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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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