AQUARIUS PLATINUM LIMITED: FInancial results for the six months ended 31 Dec 2013 Aquarius Platinum Limited Financial Results for the six months ended 31 December 2013 Key Points: Financial Revenue decreased by 2% to $113 million (H1 2013: $116 million) Mine operating net cash flow increased by $62 million to a $5 million inflow (H1 2013: outflow of $57 million) Mine EBITDA increased by 55% to $10 million (H1 2013: $6.5 million) Group cash balance at period end of $83 million Key Points: Operational Group attributable production increased by 7% to 168,014 PGM ounces (H1 2013: 156,787 PGM ounces) The average US Dollar PGM Basket Price was 5% lower compared to the previous corresponding period (pcp) December 2012 The average Rand Basket Price increased by 13% compared to the pcp due to a weaker Rand The Rand weakened by 19% on average against the US Dollar compared to the pcp On-mine unit cash costs in South Africa increased by 2% in Rand terms compared to the pcp Mimosa performed strongly again, continuing to produce at capacity but impacted by a low PGM Dollar price, with cash costs down 1% compared to the pcp Key Points: Strategic Kroondal exceeded 105,000 PGM ounces for 4 consecutive quarters - with a strong and focused team Disposal of non-core assets subsequent to half-year end Commenting on the results, Jean Nel, CEO of Aquarius Platinum said: Aquarius' performance during the period tells two very different stories, a credible operational performance and delivery on safety, production and cost improvements, wrapped in a very difficult macro environment, specifically regulatory, metal price and industrial relations environment. During the period under review Aquarius delivered on its stated focus of improving operational performance across all operations, including safety performance, production levels and unit cash costs. Despite many challenges Kroondal is now consistently producing at levels higher than at any time in its 10 year history, having recorded production in excess of 105,000 4E ounces for 4 consecutive quarters, whilst at the same time improving its safety performance and recording unit cash costs at levels similar to 24 months ago. Maintaining cost increase at below inflation levels for 2 years represents concrete delivery, which the operational team at Kroondal should be credited for. The dedicated and stable work force at Kroondal should also be commended for partnering with management to ensure continued uninterrupted production at Kroondal during the half-year. At Mimosa production continued to be in line with guidance whilst cash costs continue to reduce steadily in real terms. As is the case at Kroondal unit cash costs at Mimosa has increased at a rate well below inflation over the course of the last 2 years. Mimosa's best in class safety performance was also maintained during the period. Platinum Mile delivered a credible operational performance in the half-year, and would have outperformed significantly had it not suffered interruptions in its plant concentrate feed during Q2. Contrasting the credible operating performance is a challenging and complex macro environment. Our primary concerns in this regard include Dollar metal prices lower by 5% from the same time last year, despite the primary deficit in PGM metal markets during the 2013 calendar year which is forecast to increase in 2014. In addition, the prevailing regulatory uncertainty in South Africa and Zimbabwe and the precarious state of the South African industrial relations environment continue to make longer term production planning and capital allocation difficult. In summary Aquarius is well aware that the credible operational performance recorded in the half-year notwithstanding, no value was created for our shareholders, and that the company's shareholders is the only stakeholder which has not benefited from the company's activities during the period, and preceding periods. The company will resolutely persist in its pursuit to reverse this by focussing on continued improvements in safety, production and critically cash costs. Aquarius has commenced accounting for its investments