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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 Preliminary Full Year Results to 30 June 2015 Key Points: Financial * Revenue decreased by 9% to $213 million (FY2014: $223 million) compared to the prior corresponding period (pcp) due to lower PGM metal prices * Mine EBITDA decreased by 10% to $26 million (FY2014: $29 million) due to lower metal prices * Headline loss (before exceptional charges) of $51 million at 3.47 cents per share (FY2014: loss of $11 million at 1.13 cents per share) * Accounting net loss after tax (to IFRS) of $98 million after impairment and other non-cash one off charges * Mine operating net cash inflow of $18 million (FY2014: inflow of $21 million) on lower metal prices * Dividend of $20 million received from Mimosa joint venture * Group cash balance at 30 June 2015 of $196 million (FY2014: $137 million), with a further $6 million attributable to Aquarius held in JV entities Key Points: Operational * Both operating mines Kroondal and Mimosa delivering all time record production * Both Kroondal and Mimosa recording unit cost increases well below inflation * Significant improvements in safety performance: 12 month rolling average DIIR * Kroondal's improved by 11% to 0.65 per 200,000 man hours from 0.73 the previous year * Mimosa's improved to 0.03 per 200,000 man hours from 0.08 in the previous year * PlatMile's remains at zero * Group attributable production increased by 5% to 349,426 PGM ounces (FY2014: 331,643 PGM ounces) * The average US Dollar PGM Basket Price of $1,097 was 7% lower compared to the previous corresponding period (pcp) FY2014 * The average Rand Basket Price increased by 3% compared to the pcp due to a weaker Rand * The Rand weakened by 10% on average against the US Dollar compared to the pcp * On-mine unit cash costs in South Africa increased by 1% in Rand terms compared to the pcp * Mimosa continued to produce at capacity but impacted by a low PGM Dollar price * On-mine unit cash costs in Mimosa decreased 9% compared to the pcp * PlatMile production higher compared to pcp but is still hampered by lower feed supply, $28 million impairment charged recognised Key Points: Strategic * Disposal of non-core assets program (Kruidfontein prospecting rights and Everest mine) delivered $60 million in cash * A recognition agreement has been concluded with AMCU at Kroondal, which now represents circa 65% of Kroondal's semi-skilled work force Commenting on the results, Jean Nel, CEO of Aquarius Platinum, said: For the 2015 financial year both mining operations, Kroondal and Mimosa, delivered record production performances whilst maintaining unit cost increases well below inflation and at the same time improving safety performances materially. Operational management at both mines deserve credit for this performance in what continues to be a challenging operating environment. During the year the balance sheet was also strengthened following the receipt of $60 million of proceeds from non-core asset sales. The macro environment however remains very challenging given Dollar metal prices at decadal lows. Against this back-drop Aquarius will not only continue its focus on consistent cost and capital discipline, but will also assess further initiatives to reduce absolute costs and increase efficiencies and will perform an assessment of the sustainability of each shaft at each operation. Financial results: Year to 30 June 2015 Aquarius recorded a consolidated net loss after tax (IFRS) of $98 million for the year (6.59 cents per share). The result included $70 million of one off items listed below: * profit on sale of non-core assets (Kruidfontein & Everest) of $20 million; and non-cash charges comprising - * a reversal/(recycling) of foreign exchange losses from the foreign currency translation reserve through the income statement of $13 million arising on the disposal of 100% owned subsidiary C&L Mining and Resources (Pty) Ltd which held the Kruidfontein mining rights * impairment in the carrying value of the PlatMile investment of $28 million * impairment of the carrying value of Blue Ridge/Sheba's Ridge investment of $20 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 $29 million EBITDA from controlled entities was $26 million, a $3 million decrease from the pcp. The decreased EBITDA was despite a 5% increase in production (controlled entities) and excellent cost control due to lower PGM prices (down 7%). Kroondal recorded a 1% increase in unit costs (Rand terms) compared to the pcp despite significantly higher mining cost inflation. Profit & Production Summary Aquarius JV entities Total Consolidation Aquarius operations adjustment Group Mine EBITDA $26M $42M $68M ($42M) $26M Revenue $213M $137M $350M ($137M) $213M Cost of sales ($211M) ($111M) ($322M) $111M ($211M) Net profit/(loss) ($50M) ($48M) * ($98M) - ($98M) after tax PGM ozs production 231,393 118,033 349,426 - 349,426 * Includes $20 million impairment of Blue Ridge and Sheba's Ridge, $28 million discounting of RBZ receivable and $4.5 million provision for 15% export tax at Mimosa. Revenue (PGM sales, interest) for the year of $213 million was $20 million lower compared to the pcp. The lower revenue reflects the difficult PGM market which saw the average basket Dollar price reduce to an average $1,097 per PGM ounce in FY2015, a 7% decrease. In Rand terms, the PGM basket increased by 3% directly as a result of a weaker Rand which decreased 10% to average R11.42 in FY2015. In Zimbabwe, the Mimosa PGM basket price was similarly subdued recording a 5% decrease to $1,075 in FY2015 compared to the pcp. Total cost of production was $211 million, down $20 million despite a 3% increase in production at Kroondal. This was primarily due to good cost control and the weakening Rand. Cost per PGM ounce in Dollar terms in South Africa decreased 9% to $803 but increased 1% in Rand terms. In Zimbabwe the cash cost per PGM ounce was $802, a 9% reduction demonstrating the impact of the cost saving initiatives implemented 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. Significantly, Kroondal recorded its tenth consecutive +105,000 PGM ounce production quarter, a record for the mine. Exchange rate movements continued to have a volatile effect on earnings. The Rand weakened significantly to average R11.45 to the US Dollar compared to R10.39 in the pcp. During the year, Aquarius recorded a net foreign exchange gain of $2 million comprising gains on sales adjustments and revaluation of cash, intercompany loans and pipeline debtors. Administration costs of $6 million were lower by $1 million compared to pcp. Depreciation and amortisation for the year of $23 million was lower despite increased production due to an increased resource base resulting from the extension of the Kroondal mine life. Finance costs for the year of $15 million were $13 million lower compared to the pcp as a result of the buy back of $173 million of the convertible bond concluded in May 2014. Finance costs include $5 million interest on convertible bonds and bank borrowings, $5 million of non-cash interest arising from the unwinding of the debt portion of the convertible bond and $5 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 30 June 2015 was $196 million, up $59 million from June 2014. The increase in cash was mainly attributable to $27 million of proceeds received from the sale of Kruidfontein and $33 million proceeds from the sale of Everest. In addition to this, the Group paid $23 million to fund its capital expenditure program and received $20 million of dividends from Mimosa. Cash held at Mimosa and Blue Ridge which is not classified as group cash due to the adoption of equity accounting was $11 million (100% basis). Sale of assets Kruidfontein 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 $19 million was recorded. Reconciliation of cash proceeds to accounting profit: $M Cash proceeds 27 Shares issued to original vendor (8) Accounting profit on sale 19 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 acquisition. 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 income statement. Accordingly, a non-cash adjustment of $13 million has been made, representing reclassification of the cumulative amount of foreign exchange differences relating to Kruidfontein up to the date of disposal. Everest On 10 February 2015 Aquarius entered into an agreement to sell its Everest mine and related assets to Northam Platinum Limited for R450 million, to be completed in two parts, being R400 million for the concentrator and other mining assets of Everest Mine (Part A), plus R50 million for the Everest Mining Right (Part B). Part A proceeds were received in 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. Impairment