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Aquarius Platinum Limited

Financial Statements

for the year ended 30 June 2015

Corporate directory

Exempt Company Number

EC 26290

Incorporated in Bermuda

Registered Office

Clarendon House 2 Church Street Hamilton Bermuda

Board of Directors

Sir Nigel Rudd Jean Nel David Dix

Edward Haslam Tim Freshwater Kofi Morna

Zwelakhe Mankazana Sonja De Bruyn Sebotsa

Company Secretary

Willi Boehm

Stock Exchange Listings

Aquarius Platinum Limited is listed on the Australian Securities Exchange (AQP.AX), the London Stock Exchange (AQP.L), the Johannesburg Stock Exchange South Africa (AQP.ZA) and has a sponsored Level 1 ADR program in the United States.

Share Registers

Australia Computershare Investor Services Pty Limited Level 11 172 St Georges Terrace Perth, Western Australia 6000 Telephone: +61 8 9323 2000 Facsimile: +61 8 9323 2033

United Kingdom Computershare Investor Services PLC The Pavilions Bridgwater Road Bristol BS99 6ZZ Telephone: +44 370 889 3193 Facsimile: +44 370 703 6101

South Africa Computershare Investor Services (Pty) Ltd Ground Floor 70 Marshall Street Johannesburg, South Africa 2001 Telephone: +27 11 370 5000 Facsimile: +27 11 688 5200 (General) Facsimile: +27 11 688 5238 (Proxies)

Internet Address

www.aquariusplatinum.com [email protected]

The directors of Aquarius Platinum Limited (Aquarius) provide hereunder their report as to the results and state of affairs of the Group for the financial year ended 30 June 2015. The consolidated financial information is presented in US Dollars.

Directors

The names of the directors of the parent entity in office during the financial year and until the date of this report are as follows:

Sir Nigel Rudd, DL

Non-executive Chairman

Sir Nigel is Chairman of Heathrow Airport Holdings Limited, BBA Aviation plc, Meggitt plc and Business Growth Fund plc. He is also a Non-Executive Director of Sappi Limited. Previously, Sir Nigel was Chairman of Pilkington plc from August 1994 to June 2006, Chairman of Alliance Boots plc from December 1999 to June 2007, Chairman of Pendragon plc from October 1989 to October 2010, Chairman of Invensys plc from July 2009 to January 2014, and Non-Executive Director and latterly Deputy Chairman of Barclays Bank plc and Barclays plc from 1996 until April 2009. He is a former Chancellor of Loughborough University. Sir Nigel was appointed to the Board of Directors and as Chairman Designate in November 2014 and became Chairman on 1 March 2015. He is a member of the Remuneration, Audit/Risk and Nomination Committees of the Group.

Nicholas T. Sibley

Non-executive Chairman

Mr Sibley is a Fellow of the Institute of Chartered Accountants in England and Wales, a director of Richland Resources Ltd, Wah Kwong Maritime Transport Holdings Ltd and a quoted investment company. He was formerly Deputy Chairman of Wheelock Capital from 1994 to 1997, as well as Executive Chairman of Barclays de Zoete Wedd (Asia Pacific) Limited from 1989 to 1993. Mr Sibley is a former director of Barclays de Zoete Wedd Holdings Ltd. He was appointed to the Aquarius Platinum Board in October 1999 and assumed the Chairmanship in July 2002. Mr Sibley was a member of the Audit/Risk and Remuneration Committees of the Group. He retired from the Board on 28 February 2015.

Jean Nel

Executive Director/Chief Executive Officer

Mr Nel obtained his Accounting degree in 1994 and honours degree in Accounting in 1995 from the University of Stellenbosch, completed articles with Deloitte & Touche and qualified as a CA(SA) in 1998. Mr Nel joined the corporate finance division of Investec Bank in 1999 and focused primarily on the resource sector of Southern Africa until 2003 during which time he obtained the CFA (AIMR) qualification. Mr Nel left Investec in 2003 to act as an independent corporate finance consultant to mining and resource companies operating in Southern Africa, where he acted for, amongst others, Aquarius Platinum Limited. In 2009 Mr Nel completed the Advanced Management Programme at Insead. Mr Nel joined the Board of AQPSA in January 2012. He was appointed to the Aquarius Platinum Board in April 2012 and became Chief Executive Officer of the Group in November 2012.

David R. Dix

Non-executive Director

Mr Dix's background is in economics, law and taxation and he is a Barrister and Solicitor in the High Court of Australia. He has held various positions with Shell Australia Limited and worked for 16 years in Corporate Advisory at both Macquarie Bank Limited and UBS AG specialising in the mining industry, including Head of Resources for Asia Pacific and in London as Head of Mining. Mr Dix is Non-Executive Chairman of Troy Resources NL. He brings to Aquarius a wealth of experience gained in the international business and resources communities. Mr Dix was appointed to the Aquarius Platinum Board in March 2004. He is Chairman of the Audit/Risk Committee and a member of the Remuneration Committee.

G. Edward Haslam

Non-executive Director

Mr Haslam joined Lonmin plc in 1981 and was appointed a director of Lonmin plc in 1999 and Chief Executive Officer in November 2000. He retired from Lonmin plc in April 2004. In March 2011, Mr Haslam was appointed Senior Independent Director of London and Toronto listed gold miner Centamin Egypt Limited. Mr Haslam was appointed to the Aquarius Platinum Board in May 2004, and is Chairman of the Remuneration Committee and a member of the Audit/Risk and Nomination Committees of the Group.

Directors (continued)

Tim Freshwater

Non-executive Director

Mr Freshwater is a solicitor in the UK and Hong Kong and has been involved in Asian markets for over 40 years. He is the director of a number of companies, including Swire Pacific Limited, Savills PLC and Hong Kong Exchanges and Clearing Limited. Mr Freshwater was appointed to the Aquarius Platinum Board in August 2006. He is a Senior Independent Director of the Company and a member of the Audit/Risk and Nomination Committees of the Group.

Kofi Morna

Non-executive Director

Mr Morna is an Executive Director of Savannah Resources (Pty) Ltd, the lead investor in the Savannah Consortium, Aquarius Platinum's BEE partner. Prior to joining Savannah Resources, Mr Morna worked with the International Finance Corporation as an Investment Officer, Gemini Consulting as a Senior Management Consultant and Schlumberger Oilfield Services as a Field Engineer. Mr Morna holds an MBA from the London Business School and a BS from Princeton University in the United States. He is currently a director of Mkhombi Holdings, Hall Core Drilling and a number of private mining exploration and beneficiation companies. Mr Morna joined the Board of AQPSA in February 2005 and was appointed to the Aquarius Platinum Board in February 2007. Mr Morna is a member of the Audit/Risk and Nomination Committees of the Group.

Zwelakhe Mankazana

Non-executive Director

Mr Mankazana is an Executive Director of Savannah Resources (Pty) Ltd, one of Aquarius Platinum's BEE partners. Mr Mankazana holds an MSc in Economics from the Patrice Lumumba University of Friendship. In addition to his interests in mining, Mr Mankazana is a founder of South African mobile operator Cell C and serves on the boards of its holding companies. He also represents BEE shareholders on the board of the holding company for Siemens and Nokia Siemens Networks in South Africa. He participates in community work through his involvement with several development and education trusts. Mr Mankazana joined the Board of AQPSA in February 2005. He was appointed to the Aquarius Platinum Board in November 2008 and is a member of the Remuneration Committee of the Group.

Sonja De Bruyn Sebotsa

Non-executive Director

Ms De Bruyn Sebotsa is a founder and principal partner of Identity Partners, an investment, financing and advisory firm. She is the director of a number of companies including RMB Holdings Ltd, Discovery Holdings Limited and Remgro Ltd, and served on the board of Anglo American Platinum Limited from 2008 to 2013. Ms De Bruyn Sebotsa was Vice-President, Investment Banking, at Deutsche Bank where she worked in their Johannesburg, London and Tokyo offices on mergers and acquisitions, privatisations, IPO's, black economic empowerment transactions and financings. From 2002 to 2007 she was Executive Director at WDB Investment Holdings which built a portfolio of investments (an endowment) to benefit a women's empowerment trust, Women's Development Bank, through major acquisitions in large companies. Ms De Bruyn Sebotsa was appointed to the Aquarius Platinum Board in February 2013 and has also been appointed Chairman of the Board of AQPSA. Ms De Bruyn Sebotsa is Chairman of the Nomination Committee of the Group.

Company secretary

Willi M.P. Boehm

Mr Boehm joined Aquarius in June 1995. He is a member of CPA Australia. Mr Boehm has been involved in the management and listing of several companies in Australia, the UK and South Africa. He is responsible for the Company's Corporate Affairs and Group Finance. Mr Boehm sits on the Boards of Mimosa Investments Limited, the Group's 50% owned Zimbabwean joint venture entity and Aquarius Platinum Corporate Services Pty Ltd in Australia. He is a member of the Nomination Committee of the Group.

Interests in the shares of the company

As at the date of this report, the interests of the directors in the shares of Aquarius Platinum were:

Director	Common Shares
N. Rudd	2,432,768
J. Nel	6,803,539
D.R. Dix	452,152
G.E. Haslam	197,512
T. Freshwater	1,119,556
K. Morna *	13,679,900
Z. Mankazana *	13,679,900
S. De Bruyn Sebotsa	152,512

• The interests held by Mr Morna and Mr Mankazana include a deemed beneficial interest in 13,527,388 common shares held by Savannah Resources Limited.

  
  

  Principal activities

  The principal activities of companies within the Group during the financial year were mine development, concentrate production and investment. During the year, the principal focus revolved around the operations of the Kroondal mine, the Mimosa mine and the Platinum Mile retreatment facility. Part A of the Everest sale agreement was finalised during the year. The Group's other mines - Marikana, Blue Ridge and the Chrome Tailings Retreatment Plant, remain on care and maintenance.

  
  

  Results of operations

  The Group's net loss for the year after income tax was $98 million (2014: net loss of $13 million).

  
  

  Review of operations

  Strategic:

  • Disposal of non-core assets program (Kruidfontein prospecting rights and Everest mine) delivered $60 million in cash

  • A recognition agreement has been concluded with AMCU at Kroondal, which now represents approximately 65% of Kroondal's semi-skilled work force

    
    

    Financial:

  • Revenue down by 9% to $213 million (2014: $233 million) due to lower PGM metal prices

  • On-mine EBITDA1 decreased by 10% to $26 million (2014: $29 million) due to lower PGM metal prices

  • Headline loss2 (before exceptional charges) of $51 million at 3.47 cents per share (2014: loss of $11 million at 1.13 cents per share)

  • Dividend of $20 million received from Mimosa joint venture

    
    

    Operational:

  • Group attributable production increased by 5% to 349,426 PGM ounces (2014: 331,643 PGM ounces)

  • Average US Dollar PGM basket price of $1,097 was 7% lower compared to the prior year

  • Average Rand basket price increased by 3% compared to the prior year due to a weaker Rand

  • The Rand weakened by 10% on average against the US Dollar compared to the prior year

  • On-mine unit cash costs at Kroondal increased by 1% in Rand terms compared to the prior year

  • Mimosa continued to produce at capacity but was impacted by a low PGM Dollar price

  • On-mine unit cash costs at Mimosa decreased by 9% compared to the prior year

    Results of operations (continued)

    Review of operations (continued)

    Group attributable production for the year increased by 5% to 349,426 PGM ounces. Significantly, Kroondal recorded its tenth consecutive +105,000 PGM ounce production quarter, a record for the mine.

    
    

    On a per PGM ounce basis, Dollar unit costs in South Africa decreased 9% to $803 but increased 1% in Rand terms. In Zimbabwe the cash cost per PGM ounce was $802, a 9% reduction demonstrating the impact of the cost saving initiatives implemented in the 2014 financial year. 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.

    
    

    Mimosa 15% export levy on un-beneficiated PGMs

    In the 2015 National Budget Statement, the deferment of the 15% export levy on un-beneficiated platinum to January 2017 was proposed. However, the Finance Act (No 3) of 2014 which gives legal effect to the budget proposals did not include the deferment of the 15% tax on un-beneficiated PGMs. This effectively meant that the tax was not deferred and hence the 15% export levy on un-beneficiated PGMs became law effective 1 January 2015. The Company continues to engage the authorities in consultation with the Chamber of Mines to have the levy deferred. In the absence of the formal deferment in law, and having considered the above the directors believe it is prudent to provide for the impact of this levy. Accordingly an attributable amount of $4.5 million has been accrued for the financial year ended June 2015. Aquarius and Mimosa are confident that the matter will be resolved and remains committed to building good working relations with the Government of Zimbabwe. Furthermore Mimosa, together with the other Platinum producers in Zimbabwe, are currently in the process of assessing the viability of a number of in-country smelting and beneficiation alternatives. The outcome of these assessments will be communicated to all relevant stakeholders in due course.

    
    

    Mimosa royalties

    The proposal to render royalties payable by Mimosa non-deductible for income tax purposes was implemented with effect from the year of assessment beginning on 1 January 2014, and therefore impacted Mimosa from the start of the 2014 financial year on 1 July 2013. This position has remained in the 2015 national budget. The financial impact of the non-deductibility of royalties was $4.2 million for the financial year to June 2014 and $4.7 million for the financial year ended June 2015, 50% of which is attributable to Aquarius. Negotiations are continuing with the authorities to confirm that the royalties are deductible for income tax purposes.

    
    

    Mimosa indigenisation

    Mimosa continues to interact with the Ministry of Indigenisation and Ministry of Mines to work towards a sustainable solution in relation to indigenisation, but in the period under review no agreements or definitive terms were agreed between Mimosa and the Ministry of Indigenisation. As a result, the matter is ongoing and management is unable to estimate the financial impact of any proposed transaction.

    
    

    Sale of Kruidfontein prospecting rights

    On 29 January 2014, Aquarius agreed terms to dispose of 100% of C&L Mining and Resources (Pty) Limited (C&L), which holds the Kruidfontein prospecting right, to Pilanesberg Platinum Mines (Pty) Ltd, a subsidiary of Sedibelo Platinum Mines Limited (previously Platmin Limited) for a total sale consideration of $30 million. The material asset of C&L is a prospecting right known as Kruidfontein in which C&L has a 90% economic benefit. The sale was completed in December 2014 with cash of $27 million being received. Aquarius retained the gross proceeds of the sale and satisfied settlement of the original vendors rights to 40% of the proceeds via the issue of 36,505,657 shares in Aquarius. An accounting profit of $19 million was recorded.

    
    

    The Kruidfontein asset, being held by a South African subsidiary with a Rand functional currency, has been translated to US Dollars each month end since the original date of purchase, with any exchange differences going to the foreign currency translation reserve (FCTR). The Rand has devalued against the USD since acquisition. In accordance with International Accounting Standards, when a foreign operation is disposed of the cumulative amount of foreign exchange differences contained within the foreign currency translation reserve is required to be reclassified through the income statement. Accordingly, a non-cash adjustment of $13 million has been made, representing reclassification of the cumulative amount of foreign exchange differences relating to Kruidfontein up to the date of disposal.

    Results of operations (continued)

    Sale of Everest

    On 10 February 2015 Aquarius entered into an agreement to sell its Everest mine and related assets to Northam Platinum Limited for R450 million to be completed in two parts, being R400 million for the concentrator and other mining assets of Everest Mine (Part A), plus R50 million for the Everest Mining Right (Part B). Part A proceeds were received in June 2015. Part B of the disposal process is subject to the consent of the Minister of Mineral Resources in terms of section 11 of the Mineral and Petroleum Resources Development Act. The section 11 application has been submitted to the Department of Mineral Resources.

    
    

    Operating results

    Aquarius recorded a net loss of $98 million for the financial year. The result included $70 million of one off items listed below:

  • profit on sale of non-core assets (Kruidfontein & Everest) of $20 million

  • recycling of foreign exchange losses from the foreign currency translation reserve through the income statement of $13 million arising on the disposal of 100% owned subsidiary C&L Mining and Resources (Pty) Limited which held the Kruidfontein prospecting right

  • impairment in the carrying value of the Platinum Mile assets of $28 million

  • impairment of the carrying value of Blue Ridge/Sheba's Ridge investment of $20 million following termination of the agreement to sell the Company's indirect interests in Blue Ridge Platinum (Pty) Ltd and Sheba's Ridge Platinum (Pty) Ltd

  • discounting of the RBZ receivable due to Mimosa by $29 million

On-mine EBITDA1 from controlled entities was $26 million, a $3 million decrease from the prior year. The decreased EBITDA was despite a 5% increase in production from controlled entities and excellent cost control due to PGM prices being 7% lower. Kroondal recorded a 1% increase in unit costs in Rand terms compared to the prior year despite significantly higher mining cost inflation.

Revenue (PGM sales, interest) for the year of $213 million was $20 million lower compared to the prior year. The lower revenue reflects the difficult PGM market which saw the average basket Dollar price reduce to an average

$1,097 per PGM ounce in the 2015 financial year, a 7% decrease. In Rand terms, the PGM basket increased by 3% directly as a result of a weaker Rand which decreased 10% to average R11.42 in the current year. In Zimbabwe, the Mimosa PGM basket price was similarly subdued recording a 5% decrease to $1,075 in the current year compared to the prior year.

Total cost of sales was $211 million, down $20 million despite a 3% increase in production at Kroondal. This was primarily due to good cost control and the weakening Rand.

Exchange rate movements continued to have a volatile effect on earnings. The Rand weakened significantly to average R11.45 to the US Dollar compared to R10.39 in the prior year. During the year, Aquarius recorded a net foreign exchange gain of $2 million comprising gains on sales adjustments and revaluation of cash, intercompany loans and pipeline debtors.

