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(AQP.L) Aquarius Platinum Ltd Buy/Sell
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| Date/Time | Headline | Source |
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| 11-02-10 | PRN |
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Aquarius Platinum 2010 Half Year Financial Results - December 2009 Key Points: Operational Attributable production for the first half of the 2010 financial year was 208,857 PGM ounces, 7% higher than the previous 6 months to June 2009, though 20% lower compared to the 6 months to December 2008, due largely to the temporary closure of Everest Group Cash costs for the first half 2009 increased by 7% compared to first half 2008 to $682 per PGM ounce from $639 per ounce, reflecting lower production and a stronger Rand Key Points: Financial Average basket prices increased by 25% to $1,026 per PGM ounce compared to the six months ended June 2009 Revenues increased by 48% to $206.1 million despite lower production as a result of higher PGM prices Net profit of $3.9 million (US 0.86 cents per share), impacted by a number of one-off charges including $20.8 million relating to early redemption of convertible notes and $7.8 million relating to a Zimbabwean deferred tax liability recalculation due to the change in corporate tax rate Successfully raised $300m through a convertible bond issue, strengthening the balance sheet Consolidated cash balances at period end of $464.6 million Interim dividend of US 2.0 cents per share declared Key Points: Strategic Integration and production ramp-up at Blue Ridge progressing well Everest re-establishment project initiated and progressing well Mimosa and Platinum Mile expansions completed Commenting on the results, Stuart Murray, CEO of Aquarius Platinum said: "The improvement in the Dollar basket price during the first six months of the 2010 financial year has enabled Aquarius to return to profitability despite a strong Rand and the lower production caused principally by the unprotected industrial action at Kroondal and Marikana in the first quarter. Aquarius staff have worked hard to successfully control costs and mitigate production loss. I am pleased with the progress made with the ramp-up at Blue Ridge, the re-establishment project at Everest and the outcome of the Mimosa expansion. With the improved outlook in terms of revenue per ounce, the second half financial results should be an improvement on the first half. The belief in improved times ahead has enabled the company to resume the payment of dividends." Aquarius Half Year Group Attributable Production [Please refer to www.aquariusplatinum.com for graph] Production Total on mine PGM production for the period was 417,714 PGM ounces. This represents a 2% increase compared to the six months ended June 2009, and an 8% decrease (due to the temporary closure of Everest) when compared to the December 2008 period. Production attributable to Aquarius was up 7% to 208,857 PGM ounces for the half year ended December 2009 when compared to the six months ended June 2009, though 20% lower compared to the previous corresponding period (pcp). This decrease was due to the temporary closure of the Everest Mine on 7 December 2008. Production by Mine and Attributable to Aquarius
PGMs (4E)
The period under review was impacted by the suspension of operations at Everest as well as the unprotected industrial action that took place at Kroondal and Marikana in September 2009. These factors resulted in a decrease in production compared to the first half of the 2009 financial year. However growth is being maintained as shown in the following graph as a result of the Mimosa expansion, Platinum Mile expansion and the Blue Ridge acquisition; and the negative impact shown is of a temporary nature and will not detract from the longer term AQPSA profile. [Please refer to www.aquariusplatinum.com for graph] Foreign Exchange The Rand continued to strengthen over the 6 months to December 2009 moving from an average of 8.79 in the period to December 2008 to a period average of 7.65. The Rand closed the half year at R7.39 to the US Dollar. Rand Dollar Exchange Rate [Please refer to www.aquariusplatinum.com for graph] Platinum Group Metal Prices US Dollar PGM prices continued to reflect an improving fundamental market demand and significant interest in Exchange Traded Funds (ETF) continues to drive platinum and palladium prices. The US-based platinum and palladium ETFs commenced trading on 8 January 2010 on the NYSE Arca exchange, the same day that the Julius Baer Swiss-based physically-backed ETFs also commenced trading. These are the first physically-backed ETFs for the metals in the US and are expected to further increase investor interest in PGMs. With prices rising across all PGM metals, palladium and rhodium recorded the largest price increases, at 58% and 72% respectively. Platinum closed the period 24% higher at $1,461 per ounce, rhodium 72% higher at $2,500 per ounce, palladium 58% higher at $393 per ounce, and gold 18% higher at $1,105 per ounce. Individual PGM Prices December 2008 - 2009 (Dollar and Rand per PGM ounce) [Please refer to www.aquariusplatinum.com for graph] The Rand continued to strengthen against a weak US Dollar during the half year but stabilised towards the end of the period. This stability, linked with continued strength in Dollar prices reflected in strong improvement in Rand prices towards the end of the period. South African operations averaged $1,086 per PGM ounce (equivalent to R8,309 per PGM ounce) and closed the period at R9,136 per PGM ounce. In Zimbabwe, the average achieved basket price for the first half of the financial year was $859 per ounce. This resulted in a group basket price equivalent of $1,026 per PGM ounce, up 25% from the six months ended June 2009. PGM Basket Prices December 2008 - 2009 (Dollar and Rand per PGM ounce) [Please refer to www.aquariusplatinum.com for graph] Financial results: Half Year to 31 December 2009 Aquarius showed a significant financial improvement on the previous corresponding period, moving from a $70.1 million loss to a profit of $3.8 million (0.86 cents per share) for the half year ended 31 December 2009 (the "Result"), a $74 million turnaround. This improvement was evident in a $129 million increase in mine EBITDA, moving it from a negative of $72.8 million in the pcp to a positive of $56.7 million in the current period. The improved result was despite lower comparative production (due to the temporary closure of the Everest mine in December 2008) and reflects improved and less volatile PGM prices. The Directors have declared an interim dividend of US 2 cents per share (2009: nil) payable on 26 March 2010 to shareholders registered on 5 March 2010, reflecting the company's improved operational cash flow and the Directors' increasing confidence in the improved economic environment. The Result was heavily influenced by exceptional non mining expenditure, primarily related to: * the early redemption of the Rand convertible notes resulting in net costs of $20.8 million; and * a $7.8 million increase in Mimosa's deferred tax liability following an increase from 15% to 25% in Zimbabwe's corporate tax rate. Group Financials by Operation (attributable to Aquarius)
PGM ounces
(attributable)
Cost of sales
costs
amortisation
Corporate
costs
Foreign
(loss)
charges
Early
con note
Ridge
costs (net)
Reversal/
of assets
before tax
(expense)
after tax On an adjusted basis for one-offs, the net profit for the period is estimated at $32.5 million (as outlined in the table below).