assessment of mines An impairment charge of $29 million was made against the carrying value of the Group's mining assets of which $28 million relates to PlatMile. Joint venture entities Mimosa Mimosa recorded an EBITDA profit attributable to Aquarius of $42 million and a net loss before tax of $5 million. The result was achieved on production of 118,033 PGM ounces attributable to Aquarius. The improved EBITDA result compared to the pcp was driven by a 7% increase in production, lower unit costs (down 9%) which mitigated the 5% fall in the average PGM basket price achieved. As at the date of this release the deferral of the 15% export tax in Zimbabwe had not been formalised and hence in this regard an amount of $4.5 million has been accrued in FY2015. During the year a dividend of $20 million was received from Mimosa. Cash held in Mimosa at 30 June 2015 was $10 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 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 $20 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) 221,239 - - 118,033 10,154 $M Revenue 198 - - 137 8 Cost of sales - mining, processing & (178) (1) (2) (93) (7) admin Cost of sales - depreciation & (20) - - (17) (3) amortisation Gross profit/(loss) 1 (1) (2) 27 (2) Administrative costs - - - - - Foreign exchange gain/(loss) 9 - - - - Finance costs - - - - - Impairment losses - - - - (28) Profit on sale of assets - - 2 - - Foreign currency translation reserve - - - - - recycled on disposal BEE partner guarantee - - - - - Discounting of RBZ receivable - - - (29) - Community share ownership trust - - - (3) - Share of loss from joint venture - - - - - entities Profit/(loss) before income tax 10 (1) - (5) (29) Blue Corporate Total Reconciliation Consolidated Ridge to Consolidated Information * PGM ounces (4E) (attributable) - - 349,426 $M Revenue - 6 350 (137) 213 Cost of sales - mining, - - (282) 94 (188) processing & admin Cost of sales - depreciation & - - (39) 17 (23) amortisation Gross profit/(loss) - 6 28 (26) 2 Administrative costs - (6) (6) - (6) Foreign exchange gain/(loss) - (8) 1 - 1 Finance costs - (19) (19) 4 (15) Impairment losses (2) (19) (49) 20 (29) Profit on sale of assets - 18 20 - 20 Foreign currency translation - (13) (13) - (13) reserve recycled on disposal BEE partner guarantee - (2) (2) - (2) Discounting of RBZ receivable - - (29) 29 - Community share ownership trust - - (3) 3 - Share of loss from joint - - - (48) (48) venture entities Profit/(loss) before income tax (2) (44) (71) (19) (90) * 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 Year ended 30 June 2015 $'000 Note Half year ended Year ended 30/06/15 31/12/14 30/06/15 30/06/14 Attributable Production (4E 173,595 175,831 349,426 331,642 PGM oz) Revenue (i) 99,645 113,263 212,908 233,056 Cost of sales (including D& (ii) (101,090) (109,726) (210,816) (231,158) A) Gross (loss)/profit (1,445) 3,537 2,092 1,898 Other income 63 110 173 174 Administrative costs (iii) (2,992) (3,238) (6,230) (7,353) Foreign exchange gain/ (iv) 1,975 (403) 1,572 1,843 (loss) Finance costs (v) (7,623) (7,814) (15,437) (28,091) Impairment losses (vi) (28,871) (574) (29,445) (3,084) Profit on repurchase of - - - 10,925 bonds Profit on sale of assets (vii) 19,385 1,126 20,511 653 Foreign currency (viii) (13,262) - (13,262) - translation reserve recycled on disposal BEE partner guarantee (ix) (2,093) - (2,093) - Rehabilitation cost - - - 5,342 reversal Share of profit/(loss) from (x) 889 (49,187) (48,298) 5,055 joint venture entities Loss before tax (33,974) (56,443) (90,417) (12,638) Income tax expense (xi) (7,367) (293) (7,660) (544) Net loss (41,341) (56,736) (98,077) (13,182) Loss per share (basic - (2.66) (3.93) (6.59) (1.38) cents) Notes on the Consolidated Income Statement i. Sales revenue was lower despite increased production due to lower PGM prices compared to the pcp. ii. Aggregate cost of sales were $20 million lower year-on-year. In South Africa unit costs per PGM ounce decreased 9% in Dollar terms but increased by 1% in Rand terms due to a 10% average decrease in the value of the Rand compared to the Dollar. iii. Corporate administration costs are lower due to cost reduction initiatives. iv. Foreign exchange gains of $1.6 million were recorded on sales adjustments and revaluation of cash, intercompany loans and pipeline debtors. v. Finance costs of $15 million comprises