Aquarius Platinum Half-year results to 31 December 2014

 
TIDMAQP 
 
AQUARIUS PLATINUM LIMITED 
 
ASX, LSE & JSE 
 
HALF-YEAR RESULTS TO 31 DECEMBER 2014 
 
 Key Points: Financial 
 
Revenue of $113 million comparable to prior corresponding period (pcp) 
 
Group mine EBITDA higher at $18 million (H1 2014: $10 million) due to higher 
production and improved cost management 
 
Share of profit from JV entities: EBITDA $27 million 
 
JV entities contributed a net loss of $49 million after one off non-cash write 
downs of $55 million 
 
Headline loss (before exceptional charges) of $30 million at 2.07 cents per 
share (H1 2014: loss of $22 million at 4.58 cents per share) 
 
Accounting net loss after tax (to IFRS) of $57 million (3.93 cents per share) 
(H1 2014: loss of $24 million at 2.89 cents per share) 
 
Mine operating net cash flow increased by $5 million to a $10 million inflow 
(H1 2014: inflow of $5 million) 
 
Group cash balance at 31 December 2014 of $164 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 
to 0.62 from 0.99 in the pcp 
 
Mimosa's LTIFR of 0.05 makes it the safest underground Platinum mine in 
southern Africa 
 
Group attributable production increased by 5% to 175,831 PGM ounces (H1 2014: 
168,014 PGM ounces) 
 
Kroondal consistently producing at capacity levels with 8 consecutive quarters 
above 105,000 PGM ounces 
 
Kroondal unit costs well controlled increasing by 1% in Rand terms and 
decreasing 7% in Dollar terms due to a weaker Rand 
 
Production in H1 ahead of guidance 
 
Mimosa performed strongly again, continuing to produce at capacity with a 
record H1 production 
 
Mimosa unit costs down 7% compared to the pcp reflecting benefits of the 
rationalisation program implemented in FY2014 
 
Mimosa PGM Dollar price remained weak with a marginal 2% increase compared to 
the pcp 
 
Mimosa Q2 production of >60,000 PGM ounces (50% attributable to Aquarius) 
represents the highest ever quarterly production by Mimosa 
 
PlatMile operation continues to build up production following the end of the 
strike in August 2014 
 
The average US Dollar PGM basket price of $1,165 was in line with the pcp 
 
The average Rand basket price increased by 9% compared to the pcp due to a 
weaker Rand 
 
The Rand weakened by 9% on average against the US Dollar compared to the pcp 
 
Key Points: Strategic 
 
Disposal of the Kruidfontein prospecting rights for $27 million was concluded 
in the half-year 
 
A recognition agreement has been concluded with AMCU at Kroondal 
 
Disposal of Everest mine for R450 million in cash - agreement signed 10 
February 2015 
 
 
 
Commenting on the results, Jean Nel, CEO of Aquarius Platinum, said: 
 
The Group's stated focus on operational improvements in the face of a very 
difficult operating, labour, political and social environment continued to 
yield results in the six months to December 2014. The six months under review 
was characterised by continued operational progress, improved safety 
performance, reduced costs and record production for the Group.  In addition to 
excellent operating performances by both Kroondal and Mimosa, our incremental 
projects progressed satisfactorily during the half-year and the Group's balance 
sheet was strengthened following the sale of non-core assets. We continue to 
expect a difficult operating and metal price environment in the short term 
which directs our focus on operational efficiencies and responsible capital 
stewardship. 
 
Financial results: Half-Year to 31 December 2014 
 
Aquarius recorded a consolidated accounting net loss after tax (IFRS) of $57 
million (the Result) for the half-year (3.93 cents per share). The result 
included the following one off non-cash charges arising in joint venture 
entities: 
 
An impairment of the carrying value of Blue Ridge/Sheba's Ridge investment of 
$26 million following termination of the agreement to sell the Company's 
indirect interests in Blue Ridge Platinum (Pty) Ltd and Sheba's Ridge Platinum 
(Pty) Ltd 
 
Discounting of the RBZ receivable due to Mimosa by $28.5 million. 
 
 
 
EBITDA from controlled entities was $18 million, an $8 million (83%) increase 
from the pcp. The increase in EBITDA was driven by higher Rand basket prices, 
increased production and continued costs discipline. Production attributable to 
Aquarius increased 5% to 175,831 PGM ounces. 
 
