated cash balance at period end was $83 million, a net decrease of
$97 million for the 6 months. Net cash of $38 million was used in operations
during the half-year.  The group paid $27 million to fund its capital
expenditure program, $24 million for closure of currency contracts and $9
million in interest.

Financials
                           Aquarius Platinum Limited                           
                         Consolidated Income Statement                         
                       Half-Year ended 31 December 2012                        
                                     $'000                                     
                                             Half-Year Ended        Year
                                                                   Ended
                                                                        
                                     Note   31/12/12  31/12/11  30/06/12


                                                                    
Attributable Production (PGM Ounces)       156,787   215,453   411,398   
                                                                    
Revenue                              (i)   179,262   252,381   485,736   
                                                                    
Cost of sales (including D&A)        (ii)  (182,578) (272,952) (531,169) 
                                                                    
Gross loss                                 (3,316)   (20,571)  (45,433)  
                                                                    
Other income                               106       1,108     2,076     
                                                                    
Administrative costs                 (iii) (7,218)   (7,394)   (11,950)  
                                                                    
Foreign exchange loss                (iv)  (20,309)  (91,289)  (95,001)  
                                                                    
Finance costs                         (v)  (15,887)  (17,583)  (34,674)  
                                                                    
Impairment losses                          (127,496) -         (3,983)   
                                                                    
Closure and transition costs               (17,004)  -         -         
                                                                    
Community share ownership trust            (1,500)   -         -         
                                                                    
Loss before income tax                     (192,624) (135,729) (188,965) 
                                                                    
Income tax benefit                   (vi)  8,332     22,237    30,678    
                                                                    
Net loss for the period                    (184,292) (113,492) (158,287) 
                                                                    
Non-controlling interests                  (456)     1         -         
                                                                    
Loss attributable to equity holders                                     
of                                         (183,836) (113,493) (158,287) 
                                                                    
Aquarius Platinum Limited                                                
                                                                    
Loss per share (basic - cents)               (38.57)   (24.31)   (33.77) 


                                                                        

Notes on the Consolidated Income Statement

Revenue decreased as a result of lower production and a 3% decrease in the US
Dollar PGM basket price compared to the pcp.

The 9% decrease in cost of sales on a unit cost basis reflects the closure of
high costs mines Marikana and Everest.

Relates to administration costs of the Aquarius Group inclusive of costs
associated with business development activities, legal and financial advisory
expenses.

Net foreign exchange (FX) loss includes a $24 million loss on currency
contracts, as well as gains/losses on cash, intercompany loans, pipeline
debtors and sales adjustments due to the movement of the Dollar against other
currencies.

Finance costs include $9 million interest on convertible bonds and bank
borrowings, $5 million of non-cash interest arising from the unwinding of the
equity portion of the convertible bond and $2 million in non-cash interest
arising from the unwinding of the net present value of the rehabilitation
provisions of AQPSA.

Income tax benefit includes an $11 million deferred tax credit offset by $2
million normal tax and $1 million withholding tax.
                           Aquarius Platinum Limited                           
                       Consolidated Cash Flow Statement                        
                       Half-year ended 31 December 2012                        
                                     $'000                                     
                                           Half-year ended   Year ended
                                                                       
                                    Note   31/12/12 31/12/11   30/06/12


                                                                   
Net operating cash (outflow)/inflow  (i)  (38,465)  24,948   26,356     
                                                                   
Net investing cash outflow          (ii)  (26,752)  (69,221) (120,079)  
                                                                   
Net financing cash outflow          (iii) (36,275)  (34,350) (34,525)   
                                                                   
Net decrease in cash held                 (101,492) (78,623) (128,248)  
                                                                   
Opening cash balance                      180,088   328,083  328,083    
                                                                   
Exchange rate movement on cash      (iv)  4,734     (19,333) (19,747)   
                                                                   
Closing cash balance                      83,330    230,127  180,088    


                                                                       

Notes on the Consolidated Cash Flow Statement

Net operating cash flow includes a $182 million inflow from sales, closure and
transition costs of $21 million, $199 million paid to suppliers, interest
income of $3 million and income tax paid of $3 million.

