TIDMAQP
AQUARIUS PLATINUM LIMITED
Production Results to 30 June 2015
Highlights
* Attributable production from operating mines up 5% quarter-on-quarter, up
6% compared to previous corresponding period, quarter ended June 2014 (pcp)
* Both Kroondal and Mimosa production at fourth quarter record levels
* Average US$ PGM basket price decreased 4% for the quarter - down 16%
compared to pcp
* Kroondal PGM basket price decreased 3% on average to R12,120 per PGM ounce
quarter-on-quarter - down 5% compared to the pcp
* Mimosa PGM basket price decreased 3% on average to $1,010 per PGM ounce
quarter-on-quarter - down 13% compared to the pcp
* The Rand weakened against the US Dollar 3% on average quarter-on-quarter -
down 14% compared to the pcp
* Cash costs at Kroondal down 4% to R9,201 per PGM ounce quarter-on-quarter -
down 2% compared to the pcp
* Cash costs at Mimosa unchanged at $797 per PGM ounce quarter-on-quarter -
down 1% compared to the pcp
* Sale proceeds from sale of Everest mine $33 million (Part A) received
during the quarter
* Attributable group closing cash at 30 June $201 million ($196 million on
Balance Sheet with a further $5 million attributable to Aquarius held in JV
entities)
Q4 2015 Operating Results
Summary
Kroondal Mimosa PlatMile
4E PGM production
Total (100% 112,024 60,035 2,773
basis)
Attributable 56,012 30,018 2,773
4E basket price
R/oz 12,120 - 11,756
$/oz 1,005 1,010 978
Cash costs (4E
basis)
R/oz 9,201 - 7,671
$/oz 763 797 638
Cash margin (%) 6 23 14
Stay-in-business
capex
R/oz 1,086 - 0
$/oz 90 118 0
Commenting on the results, Jean Nel, CEO Aquarius Platinum said:
The fourth quarter was characterised by a particularly good performance from
both Aquarius operating mines. Both Kroondal and Mimosa again improved safety,
delivered all time fourth quarter production records and reduced costs, in what
remains a challenging operating environment. The performance is testimony to a
disciplined approach to operations and the operating teams at Kroondal and
Mimosa deserve much credit for this. From a macro perspective, the lower metal
prices which prevailed during the period and especially post quarter end will
not only require an increased focus on safety, cost and production discipline,
an approach which Aquarius will remain committed to, but also a focussed
assessment of the viability of each shaft at each operating mine to ensure the
sustainability of the business in a low metal price environment.
Production by mine attributable to Aquarius (Operating mines)
PGMs (4E) Quarter ended
June 2015 Mar 2015 % Change Jun 2014 % Change
Kroondal 56,012 53,544 5 53,090 6
Mimosa 30,018 28,696 5 30,409 (1)
PlatMile 2,773 2,552 9 - (42)
Total 88,803 84,792 5 83,499 6
Average PGM basket prices achieved at Aquarius operations updated Braam
US$ per PGM Quarter ended
ounce (4E)
June 2015 Mar 2015 % Change Jun 2014 % Change
Kroondal 1,005 1,062 (5) 1,215 (17)
Mimosa 1,010 1,036 (3) 1,156 (13)
PlatMile 978 1,039 (6) 0 0
Weighted 1,006 1,053 (4) 1,194 (16)
Avg.
Aquarius Group quarterly attributable production (PGM ounces) to 30 June 2015
See http://www.aquariusplatinum.com/ for graph
PGM markets update
Precious metals suffered a weak end to the quarter, with the price of Palladium
decreasing to almost a two-year low, ending the quarter at $675 per ounce (down
8%). Platinum also moved lower across the quarter, but avoided the weakness
towards the end of June, stabilising to finish the quarter at $1,080 per ounce
(down 6%), and continued to weaken post quarter end. The fall across both
precious metals was largely driven by ETP outflows and weaker than expected
Chinese consumption.
Platinum imports in China declined for the second straight month in May and
fell 15% m/m, but rose a modest 2% y/y. Volumes traded on the Shanghai Gold
Exchange rose 50% y/y and 18% m/m in May, as local prices fell 21% y/y.
Although some positivity was seen as appetite responded to a lower price
environment, concerns increased as it was insufficient to offer a firmer
cushion.