 
 
Profit & Production Summary 
 
                     Aquarius       JV     Total   Consolidation   Aquarius 
                    operations   entities            adjustment      Group 
 
Mine EBITDA            $18M        $27M    $45M        ($27M)        $18M 
 
Revenue                $113M       $73M    $186M       ($73M)        $113M 
 
Cost of sales         ($110M)     ($55M)  ($165M)       $55M        ($110M) 
 
Net profit/(loss)      ($8M)     ($49M) * ($57M)         -          ($57M) 
after tax 
 
PGM ozs production    116,511     59,320  175,831        -          175,831 
 
 
* Includes $28 million discounting of RBZ receivable and $26 million impairment 
of Blue Ridge and Sheba's Ridge 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue (PGM sales, interest) for the half-year of $113 million was in line 
with the pcp with increased production offset by a $7 million negative sales 
adjustment. Dollar prices remained unchanged to the pcp at $1,165 per PGM 
ounce. In Rand terms, the PGM basket increased by 9% directly as a result of a 
weaker Rand which also decreased 9% to R10.94, compared to the pcp. In 
Zimbabwe, PGM prices were similarly subdued recording a 2% increase to $1,164 
compared to the pcp. 
 
 
 
Total cash cost of production was $97 million, down $7 million despite a 3% 
increase in production at Kroondal.  This was primarily due to good cost 
control and the weakening Rand which resulted in lower Dollar costs. 
Significantly, Kroondal recorded its eighth consecutive +105,000 PGM ounce 
production quarter, a record for the mine. This is particularly pleasing given 
the ongoing difficult operating conditions. 
 
 
 
Cost per PGM ounce in Dollar terms in South Africa decreased 7% to $870 but 
increased 1% in Rand terms due to an 8% weakening in the Rand/US Dollar 
exchange rate.  In Zimbabwe the cash cost per PGM ounce was $798, a 7% 
reduction demonstrating the impact of the rationalisation program completed at 
the mine in FY2014. Maintaining operating unit cost increases well within 
inflationary targets 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 R10.94 to the US Dollar compared to 
R10.06 in the pcp. During the half-year, Aquarius recorded net foreign exchange 
losses of $0.4 million comprising gains on sales adjustments and revaluation of 
cash, intercompany loans and pipeline debtors. 
 
 
 
Administration costs of $3 million were down $1 million.  Depreciation and 
amortisation for the year of $13 million was lower despite increased production 
due to an increased resource base resulting from the extension of the Kroondal 
mine life. 
 
 
 
Finance costs include $3 million interest on convertible bonds and bank 
borrowings, $2 million of non-cash interest arising from the unwinding of the 
debt portion of the convertible bond and $3 million in non-cash interest 
arising from the unwinding of the net present value of the rehabilitation 
provisions of AQPSA. 
 
Cash balances 
 
Group cash at 31 December 2014 was $164 million, up $27 million from June 2014. 
The increase in cash was mainly attributable to $27 million of proceeds 
received on the sale of Kruidfontein.  In addition to this, the Group paid $12 
million to fund its capital expenditure program, paid $3 million in interest 
and received $15 million of dividends from Mimosa. 
 
 
 
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). 
 
 
 
Sale of assets 
 
Kruidfontein mining rights were sold for $27 million. Aquarius retained the 
gross proceeds of the sale and satisfied settlement of the original vendors 
rights to 40% of the proceeds via the issue of 36,505,657 shares in Aquarius. 
An accounting profit of $1.2 million was recorded after a non-cash adjustment 
of $13 million resulting from the reversal of foreign exchange translation 
reserve following the sale of the entity. 
 
 
 
Reconciliation of cash proceeds to accounting profit: 
 
                                                   $M 
 
Cash proceeds                                    26.8 
 
Tax expense                                      (4.3) 
 
Shares issued to original vendor                 (8.0) 
 
Reversal of foreign currency translation reserve (13.3) 
on disposal * 
 
Accounting profit on sale                        1.2 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
* The Kruidfontein asset, being held by a South African subsidiary with a Rand 
functional currency, has been translated to US dollars each month end since the 
original date of purchase, with any exchange differences going to the foreign 
currency translation reserve (FCTR). The Rand has devalued against the USD 
since the acquisition of Kruidfontein.  In accordance with International 
Accounting Standards when a foreign operation is disposed of, the cumulative 
amount of foreign exchange differences contained within the Foreign Currency 
Translation Reserve is required to be reclassified through the Group's income 
statement.  Accordingly the accounting profit on sale of Kruidfontein has been 
reduced by a non-cash amount of $13.3 million, reflecting the reclassification 
of the cumulative amount of foreign exchange differences relating to 
Kruidfontein up to the date of disposal. 
 
 
 
Everest 
 
Subsequent to half-year end, Aquarius announced on 10 February 2015 that it has 
entered into a conditional agreement to sell its Everest mine and related 
assets to Northam Platinum Limited for an amount of R450 million subject to the 
fulfilment of certain conditions precedent.  A detailed release is available on 
the company's website. 
 