in Mimosa and Blue Ridge using the equity accounting method from 1 July 2013. Financial results: Half-Year to 31 December 2013 Aquarius' consolidated result for the half-year ended 31 December 2013 was a loss of $24 million (5.11 cents per share). Profitability at mine level (on-mine EBITDA) was $10 million, up 55% compared to $6 million in the pcp. The half-year result reflects continued improvement of operational performance at all operating mines - be it in a difficult and lower PGM price environment. Total production from all Aquarius operations for the six months to December 2013 was 330,702 PGM ounces, representing a 7% increase compared to the half-year ended December 2012. Production attributable to Aquarius increased 7% to 168,014 PGM ounces for the half-year compared to the pcp. Headline Earnings, Profit & Production Half-Year Comparison (HY Dec 2013 & HY Dec 2012) HY Dec HY Dec Movement % 2013 2012 Change Headline earnings ($22M) ($56M) $34M 61% Mine EBITDA $10M $6M $4M 55% Impairment ($2M) ($115M) ($113M) 98% Net loss after tax ($24M) ($184M) $160M 87% PGM ozs production 168,014 156,787 11,227 7% Revenue $113M $116M ($3M) (2%) Average PGM basket price per ounce $1,138 $1,245 ($107) (9%) achieved Kroondal Cash cost per PGM ounce R8,849 R8,688 R161 2% before capex Mimosa Cash cost per PGM ounce $854 $863 ($9) (1%) before capex Revenue (PGM sales, interest) for the half-year to December 2013 was $113 million, 2% lower compared to the pcp due to lower PGM metal prices. The PGM basket price achieved for the half-year was $1,138 per PGM ounce, down 9% from the pcp. EBITDA margins improved at Kroondal on higher production but EBITDA margins were lower at Mimosa due to lower Dollar PGM basket prices. Total cash cost of production was $104 million, down $4 million despite an 11% increase in production at Kroondal and Platmile. Significantly, Kroondal recorded its fourth consecutive +105,000 PGM ounce production quarter, a record for the mine. This is particularly pleasing given the ongoing difficulties prevailing in the sector. On a per PGM ounce basis unit costs in South Africa decreased 14% to $870 but increased 2% in Rand terms due to the 19% decrease in the Rand. In Zimbabwe the cash cost per PGM ounce was $854, a 1% decrease. Operating costs were well within inflationary targets and will continue to be a point of focus particularly in the ongoing low metal price environment. Exchange rate movements continued to have a volatile effect on earnings. The Rand weakened significantly to average R10.06 to the US Dollar compared to R8.46 in the pcp. During the year Aquarius recorded net foreign exchange gains of $3 million comprising gains on sales adjustments. Administration costs were lower following cost reduction initiatives implemented. Depreciation and amortisation for the half-year of $17 million was lower despite increased production due to an increased resource base resulting from the extension of mine life of PSA1 at Kroondal. Finance costs for the half-year of $15 million included $12 million on convertible notes and bank borrowings (of which $5 million was non-cash representing the accretion of interest on the convertible note) and $3 million of non-cash interest arising from the unwinding of the net present value of the rehabilitation provisions of AQPSA. An impairment charge of $2 million relating to the Group's TKO assets was charged to the income statement. The income tax benefit of $3 million reflects the movement in the AQPSA deferred tax balance. Group Financials by Operation Kroondal Marikana Everest Mimosa Plat Total Mile PGM ounces (4E) 108,372 - - 54,317 5,325 168,014 (attributable) Reconciliation Segment to AQP Kroondal Marikana Everest Mimosa Plat Blue Corporate Result Consolidated $m Mile Ridge $m Group $m $m $m $m $m Information * $m $m $m Revenue 106 - 1 59 5 - 2 173 (59) 113 Cost of sales - mining, (95) (1) (4) (46) (4) (0.5) - (150) 46 (104) processing & administration Cost of sales - depreciation & (14) - (1) (6) (1) - - (23) 6 (17) amortisation Gross profit/ (4) (1) (4) 7 - (0.5) 2 - (7) (8) (loss) Administrative - - - - - - (4) (4) - (4) costs