Palladium imports in China also continued to fall, declining for the eighth
straight month in June. Imports fell by 27% y/y and 36% m/m, falling to their
lowest level since February. Imports at 36koz takes this year's run rate to
48.6koz from 63koz last year, and the year-to-date imports are down 30% y/y.
Underlying demand from the auto sector has softened further in recent months.
Palladium has now fallen below $700/oz, to its lowest level since July 2013.
ETP outflows resumed in June after a two-month hiatus, and outflows reached
106.3koz for the year.
The average Rand-Dollar exchange rate weakened during the quarter by 1.5% from
R11.97 to R12.15. Since then, the Rand has weakened further 2% in the first
two week of July, and trending around a level of R12.5.
12-month individual PGM prices to 30 June 2015 (US$/oz)
See http://www.aquariusplatinum.com/ for graph
12-month PGM basket prices to 30 June 2015 (US$ and ZAR per PGM basket ounce)
See http://www.aquariusplatinum.com/ for graph
Operating Review Summary (all numbers on 100% basis)
AQUARIUS PLATINUM (SOUTH AFRICA) (PTY) LTD (Aquarius Platinum - 100%)
P&SA1 at Kroondal (Aquarius Platinum - 50%)
* 12-month rolling average DIIR per 200,000 man hours remained stable at 0.65
from the previous quarter
* Production increased to 1,755,000 tonnes from 1,576,000 tonnes,
quarter-on-quarter
* Head grade increased marginally to 2.48 g/t from 2.46 g/t
* Recoveries decreased by 1% to 79%
* Volumes processed higher at 1,775,000 tonnes
* Stockpiles at the end of the quarter totalled approximately 27,000 tonnes
* PGM production increased by 5% to 112,024 PGM ounces, quarter-on-quarter, a
fourth quarter record;
* Revenue in Rand terms increased by 0.4% to R1,097 million,
quarter-on-quarter, albeit after the significant reduction in dollar prices
in the last month of the quarter resulting in a negative sales adjustment
for the last month in the quarter.
* Mining cash costs decreased by 4% to R581 per tonne, due to improved volume
* Unit cost per PGM ounce decreased 4% to R9,201 per PGM ounce in line with
increased production
* Kroondal's cash margin for the period remained at 6%
Kroondal: Production, Cash Cost and Price Analysis
See http://www.aquariusplatinum.com/ for graph
Capital Expenditure
Kroondal
(R'000 unless otherwise Total Per 4E oz
stated)
Ongoing establishment of 119,676 1,068
infrastructure
Project capital (K6 2,012 18
shaft)
Mobile equipment 36,015 321
Total 157,703 1,407
Commentary
Kroondal:
There were no fatalities during the quarter. The 12 month rolling DIIR remained
stable at 0.65 from the previous quarter but the 3 months DIIR rate improved to
0.47 from 0.70. One Section 54 instruction was issued during the quarter.
Production at Kroondal for the quarter was up 11% to 1,755,000.
Kroondal achieved its tenth consecutive +105,000 PGM production quarter. Unit
costs in Rand terms continued to respond positively down 4% quarter on quarter
and down 2% compared to the previous corresponding period June 2014 in spite of
South Africa's inflation rate of approximately 6%.
Operations at K6 Shaft remained challenging. During the quarter the
installation of two new conveyor belts and a tip were completed, which is
expected to positively impact production in coming quarters. Kwezi shaft still
have reduced ends due to poor ground conditions and continue to mine
consistently during the quarter. Simunye shaft's TMM fleet stabilized during
the quarter with the addition of the last replacement machines. The newly
installed chairlift at Simunye was licensed during the quarter and will enhance
efficiencies. Bambanani production volumes were stable during the quarter.
Recently installed chairlift are expected to be licensed during Q1 of FY16.
Ventilation constraints continue to be resolved at Kopaneng with the raise
boring of the new ventilation shaft now under way.
Successful trials now completed to mitigate the treating of iron-rich
ultramafic pegmatite (IRUP) ore being mined at Kwezi have resulted in a new
reagent regime being implemented. Recoveries are constant and the blending of
Kwezi ore is constant as well. The processing plants produced stably throughout
the quarter.
During the quarter the Kroondal work force maintained a positive outlook with
open communication channels on all levels.