 
 
 
 
Joint venture entities 
 
Mimosa 
 
Mimosa recorded an EBITDA profit attributable to Aquarius of $27 million and a 
net loss before tax of $12 million. The result was achieved on production of 
59,320 PGM ounces attributable to Aquarius. Despite consistent production, the 
97% increase in EBITDA compared to the pcp was driven by higher production (up 
9%), lower unit costs (down 7%) and a marginally higher PGM basket price (up 
2%). 
 
 
 
Cash held in Mimosa at 31 December 2014 was $14 million (100%). 
 
 
 
Mimosa's financial result is provided in the Group Financials table on page 5 
and its operational performance is discussed under the Operating Review section 
of this announcement. 
 
RBZ receivable 
 
During the period under review the Directors have continued to assess progress 
of Zimbabwe's initiatives in relation to indigenisation and progress on the 
issue of Government backed securities to replace RBZ debt.  In the case of the 
latter, draft legislation has been prepared but has not yet been passed by 
parliament.  In addition, the IMF stated in November 2014 that it requires 
further changes to economic policy in Zimbabwe before it will support 
facilitating access to international capital markets by the Government of 
Zimbabwe. 
 
 
 
Having considered the above the Directors believe concluding settlement of the 
RBZ debt via an indigenisation transaction or the creation of treasury bills as 
contemplated by the Government of Zimbabwe is now unlikely to occur within 
twelve months of the balance sheet date, despite the progress initiatives 
underway. 
 
 
 
Accounting standards require that non-interest bearing receivables deemed to be 
long term be discounted using an effective interest rate to recognise the delay 
in receipt of funds.  The Company has attempted to determine an appropriate 
discount rate, however due to the absence of ratings and public debt issues in 
Zimbabwe this process has proven problematic.  In view of the difficulty 
involved in sourcing a reliable discount rate and the difficulty in reliably 
estimating the time frame to secure full settlement of the RBZ debt, Aquarius 
has recognised a non-cash expense of $28.5m in the share of loss from joint 
ventures, equal to its share of the full amount of the RBZ receivable. 
 
 
 
Blue Ridge and Sheba's Ridge 
 
Blue Ridge and Sheba's Ridge recorded a net loss after tax of $29 million. This 
result includes the $26 impairment charge as well as care and maintenance and 
interest costs. 
 
 
 
On 14 October 2014, the agreement to sell the Company's indirect interests in 
Blue Ridge Platinum (Pty) Ltd and Sheba's Ridge Platinum (Pty) Ltd was 
terminated.  As a consequence the carrying amount of the Blue Ridge and Sheba's 
Ridge assets has been reviewed resulting in an impairment charge of $26 million 
being included in the share of loss from joint venture entities. 
 
 
 
 
 
Group Financials by Operation 
 
                                          Kroondal Marikana Everest Mimosa  PMR 
 
PGM ounces (4E) (attributable)             111,682        -       - 59,320 4,829 
 
                   $M 
 
Revenue                                        106        -       -     73     4 
 
Cost of sales - mining, processing &          (91)      (1)     (1)   (46)   (3) 
admin 
 
Cost of sales - depreciation &                (10)        -     (1)    (9)   (1) 
amortisation 
 
Gross profit/(loss)                              4      (1)     (2)     18   (1) 
 
Administrative costs                             -        -       -      -     - 
 
Foreign exchange gain/(loss)                     6        -       -      -     - 
 
Finance costs                                    -        -       -      -     - 
 
 
Impairment losses                                -        -       -      -     - 
 
Profit on sale of assets                         -        -       -      -     - 
 
Community share ownership trust                  -        -       -    (1)     - 
 
Discounting of RBZ receivable                    -        -       -   (29)     - 
 
Share of loss from joint venture entities        -        -       -      -     - 
 
Profit/(loss) before income tax                 10      (1)     (2)   (12)   (1) 
 
 
 
 
 
 
                                               Reconciliation to 
                     Ridge Corporate  Total      Consolidated      Consolidated 
                                                 Information * 
 
PGM ounces (4E)          -         - 175,831 
(attributable) 
 
         $M 
 
Revenue                  -         3     186                  (73)          113 
 
Cost of sales - 
mining, processing &     -         -   (143)                    47         (97) 
admin 
 
Cost of sales - 
depreciation &           -         -    (22)                     9         (13) 
amortisation 
 
Gross profit/(loss)      -         3      21                  (17)            4 
 
Administrative costs     -       (3)     (3)                     -          (3) 
 
Foreign exchange         -       (6)       -                     -            - 
gain/(loss) 
 
Finance costs            -      (10)    (10)                     2          (8) 
 
Impairment losses     (26)       (1)    (27)                    26          (1) 
 
Profit on sale of        -         1       1                     -            1 
assets 
 
Community share          -         -     (1)                     1            - 
ownership trust 
 
Discounting of RBZ       -         -    (29)                    29            - 
receivable 
 
Share of loss from 
joint venture            -         -       -                  (49)         (49) 
entities 
 
Profit/(loss) before  (26)      (14)    (47)                   (9)         (56) 
income tax 
 
 
 
 
* In the consolidated financial statements the Mimosa and Blue Ridge operating 
segments are accounted for using the equity method. The table above provides a 
reconciliation of the segment information to the IFRS financial statements. 
 