The Group's cash balance at 30 June 2015 was $196 million (2014: $137 million) with a further $5 million (2014: $8 million) attributable to Aquarius held in joint venture entities. The directors are of the view that the Group's present cash reserves are sufficient to manage its operating mines for the next twelve months based on present market dynamics.

Dividends

No dividend has been declared for the year ended 30 June 2015.

Significant changes in the group's state of affairs

The directors are not aware of any significant changes in the state of affairs of the Group that occurred during the financial year, which have not been covered elsewhere in this Annual Report.

Events subsequent to the end of the financial year

There were no material events subsequent to 30 June 2015 that have not been reflected in the financial statements.

Likely developments and expected results

Other than matters referred to in this report, the directors make no comments regarding the likely developments in the operations of the Group and the expected results of those operations in subsequent financial years. In the opinion of the directors, any further disclosures might prejudice the interests of the Group.

Environmental regulation and performance

Companies within the Aquarius Platinum Group are required, on cessation of mining operations, to rehabilitate the relevant mining area on which mining operations have been conducted. Mr Rob Schroder, Managing Director of AQPSA, is the officer responsible for compliance on these matters for all South African properties within the Group. Mr Winston Chitando, Managing Director of the Mimosa Group of Companies in Zimbabwe, is the officer responsible for all Zimbabwean located properties within the Group. In South Africa, the Company makes annual contributions to established trusts in order to provide for its obligations in respect of environmental rehabilitation. Environmental activities are continuously monitored to ensure that established criteria from each operation's environmental management programme, approved by relevant authorities, have been met. There have been no known significant breaches of any environmental conditions.

Meetings of directors

The number of meetings of the Board of Directors of the parent entity held during the year ended 30 June 2015 and the number of meetings attended by each director are tabled below:

Director	Number of meetings held whilst in office				Number of meetings attended
Board	Audit/Risk	Remuneration	Nomination	Board	Audit/Risk	Remuneration	Nomination
N. Rudd	2	2	1	1	2	2	1	1
N. T. Sibley	3	3	2	-	3	3	2	-
J. Nel	4	-	-	-	4	-	-	-
D. R. Dix	4	4	3	-	4	4	3	-
G. E. Haslam	4	4	3	4	4	4	3	4
T. Freshwater	4	4	-	4	4	4	-	4
K. Morna	4	4	-	4	3	3	-	4
Z. Mankazana	4	-	3	-	4	-	3	-
S. De Bruyn Sebotsa	4	-	-	4	4	-	-	4

Directors' and officers' insurance

During the year, the parent entity paid an insurance premium in respect of a contract insuring against the liability of current directors and officers. The directors have not included details of the nature of the liabilities covered or the amount of the premium paid in respect of the directors' and officers' liability insurance contract, as such disclosure is prohibited under the terms of the contract.

Going concern

The directors are satisfied that the Company has adequate financial resources to continue in operational existence for the foreseeable future. The financial statements have been prepared on the going concern basis.

Signed in accordance with a resolution of the directors.

Jean Nel Director

30 September 2015

1 On-mine EBITDA has been provided to enable normal mining industry comparison and assists users in understanding on-mine cash flows. The on-mine EBITDA has not been audited and reconciles to the Gross profit in the statement of profit or loss & other comprehensive income as follows:

2015 $'000	2014 $'000
Gross profit	2,092	1,898
Interest income	(7,391)	(5,676)
Depreciation and amortisation	22,558	29,000
Foreign exchange gain	9,124	3,851
On-mine EBITDA	26,383	29,073

2 Refer to Note 9(d)

The directors of Aquarius Platinum Limited present the Remuneration Report for the Group for the financial year ended 30 June 2015.

Statement from the Chairman of the Remuneration Committee

The Remuneration Report has been divided into two sections - the Policy Report which sets out the directors' remuneration policy for all directors and executive management, and the Annual Remuneration Report which sets out details of how the directors and executive management were paid during the 2015 financial year and how the policy will be applied in 2016. Both reports will be tabled for discussion at the 2015 Annual General Meeting (AGM).

Mr Nel is the only executive director. He has an arrangement approved by shareholders in 2013 whereby his base salary is paid approximately 30% in cash and 70% in shares using a share price of 35 cents which is currently 43% above the average price of shares issued to Mr Nel during the 2015 financial year. His current bonus is also paid completely in shares using a share price of 35 cents. As a result, the value of his base salary paid in shares has actually reduced by 43% based on the average price of shares issued to him during the 2015 financial year. The value of his bonus for the 2015 financial year has likewise reduced in value. This share in lieu arrangement is due to end in June 2016. When introducing the arrangement for Mr Nel the dramatic fall in the price of platinum and the resulting fall in the Company share price was not anticipated. Mr Nel has advised the Remuneration Committee (the Committee) that he does not wish the current arrangement to be reviewed.

The Committee nevertheless has introduced a change to the remuneration structure for Mr Nel for the 2016 financial year in order to secure his continued commitment to driving the business objectives over the next few years. The maximum amount of annual bonus has been increased from 100% to 150% with an additional 50% deferred element being delivered in shares and subject to a deferral of 50% for 12 months and the remaining 50% for 24 months from the financial year end. This extra element will act as a retention tool. The current value of the remuneration package using the 35 cents share price and the lock in bonus is still less than the value of the original remuneration package without the share arrangement.

In addition to the bonus deferral, following the year end Mr Nel received an award of shares that will be released in thirds in August 2016, 2017 and 2018 subject to performance. Mr Nel has not received a long-term incentive award since 2012 and the final element of the 2012 award vested in 2015, leaving Mr Nel without any long-term incentive awards outstanding. The vesting of the share award just made is subject to a combination of business, strategic and individual performance targets and will vest in thirds over the next 3 years. This award is intended as a further lock in and to act as a transitional arrangement, as next year it is proposed to make awards under the Aquarius Restricted Share Scheme which has a standard 3 year vesting period.

The deferred bonus and the share award will ensure that there is both a potential reward each year until the awards under the Aquarius Restricted Share Scheme mature and act as a retention tool as awards would be forfeited should Mr Nel leave. More details of these changes are provided below.

Remuneration Committee

The Committee has been established by the Board of Directors (the Board) to assist the Board by reviewing and providing recommendations on remuneration arrangements for the directors and executive management. The Board assesses the appropriateness of the nature and amount of emoluments of such officers on an annual basis by reference to industry and market conditions. In determining the nature and amount of officers' emoluments, the Board takes into consideration the Company's financial and operational performance.

During the financial year the Committee initially comprised four non-executive directors all of whom are independent. On 1 March 2015 Sir Nigel Rudd, who was appointed as non-executive chairman of the Company, was also appointed a member of the Committee. None of the members of the Committee participated in any bonus scheme, long-term incentive, pension or other form of remuneration other than the fees disclosed below. There is no actual or potential conflict of interest arising from the other directorships held by members of the Committee.

Statement from the Chairman of the Remuneration Committee (continued)

Terms of reference

Name	Position	Attendance in 2015	Attendance in 2014
G. E. Haslam	Chair of Committee	3 of 3	2 of 2
N. T. Sibley	Member	2 of 2 (up to the time of retirement on 28 February 2015)	2 of 2
D. R. Dix	Member	3 of 3	2 of 2
Z. Mankazana	Member	3 of 3	2 of 2
N. Rudd	Member and Chairman of the Company	1 of 1 (following appointment on 9 February 2015)	N/A

The responsibilities of the Committee include:

• framework of remuneration for the Company and in particular the executive team;

• remuneration of executive directors;

• making recommendations to the Board on the fees offered to the non-executive directors;

• the adoption and implementation of equity-based incentive plans and other employee benefit programs; and

• the Company's recruitment, retention, termination and superannuation policies.

  
  

  Activities of the Committee

  The Committee meets as required but at least twice a year. During the financial year the Committee met formally in August 2014, October 2014 and February 2015. At these meetings the Committee considered, amongst other things:

  
  

  Date of meeting	Principle activities of the meeting
  4 August 2014	Approving the conversion factor with respect to adjusting the share price used in share entitlements that have been applied for but remained unissued pursuant to the Aquarius Director/Employee Share Plan (2013) following conclusion of the Aquarius rights issue in May 2014. The approval and issue of retention scheme shares which fell due on 1 July 2014 following fulfilment of the performance criteria.
  31 October 2014	Discussion on long-term incentives for the Company and their application.
  9 February 2015	Drafting of a replacement long-term incentive program, subject to shareholder approval, to provide a platform for ongoing long-term incentive rewards, eligibility and appropriate performance conditions reflective of the commodity market that the Company operates within.

  
  

  Advice to the Committee

  The Committee is supported by the Company Secretary who also acts as secretary to the Committee. Mr Nel may attend meetings at the invitation of the Committee but he is not present when his remuneration is under consideration.

  
  

  During the year the Committee appointed Meis to provide remuneration advice. The fees paid for this advice are based on a 12 month retainer of £8,000 p.a. Meis provides no other services to the Company.

  Remuneration policy

  In developing its remuneration policy, the Committee has had regard to the fact that the business of the Company is operated in multi jurisdictions from both an operating and regulatory environment and in a market which requires very particular operational and managerial skills. As has been seen recently the business is also subject to the volatility of commodity prices.

  
  

  The principles underlying the structure and quantum of director and senior management remuneration are as follows:

  • to provide remuneration packages that are competitive but not excessive, taking into account all elements of remuneration;

  • use external benchmark data on a transparent and open basis using comparator groups that reflect the industry and size of the Company;

  • divide variable components of senior management remuneration between short-term incentive payments and long-term incentive payments in a manner which allows immediate reward of positive achievements in the delivery of short-term deliverable goals, but reinforces the importance of running the business for the long-term, creating value for both shareholders and all other stakeholders in the Company;

  • provide long-term incentives that align remuneration to the long-term performance of the Company; and

  • encourage executives, and in particular executive directors, to build and maintain a meaningful shareholding in the Company.

    
    

    Consideration of employment conditions generally in the Company

    While there is no mechanism for formal consultation with employees, the Committee nevertheless takes into account the remuneration and employment conditions elsewhere in the Company when determining remuneration for executive directors. The Committee is also provided with updates on employee remuneration practices and trends across the Group, which while not used in a formulaic manner, nevertheless informs the Committees' discussions on executive remuneration.

    
    

    When reviewing or amending executive remuneration arrangements the Committee will consider the remuneration and pay practices across the Company. In particular the Committee will consider the salary increases applying across the rest of the business in the relevant market.

    
    

    Table of remuneration policy

    
    

    Remuneration element	Purpose and link to strategy	Driving factors	Operation
    Base pay	Basic element of the remuneration package ensuring the ability to recruit and retain staff of the appropriate level	Role requirements and technical skill sets Geographic and industry Value potential in role	Pay is reviewed following the release of the full year results to the market. Pay increases will take account of the benchmark data and performance of the individual, and any increases in percentage terms will not generally exceed that of the general workforce. Reviews take effect from 1 January. The next pay review will be in January 2016. Pay is positioned at about the median of comparator companies of similar size, complexity and operations. Pay reviews may occur at times other than 1 January and pay increases may exceed general pay increases in the case of a change of responsibilities, change in complexity of the role, change in the size or complexity of the organisation or pay levels being substantially out of line with the market data. For the current CEO, for a period of three years from July 2013, a proportion of pay (approximately 70%) will be paid in shares using a fixed share price of 35 cents. The remainder of base pay will be paid in cash. The shares issued in lieu of cash are issued quarterly in arrears. The policy for the current CEO is specific to the individual and is not a policy for directors generally. This arrangement may not be renewed when it expires in June 2016.

    Remuneration policy (continued)

    Table of remuneration policy (continued)

    
    

    Remuneration element	Purpose and link to strategy	Driving factors	Operation
    Benefits	To provide market competitive benefits consistent with the recruitment and retention of staff of the appropriate level	To retain a market competitive remuneration package	Normal benefits such as car or car allowance, life insurance, private medical, subscriptions, phones, accommodation, security or similar assistance may be provided however the total cost of such benefits may not exceed an amount equivalent to 5% of base pay.
    Pensions	To provide market competitive benefits consistent with the recruitment and retention of staff of the appropriate level	To retain a market competitive remuneration package	A payment in lieu of up to 15% may be provided which can be used for the provision of pension. Where payment is required to be made under any statutory provisions then such provision will be included in the above amount unless the statutory provision exceeds such amount.
    Annual bonus	To reward the delivery of short- term performance against agreed measures critical to the organisation's success	Market practice - geographic and industry standards Degree of value creation potential through outperformance	Performance criteria are set at the beginning of each year. The bonus scheme is based on a combination of Company and individual targets. The Company targets are aimed at encouraging and rewarding achievement of both operational and financial targets at organisational level with performance indicators such as ounces produced, cost per ounce and safety being key. The Committee will decide at the beginning of each year the balance and selection of these measures that meet the requirements for the coming year. The measure and the balance between the measures shall normally be:- Subject to the achievement of the performance conditions, the grant of a bonus is still subject to the discretion of the Committee. The maximum bonus opportunity is 150% of base pay and on target is 75% of base pay, and the bonus for threshold performance is 15%. Any bonus paid in excess of 100% of base pay will be deferred, 50% for 12 months and the remaining 50% for 24 months from the financial year end. Clawback may be applied to any bonus if matters come to light (in respect of the current or previous years) which would, in the Committee's view, be such that it would be inappropriate to pay a bonus.

    • 40% operational objectives of improved safety, production (quality tonnes) and cost reduction and similar measures;

    • 40% corporate objectives of ensuring continuous regulatory compliance and governance within the regions of operation; and

    • 20% strategic objectives (longer term) in establishing a credible pipeline of growth projects for the Company's future.

    Remuneration policy (continued)

    Table of remuneration policy (continued)

    
    

    Remuneration element	Purpose and link to strategy	Driving factors	Operation
    Long-term incentives	To link executives interests to the longer term share performance of the Company and hence drive long- term shareholder value	To reward by reference to the return delivered to shareholders of the longer term	The Company has the following long-term share schemes: Clawback may be applied to long-term incentives if matters come to light (in respect of the current or previous years) which would, in the Committee's view, be such that it would be inappropriate to vest awards.
    Share ownership	To encourage ownership of shares and build a union of interest with shareholders	To encourage meaningful share ownership in the Company	Executive directors are required to build a shareholding equal to 100% of their base salary within 5 years of becoming an executive director.

    • The Employee Retention Share Scheme (ERSS) which is designed to retain and incentivise senior executives and managers deemed key to the rollout of the Group's business plan.

    • The Aquarius Director/Employee Share Plan approved in 2013 under which awards in shares may be made in lieu of salary or bonus or may be made otherwise to retain management. While the plan has no limit as such, in practice the maximum annual award that would be made under the Plan, to an executive director, would be limited to the payment of base pay and bonus in shares in lieu of cash, the provision of the deferred element of the annual bonus and a share award of up to 50% of base.

    • The Aquarius Restricted Share Scheme (RSS). The RSS was approved at last year's AGM (2014) but no awards have been made under the scheme so far. The scheme allows awards to be made in the 42 days following the announcement of interim or final results. Awards can be made up to a maximum value of 200% but consistent with current market practice, awards would normally only be made up to 100% of base. Awards only vest subject to the achievement of predetermined performance conditions and normally three years following grant. It is proposed to make awards next year under this plan and then make annual awards thereafter. The performance conditions for those awards, which will be considered over a three year period, will reflect discussion with shareholders and proxy advisory services and will be fully disclosed in next year's report.

    
    

    Aquarius Restricted Share Scheme (2014)

    This scheme was approved at the AGM last year. The scheme has not been used so far but the intention is that it will be used next year and that it will then become the primary vehicle for long-term incentive awards to executive directors and eligible employees.

    Remuneration policy (continued)

    Aquarius Director/Employee Share Plan (2013)

    The Aquarius Director/Employee Share Plan (2013) was established to ensure the Company has appropriate incentives to continue to attract and in particular retain the services of directors and employees of a high calibre and allow the Company to offer shares to directors and employees in lieu of part of their salary or directors' fees, as a mechanism to conserve cash resources during the present difficult operating environment.

    
    

    During the year 4,523,063 shares were issued to directors and employees in lieu of cash salary and bonuses.

    
    

    The long-term incentive award granted to Mr Nel in November 2012 matured in June 2015 and hence there are no long-term incentive arrangements in place for him. As a result it was decided to make an interim award to him under the plan following the financial year end. The details of the award are as follows:-

    • grant of 3 million shares (which is approximately equal to 50% of base pay) which will vest one third (up to 1 million shares) each year in August 2016, 2017 and 2018 subject to three performance criteria being achieved:

      • performance against the annual business plan;

      • performance against agreed business key performance indicators; and

      • performance against agreed individual key performance indicators.

        
        

        No part of the award will vest unless Mr Nel is in employment at each annual vesting date (August), failing which any unvested awards will lapse.

        
        

        Employee Retention Share Scheme

        Mr Nel does not participate in this scheme and no awards have been made to him under the scheme. The scheme was established on 1 July 2012 and is designed to retain and incentivise senior executives and managers deemed key to the rollout of the Group's revised business plans in South Africa which include the successful transition to owner operator model, implementation of the revised mining support system, management of care and maintenance projects and returning the South African operating business to profitability.

        
        

        The grant of shares is a long-term incentive plan to cover three years. The ERSS is only available to senior management who do not participate in the Aquarius Director/Employee Share Plan (2008).

        
        

        The estimated aggregate number of shares required for the participants is acquired by the Company on the open market (JSE) on a piecemeal basis and retained in a treasury pool until allocated each year. To qualify, participants need to be in the employment of the Group at 30 June of each determinant year. Shares awarded each year comprise a long-term incentive portion and a short-term incentive portion which is determined based on the safety, production, financial and transformation performance of the Company at the end of each financial year. During the year 2,305,000 shares were purchased for the ERSS and 1,145,330 shares were issued to employees.

