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AQP - Aquarius Platinum News Story

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Last Trade - 31/03/16

Sector
Basic Materials
Size
Micro Cap
Market Cap £n/a
Enterprise Value £n/a
Revenue £126.7m
Position in Universe th / 1913

Aquarius Platinum: Half-yearly Results to 31 December 2015

Tue 9th February, 2016 9:00am
AQUARIUS PLATINUM LIMITED

Half-Year Results to 31 December 2015

  Key Points: Financial

  * Revenue of $78 million down 31% compared to the prior corresponding period
    (pcp) due to lower PGM prices
  * Group mine EBITDA $5 million (H1 2015: $18 million) lower despite
    controlled operating costs due to lower PGM prices
  * Share of profit from JV entities: EBITDA $3 million
  * JV entities contributed a net loss of $53 million after one off non-cash
    impairment of $42 million
  * Headline loss (before exceptional charges) of $25 million at 1.69 cents per
    share (H1 2015: loss of $30 million at 2.07 cents per share)
  * Accounting net loss after tax (to IFRS) of $76 million (5.12 cents per
    share) (H1 2015: loss of $57 million at 3.93 cents per share)
  * Convertible bonds $125 million repaid on maturity in December 2015
  * Group cash balance at 31 December 2015 of $42 million, with a further $2
    million attributable to Aquarius held in JV entities

Key Points: Operational

  * Combined H1 production from Kroondal and Mimosa at 352,107 PGM ounces is
    the highest in the company's history
  * Continued improvement in Kroondal's safety performance with 12 month LTIFR
    improving to 0.50 from 0.62 in the pcp
  * Mimosa's 12 month LTIFR deteriorated to 0.13 due to a fatality in August
  * Group attributable production increased by 4% to 182,911 PGM ounces (H1
    2015: 175,831 PGM ounces)
  * Kroondal consistently producing at capacity levels with 12 consecutive
    quarters above 105,000 PGM ounces
  * Kroondal unit costs well controlled increasing by 2% in Rand terms,
    compared to pcp, and decreasing 17% in Dollar terms due to a weaker Rand
  * Production in H1 exceeded guidance at both Kroondal and Mimosa
  * Mimosa performed strongly again, continuing to produce at capacity
  * Mimosa unit costs down 2% compared to the pcp, starting to reflect the
    benefits of the cost savings implemented during H1 FY2015
  * Mimosa PGM Dollar price weakened further reducing 26% compared to the pcp
  * Mimosa production for the half year of 60,214 PGM ounces, up 2% compared to
    the pcp
  * PlatMile operation continues to build up production - much dependant on
    volume and grade of concentrator feed from Anglo Platinum
  * The average US Dollar PGM basket price of $825 was 29% lower compared with
    the pcp
  * The average Rand basket price decreased by 13% compared to the pcp due to a
    weaker Rand
  * The Rand weakened by 23% on average against the US Dollar compared to the
    pcp

Key Points: Strategic

  * Repayment of convertible bonds $125 million
  * Completion of part B of the Everest mine sale

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

Both Kroondal and Mimosa produced ahead of guidance and at reduced costs during
the half year. Combined production from Kroondal and Mimosa, of 352,107 4E
ounces for the half year is a company record. Both Kroondal and Mimosa's PGM
unit costs are lower today than 3 years ago in nominal terms (and substantially
lower in real terms), a really credible performance by the operating teams lead
by Rob Schroder and Winston Chitando. That said, the lower PGM prices
experienced during the half year significant impaired both Kroondal and
Mimosa's profitability. In order to ensure sustainability in this macro
environment (US$ PGM prices fell to the lowest level in more than a decade)
further cost saving initiatives were implemented at Kroondal, and specifically
Mimosa, which management expects to result in unit costs reducing further going
forward.

In relation to the proposed amalgamation between AQP and Sibanye, following the
approval by AQP shareholders of the amalgamation in general meeting on 18
January 2016, AQP continues to co-operate with Sibanye in fulfilling the
remaining conditions precedent to the Amalgamation Agreement and AQP
shareholders will be advised of any material progress in due course.