 
 
 
 
                           Aquarius Platinum Limited 
 
                         Consolidated Income Statement 
 
                       Half-Year ended 31 December 2014 
 
                                     $'000 
 
 
 
                                             Half-Year Ended        Year 
                                                                   Ended 
 
                                     Note   31/12/14  31/12/13  30/06/14 
 
Attributable Production (PGM Ounces)       175,831   168,014   331,642 
 
Revenue                              (i)   113,263   113,173   233,056 
 
Cost of sales (including D&A)        (ii)  (109,726) (120,751) (231,158) 
 
Gross profit/(loss)                        3,537     (7,578)   1,898 
 
Other income                               110       72        174 
 
Administrative costs                 (iii) (3,238)   (4,336)   (7,353) 
 
Foreign exchange (loss)/gain         (iv)  (403)     2,731     1,843 
 
Finance costs                         (v)  (7,814)   (15,295)  (28,091) 
 
Impairment losses                          (574)     (2,487)   (3,084) 
 
Profit on repurchase of bonds              -         -         10,925 
 
Profit/(loss) on sale of assets            1,126     (31)      653 
 
Closure, transition and                    -         -         5,342 
rehabilitation reversal 
 
Share of (loss)/profit from joint    (vi)  (49,187)  166       5,055 
venture entities 
 
Loss before income tax                     (56,443)  (26,758)  (12,638) 
 
Income tax (expense)/benefit               (293)     2,730     (544) 
 
Net loss for the period                    (56,736)  (24,028)  (13,182) 
 
Non-controlling interests                  95        12        (134) 
 
Loss attributable to equity holders 
of                                         (56,831)  (24,040)  (13,048) 
 
Aquarius Platinum Limited 
 
Loss per share (basic - cents)                (3.93)    (2.89)    (1.38) 
 
 
 
 
Notes on the Consolidated Income Statement 
 
Revenue of $113 million is comparable to the pcp despite higher production due 
to $7 million of negative sales adjustments. 
 
Cost of sales were 9% lower due to a 9% weakening of the Rand compared to the 
pcp.  In Rand terms, unit costs increased 1% per PGM ounce in South Africa. 
 
Relates to group administration costs inclusive of costs associated with 
business development activities, regulatory compliance, legal and financial 
advisory. 
 
Foreign exchange includes gains/losses on cash, intercompany loans, pipeline 
debtors and sales adjustments due to the movement of the Dollar against other 
currencies. 
 
Finance costs include $3 million interest on convertible bonds and bank 
borrowings, $2 million of non-cash interest arising from the unwinding of the 
debt portion of the convertible bond and $3 million in non-cash interest 
arising from the unwinding of the net present value of the rehabilitation 
provisions of AQPSA. 
 
Share of (loss)/profit from joint venture entities comprises operating profit 
of $5 million offset by impairment of Blue Ridge/Sheba's Ridge of $26 million 
and discounting of the RBZ receivable of $28.5 million. 
 
 
 
                           Aquarius Platinum Limited 
 
                       Consolidated Cash Flow Statement 
 
                       Half-year ended 31 December 2014 
 
                                     $'000 
 
 
 
                                           Half-year ended  Year ended 
 
                                    Note  31/12/14 31/12/13   30/06/14 
 
Net operating cash inflow            (i)  10,310   4,706    21,092 
 
Net investing cash inflow/(outflow) (ii)  14,754   (10,989) (27,224) 
 
Net financing cash inflow           (iii) 9,329    9,912    62,271 
 
Net increase in cash held                 34,393   3,629    56,139 
 
Opening cash balance                      136,820  77,773   77,773 
 
Exchange rate movement on cash      (iv)  (7,002)  1,596    2,908 
 
Closing cash balance                      164,211  82,998   136,820 
 
 
 
 
Notes on the Consolidated Cash Flow Statement 
 
Includes $108 million inflow from sales, $101 million paid to suppliers and $3 
million interest received. 
 
Includes $27 million proceeds from the sale of Kruidfontein and $12 million of 
payments for property, plant & equipment and mine development costs. 
 
Includes $3 million interest paid, $6 million proceeds from borrowings, $7 
million repayment of borrowings and $15 million dividends from Mimosa. 
 
Reflects movement of other currencies against the Dollar. 
 
