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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Aquarius Plat. | LSE:AQP | London | Ordinary Share | BMG0440M1284 | COM SHS USD0.05 |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 13.50 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMAQP Aquarius Platinum Limited Financial and Production Results to 31 March 2015 Highlights Attributable production for the quarter from operating mines was 84,792 PGM ounces - 6% higher compared to the previous corresponding period ended March 2014 (pcp), quarter-on-quarter production decreased 5% due to a shorter production quarter Group production for year to date remains ahead of guidance Cash costs increases at Kroondal remained below inflationary targets increasing 1% for the nine months ended March 2015 compared to the nine months ended March 2014, although quarter-on-quarter costs increased 7%, driven by less production shifts and stock pile reduction over Christmas holidays Cash costs at Mimosa significantly lower, 8% for the nine months ended 31 March 2015 compared to the nine months ended March 2014, while quarter-on-quarter costs increased 2% Average PGM basket price decreased 4% quarter-on-quarter in Dollar terms, down 9% compared to the pcp The Rand weakened against the US Dollar by 5% on average quarter-on-quarter - down 8% compared to pcp Revenue down 2% to $50 million (Q2 2015: $51 million) in line with lower production and low prices Mine EBITDA marginally up at $4.4 million (Q2 2015: $3.6 million), down $6.7 million compared to pcp due to a $6 million negative sales adjustment caused by lower PGM prices Attributable cash balance increased by $2 million during the quarter to $174 million (of which $13 million is held in JV entities) Q3 2015 Operating Results Summary Kroondal Mimosa Platinum Mile 4E PGM Production Total (100% basis) 107,089 57,391 2,552 Attributable 53,544 28,696 2,552 4E Basket Price R/oz 12,446 12,187 $/oz 1,062 1,036 1,039 Cash Costs (4E basis) R/oz 9,560 9,327 $/oz 815 799 795 Cash Margin (%) 6 21 3 Stay-in-Business Capex R/oz 698 0 $/oz 90 119 0 Commenting on the results, Jean Nel, CEO Aquarius Platinum said: Despite the challenging operating and macro environment, Aquarius recorded another credible operating result and made progress on a number of strategic initiatives during the quarter. Most importantly both Kroondal and Mimosa delivered production ahead of guidance and managed to contain annualised cost increases well below inflation, whilst continuing to improve its longer term safety record. Kroondal delivered a record 9th consecutive quarter of PGM production in excess of 105,000 ounces with annualised cost increases well below inflation, a credible result that could have been much better had it not been for the 113,000 tonnes of lost production (valued at R73 million) due to six Section 54 stoppages imposed on Kroondal by the DMR in the quarter. In Zimbabwe, Mimosa's strong production record continued uninterrupted while costs were maintained below $800 PGM ounce for the second consecutive quarter. The combined operational efforts at Kroondal and Mimosa contributed to the company increasing its cash levels slightly to $174 million on an attributable basis, despite the Dollar metal basket price reducing during the quarter by 4%. During the quarter work on fulfilling the conditions precedent to the sale of the Everest mine to Northam, first announced on 10 February 2015, also continued and Part A of the sale become unconditional on 22 April 2015 with the result that Aquarius is entitled to receive the Part A proceeds of R400 million on 26 June 2015. A critical work stream during the quarter entailed the three platinum producers in Zimbabwe continuing their engagement with the Government of Zimbabwe aimed at resolving the 15% royalty on the export of unrefined platinum which was introduced in January 2015. Although not yet resolved Aquarius is satisfied with progress made to date and remain optimistic that the matter will be resolved in due course. Management's focus in the short term will remain consistently on maintaining safety, production and cost discipline, a view informed by our assessment that at a macro level there is little suggesting that Dollar metal prices may strengthen materially in the short term. Production by mine Quarter ended PGMs (4E) Mar 2015 Dec 2014 % Change Mar 2014 % Change Kroondal 107,089 111,115 (4) 107,818 (1) Mimosa 57,391 60,842 (6) 51,907 11 Platinum Mile 2,552 2,996 (15) 289 783 Total 167,032 174,953 (5) 160,014 4 Production by mine attributable to Aquarius (Operating mines) Quarter ended PGMs (4E) Mar 2015 Dec 2014 % Change Mar 2014 % Change Kroondal 53,544 55,557 (4) 53,909 (1) Mimosa 28,696 30,421 (6) 