Financial results: Half-Year to 31 December 2015

Aquarius recorded a consolidated accounting net loss after tax (IFRS) of $76
million (the Result) attributable to its share holders for the half-year (5.12
cents per share). The result included one off non-cash charges of $55 million
after tax relating to the impairment of mining assets at Mimosa and Platmile.

EBITDA from controlled entities was $5 million, a $13 million (75%) decease
from the pcp. The Group's decreased EBITDA despite an increase in production
was driven by depressed PGM prices which were 29% lower compared to the pcp.
Production attributable to Aquarius increased 4% to 182,911 PGM ounces. All
three mines, Kroondal, Mimosa and PlatMile exceeded the pcp production levels
whilst maintaining good control over operating costs.

Profit & Production Summary

                        Aquarius      JV       Total   Consolidation  Aquarius 
                       operations  entities             adjustment     Group   
                                                                               
Mine EBITDA                $5M        $3M       $8M        ($3M)        $5M    
                                                                               
Revenue                   $78M       $50M      $128M      ($50M)        $78M   
                                                                               
Cost of sales            ($91M)     ($54M)    ($145M)      $54M        ($91M)  
                                                                               
Net loss after tax       ($24M)     ($53M)    ($77M)         -         ($77M)  
                                                                               
PGM ozs production       122,697    60,214    182,911        -        182,911  

* Includes $55 million impairment of Mimosa and PlatMile

Revenue (PGM sales, interest) for the half year of $78 million was down 31%
compared to the pcp.  The lower revenue reflects the difficult PGM metals price
with Dollar prices dropping to average $825 compared to $1,165 in the pcp, a
29% decrease.  In Rand terms, the PGM basket decreased 13% cushioned to some
extent by a weaker Rand which also decreased 23% to R13.43, compared to the
pcp. In Zimbabwe, PGM prices were substantially lower, recording a 26% decrease
to close at $856, compared to the pcp.

Total cash cost of production was $83 million, down $14 million despite a 4%
increase in production at Kroondal.  This was primarily due to good cost
control and the weakening Rand which resulted in lower Dollar costs. 
Significantly, Kroondal recorded its twelfth consecutive +105,000 PGM ounce
production quarter, a record for the mine. This is particularly pleasing given
the ongoing difficult operating conditions.

Cost per PGM ounce in Dollar terms in South Africa decreased 17% to $679 but
increased 2% in Rand terms due to a 23% weakening in the Rand/US Dollar
exchange rate.  In Zimbabwe the cash cost per PGM ounce was $784, a 2%
reduction demonstrating the beginning of the impact of the cost savings
implemented in H1 FY2016. Maintaining operating unit cost increases well within
inflationary targets will continue to be a point of focus particularly in the
ongoing low metal price environment.

Exchange rate movements continued to have a volatile effect on earnings. The
Rand weakened significantly to average R13.43 to the US Dollar compared to
R10.94 in the pcp. During the half-year, Aquarius recorded net foreign exchange
gains of $2.3 million comprising gains on sales adjustments and revaluation of
cash, intercompany loans and pipeline debtors.

Administration costs of $3.9 million were in line with forecast. These included
$1.5 million transaction costs incurred to date on the proposed Sibanye Gold
amalgamation with the Group. Depreciation and amortisation for the half year
was $9 million.

Finance costs include $3 million interest on convertible bonds and bank
borrowings, $2 million of non-cash interest arising from the unwinding of the
debt portion of the convertible bond and $2 million in non-cash interest
arising from the unwinding of the net present value of the rehabilitation
provisions of AQPSA.

Cash balances

Group cash at 31 December 2015 was $42 million, down $154 million from June
2015. The decrease in cash was mainly attributable to the $125 million
repurchase of convertible bonds that matured in December 2015 and unrealised
foreign exchange losses of $19 million following the restatement of Rand cash
balances following the weakening of the Rand against the US Dollar.  In
addition to this, the Group paid $7 million to fund its capital expenditure
program, paid $3 million in interest and received $4 million of dividends from
Mimosa.

