Aquarius Platinum Preliminary full year results to 30 June 2014

 
TIDMAQP 
 
AQUARIUS PLATINUM LIMITED 
 
PRELIMINARY FULL YEAR RESULTS TO 30 JUNE 2014 
 
 Key Points: Financial 
 
- Significantly strengthened balance sheet following conclusion of rights 
issue and repurchase of bonds, leaving AQP in a net cash position 
 
- $62 million improvement in headline earnings performance 
 
- Revenue marginally down by 2% to $233 million on lower prices (FY2013: $237 million) 
 
- Group mine EBITDA marginally down to $30 million (FY2013: $35 million) due 
to lower prices and lower production at PlatMile tailings retreatment 
 
- Share of profit from JV entities: EBITDA $33 million, contributing net 
profit $5 million 
 
- Headline loss (before exceptional charges) of $11 million at 1.13 cents per 
share (FY2013: loss of $73 million at 8.80 cents per share) 
 
- Profit on repurchase of bonds $11 million 
 
- Accounting net loss after tax (to IFRS) of $13 million (1.38 cents per 
share) (FY2013: loss of $288 million at 34.55 cents per share) 
 
- Mine operating net cash flow increased by $42 million to a $21 million 
inflow (FY2013: outflow of $20 million) 
 
- Group cash balance at 30 June 2014 of $137 million, with a further $8 
million attributable to Aquarius held in JV entities 
 
Key Points: Operational 
 
- Significant improvement in Kroondal's safety performance with LTIFR 
improving from 1.14 in FY2013 to 0.73 in FY2014 
 
- Mimosa's LTIFR of 0.08 makes it the safest underground Platinum mine in 
Southern Africa 
 
- Group attributable production increased by 2% to 331,642 PGM ounces (FY2013: 
325,103 PGM ounces) 
 
- Kroondal consistently producing at capacity levels with 6 consecutive 
quarters above guidance 
 
- Kroondal annual production at highest level since 2008 at in excess of 
430,000 PGM ounces 
 
- Mimosa performed strongly again, continuing to produce at capacity but 
impacted by a low PGM Dollar price, with cash costs up 1% compared to the 
previous corresponding period (pcp) 
 
- Mimosa Q4 production of >60,000 PGM ounces represents the highest ever 
quarterly production by Mimosa 
 
- Mimosa voluntary retrenchment process completed, costs reduced by 5% 
 
- The average US Dollar PGM basket price of $1,164 was 5% lower compared to 
the pcp 
 
- The average Rand basket price increased by 11% compared to the pcp due to a 
weaker Rand 
 
- The Rand weakened by 18% on average against the US Dollar compared to the 
pcp 
 
- On-mine unit cash costs at Kroondal from mature shafts increased by 3% in 
Rand terms compared to the pcp and by 9% if the development shaft K6 is 
included in FY2014 costs 
 
Key Points: Strategic 
 
- Kroondal concluded 3 year wage agreements with representing unions at a cost 
slightly above inflation measured by CPI 
 
- Mimosa wage costs increased by 2% 
 
- The implementation of the disposal of non-core assets announced in January 
2014 is on track 
 
- Agreed another extension of the Kroondal PSA by a further 4.8 million 
tonnes. 
 
Commenting on the results, Jean Nel, CEO of Aquarius Platinum, 
said: 
 
"The 2014 financial year was a year in which Aquarius delivered on its objectives. 
 
Safety, production and cost performance at both Kroondal and Mimosa improved 
substantially. Kroondal produced in excess of 430,000 PGM ounces for the first 
time since 2008, whilst at the same time improving its safety performance 
substantially. Also of significance is the 3 year wage agreement concluded 
after year-end, once again, without any operational interruptions. Credit for 
Kroondal's exceptional performance goes to the operational management team 
lead by Rob Schroder and Wessel Phumo. 
 
Mimosa continues to deliver safety, production and cost 
performances ahead of guidance and is well positioned to continue delivery in 
2015. Following the implementation of the voluntary retrenchment program at 
Mimosa unit cost performance is set to continue to improve sustainably. Again 
credit for an excellent performance is due to the Mimosa operational team lead 
by Winston Chitando and Peter Chamboza. 
 
At corporate level, with overwhelming support from shareholders, 
AQP completed the rights offer and bond tender offer resulting in a 
substantially strengthened balance sheet, with net cash, even before the 
potential cash inflow from the sale of non-core assets. 
 
Whilst the year under review was a difficult year with the Platinum 
mining sectors' challenges well published, Aquarius is proudly of a view that 
significant progress was made in improving the quality of its operations and 
its balance sheet. These improvements, combined with the recently increased 
metal prices positions the company to generate free cash for shareholders, 
which as we have noted in the past, has been a neglected stakeholder. Against 
this backdrop Aquarius' focus will remain resolutely on continuing to improve 
safety, production and cost performances across the Group, whilst carefully 
assessing selected growth opportunities." 
 