25,954 11 Platinum Mile 2,552 2,996 (15) 289 783 Total 84,792 88,974 (5) 80,152 6 Aquarius Group quarterly attributable production (PGM ounces) to 31 March 2015 See www.aquariusplatinum.com for graph Market Summary After an initial rise at the start of January, the price of platinum continued its recent downward trend falling to its lowest level in over 5 years, ending the quarter at $1,141 per ounce (down 6%). Palladium also struggled across the quarter, weighed down by a weak end to March which saw the metal finish 8% lower over the period closing at $736 per ounce. More recently, Platinum imports into China fell by 58% year on year to 91.2koz across the last week of March, the weakest since November 2008, impacted in particular by a lack of demand for jewellery from China. Given the weakness in China's recent trade data and the weak volumes on the Shanghai Gold Exchange, the near term looks uncertain for platinum, but in the longer term demand outside of the jewellery sector should provide support for prices. Gold prices finished the quarter marginally higher after rallying throughout January to highs of $1,300 per ounce, however a sharp fall in February saw the metal close only 0.2% higher over the quarter at $1,184 per ounce. Palladium along with the rest of the PGM complex suffered as evident from the latest weekly import data - Palladium imports fell 54% year on year to 33.2koz in the last week of March, the lowest since January 2009. Palladium imports have trended lower since the middle of last year as auto sales growth slowed, falling 0.2% in February year on year, declining for the first time since February 2013. The precious metal did however form a small rally during the period climbing to $829 per ounce by early March, however this was not sustained moving back into negative territory. The average Rand-Dollar exchange rate weakened during the quarter by 5% from R11.53 to R12.14. Since then, the Rand has weakened further 1% in the first two weeks of April, and trending around a level of R12.2. 12-month individual PGM prices to March 2015 (US$/oz) 12-month PGM basket prices to March 2015 (US$ and ZAR per PGM basket ounce) 12-month Rand-Dollar exchange rate to March 2015 (ZAR/US$) See www.aquariusplatinum.com for graph Average PGM basket prices achieved at Aquarius operations Quarter ended US$ per PGM ounce (4E) Mar 2015 Dec 2014 % Change Mar 2014 % Change Kroondal 1,062 1,090 (3) 1,179 (10) Mimosa 1,036 1,100 (7) 1,112 (7) Platinum Mile 1,039 1,090 (5) 1,179 (12) Weighted Avg. 1,053 1,097 (4) 1,157 (9) Financials Aquarius recorded an on-mine EBITDA profit of $4.4 million from controlled entities for the quarter ended 31 March 2015, marginally higher compared to the December 2014 quarter. This was despite a 5% reduction in production in the March quarter, a shorter production quarter due to the seasonal holidays. Compared to the pcp (March 2014) EBITDA was adversely impacted by $6 million adverse negative sales adjustments. The result reflects the material impact price decreases have on cash flows and results in the present low PGM price environment. Aquarius recorded a consolidated accounting net loss after tax (IFRS) of $8 million for the quarter. Profit & Production Summary March 2015 Quarter Aquarius JV Total Consolidation Aquarius operations entities adjustment Group Mine EBITDA $4.4M $8M $12.4M ($8M) $4.4M Revenue $50.2M $32M $82.2M ($32M) $50.2M Cost of sales ($51.2M) ($29M) ($80.2M) $29M ($51.2M) Net profit/(loss) ($6.3M) ($1.8M) ($8.1M) - ($8.1M) after tax PGM ozs production 56,096 28,696 84,792 - 84,792 Revenue was 2% lower quarter on quarter on lower production (due to a shorter production quarter) and lower prices. Compared to the pcp, revenue was $10 million lower despite an increase in production due to $6 million adverse sales adjustments caused by decreasing prices. In Rand terms, PGM prices were 1% lower compared to the pcp and 9% lower in Dollar terms due to a weaker Rand which depreciated 8% compared to the pcp. Group production for the quarter was 6% higher compared to the pcp and remains within guidance for the year. On a quarter on quarter comparison, production was 5% lower due to the March quarter having less working days due to seasonal holidays. The Kroondal mine continued to excel maintaining production in excess of 105,000 PGM ounces (50% attributable to Aquarius) by drawing from stockpile to mitigate lower production shifts due to the Christmas holiday period. Production at joint venture entity Mimosa remained strong up 10% compared to the pcp. Production at PlatMile which resumed in July 2014 and yet to achieve steady state production was down 15% in the quarter because of planned maintenance. Total cost of sales of $51 million was 7% lower