Cash held at Mimosa and Blue Ridge which is no longer classified as group cash
due to the adoption of equity accounting was $4 million (100% basis).

Sale of assets

Part B of the Everest mine sale concluded in the half year resulting in the
receipt of cash of R50 million ($3.5 million). An accounting profit of $4.5
million was recorded after taking into account the $1 million carrying value of
Everest assets and liabilities.

Joint venture entities

Mimosa

Mimosa recorded an EBITDA profit attributable to Aquarius of $4 million and a
net loss before tax of $51 million. The result was achieved on production of
60,214 PGM ounces attributable to Aquarius. Despite consistent production, the
83% decrease from $27 million to $4 million in EBITDA compared to the pcp was
driven by lower PGM prices (down 26%), higher production (up 2%), and lower
unit costs (down 2%).

In the 2015 National Budget presentation, the deferment of the VAT on
un-beneficiated platinum to 1 January 2017 was proposed. However, the
subsequent Finance Bill and Finance Act of 2015 did not include the deferment. 
Post balance sheet date, the deferment to 1 January 2017 was legislated.

During the half year a dividend of $4 million was received from Mimosa.

Cash held in Mimosa at 31 December 2015 was $2 million (100% basis).

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.

Blue Ridge and Sheba's Ridge

Blue Ridge and Sheba's Ridge recorded a net loss after tax of $1.8 million.

Group Financials by Operation

                            Kroondal   Marikana Everest Mimosa    PMR   Corporate  Total 
                                                                                         
PGM ounces (4E)                115,839        -       -  60,214   6,858         - 182,911
(attributable)                                                                           
                                                                                         
           $M                                                                            
                                                                                         
Revenue                             71        -       -      50       4         3     128
                                                                                         
Cost of sales - mining,           (78)      (1)       -    (46)     (4)         -   (129)
processing & admin                                                                       
                                                                                         
Cost of sales -                    (8)        -       -     (8)     (1)         -    (17)
depreciation &                                                                           
amortisation                                                                             
                                                                                         
Gross profit/(loss)               (14)      (1)       -     (4)     (1)         3    (18)
                                                                                         
Administrative costs                 -        -       -       -       -       (4)     (4)
                                                                                         
Foreign exchange gain/              12        -       -       -       -      (10)       2
(loss)                                                                                   
                                                                                         
Finance costs                        -        -       -       -       -       (9)     (9)
                                                                                         
Impairment losses                    -        -       -    (42)    (13)         -    (55)
                                                                                         
Profit on sale of assets             -        -       4       -       -         -       4
                                                                                         
Share of loss from joint             -        -       -       -       -         -       -
venture entities                                                                         
                                                                                         
Profit/(loss) before               (2)      (1)       4    (46)    (14)      (21)    (79)
income tax                                                                               

   

                                                Reconciliation to      Consolidated    
                                                  Consolidated                         
                                                  Information *                        
                                                                                       
PGM ounces (4E) (attributable)                                                         
                                                                                       
                     $M                                                                
                                                                                       
Revenue                                                        (50)                  78
                                                                                       
Cost of sales - mining, processing & admin                       46                (83)
                                                                                       
Cost of sales - depreciation & amortisation                       8                 (9)
                                                                                       
Gross profit/(loss)                                               5                (13)
                                                                                       
Administrative costs                                              -                 (4)
                                                                                       
Foreign exchange gain/(loss)                                      -                   2
                                                                                       
Finance costs                                                     2                 (7)
                                                                                       
Impairment losses                                                42                (14)
                                                                                       
Profit on sale of assets                                          -                   4
                                                                                       
Share of loss from joint venture entities                      (53)                (53)
                                                                                       
Profit/(loss) before income tax                                 (5)                (84)

* In the consolidated financial statements the Mimosa and Blue Ridge operating
segments are accounted for using the equity method. The table above provides a
reconciliation of the segment information to the IFRS financial statements.