interest of $10 million on convertible notes and bank borrowings and $5 million of non-cash interest arising from the unwinding of the net present value of the rehabilitation provisions of AQPSA. vi. Includes impairment charges of $28 million for Plat Mile. vii. Includes profit on sale of Kruidfontein of $19 million and profit on sale of Everest of $2 million. viii. Represents reclassification of the cumulative amount of foreign exchange differences relating to Kruidfontein up to the date of disposal. ix. Represents costs incurred in the provision of a limited pledge in favour of Aquarius' BEE partners. x. Share of loss from joint venture entities includes a $24 million loss at Mimosa (which includes $28.5 million discounting of the RBZ receivable and a $4.5 million provision for 15% export tax) and a $24 million loss at Blue Ridge and Sheba's Ridge (which includes $20 million impairment). xi. Income tax expense of $8 million comprises normal tax, deferred tax and royalties. Aquarius Platinum Limited Consolidated Cash Flow Statement Year ended 30 June 2015 $'000 Half-year ended Year ended Year ended Note 30/06/15 31/12/14 30/06/15 30/06/14 Net operating cash inflow (i) 11,828 6,024 17,852 21,092 Net investing cash inflow/ (ii) 23,780 14,754 38,534 (27,224) (outflow) Net financing cash (iii) (1,075) 13,615 12,540 62,271 (outflow)/inflow Net increase in cash held 34,533 34,393 68,926 56,139 Opening cash balance 164,211 136,820 136,820 77,773 Exchange rate movements on (iv) (2,971) (7,002) (9,973) 2,908 cash Closing cash balance 195,773 164,211 195,773 136,820 Notes on the Consolidated Cash Flow Statement i. Includes $222 million inflow from sales, $210 million paid to suppliers and $6 million interest received. ii. Includes $27 million proceeds from the sale of Kruidfontein, $33 million proceeds from the sale of Everest and $23 million of payments for mining assets. iii. Includes $6 million interest paid, $2 million net proceeds from borrowings and $20 million dividends from Mimosa. iv. Reflects movement of other currencies against the Dollar. Aquarius Platinum Limited Consolidated Balance Sheet At 30 June 2015 $'000 Year ended Note 30/06/15 30/06/14 Assets Cash assets 195,773 136,820 Current receivables (i) 29,231 30,104 Other current assets (ii) 8,463 15,246 Mining assets (iii) 163,439 209,211 Intangible asset (iv) 17,727 54,499 Investments in joint venture entities (v) 150,609 230,410 Other non-current assets (vi) 28,823 41,185 Total assets 594,065 717,475 Liabilities Current interest-bearing liabilities (vii) 124,880 1,362 Other current liabilities (viii) 38,601 38,761 Non-current interest-bearing liabilities (ix) 2,020 118,919 Other non-current liabilities (x) 71,091 84,665 Total liabilities 236,592 243,707 Net assets 357,473 473,768 Equity Issued capital 75,266 73,216 Treasury shares (26,056) (26,239) Reserves 761,134 781,692 Accumulated losses (456,760) (360,450) Total equity attributable to equity holders of Aquarius Platinum Limited 353,584 468,219 Non-controlling interests (xi) 3,889 5,549 Total equity 357,473 473,768 Notes on the Consolidated Balance Sheet i. Reflects debtors receivable on PGM concentrate sales. ii. Reflects PGM concentrate inventories, reef stockpiles and consumables stores. iii. Represents mining assets, plant and equipment at Kroondal and Marikana. iv. Includes intangibles relating to the acquisition of Platinum Mile Resources (Pty) Ltd. v. Reflects investment in joint venture entity, Mimosa. vi. Includes the recoverable portion of rehabilitation provision from Anglo Platinum of $9 million, receivable of $5 million representing the net realisable value of Ridge assets and investments in rehabilitation trusts of $14 million. vii. Includes convertible notes due December 2015 of $123 million and AQPSA equipment leases of $2 million. viii. Includes creditors and other payables of $35 million and provisions of $4 million. ix. Represents AQPSA equipment leases. Convertible notes are now classified as current liabilities. x. Includes deferred tax liabilities of $8 million, provision for closure costs of $61 million and rehabilitation obligations on P&SA1 (Kroondal) and P&SA2 (Marikana) structures of $2 million. xi. 