 
 
                           Aquarius Platinum Limited 
 
                          Consolidated Balance Sheet 
 
                              At 31 December 2014 
 
                                     $'000 
 
 
 
                                                    Half-year ended     Year 
                                                                        ended 
 
                                            Note   31/12/14  31/12/13  30/06/14 
 
Assets 
 
Cash assets                                         164,211    82,998   136,820 
 
Current receivables                         (i)      27,551    22,901    30,104 
 
Other current assets                        (ii)     16,590    16,704    15,246 
 
Mining assets                              (iii)    198,870   211,024   209,211 
 
Intangible asset                            (iv)     49,230    55,696    54,499 
 
Investments in joint venture entities       (v)     152,437   204,817   230,410 
 
Other non-current assets                    (vi)     41,944    67,085    41,185 
 
Total assets                                        650,833   661,225   717,475 
 
Liabilities 
 
Current liabilities                        (vii)    155,287    35,822    40,123 
 
Non-current interest-bearing liabilities   (viii)     2,207   274,194   118,919 
 
Other non-current liabilities               (ix)     80,497    93,466    84,665 
 
Total liabilities                                   237,991   403,482   243,707 
 
Net assets                                          412,842   257,743   473,768 
 
Equity 
 
Issued capital                                       75,098    24,408    73,216 
 
Treasury shares                                    (25,871)  (27,331)  (26,239) 
 
Reserves                                            775,186   626,417   781,692 
 
Accumulated losses                                (417,281) (371,442) (360,450) 
 
Total equity attributable to equity 
holders 
                                                    407,132   252,052   468,219 
of Aquarius Platinum Limited 
 
Non-controlling interests                   (x)       5,710     5,691     5,549 
 
Total equity                                        412,842   257,743   473,768 
 
 
 
 
Notes on the Consolidated Balance Sheet 
 
Reflects debtors receivable on PGM concentrate sales. 
 
Reflects PGM concentrate inventories, reef stockpiles and consumables stores. 
 
Represents mining assets, plant and equipment at Kroondal, Marikana and 
Everest. 
 
Includes intangibles relating to contract value acquired on the acquisition of 
equity interest in Platinum Mile Resources (Pty) Ltd. 
 
Reflects investments in joint venture entities - Mimosa, Blue Ridge and Sheba's 
Ridge. 
 
Includes the recoverable portion of rehabilitation provision from Anglo 
Platinum of $9 million, receivable of $6 million representing the net 
realizable value of Ridge assets, investments in rehabilitation trusts of $14 
million and AQPSA deferred tax asset of $13 million. 
 
Includes convertible notes due December 2015 of $120 million, creditors and 
other payables of $26 million, AQPSA equipment leases of $2 million, income tax 
payable of $3 million and provisions of $4 million. 
 
Represents AQPSA equipment leases and now excludes convertible notes. 
 
Includes deferred tax liabilities of $16 million, provision for closure costs 
of $63 million and rehabilitation obligations on P&SA1 and P&SA2 structures of 
$2 million. 
 
Non-controlling interests reflects the 8.3% outside equity interest of Platmile 
Resources (Pty) Ltd. 
 
 
 
OPERATING REVIEW 
 
This section contains summarised operating reviews of each of the Company's 
operations. Full operating statistics are provided on page 17 of this report, 
and other updates relevant to all operations can be found under Corporate 
Matters on page 16. 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 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 37% to 0.62 per 200,000 man hours 
from 0.99 the previous year 
 
Production improved by 3% to 3.8 million tonnes 
 
Volumes processed increased to 3.7m tonnes 
 
Head grade deteriorated slightly to 2.39 g/t from 2.4g/t 
 
Recoveries increased by 1% to 79% 
 
PGM production increased by 3% to 223,363 PGM ounces 
 
Revenue increased by 8% to R2.3 billion compared to the previous financial year 
due improved production coupled with 9% weakening in the Rand Dollar exchange 
rate 
 
Mining cash costs increased by 1% to R542 per tonne (making Kroondal the most 
efficient underground platinum mine in South Africa on a R/t basis), and costs 
per PGM ounce increased by 1% to R8,963 
 
Kroondal's cash margin for the period rose from 10% to 13% 
 
 
 
Commentary - Kroondal 
 
 
 
Safety, Health and Environment 
 
As previously reported, regrettably a fatal incident occurred on 11 October 
2014 when Mr Pedro Tafulane Nhabinde, a Team Leader at Kwezi Shaft, tragically 
lost his life whilst barring during safe declaration. Our deepest condolences 
go to his family and friends. 
 
 
 
The Kroondal operations ended the half-year with an improved DIIR compared to 
the pcp. 
 