Aquarius Platinum Limited

Consolidated Income Statement

Half-Year ended 31 December 2015

$'000

                                                     Half-Year Ended           Year Ended
                                                                                         
                                         Note        31/12/15     31/12/14       30/06/15
                                                                                         
Attributable Production (PGM Ounces)           182,911             175,831 349,426       
                                                                                         
Revenue                                  (i)   78,328              113,263 212,908       
                                                                                         
Cost of sales (including D&A)            (ii)  (91,255)          (109,726) (210,816)     
                                                                                         
Gross (loss)/profit                            (12,927)              3,537 2,092         
                                                                                         
Other income                                   30                      110 173           
                                                                                         
Administrative costs                     (iii) (3,915)             (3,238) (6,230)       
                                                                                         
Foreign exchange gain/(loss)             (iv)  2,306                 (403) 1,572         
                                                                                         
Finance costs                             (v)  (7,342)             (7,814) (15,437)      
                                                                                         
Impairment losses                        (vi)  (13,706)              (574) (29,445)      
                                                                                         
Profit on sale of assets                       4,473                 1,126 20,511        
                                                                                         
Foreign currency translation reserve           -                         - (13,262)      
recycled on disposal                                                                     
                                                                                         
BEE partner guarantee                          (166)                     - (2,093)       
                                                                                         
Share of loss from joint venture         (vii) (52,993)           (49,187) (48,298)      
entities                                                                                 
                                                                                         
Loss before income tax                         (84,240)           (56,443) (90,417)      
                                                                                         
Income tax benefit/(expense)                   7,358                 (293) (7,660)       
                                                                                         
Net loss for the period                        (76,882)           (56,736) (98,077)      
                                                                                         
Non-controlling interests                      (813)                    95 (1,767)       
                                                                                         
Loss attributable to equity holders of         (76,069)           (56,831) (96,310)      
Aquarius Platinum Limited                                                                
                                                                                         
Loss per share (basic - cents)                         (5.12)       (3.93)         (6.59)

Notes on the Consolidated Income Statement

 i. Revenue of $78 million is lower despite higher production due to lower PGM
    prices, down 29% compared to the pcp and $10 million of negative sales
    adjustments.
ii. Aggregate cost of sales were 17% lower due to strong cost control across
    all mines and a 23% weakening of the Rand compared to the pcp.  In Rand
    terms, unit costs increased 2% per PGM ounce in South Africa.
iii. Relates to group administration costs inclusive of costs associated with
    business development activities, regulatory compliance, legal and financial
    advisory and $1.5 million costs associated with the Sibanye amalgamation.
iv. Foreign exchange includes gains/losses on cash, intercompany loans,
    pipeline debtors and sales adjustments due to the movement of the Dollar
    against other currencies.
 v. Finance costs include $3 million interest on convertible bonds and bank
    borrowings, $2 million of non-cash interest arising from the unwinding of
    the debt portion of the convertible bond and $2 million in non-cash
    interest arising from the unwinding of the net present value of the
    rehabilitation provisions of AQPSA.
vi. Includes impairment of PlatMile mining assets $13.2 million before tax.
vii. Share of loss from joint venture entities includes Mimosa impairment of
    $42 million.

Aquarius Platinum Limited

Consolidated Cash Flow Statement

Half-year ended 31 December 2015

$'000

                                                   Half-year ended          Year ended  
                                                                                        
                                     Note         31/12/15       31/12/14       30/06/15
                                                                                        
Net operating cash inflow/(outflow)   (i)   (909)          10,310         17,852        
                                                                                        
Net investing cash inflow/(outflow)  (ii)   (7,705)        14,754         38,534        
                                                                                        
Net financing cash inflow/(outflow)  (iii)  (125,374)      9,329          12,540        
                                                                                        
Net (decrease)/increase in cash             (133,988)      34,393         68,926        
held                                                                                    
                                                                                        
Opening cash balance                        195,773        136,820        136,820       
                                                                                        
Exchange rate movement on cash       (iv)   (19,616)       (7,002)        (9,973)       
                                                                                        
Closing cash balance                        42,169         164,211        195,773       

Notes on the Consolidated Cash Flow Statement

 i. Includes $98 million inflow from sales, $99 million paid to suppliers and
    $1 million interest received.
ii. Includes $7 million of payments for mining assets.
iii. Includes $3 million interest paid, $4 million dividend received from
    Mimosa and $125 million repayment of convertible bond.
iv. Reflects movement of other currencies (Rand 18.7 million, GBP 0.5 million,
    AUD 0.2 million) against the Dollar.