Foreign exchange gain/ 3 - - - - - (1) 3 - 3 (loss) Finance costs - - - - - - (17) (17) 2 (15) Impairment - - - - - - (2) (2) - (2) losses Community share - - - (0.5) - - - (0.5) 0.5 - ownership trust Indigenisation - - - (2) - - - (2) 2 - costs Share of profit/(loss) from joint - - - - - - - - 0.2 0.2 venture entities Profit/(loss) before income - (1) (4) 5 - (0.5) (23) (24) (3) (27) tax Income tax benefit - 3 3 Net profit/(loss) from ordinary activities (24) - (24) * In the consolidated financial statements the Mimosa and Blue Ridge operating segments are accounted for using the equity method. The column titled "Reconciliation to Consolidated Information" provides a reconciliation of the segment information used by the CEO to the consolidated financial information. The consolidated cash balance at period end was $83 million, a net increase of $5 million. A key indicator to the improved performance of Aquarius' South African assets is the $62 million turnaround in net cash flows from operating activities from a deficit of $57 million in the pcp to a surplus of $5 million in this half-year. The group paid $11 million to fund its capital expenditure program, paid $7 million in interest and received $18 million of dividends from Mimosa. Joint venture entities Mimosa Investments Limited Mimosa recorded an EBITDA profit attributable to Aquarius of $14 million and a net profit before tax of $5 million for the half-year. The result was achieved on production of 54,317 PGM ounces attributable to Aquarius. Despite consistent production, EBITDA was lower than expected due to lower Dollar metal prices. Unlike Kroondal which benefits when the Rand weakens against the Dollar, Mimosa has no such relief. Mimosa's PGM basket price for the half year was $1,127 per PGM ounce, 7% lower compared to the pcp. Unit cash costs for the half-year were 1% lower at $854 per PGM ounce. Cash held in Mimosa at 31 December was $10 million (100%). Subsequent to the end of the half-year Mimosa paid out a dividend of $4 million, 50% of which is attributable to Aquarius. Mimosa's financial result is provided in the Group Financials table on page 3 and its operational performance is discussed under the Operating Review section of this announcement. Blue Ridge Platinum (Pty) Ltd Blue Ridge recorded a net loss after tax of $2 million for the half-year. The result reflects care and maintenance and interest costs for the half-year. Change in accounting policy IFRS 11 Joint Arrangements Following a change to International Financial Reporting Standard 11 (IFRS11) governing the accounting for jointly controlled investments, Aquarius has commenced accounting for its investments in Mimosa and Blue Ridge using the equity accounting method from 1 July 2013. This differs from the previous approach whereby Aquarius proportionately consolidated its investments 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 has not resulted in a change to the net assets of the Group. Aquarius Platinum Limited Consolidated Income Statement Half-Year ended 31 December 2013 $'000 Half-Year Ended Year Ended Note 31/12/13 31/12/12 30/06/13 Attributable Production (PGM Ounces) 168,014 156,787 325,103 Revenue (i) 113,173 115,671 237,115 Cost of sales (including D&A) (ii) (120,751) (128,297) (248,308) Gross loss (7,578) (12,626) (11,193) Other income 72 100 278 Administrative costs (iii) (4,336) (7,143) (12,786) Foreign exchange gain/(loss) (iv) 2,731 (20,188) (19,322) Finance costs (v) (15,295) (12,507) (24,365) Impairment losses (2,487) (114,535) (214,111) Loss on sale of assets (31) - - Closure and transition costs - (17,004) (54,538) Share of profit/(loss) from joint 166 (12,229) (5,003) venture entities Loss before income tax (26,758) (196,132) (341,040) Income tax benefit (vi) 2,730 11,840 53,127 Net loss for the period (24,028) (184,292) (287,913) Non-controlling interests 12 (456) (706) Loss attributable to equity holders of (24,040) (183,836) (287,207) Aquarius Platinum Limited Loss per share (basic - cents) (5.11) (38.57) (61.13) Notes on the Consolidated Income Statement Revenue decreased by 2% compared to the pcp