Reflects payments for property, plant & equipment and mine development costs 

Includes $24 million paid for closure of currency contract, $8 million interest
paid and $4 million repayment of borrowings

Reflects movement of other currencies against the Dollar.
                           Aquarius Platinum Limited                           
                          Consolidated Balance Sheet                           
                              At 31 December 2012                              
                                     $'000                                     
                                                    Half-year ended     Year   
                                                                        ended  
                                                                               
                                            Note   31/12/12  31/12/11  30/06/12


                                                                           
Assets                                                                          
                                                                           
Cash assets                                          83,330   230,127   180,088 
                                                                           
Current receivables                         (i)      79,565    92,857    87,100 
                                                                           
Other current assets                        (ii)     51,104    47,452    44,258 
                                                                           
Property, plant and equipment              (iii)    286,134   273,635   276,195 
                                                                           
Mining assets                               (iv)    300,432   434,883   437,574 
                                                                           
Other non-current assets                    (v)      88,245    87,759    88,093 
                                                                           
Intangibles                                 (vi)     73,755    90,560    87,882 
                                                                           
Total assets                                        962,565 1,257,273 1,201,190 
                                                                           
Liabilities                                                                     
                                                                           
Current liabilities                        (vii)     91,341   105,634   113,466 
                                                                           
Non-current payables                       (viii)     4,280     5,368     4,204 
                                                                           
Non-current interest-bearing liabilities    (ix)    265,101   259,408   265,526 
                                                                           
Other non-current liabilities               (x)     128,190   177,836   141,349 
                                                                           
Total liabilities                                   488,912   548,246   524,545 
                                                                           
Net assets                                          473,653   709,027   676,645 
                                                                           
Equity                                                                          
                                                                           
Issued capital                                       24,370    23,516    23,516 
                                                                           
Unissued shares                                           -         -     2,436 
                                                                           
Treasury shares                                    (27,433)  (18,169)  (18,128) 
                                                                           
Reserves                                            714,937   712,797   722,734 
                                                                           
Accumulated losses                                (244,031)  (15,461)  (60,195) 
                                                                           
Total equity attributable to equity                                            
holders                                             467,843   702,683   670,363 
                                                                           