compared to the pcp, despite a 6% increase in production, due to a 8% weakening in the Rand/Dollar exchange rate. In Rand terms, total cost of sales was 1% higher compared to the pcp. Kroondal's unit costs for the nine months to 31 March 2015 remain within inflationary targets having increased 1% compared to the pcp. For the quarter under review, Kroondal's cash costs per ounce in Rand terms increased 7% quarter on quarter but only 2% in Dollar terms due to the weaker Rand. This increase in costs was driven primarily by lower production than the record December quarter, resulting in (as previously guided) increase in reportable cash costs from the treatment of the ore stock pile during the December Christmas break. The good production performance at Kroondal was achieved notwithstanding the mine encountering a number of operational challenges. Mimosa's unit costs of $799 per PGM ounce for the nine months to 31 March 2015 were 8% lower compared to the pcp in line with efficiency initiatives introduced during the financial year. For the quarter under review, cash costs per PGM ounce were $799, a 2% increase quarter on quarter. The 2% increase in unit costs was due to reduced PGM production (6%) as a result of planned plant maintenance and a shorter production quarter due to the Christmas holidays. These challenges notwithstanding Mimosa's production levels continue to exceed company guidance. Administrative costs of $1.4 million (of which $0.2 million was non-cash) are in line with previous quarters, maintaining cost reduction initiatives previously implemented. Depreciation and amortisation for the quarter of $4.7 million was lower due to an increased resource base resulting from the extension of Kroondal's mine life, as previously announced. Finance costs include interest paid on borrowings of $1.4 million, non-cash interest accretion on convertible bonds of $1.2 million and the unwinding of the rehabilitation provision of $1.1 million. Finance costs for the quarter were 46% lower compared to the pcp following the $172.6 million bond buy back in May 2014. Net operating cash outflow for the quarter of $4 million comprised $52 million inflow from sales, $58 million paid to suppliers and $2 million interest received. Development and capital expenditure for the quarter was $5 million. Net financing cash inflows of $8 million related to proceeds from AQPSA finance leases. The Group's cash balance of $161 million at the end of the quarter was held as follows: AQP $108 million AQPSA $48 million ASACS $1 million Platmile $2 million Ridge Mining $2 million Total $161 million* * Mimosa and Blue Ridge (in which Aquarius has a 50% equity interest) are accounted for using the equity method. Cash held in these two entities at 31 March 2015 was $26 million and does not form part of the above cash balances. Under the previous method of proportionately consolidating its investment in Mimosa and Blue Ridge, 50% of this cash ($13 million) would have been included in Aquarius' Group cash balance. Joint venture entities Mimosa Mimosa recorded an EBITDA profit attributable to Aquarius of $8 million and a net profit before tax of $1.8 million for the quarter. The result was achieved on production of 28,696 PGM ounces attributable to Aquarius. Mimosa is in discussions with the authorities to have royalties deemed deductible for tax purposes. The tax liability relating to the non- deductibility of royalties as at March 2015 (on a 100% basis) was $7.7m ($4.2m prior year and $3.5m current year). The liability has been accrued in the financials awaiting the finalisation of negotiations with the authorities and any legislative amendments. Cash held in Mimosa at 31 March 2015 was $25 million (100%). Blue Ridge and Sheba's Ridge Blue Ridge and Sheba's Ridge recorded a net loss after tax of $0.2 million for the quarter representing care and maintenance costs incurred. (The segment note provided on page 10 details the income statement for each operating division of the Aquarius Group.) Consolidated Income Statement Quarter ended 31 March 2015 $'000 Nine Quarter months Financial Year Ended Ended Ended Note 31/03/15* 31/03/15* 30/06/14 PGM production - Kroondal & 56,096 172,607 220,961 Platmile PGM production - Mimosa 28,696 88,016 110,681 Total PGM production 84,792 260,623 331,642 Revenue (i) 50,241 163,504 233,056 Cost of sales (including D&A) (ii) (51,203) (160,929) (231,158) Gross profit/(loss) (962) 2,575 1,898 Other income 41 151 174 Administrative costs (iii) (1,417) (4,655) (7,353) Foreign exchange gain/(loss) (iv) 164 (239) 1,843 Finance costs (v) (3,783) (11,597) (28,091) Impairment losses (253) (827) (3,084) Profit on repurchase of bonds - - 10,925 Profit on sale of assets 13 1,139 653 Closure, transition