despite increased production due to a 5% decrease in the PGM basket price achieved. Cost of sales are lower due to the 19% weakening of the Rand compared to the pcp. In Rand terms unit costs increased 2% per PGM ounce in South Africa. Relates to administration costs of the Aquarius Group inclusive of costs associated with business development activities, legal and financial advisory. Foreign exchange includes gains/losses on cash, intercompany loans, pipeline debtors and sales adjustments due to the movement of the Dollar against other currencies. Finance costs include $7 million interest on convertible bonds and bank borrowings, $5 million of non-cash interest arising from the unwinding of the equity portion of the convertible bond and $3 million in non-cash interest arising from the unwinding of the net present value of the rehabilitation provisions of AQPSA. Income tax benefit reflects movement in the South African deferred tax balance. Aquarius Platinum Limited Consolidated Cash Flow Statement Half-year ended 31 December 2013 $'000 Half-year ended Year ended Note 31/12/13 31/12/12 30/06/13 Net operating cash inflow/(outflow) (i) 4,706 (57,036) (21,449) Net investing cash outflow (ii) (10,989) (16,300) (20,629) Net financing cash inflow/(outflow) (iii) 9,912 (30,725) (34,363) Net increase/(decrease) in cash held 3,629 (104,061) (76,441) Opening cash balance 77,773 166,652 166,652 Exchange rate movement on cash (iv) 1,596 4,734 (12,438) Closing cash balance 82,998 67,325 77,773 Notes on the Consolidated Cash Flow Statement Net operating cash flow includes a $128 million inflow from sales, $126 million paid to suppliers and interest received of $3 million. Reflects payments for property, plant & equipment and mine development costs. Includes $7 million interest paid, $2 million repayment of borrowings and $18 million dividends from Mimosa. Reflects movement of other currencies against the Dollar. Aquarius Platinum Limited Consolidated Balance Sheet At 31 December 2013 $'000 Half-year ended Year ended Note 31/12/13 31/12/12 30/06/13 Assets Cash assets 82,998 67,325 77,773 Current receivables (i) 22,901 50,846 33,965 Other current assets (ii) 16,704 20,764 16,181 Property, plant and equipment (iii) 98,008 126,869 105,030 Mining assets (iv) 113,016 257,679 121,694 Intangible asset (v) 55,696 73,755 59,449 Investments in joint venture entities (vi) 204,817 228,321 223,643 Other non-current assets (vii) 67,085 54,807 66,203 Total assets 661,225 880,366 703,938 Liabilities Current liabilities (viii) 35,822 49,965 43,109 Non-current interest-bearing liabilities (ix) 274,194 265,101 268,788 Other non-current liabilities (x) 93,466 91,647 96,099 Total liabilities 403,482 406,713 407,996 Net assets 257,743 473,653 295,942 Equity Issued capital 24,408 24,370 24,370 Treasury shares (27,331) (27,433) (26,526) Reserves 626,417 714,937 639,854 Accumulated losses (371,442) (244,031) (347,402) Total equity attributable to equity holders 252,052 467,843 290,296 of Aquarius Platinum Limited Non-controlling interests (xi) 5,691 5,810 5,646 Total equity 257,743 473,653 295,942 Notes on the Consolidated Balance Sheet Reflects debtors receivable on PGM concentrate sales. Reflects PGM concentrate inventory, reef stockpiles and consumables stores. Represents plant and equipment within the Group. Mining assets relate to Kroondal, Marikana and Everest mine properties and mine development. Includes intangibles relating to contract value acquired on the acquisition of equity interest in Platinum Mile Resources (Pty) Ltd. Reflects investments in joint venture entities, Mimosa and Blue Ridge. Includes the recoverable portion of rehabilitation provision from Anglo Platinum of $10 million, receivable from outside shareholders of Blue Ridge and Sheba's Ridge of $23 million, investments in rehabilitation trusts of $16 million and AQPSA deferred tax asset of $18 million. Includes creditors and other payables of $29 million, AQPSA equipment leases of $2 million and provisions of $4 million. Represents the 4% convertible notes due December 2015. Includes deferred tax liabilities of $17 million, provision for