Aquarius Platinum Limited

Consolidated Balance Sheet

At 31 December 2015

$'000

                                                      Half-year ended        Year ended  
                                                                                         
                                          Note       31/12/15      31/12/14      30/06/15
                                                                                         
Assets                                                                                   
                                                                                         
Cash assets                                            42,169       164,211       195,773
                                                                                         
Current receivables                       (i)          18,160        27,551        29,231
                                                                                         
Other current assets                      (ii)          9,576        16,590         8,463
                                                                                         
Mining assets                            (iii)        142,248       198,870       163,439
                                                                                         
Intangible asset                          (iv)            523        49,230        17,727
                                                                                         
Investments in joint venture entities     (v)          95,051       152,437       150,609
                                                                                         
Other non-current assets                  (vi)         25,399        41,944        28,823
                                                                                         
Total assets                                          333,126       650,833       594,065
                                                                                         
Liabilities                                                                              
                                                                                         
Current liabilities                      (vii)         36,026       155,287       163,481
                                                                                         
Non-current interest-bearing liabilities (viii)           735         2,207         2,020
                                                                                         
Other non-current liabilities             (ix)         51,988        80,497        71,091
                                                                                         
Total liabilities                                      88,749       237,991       236,592
                                                                                         
Net assets                                            244,377       412,842       357,473
                                                                                         
Equity                                                                                   
                                                                                         
Issued capital                                         75,416        75,098        75,266
                                                                                         
Treasury shares                                      (23,711)      (25,871)      (26,056)
                                                                                         
Reserves                                              721,890       775,186       761,134
                                                                                         
Accumulated losses                                  (532,829)     (417,281)     (456,760)
                                                                                         
Total equity attributable to equity                   240,766       407,132       353,584
holders                                                                                  
of Aquarius Platinum Limited                                                             
                                                                                         
Non-controlling interests                 (x)           3,611         5,710         3,889
                                                                                         
Total equity                                          244,377       412,842       357,473

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, Marikana and
    PlatMile.
iv. Includes intangibles relating to contract value acquired on the acquisition
    of equity interest in Platinum Mile Resources (Pty) Ltd.
 v. Reflects investments in joint venture entities - Mimosa, Blue Ridge and
    Sheba's Ridge.
vi. Includes the recoverable portion of rehabilitation provision from Anglo
    Platinum of $7 million, receivable of $4 million representing the net
    realisable value of Ridge assets, investments in rehabilitation trusts of
    $11 million and AQPSA deferred tax asset of $2 million.
vii. Includes creditors and other payables of $31 million, AQPSA equipment
    leases of $2 million and provisions of $3 million.
viii. Represents AQPSA equipment leases.
ix. Includes deferred tax liabilities of $2 million, provision for closure
    costs of $48 million and rehabilitation obligations on P&SA1 and P&SA2
    structures of $2 million.
 x. 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 16 of this report,
and other updates relevant to all operations can be found under Corporate
Matters on page 15. 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 19% to 0.50 per 200,000 man hours
    from 0.62 the previous year
  * Production constant on 3.8 million tonnes
  * Volumes processed decreased slightly to 3.6m tonnes
  * Head grade improved by 4% to 2.48 g/t from 2.39g/t
  * Recoveries increased by 2% to 80%
  * PGM production increased by 4% to 231,678 PGM ounces
  * Revenue deteriorated by 17% to R1.9 billion compared to the previous
    financial year due weakening of 29% in the Dollar Basket Prices (R0.3
    billion negative sales adjustment) but was offset with the weakened
    exchange rate of 23%
  * Mining cash costs increased by 7% to R582 per tonne, and costs per PGM
    ounce increased by 2% to R9,117
  * Kroondal's cash margin for the period deteriorated from 13% to -10%

Commentary - Kroondal

Safety, Health and Environment

The Kroondal operations ended the half-year with an improved DIIR compared to
the pcp by 19% at 0.5.