and rehabilitation - - 5,342 reversal/(cost) Share of (loss)/profit from joint (vi) (1,783) (50,970) 5,055 venture entities Loss before income tax (7,980) (64,423) (12,638) Income tax expense (vii) (122) (415) (544) Net loss (8,102) (64,838) (13,182) Net loss is attributable to: Equity holders of Aquarius Platinum (8,069) (64,900) (13,048) Limited Non-controlling interests (viii) (33) 62 (134) (8,102) (64,838) (13,182) Earnings per share Basic loss per share (cps) (0.49) (4.42) (1.38) * Unaudited Notes on the March 2015 Consolidated Income Statement Revenue for the quarter of $50 million was 2% lower than the previous quarter due to lower production and $2 million negative sales adjustments Cost of sales of $51 million for the quarter was 4% lower in line with lower production (down 5%) compared to the previous quarter December 2014 Administrative costs for the quarter of $1.4 million are in line with previous periods in the current financial year. Costs for the nine months ended March 2015 includes $0.6 million of non-cash expenses The foreign exchange gain is attributable to revaluation adjustments on cash balances held in Rand, Australian Dollars and Pound Stirling, and the revaluation of pipeline debtors in line with movements in the Rand against the US Dollar Finance costs include interest paid on borrowings of $1.4 million, non-cash interest accretion on convertible bonds of $1.2 million and the unwinding of the rehabilitation provision of $1.1 million Represents share of (loss)/profit of Mimosa and Blue Ridge, the joint venture entities. Cumulative share of (loss)/profit from joint venture entities comprises operating profit of $4 million offset by impairment of Blue Ridge/ Sheba's Ridge of $26 million and discounting of the RBZ receivable of $28.5 million. An accrual of $3.8 million has been taken up for income tax payable pending conclusion of discussions with the authorities on the tax deductibility of mine royalties. Income tax expense consists of AQPSA deferred tax and royalties Non-controlling interests reflect the 8.3% non-controlling interest of Platinum Mile Resources (Pty) Ltd Consolidated Statement of Cash Flows Quarter ended 31 March 2015 $'000 Quarter Nine months Financial Year Ended Ended ended Note 31/03/15* 31/03/15* 30/06/14 Net operating cash (outflow)/inflow (i) (4,075) 1,948 21,092 Net investing cash (outflow)/inflow (ii) (4,870) 9,885 (27,224) Net financing cash inflow (iii) 8,393 22,009 62,271 Net decrease/(increase) in cash held (552) 33,842 56,139 Opening cash balance 164,211 136,820 77,773 Exchange rate movement on cash (3,040) (10,043) 2,908 Closing cash balance (iv) 160,619 160,619 136,820 * Unaudited Notes on the March 2015 Consolidated Statement of Cash Flows Net operating cash flow for the quarter includes $52 million inflow from sales, $58 million paid to suppliers and $2 million interest received Comprises $5 million of development and plant & equipment expenditure at AQPSA Consists of proceeds from AQPSA finance leases Mimosa and Blue Ridge (in which Aquarius has a 50% equity interest) are accounted for using the equity method Cash held in these two entities at 31 March 2015 was $26 million and does not form part of the above cash balances. Under the previous method of proportionately consolidating its investment in Mimosa and Blue Ridge, 50% of this cash would have been included in the Aquarius' Group cash balance Consolidated Balance Sheet At 31 March 2015 $'000 As at As at Note 31/03/15* 30/06/14 Assets Cash and cash equivalents 160,619 136,820 Current receivables (i) 29,125 30,104 Other current assets (ii) 12,505 15,246 Investments in joint venture entities (iii) 151,633 230,410 Mining assets (iv) 191,310 209,211 Intangible asset (v) 46,799 54,499 Other non-current assets (vi) 40,450 41,185 Total assets 632,441 717,475 Liabilities Current liabilities (vii) 157,354 40,123 Non-current interest-bearing liabilities (viii) 1,651 118,919 Other non-current liabilities (ix) 78,762 84,665 Total liabilities 237,767 243,707 Net assets 394,674 473,768 Equity Issued capital 75,134 73,216 Treasury shares (25,872) (26,239) Reserves 765,053 781,692 Accumulated losses (425,350) (360,450) Total equity attributable to equity holders of Aquarius Platinum Limited 388,965 468,219 Non-controlling interests (x) 5,709 5,549 Total equity 394,674 473,768 * Unaudited Notes on the March 2015 Consolidated Balance Sheet Reflects debtors receivable on PGM concentrate sales Reflects PGM concentrate inventory, consumables, stores and critical spares Represents the investment in Mimosa, Blue Ridge and Sheba's Ridge. Reduction in investments in joint venture entities reflects impairment of Blue Ridge/Sheba's Ridge of $26 million and discounting of the RBZ receivable of $28.5 