closure costs of $73 million and rehabilitation obligations on P&SA1 and P&SA2 structures of $3 million. Non-controlling interests reflects the 8.3% outside equity interest of Platmile Resources (Pty) Ltd. Operating Review Summary (all numbers on 100% basis) This section contains summarised operating reviews of each of the Company's operations. Full operating statistics are provided on page 13 of this report. In addition, further detail on each of the operations can be obtained from the quarterly and full-year reports released by the Company throughout the financial year available on the Company's website, www.aquariusplatinum.com. AQUARIUS PLATINUM (SOUTH AFRICA) (PTY) LTD (Aquarius Platinum - 100%) P&SA 1 at Kroondal (Aquarius Platinum - 50%) 12-month rolling average DIIR improved to 0.99 per 200,000 man hours Production increased by 19% to 3,718,000 tonnes Head grade deteriorated from 2.45 g/t to 2.40 g/t Recoveries reduced to 78% Volumes processed increased by 16% to 3,590,000 tonnes Stockpiles at the end of the period totalled approximately 147,000 tonnes PGM production increased by 11% to 216,744 PGM ounces Revenue increased by 18% to R2,124 million due to improved production and the Rand basket price Mining cash costs decreased by 2% to R534 per tonne, and costs per PGM ounce increased by 2% to R8,849 Kroondal's cash margin for the period increased from 6% to 10% Commentary Safety, Health and Environment At Kroondal the Disabling Injury Incident Rate improved slightly to 0.99. This is a primary focus point for the management team and as such a safety programme was launched on 27 September 2013 and attended by all the Kroondal employees. The purpose was to re-energise safety awareness and introduced the theme of the new safety strategy being "My Life, My responsibility, I will comply". This theme followed an analysis of incidents and accidents which indicated that people were not complying with standards and procedures. The launch was also attended by the Principal Inspector (who gave a short address) and two Senior Inspectors from the DMR. Operations Five section 54 stoppages were issued by the inspectorate during the period in review, one in the first quarter and four in the second quarter. The head grade deteriorated during Q1 as a result of mining at Bambanani through the shear zone where all panels had to traverse through it simultaneously. Kwezi encountered a dramatic increase of IRUP ore as well as encountering a weak zone and the prevalence of initial potholes at K6 was also unforeseen. The coaching of the mining teams by the BI (Business Initiative) team continued during the period. Kwezi had challenges during the past six months pertaining to the ground conditions where, after consideration of our ground control district, the size of the boards were reduced to 6m x 6m from a traditional 10m x10m boards. K6 is steadily starting to contribute to the production of Kroondal however the build-up was disrupted in the period in review due to the high incidents of potholes. A drilling programme is in place to increase our detailed geological understanding and the extent of these geological fissures. The second chairlift at Simunye has been completed and commissioned and this will help in alleviating the problems associated with shifts times. The second chairlift and underground workshop at Kopaneng and the underground workshop at Simunye are expected to be finished in the third quarter. At the concentrators the recoveries deteriorated due to the iron-rich ultramafic pegmatite (IRUP) ore from Kwezi. After extensive laboratory testing, the plants have resorted to tighter control on how the ores are fed through the plant in order to get the best optimum blend and increase retention time where possible. The other focus is the constant monitoring of mass pulls at the plants to increase recoveries from the IRUP ore which have slow floating characteristics. Marikana There has been no change to Marikana operations which remain on care and maintenance until further notice. Everest There has been no change to Everest operations which remain on care and maintenance until