Operations

Production for the half-year remained constant at 3.8 million tonnes.   During
the half-year, the Kroondal work force maintained a positive outlook with open
communication channels on all levels.

Operating Cash Costs

Cash costs at Kroondal increased by 2% to R9,117 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            9,117                 7,487                 7,278        

AQPSA Capital expenditure

Stay-in-business capital expenditure and mobile equipment replacement is
expected to be within financial guidance made previously.

                                 Kroondal (100%  
                                     basis)      
                                                 
 (R'000 unless otherwise        Total  Per 4E oz 
stated)                                          
                                                 
Ongoing Infrastructure         150,185        648
Establishment                                    
                                                 
Project Capital (K6 shaft)       8,079         35
                                                 
Mobile Equipment                24,851        107
                                                 
Total                          183,116        790

MIMOSA INVESTMENTS (Aquarius Platinum - 50%)

Mimosa Platinum Mine

  * 12-month rolling average DIIR deteriorated to 0.13 per 200,000 man hours
    from 0.05 in the previous corresponding half  year
  * Production decreased by 6% to 1.238 million tonnes
  * Volumes processed increased by 1% to 1.310 million tonnes
  * Head grade increased slightly to 3.65g/t
  * Recoveries improved by 1% to 78.6%
  * PGM production increased by 2% to 120,429 PGM ounces
  * Revenue decreased by 32% to $99 million due to lower metal prices
  * Mining cash costs increased 9% to $76 per tonne, and PGM ounce cost
    decreased by 2% to $784
  * Mimosa's cash margin for the period decreased to 6% from 35%

Commentary

Safety, Health and Environment

One fatality occurred at Mimosa during the half-year. Four lost-time injuries
were reported during the period and resulted in deterioration in DIIR.

Operations

The Mimosa mine operated well during the half year, enjoying cordial industrial
relations and meeting its production and cost targets.

Regulatory and fiscal environment

15% Export Levy on un-beneficiated PGMs/ Deductibility of Royalties

In the 2015 National Budget presentation, the deferment of the VAT on
un-beneficiated platinum to 1 January 2017 was proposed. However, the
subsequent Finance Bill and Finance Act of 2015 did not include the deferment. 
Post balance sheet date, the deferment to 1 January 2017 was legislated.

Royalties

The 2015 National Budget was silent on the non-deductibility of royalties for
income tax purposes. 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
remained unchanged in the 2015 National Budget. The financial impact of the
non-deductibility of royalties was $1.7m for the half-year to December 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

The Minister of Youth, Indigenisation and Economic Empowerment gazetted the
frameworks, templates and procedures for implementing the indigenization policy
on 8 January 2016.The proposed frameworks sought to provide clarity on the
indigenisation law and its implementation, and the Indigenisation Act remains
unchanged.

Mimosa continues to interact with the Ministry of Indigenisation and Ministry
of Mines to work towards a sustainable solution in relation to indigenisation.

Capital expenditure

Stay in business capital expenditure at Mimosa was $18 million ($150 per PGM
ounce), spent mainly on mobile equipment, support & drill rigs and LHDs, the
conveyor belt extension, down dip development and ventilation walls.

Operating Cash Costs

Operating costs decreased by 2% from the pcp mainly as a result of increased
production as well as the benefits emanating from cost reduction initiatives
currently being implemented by the company.

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               784                    744                    661          

TAILINGS OPERATIONS

Platinum Mile (Aquarius Platinum - 91.7%)

  * Material processed was 2,298m tonnes
  * Recoveries were 17%
  * Production amounted to 6,858 PGM ounces
  * Cash costs were R7,593 per PGM ounce.
  * Revenue was R60 million
  * The cash margin for the period was 13%

Commentary

Platinum Mile:

All operating and financial indicators improved compared to the half year
results of the previous financial year.

Anglo Platinum started the commissioning of their tailings re-treatment
facility in the quarter and feed from this section was understandably erratic.
This had a knock on effect on PMR's rougher flotation stability and recoveries.