AQPSA Operating cash costs per ounce (Rand)
4E - (Pt+Pd+Rh+Au) 6E - 6E net of by-products -
(Pt+Pd+Rh+Ir+Ru+Au) (Ni&Cu)
Kroondal 9,201 7,566 7,357
Kroondal mine: reconciliation of cash costs per 4E ounce
Cost per 4E ounce
(Rand)
Q3 2015 Q4 2015
Total operating expenditure 10,106 10,536
Less:
Ongoing capital expenditure & mobile (1,034) (1,390)
equipment
Project capex (K6 shaft) (45) (18)
Transferred from/(to) stockpile 533 73
On mine cash costs 9,560 9,201
MIMOSA INVESTMENTS (Aquarius Platinum - 50%)
* 12-month rolling average DIIR was 0.03 per 200,000 man hours worked
* Production increased by 9% to 666,170 tonnes, quarter-on-quarter
* Head grade increased by 1% to 3.67g/t, quarter-on-quarter
* Recoveries static at 78.7%
* Volumes processed increased by 7% to 662,787 tonnes
* Stockpiles at the end of the quarter marginally up at 173,984 tonnes
* PGM production increased by 5% to 60,035 PGM ounces quarter-on-quarter, a
fourth quarter record
* Revenue decreased by 2% to $62 million, from $64m in the previous quarter
* Mining cash costs decreased by 4% to $72 per tonne, and costs per PGM ounce
decreased slightly to $797
* Stay-in-business capital expenditure was $118 per PGM ounce for the quarter
* Gross cash profit margin for the period increased from 21% to 23%
Mimosa: Production, Cash Cost and Price Analysis
See http://www.aquariusplatinum.com/ for graph
Operating cash costs per ounce
Unit cash costs per PGM ounce (before by-product credits) were slightly below
the previous quarter.
4E 6E 4E net of by-products
(Pt+Pd+Rh+Au) (Pt+Pd+Rh+Ir+Ru+Au) (Ni, Cu & Co)
Mimosa 797 752 575
Capital expenditure
The total capital expenditure for the quarter was $7.2 million. Expenditure was
incurred mainly on mobile equipment, drill rigs and LHDs, the conveyor belt
extension and down dip development.
TAILINGS OPERATION
Platinum Mile (Aquarius Platinum - 91.7%)
* Material processed decreased 14% to 1,053 million tonnes
* Head grade decreased to 0.57 g/t from 0.59 g/t - quarter on quarter
* Recoveries increased to 15%, up from 12% quarter on quarter
* Production increased to 2,773 PGM ounces as explained below
* Cash costs decreased 18% to R7,671 per PGM ounce
* Revenue was consistent at R25 million for the quarter
* Cash margin for the quarter was 14%, up from 3% in the previous quarter
The maintenance work as reported upon in the previous quarter has had the
desired effect of increased plant availability and as a result recoveries and
production yields increased accordingly.
Revenue for the quarter remained consistent despite lower basket prices due to
higher production.
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 7,671 6,606 6,143
MINES UNDER CARE AND MAINTENANCE
P&SA2 at Marikana (Aquarius Platinum - 50%)
Given the continuing low Rand PGM basket prices, Marikana 4 shaft, the
remaining operating shaft, and the processing plant at Marikana continue on
care and maintenance until further notice.
Chromite Tailings Retreatment Plant (CTRP) (Aquarius Platinum - 50%)
This operation remains on care and maintenance.
CORPORATE MATTERS
Sale of Assets: Everest
Aquarius announced on 10 February 2015 that its subsidiary, AQPSA, had entered
into an agreement to sell its entire interest in the Everest Mine and ancillary
mining and processing infrastructure and immovable properties to Northam
Platinum Limited, for an aggregate cash consideration of 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). On 26 June 2015, R400 million and a further R55 million
representing VAT collected on sale of Everest (Part A) was received by
Aquarius. The R55 million which forms part of the Group's present cash will be
paid out in July 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.
Statistical information: Kroondal P&SA1
See http://www.aquariusplatinum.com/ for table
Statistical information: Mimosa
See http://www.aquariusplatinum.com/ for table
Statistical information: Platinum Mile
See http://www.aquariusplatinum.com/ for table
Issued capital
At 30 June 2015, the Company had on issue: 1,505,339,079 fully paid common
shares.
Substantial shareholders 30 June 2015 Number of Shares Percentage
HSBC Custody Nominees (Australia) 106,668,932 7.09
Limited
HSBC Global Custody Nominee (UK) Limited 36,400,000 2.42
(897467)
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
END
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