AQUARIUS PLATINUM LIMITED: Preliminary Full Year Results to 30 June 2013
AQUARIUS PLATINUM LIMITED: Preliminary Full Year Results to 30 June 2013 AQUARIUS PLATINUM LIMITED
Preliminary Full Year Results to 30 June 2013
Key Points: Financial
Mine EBITDA increased by 145% to $70 million (FY2012: $29 million)
Revenue decreased by 24% to $371 million (FY2012: $486 million)
Headline loss (before exceptional charges) of $61 million (FY2012: headline loss $154 million)
Reported net loss of $288 million (61.13 cents loss per share) after impairment losses of $226 million
Group cash balance at FY close of $103 million
No dividend declared
Key Points: Operational
Group attributable production, excluding operations on care and maintenance, increased by 13% to 325,103 PGM ounces for the full year
US Dollar PGM price weakened by 6%, offset in South Africa by weaker Rand-US Dollar exchange rate
Average Rand Basket Price up 7% year-on-year at just over R10,940 per PGM ounce due to Rand weakness.
Weighted average on-mine unit cash costs in South Africa decreased by 15% in Rand terms
Key Points: Strategic
Implementation of revised support system at Kroondal completed
Move to Owner Operator model at Kroondal completed
Focus on turnaround at Kroondal evidenced by improved operating results - Kroondal EBITDA up 12 fold compared to pcp
Kroondal mine life increased a further 3.5 years to 9.5 years following agreement with PSA1 partner Amplats.
All unprofitable operations have been placed on care and maintenance for the duration of the current downturn
Commenting on the results, Jean Nel, CEO of Aquarius Platinum said:
"The year under review was exceptionally challenging for Aquarius, a year in which we had to close loss-making mines, face disruptive industrial action, implement an owner-operator model at Kroondal and revise the hanging wall support regime. Further, we had to contend with on-going regulatory uncertainty in an environment in which metal prices continued to materially underperform consensus forecast.
That said, we have learnt much during these difficult times and have emerged as a leaner and more focussed business, fully intent on continuing the positive momentum into the new year. As we expect the difficult operating conditions and low metal prices to continue in the new financial year, our focus will remain on improving operational performance and cash generation."
Financial results: Year to 30 June 2013
Aquarius' consolidated result for the financial year ended 30 June 2013 was a loss of $288 million (61.13 cents per share) after an impairment charge of $226 million. On Mine EBITDA was $70 million, a 145% increase compared to the pcp.
Headline Earnings, Profit & Production Comparison by Half Year & Full Year (FY 2013 & 2012)
1st 2nd half half FY2013 FY2012 Movement FY 2013 FY 2013
Headline earnings/(loss) ($56M) ($5M) ($61M) ($154M) $93M
EBITDA $22M $48M $70M $29M $41M
Foreign exchange gain/(loss) ($20M) $1M ($19M) ($95M) $76M
Net loss after tax, before ($57M) ($5M) ($62M) ($154M) $92M impairment
Impairment ($127M) ($99M) ($226M) ($4M) ($222M)
Net loss after impairment and ($184M) ($104M) ($288M) ($158M) ($130M) tax
PGM ozs production (mines in 156,787 168,316 325,103 287,035 38,068 operation)
Production (mines on care & - - - 124,363 (124,363) maintenance)
Total production 156,787 168,316 325,103 411,398 (86,295)
Profitability at mine level (on-mine EBITDA) was $70 million, up 145% compared to $29 million in the pcp. The financial year's result was one of two contrasting half years. The first six months saw an EBITDA of $22 million recorded in spite of significant challenges encountered including the closure of Marikana and Everest, the transition to owner operated mining at Kroondal and the implementation of the revised support system. These factors not only required Management time but also consumed cash. This resulted in a net operating cash outflow for the half year to December 2012 of $38 million. In contrast, the second half of the financial year was one of consolidation of the gains achieved in the first half. The second half returned an EBITDA of $48 million, a 125% increase over the first six months due to higher production, lower operating costs and the conclusion of the issues referred to above. Net operating cash for the second six months was a net operating inflow of $60 million, a $98 million turnaround.
Revenue (PGM sales, interest) for the year was $371 million, down 24% from $486 million in the pcp. The decreased revenue was a result of lower production, down 86,295 PGM ounces from the pcp due to the closure of Everest and Marikana. Measured on a PGM ounce basis, revenue decreased to $1,230 per PGM ounce from $1,310 per PGM ounce in the pcp.