        
        

        Aquarius Director/Employee Share Plan 2008 (no current intention to use)

        The Aquarius Director/Employee Share Plan (2008) was established to provide the long-term incentive portion of executive remuneration. It was designed to retain the services of key executives and to ensure that a portion of executive remuneration is directly aligned with the long-term strategic goals of the Company and shareholder value.

        
        

        As disclosed last year there is no current intention to use this scheme in future with the Aquarius Restricted Share Scheme 2014 having been approved. During the year 609,667 shares were issued to directors and employees of the Company.

        Remuneration policy (continued)

        Remuneration policy of other employees

        Our approach to remuneration is generally consistent across the Company. Certain elements of remuneration will differ by reference to the seniority of the individual concerned. Below the Board the senior executives participate in annual bonus schemes on a similar basis as the executive directors with the level of benefit being dependent upon the seniority of the individual. Performance conditions are set to be reflective of the individual within the organisation. The main differences in remuneration policy between the executive directors and employees across the Group are the increased emphasis on performance related pay and the inclusion of a significant share-based long-term incentive plan for executive directors and certain elements of benefits.

        
        

        Illustration of application of policy

        The graph below shows the remuneration package based on the policy for Mr Nel without the shares in lieu element and assumes for maximum full face value for the long-term incentive and maximum annual bonus. For the on target range the value of the long-term incentive and annual bonus is assumed to be half the value of the maximum. The graph also assumes the provision of pension and benefits, which are currently not provided.

        
        

        
        

        $2,500,000

        
        

        $2,000,000

        
        

        $1,500,000

        
        

        $1,000,000

        
        

        $500,000

        Long term incentive

        Bonus Pension Benefits

        Base

        
        

        $0

        
        

        Max

        On target

        Min

        
        

        Policy for the appointment of a new executive director

        When hiring a new executive director or promoting an individual to the Board, the Committee will offer a package that is sufficient to attract and motivate while aiming to pay no more than is necessary taking account of market data, the impact on other existing remuneration arrangements, the candidate's location and experience, external market influences and internal pay relativities.

        
        

        The structure of the remuneration package of a new executive director will follow the policy above, however in certain circumstances, the Committee may use other elements of remuneration, or different performance conditions, if it considers it appropriate to do so, with due regard to the best interests of the shareholders. In particular, it may use a service contract that contains a longer initial notice period, tapering down to 12 months over a set period of time. The overall value of the package will not exceed the aggregate of the policy above.

        
        

        The Committee may, where necessary and in the interests of shareholders, also offer recruitment incentives to facilitate the recruitment of an appropriate individual but this shall be within the overall limits of the policy above and where necessary making use of FSA Listing Rule 9.4.2 if an alternative structure (but not quantum) was required.

        
        

        Policy on payment on ceasing employment

        The Company's approach to payment on loss of office will take account of the circumstances of the termination of employment.

        
        

        Where an executive director retires from the Company they will not normally receive a termination payment but will be entitled to a proportionate allocation of any annual bonus and the release of the long-term incentives as provided below and in accordance with the plan rules.

        Remuneration policy (continued)

        Policy on payment on ceasing employment (continued)

        In the case of a good leaver, the individual will be expected to work through the notice period and will be entitled to all the benefits under the service agreement during that period.

        
        

        In the case of termination as a result of poor performance or a breach of any of the material terms of the agreement, the Company may terminate with immediate effect without notice and with no liability to make any further payment to the individual, other than in respect of amounts accrued due at the date of termination.

        
        

        In the case that the Company wishes to terminate the agreement and make a payment in lieu of notice, this payment will be phased in monthly or quarterly instalments over a period of no longer than 12 months (or the notice period if less). Any payment will be reduced in accordance with the duty on the executive to mitigate his or her expenses owing to the Company.

        
        

        Payout under incentive arrangements

        For the annual bonus scheme:

    • a good leaver shall be paid out at the normal time when the bonus matures but the amount payable shall be scaled back on a time proportionate basis;

    • a bad leaver shall have no bonus entitlement; and

    • on death or disability, the Remuneration Committee shall determine the bonus to be paid taking into account the duration of employment and performance of the Company.

      
      

      For the long-term incentive arrangements:

    • on death or disability, the Remuneration Committee shall determine any payout taking into account the duration of the employment and performance of the Company; and

    • for other leavers, the entitlements on termination are restricted to the number of shares that have vested at the time of termination unless determined otherwise by the Remuneration Committee in exceptional circumstances. The exercise of this discretion shall take into account the circumstances of the case and the performance and duration up to the date of cessation of employment.

      
      

      Policy on external appointments

      The Company encourages the directors to have external appointments provided that such appointments do not adversely impact the duties required to be performed to the Company. Where there are external appointments the director will retain any fees for such appointments and will not be liable to account to the Company for such fees. The existing executive director has no external appointments.

      
      

      Service agreement for executive director

      At the time of his appointment as Chief Executive Officer in November 2012, Mr Nel's contractual arrangements were reviewed. The terms of Mr Nel's revised contract are in line with his previous contract as Commercial Director of the Group and no increase in salary was sought. Mr Nel's contract provides for an incentive bonus up to a maximum of 100% (increased to 150% next year) of base salary. The grant of a bonus is subject to the discretion of the Remuneration Committee and is based on bonus parameters determined by the Remuneration Committee. Mr Nel's service agreement provides for 12 months notice from the Company to terminate the agreement and 12 months notice from Mr Nel to the Company to terminate the agreement.

      Remuneration policy (continued)

      Remuneration policy for non-executive directors

      Non-executive directors receive fixed remuneration only, which comprises annual board fees and committee fees based on membership of the various committees of the Board. Remuneration is paid quarterly. In November 2013 at the AGM of the Company, shareholders approved resolutions to allow directors to receive 25% of their directors' fees in shares as opposed to cash (commencing 1 January 2014) as part of the Company's cash conservation initiatives. In addition, directors agreed to a 10% reduction in fees effective 1 January 2014. In November 2014 at the AGM of the Company, shareholders approved a resolution to allow the newly appointed Chairman-elect Sir Nigel Rudd to receive 100% of his directors' fees in shares for the period from his appointment as a director on 1 November 2014 until 31 December 2016 under the terms of the Aquarius Director/Employee Share Plan (2013) instead of cash. There is no variable or other performance related component to the remuneration structure for non-executive directors.

      
      

      Remuneration element	Purpose and link to strategy	Driving factors	Operation
      Fees	Market competitive reward to facilitate recruitment and retention of individuals with the skills and experience to be able to support the short and long-term development of the Company.	Market practice globally for the individual with the necessary skills and experience.	Non-executive directors' remuneration is reviewed annually by the full Board, taking into account the findings and recommendations of the Remuneration Committee. Non-executive director fees are benchmarked against the remuneration of non-executive directors serving on the Boards of comparable companies in terms of size, industry and geography. Fees are paid quarterly and the current basic fee is $198,000 for Chairman and $90,000 for non-executive directors. 100% of the Chairman's director's fee and 25% of non-executive director fees are paid in shares that the Company may issue under the terms as approved by shareholders at the AGM held in November 2013. Non-executive director fees were last reviewed in the 2011 financial year and no increases were made. Fees will be reviewed every two years but a review will not necessarily result in an increase. The next review will be in January 2017.
      Additional fees			In addition to the basic fee, non-executive directors are entitled to the following additional fees for chairing any committee (or being a committee member): Chair audit $15,000 Chair remuneration $12,000 Chair nomination $12,000 Membership of committees attracts a $7,500 annual fee. Senior independent director fee $15,000
      Other payments			No awards or options of any kind have been granted to non-executive directors.

      Annual remuneration report

      Base pay

      The base pay of the CEO is currently $641,000 comprising $451,000 and ZAR1.9 million ($190,000 at an exchange rate of ZAR10:$1.00) following a 6% increase that was awarded at the review in January 2015. The $451,000 element is paid quarterly in arrears in shares using a conversion price of 35 cents. The terms of this proposal were approved by shareholders at the AGM held in November 2013. 1,289,588 shares were issued to Mr Nel in lieu of salary at the agreed share price of 35 cents.

      
      

      Pension and benefits

      The CEO's current remuneration package does not include any pension or benefits.

      
      

      2015 annual bonus

      The Remuneration Committee approved a bonus equal to 100% of the CEO's base salary for the 2015 financial year. The bonus was converted to shares using a share price of 35 cents.

      
      

      The Remuneration Committee established the following KPI's for the purposes of determining the 2015 annual bonus:

      
      

      % of bonus	Performance	Details	Performance against measure
      40%	Operational and safety	Achievement of improved targets for production, costs and safety at Aquarius' controlled entities	Each indicator was exceeded with production being 3% above the previous year, unit cost being 3% better than target, and safety improved against target by 11%
      40%	Corporate	Completion of the refinance of the convertible bond, completion of the sale of identified non-core assets and compliance with the MPRDA/Mining Charter requirements	Refinancing completed in May 2014 Conclusion of the sale of non-core assets including Everest mine and Kruidfontein mining rights Ongoing full compliance with the MPRDA/Mining Charter requirements
      20%	Long-term objectives	Development of the Group's Strategic Plan including the establishment of a credible pipeline of growth projects	Detailed phase 2 strategy developed and delivered to the Board with list of pipeline projects, details of which remain in progress and commercially sensitive

      
      

      2016 annual bonus

      The performance conditions for the 2016 annual bonus will be the same as for 2015 and are as described in the table below. The annual bonus opportunity will be 150% of base for the CEO. Any such bonus payment up to 100% of base will be made in shares using a share price of 35 cents to calculate the conversion. Any bonus in excess of 100% will be paid in deferred shares released 12 and 24 months following the financial year end.

      
      

      % of bonus	Performance requirement	Details
      40%	Operational and safety	Achievement of budget targets for production, costs and safety at Kroondal and Mimosa
      40%	Corporate	Completion of the refinance of the convertible bond, completion of the sale of identified non-core assets, and compliance with the MPRDA/Mining Charter requirements
      20%	Long-term objectives	Development of the Group's Strategic Plan including the establishment of a credible pipeline of growth projects

      Annual remuneration report (continued)

      Directors' and executives' emoluments

      Details of the nature and amount of each element of the emolument of each director of the Group and the other key management personnel during the financial year are shown in the table below. The Group operates in an industry that has a limited number of participants, is under constant pressure from skills shortages and is exposed to a high level of staff poaching. For these reasons, remuneration of other key management personnel is shown in aggregate. Refer also to Note 32 - Share-based payment plans and Note 33 - Related party disclosures for participation by the directors and key management personnel in the Company's Share Plan.

      
      

      Short-term benefits				Post-employment benefits	Share-based payments
      Name	Board fee	Committee fee	Cash salary	Cash bonus	Superannuation/ ex gratia	Options/ shares	Total
      	$	$	$	$	$	$	$
      J. Nel	-	-	164,638	-	-	598,195 (a)	762,833
      N.Rudd	-	-	-	-	-	78,486 (b)	78,486
      N.T. Sibley	99,000	-	-	-	-	34,985 (c)	133,985
      D.R. Dix	67,500	22,500	-	-	-	19,231 (d)	109,231
      G.E. Haslam	67,500	27,000	-	-	-	19,231 (d)	113,731
      T. Freshwater	67,500	30,000	-	-	-	19,231 (d)	116,731
      K. Morna	67,500	15,000	-	-	-	19,231 (d)	101,731
      Z. Mankazana	67,500	7,500	-	-	-	19,231 (d)	94,231
      S. De Bruyn Sebotsa	67,500	12,000	-	-	-	19,231 (d)	98,731
      504,000	114,000	164,638	-	-	827,052	1,609,690
      Other key management personnel	-	-	1,241,051	548,289	135,996	345,241	2,270,577

      
      

    • represents 295,000 shares at $0.40 per share granted under the Aquarius Director/Employee Share Plan (2008); 958,084 shares at

      $0.23 per share granted in lieu of salary and 1,784,160 shares at $0.12 per share granted in lieu of bonus. In addition, it includes an accrual of $35,681 for which 331,504 shares were issued in lieu of salary subsequent to year end at $0.11 per share.

    • represents 228,600 shares granted in lieu of directors' fees at $0.15 per share. In addition, it includes an accrual of $43,502 for which shares were issued subsequent to year end.

    • represents 119,582 shares granted in lieu of directors' fees at $0.24 per share. In addition, it includes an under-accrual of $6,750 relating to the prior year.

    • represents 66,062 shares granted in lieu of directors' fees at $0.22 per share. In addition, it includes an accrual of $4,943 for which shares were issued subsequent to year end.

    The Board of Directors of Aquarius Platinum is committed to the principles of good corporate governance and aims to achieve the highest standards and best practice in its overall performance. In accordance with the Australian Securities Exchange Corporate Governance Council's (the Council's) Corporate Governance Principles & Recommendations, the UK Corporate Governance Code, the South African King Code of Governance Principles (King III), collectively (the Recommendations), it has established systems of accountability and control through its corporate governance framework as outlined in its corporate governance statement.

    
    

    The Board is conscious that the corporate governance environment is constantly evolving and the charters and policies under which it operates its business will continue to be monitored and amended. The Company will disclose the extent to which it has followed the guidelines and any reasons for departure from these. The charters or their summaries referred to in the following statement are available in the Corporate Governance section on the website at www.aquariusplatinum.com.

    
    

    Board of directors

    Structure of the board

    The bye-laws of the Company determine that the Board consists of not less than two and no more than nine directors. At the date of this report, the Board is comprised of eight directors, seven of whom are non-executive directors, including the Chairman, Sir Nigel Rudd, and one executive director, Mr Jean Nel, Chief Executive Officer.

    
    

    The names of the current directors, their relevant qualifications and experience are set out in the Directors' Report within this Annual Report. Their status as non-executive, executive or independent directors and tenure on the Board is set out in the table below:

    
    

    Board Structure
    Name of director in office at the date of this report	Date appointed to office	Executive/ Non-executive	Independent
    Sir N. Rudd - Chairman	1 November 2014	Non-executive	Yes
    J. Nel - Chief Executive Officer	3 April 2012	Executive	No
    D.R. Dix	31 March 2004	Non-executive	Yes
    G.E. Haslam	1 May 2004	Non-executive	Yes
    T. Freshwater	9 August 2006	Non-executive	Yes
    K. Morna	6 February 2007	Non-executive	Yes
    Z. Mankazana	6 November 2008	Non-executive	Yes
    S. de Bruyn Sebotsa	6 February 2013	Non-executive	Yes

    
    

    Roles and responsibilities of the board

    The Board is responsible for the overall effective management of the Group. It seeks to ensure that its activities conform to the regulatory and ethical requirements of its business affairs by establishing policies and controls to monitor the Group's long-term strategic direction and financial decision making. The Board aims to create sustainable value for shareholders and act in the best interests of its stakeholders, including employees, suppliers and the communities in which it operates. The schedule of matters specifically reserved for decision by the full Board is set out in Appendix One to the Board Charter and is available on the Company's website.

    
    

    The Board is governed by a Charter which establishes guidelines to ensure its members act in the best interests of the Company. A summary of the Charter can be found on the website at www.aquariusplatinum.com.

    Board of directors (continued)

    Roles and responsibilities of the board (continued)

    The division of responsibilities between the Chairman and executive management, led by the Chief Executive Officer, are separate and clearly defined below:

• The Chairman, Sir Nigel Rudd, is a non-executive independent director. He is responsible for leadership of the Board ensuring its members receive accurate, timely and clear information in order to facilitate effectiveness of its role. He sets the Board's agenda, conducts its meetings and facilitates effective communication with shareholders.

• The Chief Executive Officer and Managing Director, Mr Jean Nel, has responsibility for the management of the Group and leads executive management. He has been delegated responsibility by the Board for the day-to-day operation and administration of the Company. The Chief Executive Officer is assisted in managing the business of the Group by executive management and the Board of Aquarius Platinum (South Africa) (Pty) Ltd. Mr Nel represents the Group's interests as a director of the Mimosa Group of companies which owns the Mimosa Platinum Mine in Zimbabwe.

Appointments to the board

The Company's bye-laws authorise the Board to appoint new Directors. The Board of the Company has created a Nomination Committee to ensure a rigorous and structured process for appointing new directors to the Board.

New Board members will be sought who possess the particular skills, experience, independence, knowledge and diversity that will best complement Board effectiveness at the time. In considering overall Board balance, the Nomination Committee will give due consideration to the value of diversity of backgrounds, skills and experiences among the members. At times, an external search firm may be used to advise and/or assist in identifying appropriate candidates.

Directors' retirement and re-election

Aquarius' bye-laws determine that at each Annual General Meeting, at least one third of the Board are retired by rotation, therefore holding their positions for no longer than three years. This period of time provides continuity. Non-executive directors are appointed for a three-year term and may be invited to seek reappointment. A director appointed during the year is subject for election at the forthcoming Annual General Meeting. Pursuant to the bye- laws of the Company, the Chief Executive Officer is not subject to retirement by rotation.

Director independence

The Board works to ensure the majority of directors are non-executive, therefore bringing independence, objectivity and a broad range of expertise to the Group.

To facilitate their decision making, each director has the right to seek independent professional advice on matters relating to their position as a director or committee member of the Company at the Company's expense, subject to prior approval of the Chairman, which shall not be unreasonably withheld.

Independence of directors in essence means those directors independent of management and free of any business or other relationship that could, or could reasonably be perceived to, materially interfere with the exercise of unfettered and independent judgement.

In line with the Recommendations, the Board has accepted the guidelines outlined below in determining the independence of non-executive directors. In accordance with these guidelines, all directors, with the exception of Mr Jean Nel as Chief Executive Officer of the Company, are deemed independent.