expenses
Early redemption
convertible
notes
tax
expense
tax Revenue (PGM sales and interest) for the half year to December 2008 was up 48% from $139 million in the pcp to $206 million. Measured on a PGM ounce basis, this represents an increase from $535 per PGM ounce to $1,071 per PGM ounce. Gross margins recovered following improved and less volatile PGM prices during the half year. Total cash cost of production was $142.5 million, up 10% per PGM ounce in Dollar terms, partially influenced by Rand strength. Amortisation and depreciation were marginally lower at $20 million from $21 million reflecting lower production. Finance costs for the period of $10.6 million includes interest on convertible notes and bank borrowings at Mimosa level and a non cash element of $2.7 million relating to the net present value adjustments to the Marikana and Kroondal rehabilitation provisions. Income tax expense was higher due to a $7.8 million increase in Mimosa's deferred tax liability following an increase from 15% to 25% in Zimbabwe's corporate tax rate Net operating cash generated showed a $33.5 million improvement, bringing net operating cash inflow to a positive $17.7 million for the period despite lower comparable production. Following the successful raising of $300 million of unsubordinated, unsecured convertible notes Aquarius' cash balances increased $378 million from the pcp to $465 million. On 18 January 2010, Aquarius utilised approximately $106 million from its cash reserves to retire the Company's existing R650 million convertible notes in accordance with their terms (at an aggregate redemption price of R747.5 million). Notification of redemption was given on 21 December 2009 and completion of the redemption process occurred on 18 January 2010. The impact arising from the notification of early redemption of the company's rand convertible notes inclusive of the borrowing costs and the 15% premium was accounted for in the consolidated income statement for the period under review. Acquisition of Ridge Mining plc On 6 July 2009, pursuant to a Scheme of Arrangement, Aquarius acquired 100% of the voting shares of Ridge, a company registered and headquartered in England and publicly listed on the AIM market of the London Stock Exchange. Ridge's Blue Ridge Mine is in commissioning and ramp-up and will further diversify Aquarius' portfolio, increase its resource base, and add new production ounces and longevity to its production profile. The acquisition will also add significant optionality with the new Sheba's Ridge project. The total cost of the business combination was US$112,703,640 and comprised the issue of equity instruments - both ordinary shares and options over ordinary shares. Aquarius issued 33,477,945 ordinary shares with a fair value of GBP 1.968 each, based on the quoted price of the shares of Aquarius on 6 July 2009. Convertible Notes In December 2009, Aquarius concluded a capital raising of $300 million of unsubordinated, unsecured convertible bonds, due 2015. The Bonds were issued at 100% of their principal amount and have a coupon of 4.0% per annum, payable semi-annually in arrears. The initial conversion price is $6.773 per share, representing a premium of 22.5% to the volume weighted average price of the Company's common shares on the London Stock Exchange (LSE) between launch and pricing, translated at a GBP-USD exchange rate of 1.653. With the declaration of the interim dividend the conversion price will be adjusted and bondholders informed in due course of the revised conversion price. Part of the proceeds of the Bonds have been used to fund the early redemption of all of the Company's existing R650 million convertible bonds in accordance with their terms (at an aggregate redemption price of R747.5 million) with the balance for general corporate purposes and business opportunities. The Bonds commenced trading on the Exchange's LSE's Professional Securities Market on 21 December 2009. Financials
Production
Attributable Production (PGM
Ounces)
(before Blue Ridge production of
16,534 ozs)
redemption of convertible notes
associated with Ridge Mining
Notes on the Consolidated Income Statement Revenue is higher compared to December 2008 despite lower PGM ounces produced, due to improved metal prices and a less volatile price environment. The 11.3% increase in cost of sales on a unit cost basis reflects Rand strength, the impact of inflation on mine cash costs, and includes depreciation and amortisation of $19.9 million. Relates to administration costs of the Aquarius Group inclusive of costs associated with business development activities, legal and financial advisory expenses. Financecosts reflect a $7.3 million interest expense on convertible notes and bank loan at Mimosa, pipeline finance of $0.4 million and interest expense on the unwinding of the rehabilitation provisions of $2.7 million. Foreign exchange gains are mainly a result of gains on group loans due to the weakening of the Dollar against the Rand. Reflects net impact of transaction and acquisition costs associated with the acquisition of Ridge Mining. Reflects reversal of impairment charges for listed investments. Income tax includes a $7.8 million increase in Mimosa's deferred tax liability following an increase from 15% to 25% in Zimbabwe's corporate tax rate. Minority interest reflects interest previously at AQPSA level, now 100% owned by AQP.