million as reported in December 2014. Includes Group mining assets at Kroondal, Marikana, Everest, CTRP and Platmile Includes intangibles relating to contract value acquired on the acquisition of equity interest in Platinum Mile Resources (Pty) Ltd Includes the recoverable portion of the rehabilitation provision from Anglo Platinum of $9 million, carrying amount of receivable from Blue Ridge $5 million, investments in rehabilitation trusts of $14 million and deferred tax assets of $12 million Includes convertible bonds of $121 million, trade creditors of $27 million, AQPSA finance leases of $2 million, tax payable of $3 million and annual leave provision of $4 million Comprises AQPSA equipment leases of $2 million Includes deferred tax liabilities of $16 million, provision for closure costs of $61 million and other payables $2 million Reflects the 8.3% non-controlling interest of Platinum Mile Resources (Pty) Ltd Segment Note Quarter ended 31 March 2015 $'000 Kroondal Marikana Everest Mimosa Plat CTRP Mile Revenue 46,895 53 23 31,959 2,007 17 Cost of sales - mining, processing and administration (43,640) (287) (553) (23,557) (2,024) (4) - depreciation and amortisation (4,934) (13) 950 (5,258) (648) (47) Gross profit/(loss) (1,679) (247) 420 3,144 (665) (34) Other income - - (329) - - Administrative costs - - - - - - Foreign exchange gain/(loss) 2,316 - - (4) 110 - Finance costs - - - - - - Impairment losses - - - - - - Profit on sale of assets - - - - - - Community share ownership trust - - - (1,050) - - Share of loss from joint venture entities - - - - - - Profit/(loss) before income tax 637 (247) 420 1,761 (555) (34) Income tax (expense)/benefit - - - - - - Net profit/(loss) from ordinary activities 637 (247) 420 1,761 (555) (34) On-mine EBITDA 5,180 (266) (534) 7,996 79 (4) Blue Corporate/ Segment Reconciliation Consolidated Ridge Unallocated Result to Consolidated Information Revenue 9 1,246 82,209 (31,968) 50,241 Cost of sales - mining, processing and administration (183) - (70,248) 23,740 (46,508) - depreciation and amortisation - (3) (9,953) 5,258 (4,695) Gross profit/(loss) (174) 1,243 2,008 (2,970) (962) Other income 4 37 (288) 329 41 Administrative costs - (1,446) (1,446) 29 (1,417) Foreign exchange gain/(loss) - (2,259) 163 1 164 Finance costs - (4,691) (4,691) 908 (3,783) Impairment losses - (253) (253) - (253) Profit on sale of assets - 13 13 - 13 Community share ownership trust - - (1,050) 1,050 - Share of loss from joint venture entities - - - (1,783) (1,783) Profit/(loss) before income tax (170) (7,356) (5,544) (2,436) (7,980) Income tax (expense)/benefit - (2,558) (2,558) 2,436 (122) Net profit/(loss) from ordinary activities (170) (9,914) (8,102) - (8,102) On-mine EBITDA (179) - 12,272 (7,825) 4,447 Income tax expense for the nine months to March 2015 includes a $1.8m accrual for non-deductibility of royalties at Mimosa. Operating Review Summary (all numbers on 100% basis) AQUARIUS PLATINUM (SOUTH AFRICA) (PTY) LTD (Aquarius Platinum - 100%) P&SA 1 at Kroondal (Aquarius Platinum - 50%) 12-month rolling average DIIR per 200,000 man hours deteriorated slightly to 0.65 from 0,62 Production decreased to 1,576,000 tonnes from 1,807,000 tonnes predominantly due to section 54 stoppages and the less production shifts due to the year-end holidays Head grade improved from 2.41 g/t to 2.46 g/t Recoveries improved by 1% to 80% Volumes processed decreased to 1,688,000 tonnes, down 7% quarter-on-quarter Stockpiles at the end of the quarter totalled approximately 47,000 tonnes, down 113,000 tonnes PGM production decreased by 4% to 107,089 PGM ounces Revenue increased by 4% to R1,093 million quarter-on-quarter due to weakening of the exchange rate Mining cash costs increased by 11% to R606 per tonne, due to lower volumes and stock pile milling during the Christmas holidays. Unit cost per PGM ounce only increased by 7% to R9,560 per PGM ounce due to improved quality Kroondal's cash margin for the period increased from 5% to 6% due to an improved Rand basket price Kroondal: Production, Cash Cost and Price Analysis See www.aquariusplatinum.com for graph Commentary There were no fatalities during the quarter. The number of injuries decreased from 29 to 16 quarter on quarter and the 12 Rolling DIIR Rate deteriorated from 0.62 to 0.65. The deterioration in safety took place despite a focused safety campaign throughout the quarter. Safety campaigns were re-energised in January 2015. During the quarter, six Section 54 instructions were issued resulting in approximately 113,000 tonnes of lost production. Tonnes mined for the quarter was 13% lower at 1,676,000 tonnes due primarily to the six Section 54 instructions issued by the DMR. In spite of these factors, Kroondal achieved its ninth