Board of directors (continued)

Director independence (continued)

The Board has accepted the following definition of an independent director.

An independent director is someone who is not a member of management, is a non-executive director and who:

1. is not a substantial shareholder (5%) of the Company or an officer of, or otherwise associated directly with a substantial shareholder of the Company;

2. within the last three years has not been employed in an executive capacity by the Company or another Group member, or been a director after ceasing to hold any such employment;

3. within the last three years has not been a principal of a material professional adviser or a material consultant to the Company or another Group member, or an employee materially associated with the service provided;

4. is not a material supplier or customer of the Company or other Group member, or an officer of or otherwise associated directly or indirectly with a material supplier or customer; and

5. has no material contractual relationship with the Company or another Group member other than as a director of the Company.

   
   

   Board evaluation

   The Nomination Committee is responsible for determining and overseeing the process for evaluating the performance of the Board and each director in accordance with the Company's Policy of Evaluation of the Board. This process includes individual interviews conducted by the Senior Independent Director with each Board member. Evaluations are conducted on an annual basis and cover:

   • Board performance against the requirements of the Board Charter;

   • Committee performance against their respective Charters;

   • the performance of the Chairman, both in his capacity as Chairman and as an individual member of the Board; and

   • the performance of individual directors.

     
     

     Questionnaires are completed by each director. The questionnaires are appropriate in scope and content to effectively review the performance of the Board and each of its Committees against the requirement of their respective Charters. The questionnaires also cover individual director performance. The questionnaires are completed by each director annually and the responses compiled by the Nomination Committee and reported to the Board as a basis for consideration of the Board and each Committee's performance.

     
     

     Meetings of the board

     In order to retain full and effective control over the Company and monitor the executive management team, the Board meets regularly and at least on a quarterly basis. Details of directors' attendance at these meetings are set out in the Directors' Report. An agenda set by the Chairman and briefing materials are distributed to each director approximately seven days prior to each meeting to ensure each director is familiar with the scheduled matters of business. All directors may add a matter to the agenda or raise matters not on the agenda at any Board meeting. Key executives and senior management of the Company contribute to board papers and are invited to attend Board meetings from time to time.

     
     

     Senior independent non-executive director

     The senior independent non-executive director, Mr Tim Freshwater, is appointed by the Board. The senior independent director's role is primarily to provide a sounding board for the Chairman and to serve as an intermediary for the other directors when necessary.

     Board of directors (continued)

     Succession planning

     The Board brings the range of skills, knowledge, international experience and expertise necessary to govern the Group, but it is aware of the need to ensure processes are in place to assist with succession planning, not only for the Board, but within senior management. The Board periodically assesses its balance of skills and those of the Group in order to maintain an appropriate balance within the Company.

     
     

     Induction and education

     In order to assist directors in fulfilling their duties and responsibilities within the Company, a comprehensive induction programme is provided, including meetings with other Board members, the executive team, senior management and visits to the operating sites of the Company in South Africa and Zimbabwe. The program enables the new appointees to gain an understanding of the Company's financial, strategic, operational and risk management position at all times. Full access to all documentation pertaining to the Company is provided.

     
     

     Company secretary

     The Company Secretary, Mr Willi Boehm, is responsible for supporting the effectiveness of the Board by monitoring that Board policy and procedures are complied with, coordinating the flow of information within the Company and the completion and despatch of briefing materials for the Board. The Company Secretary is accountable to the Board on all governance matters. All directors have access to the services of the Company Secretary. The appointment and removal of the Company Secretary is a matter for the Board as a whole.

     
     

     Code of conduct

     The Aquarius Code of Conduct has been developed by the Board to provide a framework for all employees to conduct the business of the Company in an ethical and legal manner. The Board believes it is important that the Company maintains its obligations to shareholders and stakeholders.

     
     

     There are areas in which the Company must develop detailed policies in accordance with the requirements of local authorities and comply with local laws. The Code of Conduct stands as a set of principles developed by the Board to guide all employees to act with integrity and make informed choices when communicating or acting on behalf of the Company.

     
     

     The Board and senior executives of the Company have a clear commitment to the Code of Conduct. A summary of the Code of Conduct is available at www.aquariusplatinum.com.

     
     

     Diversity policy

     The Diversity Policy outlines the Company's commitment to create a work environment that is fair and inclusive. Diversity within the Group encompasses but is not limited to gender, age, ethnicity and cultural background. Aquarius employment policies and procedures are guided by the Mineral and Petroleum Resources Development Act no. 28 of 2002 and the accompanying Broad-Based Socio-Economic Charter for the South African Mining Industry. The Board believes that diversity contributes to its business and benefits shareholders and stakeholders. The Board has responsibility for oversight of this Policy and it is reviewed on an annual basis. More information can be found in the Corporate Citizenship Report on the website at www.aquariusplatinum.com.

     Securities trading policy

     The Board has adopted a policy covering dealings in securities by directors and relevant employees. The policy is designed to reinforce to shareholders, customers and the international community that Aquarius' directors and relevant employees are expected to comply with the law and best practice recommendations with regard to dealing in securities of the Company.

     
     

     In addition to the Australian Securities Exchange Listing Rules, a director and relevant employees must comply with the Model Code on directors' dealings in securities, as set out in Annexure 1 to Listing Rule 9 of the Rules of the United Kingdom Listing Authority, a copy of which can be found on the Aquarius website at www.aquariusplatinum.com.

     
     

     In addition to restrictions on dealing in closed periods, a director and relevant employees must not deal in any securities of the Company on considerations of a short-term nature and must take reasonable steps to prevent any dealings by, or on behalf of, any person connected with him in any securities of the Company on consideration of a short-term nature. In line with the listing rules of the Australian Securities Exchange, the UK Listing Authority and the Johannesburg Stock Exchange South Africa, all dealings by directors in the securities of the Company are announced to the market.

     
     

     Committees of the board

     The Board has established four standing committees to assist in the execution of its responsibilities: the Audit/Risk Committee, the Remuneration Committee, the Nomination Committee and the Social & Ethics Committee. The Social & Ethics Committee was established at AQPSA level to manage the Group's South African obligations with respect to the Companies Act (no 71 of 2008) of South Africa. Other committees are formed from time to time to deal with specific matters.

     
     

     In line with best practice, each of the committees operates under a Charter approved by the Board detailing their role, structure, responsibilities and membership requirements. Each of these Charters is reviewed annually by the Board and the respective committee. Summaries of the Remuneration Committee, Nomination Committee, Social & Ethics Committee and a complete Audit/Risk Committee Charter can be found on the Aquarius website at www.aquariusplatinum.com.

     
     

     Audit/Risk Committee

     The Audit/Risk Committee (the Committee) assists the Board of Aquarius in fulfilling its corporate governance and oversight responsibilities in relation to the Company's financial reports and financial reporting process, internal control structure, risk management systems (financial and non-financial) and the external audit process. The Committee is governed by a charter approved by the Board.

     
     

     The Committee consists of:

   • five members;

   • only non-executive directors;

   • a majority of independent directors; and

   • an independent chairperson, who shall be nominated by the Board from time to time but who shall not be the chairperson of the Board.

     
     

     The members of the Committee at the date of this report are as follows:

   • Mr David Dix (Chairman)

   • Mr Tim Freshwater

   • Mr Edward Haslam

   • Mr Kofi Morna

   • Sir Nigel Rudd

     Committees of the board (continued)

     Audit/Risk Committee (continued)

     Qualifications of Audit/Risk Committee members

     Mr Dix was appointed to the position as Chairman of the Committee following the retirement of Sir William Purves in November 2012. Mr Dix's background is in economics, law and taxation and he is a Barrister and Solicitor in the High Court of Australia. He has held various positions with Shell Australia Limited and worked for 16 years in Corporate Advisory at both Macquarie Bank Limited and UBS AG specialising in the mining industry, including Head of Resources for Asia Pacific and in London as Head of Mining. Mr Dix is Non-Executive Chairman of Troy Resources NL.

     
     

     Mr Freshwater is a solicitor in the UK and Hong Kong and has been involved in Asian markets for over 40 years. He is the director of a number of companies, including Swire Pacific Limited, Savills plc, and Hong Kong Exchanges and Clearing Limited. Mr Freshwater was appointed to the Audit/Risk Committee in February 2013.

     
     

     Mr Haslam is the former Chief Executive of Lonmin plc. He joined Lonmin in 1981, was appointed a director in 1999 and Chief Executive Officer in 2000. He retired from Lonmin in April 2004. In 2011, Mr Haslam was appointed Senior Independent Director of London and Toronto listed gold miner Centamin Egypt Limited.

     
     

     Mr Morna is an Executive Director of Savannah Resources (Pty) Limited, the lead investor in the Savannah Consortium, Aquarius Platinum's BEE partner. Prior to joining Savannah Resources, Mr Morna worked with the International Finance Corporation as an Investment Officer, Gemini Consulting as a Senior Management Consultant and Schlumberger Oilfield Services as a Field Engineer. Mr Morna holds an MBA from the London Business School and a BSc from Princeton University in the United States. He is currently a director of Mkhombi Holdings, Hall Core Drilling and a number of private mining exploration and beneficiation companies.

     
     

     Sir Nigel was appointed to the Board of Directors and as Chairman Designate in November 2014 and assumed the Chairmanship on 1 March 2015. He is a member of the Remuneration, Audit/Risk and Nomination Committees of the Group. Sir Nigel is Chairman of Heathrow Airport Holdings Limited, BBA Aviation plc, Meggitt plc and Business Growth Fund plc. He is also a Non-Executive Director of Sappi Limited. Previously, Sir Nigel was Chairman of Pilkington plc from August 1994 to June 2006, Chairman of Alliance Boots plc from December 1999 to June 2007, Chairman of Pendragon plc from October 1989 to October 2010, Chairman of Invensys plc from July 2009 to January 2014, and Non-Executive Director and latterly Deputy Chairman of Barclays Bank plc and Barclays plc from 1996 until April 2009. He is a former Chancellor of Loughborough University.

     
     

     The Board deems all members of the Committee have the relevant experience and understanding of accounting, financial issues and the mining industry to enable them to effectively oversee audit procedures.

     
     

     The Committee reviews the performance of the external auditors on an annual basis and meets with them at least twice a year to:

   • review the results and findings of the audit at year end and half year end and recommend their acceptance or otherwise to the Board;

   • review the results and findings of the audit, the appropriateness of provisions and estimates included in the financial results, the adequacy of accounting and financial controls, and to obtain feedback on the implementation of recommendations made; and

   • review the annual audit plan and audit fee for the audit of Aquarius and its controlled entities.

     
     

     The Committee receives regular reports from the external auditor on the critical policies and practices of the Company, and all alternative treatments of financial information within generally accepted accounting principles that have been discussed with management.

     
     

     The Committee assesses the Company's structure, business and controls annually. It ensures the Board is made aware of internal control practices, risk management and compliance matters which may significantly impact upon the Company in a timely manner.

     
     

     The Committee meets when deemed necessary and at least twice a year. The Company Secretary acts as secretary of the Committee and distributes minutes to all Board members.

     Committees of the board (continued)

     Audit/Risk Committee (continued)

     Details of attendance at Committee meetings is set out in the Directors' Report.

     
     

     Remuneration Committee

     The members of the Remuneration Committee (the Committee) at the date of this report are:

   • Mr Edward Haslam (Chairman)

   • Sir Nigel Rudd

   • Mr David Dix

   • Mr Zwelakhe Mankazana

     
     

     The Committee is governed by a charter approved by the Board, a summary of which is available on the Company's website at www.aquariusplatinum.com. The Board deem all members of the Committee have the relevant experience and understanding to enable them to effectively oversee their responsibilities. The members of the Committee are non-executive directors the majority of whom are considered independent.

     
     

     The Committee reviews compensation arrangements for the directors and the executive team. The Committee assesses the appropriateness of the nature and amount of emoluments of such officers on a periodic basis by reference to relevant employment market conditions, with the overall objective of ensuring maximum shareholder benefit from the retention of a high quality executive team.

     
     

     In carrying out its responsibilities, the Committee is authorised by the Board to secure the attendance of any person with relevant experience and expertise at Committee meetings, if it considers their attendance to be appropriate and to engage, at the Company's expense, outside legal or other professional advice or assistance on any matters within its charter or terms of reference.

     
     

     The Committee meets as necessary, but must meet at least once a year. The Company Secretary acts as secretary of the meetings and distributes minutes to all Board members. Details of attendance at Committee meetings are set out in the Directors' Report.

     
     

     Nomination Committee

     The Nomination Committee (the Committee) consists of six members. In February 2015 Sir Nigel Rudd was appointed to the Committee following his appointment as Chairman of Aquarius. The members of the Committee at the date of this report are:

   • Ms Sonja De Bruyn Sebotsa (Chairman)

   • Mr Tim Freshwater

   • Mr Ed Haslam

   • Mr Kofi Morna

   • Sir Nigel Rudd

   • Mr Willi Boehm

     
     

     The Committee is governed by a Charter and will have reference to the following Company policies in its activities:

   • the policy for selection, appointment and re-election of directors; and

   • the policy for evaluation of the Board.

     
     

     The Board deem all members of the Committee have the relevant experience and understanding to enable them to effectively oversee their responsibilities. The members of the Committee comprise a majority of non-executive directors the majority of whom are considered independent.

     
     

     If the appointment of a new director is required to fill a vacancy on the Board, or to complement the existing Board, a range of candidates are considered. Qualifications of the proposed director are assessed by the Committee to determine if their skills and experience will enhance the Board and whether they will have the availability to commit to the Board's activities. A director appointed during the year is subject for election at the forthcoming Annual General Meeting. The Committee may at times take into consideration the advice of external consultants to assist with this process.

     Committees of the board (continued)

     Nomination Committee (continued)

     New directors are provided with a letter to formalise their appointment. This sets out the Company's expectations once they accept the position, their duties, rights, responsibilities and policies of the Company.

     
     

     Meetings take place as often as necessary, but the Committee must meet at least once a year. The Company Secretary acts as secretary of the meetings and distributes minutes to all Board members.

     
     

     Appointments are referred to shareholders at the next available opportunity for election in general meeting.

     
     

     Social & Ethics Committee

     Whilst the Board monitors adherence to social and ethical issues of the Company via its various committees and governance policies, a specific Social & Ethics Committee has been established at its principal subsidiary, AQPSA, to assist the Board in fulfilling its corporate governance and oversight responsibilities in relation to the Company's South African obligations as required by the Companies Act (no 71 of 2008) of South Africa.

     
     

     This Committee is governed by a charter, a summary of which is on the Company's website. The Committee consists of a minimum of three members, one of which must be a non-executive director.

     
     

     The members of the Committee at the date of this report are as follows:

   • Mr Z Mankazana (Chairman)

   • Ms S De Bruyn Sebotsa

   • Mr C Kendall

   • Mr J Nel

   • Mr R Schroder

The aims and objectives of the Committee are to monitor the Company's activities, having regard to any relevant legislation, other legal requirements or prevailing codes of best practice, in relation to:

Continuous disclosure

The Company has in place a Continuous Disclosure Policy, a summary of which is available on the website at www.aquariusplatinum.com. It outlines the Company's commitment to disclosure, ensuring that timely and accurate information is provided to all shareholders and stakeholders. The Company Secretary is the nominated Communication Officer and is responsible for liaising with the Board to ensure that the Company complies with its continuous disclosure requirements.

A three member Disclosure Committee has been formed comprising the Chief Executive Officer, Mr Jean Nel, the Company Secretary, Mr Willi Boehm, and any one non-executive director. The Disclosure Committee is responsible for overseeing and coordinating the disclosure of information and announcements to the regulatory authorities, analysts, brokers, shareholders, the media and the public.

The Disclosure Committee regularly reviews the Company's compliance with its continuous disclosure obligations.

Communications with shareholders

Shareholder communication is given high priority by the Company. In addition to statutory requirements, such as the Annual Report and Financial Statements for the half and full year, Aquarius Platinum maintains a website which contains announcements and quarterly reports which have been released to the listing authorities - the ASX, LSE and the JSE, and forwarded to the US Securities and Exchange Commission (SEC). Meetings are held with institutional shareholders when this is believed to be in the Company's best interest but no information is shared which is not available to shareholders generally. Presentations that senior executives may deliver to conferences or analysts are also placed on the website as they occur.

Shareholders are able to contact the Company via the email address at [email protected] Through the website, shareholders are also given the opportunity to provide an email address by which they are able to receive these documents. The Chief Executive Officer hosts webcasts for the half year and full year results and notification of these is provided on the Company's website.

Meetings

The Company's Notice of Meeting materials are distributed to shareholders with an accompanying explanatory memorandum. These documents present the business of the meeting clearly and concisely and are presented in a manner that will not mislead shareholders or the market as a whole. The Notice is despatched to shareholders in a timely manner providing at least 21 days notice pursuant to the bye-laws of the Company. Each notice includes the business of the meeting, details of the location, time and date of the meeting and proxy voting instructions.

Upon release of the Notice of Meeting and Explanatory Memorandum to the ASX, LSE and JSE, a full text of the Notice of Meeting and Explanatory Memorandums is placed on the website at www.aquariusplatinum.com for shareholders and other market participants. Notification of the documents release is provided on the Company's website.

Risk management

The Company has established policies on risk oversight and management. The Board is committed to monitoring, identifying and managing the material risks of the business activities across the Group. The Company has risk registers across its operations that are updated by the director responsible for risk on a quarterly basis. The Audit/Risk Committee reviews the risk registers on a quarterly basis and the full Board of Aquarius annually. This ensures the Board is made aware of internal control practices, risk management and compliance matters which may significantly impact upon the Company in a timely manner.