Notes on the Consolidated Cash Flow Statement Net operating cash flow includes a $179.3 million net inflow from sales, $156.7 million paid to suppliers, interest income of $4.6 million, interest expense of $4.3 million and income tax paid of $5.7 million. Reflects development and plant and equipment expenditure of $43.5 million less cash balances acquired as part of the Ridge acquisition. Includes $293.9 million net proceeds from a capital raising of unsubordinated, unsecured convertible bonds, proceeds from the issue of shares on exercise of options and warrants, loans repaid $11 million and $10.8 million loan to an associate company. Reflects movement of Rand against the US dollar.
Assets
Liabilities
Equity
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, Mimosa, Everest and Blue Ridge mine properties and mine development. Includes recoverable portion of rehabilitation provision from Anglo Platinum ($11.9 million), investments in rehabilitation Trusts of $12.6 million and investments held for resale of $2.1 million. Included intangibles relating to goodwill and contract value acquired on acquisition of 50% equity interest in Platinum Mile Resources (Pty) Ltd. Includes $106.7 million of Rand convertible notes subsequently paid out on 18 January 2010, creditor and other payables of $71.7 million and tax payable of $1 million. Includes rehabilitation obligations on P&SA1 and P&SA2 structures. Includes convertible notes of $231m, DBSA and IDC loans at Blue Ridge Pty Ltd level of $23m, Investec loan to Platmile of $0.2m, AQPSA vehicle leases of $0.6m and TKO loan of $0.3m. Includes deferred tax liabilities of $106.6 million, provision for closure costs of $70.9 million.
OPERATIONS AQUARIUS PLATINUM (SOUTH AFRICA) (PTY) LTD (Aquarius Platinum Limited - 100%) P&SA1 at Kroondal Safety No fatal accidents during the period - Kroondal achieved 12 fatality-free months in Q2 2010 The 12-month rolling average disabling injury incidence rate (DIIR) improved to 0.63 from 0.77 during the half year Mining Underground volumes fell by 10.6% to 3.1 million tonnes due to unprotected industrial action Open pit operations ceased in the previous financial year Achieved head grade in the first half increased by 1.2% compared to 1H 2009, to 2.60 g/t. Processing 3.0 million tonnes of ore processed in concentrator plants, 6.8% lower than in 1H 2009 Concentrator recoveries improved marginally to 79% Production decreased by 6.8% to 197,061 PGM ounces Strong operational response in Q2 2010 partially offset ounces lost to unprotected strike in Q1 Revenue The Dollar PGM basket price achieved by Kroondal for the first half was $1,077 per PGM ounce. This was 12.7% lower than in the comparable period last year, but 25.9% higher than in 2H 2009. The Rand also strengthened over the period, with the Rand/Dollar exchange rate averaging R7.65/$ for the six months as a result (1H 2009: R8.79/$). Revenue at Kroondal in 1H 2010 was consequently lower initially, but the stabilising and subsequent increase in PGM prices during the half resulted in positive sales adjustments. By comparison these adjustments were materially negative in 1H 2009 due to falling PGM prices. Overall revenue from the mine therefore increased in 1H 2010 by 84.2% to R1,549 million. Operations Production of ore from the Kroondal underground operations for the first six months of FY2010 was 3.1 million tonnes, a decrease of 10.6% compared with the first half of FY2009. This reduction in mined volumes was largely as a result of the unprotected industrial action that occurred during the first quarter of the financial year involving employees of the underground mining contractor, MRC, on three of the Kroondal shafts. This industrial action took place despite a wage settlement of 10.2% having been agreed between MRC and the National Union of Mineworkers (NUM), and eventually resulted in a mass dismissal of the workforce. Disruptive and intimidatory action by former employees prevented effective recruitment from the dismissed employee base, requiring a greater component of those recruited to be new employees, which delayed the engagement, training and deployment plan, further impacting mining volumes. This unprotected strike action also affected both underground shafts at Marikana. The new workforce has been fully trained and subsequent to the replacement of the old workforce, industrial relations have been stable at both operations. During the first quarter, the underground mining contract at the K5 shaft was transferred from Redpath to MRC, motivated by operational and equipment synergies. Although the transfer process proceeded according to plan, it did result in lower production during the handover. At the period end, the K5 shaft was achieving the benefits and synergies anticipated by management as a result of the transfer. Mining volumes at Kroondal fell 16.0% quarter on quarter in the first quarter of the financial year, but rose by 21.9% in the second quarter to a satisfactory level following a creditable operational management response to the problems encountered in the first part of the financial year. Primary development increased by 12.0% over the period to a total of 4,072 metres due to improved operational efficiencies and ground conditions. At the end of the period, stockpiles had been increased to 130,000 tonnes of ore in preparation for the Christmas close and to mitigate the impact of the Q3 holiday season. The concentrators processed 3.0 million tonnes in the first six months of the financial year, representing a decrease of 6.8% versus the comparable period in the prior year. This reduction was again due to the knock-on effect of the unprotected strike. The plant head grade increased slightly to 2.60g/t