I think this one is oversold, and is must BUY @ at level!

Only if you are of caucasin origin methinks!

Revenues down 25% - bad news

Aquarius Platinum in the red as output falls


Aquarius Platinum plunged into the red in the six months to the end of December with net losses of $113.5m against a net profit of $94.3m last time.

The result includes a foreign exchange loss of $91m arising substantially from the revaluation of intercompany loans within the group.

Revenue fell by 25% to $252m and mine earnings before interest, tax, depreciation and amortisation decreased by 69% to $29m.

This was due to challenging operating conditions experienced at the Group's South African operations, increased mining costs and lower PGM metal prices.

Group attributable production fell by 14% to 215,453 PGM ounces (H1 2011: 250,972) but the average US dollar PGM Basket Price was stable compared to the previous corresponding period despite US dollar PGM prices weakening over the half year due to deteriorating macroeconomic conditions.

Time to sell. Very bad report from profit to losses.

Aquarius Platinum's Chief Executive has admitted he 'could not have been more wrong' about the worst being behind the company as it plunged into the red, hit by the ongoing difficult operating and trading conditions facing the company and the southern African platinum industry.

A profit before tax of $130m in the second half of 2010 turned to a loss of $135.7m in the same period in 2011, while revenue was $252.4m, down from $336.2m the previous year.

Chief Executive Officer (CEO) Stuart Murray maintained that the results should "come as no surprise to shareholders" even though he has previously stated that the firm was through the worst.

"I could not have been more wrong," said Murray, who presumably has not heard of Murphy's Law, which states that anything which can go wrong will go wrong.

"Until we reach a turning point, we remain committed to the constant re-evaluation and optimisation of all aspects of our business and operations in the current low margin environment with a focus on cash preservation," Murray added.

He continued: "From an operational perspective the period under review has been a most challenging one, but it must also be remembered that the reported net loss and resulting negative earnings per share (EPS) figure are rather exaggerated by a substantial non-cash foreign exchange loss generated by the revaluation of inter-company loans as a result of volatile exchange rate conditions."

EPS fell from 20.43p to -24.31p year-on-year, while cash at the end of the period was $230m (2010: 368.5m). The Rand weakened by 7% on average against the dollar.

Outlook uncertain for H2 Aquarius


The junior miner faced production challenges over the six months ending in December due to section 54 safety stoppages, rising production costs, lower platinum group metals (PGM) prices and delays from its contractors.

"The majority of the knock came from safety stoppages with most of these coming from Kroondal and Marikana," Aquarius Chief Executive Officer Stuart Murray said.

The group's production decreased by 14% to 215,453 PGM ounces for the six months ending in December.

EBIDTA dropped by 64.1% to US$29 million over the period.

Aquarius did not declare an interim dividend as a result of its cash conservation plans.

Kroondal, which accounted for 41% of Aquarius' PGM output, produced below its capacity over the interim period due to delays in production as the mine installed new hanging wall support.

Murray added that although operations at Mimosa in Zimbabwe, contributed 21% towards total PGMs produced over the period, and they showed significant growth, political and legislative changes posed a challenge.

Decreasing metal prices caused a negative $25 million sales adjustment to be incurred.

Aquarius had to also grapple with fluctuations in the basket prices for PGMs, whose prices dropped from R11,000 an ounce to R9,700 oz in December.

"For ourselves over the next six months and year, we are busy getting to the end of the implementation of the new wall hanging support standards, and we do believe that we are seeing less fall of ground incidents in mines as a result, since that remains a major issue in South African mining, we believe it is the right thing to do." Murray said.

Aquarius Platinum will go to 100p...



Aquarius Platinum Ltd. (AQP.LN) said Friday that Zimbabwe's indigenization minister rejected its plan this week to meet the country's law requiring foreign miners to sell 51% of assets to government designated entities.

Rhetoric around the law, legislated in 2008 but now being implemented, is on the rise as President Robert Mugabe's ZANU-PF party seeks to drive elections this year and stir up popular support.

Aquarius said it received a letter dated Feb. 22 from the Minister of Youth Development, Indigenization and Empowerment, Saviour Kasukuwere, to inform the company that its proposal was rejected and that it had 30 days to fully comply with the law otherwise "enforcement mechanisms will be activated."

Aquarius wasn't immediately available to comment further.

"Aquarius is concerned to note the statement by the Minister and advises shareholders that negotiations with the Minister will be undertaken in an attempt to reach a mutually acceptable solution," the platinum miner said.

Earlier this week, the minister told media in Zimbabwe that it wanted Impala Platinum Holdings Ltd. (IMP.JO), which is mining and developing platinum mines in the country, to dispose of its shareholding in Mimosa, which it jointly runs with Aquarius.

"In light that [ZANU-PF] want to hold elections this year, no doubt we will see rhetoric," Impala chief executive David Brown said last week, adding the election push will "cloud" the indigenization talks.

StockMarketWire.com
Aquarius Platinum is to hold talks with the Zimbabwe government over the indigenisation implementation plan for the company's subsidiary, Mimosa.

Aquarius says Mimosa has been advised by the Zimbabwean minister of youth development, indigenisation and empowerment that a portion of its IIP has been rejected.

Aquarius is concerned to note the statement by the minister that unless an agreement is reached with the National Indigenisation and Economic Empowerment Fund to transfer the required shareholding to NIEEF within 30 days, 'enforcement mechanisms will be activated'.

Aquarius says negotiations with the minister will be undertaken in an attempt to reach a mutually acceptable solution.

Glad to say I only have 215 shares in this, it dosen't look very rosie and will have to bite the bullet soon I reckon.,.