The registers set out risks that have been identified. The risks are categorised based on the severity of risk and the probability of the event occurring, and subsequently assessed to ensure adequate control measures are identified to ensure all risks are appropriately mitigated. Further information on risk management is located in the Corporate Citizenship Report available on the Company's website at www.aquariusplatinum.com.

2015	2014
Note	$'000	$'000
Revenue	7	212,908	233,056
Cost of sales	7	(210,816)	(231,158)
Gross profit	2,092	1,898
Other income	7	173	174
Administrative costs	7	(6,230)	(7,353)
Foreign exchange gain	1,572	1,843
Finance costs	7	(15,437)	(28,091)
Impairment losses	7	(29,445)	(3,084)
Profit on repurchase of bonds	25	-	10,925
Profit on sale of assets	7	20,511	653
Foreign currency translation reserve recycled on disposal	(13,262)	-
BEE partner guarantee	(2,093)	-
Rehabilitation cost reversal	7	-	5,342
Share of (loss)/profit from joint venture entities	13	(48,298)	5,055
Loss before income tax	(90,417)	(12,638)
Income tax expense	8	(7,660)	(544)
Net loss for the year	(98,077)	(13,182)
Other comprehensive income that may be recycled to profit or loss
Foreign currency translation adjustments	(27,329)	(15,979)
Total other comprehensive loss	(27,329)	(15,979)
Total comprehensive loss	(125,406)	(29,161)
Loss is attributable to:
Equity holders of Aquarius Platinum Limited	(96,310)	(13,048)
Non-controlling interests	(1,767)	(134)
(98,077)	(13,182)
Total comprehensive loss is attributable to:
Equity holders of Aquarius Platinum Limited	(123,746)	(29,064)
Non-controlling interests	(1,660)	(97)
(125,406)	(29,161)
Earnings per share *
Basic loss per share (cents per share)	9	(6.59)	(1.38)
Diluted loss per share (cents per share)	9	(6.59)	(1.38)

* Earnings per share for the 2014 financial year reflects the impact of the bonus element of the rights issue undertaken

Statement of financial position as at 30 June 2015

2015	2014
Note	$'000	$'000
Assets
Non-current assets
Receivables	11	14,233	9,180
Available-for-sale investments	12	392	451
Investments in joint venture entities	13	150,609	230,410
Mining assets	15	163,439	209,211
Deferred tax asset	8	293	14,652
Restricted cash in environmental trusts	16	13,905	16,902
Intangible asset	17	17,727	54,499
Total non-current assets	360,598	535,305
Current assets
Cash and cash equivalents	18	195,773	136,820
Trade and other receivables	19	29,231	30,104
Inventories	20	8,463	15,246
Total current assets	233,467	182,170
Total assets	594,065	717,475
Equity and liabilities
Capital and reserves
Issued capital	27	75,266	73,216
Treasury shares	28	(26,056)	(26,239)
Reserves	29	761,134	781,692
Accumulated losses	(456,760)	(360,450)
Total equity attributable to equity holders of Aquarius Platinum Limited	353,584	468,219
Non-controlling interests	3,889	5,549
Total equity	357,473	473,768
Non-current liabilities
Payables	21	2,059	2,065
Interest bearing loans and borrowings	22	2,020	118,919
Deferred tax liabilities	8	7,687	16,837
Provisions	23	61,345	65,763
Total non-current liabilities	73,111	203,584
Current liabilities
Trade and other payables	24	34,523	34,189
Interest bearing loans and borrowings	25	124,880	1,362
Income tax payable	8	1	90
Provisions	26	4,077	4,482
Total current liabilities	163,481	40,123
Total liabilities	236,592	243,707
Total equity and liabilities	594,065	717,475

At 1 July 2014	Issued capital $'000	Treasury shares $'000	Share premium reserve $'000	Foreign currency translation reserve $'000	Equity benefits reserve $'000	Ridge replacement options reserve $'000	Equity reserve $'000	Convertible bond equity component $'000	Accumulated losses $'000	Owners of the parent $'000	Non- controlling interest $'000	Total $'000
	73,216	(26,239)	1,201,126	(108,343)	466	92	(338,019)	26,370	(360,450)	468,219	5,549	473,768
Loss for the period	-	-	-	-	-	-	-	-	(96,310)	(96,310)	(1,767)	(98,077)
Other comprehensive income	-	-	-	(27,436)	-	-	-	-	-	(27,436)	107	(27,329)
Total comprehensive income for the period	-	-	-	(27,436)	-	-	-	-	(96,310)	(123,746)	(1,660)	(125,406)
Transactions with owners in their capacity as owners:	1,605	-	1,605
Equity benefits issued to employees				225	697	683	-	-	-	-	-	-
On market purchase of share plan shares	-	(514)	-	-	-	-	-	-	-	(514)	-	(514)
Shares issued on Kruidfontein settlement	1,825	-	6,195	-	-	-	-	-	-	8,020	-	8,020
At 30 June 2015	75,266	(26,056)	1,208,004	(135,779)	466	92	(338,019)	26,370	(456,760)	353,584	3,889	357,473

At 1 July 2013	Issued capital $'000	Treasury shares $'000	Share premium reserve $'000	Foreign currency translation reserve $'000	Equity benefits reserve $'000	Ridge replacement options reserve $'000	Equity reserve $'000	Convertible bond equity component $'000	Accumulated losses $'000	Owners of the parent $'000	Non- controlling interest $'000	Total $'000
	24,343	(26,526)	1,030,810	(92,327)	466	92	(361,826)	62,666	(347,402)	290,296	5,646	295,942
Loss for the period	-	-	-	-	-	-	-	-	(13,048)	(13,048)	(134)	(13,182)
Other comprehensive income	-	-	-	(16,016)	-	-	-	-	-	(16,016)	37	(15,979)
Total comprehensive income for the period	-	-	-	(16,016)	-	-	-	-	(13,048)	(29,064)	(97)	(29,161)
Transactions with owners in their capacity as owners:	218,394	-	218,394
Rights issue				48,810	-	169,584	-	-	-	-	-	-
Repurchase of convertible bonds	-	-	-	-	-	-	23,807	(36,296)	-	(12,489)	-	(12,489)
Equity benefits issued to employees	63	1,012	732	-	-	-	-	-	-	1,807	-	1,807
Participation in rights issue by controlled entities	-	(2,297)	-	-	-	-	-	-	-	(2,297)	-	(2,297)
On market purchase of share plan shares	-	(1,477)	-	-	-	-	-	-	-	(1,477)	-	(1,477)
Consideration received by controlled entities from sale of equity rights in the parent entity	-	3,049	-	-	-	-	-	-	-	3,049	-	3,049
At 30 June 2014	73,216	(26,239)	1,201,126	(108,343)	466	92	(338,019)	26,370	(360,450)	468,219	5,549	473,768

Aquarius Platinum Limited

Statement of cash flows for the year ended 30 June 2015

2015	2014
Note	$'000	$'000
Cash flows from operating activities
Receipts from customers	221,579	231,520
Payments to suppliers and employees	(210,565)	(215,959)
Foreign exchange gain on currency contract	773	-
Interest received	6,431	5,714
Other income	172	398
Income taxes paid	(538)	(581)
Net cash from operating activities	17,852	21,092
Cash flows from investing activities
Payments for mining assets	(23,139)	(28,073)
Proceeds from sale of Kruidfontein prospecting rights	26,811	-
Tax payment relating to sale of Kruidfontein prospecting rights	(3,041)	-
Proceeds from sale of Everest	32,783	-
VAT collected on sale of Everest	4,512	-
Proceeds from sale of mining assets	608	849
Net cash from/(used in) investing activities	38,534	(27,224)
Cash flows from financing activities
Interest and other finance costs paid	(6,015)	(12,709)
Payment for repurchase of bonds including transaction costs	-	(162,429)
Proceeds from rights issue	-	223,845
Transaction costs relating to rights issue	(1,262)	(8,351)
Proceeds from sale of rights	-	3,049
Proceeds from borrowings	4,652	2,989
Repayment of borrowings	(2,596)	(4,274)
Purchase of shares reserved for share plan	(514)	-
Loans to joint venture entities	(1,725)	(2,222)
Dividends from joint venture entities	20,000	22,373
Net cash from financing activities	12,540	62,271
Net increase in cash held	68,926	56,139
Cash and cash equivalents at the beginning of the financial year	136,820	77,773
Net foreign exchange differences	(9,973)	2,908
Cash and cash equivalents at the end of the financial year	18	195,773	136,820

1. Corporate information

   The consolidated financial statements of Aquarius Platinum Limited (Aquarius or the Company) for the year ended 30 June 2015 were authorised for issue in accordance with a resolution of the directors on 30 September 2015. Aquarius Platinum Limited is a limited company incorporated and domiciled in Bermuda whose shares are publicly traded. The principal activities of the Group are described in the Directors' Report.

   
   

2. Basis of preparation

   The consolidated financial statements have been prepared under the historical cost accounting convention except for available-for-sale investments and derivative financial instruments that have been measured at fair value.

   
   

   Statement of compliance

   The consolidated financial statements of Aquarius Platinum Limited and its subsidiaries have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).

   
   

   The consolidated financial information is presented in US Dollars and has been rounded to the nearest thousand US Dollars unless otherwise stated.

   
   

   Basis of consolidation

   The consolidated financial statements comprise the accounts of Aquarius Platinum Limited and its controlled subsidiaries, after the elimination of all material intercompany balances and transactions.

   
   

   Subsidiaries are consolidated from the date the parent entity obtains control and continue to be consolidated until such time as control ceases. Where there is a loss of control of a subsidiary, the consolidated accounts include the results for the part of the reporting period during which the parent entity had control. A list of subsidiaries appears in Note 33(a).

   
   

   The accounts of subsidiaries are prepared for the same reporting period as the parent entity, using consistent accounting policies. Adjustments are made to bring into line any dissimilar accounting policies which may exist.

3. Changes in accounting policies and disclosures

   The Group has adopted all new and revised Standards and Interpretations issued by the International Accounting Standards Board (IASB) and the International Financial Reporting Interpretation Committee (IFRIC) of the IASB that are relevant to its operations and effective for accounting periods beginning on or after 1 July 2014. The adoption of these new and revised Standards and Interpretations has resulted in changes to the Group's accounting policies as set out below:

   
   

   Reference	Title	Summary	Impact
   IFRIC 21	Levies	This interpretation confirms that a liability to pay a levy is only recognised when the activity that triggers the payment occurs. Applying the going concern assumption does not create a constructive obligation.	There was no material impact on the Annual Report.
   IAS 32	Amendments to IAS 32 - Offsetting Financial Assets and Financial Liabilities	The IASB adds application guidance to IAS 32 Financial Instruments: Presentation to address inconsistencies identified in applying some of the offsetting criteria of IAS 32, including clarifying the meaning of 'currently has a legally enforceable right of set-off' and that some gross settlement systems may be considered equivalent to net settlement.	There was no material impact on the Annual Report.
   IAS 36	Amendments to IAS36 - Recoverable Amount Disclosures for Non-Financial Assets	The IASB amends the disclosure requirements in IAS 36 Impairment of Assets. The amendments include the requirement to disclose additional information about the fair value measurement when the recoverable amount of impaired assets is based on fair value less costs of disposal.	There was no material impact on the Annual Report.
   IAS 19	Defined Benefit Plans: Employee Contributions (Amendments to IAS 19)	The IASB makes amendments in relation to the requirements for contributions from employees or third parties that are set out in the formal terms of the benefit plan and linked to service. The amendments clarify that if the amount of the contributions is independent of the number of years of service, an entity is permitted to recognise such contributions as a reduction in the service cost in the period in which the related service is rendered, instead of attributing the contributions to the periods of service.	There was no material impact on the Annual Report.

4. Significant accounting judgements and estimates

   In the process of applying the Group's accounting policies, management has made the following judgements and estimations, which have the most significant effect on the amounts recognised in the financial statements. The carrying amounts of certain assets and liabilities are often determined based on estimates and assumptions of future events. The key estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of certain assets and liabilities within the next annual reporting period are:

   
   

   • Joint arrangements

     Judgement is required to determine when the Group has joint control, which requires an assessment of the relevant activities and when the decisions in relation to those activities require unanimous consent. The Group has determined that the relevant activities for its joint arrangements are those relating to the operating and capital decisions of the arrangement, such as: the approval of the capital expenditure programme for each year, and appointing, remunerating and terminating the key management personnel or service providers of the joint arrangement. The considerations made in determining joint control are similar to those necessary to determine control over subsidiaries.

     
     

     Judgement is also required to classify a joint arrangement as either a joint operation or a joint venture. Classifying the arrangement requires the Group to assess their rights and obligations arising from the arrangement. Specifically, it considers:

     • The structure of the joint arrangement - whether it is structured through a separate vehicle.

     • When the arrangement is structured through a separate vehicle, the Group also considers the rights and obligations arising from:

       • the legal form of the separate vehicle; and

       • the terms of the contractual arrangement.

         
         

         This assessment often requires significant judgement, and a different conclusion on joint control and also whether the arrangement is a joint operation or a joint venture may materially impact the accounting.

         
         

   • Determination of mineral resources and ore reserves

     Aquarius estimates its mineral resources and ore reserves in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the 'JORC code'). The information on mineral resources and ore reserves was prepared by or under the supervision of Competent Persons as defined in the JORC code.

     
     

     There are numerous uncertainties inherent in estimating mineral resources and ore reserves and assumptions that are valid at the time of estimation may change significantly when new information becomes available.

     
     

     Changes in the forecast prices of commodities, exchange rates, production costs or recovery rates may change the economic status of reserves and may, ultimately, result in the reserves being restated. Such changes in reserves could impact on depreciation and amortisation rates, asset carrying values, deferred stripping costs and provisions for decommissioning and restoration.

     
     

   • Impairment of capitalised exploration and evaluation expenditure

The future recoverability of capitalised exploration and evaluation expenditure is dependent on a number of factors, including whether the Group decides to exploit the related lease itself or, if not, whether it successfully recovers the related exploration and evaluation asset through sale.

Factors which could impact the future recoverability include the level of proved and probable mineral reserves, future technological changes which could impact the cost of mining, future legal changes (including changes to environmental restoration obligations) and changes to commodity prices.

To the extent that capitalised exploration and evaluation expenditure is determined not to be recoverable in the future, this will reduce profits and net assets in the period in which this determination is made.

1. Significant accounting judgements and estimates (continued)

   • Impairment of capitalised exploration and evaluation expenditure (continued)

     In addition, exploration and evaluation expenditure is capitalised if activities in the area of interest have not yet reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves. To the extent that it is determined in the future that this capitalised expenditure should be written off, this will reduce profits and net assets in the period in which this determination is made.

     
     

   • Impairment of capitalised mine development expenditure

     The future recoverability of capitalised mine development expenditure is dependent on a number of factors, including the level of proved and probable ore reserves, future technological changes which could impact the cost of mining, future legal changes (including changes to environmental restoration obligations) and changes to commodity prices.

     
     

     To the extent that capitalised mine development expenditure is determined not to be recoverable in the future, this will reduce profits and net assets in the period in which this determination is made.

     
     

   • Impairment of property, plant and equipment

     Property, plant and equipment are reviewed for impairment if there is any indication that the carrying amount may not be recoverable. Where a review for impairment is conducted, the recoverable amount is assessed by reference to the higher of 'value in use' (being the net present value of expected future cash flows of the relevant cash generating unit) and 'fair value less costs to sell'.

     
     

     In determining value in use, future cash flows are based on estimates of the quantities of economically recoverable ore reserves and mineral resources for which there is a high degree of confidence of economic extraction, future production levels, future commodity prices and future cash costs of production.

     
     

     Variations to the expected future cash flows, and the timing thereof, could result in significant changes to any impairment losses recognised, if any, which could in turn impact future financial results.

     
     

   • Impairment of intangible assets

     For intangible assets with limited lives, the Group determines whether the asset is impaired when an indication of impairment exists.

     
     

     In determining recoverable amount, future cash flows are based on estimates of the quantities of economically recoverable ore reserves and mineral resources for which there is a high degree of confidence of economic extraction, future production levels, future commodity prices and future cash costs of production.

     
     

   • Restoration provisions

     The Group records the present value of the estimated cost of restoring operating locations in the period in which the obligation arises, which is typically at the commencement of construction or disturbance to the environment. The nature of the restoration activities includes the removal of facilities, abandonment of mine sites and rehabilitation of the affected areas. In most instances this arises many years in the future. The application of this policy necessarily requires judgemental estimates and assumptions regarding the date of abandonment, environmental legislation, engineering methodology adopted, technologies to be used, expected future inflation rates and the asset specific discount rates used to determine the present value of these cash flows.

     
     

   • Revenue recognition

The accounting policy for sale of goods is set out in Note 5(j). The determination of revenue from the time of initial recognition of the sale on a provisional basis through to final pricing requires management to continuously re-estimate the fair value of the price adjustment feature. Management determines this with reference to estimated forward prices using consensus forecasts.

1. Significant accounting judgements and estimates (continued)

   • Production start date

     The Group assesses the stage of each mine under construction to determine when a mine moves into the production stage. The criteria used to assess the start date are determined based on the unique nature of each mine construction project, such as the complexity of a plant and its location. The Group considers various relevant criteria to assess when the mine is substantially complete, including, but not limited to, the following:

     • the level of capital expenditure compared to the construction cost estimates;

     • completion of a reasonable period of testing of the mine plant and equipment;

     • ability to produce product in saleable form (within specifications); and

     • ability to sustain ongoing production of metal.

       When a mine construction project moves into the production stage, the capitalisation of certain mine construction costs ceases and costs are either regarded as inventory or expensed, except for costs that qualify for capitalisation relating to mining asset additions or improvements, underground mine development or mineable reserve development. It is also at this point that depreciation/amortisation commences.