 
 
Operations 
 
Production for the half-year improved by 3% to 3.8 million tonnes.   During the 
half-year, the Kroondal work force maintained a positive outlook with open 
communication channels on all levels.  A recognition agreement was concluded 
with AMCU in early January 2015.  Negotiations were conducted in a mature 
manner which management would like to commend AMCU for. 
 
 
 
Operating Cash Costs 
 
Cash costs at Kroondal increased by 1% to R8,963 per 4E ounce. 
 
 
 
AQPSA Operating costs per ounce (R/oz) 
 
                4E                  6E             6E net of by-products 
 
           (Pt+Pd+Rh+Au)   (Pt+Pd+Rh+Ir+Ru+Au)            (Ni&Cu) 
 
Kroondal       8,963              7,355                    7,150 
 
 
 
 
 
 
AQPSA Capital expenditure 
 
Stay-in-business capital expenditure was in line with the mine plan and mobile 
equipment replacement schedule. 
 
 
 
                                     Kroondal (100% basis) 
 
 (R'000 unless otherwise stated)       Total    Per 4E oz 
 
Ongoing Infrastructure Establishment   202,215         905 
 
Project Capital (K6 shaft)              11,914          53 
 
Mobile Equipment                        48,334         216 
 
Total                                  262,463       1,175 
 
 
 
 
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 remained on care and maintenance during the half-year. 
 Everest will continue to be on care and maintenance until the Competition 
Commission approval for the sale of Everest to Northam has been obtained, at 
which time responsibility for Everest related costs will become the 
responsibility of Northam. 
 
 
 
 
MIMOSA INVESTMENTS (Aquarius Platinum - 50%) 
 
 
Mimosa Platinum Mine 
 
12-month rolling average DIIR improved to 0.05 per 200,000 man hours from 0.10 
in the previous corresponding half  year 
 
Production increased by 5% to 1.3 million tonnes 
 
Volumes processed increased by 5% to 1.3 million tonnes 
 
Head grade was constant at 3.64g/t 
 
Recoveries improved slightly to 78% 
 
PGM production increased by 9% to 118,641 PGM ounces 
 
Revenue decreased by 26% to $146 million due to lower metal prices and sales 
adjustments of $7 million 
 
Mining cash costs decreased 7% to $70 per tonne, and PGM ounce cost decreased 
by 7% to $798 
 
Mimosa's cash margin for the period increased to 35% from 18% 
 
 
 
Commentary 
 
 
 
Safety, Health and Environment 
 
No fatalities occurred at Mimosa during the half-year. One lost-time injury was 
reported during the period in line with improvement in 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 half-year, the Zimbabwean political and regulatory environment 
remained uncertain in a number of respects.  Significant regulatory issues are 
as follows: 
 
 
 
Indigenisation 
 
Mimosa continued to interact with the Ministry of Indigenisation and Ministry 
of Mines to work towards a sustainable solution but to date no agreements or 
definitive terms have been agreed between Mimosa and the Ministry of 
Indigenisation. 
 
 
 
15% Export Levy on un-beneficiated PGMs 
 
In the 2015 National Budget Statement, the Minister proposed the deferment of 
the 15% export levy on un-beneficiated platinum to January 2017. However, the 
Finance Act (No 3) of 2014 which gives legal effect to the budget proposals did 
not include the deferment of the 15% tax on un-beneficiated PGMs. This 
effectively meant that the tax was not legally suspended, and if implemented, 
will have a significant impact on the company. The company is engaging the 
authorities in consultation with the Chamber of Mines to seek clarity on the 
issue. 
 
 
 
Royalties 
 
The proposal to render royalties payable by Mimosa non-deductible for income 
tax purposes was implemented with effect from the year of assessment beginning 
on 1 January 2014, and therefore impacted Mimosa from the start of the 2014 
financial year on 1 July 2013.  This position has remained in the 2015 national 
budget.  It has and will continue to negatively impact the company. The 
financial impact of the non-deductibility of royalties was $4.2 million for the 
financial year to June 2014 and $2.6 million for the half-year to December 
2014, 50% of which is attributable to Aquarius. 
 
 
 
New Income Tax Act 
 
The proposed new Income Tax Bill was gazetted in November 2012. However, the 
President raised reservations which Parliament is still considering. The income 
tax rate has remained at 25% of taxable income. However, the new Finance Act 
(No3) 2014 introduced an Aids levy (3%) on corporate tax for mining companies. 
Previously, mining companies were exempt from the Aids Levy. This effectively 
increased the corporate tax rate from 25% to 25.75%. 
 
 
 
Operating Cash Costs 
 
Operating costs decreased by 7% from the pcp mainly as a result of the impact 
of increased production as well as the benefits emanating from labour cost 
savings following the labour rationalisation exercise carried out during the 
last half of prior year. 
 