Financial results: Year to 30 June 2014 
 
Aquarius has commenced accounting for its investments in Mimosa and Blue Ridge 
using the equity accounting method from 1 July 2013 
 
Aquarius' consolidated result for the year ended 30 June 2014 was a 
loss of $13 million (1.38 cents per share). Profitability at mine level 
(on-mine EBITDA) was $30 million, down 14% compared to $35 million in the pcp 
due to the impact of strikes on PlatMile's operations as well as the inclusion 
of the development shaft at Kroondal, K6, in operations for the first time in 
2014. The 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 was 331,642 PGM ounces, 
representing a 2% increase compared to pcp, despite the effect of the strike 
action at Anglo Platinum on PlatMile's production. 
 
Profit & Production Summary 
 
                         Aquarius       JV      Total  Consolidation  Aquarius 
                        operations   entities           adjustment      Group 
     Mine EBITDA           $30M        $33M     $63M      ($33M)        $30M 
       Revenue            $233M       $131M     $364M     ($131M)       $233M 
    Cost of sales        ($231M)     ($110M)   ($341M)     $110M       ($231M) 
  Net profit/(loss)       ($18M)       $5M     ($13M)        -         ($13M) 
      after tax 
  PGM ozs production     220,961     110,681   331,642       -         331,642 
 
Revenue (PGM sales, interest) for the year was $233 million, 2% 
lower compared to the pcp due to lower PGM metal prices and the effect that 
the Anglo Platinum strike action had on PlatMile. The PGM basket price 
achieved for the year was $1,164 per PGM ounce, down 5% from the pcp. Gross 
margins improved at Kroondal on higher production and a weaker Rand but 
margins were lower at Mimosa due to lower Dollar PGM basket prices. 
 
Total cash cost of production was $202 million, down $7 million 
despite a 2% increase in production at Kroondal and PlatMile. Significantly, 
Kroondal recorded its seventh consecutive +100,000 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 Dollar unit costs in South Africa 
decreased 7% to $870 but increased 9% in Rand terms due to the inclusion of 
Kroondal's K6 development shaft in operations for the first time. The unit 
cost for the mature Kroondal shafts increased by only 3%. In Zimbabwe the cash 
cost per PGM ounce was $878, a 1% increase inclusive of completing a voluntary 
labour rationalisation program at a once off cost of $5.5 million. 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 R10.37 to the US Dollar 
compared to R8.80 in the pcp. During the year Aquarius recorded net foreign 
exchange gains of $2 million comprising gains on sales adjustments and 
revaluation of cash, intercompany loans and pipeline debtors. 
 
Administration costs of $7 million were substantially lower 
following cost reduction initiatives implemented. Depreciation and 
amortisation for the year of $29 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 included $22 million on convertible bonds (of which 
$10 million was non cash representing the accretion of interest on the 
convertible bond), $5 million of non-cash interest arising from the unwinding 
of the net present value of the rehabilitation provisions of AQPSA and $1 
million of other costs. 
 
Income tax expense of $0.5 million includes normal tax, deferred 
tax and royalties. 
 
Group Financials by Operation 
 
                                                 Kroondal     Marikana      Everest     Mimosa        PMR 
PGM ounces (4E) (attributable)                      215,371             -           -     110,681       5,590 
                          $M 
Revenue                                                 222             1           1         131           5 
Cost of Sales - mining, processing & admin            (189)           (2)         (6)        (96)         (5) 
Cost of Sales - depreciation & amortisation            (24)             -         (2)        (13)         (2) 
Gross profit/(loss)                                       9           (2)         (7)          22         (2) 
Administrative costs                                      -             -           -           -           - 
Foreign exchange gain/(loss)                              4             -           -           -           - 
Finance costs                                             -             -           -           -           - 
Impairment losses                                         -             -           -           -           - 
Profit on repurchase of bonds                             -             -           -           -           - 
Profit on sale of assets                                  -             -           -           -           - 
Closure, transition and rehabilitation costs            (3)             9         (1)           -           - 
Community share ownership trust                           -             -           -       (0.5)           - 
Indigenisation costs                                      -             -           -         (2)           - 
Share of profit from joint venture entities               -             -           -           -           - 
Profit before income tax                                 10             7         (7)          19         (2) 
 
                                               Blue Ridge   Corporate      Total   Reconciliation to   Consolidated 
                                                                                       Consolidated 
                                                                                       Information 
 