       
       

   • Inventories

     Net realisable value tests are performed at least annually and represent the estimated future sales price of the product based on prevailing spot metal prices at the reporting date, less estimated costs to complete production and bring the product to sale. Stockpile and concentrate tonnages are verified by periodic surveys.

     
     

   • Taxes

     Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

     
     

2. Significant accounting policies

1. Exploration for and evaluation of mineral resources

   Pre-license costs are expensed in the statement of profit or loss & other comprehensive income as incurred.

   
   

   Exploration and evaluation costs, including the costs of acquiring licences, are capitalised as exploration and evaluation assets (E&E assets) on a project-by-project basis pending determination of the technical feasibility and commercial viability of the project. The capitalised costs are presented as either tangible or intangible E&E assets according to the nature of the assets acquired. When a licence is relinquished or a project is abandoned, the related costs are recognised in the statement of profit or loss & other comprehensive income immediately.

   
   

   E&E assets are assessed for impairment if (i) sufficient data exists to determine technical feasibility, and (ii) facts and circumstances suggest that the carrying amount exceeds the recoverable amount. For the purposes of impairment testing, E&E assets are allocated to cash-generating units consistent with the determination of reportable segments.

   
   

   The technical feasibility and commercial viability of extracting a mineral resource is considered to be determinable when proven and probable reserves are determined to exist. Upon determination of proven and probable reserves, tangible and intangible E&E assets attributable to those reserves are first tested for impairment and then reclassified from E&E assets to the relevant category within mining assets.

   
   

   Expenditure deemed to be unsuccessful is recognised in the statement of profit or loss & other comprehensive income immediately.

   5. Significant accounting policies (continued)

2. Mining assets

   Mining assets which consist of mineral and surface rights, option and prospecting fees, mine development costs, process plants and buildings and equipment are stated at cost less accumulated depreciation and accumulated impairment losses.

   
   

   The initial cost of an asset comprises its purchase price or construction cost, any cost directly attributable to bringing the asset into operation, the initial estimate of the rehabilitation obligation, and for qualifying assets, borrowing costs. The purchase price or construction cost is the aggregate amount paid and the fair value of any other consideration given to acquire the asset.

   
   

   While a mine is being developed these costs are accumulated and capitalised until mining commences after which they are accounted for as follows:

   
   

   Mining tenements

   • Mineral rights

     Mineral rights are depreciated over their estimated useful lives using the unit-of-production method based on proven and probable platinum ore reserves. Proven and probable platinum ore reserves reflect estimated quantities of economically recoverable resources which can be recovered in future from known mineral deposits.

     
     

   • Surface rights

     Surface rights in respect of freehold land are held for mining purposes only and are not depreciated, as their values should not be depleted through mining activities.

     
     

   • Option and prospecting fees

     Option and prospecting fees are depreciated from the commencement of mining on the same basis as mineral rights.

     
     

     Mining development

     Mine development costs incurred to develop new ore bodies and to expand the capacity of the mine are accounted for as follows:

   • Where development is on-reef these costs are expensed.

   • Where development is off-reef these costs are capitalised.

   • Dip conveyors are capitalised.

   • Only the first installation of strike conveyors are capitalised with all further extensions being expensed. Associated underground infrastructure, including dams, sub-stations and compressed air piping are also expensed.

Depreciation is first charged on mine development from the date on which the asset is in the condition necessary for it to operate in a manner intended by management.

Mine development costs are depreciated using the unit-of-production method based on estimated proven and probable platinum ore reserves, unless the useful life of the mine development is less than the life of mine, in which case a straight line method will be applied. Proven and probable reserves reflect estimated quantities of economically recoverable platinum resources which can be recovered in the future from known mineral deposits.

Useful lives and residual values are reassessed annually.

Development costs to maintain production are expensed as incurred against the related production.

5. Significant accounting policies (continued)

1. Mining assets (continued)

   Process plant

   Process plant is depreciated using the unit-of-production method based on estimated proven and probable platinum ore reserves, unless the useful life of the plant is less than the life of mine, in which case a straight line method is applied. Proven and probable reserves reflect estimated quantities of economically recoverable platinum resources which can be recovered in future from known mineral deposits.

   
   

   Useful lives and residual values are reassessed annually.

   
   

   Expenditure on major maintenance refits or repairs comprises the cost of replacement assets or parts of assets and overhaul costs. Where an asset or part of an asset that was separately depreciated and is now written off is replaced and it is probable that future economic benefits associated with the item will flow to the group through an extended life, the expenditure is capitalised. Where part of the asset was not separately considered as a component, the replacement value is used to estimate the carrying amount of the replaced assets that is to be immediately written off. All other day to day maintenance costs are expensed as incurred.

   
   

   Buildings and equipment

   Depreciation is charged to the statement of profit or loss & other comprehensive income on a straight line basis over the estimated useful lives of each part of an item of buildings and equipment. The estimated useful lives range from 3 to 12.5 years.

   
   

   Useful lives and residual values are reassessed annually. Where parts of an item of the mining assets have different useful lives, they are accounted for as separate items of the related mining asset.

   
   

   Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment and are recognised net within the statement of profit or loss & other comprehensive income.

   
   

   Leased assets

   Leases in terms of which the Group assumes substantially all the risks and rewards of ownership are classified as finance leases. Assets acquired by way of finance lease are stated at an amount equal to the lower of its fair value and the present value of the minimum lease payments at inception of the lease, less accumulated depreciation and impairment losses.

   
   

2. Impairment

Non-financial assets

The Group assesses, at each reporting date, whether there is an indication that an asset (or CGU) may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Group estimates the asset's or CGU's recoverable amount. The recoverable amount is the higher of an asset's or CGU's fair value less costs of disposal (FVLCD) and its value in use (VIU). The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets, in which case the asset is tested as part of a larger CGU to which it belongs. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset/CGU is considered impaired and is written down to its recoverable amount. Management has assessed its CGUs as being an individual mine, which is the lowest level for which cash inflows are largely independent of those of other assets.

In calculating VIU, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset/CGU. In determining FVLCD, recent market transactions (where available) are taken into account. If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for publicly traded companies, or other available fair value indicators.

5. Significant accounting policies (continued)

(c) Impairment (continued)

Non-financial assets (continued)

The Group bases its impairment calculation on detailed budgets and forecasts, which are prepared separately for each of the Group's CGUs to which the individual assets are allocated, based on the life-of- mine plans. The estimated cash flows are based on expected future production, metal selling prices, operating costs and forecast capital expenditure, and cash flows beyond five years are based on life-of-mine plans.

VIU does not reflect future cash flows associated with improving or enhancing an asset's performance, whereas anticipated enhancements to assets are included in FVLCD calculations.

Impairment losses of continuing operations, including impairment of inventories, are recognised in the statement of profit or loss & other comprehensive income in those expense categories consistent with the function of the impaired asset.

For assets/CGUs excluding goodwill, an assessment is made at each reporting date to determine whether there is an indication that previously recognised impairment losses may no longer exist or may have decreased. If such indication exists, the Group estimates the asset's or CGU's recoverable amount. A previously recognised impairment loss is reversed only if there has been a change in the assumptions used to determine the asset's/CGU's recoverable amount since the last impairment loss was recognised. The reversal is limited so that the carrying amount of the asset/CGU does not exceed either its recoverable amount, or the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset/CGU in prior years. Such a reversal is recognised in the statement of profit or loss.

Financial assets

Financial assets are assessed at each reporting date to determine whether there is any objective evidence that they are impaired. A financial asset is considered to be impaired if objective evidence as a result of one or more events that has occurred after the initial recognition of the asset (an incurred 'loss event'), indicates that one or more events have had a negative effect on the estimated future cash flows of that asset.

An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows (excluding future expected credit losses that have not yet been incurred) discounted at the original effective interest rate.

The carrying amount of the asset is reduced through the use of an allowance account and the impairment losses are recognised in the statement of profit or loss & other comprehensive income.

Interest income continues to be accrued on the reduced carrying amount based on the original effective interest rate of the asset. The financial asset together with the associated allowance are written off when there is no realistic prospect of future recovery and all collateral has been realised or has been transferred to the Group.

If, in a subsequent year, the amount of the estimated impairment loss increases or decreases because of an event occurring after the impairment was recognised, the previously recognised impairment loss is increased or reduced by adjusting the allowance account. If a previous write-off is later recovered, the recovery is credited to the statement of profit or loss & other comprehensive income.

Individually significant financial assets are tested for impairment on an individual basis. The remaining financial assets are assessed collectively in groups that share similar credit risk characteristics. An impairment loss in respect of an available-for-sale financial asset is calculated by reference to its fair value. Any cumulative loss in respect of an available-for-sale financial asset recognised previously in other comprehensive income is transferred to the statement of profit or loss & other comprehensive income.

5. Significant accounting policies (continued)

1. Impairment (continued)

   Financial assets (continued)

   For available-for-sale financial assets that are debt securities, the reversal is recognised in the statement of profit or loss & other comprehensive income. For available-for-sale financial assets that are equity securities, the reversal is recognised directly in other comprehensive income.

   
   

2. Fair value measurement

   The Group measures derivatives at fair value at each balance sheet date and, for the purposes of impairment testing, uses fair value less costs of disposal to determine the recoverable amount of some of its non- financial assets.

   
   

   Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

   • in the principal market for the asset or liability; or

   • in the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible by the Group.

     The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

     
     

     The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data is available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

     
     

     All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described, as follows, based on the lowest-level input that is significant to the fair value measurement as a whole:

   • Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities

   • Level 2 - Valuation techniques for which the lowest-level input that is significant to the fair value measurement is directly or indirectly observable

   • Level 3 - Valuation techniques for which the lowest-level input that is significant to the fair value measurement is unobservable

     
     

     On an interim basis, management presents the valuation results to the Audit/Risk Committee and the Group's independent auditors. This includes a discussion of the major assumptions used in the valuations.

     
     

     For the purpose of fair value disclosures, the Group has determined classes of assets and liabilities based on the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

     
     

3. Investments and other financial assets

Financial assets are classified as either financial assets at fair value through profit or loss, loans and receivables or available-for-sale financial assets, as appropriate. When financial assets are recognised initially, they are measured at fair value, plus, in the case of investments not at fair value through profit or loss, directly attributable transaction costs. The Group determines the classification of its financial assets after initial recognition and, where allowed and appropriate, re-evaluates this designation at each financial year end.

All regular way purchases and sales of financial assets are recognised at the trade date i.e. the date the Group commits to purchase the asset.

5. Significant accounting policies (continued)

1. Investments and other financial assets (continued)

   Available-for-sale financial assets

   Available-for-sale financial assets are those non-derivative financial assets that are designated as available- for-sale or are not classified as either financial assets at fair value through profit or loss, loans and receivables or held to maturity financial assets. After initial recognition, available-for sale financial assets are measured at fair value with gains or losses being recognised as a separate component of equity until the investment is derecognised or until the investment is determined to be impaired, at which time the cumulative gain or loss previously reported in equity is included in the profit or loss.

   
   

   Loans and receivables

   Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are carried at amortised cost using the effective interest method. Gains and losses are recognised in income when the loans and receivables are derecognised or impaired, as well as through the amortisation process.

   
   

2. Derecognition of financial assets and liabilities

   Financial assets

   A financial asset (or, where applicable a part of a financial asset or part of a group of similar financial assets) is derecognised where:

   • the rights to receive cash flows from the asset have expired;

   • the Group retains the right to receive cash flows from the asset, but has assumed an obligation to pay them in full without material delay to a third party under a 'pass-through' arrangement; or

   • the Group has transferred its rights to receive cash flows from the asset and either (a) has transferred substantially all the risks and rewards of the asset, or (b) has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

     
     

     Where the Group has transferred its rights to receive cash flows from an asset and has neither transferred nor retained substantially all the risks and rewards of the asset nor transferred control of the asset, the asset is recognised to the extent of the Group's continuing involvement in the asset. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Group could be required to repay.

     
     

     Where continuing involvement takes the form of a written and/or purchased option (including a cash-settled option or similar provision) on the transferred asset, the extent of the Group's continuing involvement is the amount of the transferred asset that the Group may repurchase, except that in the case of a written put option (including a cash-settled option or similar provision) on an asset measured at fair value, the extent of the Group's continuing involvement is limited to the lower of the fair value of the transferred asset and the option exercise price.

     
     

     Financial liabilities

     A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires. Where an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognised in profit or loss.

     5. Significant accounting policies (continued)

3. Foreign currencies

   The consolidated financial statements are stated in US Dollars which is the Company's functional and presentation currency. Each entity in the Group determines its own functional currency and items included in each entity are measured using that functional currency.

   
   

   Foreign currency transactions

   Transactions in foreign currencies are recorded in the applicable functional currency at the rate of exchange ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the reporting date. All exchange differences on monetary items are included in determining profit or loss. Non-monetary items are recorded in the applicable functional currency using the exchange rate at the date of the transaction.

   
   

   Translation of financial reports of foreign operations

   The Mimosa Investments Limited Group financial statements incorporating its controlled entities in Zimbabwe, have been prepared using US Dollars as the functional currency. The functional currency of subsidiaries in South Africa is considered to be the South African Rand. The functional currency of subsidiaries in Australia is considered to be the Australian Dollar.

   
   

   The assets and liabilities of these entities are translated to the Group presentation currency at the rate of exchange ruling at the reporting date. Income and expense items are translated at average exchange rates for the period. Any exchange differences are taken directly to the foreign currency translation reserve. On disposal of a foreign entity, cumulative deferred exchange differences are recognised in comprehensive income as part of the profit or loss on sale.

   
   

4. Business combinations

   Business combinations are accounted for using the acquisition method. The acquisition method requires that the acquirer recognises, separately from goodwill, the identifiable assets acquired, the liabilities assumed and any non-controlling interest in the acquiree, at acquisition date. Acquisition costs directly attributable to the acquisition are expensed in the period. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured at fair value at the date of acquisition, irrespective of the extent of any non-controlling interest.

   
   

   For each business combination, the Group has an option to measure any non-controlling interests in the acquiree either at fair value or at the non-controlling interest's proportionate share of the acquiree's identifiable net assets.

   
   

5. Intangible assets

   The cost of intangible assets acquired in a business combination is the fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and any accumulated impairment losses.

   
   

   Intangible assets with finite lives are amortised using the straight line method over the useful life of the contract and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method is reviewed at least each financial year end. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset is accounted for by changing the amortisation period or method, as appropriate, and are treated as changes in accounting estimates.

   5. Significant accounting policies (continued)

6. Revenue recognition

   Revenue is recognised and measured at fair value to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognised:

   Interest

   Revenue is recognised as the interest accrues on interest bearing cash deposits, using the effective interest method.

   Sale of goods

   Revenue on sale of mine products is recognised when risks and rewards of ownership of the mine product has passed to the buyer pursuant to a sales contract.

   
   

   For PGM concentrate sales the sales price is determined on a provisional basis at the date of delivery. Adjustments to the sale price occur based on movements in the metal market price up to the date of final pricing. Final pricing is based on the monthly average market price in the month of settlement. The period between provisional invoicing and final pricing is typically between 2 and 4 months. Revenue on provisionally priced sales is initially recorded at the estimated fair value of the consideration receivable. The revenue adjustment mechanism embedded within provisionally priced sales arrangements has the characteristics of a commodity derivative. Accordingly, the fair value of the final sales price adjustment is re-estimated continuously and changes in fair value recognised as an adjustment to revenue in the statement of profit or loss & other comprehensive income and trade debtors in the statement of financial position. In all cases, fair value is determined with reference to estimated forward prices using consensus forecasts.

   
   

   Dividends

   Revenue is recognised when the Group's right to receive the payment is established.

   
   

7. Income taxes

   Current tax

   Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the reporting date.

   
   

   Deferred tax

   Deferred income tax is provided using the liability method on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.

   Deferred tax liabilities are recognised for all taxable temporary differences, except:

   • where the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and

   • in respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

     Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry-forward of unused tax credits and unused tax losses can be utilised except:

   • where the deferred income tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and

   • in respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, deferred tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilised.

5. Significant accounting policies (continued)

1. Income taxes (continued)

   Deferred tax (continued)

   The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised. Unrecognised deferred income tax assets are reassessed at each reporting date and are recognised to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

   
   

   Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

   
   

   Income tax relating to items recognised directly in equity is recognised in equity and not in the profit or loss.

   
   

   Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities, and the deferred taxes relate to the same taxable entity and the same taxation authority.

   
   

2. Employee entitlements

   Provision is made for employee entitlement benefits accumulated as a result of employees rendering services up to the reporting date. Liabilities arising in respect of wages and salaries, annual leave and other benefits due to be settled within twelve months of the reporting date are measured at rates which are expected to be paid when the liability is settled.

   
   

   All other employee entitlement liabilities are measured at the present value of estimated payments to be made in respect of services rendered up to reporting date.

   
   

   Contributions for pensions and other post employment benefits to defined contribution plans are recognised in comprehensive income as incurred during the period in which employees render the related service.

   
   

3. Interest bearing loans and borrowings

   Loans and borrowings other than financial instruments issued by the Group are initially recognised at the fair value of the consideration received less directly attributable transaction costs. After initial recognition, all interest bearing loans and borrowings, other than liabilities held for trading, are subsequently measured at amortised cost using the effective interest method.

   
   

   The convertible bond has two elements: a liability component (a host debt contract) and an equity element (an embedded option entitling the bond holder to convert the liability into common shares in the Company). The liability element is initially recognised at fair value and is subsequently carried at amortised cost whereby the initial carrying value of the debt is accreted to the principal amount over the life of the bond. This accretion is recognised as a finance cost together with coupon payments. The balance of the bond proceeds is allocated to the equity component.