consecutive +105,000 PGM production quarter. Operations at K6 Shaft remained challenging due to poor ground which necessitated rehabilitation in order to get the belt infrastructure installed as well as high incidence of poor ground conditions in the stoping panels. Kwezi shaft experienced poor ground conditions which resulted in all ends being reduced for safety. Simunye shaft replaced part of its old generation fleet load haul dumpers, as well as engineering organisational changes. Efficiencies continue to be pursued with the critical focus being the management of the TMM fleet. Bambanani is scheduled to have its chairlift commissioned in Q4 in order to reduce face time lost due to long travelling to the working places. Kopaneng shaft experienced some poor ground challenges in the decline as well as the western part of the mine, which resulted in some ventilation challenges. Various trials to mitigate the treating of iron-rich ultramafic pegmatite (IRUP) ore being mined at Kwezi has resulted in potential solutions comprising blending the material, changing reagents and increasing the floatation retention time in the process plants. Recoveries improved by 1% quarter on quarter. Further work will continue in Q4 2015. A recognition agreement was concluded with AMCU in January 2015, negotiations of which were conducted in a cordial manner. P&SA2 at Marikana (Aquarius Platinum - 50%) There has been no change to the Marikana operations which remain on care and maintenance until further notice. Everest Mine There has been no change to the Everest operations which remains subject to the conclusion of a sale contract. The conditions precedent to Part A of the sale agreement were fulfilled on 22 April 2015 which results in Aquarius being entitled to the Part A proceeds of R400 million by 26 June 2015. The fulfilment of the additional condition required to render Part B unconditional, being Section 11 approval by the DMR, is expected to materialise before the end of the 2015 calendar year following which Aquarius would be entitled to a further R50 million. AQPSA Operating cash costs per ounce (Rand) 4E 6E 6E net of by-products (Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni&Cu) Kroondal 9,560 7,835 7,642 Capital expenditure Kroondal (R'000 unless otherwise stated) Total Per 4E oz Ongoing establishment of infrastructure 69,854 652 Project capital (K6 shaft) 4,853 45 Mobile equipment 40,866 382 Total 115,573 1,079 Kroondal mine: reconciliation of cash costs per 4E ounce Cost per 4E ounce (Rand) Q2 2015 Q3 2015 Total operating expenditure 10,213 10,106 Less: Ongoing capital expenditure & mobile equipment (1,195) (1,034) Project capex (K6 shaft) (59) (45) Transferred (to)/from stockpile (34) 533 On mine cash costs 8,925 9,560 MIMOSA INVESTMENTS (Aquarius Platinum - 50%) Mimosa Platinum Mine 12-month rolling average DIIR was constant at 0.05 per 200,000 man hours worked Production decreased by 8% to 610,929 tonnes as result of lower operating days (82 days) in the third quarter compared to 88 days worked in the 2nd quarter. This was due to 4 public holidays in the third quarter as well as a shorter February month (2 days less) Head grade improved slightly to 3.65 g/t Recoveries improved to 78.7% from 78.3% in the second quarter Volumes processed deteriorated by 7% to 621,586 tonnes as result of lower milling days (81 days) in the third quarter compared to 84 days worked in the 2nd quarter. The milling days were affected by a shorter February month as well as planned maintenance shut downs in the third quarter Stockpile at the end of the quarter was approximately 170,600 tonnes PGM production deteriorated by 6% to 57,391 PGM ounces in line with reduced milled volumes as explained above Revenue was the same as the previous quarter Mining cash costs per tonne increased to $75 in line with reduced milled tonnage as explained above Stay-in-business capital expenditure was $119 per PGM ounce for the quarter Mimosa: Production, Cash Cost and Price Analysis See www.aquariusplatinum.com for graph Commentary Safety, Health and Environment No fatalities or LTIs occurred at Mimosa during the quarter. Operations The Mimosa mine operated very well during the quarter, enjoying cordial industrial relations and meeting most of its production targets. Mimosa continues to implement cost containment initiatives and have managed to operate within budget. Regulatory and fiscal environment As reported in the previous quarter, the following regulatory issues have asignificant bearing on the operations of the mine: Indigenisation Mimosa continues to interact with the Ministry of Indigenization and Ministry of Mines to work towards a sustainable solution. 