of Aquarius Platinum Limited                                                    
                                                                           
Non-controlling interests                   (xi)      5,810     6,344     6,282 
                                                                           
Total equity                                        473,653   709,027   676,645 
                                                                            
Notes on the Consolidated Balance Sheet 
Reflects debtors receivable on PGM concentrate sales. 
Reflects PGM concentrate inventory, reef stockpiles and consumables stores. 
Represents plant and equipment within the Group. 
Mining assets relate to Kroondal, Marikana, Everest and Mimosa mine properties
and mine development. 
Includes the recoverable portion of rehabilitation provision from Anglo
Platinum of $11 million, receivable from the Reserve Bank of Zimbabwe (RBZ) of
$28 million, receivable from outside shareholders of Blue Ridge and Sheba's
Ridge of $25 million, investments in rehabilitation trusts of $18 million and
investments held for resale of $3 million. 
Includes intangibles relating to contract value acquired on the acquisition of
equity interest in Platinum Mile Resources (Pty) Ltd. 
Includes creditors and other payables of $46 million, DBSA and IDC loans at
Blue Ridge of $28 million, AQPSA equipment leases of $6 million, Mimosa bank
loans of $4 million and provisions of $6 million. 
Includes rehabilitation obligations on P&SA1 and P&SA2 structures. 
Includes convertible notes of $262 million and AQPSA equipment leases of $3
million. 
Includes deferred tax liabilities of $85 million and provision for closure
costs of $43 million. 
Minority interests reflects 8.3% outside equity interest of Platmile Resources
(Pty) Ltd. 
Operating Review Summary (all numbers on 100% basis) 
...
This section contains summarised operating reviews of each of the Company's
operations. Full operating statistics are provided on page 15 of this report. 
In addition, further detail on each of the operations can be obtained from the
quarterly and full-year reports released by the Company throughout the
financial year available on the Company's website, www.aquariusplatinum.com. 
AQUARIUS PLATINUM (SOUTH AFRICA) (PTY) LTD (Aquarius Platinum - 100%) 
P&SA 1 at Kroondal (Aquarius Platinum - 50%) 
12-month rolling average DIIR deteriorated to 1.39 per 200,000 man hours 
Production increased by 6% to 3,137,000 tonnes 
Head grade increased from 2.38 g/t to 2.45 g/t 
Recoveries improved slightly to 80% 
Volumes processed increased by 5% to 3,099,000 tonnes 
Stockpiles at the end of the period totalled approximately 75,000 tonnes 
PGM production increased by 11% to 194,598 PGM ounces 
Revenue increased by 28% to R1,804 million due to improved production and
basket price 
Mining cash costs increased by 8% to R546 per tonne, and costs per PGM ounce by
3% to R8,688 
Kroondal's cash margin for the period increased from -6% to 6% 
Commentary 
Safety, Health and Environment 
No fatalities occurred at Kroondal Mine during the period under review.  The
Disabling Injury Incident Rate deteriorated to 1.39 due mainly to the
uncertainty around the owner operate transition.  Currently the total Kroondal
Operation is standing at 1.2 million fatality-free shifts. 
Operations 
The transition from Contract mining to Owner Operate was successfully completed
during the period. The mine production after the introduction and the
implementation of the bolters and the change in the support regime has
increased and trending to steady state levels. 
Although there were visits from the inspectorate the number of section 54
stoppages reduced significantly during the period in review with only two
section 54 stoppages issued, one each at both Simunye and Kopaneng shafts
during this period under review prompted by accidents that operations
experienced. 
Some of the infrastructure improvement projects completed which have positively
contributed to the increase in production include a bunker, conveyor belt
infrastructure and raisebore holes to improve ventilation at various shafts. 
From an industrial relations perspective the period under review was an
extremely difficult time across the entire Rustenburg region with all mines
experiencing labour strikes in some form and significant levels of intimidation
occurred throughout the period. The impact on the Kroondal shafts was far less
than the surrounding mines due to the positive attitude shown by all our
employees. 
That being said, employees working at Kwezi went on strike at the start of the
period under review and more than 15 production days were lost in July. These
employees were dismissed and workers from Marikana 4 shaft  were transferred to
Kwezi. 
Marikana:  As disclosed previously, as a result of current low Rand PGM basket
prices, the mine and processing plant have been placed on care and maintenance
until further notice. 
Everest: As disclosed previously, as a result of current low Rand PGM basket
prices and unstable labour relations, the Everest mine has been placed on care
and maintenance until further notice. 
AQPSA Operating costs per ounce (R) 


          4E              6E                     6E net of by-products    
                                                                          
          (Pt+Pd+Rh+Au)   (Pt+Pd+Rh+Ir+Ru+Au)    (Ni&Cu)                  


                                                                      
Kroondal  8,688           7,131                  6,995                     


                                                                          

Capital expenditure (100% basis)
                                            Kroondal       


                                                       
 (R'000 unless otherwise stated)        Total     Per 4E oz 
                                                       
Ongoing Infrastructure Establishment  125,954           647 
                                                       
Project Capital (K6 shaft)             99,013           509 
                                                       
Mobile Equipment                       96,384           495 
                                                       
Total                                 321,350         1,651 


                                                           

Kroondal mine: reconciliation of cash costs per 4E ounce
                                                Cost  
                                               per 4E 
                                                ounce 
                                               (Rand) 
                                                      
                                                 HY1  


                                                  
Total operating expenditure                    10,633  
                                                  
Less:                                                  
                                                  
