Register to get unlimited Level 2

Company Announcements

AQUARIUS PLATINUM LIMITED - First Quarter 2015: Financial and Production Results

Related Companies

PR Newswire

AQUARIUS PLATINUM LIMITED



First Quarter 2015: Financial and Production Results



Highlights

Revenue increased by 3% to $62 million (Q1 2014: $60 million) in line with
slightly higher prices

On-mine EBITDA increased 138% to $14.8 million (Q1 2014: $6.3 million)

Group cash balance (excluding cash in joint venture entities) at quarter end
$138 million (June 2014: $137 million) with a further $19 million held in joint
venture entities (June 2014: $16 million), 50% of which is attributable to
Aquarius;

Attributable production from operating mines up 3% quarter-on-quarter and up 4%
compared to the previous corresponding period (pcp)

Cash costs at Kroondal remain below guidance , decreased 4% to R9,001 per PGM
ounce quarter-on-quarter - down 1% compared to the previous year

Cash costs at Mimosa were up 1% to $815 per PGM ounce quarter-on-quarter after
adjusting for one-off voluntary retrenchment costs incurred in the previous
quarter- down 3% compared to the pcp.

Surface stockpile at Mimosa increased - now 184,375 tonnes

Kroondal PGM basket price increased 4% on average to R13,270 per PGM ounce
quarter-on-quarter - up 12% compared to the pcp

Mimosa PGM basket price increased 4% on average to $1,200 per PGM ounce
quarter-on-quarter - up 8% compared to the pcp

The Rand weakened against the US Dollar by 1% on average quarter-on-quarter -
down 7% compared to pcp



                        Q1 2015 Operating Results
                                 Summary

                     Kroondal  Mimosa Platinum Mile

4E PGM production

  Total (100% basis)   112,248 57,799          1,831

        Attributable    56,124 28,900          1,831

4E basket price

                R/oz    13,270                12,946

                $/oz     1,239  1,200          1,202

Cash costs (4E
basis)

                R/oz     9,001                 8,789

                $/oz       840    815            816



Cash margin (%)             20     41             11



Stay-in-business
capex

                R/oz       915                     0

                $/oz        85     95              0


Commenting on the results, Jean Nel, CEO Aquarius Platinum said:

The quarter under review was defined by excellent safety, production and cost
performances from both our Kroondal and Mimosa operations, producing a record
combined 85,024 attributable 4E ounces. We have in Kroondal an efficient
underground platinum mine (on a R/ton cost basis) and in Mimosa a mine that is
benefiting from the restructure implemented earlier in the year as well.
Kroondal delivered its seventh consecutive production quarter of in excess of
105,000 4E oz's while Mimosa continues to deliver production ahead of guidance.
The results of Kroondal's cost saving and efficiency drive is worthy of a
special mention, which I think is a really special performance. Delivering this
disciplined cost and production performance whilst at the same time
significantly improving safety is testimony to excellent operational management
for which Wessel Phumo (GM at Kroondal), Peter Chimboza (Resident Director at
Mimosa), Rob Schroder (Group COO) and the teams deserve all the credit.



The excellent operational performances and the slightly higher metal prices
which prevailed during the quarter enabled the company to substantially
increase EBITDA by 138%, deliver a net profit and generate positive free cash
flow.



Following the successful rights issue implemented earlier in 2014 Aquarius has
a sustainable balance sheet with net cash. The Board is of a view that
retaining a sustainable level of debt on balance sheet is appropriate.



The positively trending metal price during the first 2 months of the quarter
reversed sharply towards quarter end and this reversal continued post quarter
end with the Platinum price in particular hitting six year lows.  Our
commitment and focus on safety, production and cost discipline will remain
absolute in the low price environment.



Work on our incremental growth projects continued during the quarter and an
update is provided later in the release. The difficult environment in which
Southern African platinum producers operate reinforces our view that projects,
and concomitant production growth, is only worthy of capital allocation if it
increases margins and generates returns in excess of the cost of capital.