further notice. AQPSA Operating costs per ounce (R) 4E 6E 6E net of by-products (Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni&Cu) Kroondal 8,849 7,267 7,068 Capital expenditure (100% basis) Kroondal (R'000 unless otherwise stated) Total Per 4E oz Ongoing Infrastructure Establishment 139,298 643 Project Capital (K6 shaft) 48,162 222 Mobile Equipment 34,172 158 Total 221,632 1,023 Kroondal mine: reconciliation of cash costs per 4E ounce Cost per 4E ounce (Rand) HY1 Total operating expenditure 10,091 Less: Ongoing capital expenditure & mobile equipment (800) Project capex (K6 shaft) (222) Transferred to stockpile (220) On mine cash costs 8,849 MIMOSA INVESTMENTS (Aquarius Platinum - 50%) Mimosa Platinum Mine 12-month rolling average DIIR at 0.05 per 200,000 man hours was an improvement from 0.16 recorded the previous half year. Production increased by 2% to 1,255,000 tonnes Head grade decreased by 1% to 3.64 g/t Recoveries remained at 77% Volumes processed increased by 4% to 1,235,000 tonnes Stockpiles at the end of the period were approximately 135,573 tonnes PGM production slightly decreased to 108,633 PGM ounces as a result of assay adjustments Revenue decreased by 9% to $116 million due to depressed metal prices Mining cash costs decreased by 5% to $75 per tonne and costs per PGM ounce by 1% to $854 Stay-in-business capital expenditure was $141 per PGM ounce for the period Mimosa's cash margin for the period increased from 16% to 18% due to decreased costs and increased production. Commentary Safety, Health and Environment No fatalities occurred at Mimosa during the period under review. The Disabling Injury Incidence Rate at 0.05 per 200,000 man hours was a great improvement as compared to the previous half year 12-month rolling average of 0.16. Operations Mimosa mine continues to operate well, despite cost pressures which have increased in recent quarters. The Mimosa management team has identified a number of cost saving initiatives which are currently being implemented. Capital expenditure Total stay-in-business capital expenditure for the period amounted to $15 million, in line with guidance. Expenditure was mainly incurred in mobile equipment, Drill Rigs and LHD, Conveyor belt extension, and down dip Development. Operating cash costs Unit cash cost per PGM ounce at $854 per PGM ounce (before by-product credits) was 1% lower than the previous period as a result of various cost reduction initiatives being implemented by management. Operating cash costs per ounce 4E 6E 4E net of by-products (Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni, Cu & Co) Mimosa 854 807 582 TAILINGS OPERATIONS Platinum Mile (Aquarius Platinum - 91.7%) Material processed increased 43% to 2,133 tonnes Head grade decreased by 1% to 0.68 g/t Recoveries decreased by 15% to 11% Production increased by 15% to 5,325 PGM ounces Cash costs increased by 8% to R6,830 per PGM ounce Revenue was R47 million for the period The cash margin for the period was 22%, down from 29% in the pcp Commentary CTRP The operation remains on care and maintenance since 6 August 2012. Platinum Mile The results for the half year were negatively impacted by strikes at Anglo Platinum during the month of October and the Christmas break in operations. A total of 21 production days were lost for these reasons. The recently announced restructure at Anglo Platinum has impacted directly on the operations. As a result of the recent restructuring at Anglo, Platinum Mile has resumed treating UG2 material that has traditionally provided lower recoveries at higher chrome levels. It is expected that the course grinding expansion due to be commissioned by the end of the third quarter of this financial year will replace the lost yields resulting from the Anglo Platinum restructuring. Whilst the results for the half-year were impacted by the Anglo Platinum strikes and restructuring, encouragingly a positive cash margin was achieved. At the time of writing this commentary Anglo Platinum operations were halted by a strike that started on 23 January 2014. This will negatively impact production for the first quarter of 2014 