for the first half, primarily due to a reduction in footwall waste and waste from off-reef mining being packed underground, while recoveries improved to 79% through improvement initiatives in operational stability and control. Total 4E PGM production fell by 6.8% to 197,061 PGM ounces, 98,531 PGM ounces of which are attributable to Aquarius. Operating Cash Costs Cash costs for the first half increased by 7.7% compared to 1H 2009, to R365 per ROM ton and by 6.7% to R5,549 per PGM ounce. It is also noteworthy that Rand costs per PGM ounce in Q2 2010 were only 2.0% higher than in the corresponding quarter a year ago. The relative strength of the Rand against the Dollar is reflected in the fact that the cash costs in Dollar terms increased 22.5% to $725. Rand-denominated costs were affected by both the unprotected strike as lower production increased the impact of fixed costs, and by increased labour costs. Electricity tariffs were increased materially (33%) in June 2009, resulting in increased effective electricity costs at Kroondal over the first half of the year. However, as a result of the shallow nature of the Kroondal ore body and the trackless mining method employed by Aquarius, electricity only comprises approximately 5% of cash costs. Labour remains the largest single component of Kroondal's operating cash costs, representing approximately 50% of the total. Kroondal: Operating Cash Costs
Capital Expenditure Capital expenditure at Kroondal was R72 million in the first half of FY2010, or approximately R368 per PGM ounce. This was spent largely on the construction of underground infrastructure. Kroondal management was able to significantly reduce capital expenditure at the mine compared with prior periods as a result of reclamation and re-design initiatives. All of the expenditure incurred during the period was stay-in-business sustaining capital, and Kroondal's expenditure is up to date as per mine plan. Firstplats transaction The Firstplats transaction was concluded during the first half, as announced previously. It has resulted in a pro-rata addition of 0.46 million ounces of reserves into the P&SA1, thereby extending the life-of-mine of Kroondal in excess of one year. The additional reserves are down-dip of central shaft and will be mined from existing shaft infrastructure requiring only stay-in-business capital expenditure and enabling cost efficient ore extraction. P&SA2 at Marikana Safety No fatal accidents during the period - Marikana achieved 12 fatality-free months shortly after the close of the half year The 12-month rolling average DIIR for the half year deteriorated to 1.08 compared with 0.70 in the previous corresponding period as a result of the higher risk profile associated with operations moving from primarily open pit mining to a combination of underground and open pit mining Management actions have been implemented which are expected to reverse this trend over time Mining Underground production ramp-up continues to progress with 761,000 tons mined for the period despite the closure of 2 Shaft (at the end of the pcp) and the unprotected industrial action Open pit production decreased to 420,000 tons as a result of geological pothole intersections and the ramping down of opencast operations Head grade decreased to 2.67 g/t due to increased underground tonnage Processing Tonnes processed decreased by 15.0% compared to the first half of 2009, to 1,157,000, reflecting lower availability of opencast material Recoveries improved by 7.8% to 69% Marikana produced 68,381 4E PGM ounces during the period, a 15.9% decrease compared to the first half of 2009 Production, head grade and recoveries all improved in the second quarter of the financial year Revenue The Dollar PGM basket price achieved by Marikana for the first half was $1,093 per PGM ounce, 8.8% lower than in 1H 2009 but 26.7% higher than in 2H 2009. As was the case at Kroondal, the strengthening Rand and lower basket prices resulted in Marikana generating lower revenue initially, but the stabilising and subsequent increase in PGM prices during the half resulted in positive sales adjustments. As a result, overall revenue at Marikana increased by 82.5% to R553 million in the period under review. Operations Total mine production for the first six months decreased by 18.0% to 1,2 million tonnes, made up of 761,000 underground tonnes and 420,000 open pit tonnes. The reduction in the total was as a result of several factors, including the unprotected industrial action affecting Marikana's underground operations, the ramping down of the opencast operations and the closure of 2 Shaft. Open pit mining volumes were also impacted negatively by a significant pothole intersection that occurred shortly prior to the commencement of the first half. Production improved during the second quarter as the operations stabilised. The Pit A opencast area was mined out during the second quarter. Opencast mining is now focussed on the ROM and West-West pits. The majority of the oxide material in the West-West pit was mined out during the final months of the first half and the remainder of the mining in the pit will be in un-oxidised material, which should yield higher recoveries. Pre-stripping costs were incurred in the West-West pit which will contribute to lower stripping ratios and mining cost during the next quarter. Although delayed by the unprotected industrial action, the ratio of underground mining to opencast continues to increase, as the production build-up at 4 Shaft continues and the opencast mine approaches its end of life. Development activities to negate the effect of a high incidence of potholing and geological features at 1 and 4 Shafts are yielding results, with a commensurate increase in