Production by mine

                                         Quarter ended
PGMs (4E)
                   Sept 2014    June 2014    % Change   Sept 2013    % Change

Kroondal               112,248      106,181          6      106,441          5

Mimosa                  57,799       60,818        (5)       55,110          5

Platinum Mile            1,831            -        100        3,729       (51)

Total                  171,878      166,999          3      165,280          4




Production by mine attributable to Aquarius (Operating mines)

                                         Quarter ended
PGMs (4E)
                   Sept 2014    June 2014    % Change   Sept 2013    % Change

Kroondal                56,124       53,090          6       53,220          5

Mimosa                  28,900       30,409        (5)       27,555          5

Platinum Mile            1,831            -        100        3,729       (51)

Total                   86,855       83,499          4       84,504          3






Aquarius Group quarterly attributable production (PGM ounces) to 30 September
2014

See www.aquariusplatinum.com for graph





PGM markets update

Platinum prices remained volatile in the context of the prolonged strike action
in the first half of the year but in September fell to intra-year lows below
$1,350/oz, and continued its fall post the quarter to the lowest levels since
2006. Despite c.1Moz of supply being lost during the strike, platinum prices
remained under pressure due to abundant stock levels that kept the market well
supplied and deteriorating global economic growth expectations in the context
of weak economic data.



Palladium's strong YTD momentum was partially reversed in early September, with
the metal trading broadly in line with the PGM complex which saw significant
pressure in the month. Having reached 13 year highs at the beginning of
September, prices slipped below $800/oz towards the end of the quarter.



PGM investment demand registered record highs during the quarter. Platinum ETF
holdings reached a peak of 3.07Moz in June, while palladium holdings hit a
record high of 3.12Moz in August. A supportive investor sphere has helped to
boost palladium on top of favourable fundamentals, but it has struggled to lift
platinum prices even against the backdrop of severe supply disruptions.



In Europe, a key auto region for platinum, the auto industry has shown gradual
signs of recovery albeit the most recent economic data suggests European
conditions remain tough. The implementation of Euro VI legislation being rolled
out this month is expected to support demand in forthcoming months, with
loadings favouring platinum particularly for smaller vehicles where the
nitrogen oxides trap will be preferred. In China, dealer destocking and
speculation of purchase restrictions have slowed auto sales, however even
though the growth rate is slower it is still positive.



The South African Rand remained under pressure during the quarter and weakened
further by 1% quarter-on-quarter and 7% compared to the pcp.



Specific PGM prices commentary

The average platinum price decreased by 0.9%, while palladium increased by 5.9%
and lesser traded rhodium increased by 12.9% from previous quarter. Gold
decreased by 0.5% on average. Platinum closed the quarter down 11.7% at $1,304
per ounce, while palladium reduced by 6.1% to $788 per ounce and rhodium
increased by 12.2% to $1,240 in comparison to previous quarter. Gold decreased
7.5% to $1,217 per ounce.



12-month individual PGM prices to 30 September 2014 (US$/oz)

12-month PGM basket prices to 30 September 2014 (US$ and ZAR per PGM basket
ounce)

12-month ZAR price to 30 September 2014  (ZAR/US$)

See www.aquariusplatinum.com for graphs



Average PGM basket prices achieved at Aquarius operations



                                            Quarter ended
US$ per PGM ounce (4E)
                         Sept 2014  June 2014  % Change  Sept 2013  % Change

Kroondal                   1,239      1,215        2       1,183        5

Mimosa                     1,200      1,156        4       1,133        6

Platinum Mile              1,202        -         n/a      1,173        2

Weighted Avg.              1,225      1,194        3       1,168        5




Financials

Aquarius recorded an on-mine EBITDA profit of $14.8 million for the quarter
ended 30 September 2014, an increase of $8.5 million or 138% compared to the
on-mine EBITDA of $6.3 million earned in the previous corresponding quarter,
September 2013 (pcp).