and delay the completion and commissioning of the coarse grinding expansion. Operating cash costs per ounce 4E 6E 4E net of by-products (Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni, Cu& Co) CTRP Platinum Mile 6,830 5,919 5,363 See www.aquariusplatinum.com for statistical information CORPORATE MATTERS Mimosa Indigenisation On 14 December 2012, Mimosa Investment Holdings ("Mimosa Investments"), which is held jointly in a 50:50 partnership with Impala Platinum Holdings Limited, concluded a non binding term sheet in respect of a proposed indigenisation implementation plan ("IIP") with the Government of Zimbabwe. The term sheet provided for, subject to certain conditions precedent, of the sale by Mimosa Investments of an aggregate 51% equity ownership of Mimosa Holdings (Private) Limited ("Mimosa Holdings"), the wholly owned operating subsidiary of Mimosa Investments which owns and manages the Mimosa mine. During the course of 2013 the Government of Zimbabwe indicated to Mimosa, and to the other platinum producers in Zimbabwe who concluded similar transactions, that it was no longer supportive of the term sheets. Following the national elections held in Zimbabwe in August 2013 a new Minister of Indigenisation was appointed. Mimosa has had frequent interaction with the Ministry, but to date no agreements or definitive terms have been agreed by Mimosa, or indeed any other platinum producer in Zimbabwe. As a result, the matter is ongoing and management is unable to estimate the financial impact of the proposed transaction. Zimbabwean budget update Aquarius has noted amendments contained in the proposed Zimbabwean national budget for 2014 which, if implemented, will negatively impact the company. These include royalties which is proposed will be non-deductible for income tax purposes (currently deductible) and an export tax on un-beneficiated platinum. The implementation of further taxes would have a significant negative impact on the profitability and cash flows of the entire Zimbabwean platinum sector, particularly in the current low price environment. Mimosa management in consultation with the Zimbabwe Chamber of Mines will continue to engage with the Government of Zimbabwe in an effort to clarify the proposed changes to the fiscal regime, acknowledging that Aquarius and Mimosa share the vision of a growing platinum mining sector with the Government of Zimbabwe. Subsequent events Sale of Kruidfontein prospecting rights On 29 January 2014, Aquarius agreed terms to dispose of 100% of C&L Mining and Resources (Pty) Limited (C&L), which holds the Kruidfontein prospecting right, to Pilanesberg Platinum Mines (Pty) Ltd, a subsidiary of Sedibelo Platinum Mines Limited (previously Platmin Limited). The total sale consideration is $30 million in cash. The material asset of C&L is a prospecting right known as Kruidfontein in which C&L has a 90% economic benefit. The sale is conditional on renewal of the prospecting right and the approval in terms of Section 11 of the Mineral and Petroleum Resources Development Act 28 of 2002. Upon completion of the sale, Aquarius will receive $16.2 million (before tax) in consideration for its economic interest in the prospecting right with the remaining $10.8 million (before tax) due to the original vendors of the right. In terms of an agreement with the original vendors of the Kruidfontein prospecting right, Aquarius may elect to retain the remaining $10.8 million (less any tax payable), in return for an issue of shares in Aquarius, of same value, at the time the sale becomes unconditional, resulting in net cash inflows of $27 million (before tax) for Aquarius. Apart from the cash received, the financial impact of the sale has not yet been determined. Sale of Blue Ridge & Sheba's Ridge On 29 January 2014, Aquarius agreed terms to dispose of its indirect interests in Blue Ridge Platinum (Pty) Ltd and Sheba's Ridge Platinum (Pty) Ltd to a consortium led by the China National Arts & Crafts (Group) Corporation for a total consideration of $37 million in cash, of which $4.3 million will be lent and advanced by Ridge Mining (Pty) Ltd to Blue Ridge for a period of 2 years from the closing date, being the date on which the last condition precedent to the sale agreement will be fulfilled. The sale agreement is subject to a number of conditions precedent, primarily Chinese Government approvals, South Africa Competition Commission approval and a number of DMR regulatory approvals. The outside date for the fulfilment of the conditions precedent has been fixed at 30 June 2014, but may be extended if required, by agreement between the parties. Apart from the cash received, the financial impact of the sale has not yet been determined. 