PGM ounces (4E) (attributable)                            -          -     331,642                -              - 
                       $M 
Revenue                                                   -          4         364            (131)            233 
Cost of Sales - mining, processing & admin              (1)          -       (299)               97          (202) 
Cost of Sales - depreciation & amortisation               -          -        (42)               13           (29) 
Gross profit/(loss)                                     (1)          4          23             (21)              2 
Administrative costs                                      -        (7)         (7)                -            (7) 
Foreign exchange gain/(loss)                              -        (2)           2                -              2 
Finance costs                                             -       (32)        (32)                4           (28) 
Impairment losses                                         -        (3)         (3)                -            (3) 
Profit on repurchase of bonds                             -         11          11                -             11 
Profit on sale of assets                                  -          1           1                -              1 
Closure, transition and rehabilitation costs              -          -           5                -              5 
Community share ownership trust                           -          -       (0.5)              0.5              - 
Indigenisation costs                                      -          -         (2)                2              - 
Share of profit from joint venture entities               -          -           -                5              5 
Profit before income tax                                (1)       (29)         (3)              (9)           (13) 
 
 
* 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. 
 
Cash balances 
 
Group cash at 30 June 2014 was $137 million, up $59 million from 
June 2013. The increase in cash was mainly attributable to $226 million 
proceeds from the rights issue to fund the repurchase of convertible bonds 
with a nominal value of $173 million at a cost of $162 million. In addition to 
this, the group paid $28 million to fund its capital expenditure program, paid 
$13 million in interest and received $22 million of dividends from Mimosa. 
 
A key indicator to the improved performance of Aquarius' South 
African assets is the $41 million turnaround in net cash flows from operating 
activities from a deficit of $20 million in the pcp to a surplus of $21 
million in FY2014. 
 
Cash held at Mimosa and Blue Ridge which is no longer classified as 
group cash due to the adoption of equity accounting was $16 million (100% 
basis). 
 
Joint venture entities 
 
Mimosa Investments Limited 
 
Mimosa recorded an EBITDA profit attributable to Aquarius of $34 
million and a net profit before tax of $10 million. The result was achieved on 
production of 110,681 PGM ounces attributable to Aquarius. Despite consistent 
production, EBITDA was lower than expected due to lower Dollar metal prices as 
well as labour retrenchment costs of $5.5 million. Unlike Kroondal which 
benefits when the Rand weakens against the Dollar, Mimosa has no such relief. 
Mimosa's PGM basket price for the year was $1,133 per PGM ounce, 6% lower 
compared to the pcp. Unit cash costs for the year were 1% higher at $878 per 
PGM ounce, inclusive of labour retrenchment costs of $5.5 million. 
 
Cash held in Mimosa at 30 June 2014 was $14 million (100%). 
 
Mimosa's financial result is provided in the Group Financials table 
on page 4 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 $5 million. The result 
reflects care and maintenance and interest costs for the year. 
 
Adoption of 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 
 
                           Year ended 30 June 2014 
 
                                    $'000 
 
                                  Note    Half year ended       Year ended 
 
                                         30/06/14  31/12/13  30/06/14  30/06/13 
 Attributable Production (4E PGM          163,628   168,014   331,642   325,103 
                         ounces) 
                         Revenue  (i)     119,883   113,173   233,056   237,115 
   Cost of Sales (including D&A)  (ii)  (110,407) (120,751) (231,158) (248,726) 
             Gross profit/(loss)            9,476   (7,578)     1,898  (11,611) 
                    Other income              102        72       174       278 
            Administrative costs (iii)    (3,017)   (4,336)   (7,353)  (12,368) 
    Foreign exchange gain/(loss)  (iv)      (888)     2,731     1,843  (19,323) 
                   Finance costs  (v)    (12,796)  (15,295)  (28,091)  (26,669) 
               Impairment losses  (vi)      (597)   (2,487)   (3,084) (214,111) 
   Profit on repurchase of bonds           10,925         -    10,925         - 
        Profit on sale of assets              684      (31)       653         - 
         Closure, transition and 
  rehabilitation reversal/(cost) (vii)      5,342         -     5,342  (54,538) 
     Share of profit/(loss) from 
          joint venture entities (viii)     4,889       166     5,055   (2,698) 
        Profit/(loss) before tax           14,120  (26,758)  (12,638) (341,040) 
    Income tax (expense)/benefit  (ix)    (3,274)     2,730     (544)    53,127 
               Net profit/(loss)           10,846  (24,028)  (13,182) (287,913) 
  Loss per share (basic - cents)             3.73    (5.11)    (1.38)   (34.55) 
 
 
Notes on the June 2014 Consolidated Income Statement 
 
(i) Sales revenue was marginally lower despite increased production 
due to lower PGM prices compared to the pcp. 
 