Aquarius' share of profit from joint venture entities (Mimosa & Blue Ridge) was
a profit of $6 million, an $8 million turnaround compared to the pcp.  Net
profit after tax was $5 million, a $15 million turnaround compared to the pcp.



The improved result compared to the pcp was due to increased production up 3%,
higher PGM prices up 5% in Dollar terms, lower costs down 3% and a weaker Rand
down 7%.  Revenue was up 3% to $62 million, compared to $60 million in the pcp,
due to increased production and improved PGM prices.  In Rand terms, aggregate
revenue increased 11% compared to the pcp due to higher Dollar prices (up 5%)
and the impact of a 7% depreciation in the Rand.



Production for the quarter was 86,855 PGM ounces, a 3% increase compared to the
pcp.  Kroondal continued to excel with production up 6% quarter on quarter
whilst reducing unit costs.  This is the eighth consecutive quarter that
Kroondal has produced in excess of 100,000 PGM ounces. Production at PlatMile
resumed in July 2014 following the end of the strike at Anglo Platinum's
operations which supplies feed to PlatMile's operations. Production at joint
venture entity Mimosa remained consistent.



Total cost of sales of $56 million was 10% lower compared to the pcp, despite a
3% increase in production, due to a 7% weakening in the Rand/Dollar exchange
rate.  In Rand terms, total cost of sales were 3% lower compared to the pcp.
 On an ounce cash cost basis, Kroondal's cash costs per ounce in Rand terms
decreased 1% compared to the pcp and decreased by 8% in Dollar terms due to the
weaker Rand.  Amortisation and depreciation of $6 million was comparable to the
pcp.



Compared to the previous quarter ended June 2014, cash costs at Kroondal
decreased by 4% per PGM ounce in Rand terms. This decrease was driven by
increased volumes and a continued focus on operational efficiencies as well as
building of ore stock piles which results in an accounting adjustment lowering
costs.  In Dollar terms Kroondal's cash costs were 6% lower compared to the
previous quarter ended June 2014 due to a weaker Rand and increased ore stock
pile levels.



Mimosa's cash costs per PGM ounce decreased 3% compared to the pcp and
increased 1% compared to the previous quarter ended June 2014 after adjusting
for one-off voluntary retrenchment costs.



Administrative costs of $1.7 million were in line with the pcp maintaining cost
reduction initiatives taken by the Aquarius Group.  Finance costs include
interest paid on borrowings of $1.5 million, non-cash interest accretion on
convertible bonds of $1.2 million and the unwinding of the rehabilitation
provision of $1.2 million.  Finance costs for the quarter were 43% lower
compared to the pcp following the $172.6 million bond buy back in May 2014.



Net operating cash inflow for the quarter of $6 million comprised $53 million
inflow from sales, $48 million paid to suppliers and $1 million interest
received. Development and capital expenditure for the quarter was $6 million.
Net financing cash inflows of $3.6 million included dividends of $4.5 million
from Mimosa, $0.3 million interest paid and $0.6 million of transaction costs
paid relating to the rights issue and bond buyback.





The Group's cash balance was $138 million at the end of the quarter, held as
follows:

AQP          $94 million

AQPSA        $40 million

ASACS          $1 million

Platmile       $2 million

Ridge Mining   $1 million

Total        $138 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 30
September 2014 was $19 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 ($9.5 million) would have
been included in Aquarius' Group cash balance.



(The segment note provided on page 10 details the income statement for each
operating division of the Aquarius Group.)