Total cash cost of sales was $307 million, down $158 million due to lower production following the closure of high costs mines Everest and Marikana. On a per PGM ounce basis this represented a 19% decrease in Dollar terms (and 15% in Rand terms) as a result of the closure of high costs mines, increased efficiencies gained from the successful implementation of the revised support system and the change to owner operated mine at Kroondal.
Group attributable production for the year was 325,103 PGM ounces, 21% lower compared to the pcp due to the closure of Everest and Marikana mines. Significantly, Aquarius' continuing mines exceeded last year's production. Kroondal recorded a 21% increase, Mimosa recorded a 3% increase and Platmile recorded a 1% decrease on a 100% basis. These were significant, particularly for Kroondal which was faced with a number of challenging issues and structural changes.
[See www.aquariusplatinum.com for graph]
Gross profit increased to $13 million from a gross loss of $45 million in the pcp, a $58 million turnaround due largely to the closure of high cost mines Everest and Marikana and improved operating performances across the group.
Average unit cash costs were significantly lower compared to the pcp due to the closure of high cost mines Everest and Marikana and improved production from on-going mines. In Dollar terms, average unit cash costs were $912 per 4E ounce, down 19% compared to pcp. The average cash cost per PGM ounce at the South African operations decreased by 15% to R8,242, equivalent to $936 per PGM ounce at the average Rand exchange rate for the year. The decrease in US dollar terms was 25%, as a result of a weaker Rand relative to the Dollar during the year. A 13% increase in PGM production in South Africa from operational mines also contributed to lower unit costs as the ability to spread fix production costs increased. In Zimbabwe the cash cost per PGM ounce was $867, a 13% increase. Increases in cash costs were driven by inflationary factors affecting inputs such as labour, steel, diesel, surface lease fees and certain once-off expenses including an inventory write off and stockpile build up costs following the May 2012 fire.
Exchange rate movements continued to have a volatile effect on earnings. The Rand weakened significantly over the 2013 financial year, starting the year at R8.15 to the US Dollar and ending it at R10.00, a 23% fall. The weakness in the Rand can be attributed in part to the expected tapering of Quantitative Easing that has been proposed by Federal Reserve Chairman, Ben Bernanke. This saw an outflow of capital from emerging markets and investors increasingly looking towards the US economy as a possible investment destination. The other part of the Rand weakness can be attributed to the structural problems in the South African economy. The labour issues in the mining sector also added to negative investor sentiment. The Rand averaged R8.80 to the US Dollar during the year, 14% weaker than the average of R7.74 recorded in the prior financial year.
During the year Aquarius recorded net foreign exchange losses of $19 million. This comprised gains of $15 million on sales adjustments at EBITDA level offset by a FX loss of $24 million arising on the closure of a currency contract taken out to fix the exchange rate covering the potential R1.2 billion purchase of Booysendal, and a FX loss of $10 million on pipeline advances.
Financial Year 2013: Rand US Dollar Exchange Rate
[See www.aquariusplatinum.com for graph]
Corporate administration expenses of $13 million were comparable to the prior period. Finance costs for the year of $31 million comprised $29 million on convertible notes and bank borrowings, and $2 million of non-cash interest arising from the unwinding of the net present value of the rehabilitation provisions of AQPSA. Amortisation and depreciation of $51 million was under budget in line with lower production.
Income tax benefit of $44 million comprises a $51 million deferred tax credit, offset by $4 million normal tax, $2 million withholding tax and $1 million royalties.