(ii) Aggregate cost of sales were $17 million lower. In South 
Africa unit costs per PGM ounce decreased 7% in Dollar terms but increased by 
9% in Rand terms due to the inclusion of the Kroondal development shaft, K6, 
for the first time in FY2014. 
 
(iii) Corporate administration costs are lower due to cost 
reduction initiatives. 
 
(iv) Foreign exchange gains of $2 million were recorded on sales 
adjustments and revaluation of cash, intercompany loans and pipeline debtors. 
 
(v) Finance costs of $28 million comprises interest and non-cash 
accretion of the convertible bond of $22 million, non-cash interest arising 
from the unwinding of the net present value of the rehabilitation provisions 
of AQPSA of $5 million and other costs of $1 million. 
 
(vi) Includes impairment charges relating to TKO and Investments in 
JV Entities. 
 
(vii) A downwards revision of the rehabilitation provision was made 
following the annual reassessment of the cost of performing rehabilitation 
work. 
 
(viii) Contribution from JV entities represents a $10 million 
Mimosa net profit offset by a $5 million loss incurred at Blue Ridge. 
 
(ix) Income tax expense of $0.5 million comprises normal tax, 
deferred tax and royalties. 
 
                          Aquarius Platinum Limited 
 
                       Consolidated Cash Flow Statement 
 
                           Year ended 30 June 2014 
 
                                    $'000 
 
                                            Half year ended  Financial year ended 
                                     Note  30/06/14 31/12/13  30/06/14   30/06/13 
 
Net operating cash flow               (i)    16,536    4,706     21,242   (20,392) 
Net investing cash flow              (ii)  (16,235) (10,989)   (27,224)   (20,630) 
Net financing cash flow              (iii)   52,209    9,912     62,121   (35,419) 
Net increase/(decrease) in cash held         52,510    3,629     56,139   (76,441) 
Opening cash balance                         82,998   77,773     77,773    166,652 
Exchange rate movement on cash       (iv)     1,312    1,596      2,908   (12,438) 
Closing cash balance                  (v)   136,820   82,998    136,820     77,773 
 
 
Notes on the June 2014 Consolidated Cash Flow Statement 
 
(i) Net operating cash flow includes net inflow from operations $16 
million, interest received $6 million and income tax paid $1 million. 
 
(ii) Net investing cash flow includes payments for mine development 
and development costs $28 million and proceeds from sale of property, plant 
and equipment $1 million. 
 
(iii) Net financing cash flow includes interest paid $13 million, 
net proceeds from rights issue and repurchase of bonds $55 million, proceeds 
from borrowings $3 million, repayment of borrowings $4 million and dividends 
from joint venture entities $22 million. 
 
(iv) Exchange rate movement reflects movement of other currencies 
against the US Dollar. 
 
(v) Excludes $8 million attributable cash held at Mimosa and Blue Ridge. 
 
                      Aquarius Platinum Limited 
 
                      Consolidated Balance Sheet 
 
                           At 30 June 2014 
 
                                $'000 
                                                 Financial year ended 
                                          Note    30/06/14   30/06/13 
Assets 
Cash assets                                         136,820     77,773 
Current receivables                        (i)       30,104     34,622 
Other current assets                      (ii)       15,246     15,237 
Property, plant and equipment             (iii)     100,122    105,030 
Mining assets                             (iv)      109,089    125,816 
Intangibles                                (v)       54,499     59,449 
Investments in joint venture entities     (vi)      230,410    242,079 
Other non-current assets                  (vii)      41,185     43,668 
Total assets                                        717,475    703,674 
Liabilities 
Current liabilities                      (viii)      41,338     42,845 
Non-current payables                      (ix)        2,065      2,665 
Non-current interest-bearing liabilities   (x)      117,704    268,788 
Other non-current liabilities             (xi)       82,600     93,434 
Total liabilities                                   243,707    407,732 
Net assets                                          473,768    295,942 
Equity 
Issued capital                                       73,216     24,343 
Treasury shares                                    (26,239)   (26,526) 
Reserves                                            781,692    639,881 
Accumulated losses                                (360,450)  (347,402) 
Non-controlling interests                             5,549      5,646 
Total equity                                        473,768    295,942 
 
Notes on the June 2014 Consolidated Balance Sheet 
 
(i) Reflects debtors receivable on PGM concentrate sales. 
 
(ii) Reflects PGM concentrate inventory, consumables, stores and critical 
spares. 
 
(iii) Represents fixed assets within the Group. 
 
(iv) Includes group's mining assets at Kroondal, Marikana, Everest, CTRP and 
Platmile. 
 
(v) Includes intangibles relating to acquisition of Platmile Resources. 
 