                        Consolidated Income Statement

                       Quarter ended 30 September 2014

                                    $'000

                                             Quarter  Quarter  Financial Year
                                              Ended                Ended
                                                       Ended

                                      Note  30/09/14* 30/09/13    30/06/14
                                                         *

PGM production - Kroondal & Platmile           57,955   56,949        220,961

PGM production - Mimosa                        28,900   27,555        110,681

Total PGM production                           86,855   84,504        331,642





Revenue                               (i)      61,744   59,660        233,056

Cost of sales (including D&A)         (ii)   (56,453) (62,519)      (231,158)

Gross profit/(loss)                             5,291  (2,859)          1,898

Other income                                       48       11            174

Administrative costs                 (iii)    (1,658)  (1,661)        (7,353)

Foreign exchange gain                 (iv)        417    1,967          1,843

Finance costs                         (v)     (3,920)  (6,828)       (28,091)

Impairment losses                               (355)        -        (3,084)

Profit on repurchase of bonds                       -        -         10,925

Profit on sale of assets                           30        -            653

Closure, transition and rehabilitation              -     (12)          5,342
reversal/(cost)

Share of profit/(loss) from joint     (vi)      6,446  (1,304)          5,055
venture entities

Profit/(loss) before income tax                 6,299 (10,686)       (12,638)

Income tax benefit/(expense)         (vii)    (1,085)      489          (544)

Net profit/(loss)                               5,214 (10,197)       (13,182)



Net profit/(loss) is attributable
to:

Equity holders of Aquarius Platinum             5,106 (10,228)       (13,048)
Limited

Non-controlling interests            (viii)       108       31          (134)

                                                5,214 (10,197)       (13,182)

Earnings per share

Basic earnings/(loss) per share                  0.55   (2.17)         (1.38)
(cps)




* Unaudited



Notes on the September 2014 Consolidated Income Statement

The 3% increase in revenue reflects increased production and improved PGM
prices compared to the pcp.  In Rand terms aggregate revenue increased 11% due
to higher Dollar prices (up 5%) and the impact of a 7% depreciation in the Rand
compared to the pcp.

Lower aggregate cost of sales including D&A in Dollar terms despite a 3%
increase in production was due to a 7% depreciation of the Rand compared to the
pcp.  In Rand terms aggregate costs decreased by 3%.  Kroondal unit costs in
Rand terms were 1% lower after stock pile movements compared to the pcp and 8%
lower in Dollar terms due to a weaker Rand. Transfers to and from stockpile has
a bearing on unit costs due to the high fixed cost element of operating costs.

Administrative costs are consistent with the prior period.

The foreign exchange gain of $0.4 million 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 $1.5 million, non-cash
interest accretion on convertible bonds of $1.2 million and the unwinding of
the rehabilitation provision of $1.2 million.

Represents share of profit of Mimosa and Blue Ridge, the joint venture
entities.

Income tax expense consists of AQPSA deferred tax.

Non-controlling interests reflect the 8.3% non-controlling interest of Platinum
Mile Resources (Pty) Ltd.



                   Consolidated Statement of Cash Flows

                      Quarter ended 30 September 2014

                                   $'000

                                      Quarter  Quarter
                                                       Financial Year Ended
                                       Ended    Ended

                               Note  30/09/14*   30/09/13*       30/06/14

Net operating cash inflow       (i)      6,353           729           21,092

Net investing cash outflow     (ii)    (5,640)       (4,352)         (27,224)

Net financing cash inflow      (iii)     3,607        13,902           62,271

Net increase in cash held                4,320        10,279           56,139

Opening cash balance                   136,819        77,773           77,773

Exchange rate movement on cash         (3,595)         2,845            2,908

Closing cash balance           (iv)    137,544        90,897          136,820




* Unaudited



Notes on the September 2014 Consolidated Statement of Cash Flows

Net operating cash flow for the quarter includes $53 million inflow from sales,
$48 million paid to suppliers and $1 million interest received.

Comprises $6 million of development and plant & equipment expenditure at AQPSA.

Includes dividends of $4.5 million from Mimosa, $0.3 million interest paid and
$0.6 million of transaction costs paid relating to the rights issue and bond
buyback completed in the 2014 financial year.