   
   

4. Borrowing costs

   Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset (i.e. an asset that necessarily takes a substantial period of time to get ready for its intended use or sale) are capitalised as part of the cost of that asset. All other borrowing costs are expensed in the period they occur.

   
   

5. Trade and other payables

   Liabilities for trade and other payables, whether billed or not billed to the Group, which are normally settled on 30-90 day terms, are carried at amortised cost.

   5. Significant accounting policies (continued)

6. Provisions

   Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Where the Group expects some or all of a provision to be reimbursed, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the statement of profit or loss & other comprehensive income net of any reimbursement. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognised as a borrowing cost.

   
   

7. Cash

   Cash and cash equivalents include cash on hand and in banks, and deposits at call which have an original maturity of three months or less. For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts.

   
   

8. Inventories

   Inventories comprise consumables, reagents, produce, packaging, chromite, reef ore stockpiled and concentrate awaiting further processing and are valued at the lower of cost and net realisable value. Cost is determined on the weighted average method and includes direct mining expenditure and an appropriate proportion of overhead expenditure.

   
   

9. Trade and other receivables

   Trade receivables include actual invoiced sales of PGM concentrate as well as sales not yet invoiced for which deliveries have been made and the risks and rewards of ownership have passed. The receivable amount calculated for the PGM concentrate delivered but not yet invoiced is recorded at the fair value of the consideration receivable at the date of delivery. At each subsequent reporting date the receivable is restated to reflect the fair value movements in the pricing mechanism which is considered to represent an embedded derivative. Foreign exchange movements subsequent to the recognition of a sale are recognised as a foreign exchange gain or loss in the statement of profit or loss & other comprehensive income.

   
   

   Other receivables are stated at cost less any allowance for uncollectible amounts. An allowance is made when there is objective evidence that the Group will not be able to collect the debts. Bad debts are written off when identified.

   
   

10. Provision for mine site rehabilitation

The provision for rehabilitation represents the cost of restoring site damage following initial disturbance. Increases in the provision are capitalised to deferred mining assets to the extent that it meets the definition of dismantling and removing the item and restoring the site on which it is located under IAS 16. Costs incurred that relate to an existing condition caused by past operations and do not have a future economic benefit are expensed.

Gross rehabilitation costs are estimated at the present value of the expenditures expected to settle the obligation, using estimated cash flows based on current prices. The estimates are discounted at a pre-tax rate that reflects current market assessments of the time value of money and where appropriate the risk specific to the liability. The unwinding of the discount is recorded as an accretion charge within finance costs.

Rehabilitation costs capitalised to mining assets are amortised over the operating life of each mine using the units of production method based on estimated proven and probable mineral reserves. Expenditure on ongoing rehabilitation costs is brought to account when incurred.

5. Significant accounting policies (continued)

1. Provision for mine site rehabilitation (continued)

   In South Africa, annual contributions are made to an Environmental Rehabilitation Trust Fund, created in accordance with South African Statutory requirements, to fund the estimated cost of rehabilitation during and at the end of the life of a mine. The funds that have been paid into the trust fund plus the growth in the trust fund are shown as an asset in the statement of financial position.

   
   

2. Share capital

   Share capital is recognised at the fair value of the consideration received by the Company. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction from the proceeds.

   
   

3. Treasury shares

   Treasury shares are deducted from equity and no gain or loss is recognised in profit or loss on purchase, sale, issue or cancellation of the Group's own equity instruments.

   
   

4. Leases

   The determination of whether an arrangement is, or contains a lease, is based on the substance of the arrangement at inception date.

   
   

   Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are classified as operating leases. Operating lease payments are recognised as an expense in the statement of profit or loss

   & other comprehensive income on a straight-line basis over the lease term.

   
   

   Finance leases, which transfer to the Group substantially all the risks and benefits incidental to ownership of the leased item, are capitalised at the inception of the lease at the fair value of the leased property or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged directly against income.

   
   

5. Interests in joint operations

   A joint operation is a joint arrangement in which the parties that share joint control have rights to the assets, and obligations for the liabilities, relating to the arrangement.

   
   

   In relation to the Group's interests in joint operations, the following are recognised in the financial statements:

6. the Group's share of the jointly controlled assets, classified according to the nature of the assets;

7. any liabilities that the Group has incurred;

8. the Group's share of any liabilities incurred jointly with the other venturers in relation to the joint operation;

9. any income from the sale or use of the Group's share of the output of the joint operation, together with the Group's share of any expenses incurred by the joint operation; and

10. any expenses that the Group has incurred in respect of its interest in the joint operation.

    
    

11. Investments in joint ventures

A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control. The considerations made in determining joint control are similar to those necessary to determine control over subsidiaries.

5. Significant accounting policies (continued)

1. Investments in joint ventures (continued)

   The Group's investments in joint ventures are accounted for using the equity method. Under the equity method, the investment in a joint venture is initially recognised at cost. The carrying amount of the investment is adjusted to recognise changes in the Group's share of net assets of the joint venture since the acquisition date. Goodwill relating to the joint venture is included in the carrying amount of the investment and is neither amortised nor individually tested for impairment.

   
   

   The statement of profit or loss & other comprehensive income reflects the Group's share of the results of operations of the joint venture. Any change in Other Comprehensive Income (OCI) of those investees is presented as part of the Group's OCI. In addition, when there has been a change recognised directly in the equity of the joint venture, the Group recognises its share of any changes, when applicable, in the statement of changes in equity. Unrealised gains and losses resulting from transactions between the Group and the joint venture are eliminated to the extent of the interest in the joint venture.

   
   

   The aggregate of the Group's share of profit or loss of a joint venture is shown on the face of the statement of profit or loss & other comprehensive income and represents profit or loss after tax.

   
   

   The financial statements of the joint venture are prepared for the same reporting period as the Group. When necessary, adjustments are made to bring the accounting policies in line with those of the Group.

   
   

   After application of the equity method, the Group determines whether it is necessary to recognise an impairment loss on the investment in its joint venture. At each reporting date, the Group determines whether there is objective evidence that the investment in the joint venture is impaired. If there is such evidence, the Group calculates the amount of impairment as the difference between the recoverable amount of the joint venture and its carrying value, then recognises the loss in 'Share of profit/(loss) from joint venture entities' in the statement of profit or loss & other comprehensive income.

   
   

   Upon loss of joint control over the joint venture, the Group measures and recognises any retained investment at its fair value. Any difference between the carrying amount of the joint venture upon loss of joint control and the fair value of the retained investment and proceeds from disposal is recognised in profit or loss.

   
   

2. Share-based payment transactions

Employees (including senior executives) of the Group receive remuneration in the form of equity based payment transactions, whereby employees render services as consideration for equity instruments ('equity- settled transactions').




The Group currently has a share plan for employees. Loans made under the share plan are treated as share- based compensation under IFRS 2.




Equity-settled transactions

The cost of equity-settled transactions with employees is measured by reference to the fair value at the date on which they are granted. The fair value is determined using a binomial or Black & Scholes pricing model. In valuing equity-settled transactions, no account is taken of any performance conditions, other than conditions linked to the price of the shares of the Company, if applicable.




The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the period in which the performance and/or service conditions are fulfilled, ending on the date on which the relevant employees become fully entitled to the award ('the vesting date'). The cumulative expense recognised for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Group's best estimate of the number of equity instruments that will ultimately vest. The charge or credit for a period represents the movement in cumulative expense recognised as at the beginning and end of that period.

5. Significant accounting policies (continued)

1. Share-based payment transactions (continued)

   Equity-settled transactions (continued)

   No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional upon a market condition, which are treated as vesting irrespective of whether or not the market condition is satisfied, provided that all other performance conditions are satisfied.

   
   

   Where the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the terms had not been modified. In addition, an expense is recognised for any modification which increases the total fair value of the share-based payment arrangement, or is otherwise beneficial to the employee as measured at the date of modification.

   
   

   Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any expense not yet recognised for the award is recognised immediately. However, if a new award is substituted for the cancelled award, and designated as a replacement award on the date that it is granted, the cancelled and new awards are treated as if they were a modification of the original award, as described in the previous paragraph.

   
   

   The dilutive effect of outstanding options is reflected as additional share dilution in the computation of earnings per share.

   
   

   Shares in the Group acquired on market and held by the Share Plan are shown as a deduction from equity.

   
   

   (aa) Earnings per share

   Basic earnings per share

   Basic earnings per share is calculated by dividing the profit attributable to equity holders of the parent, excluding any costs of servicing equity other than dividends, by the weighted average number of ordinary shares, adjusted for any bonus elements.

   
   

   Diluted earnings per share

   Diluted earnings per share is calculated as net profit attributable to equity holders of the parent, adjusted for:

   • costs of servicing equity (other than dividends);

   • the after tax effect of dividends and interest associated with dilutive potential ordinary shares that have been recognised as expenses; and

   • other non-discretionary changes in revenues or expenses during the period that would result from the dilution of potential ordinary shares;

divided by the weighted average number of ordinary shares and dilutive potential ordinary shares, adjusted for any bonus elements.




(bb) Dividends

Provision is made for the amount of any dividend declared on or before the end of the financial year but not distributed at reporting date.




(cc) Comparative amounts

Where appropriate, comparative amounts have been reclassified to be consistent with the current year's presentation.

5. Significant accounting policies (continued)

(dd) Standards issued but not yet effective

Standards issued but not yet effective up to the date of issuance of the Group's financial statements are listed below. This listing of standards and interpretations issued are those that the Group reasonably expects to have an impact on disclosures, financial position or performance when applied at a future date. Unless stated otherwise below, the impact of these new or amended standards has yet to be fully assessed. The Group intends to adopt these standards when they become effective.




Reference	Title	Summary	Application date of standard	Application date for Group
IFRS 5, IAS 19 and IAS 34	Amendments to Accounting Standards - Annual Improvements	This standard provides clarification amendments to IFRS 5, IAS 19 and IAS 34.	1 January 2016	1 July 2016
IFRS 10 and IAS 28	Sale or Contribution of Assets between an Investor and its Associate or Joint Venture - Amendments to IFRS 10 and IAS 28	The amendment of IFRS 10 Consolidated Financial Statements and IAS 28 is to address an inconsistency between the requirements in IFRS 10 and those in IAS 28, in dealing with the sale or contribution of assets between an investor and its associate or joint venture. The amendments require: a full gain or loss to be recognised when a transaction involves a business (whether it is housed in a subsidiary or not); and a partial gain or loss to be recognised when a transaction involves assets that do not constitute a business, even if these assets are housed in a subsidiary.	1 January 2016	1 July 2016
IFRS 11	IFRS 11 Accounting for Acquisitions of Interests in Joint Operations - Amendments to IFRS 11	The amendment of IFRS 11 Joint Arrangements to provide guidance on the accounting for acquisitions of interests in joint operations in which the activity constitutes a business. The amendments require: the acquirer of an interest in a joint operation in which the activity constitutes a business, as defined in IFRS 3 Business Combinations, to apply all of the principles on business combinations accounting in IFRS 3 except for those principles that conflict with the guidance in IFRS 11; and the acquirer to disclose the information required by IFRS 3 for business combinations.	1 January 2016	1 July 2016

5. Significant accounting policies (continued)

(dd) Standards issued but not yet effective (continued)




Reference	Title	Summary	Application date of standard	Application date for Group
IAS 1	Amendments to Accounting Standards - Disclosure Initiative: Amendments to IAS 1	The Standard makes amendments to IAS 1 Presentation of Financial Statements arising from the IASB's Disclosure Initiative project. The amendments are designed to further encourage companies to apply professional judgment in determining what information to disclose in the financial statements. For example, the amendments make clear that materiality applies to the whole of financial statements and that the inclusion of immaterial information can inhibit the usefulness of financial disclosures. The amendments also clarify that companies should use professional judgment in determining where and in what order information is presented in the financial disclosures.	1 January 2016	1 July 2016
IAS 16 and IAS 38	Clarification of Acceptable Methods of Depreciation and Amortisation (Amendments to IAS 16 and IAS 38)	IAS 16 and IAS 38 both establish the principle for the basis of depreciation and amortisation as being the expected pattern of consumption of the future economic benefits of an asset. The IASB has clarified that the use of revenue- based methods to calculate the depreciation of an asset is not appropriate because revenue generated by an activity that includes the use of an asset generally reflects factors other than the consumption of the economic benefits embodied in the asset. The IASB also clarified that revenue is generally presumed to be an inappropriate basis for measuring the consumption of the economic benefits embodied in an intangible asset. This presumption, however, can be rebutted in certain limited circumstances.	1 January 2016	1 July 2016
IAS 27	Amendments to Accounting Standards - Equity Method in Separate Financial Statements	This amends IAS 27 Separate Financial Statements, and consequentially amends IFRS 1 First-time Adoption of International Financial Reporting Standards and IAS 28 Investments in Associates and Joint Ventures, to allow entities to use the equity method of accounting for investments in subsidiaries, joint ventures and associates in their separate financial statements.	1 January 2016	1 July 2016

5. Significant accounting policies (continued)

(dd) Standards issued but not yet effective (continued)




Reference	Title	Summary	Application date of standard	Application date for Group
IFRS 15	Revenue from Contracts with Customers	IFRS15 Revenue from Contracts with Customers replaces the existing revenue recognition standards IAS 11 Construction Contracts, IAS 18 Revenue and related Interpretations (IFRIC 13 Customer Loyalty Programmes, IFRIC 15 Agreements for the Construction of Real Estate, IFRIC 18 Transfers of Assets from Customers and SIC-31 Revenue-Barter Transactions Involving Advertising Services). The core principle of IFRS 15 is that an entity recognises revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. An entity recognises revenue in accordance with that core principle by applying the following steps: Step 1: Identify the contract(s) with a customer Step 2: Identify the performance obligations in the contract Step 3: Determine the transaction price Step 4: Allocate the transaction price to the performance obligations in the contract Step 5: Recognise revenue when (or as) the entity satisfies a performance obligation	1 January 2018	1 July 2018
IFRS 9	Financial Instruments	IFRS 9 is a new standard which replaces IAS 39. This new version includes a model for classification and measurement, a single, forward-looking 'expected loss' impairment model and a substantially-reformed approach to hedge accounting. IFRS 9 is effective for annual periods beginning on or after 1 January 2018. However, the Standard is available for early application. The own credit changes can be early adopted in isolation without otherwise changing the accounting for financial instruments. Classification and measurement IFRS 9 includes requirements for a simpler approach for classification and measurement of financial assets compared with the requirements of IAS 39. There are also some changes made in relation to financial liabilities. The main changes are described below. Financial assets a. Financial assets that are debt instruments will be classified based on (1) the objective of the entity's business model for managing the financial assets; (2) the characteristics of the contractual cash flows.	1 January 2018	1 July 2018

1. Significant accounting policies (continued)

   (dd) Standards issued but not yet effective (continued)

   
   

   Reference	Title	Summary	Application date of standard	Application date for Group
   Financial liabilities Changes introduced by IFRS 9 in respect of financial liabilities are limited to the measurement of liabilities designated at fair value through profit or loss (FVPL) using the fair value option. Where the fair value option is used for financial liabilities, the change in fair value is to be accounted for as follows: IFRS 9 also removes the volatility in profit or loss that was caused by changes in the credit risk of liabilities elected to be measured at fair value. This change in accounting means that gains or losses attributable to changes in the entity's own credit risk would be recognised in OCI. These amounts recognised in OCI are not recycled to profit or loss if the liability is ever repurchased at a discount. Impairment IFRS 9 introduces a new expected-loss impairment model that will require more timely recognition of expected credit losses. Specifically, the new Standard requires entities to account for expected credit losses from when financial instruments are first recognised and to recognise full lifetime expected losses on a more timely basis. Hedge accounting Amendments to IFRS 9 included the new hedge accounting requirements, including changes to hedge effectiveness testing, treatment of hedging costs, risk components that can be hedged and disclosures. The transition to IFRS 9 differs by requirements and is partly retrospective and partly prospective. Despite the requirement to apply IFRS 9 in its entirety, entities may elect to early apply only the requirements for the presentation of gains and losses on financial liabilities designated as FVPL without applying the other requirements in the standard.

2. Allows an irrevocable election on initial recognition to present gains and losses on investments in equity instruments that are not held for trading in other comprehensive income. Dividends in respect of these investments that are a return on investment can be recognised in profit or loss and there is no impairment or recycling on disposal of the instrument.

3. Financial assets can be designated and measured at fair value through profit or loss at initial recognition if doing so eliminates or significantly reduces a measurement or recognition inconsistency that would arise from measuring assets or liabilities, or recognising the gains and losses on them, on different bases.

• The change attributable to changes in credit risk are presented in other comprehensive income (OCI)

• The remaining change is presented in profit or loss

4. Operating segments

1. Identification of reportable segments

   The Group has identified its operating segments based on the internal reports that are reviewed and used by the executive management team in assessing performance and in determining the allocation of resources. Each individual mine and tailings retreatment operation is treated as a separate operating unit for internal reporting purposes. Discrete financial information about each of these operating units is reported to the executive management team on a monthly basis. The Corporate operating unit holds assets and liabilities not specifically related to a single operating unit.

   
   

   The operations of Kroondal, Marikana, Everest and Mimosa mine, process and sell concentrate containing platinum group metals. The operations of CTRP and Platinum Mile operate as tailings retreatment facilities from which they produce and sell a concentrate containing platinum group metals. Marikana, Blue Ridge and CTRP were on care and maintenance through-out the whole year. Part A of the Everest sale agreement was finalised during the year resulting in all of the Everest net assets, other than those relating to the mining licence, being sold.

   
   

   The majority of sales of concentrate are to two specific South African based customers being Impala Platinum Holdings Limited and Rustenburg Platinum Mines Limited. The operations of Kroondal, Marikana, Everest, Blue Ridge, CTRP and Platinum Mile are based in South Africa. The operations of Mimosa are based in Zimbabwe. Repatriation of funds from South Africa and Zimbabwe are subject to regulatory approval in the respective countries.