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 Bruyn Sebotsa Non-executive Audit/Risk Committee David Dix (Chairman) Edward Haslam Tim Freshwater Kofi Morna Nicholas Sibley Remuneration Committee Edward Haslam (Chairman) David Dix Zwelakhe Mankazana Nicholas Sibley Nomination Committee Sonja de Bruyn Sebotsa (Chairman) Edward Haslam Tim Freshwater Kofi Morna Willi Boehm Company Secretary Willi Boehm AQPSA Management 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 Managing Director Platinum Mile Management Richard Atkinson Managing Director Paul Swart Financial Director Issued Capital At 31 December 2013, the Company had on issue: 487,605,536 fully paid common shares. Substantial Shareholders 31 December 2013 Number of Shares Percentage Wellington Management Company 40,593,492 8.33 The Capital Group of Companies 37,117,112 7.61 HSBC Custody Nominees (Australia) Limited 32,262,154 6.62 Primary Australian Securities Exchange Trading Information Listing: (AQP.AX) Premium London Stock Exchange (AQP.L) ISIN number BMG0440M1284 Listing: Secondary JSE Limited (AQP.ZA) ADR ISIN number US03840M2089 Listing: Convertible Bond ISIN number XS0470482067 Broker (LSE) (Joint) Broker (ASX) Sponsor (JSE) Liberum Capital Euroz Securities Limited Level 18 Alluvion Ropemaker Place, 58 Mounts Bay Road, Level 12 Perth WA 6000 Telephone: +61 (0) 8 25 Ropemaker Street, 9488 1400 London EC2Y 9LY Telephone: +44 (0) 20 3100 2000 Rand Merchant Bank (A division of FirstRand Bank Barclays Limited) 1 Merchant Place 5 The North Cnr of Rivonia Rd and Fredman Colonnade Drive, Sandton 2196 Johannesburg South Africa Canary Wharf London E14 4BB Tel: +44 (0) 20 7623 2323 Telephone: +44 (0)20 7628 1000 Aquarius Platinum (South Africa) (Proprietary) Ltd 100% Owned (Incorporated in the Republic of South Africa) Registration Number 2000/000341/07 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 6151, Australia Telephone: +61 (0)8 9367 5211 Facsimile: +61 (0)8 9367 5233 Email: firstname.lastname@example.org 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 g/t Grams per tonne, measurement unit of grade (1g/t = 1 part per million) JORC Australasian code for reporting of Mineral Resources and Ore Reserves code JSE JSE Limited Kroondal Kroondal Platinum Mine or P&SA1 at Kroondal LHD Load haul dump machine Marikana Marikana Platinum Mine or P&SA2 at Marikana Mimosa Mimosa Mining Company (Private) Limited nm Not measured PGE(s) Platinum group elements plus gold. Five metallic elements commonly (6E) found together which constitute the platinoids (excluding Os (osmium)). These are Pt (platinum), Pd (palladium), Rh (rhodium), Ru (ruthenium), Ir (iridium) plus Au (gold) PGM(s) Platinum group metals plus gold.Aquarius reports the PGMs as (4E) comprising Pt+Pd+Rh plus Au (gold) with the Pt, Pd and Rh being the most economic platinoids in the UG2 Reef PlatMile Platinum Mile Resources (Pty) Ltd P&SA1 Pooling & Sharing Agreement between AQPSA and RPM Ltd on Kroondal P&SA2 Pooling & Sharing Agreement between AQPSA and RPM Ltd on Marikana R South African Rand Ridge Ridge Mining Limited ROM Run of mine. The ore from mining which is fed to the concentrator plant. This is usually a mixture of UG2 ore and waste. Tonne 1 Metric tonne (1,000kg) TARP Trigger Action Response Procedure UG2 Reef A PGE-bearing chromite layer within the Critical Zone of the Bushveld Complex END -0- Feb/07/2014 07:02 GMT
AQUARIUS PLATINUM LIMITED: FInancial results for the six months ended 31 Dec 2013
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