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 15 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 financial year, which are available on the Company's website at http://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 11% to 0.65 per 200,000 man hours from 0.73 the previous year * Production declined by 1% to 7,151 million tonnes * Volumes processed slightly reduced by 0.2% to 7,160m tonnes * Head grade improved slightly to 2.43 g/t from 2.39g/t * Recoveries increased by 1% to 79% * PGM production increased by 3% to 442,477 PGM ounces * Revenue decreased by 2% to R4.492 billion compared to the previous financial year due the weakening of the Dollar basket price by 7%, but improved production coupled with 10% weakening in the Rand Dollar exchange rate offset this reduction in the dollar basket price * Mining cash costs increased by 4% to R567 per tonne, and costs per PGM ounce increased by 1% to R9,168 * Kroondal's cash margin for the period decreased from 15% to 10% 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 year with an improved DIIR compared to the previous year. Operations Production for the year declined by 1% to 7,151 million tonnes. During the 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 R9,168 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 9,168 7,525 7,321 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 Total Per 4E oz stated) Ongoing Infrastructure 368,545 833 Establishment Project Capital 41,978 95 Mobile Equipment 125,215 282 Total 535,738 1,210 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 Part A of the sale to Northam was concluded and Part A proceeds of R400 million received. Section 11 approvals are underway for conclusion of Part B following which the remaining R50 million becomes payable to Aquarius. MIMOSA INVESTMENTS (Aquarius Platinum - 50%) Mimosa Platinum Mine * 12-month rolling average DIIR improved to 0.03 per 200,000 man hours from 0.08 in the previous year * Production increased by 5% to 1.3 million tonnes * Volumes processed increased by 3% to 2.6 million tonnes * Head grade was constant at 3.65g/t * Recoveries improved by 1% to 78% * PGM production increased by 7% to 236,067 PGM ounces * Revenue increased by 5% to $272 million due to higher metal sales * Mining cash costs decreased 8% to $73 per tonne, and PGM ounce cost decreased by 9% to $802 * Mimosa's cash margin for the period increased to 29% from 24% Commentary Safety, Health and Environment No fatalities occurred at Mimosa during the 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 year, the Zimbabwean political and regulatory environment remained uncertain in a number of respects. Significant regulatory fiscal issues are as follows: 15% Export Levy on un-beneficiated PGMs In the 2015 National Budget Statement, the deferment of the 15% export levy on un-beneficiated platinum to January 2017 was proposed. 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 deferred and hence the 15% export levy on un-beneficiated PGMs became law effective 1 January 2015. The Company continues to engage the authorities in consultation with the Chamber of Mines to have the levy deferred. In the absence of the formal deferment in law, and having considered the above the Directors believe it is prudent to provide for the impact of this levy. Accordingly an attributable amount of $4.5 million has been accrued for the financial year ended June 2015. Aquarius and Mimosa are confident that the matter will be resolved and remains committed to building good working relations with the Government of Zimbabwe. Furthermore Mimosa, together with the other Platinum producers in Zimbabwe, are currently in the process of assessing the viability of a number of in-country smelting and beneficiation alternatives. The outcome of these assessments will be communicated to all relevant stakeholders in due course. 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. The financial impact of the non-deductibility of royalties was $4.2 million for the financial year to June 2014 and $4.7 million for the financial year ended June 2015, 50% of which is attributable to Aquarius. Negotiations are continuing with the authorities to confirm that the royalties are deductible for income tax purposes. Indigenisation Mimosa continues to interact with the Ministry of Indigenisation and Ministry of Mines to work towards a sustainable solution in relation to indigenisation, but in the period under review no agreements or definitive terms were agreed between Mimosa and the Ministry of Indigenisation. As