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  


                                                             Ridge              
    
                                                                                



PGM ounces                                                                       

(4E)            203,249        -       - 108,936 12,596  322     -         - 
325,103
(attributable)                                                                   


    
                                                                                
    
      $M                                                                        
    
                                                                                



Revenue             217        1       1     133     13    -     -         5    
 371 
                                                                             

Cost of Sales                                                                    

- mining,         (193)      (2)     (4)    (96)    (9)    -   (2)         -   
(307)
processing &                                                                     

admin                                                                            


    
                                                                                



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                                                                   


    
                                                                                



Foreign                                                                          

exchange gain/       12        -       -       -      1    -     -      (32)    
(19)
(loss)                                                                           


    
                                                                                



Finance costs         -        -       -       -      -    -     -      (31)    
(31) 
                                                                             

Impairment            -     (19)    (86)       -   (12)    -  (14)      (95)   
(226)
losses                                                                           


    
                                                                                



Closure and                                                                      

transition          (3)     (41)    (10)       -      -    -     -         -    
(55)
costs                                                                            


    
                                                                                



Community                                                                        

share                 -        -       -     (1)      -    -     -         -    
 (1)
ownership                                                                        

trust                                                                            


    
                                                                                



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)


                                                                  
Closure, transition                                                
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) 
          - cents)                                                
                                                                  
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 


                                                                 
Assets                                                                
                                                                 
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 
                                                                 
Liabilities                                                           
                                                                 
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 
                                                                 
Equity                                                                
                                                                 
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. 
Indigenisation 
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. 
Taxation 
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             
                                                                           
Capital expenditure 
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. 
CORPORATE MATTERS 
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                               
                                                               
Audit/Risk Committee 
David Dix (Chairman) 
Edward Haslam 
Tim Freshwater 
Kofi Morna 
Nicholas Sibley 
Remuneration/Succession Planning Committee 
Edward Haslam (Chairman) 
David Dix 
Zwelakhe Mankazana 
Nicholas Sibley 
Nomination Committee 
Sonja de Bruin Sebotsa (Chairman)
Edward Haslam
Tim Freshwater 
Kofi Morna 
Willi Boehm 
Company Secretary 
Willi Boehm 
AQPSA Management 
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 
100% Owned 
(Incorporated in Australia) 
ACN 094 425 555 
Level 4, Suite 5, South Shore Centre, 85 The Esplanade, South Perth WA 6151,
Australia 
Postal Address:          PO Box 485, South Perth WA 6951, Australia 
Telephone:                 +61 (0) 8 9367 5211 
Facsimile:                  +61 (0) 8 9367 5233 
Email:                        info@aquariusplatinum.com 
For further information please visit www.aquariusplatinum.com or contact: 
In the United Kingdom and South Africa: 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 
     DME                                                                    
                                                                           
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  


         Complex                                                               
                                                                               



END 
-0- Aug/08/2013 08:09 GMT
 
 
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