(vi) Represents investments in joint venture entities Mimosa and Blue Ridge. 
 
(vii) Includes recoverable portion of rehabilitation provision at P&SA sites 
of $9 million, cash contributed to rehabilitation trusts $17 million and 
deferred tax asset $15 million. 
 
(viii) Includes trade creditors $34 million, AQPSA finance leases $3 million 
and leave provisions $4 million. 
 
(ix) Reflects P&SA partners' right of recovery of rehabilitation provisions. 
 
(x) Reflects convertible bond of $118 million. 
 
(xi) Includes deferred tax liabilities $17 million and provision for closure 
costs $66 million. 
 
OPERATING REVIEW 
 
This section contains summarised operating reviews of each of the 
Company's operations. Full operating statistics are provided on page 16 of 
this report, and other updates relevant to all operations can be found under 
Corporate Matters on page 14. In addition, further detail on each of the 
operations can be obtained from the quarterly and half-year reports released 
by the Company throughout the 2014 financial year which are available on the 
Company's website at www.aquariusplatinum.com. 
 
AQUARIUS PLATINUM (SOUTH AFRICA) (PTY) LTD ("AQPSA") (Aquarius Platinum - 100%) 
 
P&SA 1 at Kroondal (AQPSA - 50%) 
 
- 12-month rolling average DIIR improved by 36% to 0.73 per 
200,000 man hours from 1.14 the previous year 
 
- Production improved by 9% to 7.2m tonnes 
 
- Volumes processed increased to 7.2m tonnes 
 
- Head grade deteriorated slightly to 2.39 g/t 
 
- Recoveries decreased by 1% to 78% due to reduced head grade 
 
- PGM production increased by 6% to 430,743 PGM ounces 
 
- Revenue increased by 20% to R4.6 billion compared to the 
previous financial year due improved production coupled with 12% improvement 
in the Rand basket price 
 
- Mining cash costs increased by 7% to R547 per tonne (making 
Kroondal the most efficient underground platinum mine in South Africa on a R/t 
basis), and costs per PGM ounce from mature shafts increased by 3% and 
inclusive of K6 development shaft by 9% to R9,115 
 
- Kroondal's cash margin for the period rose from 12% to 15% 
 
Commentary - Kroondal 
 
Safety, Health and Environment 
 
The Kroondal operations ended the year with a much improved DIIR 
compared to last year. The 36% improvement in safety is attributable to the 
embracement of the My Life, My Responsibility, I will Comply Safety campaign 
launched in late September 2013 by all employees. The focus remains on low 
energy incidents and general behaviour. 
 
Operations 
 
Kroondal operations were stable throughout the five month strike 
that gripped the rest of the industry in the Rustenburg area. This was in 
itself a significant achievement and credit to our employees, organised labour 
representatives and management. 
 
In July 2014 AQPSA concluded three year wage agreements with its 
work force at Kroondal agreeing an increase slightly above inflation (CPI) 
without the loss of a single production shift, a result on which the Kroondal 
work force and the company is rightfully proud. 
 
Operating Cash Costs 
 
Cash costs at Kroondal increased by 9% to R9,115 per 4E ounce 
following the inclusion of the Kroondal development shaft K6 in operations for 
the first time. 
 
AQPSA Operating costs per ounce (R/oz) 
 
                                                  6E net of 
               4E                6E              by-products 
          (Pt+Pd+Rh+Au)  (Pt+Pd+Rh+Ir+Ru+Au)       (Ni&Cu) 
Kroondal      9,115             7,486               7,277 
 
AQPSA Capital expenditure 
 
Stay-in-business capital expenditure was in line with the mine plan 
and mobile equipment replacement schedule. The K6 Shaft project cost was 
approximately R89 million for FY2014 and is complete with the exception of the 
final power reticulation from the local authority. 
 
                                      Kroondal (100% basis) 
(R'000 unless otherwise stated)         Total     Per 4E oz 
Ongoing Infrastructure Establishment     314,472         730 
Project Capital (K6 shaft)                89,530         208 
Mobile Equipment                         129,008         300 
Total                                    533,011       1,237 
 
P&SA2 at Marikana (Aquarius Platinum - 50%) 
 
Given the continuing low Rand PGM basket prices, Marikana continues 
on care and maintenance until further notice. 
 
Everest Mine 
Similarly the Everest mine remains on care and maintenance until further 
notice. 
 