Mugabe will be showing off his powers for the upcoming election, so Aquarius will most likely be facing more problems in Zimbabwe considering rising production costs, lower platinum group metals (PGM) prices and delays from its contractors.

Very bad news today for AQP.

Aquarius Platinum Limited

Financial and Production Results to 31 March 2012

Highlights


Average PGM Dollar prices increased in the quarter - platinum and palladium
rose 5% and 8% respectively while rhodium fell 8%

The Rand strengthened against the US Dollar by 4% on average quarter-on-quarter

Attributable production for the third quarter decreased by 7%
quarter-on-quarter to 97,802 4E ounces

Seasonal absenteeism, continuing Section 54 safety stoppages, labour "go-slows"
and poor ground conditions negatively impacted South African production

Net loss of US$9.4 million recorded on reduced production

Cash balance at quarter end US$207 million

New commercial arrangement reached with principal mining contractor, closer to
a cost-target basis and better aligning interests of both parties.


Commenting on the results, Stuart Murray, CEO of Aquarius Platinum said:

"The first quarter of the calendar year is always a difficult one, due largely
to seasonal absenteeism following the Christmas and New Year holidays. This
year was worse than usual, with the customary poor labour performance and
concomitant reduced number of shifts exacerbated by continuing Section 54
interference in our Rustenburg operations. At Everest, poor ground conditions
have not been helped by constant labour "go-slows" and the failure by the DMR
to grant the mining right to the Hoogland open pit, despite our application
being lodged over a year ago. These unnecessary operational and regulatory
headwinds are occurring against a backdrop of a pricing environment that
remains relentlessly tough, with unabated on-mine cost inflation, little
fundamental demand recovery and continuing volatility in financial markets. The
result is that margins are under severe pressure throughout the industry, and
it is my view that labour unions and the government need to start co-operating
constructively with mining companies immediately if the very sustainability of
the platinum industry and the thousands of jobs it provides is not to be
threatened.

There were some encouraging aspects to the quarter. A new and promising
commercial arrangement has been reached with our primary mining contractor, and
both tailings operations are now profitable. There does seem to be a decline in
the number and length of Section 54 stoppages, although it remains too early to
call it a trend. In Zimbabwe, Mimosa has continued to operate well despite
power supply disruption, and the mine is engaged in constructive discussions
with the Government over the final terms and structure of its compliance with
the Indigenisation Act.

We remain pragmatic about our business and the industry at large. Each asset in
our portfolio is required to generate a return to shareholders and to the
extent that they do not, we will take action as appropriate to ensure
sustainability and a return to profitability."

22 May 2012

Mimosa Safety Incident

Implats and Aquarius Platinum confirm that a fire occurred at the jointly owned
Mimosa operation in Zimbabwe during the night. This was caused when the
conveyor belt in the main decline ignited. The fire has been contained.

All employees have been accounted for and no injuries have been reported. The
majority of the workforce was evacuated following the incident. Initially 75
employees were accommodated in refuge bays due to low visibility. They are now
in the process of being moved to surface. This is expected to be completed
during the course of the afternoon.

At this stage, the extent of the damage and impact on production cannot be
ascertained. Further information will be communicated in due course.

StockMarketWire.com
Aquarius Platinum's 50%-owned Mimosa has advised that all employees have been safely evacuated from the mine.

No injuries have been reported.

Details concerning the extent of damage and impact on production will be made available in due course.

AQP has been quite a disaster... no bottom in sight. Zimbabwe is a dodgy place to invest.

.

Only 65p from 400p last year.

Marikana Commentary

Aquarius Platinum Limited advises that the partners in the Marikana Pooling &
Sharing Agreement ("P&SA2") have agreed in principle to place the P&SA2
operations on care and maintenance, due to the enduring low PGM basket price
environment. This decision has been made in the interests of preserving the P&
SA2 ore reserves until an improved economic climate merits their extraction in
the future.

As a result, Marikana 4 Shaft and the Marikana concentrator plant will be
placed on care and maintenance, and the remaining management functions at P&SA2
will be consolidated with those of the P&SA1 at Kroondal. Preparations for
these events have been initiated, and the required consultative processes will
commence today.

Trading conditions in the platinum industry are expected to remain difficult in
the short to medium term and these conditions have rendered the operations at
the P&SA2 uneconomic.

Further updates will be released as appropriate.

AQP is showing poor management strategy... first marikana in care and maintenance, now Everest mine in care and maintenance too... 53p now.

Operational Update
Aquarius Platinum Limited is pleased to provide the following update on its business, ahead of an investor and equity analyst site visit to its Kroondal mine to be conducted today.

The Board of Aquarius is endeavouring to pro-actively manage the business of the Company to deal effectively and responsibly with the continuing difficult trading conditions facing the platinum industry in South Africa. The Board has also recently approved the Company's budget for the 2013 financial year. In keeping with the policies of the Company, the budget is focused on cash conservation and the preservation of the Company's reserves and resources until economic circumstances merit their extraction. As a result, several material alterations have been made to the operating configuration of the Company to better enable it to endure the current economic environment. Some of these changes have been disclosed previously, while some are set out here for the first time. They are summarised as follows, with further detail set out below:

* Aquarius Platinum (South Africa) (Pty) Ltd ("AQPSA") and Murray & Roberts
Cementation (M&RC) have mutually agreed to terminate their contract mining
agreement, and as a result AQPSA will become an Owner Operator, to ensure
maximum future cost control and flexibility;

* Kroondal, Mimosa and the tailings operations will be optimised to maximise
cash flow generation;

* Blue Ridge, Marikana and Everest have been placed on care and maintenance;
and

* All non-essential capital expenditure will be suspended.

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