15% Export Levy on un-beneficiated PGMs Discussions with the authorities continued during the quarter to find a way forward with regards to this issue. The company has not yet made provision for this levy in the financials. If the levy were to be implemented, it would have a significant impact on the financial position of the company. Royalties The company is continuing engagements with the authorities to have royalties deductible for tax purposes. The tax liability relating to the non-deductibility of royalties as at March 2015 (on a 100% basis) was $7.7m ($4.2 m prior year and $3.5m current year). The liability has been accrued in the financials awaiting the finalisation of negotiations with the authorities and any legislative amendments. Operating cash costs per ounce Unit cash cost per PGM ounce (before by-product credits) was 2% higher compared to the previous quarter mainly as a result of decreased production. Mimosa operating cash costs per ounce 4E 6E 4E net of by-products (Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni, Cu & Co) Mimosa 799 754 566 Capital expenditure The total capital expenditure for the second quarter amounted to $7 million. Expenditure was mainly incurred on mobile equipment, drill rigs and LHD, conveyor belt extension and down dip development. TAILINGS OPERATION Platinum Mile (Aquarius Platinum - 91.7%) Material processed decreased 9% to 1.2 million tonnes Head grade increased to 0.59 g/t from 0.55 - quarter on quarter Recoveries decreased to 12%, down from 13% quarter on quarter Production decreased to 2,552 PGM ounces as explained below Cash costs increased to R9,327 per PGM ounce Revenue was lower at R25 million for the quarter Cash margin for the quarter was 3%, down from 14% in the previous quarter Commentary Platinum Mile The results for the quarter were lower than those of the previous quarter because of planned maintenance resulting in operational downtime. Anglo Platinum has as yet not started their tailings re-treatment operations and therefore the opportunity was utilised to do critical maintenance. It is anticipated that the Anglo Platinum tailings project should increase feed volumes by some 275,000 tonnes of Merensky tailings material per month. Once full production ramp-up is achieved the operation should increase production substantially in relative terms. Platinum Mile: Operating cash costs per ounce 4E 6E 4E net of by-products (Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni, Cu& Co) Platinum Mile 9,327 7,851 7,311 Chromite Tailings Retreatment Plant (CTRP) (Aquarius Platinum - 50%) There has been no change to the CTRP operations which remain on care and maintenance until further notice. CORPORATE MATTERS Everest Sale (announcement date 10 February 2015 / 3 March 2015) As announced on 23 April 2015 the conditions precedent in respect of the Part A disposal process of the sale of Everest were fulfilled on 22 April 2015. Part A of the disposal process is now unconditional and the consideration of R400 million is due and payable by Northam on 26 June 2015. Part B of the disposal process is subject to the consent of the Minister of Mineral Resources in terms of section 11 of the Mineral and Petroleum Resources Development Act. The section 11 application has been submitted to the Department of Mineral Resources. Should the Ministerial Consent not be obtained the first part of the Disposal will not be unwound. Zimbabwe Royalty Update As previously announced, in 2013 the Government of Zimbabwe proposed an export tax on unrefined platinum, with a view to encouraging platinum mining companies to invest in smelting and refining capacity in Zimbabwe. This export tax, at a rate of 15% of revenue, was deferred to take effect from 1 January 2015. In the 2015 National Budget statement made in December 2014, the Minister of Finance announced that the Government had deferred the export tax on un-beneficiated platinum until 1 January 2017. However, the 2015 Finance Bill, which was gazetted on 9 January 2015, does not provide for the deferral of the tax. The platinum mining companies, represented by the Chamber of Mines, are in the process of engagement with the Government of Zimbabwe to resolve the matter. Although the matter has not yet been resolved substantial progress was made during the quarter and Aquarius and Mimosa are hopeful that the matter will be resolved in due course. More information on all corporate matters can be found at www.aquariusplatinum.com Statistical Information: Kroondal P&SA1 See www.aquariusplatinum.com for table Statistical Information: Mimosa See www.aquariusplatinum.com for table Statistical Information: Platinum Mile See www.aquariusplatinum.com for table Aquarius Platinum Limited Incorporated in Bermuda Exempt company number 26290 Board of Directors Sir Nigel