MIMOSA INVESTMENTS (Aquarius Platinum - 50%) 
 
Mimosa Platinum Mine 
 
- 12-month rolling average DIIR deteriorated to 0.08 per 200,000 
man hours from 0.05 in the previous year 
 
- Production increased by 4% to 2.512m tonnes 
 
- Volumes processed increased by 3% to 2.453m tonnes 
 
- Head grade deteriorated slightly to 3.65g/t 
 
- Recoveries deteriorated slightly to 77% 
 
- PGM production increased by 2% to 221,358 PGM ounces 
 
- Revenue decreased by 4% to $260 million due to lower metal 
prices 
 
- Mining cash costs decreased 3% to $77 per tonne, and PGM ounce 
cost decreased by 2% to $849 before retrenchment costs. 
 
- Mining cash costs constant at $79 per tonne, PGM ounce cost 
increased by 1% to $878 after retrenchment costs. 
 
- Mimosa's cash margin for the period decreased to 24% from 26% 
 
Commentary 
 
Safety, Health and Environment 
 
No fatalities occurred at Mimosa during the year. Three lost-time 
injuries were reported with a commensurate deterioration in the DIIR. 
 
Operations 
 
The Mimosa mine operated very well during the year, enjoying 
cordial industrial relations and meeting most of its production targets. 
 
Regulatory and fiscal environment 
 
During the year, the Zimbabwean political and regulatory 
environment remained challenging for all mining companies operating in the 
country. 
 
Indigenisation 
 
During the course of the year in question Mimosa had frequent 
interaction with the Ministry of Indigenisation and continues to work 
pro-actively towards a sustainable solution but to date no agreements or 
definitive terms have been agreed between Mimosa and the Ministry of 
Indigenisation. 
 
Taxation 
 
New Income Tax Act 
 
The proposed new Income Tax Bill was gazetted in November 2012. The 
bill was presented to Parliament for the first reading in May 2013. It passed 
the second and third reading in Parliament on 25 June 2013 after amendments 
from all relevant stakeholders. However, the President raised reservations 
which Parliament is still considering. 
 
Meanwhile, the income tax rate has remained at 25% of taxable 
income, and withholding tax on technical fees and dividends at 15% and 10% 
respectively. 
 
Finance Act, 2014 
 
The Finance Act which gives legal effect to the proposals made 
through the Budget Statement for 2014 was gazetted on the 4 April 2014. The 
new requirements legislated in the Finance Act include: 
 
- Contributions or donations to Community Ownership Trust are now 
allowable for tax deduction subject to approval of the Trust by the Minister. 
 
- Proposed payment of VAT on un-beneficiated Platinum (15%) 
effective 1 January 2015. 
 
- Disallowing of royalties as a deductible expense against taxable 
income with effect from 1 January 2014 
 
Discussions between the mining sector and the Government of 
Zimbabwe in relation to the last 2 points above are ongoing with a view to 
reaching a solution that will result in these new taxes not being implemented. 
Shareholders will be updated as to any material progress as soon as is 
practical. 
 
Operating Cash Costs 
 
Operating costs increased slightly by 1% from the prior cost 
platform mainly as a result of retrenchment costs following a labour 
rationalisation exercise carried out during the year. 
 
Operating cash costs per ounce ($/oz) before voluntary retrenchment 
costs 
 
                4E                6E               4E net of 
          (Pt+Pd+Rh+Au)   (Pt+Pd+Rh+Ir+Ru+Au)     by-products 
 
                                                 (Ni, Cu & Co) 
Mimosa         849                803                 575 
 
Operating cash costs per ounce ($/oz) after voluntary retrenchment 
costs 
 
                4E                6E               4E net of 
          (Pt+Pd+Rh+Au)   (Pt+Pd+Rh+Ir+Ru+Au)     by-products 
 
                                                 (Ni, Cu & Co) 
Mimosa         878                830                 604 
 
Capital expenditure 
 
Stay in business capital expenditure at Mimosa was $27 million 
($123 per PGM ounce), spent mainly on mobile equipment, drill rigs and LHDs, 
the conveyor belt extension, down dip development and housing projects. 
 
TAILINGS OPERATIONS 
 
Platinum Mile (Aquarius Platinum - 91.7%) 
 
- Material processed decreased by 29% to 2.441m tonnes 
 
- Recoveries decreased by 50% to 7% 
 
- Production decreased by 56% to 5,590 PGM ounces 
 
- Cash costs increased by 39% to R9,165 per PGM ounce. 
 
- Revenue decreased by 56% to R52 million 
 
- The cash margin for the period was negative 2%, a decrease from 
25% the previous year 
 
Commentary 
 
Platinum Mile: 
 
The result for the year was severely impacted by strike action at 
Anglo Platinum's operations in the Rustenburg area starting on 25 January 2014 
and lasting until 24 June 2014. No meaningful analogies can be inferred by 
comparing annual numbers. 
 
The coarse grinding expansion at the operation was successfully 
electromechanically commissioned at a capital cost of R26 million. The 
benefits of this expansion on production yields should become evident in the 
2015 financial year. 
 