production in the later months of the period under review. The amount of mining done adjacent to potholes has negatively influenced the in-situ grade, exacerbated by the necessary focus on development after the industrial action, resulting in lower grades due to higher than normal waste contribution. The grade improved towards the end of the first half as stoping tonnes increased and panels moved away from pothole areas. Re-commissioning of the western shaft of the Firstplats acquisition (termed M5 shaft) also commenced and first production from that mining area is expected during the next quarter. The beneficial access arising from the Firstplats acquisition has yielded significant life of mine capital savings (precluding the use of vertical shafts) and enabled faster mining access to the Marikana ore body adjacent to the acquisition area. The surface stockpile decreased to 38,000 tons at the end of the period, as ore stocks were used to offset lower mining volumes. During the first six months, a total of 1,157,000 tons were processed in the Marikana concentration plant, a 15.1% decrease period on period. The average plant head grade decreased to 2.67g/t for the first six months compared to 2.87 g/t for 1H 2009 due to higher percentage of underground ore and lower-than-expected underground grades as a result of geological anomalies. Plant recoveries increased to 69% as the use of oxide material from the open pit operations declined. Marikana produced 68,381 PGM ounces in the first half of FY2010 (Aquarius attributable 34,191 PGM ounces), down 15.9% compared to 1H 2009. Operating Cash Costs Cash costs for the first half increased by 3.8% compared to 1H 2009, to R436 per ROM ton and by 4.9% to R7,386 per PGM ounce. As with Kroondal it is noteworthy that Rand costs per PGM ounce in Q2 2010 at Marikana were only 1.2% higher than in the corresponding quarter a year ago. Rand cash costs in Q2 2010 also showed some improvement compared to the first quarter of this financial year, falling 12% to R6,954 per PGM ounce. As with Kroondal, costs were negatively impacted by increased labour costs and the effect of the mine's fixed cost base during the unprotected industrial action in the first quarter. Electricity remains less than 5% of operating costs at Marikana, while labour constitutes approximately 50%. The relative strength of the Rand against the Dollar is reflected in the fact that the cash costs per PGM ounce in Dollar terms increased 20.5% to $965. Marikana: Operating Costs
Capital Expenditure Stay-in-business capital expenditure at Marikana decreased by 35.7% to a total for the period of R33.7 million (R491 per PGM ounce). This consisted primarily of underground infrastructure establishment. All critical capital expenditure is up to date. Everest Safety Everest achieved a zero 12-month rolling DIIR Everest completed 342 days without a lost time injury at the end of the first half Operations Mining operations were suspended at Everest in December 2008 following a subsidence event. The subsidence occurred over a mined-out area, and as a result no resources were lost and stoping areas were not affected. The re-establishment of Everest therefore relates entirely to the construction of new access points and associated infrastructure. Phase 1 of the re-establishment project, involving the excavation of the box cuts, storm water and earth works, the installation of temporary services and an access road was completed by the end of the first half. Phase 2, which includes the establishment of permanent underground services, the reclamation of infrastructure, equipping of declines and strike sections and there-establishment of stoping sections, has commenced and is proceeding as planned. Permanent surface infrastructure, such as mine services, roads and overland conveyers will also be completed during this phase. Decline development in the new North boxcut is now 65% complete with belt and surface infrastructure construction progressing as per schedule. The South boxcut was also completed during the period under review and a single decline shaft will be developed to provide access for men and material and for ventilation to the south stoping areas. A steel pre-fabricated tunnel was constructed from the high wall to surface and the boxcut will be completely filled and rehabilitated (a more cost effective and environmentally acceptable solution). The south decline development will commence in the next quarter. Project execution remains on track for Everest to be in a position to resume milling operations in the latter part of the first quarter of next financial year. Planning for the construction of the chromite spirals plant was finalised during the quarter, and construction activities will commence during the next quarter. Commissioning of the spirals plant will coincide with the resumption of milling operations at Everest. Capital Expenditure The total re-establishment project capital (both Phase 1 and Phase 2, as previously announced) of R259 million will put Everest in a position to resume operations. Project expenditure to date is well within budget, at a total of R66.0 million. Offtake agreement signed with Glencore for chromite from Everest Plant An offtake agreement has been signed with Glencore International AG, for the purchase of the chromite produced by the chromite spirals plant currently under construction at Everest. The agreement has been concluded on commercially favourable terms and the revenue from the chromite by-product will contribute to Everest's margins. The chromite plant is anticipated to have annual output of approximately 200,000 tonnes of UG2 chromite (40% Cr2O3) at steady state and will commence production in Q3 of calendar year 2011.