Rudd Non-executive Chairman Jean Nel Chief Executive Officer David Dix Non-executive Tim Freshwater Non-executive (Senior Independent Director) Edward Haslam Non-executive Kofi Morna Non-executive Zwelakhe Mankazana Non-executive Sonja De Bruyn Sebotsa Non-executive Audit/Risk Committee David Dix (Chairman) Tim Freshwater Edward Haslam Kofi Morna Sir Nigel Rudd Remuneration Committee Edward Haslam (Chairman) David Dix Zwelakhe Mankazana Sir Nigel Rudd Nomination Committee Sonja De Bruyn Sebotsa (Chairman) Tim Freshwater Edward Haslam Kofi Morna Willi Boehm Chief Operating Officer Robert Schroder Company Secretary Willi Boehm AQPSA Management Robert Schroder Managing Director Jean Nel Executive Director Benjamin Gaseemelwe Acting 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 31 March 2015, the Company had on issue: 1,502,695,183 fully paid common shares. Substantial Shareholders 31 March 2015 Number of Shares Percentage HSBC Custody Nominees (Australia) Limited 107,881,143 7.18 JP Morgan Nominees Australia Limited 55,479,748 3.69 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 Rand Merchant Bank Euroz Securities (A division of FirstRand Bank 5 The North Level 18 Alluvion Limited) Colonnade 58 Mounts Bay Road, 1 Merchant Place Perth WA 6000 Cnr of Rivonia Rd and Fredman Canary Wharf Telephone: +61 (0) 8 Drive, Sandton 2196 9488 1400 Johannesburg, South Africa London E14 4BB Tel: +44 (0) 20 7623 2323 Telephone: +44 (0)20 7628 1000 Aquarius Platinum (South Africa) (Proprietary) Ltd 100% Owned (Incorporated in the Republic of South Africa) Registration Number 2000/000341/07 1st Floor, Block C, Rosebank Office Park, 181 Jan Smuts Avenue, Rosebank, South Africa Postal Address: PO Box 7840, Centurion, 0046, South Africa Telephone: +27 (0) 10 001 2848 Facsimile: +27 (0) 12 001 2070 Aquarius Platinum Corporate Services Pty Ltd 100% Owned (Incorporated in Australia) ACN 094 425 555 Level 1, Suite 6, South Point, 100 Mill Point Road, South Perth WA 6151, Australia Postal Address: PO Box 485, South Perth, WA 6151, Australia Telephone: +61 (0)8 9367 5211 Facsimile: +61 (0)8 9367 5233 Email: info@aquariusplatinum.com For further information please visit www.aquariusplatinum.com or contact: In the United Kingdom and South Africa: In Australia: Jean Nel +27 (0) 10 001 2848 Willi Boehm +61 (0) 8 9367 5211 Glossary A$ Australian Dollar Aquarius Aquarius Platinum Limited or AQP APS Aquarius Platinum Corporate Services Pty Ltd AQPSA Aquarius Platinum (South Africa) (Pty) Ltd ACS(SA) Aquarius Platinum (SA) Corporate Services (Pty) Ltd BEE Black Economic Empowerment BRPM Blue Ridge Platinum Mine CTRP Chrome Tailings Retreatment Operation. Consortium comprising Aquarius Platinum (SA) (Corporate Services) (Pty) Limited (ASACS), Ivanhoe Nickel and Platinum Limited and Sylvania South Africa (Pty) Ltd (SLVSA). DIFR Disabling injury frequency rate -being the number of lost-time injuries expressed as a rate per 1,000,000 man-hours worked DIIR Disabling injury incidence rate -being the number of lost-time injuries expressed as a rate per 200,000 man-hours worked DME formerly South African Government Department of Minerals and Energy DMR South African Government Department of Mineral Resources, formerly the DME Dollar United States Dollar or $ Everest Everest Platinum Mine Great A PGE bearing layer within the Great Dyke Complex in Zimbabwe Dyke Reef g/t Grams per tonne, measurement unit of grade (1g/t = 1 part per million) JORC Australasian code for reporting of Mineral Resources and Ore Reserves code JSE JSE Limited Kroondal Kroondal Platinum Mine or P&SA1 at Kroondal LHD Load haul dump machine Marikana Marikana Platinum Mine or P&SA2 at Marikana Mimosa Mimosa Mining Company (Private) Limited nm Not measured PGE(s) Platinum group elements plus gold. Five metallic elements commonly (6E) found together which constitute the platinoids (excluding Os (osmium)). These are Pt (platinum), Pd (palladium), Rh (rhodium), Ru (ruthenium), Ir (iridium) plus Au (gold) PGM(s) Platinum group metals plus gold.Aquarius reports the PGMs as (4E) comprising Pt+Pd+Rh plus Au (gold) with the Pt, Pd and Rh being the most economic platinoids in the UG2 Reef PlatMile Platinum Mile Resources (Pty) Ltd P&SA1 Pooling & Sharing Agreement between AQPSA and RPM Ltd on Kroondal P&SA2 Pooling & Sharing Agreement between AQPSA and RPM Ltd on Marikana R South African Rand Ridge Ridge Mining Limited ROM Run of mine. The ore from mining which is fed to the concentrator plant. This is usually a mixture of UG2 ore and waste. Tonne 1 Metric tonne (1,000kg) TARP Trigger Action Response Procedure UG2 Reef A PGE-bearing chromite layer within the Critical Zone of the Bushveld Complex END
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