Operating cash costs per ounce (R/oz) 
 
                4E               6E               4E net of 
          (Pt+Pd+Rh+Au)  (Pt+Pd+Rh+Ir+Ru+Au)     by-products 
 
                                                 (Ni, Cu& Co) 
PMR           9,165             7,919               7,364 
 
Chromite Tailings Retreatment Plant (CTRP) (Aquarius Platinum - 50%) 
This operation remains on care and maintenance. 
 
CORPORATE MATTERS 
 
Tender Offer and Rights Issue 
 
On 7 April 2014, Aquarius Platinum Limited announced a tender offer 
to purchase a maximum of $225 million in principal amount of convertible bonds 
of the current $298 million in principal amount of the convertible bonds 
outstanding at a repurchase price of $92,000 per $100,000 in principal amount 
of existing convertible bonds. The aggregate nominal amount of convertible 
bonds validly tendered pursuant to the tender offer was $172.6 million. 
 
The repurchase price, which together with accrued interest totalled 
$165.7 million, was paid to security holders in May 2014. 
 
The company advised that the tender offer would be financed upon 
the successful completion of a rights issue to finance part or all of the 
amount payable by the company for the existing convertible bonds accepted for 
repurchase pursuant to the Tender offer. 
 
The company received valid acceptances in respect of 931,250,197 
rights issue shares, representing approximately 95.39 per cent of the total 
number of rights issue shares offered to qualifying shareholders pursuant to 
the rights issue announced by the company on 7 April 2014. The company 
confirms that the shortfall for the remaining 44,956,709 rights issue shares 
were placed by the underwriters. The rights issue grossed $226.1 million 
through the issuance of 976,206,906 new common shares. 
 
Following completion of the rights issue, the company's issued 
share capital consists of 1,464,310,359 common shares. The company holds 
17,047,787 common shares as treasury shares in accordance with Bermudan law. 
Therefore, the total number of voting rights in the company is 1,447,262,572. 
This figure may be used by shareholders as the denominator for the 
calculations by which they determine if they are required to notify their 
interest in, or a change in their interest in, the company under the FCA's 
Disclosure and Transparency Rules. 
 
Full details of the tender offer and Rights Issue can be found at 
www.aquariusplatinum.com 
 
Update on Sale of Assets 
 
The company released details of the planned sale of two non-core 
assets being its interest in the Blue Ridge Mine ("Blue Ridge Transaction") 
and its interest in the Kruidfontein prospecting right on 30 January 2014 
("Kruidfontein Transaction"). In the release the company confirmed its 
expectation that the conditions precedent would be fulfilled in H2 calendar 
2014. The Kruidfontein Transaction was conditional only upon obtaining certain 
approvals from the DMR. Shareholders are advised that these approvals 
including Section 11 approval were obtained in June 2014 and are currently 
awaiting registration at the Department of Mineral Resources titles office. 
Upon completion the Purchaser is obliged to, before 1 December 2014, pay 
Aquarius a total cash consideration of $27 million. Upon receipt of the 
proceeds Aquarius is obliged to pay the previous owners of the Kruidfontein 
prospecting right $10.8 million in cash or Aquarius shares, at Aquarius' sole 
election. 
 
The Blue Ridge Transaction is subject to the fulfilment of 34 
conditions precedent. Substantial progress has been made in terms of 
fulfilling the conditions, but a number of conditions have yet to be 
fulfilled. Aquarius' legal advice is that there appears to be no reason why 
the remaining conditions precedent should not be fulfilled in due course. This 
notwithstanding, shareholders are cautioned that the Blue Ridge Transaction 
involves many parties, and requires the approval of numerous regulators in 
South Africa as well as in the People's Republic of China (PRC) and hence 
execution risk remains significant. 
 
This time line remains the company's base case expectation. Work in 
relation to the fulfilment of the conditions precedent, noted in the releases, 
continues. Shareholders will be informed of any material developments in this 
regard as soon as is practical. 
 
Appointment of Chief Operating Officer 
 
Mr. Rob Schroder, Managing Director of AQPSA, has been appointed to 
the newly created position of Chief Operating Officer (COO) of the Aquarius 
Group. Mr. Schroder will continue with his role as MD of AQPSA and will have 
oversight over the Group's entire mining operations. The appointment of Mr 
Schroder as COO reflects the confidence which the Board of Aquarius has in Mr 
Schroder and is due recognition for the key role which Mr Schroder continues 
to fulfil across the Group's operations. 
 