Group Financials by Operation
Kroondal Marikana Everest Mimosa PMR CTRP Blue Corporate Total
(4E) 203,249 - - 108,936 12,596 322 - - 325,103 (attributable)
Revenue 217 1 1 133 13 - - 5 371
Cost of Sales
- mining, (193) (2) (4) (96) (9) - (2) - (307) processing &
Cost of Sales
- depreciation (32) (1) (3) (12) (3) - - - (51) & amortisation
Gross profit/ (8) (2) (5) 25 - - (2) 5 13 (loss)
Corporate - - - - - - - (13) (13) administration
exchange gain/ 12 - - - 1 - - (32) (19) (loss)
Finance costs - - - - - - - (31) (31)
Impairment - (19) (86) - (12) - (14) (95) (226) losses
transition (3) (41) (10) - - - - - (55) costs
share - - - (1) - - - - (1) ownership
Profit before 1 (62) (101) 24 (11) - (16) (166) (332) income tax
Cash Balances Net operating cash flows for the year generated by the group's mining operations of $22 million were comparable to the pcp. Other cash flows included $54 million for mine development, $15 million refund of deposit paid on the Booysendal acquisition, $14 million interest paid, $24 million foreign exchange loss on currency contract and $10 million repayment of borrowings. Group cash balance at 30 June 2013 was $103 million representing a decrease of $77 million over the pcp, but a significant increase from the $83 million at half year end on 31 December 2012. Group Debt Group interest bearing debt (excluding pipeline advances) at 30 June 2013 of $300 million comprised $268 million convertible notes, $5 million AQPSA equipment leases and $27 million bank loans at subsidiary level. Impairment assessment of mines
An impairment charge of $226 million against the carrying value of the Group's mining assets was charged to the income statement. This comprised $127 million that was written off in the half-year to December 2012 and a further $99 million written off in the half-year to June 2013. Of the $99 million written off in the second half, $86 million relates to the Everest mine, $2 million to Platmile and $11 million to other mineral rights.
A summary of the impairment charges is set out below:
1st 2nd Asset half half FY2013
FY 2013 FY 2013
Afarak $84M - $84M
Everest - $86M $86M
Marikana $19M - $19M
Platmile $10M $2M $12M
Blue Ridge $13M - $13M
Other mineral $1M $11M $12M rights
Total $127M $99M $226M
Aquarius Platinum Limited Consolidated Income Statement Year ended 30 June 2013 $'000 Half year ended Year ended Note 30/06/13 31/12/12 30/06/13 30/06/12 Attributable Production (4E PGM 168,316 156,787 325,103 411,398 ounces) Revenue (i) 191,286 179,262 370,548 485,736 Cost of Sales (ii) (175,232) (182,578) (357,810) (531,169) (including D&A)
Gross profit/(loss) 16,054 (3,316) 12,738 (45,433)
Other income 172 106 278 2,076
Administrative costs (iii) (5,706) (7,218) (12,924) (11,950)
Foreign exchange loss (iv) 863 (20,309) (19,446) (95,001)
Finance costs (v) (14,930) (15,887) (30,817) (34,674) Impairment losses (vi) (98,470) (127,496) (225,966) (3,983)
and rehabilitation (vii) (37,534) (17,004) (54,538) -
costs Community share - (1,500) (1,500) - ownership trust
Profit/(loss) before (139,551) (192,624) (332,175) (188,965)
tax Income tax benefit (viii) 35,930 8,332 44,262 30,678 Net profit/(loss) (103,621) (184,292) (287,913) (158,287)
Loss per share (basic (22.56) (38.57) (61.13) (33.77)
Notes on the June 2013 Consolidated Income Statement
Sales revenue decrease reflects closure of Everest and Marikana mines and a low PGM basket price.
Aggregate cost of sales was lower due to the closure of Everest and Marikana mines. Group cash costs in unit costs per PGM ounce decreased by 19% in Dollar terms. In South Africa unit costs per PGM ounce decreased 25% in Dollar terms and 15% in Rand terms due to a 14% average decrease in the value of the Rand compared to the Dollar. Decreased unit costs reflected the closure of high costs mines Everest and Marikana.
Corporate administration costs are comparable to the prior period.
Foreign exchange loss of $19 million includes a $24 million loss arising on the closure of a currency contract taken out to fix the exchange rate covering the potential R1.2 billion purchase of Booysendal, a $15 million gain on adjusting revenue recorded at time of production at Kroondal, Marikana and CTRP to realised receipts received at the end of the four month pipeline and a $10 million loss on pipeline advances.
Finance costs of $31 million comprised interest of $29 million on convertible notes and bank borrowings and $2 million of non-cash interest arising from the unwinding of the net present value of the rehabilitation provisions of AQPSA.
Includes impairment charges for Everest, Marikana, Blue Ridge, Plat Mile and other mining rights.
Includes $14 million Everest and Marikana closure costs, $4 million Kroondal transition costs from contractor to owner operator and $37 million Marikana rehabilitation costs following a re-estimate of the rehabilitation liability.
Income tax benefit of $44 million comprises $51 million deferred tax credit, offset by $4 million normal tax, $2 million withholding tax and $1 million royalties.