RIDGE MINING (PTY) LTD Blue Ridge Mine (Aquarius Platinum - 50%) Safety A fatality tragically occurred on 15 December 2009 The 12-month rolling average DIIR for the half year was 1.09 Preventative and remedial actions are being implemented to reverse the negative trend in safety performance Mining Underground operations produced 413,000 tonnes during the first half of 2010 Head grade was 2.48g/t Stockpiles at the end of the period totalled 173,688 tonnes Processing 605,000 tonnes of ore were processed at Blue Ridge during the first half Recoveries were 69% PGM production in the period amounted to 33,067 ounces (Aquarius attributable: 16,534 ounces) Operations The ramp-up of production at Blue Ridge continues to progress satisfactorily. During the period under review the focus remained on primary development to open ore reserves and available panels to increase production to steady state. Underground mining is progressing well, and stoping teams are being recruited and trained as stoping panels are being made available through the holing of additional raise lines. The concentrator plant's availability has increased steadily, with downtime mainly due to power interruptions as a result of lightning, redesign and re-engineering of the secondary mill from a grate discharge to an overflow discharge configuration as well as the installation of a new tailings pipeline. Improved process stability and process control resulted in average recoveries over the half of 69%, reflecting an improvement from 65% to 74% between Q1 2010 and Q2 2010. Throughput for the half year was 605,000 tonnes. The head grade averaged 2.48g/t over the period, slightly below expectations mainly as a result of development dilution and the processing of lower grade development stockpiles. PGM production was 33,067 PGM ounces (Aquarius attributable 16,534 PGM ounces), and the Dollar basket price was $1,061 per PGM ounce for the period. Capital Expenditure R54.0 million was spent on sustaining capital expenditure at Blue Ridge in the first six months of the 2010 financial year, and a further R157.2 million of expansionary capital expenditure was also incurred. Aquarius continues to capitalise costs and revenues associated with the ramp-up phase of Blue Ridge. MIMOSA INVESTMENTS LIMITED (Aquarius Platinum - 50%) Mimosa Platinum Mine Safety No fatal accidents during the period - Mimosa had achieved 2.2 million fatality-free shifts by the end of the half year The 12-month rolling average DIIR improved from 0.18 to 0.14 for the period - Mimosa retains the best safety record among the Aquarius operations Mining Underground mining production was flat at 1,068,000 tonnes The surface stockpile decreased by 72.5% from the comparative period to 146,000 tonnes Processing 1,153,000 tonnes were processed at Mimosa in 1H 2010, an increase of 13.7% Average concentrator plant recoveries rose to 76% Total mine production increased by 16.2% to 100,907 (Aquarius attributable: 50,454 PGM ounces) Revenue The Dollar PGM basket price for the period averaged $859 per PGM ounce, a 28.2% decrease compared to 1H 2008, but a 24.7% increase compared to 2H 2009. The average nickel price over the period was 9.1% lower at $7.59 per pound and copper was 14.0% higher at $2.58 per pound compared to the previous corresponding period. As a result of increased PGM production and positive sales adjustments reflecting higher PGM prices late in the period, revenue from Mimosa for the first six months was $110 million, a 115.7% increase compared to the previous corresponding period despite lower average metals prices. During the period mining operations remained consistent, hoisting 1,068,000 tonnes, the same volume as in the previous corresponding period. Tonnes processed at Mimosa during the first half totalled 1,153,000, an increase of 13.7%, despite a mill shutdown in December. The surface stockpile at the end of the period stood at 146,000 tonnes, a reduction of 72.5% compared to the prior period, as ore stocks were used to supplement mining volumes. The average plant head grade for the period decreased slightly to 3.59 g/t, while recoveries improved to 76%. Mimosa's PGM production for the period increased by 16.2% to 100,907 PGM ounces (Aquarius attributable: 50,454 PGM ounces). Operating Cash Costs Cash costs for the period increased by 25.0% to $50 per ROM ton and by 21.3% to $569 per PGM ounce compared to the previous corresponding period. Net of by-products, cash costs were $278 per PGM ounce. The cost increases relate largely to the continuing effects of the dollarization of the Zimbabwean economy. Mimosa Operating Costs
Capital Expenditure Stay-in-business capital expenditure at Mimosa increased by 44.4% to a total for the period of $13 million (approximately $120 per PGM ounce). This consisted primarily of underground infrastructure establishment. All critical capital expenditure is up to date. Regulatory developments in Zimbabwe The Indigenization and Economic Empowerment Regulations - Statutory Instrument 21 of 2010 - was published in the Zimbabwean Government Gazette in early February 2010. In terms of these regulations, foreign companies are required to localise or indigenize "51% of their shares or interests therein" within 5 years in all business sectors. The regulations provide for the gazetting within twelve months of further rules "with respect to each sector and subsector of the economy what lesser share than the minimum indigenization and empowerment quota shall be the minimum lesser share that indigenous Zimbabweans may hold in a business operating in the sector or subsector in question." The regulations further provide "what weighting (expressed as a fixed percentage that may be added towards the fulfillment of the minimum indigenization empowerment quota) to assign to anyone or more" of the "socially and economically desirable objectives in favour of a business operating in a specified sector or subsector of the economy." At the time of publication of this report, the Chamber of Mines of Zimbabwe on behalf of the mining sector was in closed discussions with relevant authorities with respect to finalizing the indigenization and empowerment quota for the mining industry. Aquarius is studying the regulations and its formal response to compliance will be guided by advice from its subsidiary, Mimosa Mining Company (Pvt) Limited. Mimosa is a member of the Chamber of Mines of Zimbabwe. As further information becomes available the market will be kept informed.