Ongoing capital expenditure & mobile equipment (1,142) 
                                                  
Project capex (K6 shaft)                       (509)   
                                                  
Transition costs                               (294)   
                                                  
On mine cash costs                             8,688   


                                                      

MIMOSA INVESTMENTS (Aquarius Platinum - 50%)


Mimosa Platinum Mine

12-month rolling average DIIR deteriorated 0.16 per 200,000 man hours

Production increased by 4% to 1,231,000 tonnes

Head grade improved by 1% to 3.67 g/t

Recoveries remained static at 78%

Volumes processed increased by 4% to 1,192,000 tonnes

Stockpiles at the end of the period totalled approximately 123,191 tonnes 

PGM production increased  by 5% to 109,093 PGM ounces

Revenue decreased by 13% to $127 million due to depressed metal prices

Mining cash costs increased by 18% to $79 per tonne and costs per PGM ounce by
17% to $863

Stay-in-business capital expenditure was $167 per PGM ounce for the period

Mimosa's cash margin for the period fell from 46% to 16% due to depressed metal
prices and increased costs.

Commentary

Safety, Health and Environment

No fatalities occurred at Mimosa during the period under review. The Disabling
Injury Incidence Rate remained low and stable.

Operations

Mimosa continued to operate at capacity during the period under review,
although some production disruption was caused in the latter months of the
half-year by power outages as well as surface electrical breakdowns.

Stay-in-business capital expenditure for the period amounted to $18 million.
Expenditure was mainly incurred in mobile equipment, Drill Rigs and LHD,
Conveyor belt extension, Down dip Development and Housing project.

Operating Cash Costs

The unacceptable 17% increase in unit costs at Mimosa was primarily the result
of $1.3 million in surface rentals, consumable inventory write-down of $2.2
million, the rebuilding of stockpiles following the fire of $1.4 million and
the increased usage of reagents of $1.0 million.  The stockpile rebuilding was
completed in December and the reagents will be fully depleted by the end of the
financial year.  Excluding the above items unit cost still rose by the expected
9% in line with inflation.

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   863              816                      561                         


                                                                              

Indigenisation and Economic Empowerment

Discussions on indigenisation were concluded in December 2012 and this
culminated in the signing of a term sheet on 14 December 2012.  The term sheet
sets out the key details of the indigenisation plan and paves the way for the
drafting of detailed agreements that will facilitate the implementation of the
plan.  It is envisaged that all agreements will be finalised by the end of
March 2013.

TAILINGS OPERATIONS

Platinum Mile (Aquarius Platinum - 91.7%) (consolidated - 100% attributable)

Material processed decreased by 40% to 1,519 tonnes

Head grade increased by 35% to 0.69 g/t

Recoveries decreased by 19% to 13%

Production decreased by 28% to 4,619 PGM ounces

Cash costs decreased by 10% to R6,305 per PGM ounce

Revenue was R41 million for the period

The cash margin for the period was 29%, up from 16% in the previous period
    Commentary
    CTRP

The operation remains on care and maintenance since 6 August 2012.
    Platinum Mile

During the half-year the results were significantly impacted by strikes at
Anglo Platinum in October and November.  For this reason the operation lost 13
production days in September and virtually the whole of October and November
2012.  The strikes continued into early December 2012 when production resumed
to normal. Whilst the results for the half-year were impacted by these strikes,
encouragingly a positive cash margin was achieved despite these trying
circumstances.  The recently announced restructure at Anglo Platinum is not
expected to materially impact the operations of Platinum Mile as it continues
to treat only tails from the Merensky concentrator. 
    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           9,658          9,173                 9,020                   
                                                                       