Aquarius Platinum Limited Consolidated Cash flow Statement Year ended 30 June 2013 $'000
Half year ended Financial year ended
Note: 30/06/13 31/12/12 30/06/13 30/06/12
Net operating cash flow (i) 60,384 (38,465) 21,919 22,270
Net investing cash flow (ii) (11,817) (26,752) (38,569) (120,079)
Net financing cash flow (iii) (11,627) (36,275) (47,902) (30,439)
Net increase/(decrease) in cash held 36,940 (101,492) (64,552) (128,248)
Opening cash balance 83,330 180,088 180,088 328,083
Exchange rate movement on cash (iv) (17,338) 4,734 (12,604) (19,747)
Closing cash balance 102,932 83,330 102,932 180,088
Notes on the June 2013 Consolidated Cash flow Statement Net operating cash flow includes net inflow from operations $51 million, closure and transition costs $28 million, interest received $6 million and income tax paid $8 million. Net investing cash flow includes payments for mine development and development costs $54 million and refund of deposit on Booysendal acquisition $15 million. Net financing cash flow includes interest paid $14 million, foreign exchange loss on currency contract $24 million and repayment of borrowings $10 million. Exchange rate movement reflects movement of other currencies against the US Dollar. Aquarius Platinum Limited Consolidated Balance Sheet At 30 June 2013 $'000 Financial year ended Note: 30/06/13 30/06/12
Cash assets 102,932 180,088
Current receivables (i) 58,424 87,100
Other current assets (ii) 41,254 44,258
Property, plant and equipment (iii) 261,222 276,195
Mining assets (iv) 160,795 437,574
Other non-current assets (v) 80,845 88,093
Intangibles (vi) 59,449 87,882
Total assets 764,921 1,201,190
Current liabilities (vii) 78,037 113,466
Non-current payables (viii) 7,121 4,204
Non-current interest-bearing liabilities (ix) 268,788 265,526
Other non-current liabilities (x) 115,033 141,349
Total liabilities 468,979 524,545
Net assets 295,942 676,645
Issued capital 24,370 23,516
Unissued shares - 2,436
Treasury shares (26,526) (18,128)
Reserves 639,854 722,734
Accumulated losses (347,402) (60,195)
Non-controlling interests 5,646 6,282
Total equity 295,942 676,645
Notes on the June 2013 Consolidated Balance Sheet Reflects debtors receivable on PGM concentrate sales. Reflects PGM concentrate inventory, consumables, stores and critical spares. Represents fixed assets within the Group. Includes group's mining assets at Kroondal, Marikana, Mimosa, Everest, Blue Ridge, CTRP and Platmile. Includes recoverable portion of rehabilitation provision at P&SA sites of $10 million, cash contributed to Rehabilitation Trusts of $17 million, listed investments of $3 million and $29 million owed by the RBZ to Mimosa relating to the previous requirements to repatriate US Dollar proceeds on metals sales to the RBZ. Includes intangibles relating to acquisition of Platmile Resources. Includes trade creditors $46 million and Blue Ridge bank loans $25 million, which is not guaranteed by Aquarius . Reflects P&SA partners' right of recovery of rehabilitation provisions. Includes convertible notes of $268 million and AQPSA vehicle leases of $1 million. Reflects deferred tax liabilities of $38 million and provision for closure costs of $77 million. OPERATING REVIEW This section contains summarised operating reviews of each of the Company's operations. Full operating statistics are provided on page 15 of this report, and other updates relevant to all operations can be found under Corporate Matters on page 14. In addition, further detail on each of the operations can be obtained from the quarterly and half-yearly reports released by the Company throughout the 2013 financial year which are available on the Company's website, www.aquariusplatinum.com. AQUARIUS PLATINUM (SOUTH AFRICA) (PTY) LTD ("AQPSA") (Aquarius Platinum - 100%) P&SA 1 at Kroondal (Aquarius Platinum - 50%) 12-month rolling average DIIR improved to 1.14 per 200,000 man hours from 1.20 the previous year Production improved by 17% to 6.6m tonnes Volumes processed increased to 6.6m tonnes Head grade increased to 2.41 g/t Recoveries increased by 1% to 79% due to improved quality and improve plant stability PGM production increased by 21% to 406,497 PGM ounces Revenue increased by 39% to R3.8 billion compared to the previous financial year due improved production coupled with 6% improvement in the Rand basket price Mining cash costs decreased by 2% to R513 per tonne, and costs per PGM ounce by 5% to R8,343 Kroondal's cash margin for the period rose from -6% to 12% Commentary - Kroondal Safety, Health and Environment The Kroondal operations ended the year with slightly better DIIR compared to last year. The main contributor on safety has been low energy incidents that were encountered and were generally behaviour based. Another potential contributor was that employees' mind set were affected by the recurring industrial actions in the surrounding area. Regrettably, one fatality occurred at Kroondal during the year when a Rock Drill Operator Mr. Raohang Ramakhetha employed by Precrete, was struck by a fall of ground during the drilling operations of long anchor support. Operations Kroondal operations started the financial year being disrupted by the industrial action at Kwezi shaft which was an extension of labour unrest in the area. Subsequently industrial relations at Kroondal have improved significantly and Kroondal continues to improve quarter by quarter after this unfortunate incident.