 
 
Operating cash costs per ounce ($/oz) 
 
                4E                   6E               4E net of by-products 
          (Pt+Pd+Rh+Au)     (Pt+Pd+Rh+Ir+Ru+Au) 
                                                          (Ni, Cu & Co) 
 
Mimosa         798                  753                        540 
 
 
 
 
Capital expenditure 
 
Stay in business capital expenditure at Mimosa was $13.8 million ($117 per PGM 
ounce), spent mainly on mobile equipment, drill rigs, LHDs, the conveyor belt 
extension and down dip development. 
 
 
 
TAILINGS OPERATIONS 
 
Platinum Mile (Aquarius Platinum - 91.7%) 
 
Material processed was 2,374m tonnes 
 
Recoveries were 11% 
 
Production amounted to 4,829 PGM ounces 
 
Cash costs were R7,985 per PGM ounce. 
 
Revenue was R46 million 
 
The cash margin for the period was 13% 
 
 
 
Commentary 
 
 
 
Platinum Mile: 
 
The operation resumed production after the devastating strikes in the platinum 
sector during August 2014. For this reason no meaningful comparison can be 
inferred by comparing half-year results to those of prior periods. 
 
 
 
It is expected that Anglo Platinum will start the commissioning of their 
Waterval East and West dump re-treatment project. This project could result in 
some 280,000 tons of additional feed being treated at the operation. Current 
estimates are that commissioning of this project will start during the first 
half of 2015. The increase in feed volumes and efficiency improvements at the 
operation should result in increased production yields for the rest of the 
ensuing financial year. 
 
Operating cash costs per ounce (R/oz) 
 
            4E                    6E               4E net of by-products 
       (Pt+Pd+Rh+Au)     (Pt+Pd+Rh+Ir+Ru+Au) 
                                                       (Ni, Cu& Co) 
 
PMR        7,985                6,832                      6,323 
 
 
 
 
 
 
Chromite Tailings Retreatment Plant (CTRP) (Aquarius Platinum - 50%) 
This operation remains on care and maintenance. 
 
 
 
 
 
CORPORATE MATTERS 
 
Changes to Board responsibilities 
 
Nicholas Sibley, who has been a Director since 1999 and Chairman since 2002 
retires from the Board of Aquarius with effect from 28 February 2015.  Sir 
Nigel Rudd, who was appointed to the Board with effect from 1 November 2014 as 
Chairman designate, will assume the Chairmanship. 
 
 
 
The Board of Aquarius would like to extend its deepest gratitude to Mr. Sibley 
for his many years to service to the Company.  His contribution during this 
tenure was enormous. We wish him the very best in his retirement. 
 
 
 
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 
 
Sir Nigel Rudd         Chairman Designate 
 
Jean Nel               Chief Executive Officer 
 
David Dix              Non-executive 
 
Tim Freshwater         Non-executive (Senior Independent Director) 
 
Edward Haslam          Non-executive 
 
Kofi Morna             Non-executive 
 
Zwelakhe Mankazana     Non-executive 
 
Sonja de Bruyn Sebotsa Non-executive 
 
 
 
 
Audit/Risk Committee 
 
David Dix (Chairman) 
 
Tim Freshwater 
 
Edward Haslam 
 
Kofi Morna 
 
Sir Nigel Rudd 
 
Nicholas Sibley 
 
 
 
Remuneration Committee 
 
Edward Haslam (Chairman) 
 
David Dix 
 
Zwelakhe Mankazana 
 
Sir Nigel Rudd 
 
Nicholas Sibley 
 
 
 
Nomination Committee 
 
Sonja de Bruyn Sebotsa (Chairman) 
 
Edward Haslam 
 
Tim Freshwater 
 
Kofi Morna 
 
Sir Nigel Rudd 
 
Willi Boehm 
 
 
 
Chief Operating Officer 
 
Robert Schroder 
 
 
 
Company Secretary 
 
Willi Boehm 
 
 
 
AQPSA Management 
                                    Mimosa Mine Management 
 
 
Robert Schroder                     Winston Chitando 
Managing Director 
                                    Chairman 
Jean 
Nel                                 Peter 
Executive Director                  Chimboza 
                                    Resident Director 
Wessel Phumo 
General Manager: Kroondal           Fungai Makoni 
                                                                         Managing 
                                    Director 
 
 
 
 
 
 
Platinum Mile Management 
 
 
 
Richard Atkinson 
Managing Director 
 
Paul Swart 
Financial Director 
 
 
 
 
 
 
Issued capital 
 
At 31 December 2014, the Company had on issue 1,501,979,560 fully paid common 
shares. 
 