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 30
September 2014 was $19 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

                            As at 30 September 2014

                                     $'000

                                                                                  As at     As at
                                                                          Note
                                                                                30/09/14*  30/06/14

Assets

Cash and cash equivalents                                                       137,544    136,820

Current receivables                                                       (i)   30,963     30,104

Other current assets                                                      (ii)  15,332     15,246

Investments in joint venture entities                                    (iii)  225,246    230,410

Mining assets                                                             (iv)  204,002    209,211

Intangible asset                                                          (v)   50,916     54,499

Other non-current assets                                                  (vi)  37,858     41,185

Total assets                                                                    701,861    717,475

Liabilities

Current liabilities                                                      (vii)  35,975     40,123

Non-current payables                                                     (viii) 1,984      2,065

Non-current interest-bearing liabilities                                  (ix)  121,643    118,919

Other non-current liabilities                                             (x)   78,902     82,600

Total liabilities                                                               238,504    243,707

Net assets                                                                      463,357    473,768

Equity

Issued capital                                                                  73,244     73,216

Treasury shares                                                                 (25,995)   (26,239)

Reserves                                                                        765,750    781,692

Accumulated losses                                                              (355,345)  (360,450)

Total equity attributable to equity holders of Aquarius Platinum Limited        457,654    468,219

Non-controlling interests                                                 (xi)  5,703      5,549

Total equity                                                                    463,357    473,768




* Unaudited



Notes on the September 2014 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.

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, investments in rehabilitation trusts of $16 million and
deferred tax asset of $12 million.

Includes trade creditors of $29 million, AQPSA finance leases of $2 million and
provision for annual leave of $4 million.

Includes rehabilitation obligations on P&SA1 and P&SA2 structures.

Comprises convertible bonds of $119 million and AQPSA equipment leases of $3
million.

Includes deferred tax liabilities $16 million and provision for closure costs
$63 million.

Reflects the 8.3% non-controlling interest of Platinum Mile Resources (Pty)
Ltd.



                                 Segment Note

                        Quarter ended 30 September 2014

                                     $'000



                                            Kroondal Marikana Everest   Mimosa    Plat   CTRP
                                                                                  Mile

Revenue                                     58,754   66       135      40,874   1,694    18

Cost of sales

 - mining, processing and administration    (46,984) (373)*   (1,223)* (22,500) (1,490)  (10)

 - depreciation and amortisation            (5,072)  (51)     (507)    (4,586)  (706)    (51)

Gross profit/(loss)                         6,698    (358)    (1,595)  13,788   (502)    (43)

Other income                                -        -                 73       -        -

Administrative costs                        -        -        -        -        -        -

Foreign exchange gain/(loss)                4,572    -        -        (26)     76       -

Finance costs                               -        -        -        -        -        -

Impairment losses                           -        -        -        -        -        -

Profit on sale of assets                    -        -        -        -        -        -

Community share ownership trust             -        -        -        (1,000)  -        -

Share of profit from joint venture entities -        -        -        -        -        -

Profit/(loss) before income tax             11,270   (358)    (1,595)  12,835   (426)    (43)

Income tax (expense)/benefit                -        -        -        -        -        -

Net profit/(loss) from ordinary activities  11,270   (358)    (1,595)  12,835   (426)    (43)





On-mine EBITDA                              16,011   (366)    (1,063)  18,331   265      (10)




*Consists of care and maintenance costs









                                 Segment Note

                        Quarter ended 30 September 2014

                                     $'000



                                            Blue  Corporate/  Segment  Reconciliation Consolidated
                                            Ridge
                                                  Unallocated  Result        to
                                                                        Consolidated

                                                                        Information

Revenue                                     9     1,077       102,627  (40,883)       61,744

Cost of sales

 - mining, processing and administration    (232) -           (72,812) 22,748         (50,064)
                                            *

 - depreciation and amortisation            -     (1)         (10,974) 4,585          (6,389)

Gross profit/(loss)                         (223) 1,076       18,841   (13,550)       5,291

Other income                                6     48          127      (79)           48

Administrative costs                        -     (1,671)     (1,671)  13             (1,658)

Foreign exchange gain/(loss)                -     (4,089)     533      (116)          417

Finance costs                               -     (4,929)     (4,929)  1,009          (3,920)