Platinum Mile  6,305          5,460                  4,889                  
                                                                        
[See www.aquariusplatinum.com for Statistical Information] 
Note: CTRP reported only for Q1 FY2013 
CORPORATE MATTERS 
Issue of Shares to Support Black Economic Empowerment (BEE) Partners 
As previously announced, in October 2012 the Company issued and allotted
14,000,000 fully paid common shares of US$0.05 at a price per share of 41.75
pence (A$0.64) as part of a transaction intended to preserve the black economic
empowerment ("BEE") credentials of Aquarius.  The Board of Aquarius resolved
that it was in the interests of Aquarius, and in line with its ongoing
commitment to comply with the BEE and regulatory framework in South Africa, to
assist the BEE Partners to preserve their remaining shareholding in Aquarius. 
The limited guarantee and pledge provided to the BEE Partners' financiers was
released in January 2013.  These shares are currently held as Treasury and
neither Aquarius' BEE partners nor their financiers have any further recourse
to these shares. 
Aquarius' full announcement released to the market on 4 October 2012 outlining
details of the transaction is available on Aquarius' website.  
Mimosa Indigenisation 
On 14 December 2012, Mimosa Investment Holdings ("Mimosa Investments"), which
is held jointly in a 50:50 partnership with Impala Platinum Holdings Limited,
concluded a term sheet in respect of a proposed indigenisation implementation
plan ("IIP") with the Government of Zimbabwe.  The term sheet provides for the
key terms, subject to certain conditions precedent, of the sale by Mimosa
Investments of an aggregate 51% equity ownership of Mimosa Holdings (Private)
Limited ("Mimosa Holdings") to indigenous parties for US$550 million (50%
attributable to Aquarius), based on an agreed fair market value for Mimosa
Holdings of US$1.078 billion.  
Mimosa Investments will provide a vendor loan funding mechanism to facilitate
the transaction which has a term of ten years. This loan will bear interest at
a rate of 9% annually and will be settled through the waiver of the right to
receive 90% of dividends due to the indigenous entities in favour of Mimosa
Investments. Any loan balance outstanding at the end of the ten-year period
will be payable in cash. 
Aquarius' full announcement of 14 December 2012 outlines details of the
indigenisation plan and is available on Aquarius' website. 
Potential acquisition of the Booysendal reserve 
The Company remains in communication with the Department of Mining and
Resources ("DMR") in South Africa in relation to the outstanding approval from
the DMR required to implement this transaction.  In the event of the approval
being granted before the end of April 2013 by which date the agreement lapses
the Company will advise shareholders accordingly. 
Aquarius' full announcement of 4 May 2011, outlines details of this transaction
and is available on Aquarius' website. 
Board Changes 
Mr Stuart Murray resigned as director and CEO of Aquarius and executive
chairman of AQPSA in October 2012. Mr Jean Nel was appointed Chief Executive
Officer of the Group on 5 November 2012 and Mr Zwelakhe Mankazana,
Non-executive Chairman of AQPSA.  Sir William Purves retired from the AQP Board
on 5 November 2012. 
Ms Sonja Sebotsa was appointed to the Board of Aquarius on 6 February 2013. 
Ms. Sebotsa was also appointed to the Board of Aquarius fully owned subsidiary
AQPSA and will assume the role of Chairman of AQPSA from acting AQPSA Chairman
Mr. Zwelakhe.  Mr Zwelakhe continues to serve as a non-executive director. 
Aquarius Platinum Limited
Incorporated in Bermuda 
Exempt company number 26290 
Board of Directors 
Nicholas Sibley    Non-executive Chairman                      
                                                          
Jean Nel           Chief Executive Officer                     
                                                          
David Dix          Non-executive                               
                                                          
Tim Freshwater     Non-executive (Senior Independent Director) 
                                                          
Edward Haslam      Non-executive                               
                                                          
Kofi Morna         Non-executive                               
                                                          
Zwelakhe Mankazana Non-executive                               
                                                          
Sonja Sebotsa      Non-executive                               
                                                           
Audit/Risk Committee 
David Dix (Chairman) 
Edward Haslam 
Kofi Morna 
Nicholas Sibley 
Remuneration Committee 
Edward Haslam (Chairman) 
David Dix 
Zwelakhe Mankazana 
Nicholas Sibley 
Nomination Committee 
Sonja Sebotsa (Chairman) 
Edward Haslam 
Tim Freshwater 
Kofi Morna 
Willi Boehm 
Company Secretary 
Willi Boehm 
AQPSA Management 
Jean Nel        Chief Executive Officer    
                                      