During the year Kroondal operations completed the roll out of the revised support regime on all shafts with the exception of Bambanani shaft. This shaft will be completed during the 2014 financial year once equipment deliveries are completed.
The transition from contractor to owner operator was also completed this year on time and below budget. Encouragingly, employees have accepted the transition which is evidenced by the positive labour relations environment that prevailed at Kroondal during the time where the Rustenburg region underwent some of the worst industrial unrest the region has ever seen.
In June 2013 AQPSA also concluded one year wage agreements with its work force at Kroondal agreeing an increase slightly above inflation (6%) without the loss of a single production shift, a result which the Kroondal work force and the company is rightfully proud.
Operating Cash Costs Cash costs at Kroondal improved by 5% to R8,343 per 4E ounce mainly as a result of the increased volumes. AQPSA Operating costs per ounce (R/oz) 4E 6E 6E net of by-products (Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni&Cu)
Kroondal 8,343 6,851 6,700
AQPSA Capital expenditure Stay-in-business capital expenditure was in line with the mine plan and mobile equipment replacement schedule. The K6 Shaft project cost was approximately R172m for FY2013 and will require a further R88 million to complete the whole project in FY2014. Kroondal (100% basis)
(R'000 unless otherwise stated) Total Per 4E oz
Ongoing Infrastructure Establishment 227,861 561
Project Capital (K6 shaft) 172,579 425
Mobile Equipment 142,295 350
Total 542,735 1,336
P&SA2 at Marikana (Aquarius Platinum - 50%)
Given the continuing low Rand PGM basket prices, Marikana 4 shaft (the remaining operating shaft) and the processing plant at Marikana continue on care and maintenance until further notice.
Everest Mine Similarly the Everest mine remains on care and maintenance until further notice.
MIMOSA INVESTMENTS (Aquarius Platinum - 50%) Mimosa Platinum Mine 12-month rolling average DIIR improved to 0.05 per 200,000 man hours from 0.24 in the previous year Production increased by 7% to 2.412m tonnes Volumes processed increased by 2% to 2.381m tonnes Head grade improved slightly to 3.66g/t Recoveries increased slightly to 78% PGM production increased by 3% to 217,871 PGM ounces Revenue decreased by 7% to $266 million due to depressed metal prices Mining cash costs increased by 13% to $79 per tonne, PGM ounce cost increased by 13% to $867 Mimosa's cash margin for the period decreased to 26% from 46% Commentary Safety, Health and Environment No fatalities occurred at Mimosa during the year. Two lost-time injuries were reported with a commensurate improvement in the DIIR. Operations The Mimosa mine operated very well during the year, meeting most of its production targets. However, the Zimbabwean political and regulatory environment remained challenging for all mining companies operating in the country.
Discussions covering the draft minerals policy at Chamber of Mines level are ongoing.
A non-binding Indigenisation term sheet was signed on 14 December 2012. The term sheet sets out the key details of the indigenisation plan and paves way for the drafting of detailed agreements that will facilitate the implementation of the plan. No progress has been made beyond the term sheet signed and discussions on the way forward are still in progress.
The proposed new Income Tax Bill was gazetted in November 2012. The bill was presented to Parliament for the first reading in May 2013. It passed the second and third reading in Parliament on 25 June 2013 after amendments from all relevant stakeholders. The new bill is expected to become law effective 1 January 2014 once signed by the President.
The income tax rate has remained at 25% of taxable income, and withholding tax on technical fees and dividends at 15% and 10% respectively.