AQUARIUS PLATINUM (SA) CORPORATE SERVICES (PTY) LTD Chromite Tailings Retreatment Plant (CTRP) (Aquarius Platinum - 50%) Safety The DIIR for the period was 0 Processing Feed processed was 142,000 tonnes, an increase of 18.3% Average recoveries for the period decreased from 39% to 37% 3,827 PGM ounces produced (Aquarius attributable: 1,913 PGM ounces) Revenue The Dollar PGM basket price for the period was $1,179 per PGM ounce, a decrease of 22.9% compared to 1H 2009 but an increase of 27.0% compared to 2H 2009. The CTRP produces proportionately more rhodium than the other operations, which contributes to the higher basket prices achieved. As was the case at the other South African operations, the strengthening Rand and lower basket prices resulted in CTRP generating lower revenue initially, but the stabilising and subsequent increase in PGM prices during the half resulted in positive sales adjustments. As a result, revenue at CTRP increased by 133.3% to R28 million. Operations Processing plant feed increased by 18.3% 142,000 tonnes over the first half, while the head grade fell by 8.8% to 2.28 g/t. Recoveries also decreased, from 39% to 37%. CTRP produced 3,827 PGM ounces (Aquarius attributable: 1,913 PGM ounces), a 7.8% increase compared with the previous corresponding period. Operating Costs Cash costs decreased by 13.1% to R3,105 per PGM ounce, equal to $406 per PGM ounce.
CTRP R 3,105 per PGM ounce R 2,121 per PGE ounce R 2,040 per PGE ounce
PLATINUM MILE RESOURCES (PTY) LTD Platinum Mile (Aquarius Platinum - 50%) Safety The DIIR for the period was 0. Processing Milling expansion completed during the period, increasing the capacity and processing efficiency of the plant Feed processed was 4.0 million tonnes, a decrease of 13.0% Average recoveries for the period were 15% 14,471 PGM ounces produced (Aquarius attributable: 7,236 PGM ounces) Revenue The Dollar PGM basket price for the period was $1,166 per PGM ounce, an increase of 38.6% compared to 1H 2009. Revenue at Platinum Mile increased by 55.4% to R115 million. Operations The Platinum Mile milling expansion has been completed, and is yielding the anticipated improvements in processing capacity and efficiency by enabling greater plant throughput and finer grinding. Processing plant feed decreased by 13.0% to 4.0 million tonnes over the first half, while the head grade fell by 12.5% to 0.63 g/t. Recoveries increased, however, from 9% to 15%. Platinum Mile produced 14,471 PGM ounces (Aquarius attributable: 7,236 PGM ounces), a 59.3% increase compared with the previous corresponding period. Operating Costs Cash costs decreased by 26.5% to R2,490 per PGM ounce, equal to $333 per PGM ounce.
[Please refer to www.aquariusplatinum.com for statistical table] Aquarius Platinum Limited Incorporated in Bermuda Exempt company number 26290 Board of Directors
Nicholas Sibley Non-executive Chairman
Timothy Freshwater Non-executive
Sir William Purves Non-executive
Zwelakhe Mankazana Non-executive Audit/Risk Committee Sir William Purves (Chairman) David Dix Edward Haslam Nicholas Sibley Remuneration/Succession Planning Committee Edward Haslam (Chairman) David Dix Zwelakhe Mankazana Nicholas Sibley Nomination Committee The full Board comprises the Nomination Committee Company Secretary Willi Boehm AQPSA Management
Augustine Simbanegevi General Manager: Everest
ACS (SA) Management Paul Smith Director: New Business Mimosa Mine Management
Herbert Mashanyare Technical Director
Issued Capital At 31 December 2009, the Company had in issue: 462,491,685 fully paid common shares and 1,628,240 unlisted options.
Trading Information ISIN number BMG0440M1284 ADR ISIN number US03840M2089 Convertible Bond ISIN number XS0470482067
London, EC1A 1HQ
9488 1400 11 286 7326
Aquarius Platinum (South Africa) (Proprietary) Ltd 100% Owned (Incorporated in the Republic of South Africa) Registration Number 2000/000341/07 1st Floor, Building 5, Harrowdene Office Park, Western Service Road, Woodmead 2191, South Africa Postal Address: PO Box 76575, Wendywood, 2144, South Africa Telephone: +27 (0)11 656 1140 Facsimile: +27 (0)11 802 0990 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 Glossary
Aquarius Aquarius Platinum Limited
ACS (SA) Aquarius Platinum (SA) (Corporate Services) (Pty) Limited
or $
Everest Everest Platinum Mine
Dyke
Reef
code
Kroondal Kroondal Platinum Mine or P&SA1 at Kroondal
Marikana Marikana Platinum Mine or P&SA2 at Marikana
SavCon The Savannah Consortium - the principal Black Empowerment Investor in
UG2 Reef A PGE bearing chromite layer within the Critical Zone of the Bushveld
For further information please visit www.aquariusplatinum.com or contact: In Australia Willi Boehm +61 (0) 8 9367 5211 In the United Kingdom and South Africa Gavin Mackay gavin.mackay@aquariusplatinum.com + 44 7909 547 042
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| 10-02-10 | PRN |
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AQUARIUS PLATINUM LIMITED ASX, LSE & JSE 10 February 2010 Appointment - Mr Gavin Mackay Aquarius Platinum Limited "Aquarius" is pleased to announce that it has appointed Gavin Mackay as its Business Development and Communications Executive. He joined Aquarius on 1 February 2010 and will be responsible for the Company's business development, investor relations and corporate communications, based out of London. Mr Mackay moved to Aquarius from Ferrexpo plc, where he has been head of business development and investor relations for the past three years. Prior to that, he worked at JPMorganCazenove in London and JPMorgan in Johannesburg, with his work focused primarily on the mining industry. Mr Mackay is a South African attorney by training, and has a degree in Economics and English from the University of Cape Town and LLB and LLM (Tax Law) degrees from the University of the Witwatersrand, Johannesburg. Stuart Murray, CEO of Aquarius, said: "This appointment underscores our continuing commitment to best practice disclosure and proactive investor relations, and Gavin's experience is well suited to his new role with us. We are very pleased to welcome Gavin to the Aquarius management team." For further information please contact: In Australia: Willi Boehm Aquarius Platinum Corporate Services +61 8 9367 5211 In the United Kingdom and South Africa: Gavin Mackay +44 (0) 7909 547 042 gavin.mackay@aquariusplatinum.com