Robert Schroder Managing Director          
                                      
Graham Ferreira Finance Director           
                                      
Wessel Phumo    General Manager: Kroondal  
                                       
Mimosa Mine Management 
Winston Chitando   Managing Director                           
                                                          
Herbert Mashanyare Technical Director                          
                                                          
Peter Chimboza     Resident Director                           
                                                          
Fungai Makoni      General Manager Finance & Company Secretary 
                                                           
Platinum Mile Management 
Richard Atkinson Managing Director  
                               
Paul Swart       Financial Director 
                                
Issued Capital 
At 31 December 2012, the Company had on issue:  486,851,336 fully paid common
shares and 120,000 unlisted options.    
Substantial Shareholders 31 December 2012   Number of Shares  Percentage 
                                                                    
Chase Nominees Limited                         31,756,135        6.52    
                                                                    
JP Morgan Nominees Australia Limited           29,109,414        5.98    
                                                                    
HSBC Custody Nominees (Australia) Limited      26,873,642        5.52    
                                                                     
Primary        Australian Securities Exchange  Trading Information             
Listing:       (AQP.AX)                                                         
                                                                           
Premium        London Stock Exchange (AQP.L)   ISIN number BMG0440M1284        
Listing:                                                                        
                                                                           
Secondary      JSE Limited (AQP.ZA)            ADR ISIN number US03840M2089    
Listing:                                                                        


                                                                               
                                               Convertible Bond ISIN number    
                                               XS0470482067                    
                                                                               

Broker (LSE) (Joint)  Broker (ASX)         Sponsor (JSE)                  


                                                                      
Liberum Capital                                                           
Limited                                                                   
Ropemaker Place,                                                          
Level 12                                                                   
                                                                      
25 Ropemaker Street   Euroz Securities     Rand Merchant Bank              
                  Level 18 Alluvion    (A division of FirstRand Bank  
London, EC2Y 9LY      58 Mounts Bay Road,  Limited)                       
Telephone: +44 (0) 20 Perth WA 6000        1 Merchant Place               
3100 2000             Telephone: +61 (0) 8 Cnr  Fredman Drive & Rivonia    
                  9488 1400            Road Sandton 2196              
Bank of America                            South Africa                   
Merrill Lynch                                                             
2 King Edward St                                                          
London, EC1A 1HQ                                                          
Telephone: +44 (0)20                                                      
7628 1000                                                                  
                                                                       
Aquarius Platinum (South Africa) (Proprietary) Ltd 
100% Owned 
(Incorporated in the Republic of South Africa) 
Registration Number 2000/000341/07 
Unit 16, Berkley Office Park, 8 Bauhinia Street, Highveld Techno Park,
Centurion, Pretoria, South Africa
Postal Address:       PO Box 76575, Wendywood, 2144, South Africa 
Telephone:              +27 (0)12 001 2001 
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 6151, 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)12 001 2001 
In Australia 
Willi Boehm 
+61 (0) 8 9367 5211 
Glossary 
A$       Australian Dollar                                                      
                                                                           
Aquarius Aquarius Platinum Limited                                             
or AQP                                                                          
                                                                           
APS      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   United States Dollar                                                  
or $                                                                            
                                                                           
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 Limited                                                            
                                                                           
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                                
                                                                           
nm       Not measured                                                           
                                                                           
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                               
                                                                           
PlatMile Platinum Mile Resources (Pty) Ltd                                      
                                                                           
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                                                     
                                                                           
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.                 
                                                                           
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                                                                
                                                                            
END 
-0- Feb/08/2013 07:27 GMT
 
 
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