Impairment losses                           -     (355)       (355)    -              (355)

Profit on sale of assets                    -     30          30       -              30

Community share ownership trust             -     -           (1,000)  1,000          -

Share of profit from joint venture entities -     -           -        6,446          6,446

Profit/(loss) before income tax             (217) (9,890)     11,576   (5,277)        6,299

Income tax (expense)/benefit                -     (6,362)     (6,362)  5,277          (1,085)

Net profit/(loss) from ordinary activities  (217) (16,252)    5,214    -              5,214





On-mine EBITDA                              (238) 12          32,942   (18,093)       14,849




*Consists of care and maintenance costs




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 improved to 0.55 per 200,000 man hours from 0.73
in the previous quarter

Production increased 13% to 2,013,000 tonnes from 1,786,000 tonnes,
quarter-on-quarter

Head grade remained stable at 2.37 g/t

Recoveries remained stable at 78%

Volumes processed increased by 5% to 1,882,000 tonnes, quarter on quarter

Stockpiles at the end of the quarter totalled approximately 167,000 tonnes

PGM production increased by 6% to 112,248 PGM ounces, quarter-on-quarter

Revenue in Rand terms increased by 4% to R1.24 million, quarter-on-quarter, due
to improved basket prices and higher PGM production

Mining cash costs decreased by 4% to R537 per tonne, due to improved volume

Unit cost per PGM ounce decreased 4% to R9,001 per PGM ounce

Kroondal's cash margin for the period increased from 17% to 20% quarter on
quarter



See www.aquariusplatinum.com for graph



Commentary

Kroondal:

The 12 month rolling DIIR improved from 0.73 in the previous quarter to 0.55
and the 3 month DIIR rate remained stable at 0.43. This follows the continued
focus and management of safety performance. This significantly improved safety
performance notwithstanding, on 11 October 2014 a Kroondal employee, Pedro
Nhabinde, lost his life in a fall of ground at Kroondal's Kwezi shaft. The
Board and management of Aquarius express their deepest condolences to his
family and friends. The requisite inquiries and investigations by management
and the DMR are ongoing. The section 54 notice issued by the DMR  after the
fatal accident was lifted on 21 October 2014.



Production for the quarter of 2 million tonnes was achieved notwithstanding
different non-mining challenges that were encountered at operations.



Operations at K6 remained very challenging inclusive of potholes. Kwezi Shaft
was the best performing Shaft during the quarter.  There was a significant
reduction in the number of Lost Blasts recorded for the quarter.  The ore split
project which is designed to split the iron-rich ultramafic pegmatite (IRUP)
which is situated at the bottom of the main seam from the ore and hence improve
recoveries is ongoing.

Kopaneng Shaft's production performance has improved drastically since the
underground workshop and the new chairlift have been commissioned.  Simunye
Shaft has kept production steady despite challenges relating to the
availability of equipment. Bambanani Shaft has now connected the belts from
Marikana 4 Shaft Western Trunk to the main Shaft of Bambanani at Strike 5.
Personal Detection Systems are being installed at both Kopaneng and Kwezi and
should be commissioned by the end of Q2.



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       9,001              7,392                    7,168






Capital expenditure

                                            Kroondal

 (R'000 unless otherwise stated)         Total  Per 4E oz

Ongoing establishment of infrastructure  97,351       867

Project capital (K6 shaft)                5,405        48

Mobile equipment                         20,308       181

Total                                   123,063     1,096




Kroondal mine: reconciliation of cash costs per 4E ounce



                                               Cost per 4E ounce (Rand)

                                                 Q1 2015     Q4 2014

Total operating expenditure                         10,601       11,025

Less:

Ongoing capital expenditure & mobile equipment     (1,048)      (1,332)

Project capex (K6 shaft)                              (48)        (287)

Transferred from/(to) stockpile                      (504)         (10)

On mine cash costs                                   9,001        9,396




Development of the K6 shaft at Kroondal is almost complete with only minor
surface infrastructure snags and the permanent power construction being
completed during H1 of FY15.