 
 
Substantial shareholders 31 December 2014    Number of shares  Percentage 
 
HSBC Custody Nominees (Australia) Limited       98,959,287        6.59 
 
JP Morgan Nominees Australia Limited            59,886,092        3.99 
 
 
 
 
Primary        Australian Securities Exchange  Trading Information 
Listing:       (AQP.AX) 
 
Premium        London Stock Exchange (AQP.L)   ISIN number BMG0440M1284 
Listing: 
 
Secondary      JSE Limited (AQP.ZA)            ADR ISIN number US03840M2089 
Listing: 
 
                                               Convertible bond ISIN number 
                                               XS0470482067 
 
 
 
 
Broker (LSE) 
                     Broker (ASX)         Sponsor (JSE) 
 
 
Barclays             Euroz Securities 
5 The North          Level 18 Alluvion 
Colonnade            58 Mounts Bay Road,  Rand Merchant Bank 
Canary Wharf         Perth WA 6000        (A division of FirstRand Bank 
London E14 4BB       Telephone: +61 (0) 8 Limited) 
Telephone: +44 (0)   9488 1400            1 Merchant Place 
20 7623 2323                              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 Address:       PO Box 7840, Centurion, 0046, South Africa 
 
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 Address:       PO Box 485, South Perth, WA 6951, Australia 
 
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 Aquarius Platinum Limited 
or AQP 
 
AQPSA    Aquarius Platinum (South Africa) (Pty) Ltd 
 
ACS(SA)  Aquarius Platinum (SA) Corporate Services (Pty) Ltd 
 
BEE      Black Economic Empowerment 
 
BRPM     Blue Ridge Platinum Mine 
 
CTRP     Chrome Tailings Retreatment Operation. Consortium comprising Aquarius 
         Platinum (SA) (Corporate Services) (Pty) Limited (ASACS), Ivanhoe 
         Nickel and Platinum Limited and Sylvania South Africa (Pty) Ltd 
         (SLVSA). 
 
DIFR     Disabling injury frequency rate, being the number of lost-time 
         injuries expressed as a rate per 1,000,000 man-hours worked 
 
DIIR     Disabling injury incidence rate, being the number of lost-time 
         injuries expressed as a rate per 200,000 man-hours worked 
 
DME      formerly South African Government Department of Minerals and Energy 
 
DMR      South African Government Department of Mineral Resources, formerly the 
         DME 
 
Dollar   United States Dollar 
or $ 
 
Everest  Everest Platinum Mine 
 
Great    A PGE-bearing layer within the Great Dyke Complex in Zimbabwe 
Dyke 
Reef 
 
GoZ      Government of Zimbabwe 
 
g/t      Grams per tonne, measurement unit of grade (1g/t = 1 part per million) 
 
JORC     Australasian code for reporting of Mineral Resources and Ore Reserves 
code 
 
JSE      Johannesburg Stock Exchange 
 
Kroondal Kroondal Platinum Mine or P&SA1 at Kroondal 
 
LHD      Load haul dump machine 
 
LTIFR    Lost Time Injury Frequency Rate 
 
Marikana Marikana Platinum Mine or P&SA2 at Marikana 
 
Mimosa   Mimosa Mining Company (Private) Limited 
 
NUM      National Union of Mineworkers 
 
nm       Not measured 
 
pcp      previous corresponding period 
 
PGE(s)   Platinum group elements plus gold. Five metallic elements commonly 
(6E)     found together which constitute the platinoids (excluding Os 
         (osmium)). These are Pt (platinum), Pd (palladium), Rh (rhodium), Ru 
         (ruthenium), Ir (iridium) plus Au (gold) 
 
PGM(s)   Platinum group metals plus gold. Aquarius reports PGMs as comprising 
(4E)     Pt+Pd+Rh plus Au (gold) with Pt, Pd and Rh being the most economic 
         platinoids in the UG2 Reef 
 
PlatMile Platinum Mile Resources (Pty) Ltd 
 
PSA1     Pooling & Sharing Agreement between AQPSA and RPM Ltd on Kroondal 
 
PSA2     Pooling & Sharing Agreement between AQPSA and RPM Ltd on Marikana 
 
R or     South African Rand 
Rand 
 
Ridge    Ridge Mining Limited 
 
RBZ      Reserve Bank of Zimbabwe 
 
ROM      Run of mine. The ore from mining which is fed to the concentrator 
         plant. This is usually a mixture of UG2 ore and waste. 
 
RPM      Rustenburg Platinum Mines Limited, a subsidiary of Anglo Platinum 
Limited  Limited 
 
Tonne    1 metric tonne (1,000kg) 
 
TARP     Trigger Action Response Procedure 
 
UG2 Reef 
 
 
                         A PGE-bearing chromite layer within the Critical Zone 
of the Bushveld Complex 
 
 
 
END