Operating Cash Costs
Operating costs increased by 13% from the pcp as a result of:
increased labour costs
increased surface rental fees of $1.3 million
stockpile build up costs following the fire that occurred in May 2012 of $1.4 million
above budget consumption of chemicals and reagents due to variability challenges in the quality of the fine depressant, $1.2 million
certain one off costs, including inventory write-off ($2.2 million)
Cash costs increased by 1% in the second half of the year to $870 per PGM ounce from $864 per PGM ounce in the first half despite the annual wage increase of 7.5% becoming effective in January 2013.
Operating cash costs per ounce ($/oz) 4E 6E 4E net of by-products (Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni, Cu & Co)
Mimosa 867 819 537
Stay In Business Capital expenditure at Mimosa was $32 million ($148 per PGM ounce), spent mainly on mobile equipment, drill rigs and LHDs, the conveyor belt extension, down dip development and housing projects.
TAILINGS OPERATIONS Platinum Mile (Aquarius Platinum - 91.7%) Material processed decreased by 28% to 3.446m tonnes Recoveries decreased by 13% to 14% Production decreased by 1% to 12,596 PGM ounces Cash costs increased by 2% to R6,606 per PGM ounce. Revenue increased by 18% to R118 million for the financial year The cash margin for the period was 25%, an increase from 13% the previous year Commentary Platinum Mile: The improved cash margin for the year was as a result of improved Rand basket prices and continuous focus and improvement of the fine grinding circuits at the operation.
The coarse grinding expansion at the operation is progressing within budget and should come into operation in the first quarter of 2014. The grinding expansion should yield an additional approximately 480 PGM ounces per month and the total capital cost for this expansion is expected to be around R20 million.
Operating cash costs per ounce (R/oz)
4E 6E 4E net of by-products (Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni, Cu& Co)
PMR 6,606 5,716 5,145
Chromite Tailings Retreatment Plant (CTRP) (Aquarius Platinum - 50%) This operation remains on care and maintenance.
Issue of Shares to Support Black Economic Empowerment (BEE) Partners
On 4 October 2012 the Company provided a limited guarantee and pledge to assist in preserving the black economic empowerment (BEE) credentials of Aquarius. This limited guarantee and pledge was released in January 2013. Following the decrease in the Aquarius share price during the second half of the financial year, Aquarius agreed to reinstate the limited guarantee and pledge provided to the BEE Partners' financiers for 10.2 million shares on identical terms and conditions. The Board of Aquarius considers that it is 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.
Booysendal Sale of Rights Agreement Lapses
The Company advised that the Sale Agreement concerning rights at Booysendal South entered into with Northam Platinum Limited and its subsidiaries lapsed. The condition precedent that Section 102 approval be granted by the Department of Mineral Resources prior to close of business on 30 April 2013 had not been fulfilled.
Extension of the Kroondal PSA
The Company reached agreement with a wholly owned subsidiary of Anglo American Platinum (Amplats) to extend the Kroondal PSA arrangement. The agreement increases Kroondal's life-of-mine by 3 years from 6.5 years to 9.5 years.
Wage agreements reached at Kroondal
Aquarius' wholly owned subsidiary, Aquarius Platinum (South Africa) (Proprietary) Limited concluded a wage agreement with the National Union of Mineworkers in relation to its members employed at the Kroondal mine. AQPSA also reached a wage agreement with Solidarity representing Kroondal's Cat A, skilled workforce. Both agreements came into effect from 1 July 2013 and will remain in place for one year.
The successful conclusion of the wage agreement is a significant positive development for the company, particularly in the difficult environment the platinum sector is currently experiencing. AQPSA is extremely proud of its workforce which continued to work uninterruptedly to maintain its operating performance throughout the negotiation process.
Mimosa Equity accounting FY2014
Following a change to the International Financial Reporting Standards 11 (IFRS11) governing the accounting for jointly controlled investments, Aquarius has commenced accounting for its investment in Mimosa and Ridge as an investment in an associate under the equity accounting method from 1 July 2013. This differs from the present approach whereby Aquarius proportionately consolidates its investment in Mimosa and Ridge. The equity method recognises the Group's share of net assets and contribution to profit and loss as single line items in the statement of financial position and statement of comprehensive income. This differs from the previous approach which included each line item such as revenue, cost of sales, expenses etc as part of the consolidated results. This change will not result in a change to the net assets of the Group.
