AQUARIUS PLATINUM LIMITED: FInancial results for the six months ended 31 Dec 2013

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:          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                                                                            
                                                                           
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
 
 
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