At the end of the quarter PMR had implemented feed stability through level and
flow control utilizing UG2 feed to keep the flow to the rougher circuit
constant and maximized.

Operating cash costs per ounce (R/oz)

                      4E                   6E           4E net of by-products
                 (Pt+Pd+Rh+Au)     (Pt+Pd+Rh+Ir+Ru+Au)      (Ni, Cu& Co)     
                                                                             
PMR                  7,593                6,560                 6,094        

Chromite Tailings Retreatment Plant (CTRP) (Aquarius Platinum - 50%)
This operation remains on care and maintenance.

CORPORATE MATTERS

Board of Directors - Mr. David Dix

It is with profound regret and sadness that Aquarius Platinum Limited
("Aquarius Platinum") advises of the passing of Mr. David Dix, Director of
Aquarius.

Mr. Dix joined the Board in March 2004 and served in the capacity of
non-executive director, Chairman of the Audit Committee of the Group and was
also a member of the Remuneration Committee.  During his tenure Mr. Dix was an
integral part of the Board and an outstanding contributor to Aquarius Platinum
during his 12 years on the Board.

Aquarius Platinum Chairman Sir Nigel Rudd on behalf of the Board and Management
of the Group expressed his deepest condolences to wife Alexia and Mr. Dix's
family.

Everest mine sale finalisation

Aquarius Platinum Limited (Aquarius) announced on 10 February 2015 that its
subsidiary, Aquarius Platinum (South Africa ) (Pty) Ltd (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 (Northam), 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). Part A of the disposal process was completed on
26 June 2015 following the receipt of R400 million.

Subsequent to the end of the September quarter the parties obtained consent in
terms of section 11 of the Mineral and Petroleum Resources Development Act, No.
28 of 2002 to transfer the Everest Mining Right to Northam and upon
registration of the section 11 consent AQP received the Part B funds on 1
December 2015.

Sibanye Gold Amalgamation - update

Aquarius Platinum Limited shareholders approved the Amalgamation Agreement and
Amalgamation on 18 January 2016. The approvals were a condition precedent to
the transaction between the Company and Sibanye Gold Limited proceeding.  The
only outstanding regulatory approvals required for the transaction to proceed
are those of the South African Competition Commission and the Competition
Tribunal (refer section 1.9 of the Explanatory Memorandum of the Meeting
Materials for further detail).  Once these competition approvals have been
obtained, a timetable of events leading up to the date for payment of the
consideration will be announced to ASX, LSE and JSE and published on Aquarius'
website at www.aquariusplatinum.com.

More information on all corporate matters can be found at 
www.aquariusplatinum.com

See wwww.aquariusplatinum.com for statistical information table

Aquarius Platinum Limited
Incorporated in Bermuda

Exempt company number 26290

Board of Directors

Sir Nigel Rudd         Non-executive Chairman                                  
                                                                               
Jean Nel               Chief Executive Officer                                 
                                                                               
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

Edward Haslam (Chairman)

Tim Freshwater

Kofi Morna

Sir Nigel Rudd

Remuneration Committee

Edward Haslam (Chairman)

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                        Mimosa Mine Management                        
                                                                                      
Robert Schroder                         Winston Chitando                              
Managing Director                                                                     
Jean                                    Chairman                                      
Nel                                     Peter                                         
Executive Director                      Chimboza                                      
Anthony Jubert                          Resident Director                             
General Manager: Kroondal               Fungai Makoni                                 
                                                                             Managing 
                                        Director                                      

   

Platinum Mile Management               
                                       
Richard Atkinson                       
Managing Director                      
Paul Swart                             
Financial Director                     

Issued capital

At 31 December 2015, the Company had on issue 1,508,344,873 fully paid common
shares.

Substantial shareholders 31 December     Number of shares     Percentage   
2015                                                                       
                                                                           
HSBC Custody Nominees (Australia)           108,473,857          7.19      
Limited                                                                    
                                                                           
Chase Nominees Limited                      58,565,718           3.88      

   

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 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                                Willi Boehm                            
+27 (0)10 001 2843                      +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                                                                    



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