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| 10-02-10 | PRN |
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AQUARIUS PLATINUM LIMITED ASX, LSE & JSE 10 February 2010 Zimbabwe Update In respect of the recent media coverage on Zimbabwe's Indigenisation and Economic Empowerment regulations - Statutory Instrument 21 of 2010, Aquarius Platinum Limited confirms the gazetting of these regulations pursuant to section 21 of the Indigisation and Empowerment Act of 2008, in terms of which foreign companies are required to localise or indigenise "51% of their shares or interests therein" within 5 years in all business sectors. The regulations provide for the gazetting within twelve months of further rules "with respect to each sector and subsector of the economy what lesser share than the minimum indigenisation and empowerment quota shall be the minimum lesser share that indigenous Zimbabweans may hold in a business operating in the sector or subsector in question." The regulations further provide "what weighting (expressed as a fixed percentage that may be added towards the fulfillment of the minimum indigenisation empowerment quota) to assign to anyone or more" of the "socially and economically desirable objectives in favour of a business operating in a specified sector or subsector of the economy." The Chamber of Mines of Zimbabwe on behalf of the mining sector currently is in closed discussions with relevant authorities with respect to finalising the indigenisation and empowerment quota for the mining industry. Aquarius is studying the regulations and its formal response to compliance will be guided by advice from its subsidiary, Mimosa Mining Company (Pvt) Limited. Mimosa is a member of the Chamber of Mines of Zimbabwe. As further information becomes available shareholders will be kept informed. For further information please contact: Aquarius Platinum In Australia: Willi Boehm +61(0) 8 9367 5211 In the United Kingdom and South Africa Gavin Mackay gavin.mackay@aquariusplatinum.com + 44 7909 547 042
REGISTERED OFFICE Aquarius Platinum Limited - Clarendon House - 2 Church Street - Hamilton HMCX Bermuda Email: info@aquariusplatinum.com
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| 03-02-10 | PRN |
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AQUARIUS PLATINUM LIMITED ASX, LSE & JSE 3 February 2010 Issue of New Securities Aquarius Platinum Limited wishes to advise that the Company has issued 4,181 common shares upon exercise of 11,500 unlisted Ridge Mining options held by Ridge employees on the basis of 1 Aquarius share for every 2.75 Ridge share pursuant to the scheme of arrangement that was announced to the ASX on 26 May 2009. The total number of shares on issue is 462,755,572. For further information please visit www.aquariusplatinum.com or contact: In Australia: Willi Boehm Aquarius Platinum Corporate Services +61 8 9367 5211 In the United Kingdom: Stuart Murray +27 (0) 11 656 1140 In South Africa: Charmane Russell +27 (0) 880 3924
REGISTERED OFFICE Aquarius Platinum Limited - Clarendon House - 2 Church Street - Hamilton HMCX Bermuda Email: info@aquariusplatinum.com Telephone: +61 8 9367 5211
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Thanks Ranger. Its a good point about the strong Rand. In my view its going down the toilet after the world cup and AQP's margins will then be even better
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BUY
divi is back
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from another BB, in case someone hasn't seen.......
http://www.advfn.com/p.php?pid=nmona&cb=1265876951&article=41486072&symbol=L^AQP Commenting on the results, Stuart Murray, CEO of Aquarius Platinum said: "The improvement in the Dollar basket price during the first six months of the 2010 financial year has enabled Aquarius to return to profitability despite a strong Rand and the lower production caused principally by the unprotected industrial action at Kroondal and Marikana in the first quarter. Aquarius staff have worked hard to successfully control costs and mitigate production loss. I am pleased with the progress made with the ramp-up at Blue Ridge, the re-establishment project at Everest and the outcome of the Mimosa expansion. With the improved outlook in terms of revenue per ounce, the second half financial results should be an improvement on the first half. The belief in improved times ahead has enabled the company to resume the payment of dividends." |
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| 11-03-10 |
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Looks like Plat took a bit of a dive after my post yesterday. Both it and Gold sunk, and the pound has marched upwards a bit.
Certainly plenty of volatility at the moment. FWIW, I dont see how we are going to miss out on another bout of inflation. Government liabilities are so huge, and the public sector so powerful, that they are going to have to resort to a bit of the printing press. For that reason, in the medium term, hard assets are going to do far better than cash. |
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| 10-03-10 |
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Well the price of Platinum fell a long way.
But now over $1600 an ounce again. And the pound is now down to $1.49. In terms of pounds, the price of plat cant be too far from its all time highs. Presumably then, the price of AQP is being held back by operational problems? You cant take advantage of that great price if you cant get the silver stuff out of the ground. |
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