Mines on 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.



Everest Mine

Similarly, given the continuing low Rand PGM basket prices, temporary
geological problems and unstable labour relations, the Everest mine remains
placed on care and maintenance until further notice.



MIMOSA INVESTMENTS (Aquarius Platinum - 50%)



12-month rolling average DIIR was 0.05 per 200,000 man hours worked

Production increased by 1% to 655,034 tonnes, quarter-on-quarter

Head grade decreased by 1% to 3.64 g/t

Recoveries increased by 1 % to 78%

Volumes processed decreased by 2% to 635,761 tonnes

Stockpiles at the end of the quarter totalled approximately 184,375 tonnes

PGM production decreased by 5% to 57,799 PGM ounces quarter-on-quarter, due to
a planned 4 day plant shutdown in the quarter

Revenue increased by 4% to $82 million, from $79 million in the previous
quarter due to higher metal prices

Mining cash costs decreased by 15% to $72 per tonne, and costs per PGM ounce by
10% to $815 due to a reduction in labour costs as a result of the voluntary
retrenchment exercise in the prior year.

Stay-in-business capital expenditure was $95 per PGM ounce for the quarter

Gross cash profit margin for the period increased from 30% to 41%



See www.aquariusplatinum.com for graph



Operating cash costs per ounce

Unit cash costs per PGM ounce (before by-product credits) were 10% lower than
the previous quarter due to reduction in labour costs as a result of the
voluntary retrenchment exercise in prior year.



                4E                   6E               4E net of by-products
          (Pt+Pd+Rh+Au)     (Pt+Pd+Rh+Ir+Ru+Au)
                                                          (Ni, Cu & Co)

Mimosa         815                  769                        521




Capital expenditure

The total capital expenditure for the first quarter amounted to $5.5 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 was 1 million tonnes

Head grade of feed material was 0.58 g/t

Recoveries were 9%

Production was 1,831 PGM ounces

Cash costs increased was R8,789 per PGM ounce

Revenue was R19 million for the quarter

The cash margin for the period was 11%



Commentary

Platinum Mile:

The Platinum Mile Operation recommenced production in July 2014 following the
end of the strike at Anglo Platinum.  The operation is in build up phase and is
expected to reach steady state production in the next quarter. Whilst the
operation is in build-up phase operating costs per unit will not be reliable.
Present unit cash costs for this quarter of R8,789 are expected to reduce as
the plant attains steady state production.



Expansion

The coarse grinding mills were successfully hot commissioned during the current
quarter and the production ramp-up and plant optimisation process has
progressed satisfactorily. The next quarter should see increased yields in
recoveries as a result.

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      8,789              7,576                  7,068






Chromite Tailings Retreatment Plant (CTRP) (Aquarius Platinum - 50%)

This operation remains on care and maintenance.



CORPORATE MATTERS

Board Changes

Aquarius Chairman, Mr Nicholas Sibley, has advised that he will step down from
the Board on 28 February 2015 after being a non-executive director for 15 years
and Chairman since 2002. Mr Sibley will be replaced by Sir Nigel Rudd who will
join the Board on 1 November 2014 and resume the Chairmanship on 1 March 2015.
Sir Nigel has been involved with South African companies for over 25 years and
for the last seven has been a non-executive director of Sappi where he is their
lead director. He is a founder shareholder of Atlas Mara which has interests in
banking in Southern Africa including Zimbabwe.



Potential sale of non-core assets

Sale of Kruidfontein prospecting right

The previously announced sale of Kruidfontein is unconditional. In terms of the
contract the gross sale proceeds of $27 million are due to Aquarius before 1
December 2014. Upon receipt of the proceeds Aquarius has an obligation to pay
the previous owners $10.8 million either in cash or in Aquarius shares at the
price prevailing at receipt of the principle. Shareholders will be updated in
this regard in due course.