More information on all corporate matters can be found at 
www.aquariusplatinum.com 
 
See www.aquariusplatinum.com for statistical information 
 
Aquarius Platinum Limited 
Incorporated in Bermuda 
 
Exempt company number 26290 
 
Board of Directors 
 
Nicholas Sibley      Non-executive Chairman 
Jean Nel             Chief Executive Officer 
David Dix            Non-executive 
Tim Freshwater       Non-executive (Senior Independent Director) 
Edward Haslam        Non-executive 
Kofi Morna           Non-executive 
Zwelakhe Mankazana   Non-executive 
Sonja de Bruyn       Non-executive 
Sebotsa 
 
Audit/Risk Committee 
 
David Dix (Chairman) 
Tim Freshwater 
Edward Haslam 
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 
Wessel Phumo                   General Manager: Kroondal 
Mimosa Mine Management 
 
Winston Chitando               Chairman 
Peter Chimboza                 Resident Director 
Fungai Makoni                  Managing Director 
Platinum Mile Management 
 
Richard Atkinson               Managing Director 
Paul Swart                     Financial Director 
Issued capital 
 
At 30 June 2014, the Company had on issue 1,464,310,359 fully paid 
common shares. 
 
Substantial shareholders 30 June 2014    Number of shares  Percentage 
HSBC Custody Nominees (Australia) Limited 
 
                                              110,254,065         7.53 
JP Morgan Nominees Australia Limited           69,919,771         4.77 
 
 
Primary        Australian Securities      Trading Information 
Listing:       Exchange (AQP.AX) 
Premium        London Stock Exchange      ISIN number BMG0440M1284 
Listing:       (AQP.L) 
Secondary      JSE Limited (AQP.ZA)       ADR ISIN number US03840M2089 
Listing: 
                                          Convertible bond ISIN number 
                                          XS0470482067 
 
 
Broker (LSE)           Broker (ASX)           Sponsor (JSE) 
 
Barclays               Euroz Securities       Rand Merchant Bank 
5 The North Colonnade  Level 18 Alluvion      (A division of 
Canary Wharf           58 Mounts Bay Road,    FirstRand Bank 
London E14 4BB         Perth WA 6000          Limited) 
Telephone: +44 (0) 20  Telephone: +61 (0) 8   1 Merchant Place 
7623 2323              9488 1400              Cnr of Rivonia Rd and 
                                              Fredman Drive, Sandton 
                                              2196 
                                              Johannesburg South 
                                              Africa 
 
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        PO Box 7840, Centurion, 0046, South Africa 
Address: 
Telephone:    [phone] 
Facsimile:    [phone] 
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        PO Box 485, South Perth, WA 6951, Australia 
Address: 
Telephone:    [phone] 
Facsimile:    [phone] 
Email:        [e-mail] 
 
For further information please visit www.aquariusplatinum.com or 
contact: 
 
In the United Kingdom and South Africa: In Australia: 
Jean Nel 
[phone]                      Willi Boehm 
 
                                        [phone] 
 
Glossary 
 
A$             Australian Dollar 
Aquarius or    Aquarius Platinum Limited 
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 or $    United States Dollar 
Everest        Everest Platinum Mine 
Great Dyke     A PGE-bearing layer within the Great Dyke Complex in Zimbabwe Reef 
GoZ            Government of Zimbabwe 
g/t            Grams per tonne, measurement unit of grade (1g/t = 1 part per million) 
JORC code      Australasian code for reporting of Mineral Resources and Ore Reserves 
JSE            Johannesburg Stock Exchange 
Kroondal       Kroondal Platinum Mine or P&SA1 at Kroondal 
LHD            Load haul dump machine 
LTIFR          Lost Time Injury Frequency Rate 
Marikana       Marikana Platinum Mine or P&SA2 at Marikana 
Mimosa         Mimosa Mining Company (Private) Limited 
NUM            National Union of Mineworkers 
nm             Not measured 
pcp            previous corresponding period 
PGE(s) (6E)    Platinum group elements plus gold. Five metallic elements commonly 
               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) (4E)    Platinum group metals plus gold. Aquarius reports PGMs as comprising 
               Pt+Pd+Rh plus Au (gold) with Pt, Pd 
               and Rh being the most economic platinoids in the UG2 Reef 
PlatMile       Platinum Mile Resources (Pty) Ltd 
PSA1           Pooling & Sharing Agreement between AQPSA and RPM Ltd on Kroondal 
PSA2           Pooling & Sharing Agreement between AQPSA and RPM Ltd on Marikana 
R or Rand      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. 
RPM Limited    Rustenburg Platinum Mines Limited, a subsidiary of Anglo Platinum Limited 
Tonne          1 metric tonne (1,000kg) 
TARP           Trigger Action Response Procedure 
UG2 Reef       A PGE-bearing chromite layer within the Critical Zone of the Bushveld Complex 
 
 
 
END