Whilst Aquarius' after tax result remains identical under both reporting formats, it is important to note that Aquarius' reported cash position from July 2013 will now only reflect cash from controlled entities and will no longer include cash held in associate companies such as Mimosa and Ridge. Aquarius' net investment in Mimosa and Ridge will be disclosed in the balance sheet as "Investment in associates."
More information on all the corporate matters can be found at www.aquariusplatinum.com
[See www.aquariusplatinum.com for Statistical Information]
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 de Bruin Sebotsa Non-executive
David Dix (Chairman)
Remuneration/Succession Planning Committee
Edward Haslam (Chairman)
Sonja de Bruin Sebotsa (Chairman) Edward Haslam Tim Freshwater
Sonja de Bruin Sebotsa Non-executive Chairman
Robert Schroder Managing Director
Jean Nel Executive Director
Graham Ferreira Finance Director
Wessel Phumo General Manager: Kroondal
Mimosa Mine Management
Winston Chitando Chairman
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 30 June 2013, the Company had on issue: 486,851,336 fully paid common shares and 120,000 unlisted options. Substantial Shareholders 30 June 2013 Number of Shares Percentage
HSBC Custody Nominees (Australia) Limited 30,192,061 6.20
Chase Nominees Limited 29,419,456 6.04
JP Morgan Nominees Australia Limited 25,631,711 5.26
Main Listing: Australian Securities Exchange Trading Information (AQP.AX)
Secondary 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
Euroz Securities Rand Merchant Bank 25 Ropemaker Street, Level 18 Alluvion (A division of FirstRand Bank
58 Mounts Bay Road, Limited) London, EC2Y 9LY Perth WA 6000 1 Merchant Place Telephone: +44 (0) 20 Telephone: +61 (0) 8 Cnr of Rivonia Rd & Fredman 3100 2000 9488 1400 Drive, Sandton 2196
Johannesburg South Africa Barclays 5 The North Colonnade Canary Wharf London E14 4BB Tel: +44 (0) 20 7623 2323
Aquarius Platinum (South Africa) (Proprietary) Ltd 100% owned (Incorporated in the Republic of South Africa) Registration Number 2000/000341/07
1st Floor, Block C, Rosebank Office Park, 181 Jan Smuts Avenue, Rosebank, South Africa Postal Address: PO Box 7840, Centurion, 0046, South Africa
Telephone: +27 (0) 10 001 2848
Facsimile: +27 (0) 12 001 2070
Aquarius Platinum Corporate Services Pty Ltd
(Incorporated in Australia)
ACN 094 425 555
Level 4, Suite 5, South Shore Centre, 85 The Esplanade, South Perth WA 6151, Australia
Postal Address: PO Box 485, South Perth WA 6951, Australia
Telephone: +61 (0) 8 9367 5211
Facsimile: +61 (0) 8 9367 5233
For further information please visit www.aquariusplatinum.com or contact:
In the United Kingdom and South Africa: In Australia: Jean Nel +27 (0) 10 001 2848 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
Dollar United States Dollar or $
Everest Everest Platinum Mine
Great A PGE-bearing layer within the Great Dyke Complex in Zimbabwe Dyke Reef
GoZ Government of Zimbabwe
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 Johannesburg Stock Exchange
Kroondal Kroondal Platinum Mine or P&SA1 at Kroondal
LHD Load haul dump machine
LTIFR Lost Time Injury Frequency Rate
Marikana Marikana Platinum Mine or P&SA2 at Marikana
Mimosa Mimosa Mining Company (Private) Limited
NUM National Union of Mineworkers
nm Not measured
pcp previous corresponding period
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 PGMs as comprising (4E) Pt+Pd+Rh plus Au (gold) with Pt, Pd and Rh being the most economic
platinoids in the UG2 Reef
PlatMile Platinum Mile Resources (Pty) Ltd
PSA1 Pooling & Sharing Agreement between AQPSA and RPM Ltd on Kroondal
PSA2 Pooling & Sharing Agreement between AQPSA and RPM Ltd on Marikana
R or South African Rand Rand
Ridge Ridge Mining Limited
ROM Run of mine. The ore from mining which is fed to the concentrator
plant. This is usually a mixture of UG2 ore and waste.
RPM Rustenburg Platinum Mines Limited, a subsidiary of Anglo Platinum Limited Limited
Tonne 1 metric tonne (1,000kg)
TARP Trigger Action Response Procedure
UG2 Reef A PGE-bearing chromite layer within the Critical Zone of the Bushveld
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