Terminated sale of 50% interest in Blue Ridge

Aquarius released an announcement on 15 October 2014 in which it confirmed that
following the non-fulfilment of certain conditions precedent the agreement in
terms of which it had conditionally disposed of its interest in the Blue Ridge
mine had lapsed.



Blue Ridge remains non-core to Aquarius and it will continue to assess all
alternatives to extract value from its investment including a sale of the mine
as a going concern or in the alternative a sale of the mine plant and assets.



Growth projects

As part of our year-end results presentation in August 2014, Aquarius advised
that a number of incremental growth projects had been identified and were in
different phases of assessment. A brief update is provided below and a
comprehensive update will be provided as part of the half-year results release
in February 2015.

The additional milling capacity which was installed at Plat Mile has been
commissioned and is operating to expectations;

The 30% Mimosa expansion pre-feasibility study is underway and is expected to
be completed by the time our half year results are announced in February 2015;

The Kroondal tailing retreatment project planning continues but execution is
being delayed because of delays in obtaining the integrated water use license.
A specific update will be included in the interim results announcement;

Good progress has been made in terms of studying the alternatives available to
extract value from the Everest infrastructure and discussions with a number of
entities are ongoing. Everest will not re-commence production unless the Board
is of a view that it is able to generate an appropriate return for
shareholders.



Balance sheet

Following the successful rights issue implemented earlier in 2014 Aquarius has
a sustainable balance sheet with net cash. The Board is of a view that
retaining a sustainable level of debt on balance sheet is appropriate.







Statistical information: Kroondal P&SA1

See www.aquariusplatinum.com for statistical information



Statistical information: Mimosa

See www.aquariusplatinum.com for statistical information



Statistical information: Platinum Mile

See www.aquariusplatinum.com for statistical information



Aquarius Platinum Limited
Incorporated in Bermuda

Exempt company number 26290



Board of Directors

Nicholas Sibley        Non-executive Chairman

Jean Nel               Chief Executive Officer

David Dix              Non-executive

Tim Freshwater         Non-executive (Senior Independent Director)

Edward Haslam          Non-executive

Kofi Morna             Non-executive

Zwelakhe Mankazana     Non-executive

Sonja De Bruyn Sebotsa Non-executive




Audit/Risk Committee

David Dix (Chairman)

Tim Freshwater

Edward Haslam

Kofi Morna

Nicholas Sibley



Remuneration Committee

Edward Haslam (Chairman)

David Dix

Zwelakhe Mankazana

Nicholas Sibley



Nomination Committee

Sonja De Bruyn Sebotsa (Chairman)

Edward Haslam

Tim Freshwater

Kofi Morna

Willi Boehm



Chief Operating Officer
Robert Schroder



Company Secretary

Willi Boehm



AQPSA Management

Robert Schroder Managing Director

Jean Nel        Executive Director

Wessel Phumo    General Manager: Kroondal



Mimosa Mine Management

Winston Chitando Chairman

Peter Chimboza   Resident Director

Fungai Makoni    General Manager Finance & Company Secretary




Platinum Mile Management

Richard Atkinson Managing Director

Paul Swart       Financial Director




Issued capital

At 30 September 2014, the Company had on issue 1,464,872,899 fully paid common
shares.



Substantial shareholders 30 September 2014   Number of Shares  Percentage

HSBC Custody Nominees (Australia) Limited          131,003,316        8.94

JP Morgan Nominees Australia Limited                59,667,591        4.07




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 Colonnade Level 18 Alluvion
Canary Wharf          58 Mounts Bay Road,   Rand Merchant Bank
London E14 4BB        Perth WA 6000         (A division of FirstRand Bank
Telephone: +44 (0) 20 Telephone: +61 (0) 8  Limited)
7623 2323             9488 1400             1 Merchant Place
                                            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:              +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 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:              +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

ASACS    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      former 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

Marikana Marikana Platinum Mine or P&SA2 at Marikana

Mimosa   Mimosa Mining Company (Private) Limited

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

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.

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

Top of Page