a result, the matter is ongoing and management is unable to estimate the financial impact of the proposed transaction. Operating Cash Costs Unit operating costs decreased by 9% from the prior year mainly as a result of the impact of increased production. Operating cash costs per ounce ($/oz) 4E 6E 4E net of by-products (Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni, Cu & Co) Mimosa 802 757 672 Capital expenditure Stay in business capital expenditure at Mimosa was $27.8 million ($118 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 4.648m tonnes * Recoveries were 12% * Production amounted to 10,154 PGM ounces * Cash costs were R8,237 per PGM ounce * Revenue was R95 million * The cash margin for the year was 12% Commentary Platinum Mile As reported with half year results it is expected that Anglo Platinum will start the commissioning of their dump re-treatment project before in the end of the 2015 calendar year. This project could result in some 280,000 tons per month of additional feed being treated at the operation. The increase in feed volumes at the operation should result in increased production yields for the rest of the ensuing financial year and could be the catalyst for continued profitable operation amid strained market and pricing conditions. 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 8,237 7,031 6,526 Chromite Tailings Retreatment Plant (CTRP) (Aquarius Platinum - 50%) This operation remains on care and maintenance. CORPORATE MATTERS Sale of non-core assets During the year $60 million was received following the successful disposal of two non-core assets comprising the Kruidfontein mining rights and the Everest mine (Part A). Part B of the Everest disposal being R50 million for the Everest Mining Right 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. Growth projects Aquarius previously advised that two growth projects had been identified. The following progress was made on both projects during the year: Mimosa expansion The pre-feasibility study of the expansion of Mimosa by 25% was completed during the year and the summary results released as part of the interim release in February 2015. The bankable feasibility study is currently underway and is due to be completed in time for the FY16 half year release in February 2016. Kroondal tailings retreatment project Aquarius recently received formal confirmation from the Department of Water and Sanitation (DWS) that the technical specification submitted by the company had been approved and hence the company expects the issue by the DWS of an appropriate Integrated Water Use Licence ("IWUL"). Upon receipt of the IWUL Aquarius will update the relevant cost and capital assumptions and advise shareholders accordingly. Importantly, Aquarius will take into account the prevailing and forecast metal price environment and balance sheet strength before it commits any capital to projects. More information on all corporate matters can be found at www.aquariusplatinum.com See http://www.aquariusplatinum.com/ for Statistical Information 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) Edward Haslam Tim Freshwater Kofi Morna Sir Nigel Rudd Willi Boehm Chief Operating Officer Robert Schroder Company Secretary Willi Boehm AQPSA Management Robert Schroder Managing Director Jean Nel Executive Director Gawie De Wet 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 30 June 2015, the Company had on issue 1,505,339,079 fully paid common shares. 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 FirstRand Canary Wharf 58 Mounts Bay Road, Bank Limited) London E14 4BB Perth WA 6000 1 Merchant Place Telephone: +44 (0) 20 Telephone: +61 (0) 8 Cnr of Rivonia Rd and 7623 2323 9488 1400 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: +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, Southpoint, 100 Mill Point Road, South Perth WA 6151, Australia Postal Address: PO Box 485, South Perth, WA 6951, 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 Willi Boehm +27 (0)10 001 2848 +61 (0) 8 9367 5211 Glossary A$ Australian Dollar Aquarius or Aquarius Platinum Limited 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 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 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 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
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