   
   

2. Accounting policies and inter-segment transactions

   The accounting policies used by the Group in reporting segments internally are the same as those contained in Note 5 to the accounts.

   
   

   Corporate/unallocated comprises non-segmental revenue and expenses such as head office expenses and interest income/expense. Corporate charges are not allocated to operating segments. Similarly, corporate assets and liabilities, including financial assets and liabilities, are not allocated to the segments, such that there is symmetrical treatment between the segment results and segment assets and liabilities.

   
   

3. Zimbabwe operations

15% export levy on un-beneficiated PGM's

In the 2015 National Budget Statement, the deferment of the 15% export levy on un-beneficiated platinum to January 2017 was proposed. However, the Finance Act (No 3) of 2014 which gives legal effect to the budget proposals did not include the deferment of the 15% tax on un-beneficiated PGMs. This effectively meant that the tax was not deferred and hence the 15% export levy on un-beneficiated PGMs became law effective 1 January 2015. The Company continues to engage the authorities in consultation with the Chamber of Mines to have the levy deferred. In the absence of the formal deferment in law, and having considered the above the Directors believe it is prudent to provide for the impact of this levy. Accordingly an attributable amount of $4.5 million has been accrued for the financial year ended June 2015. Aquarius and Mimosa are confident that the matter will be resolved and remain committed to building good working relations with the Government of Zimbabwe. Furthermore Mimosa, together with the other Platinum producers in Zimbabwe, are currently in the process of assessing the viability of a number of in-country smelting and beneficiation alternatives. The outcome of these assessments will be communicated to all relevant stakeholders in due course.




Royalties

The proposal to render royalties payable by Mimosa non-deductible for income tax purposes was implemented with effect from the year of assessment beginning on 1 January 2014, and therefore impacted Mimosa from the start of the 2014 financial year on 1 July 2013. This position has remained in the 2015 national budget. The financial impact of the non-deductibility of royalties was $4.2 million for the financial year to June 2014 and $4.7 million for the financial year ended June 2015, 50% of which is attributable to Aquarius. Negotiations are continuing with the authorities to confirm that the royalties are deductible for income tax purposes.

6. Operating segments (continued)

(c) Zimbabwe operations (continued)

Indigenisation

Mimosa continues to interact with the Ministry of Indigenisation and Ministry of Mines to work towards a sustainable solution in relation to indigenisation, but in the period under review no agreements or definitive terms were agreed between Mimosa and the Ministry of Indigenisation. As a result, the matter is ongoing and management is unable to estimate the financial impact of the proposed transaction.







6. Operating segments (continued)




30 June 2015 Revenue Cost of sales mining, processing and administration depreciation and amortisation Gross profit/(loss) Other income Administrative costs Foreign exchange gain/(loss) Finance costs Impairment losses Profit/(loss) on sale of assets Foreign currency translation reserve recycled on disposal BEE partner guarantee Discounting of RBZ receivable Community share ownership trust Share of loss from joint venture entities Profit/(loss) before income tax Income tax (expense)/benefit Net profit/(loss) from ordinary activities Segment assets Capital expenditure Segment liabilities	Kroondal $'000	Marikana $'000	Everest $'000	Mimosa $'000	Platinum Mile $'000	CTRP $'000	Blue Ridge $'000	Corporate/ Unallocated $'000	Segment Result $'000	Reconciliation to Consolidated Information * $'000	Consolidated $'000
	198,424 (177,679) (19,527)	224 (926) (126)	480 (2,352) (43)	136,621 (93,189) (16,586)	8,077 (7,279) (2,663)	70 (22) (192)	35 (793) -	5,633 (1) (7)	349,564 (282,241) (39,144)	(136,656) 93,983 16,586	212,908 (188,258) (22,558)
	1,218 - - 9,174 - - - - - - - -	(828) - - - - - - - - - - -	(1,915) - - - - - 1,756 - - - - -	26,846 201 - (90) - - (337) - - (28,537) (3,000) -	(1,865) - - 324 - (27,954) - - - - - -	(144) - - - - - - - - - - -	(758) 15 - - - (1,695) - - - - - -	5,625 173 (6,307) (8,049) (19,136) (19,389) 18,755 (13,262) (2,093) - - -	28,179 389 (6,307) 1,359 (19,136) (49,038) 20,174 (13,262) (2,093) (28,537) (3,000) -	(26,087) (216) 77 213 3,699 19,593 337 - - 28,537 3,000 (48,298)	2,092 173 (6,230) 1,572 (15,437) (29,445) 20,511 (13,262) (2,093) - - (48,298)
	10,392 -	(828) -	(159) -	(4,917) -	(29,495) -	(144) -	(2,438) -	(43,683) (26,805)	(71,272) (26,805)	(19,145) 19,145	(90,417) (7,660)
	10,392	(828)	(159)	(4,917)	(29,495)	(144)	(2,438)	(70,488)	(98,077)	-	(98,077)
	220,078 23,559 35,599	45,144 - 54,584	2,355 - 3,426	211,057 15,031 60,448	30,269 129 8,711	439 - 1	29,624 - 29,624	144,651 - 133,751	683,617 38,719 326,144	(89,552) (15,031) (89,552)	594,065 23,688 236,592




* The segment information provided reflects the financial information used by the chief operating decision maker in assessing the performance of each operating segment. For the Mimosa and Blue Ridge operating segments the chief operating decision maker is provided with the detailed revenue, expenditure, asset and liability financial information. In the consolidated financial statements these operating segments are accounted for using the equity method. This differs from the measures used by the chief operating decision maker. The column titled 'Reconciliation to Consolidated Information' provides a reconciliation of this segment information to the consolidated financial information.







1. Operating segments (continued)

   
   

   30 June 2014 Revenue Cost of sales Other income Administrative costs Foreign exchange gain/(loss) Finance costs Impairment losses Profit on repurchase of bonds Profit on sale of assets Rehabilitation (reversal)/costs Community share ownership trust Indigenisation costs Share of profit from joint venture entities Profit/(loss) before income tax Income tax (expense)/benefit Net profit/(loss) from ordinary activities Segment assets Capital expenditure Segment liabilities	Kroondal $'000	Marikana $'000	Everest $'000	Mimosa $'000	Platinum Mile $'000	CTRP $'000	Blue Ridge $'000	Corporate/ Unallocated $'000	Segment Result $'000	Reconciliation to Consolidated Information * $'000	Consolidated $'000
   	222,147 (189,330) (24,048)	675 (2,140) (424)	749 (5,527) (1,789)	130,512 (95,726) (13,106)	5,166 (5,009) (2,521)	95 (31) (212)	37 (958) (12)	4,224 (222) (6)	363,605 (298,943) (42,118)	(130,549) 96,785 13,118	233,056 (202,158) (29,000)
   	8,769 - - 3,577 - - - - (2,726) - - -	(1,889) - - - - - - - 8,767 - - -	(6,567) - - (2) - - - - (699) - - -	21,680 200 - (159) - - - - - (500) (1,959) -	(2,364) - - 139 - - - - - - - -	(148) - - - - - - - - - - -	(933) 24 - - - - - - - - - -	3,996 174 (7,397) (1,871) (31,891) (3,084) 10,925 653 - - - -	22,544 398 (7,397) 1,684 (31,891) (3,084) 10,925 653 5,342 (500) (1,959) -	(20,646) (224) 44 159 3,800 - - - - 500 1,959 5,055	1,898 174 (7,353) 1,843 (28,091) (3,084) 10,925 653 5,342 - - 5,055
   	9,620 -	6,878 -	(7,268) -	19,262 -	(2,225) -	(148) -	(909) -	(28,495) (9,897)	(3,285) (9,897)	(9,353) 9,353	(12,638) (544)
   	9,620	6,878	(7,268)	19,262	(2,225)	(148)	(909)	(38,392)	(13,182)	-	(13,182)
   	214,742 25,601 39,093	53,115 48 58,636	36,071 - 5,958	244,645 16,806 49,633	67,925 1,546 18,373	735 - 1	28,312 - 31,282	152,850 - 121,651	798,395 44,001 324,627	(80,920) (16,806) (80,920)	717,475 27,195 243,707

   • mining, processing and administration

   • depreciation and amortisation Gross profit/(loss)

   
   

   * The segment information provided reflects the financial information used by the chief operating decision maker in assessing the performance of each operating segment. For the Mimosa and Blue Ridge operating segments the chief operating decision maker is provided with the detailed revenue, expenditure, asset and liability financial information. In the consolidated financial statements these operating segments are accounted for using the equity method. This differs from the measures used by the chief operating decision maker. The column titled 'Reconciliation to Consolidated Information' provides a reconciliation of this segment information to the consolidated financial information.

   
   

   2015 2014 $'000 $'000
   6. Operating segments (continued)
   Geographical information Revenue South Africa	207,310 228,869
   Zimbabwe	136,621 130,512
   Corporate/Unallocated	5,633 4,224
   Total revenue per operating segment note	349,564 363,605
   The two most significant customers represented 57% (2014: 61%) (Rustenburg Platinum Mines Limited) and 39% (2014: 36%) (Centametall AG) of the Group's total segment revenue.
   Non-current assets South Africa	227,698 329,263
   Zimbabwe	155,959 190,123
   Corporate/Unallocated	9,096 39,868
   Total non-current assets per operating segment note	392,753 559,254
   7. Revenue and expenses
   Revenue Sale of mine products	217,157 225,335
   PGM price adjustments *	(11,640) 2,045
   Interest income	7,391 5,676
   212,908 233,056
   * This represents the impact of PGM price movements on sales.
   Cost of sales Depreciation and amortisation	22,558 29,000
   Other costs of production	187,938 201,814
   Royalties	320 344
   210,816 231,158
   Other income Other	173 174
   173 174
   Administrative costs Advertising and promotion	112 151
   Consulting fees	1,164 1,286
   Directors' fees	627 811
   Insurance	76 93
   Legal fees	353 175
   Rental on operating leases	231 263
   Share-based payments	1,605 1,807
   Stock exchange and registry management	333 357
   Travel	426 372
   Wages, salaries and employee benefits	781 1,477
   Other	522 561
   6,230 7,353

   
   

2. Revenue and expenses (continued)

   2015 2014

   $'000 $'000

   
   

   Finance costs

   Interest on borrowings 5,638 12,019

   Accretion of interest on convertible bond 4,684 10,016

   Accretion of mine-site rehabilitation liability 4,691 5,112 Amortisation of borrowing costs 424 944

   15,437 28,091

   
   

   Profit on sale of assets

   Profit on sale of Kruidfontein prospecting rights (a) 18,763 -

   Profit on sale of Everest (b) 1,756 -

   Other (8) 653

   20,511 653

   
   

3. Cash proceeds from sale of Kruidfontein * 26,811 -

   Shares issued on Kruidfontein settlement (8,020) - Carrying amount of Kruidfontein (28) -

   18,763 -

   
   

4. Cash proceeds from sale of Everest 32,783 - Mining assets sold (27,225) -

Inventory sold (3,802) -

1,756 -




Rehabilitation cost reversal

Rehabilitation cost reversal - (5,342)

- (5,342)

During the 2014 financial year the methodology of performing rehabilitation work was reassessed resulting in a downward revision to the rehabilitation provision.




Staff costs included in the statement of profit or loss & other comprehensive income

Salaries and wages 65,732 60,763

Share-based payments 1,605 1,807

Superannuation 7,030 7,381

74,367 69,951




Depreciation and amortisation included in the statement of profit or loss & other comprehensive income

Depreciation of mining assets 21,102 27,398

Amortisation of intangible asset 1,456 1,602

22,558 29,000




7. Revenue and expenses (continued)	2015 $'000	2014 $'000
Impairment losses Class of asset: Mining assets	446	1,792
Intangible asset	27,954	-

Investments in joint venture entities 1,045 1,292

29,445 3,084

The majority of the impairment charge during the current year arises from intangible assets within the Platinum Mile business of $28 million. Further detail on Platinum Mile is set out in Note 6. The recoverable amount of $20 million was determined on a value in use basis using consensus metal prices, a discount rate of 10.8% and internal modelling. The trigger for the impairment was the continuing low PGM price environment combined with a reassessment of plant feed sources.




Impairment assessment of non-current assets

In accordance with the Group's accounting policies, non-current assets are reviewed at each reporting period to determine whether there is an indication of impairment. Where an indicator of impairment exists an estimate of the recoverable amount is made.




The continued low PGM price environment is considered an indicator of impairment. Accordingly, the Group has carried out recoverable amount assessments for all of its cash generating units (CGUs). The most significant impairment charge that resulted was to that of the Platinum Mile CGU, as set out above.




Although no impairment charge arose from the recoverable amount assessments of the Kroondal/Marikana and Mimosa CGUs, the carrying amounts of these CGUs contribute significantly to the Group's asset carrying amounts. The investment in Mimosa, a joint venture entity, is carried at $151 million and the net assets of the Group's interest in Kroondal/Marikana is carried at $107 million. Accordingly the results of the Group and the carrying amounts of non-current assets is most sensitive to the recoverable amount assessments of the Kroondal/Marikana and Mimosa CGUs.




The recovery of the carrying amounts of CGUs is dependent on a number of factors including PGM prices, discount rates used in determining discounted cash flows and foreign exchange rates for those CGUs with a South African Rand (ZAR) functional currency. The Kroondal/Marikana CGU has a ZAR functional currency. The Mimosa CGU has a USD functional currency.




Impairment is recognised when the carrying amount of the CGU exceeds its recoverable amount. The recoverable amount of the Kroondal/Marikana and Mimosa CGUs has been determined by their fair value less cost to dispose (fair value).




Fair value is estimated based on discounted cash flows using consensus PGM and foreign exchange rate assumptions, estimated quantities of recoverable metals, production levels, operating and capital cost estimates based on the CGUs life-of-mine plans (LOM). The fair value methodology adopted is categorised as Level 3 in the fair value hierarchy.




Estimates of quantities of recoverable metals, production levels and operating and capital costs are sourced from the Group's planning process documents, including the LOM plans. An independent consultant advises on consensus PGM price estimates.




Significant judgments and assumptions are required in making estimates of fair value. This is particularly so in the assessment of long life assets, such as the Kroondal/Marikana and Mimosa CGUs. CGU valuations are subject to variability in the key assumptions stated above. An adverse change in one or more of these assumptions could result in a reduction in the CGU's fair value.

1. Revenue and expenses (continued)

   Impairment assessment of non-current assets (continued)

   Key assumptions

   The key assumptions used in the 30 June 2015 fair value assessments of the Kroondal/Marikana and Mimosa CGUs are as follows:

   
   

   Kroondal/Marikana	Mimosa
   PGM basket price (average over life of mine)	$1,384	$1,413
   Discount rate (post tax)	10.65%	16.10%
   ZAR:USD exchange rate range (average over life of mine)	11.26	N/A

   
   

   Sensitivity analysis

   Any change in the key assumptions used to determine the fair value would result in a change in the assessed fair value. If the variation in assumption has a negative impact on fair value it may result in the impairment of assets. It is estimated that changes in the key assumptions would have the following approximate impact on the excess of the recoverable amount over the carrying value of the Kroondal/Marikana and Mimosa CGUs:

   
   

   Kroondal/Marikana Change in recoverable amount $'000	Mimosa Change in recoverable amount $'000
   10% increase in PGM basket price	117,849	83,649
   10% decrease in PGM basket price	(119,778)	(83,649)
   200 basis point decrease in discount rate	34,731	43,911
   200 basis point increase in discount rate	(28,455)	(35,750)
   10% weakening of ZAR against USD	90,966	N/A
   10% strengthening of ZAR against USD	(113,383)	N/A

   
   

   The Platinum Mile CGU was impaired during the current financial year. Any change in the assumptions used in determining the recoverable amount will impact the amount of that impairment. Due to the smaller size of the Platinum Mile operations, the impact of changing assumptions is less significant than those above - a $100 increase in the basket metal price results in a $4.5 million increase in the recoverable amount. Accordingly detailed disclosures have not been provided for the Platinum Mile CGU.

   
   

   The amounts above assume the sensitivities move in isolation, whilst the other assumptions remain constant. Historic experience of AQPSA is that USD denominated metal price movements are often largely offset by exchange rate movements.

   
   

   To the extent that CGU carrying amounts are determined not to be recoverable in the future, this will reduce profits and net assets in the period in which this determination is made.

   
   

   8. Income tax	2015 $'000	2014 $'000
   Major components of tax expense for the year Income statement: Current income tax	3,207	579
   Deferred tax - origination and reversal of temporary differences	3,936	(576)

   Royalties 517 541

   Income tax expense 7,660 544

   As a Bermudian corporation, Aquarius has no tax liability under that jurisdiction with respect to income derived. Certain of its foreign derived income is subject to applicable tax in the countries from which such income is derived.

   Amounts charged or credited directly to equity - -

   
   

2. Income tax (continued)

A reconciliation of income tax expense applicable to loss from operating activities before income tax at the statutory income tax rate to income tax expense at the Group's effective income tax rate at year end is as follows:

2015 2014

$'000 $'000




Loss from ordinary activities before income tax (90,417) (12,638) Less: Share of loss/(profit) from joint venture entities 48,298 (5,055) Parent company and subsidiaries' loss before income tax (42,119) (17,693)




At the South African income tax rate of 28%	(11,793)	(4,954)
Profit or loss of parent company not subject to taxation	5,354	4,856
Capital profit on sale of mining assets	8,172	-
Foreign currency translation reserve recycled on disposal	3,713	-
Foreign exchange adjustments on tax liabilities	630	(122)
Unrecognised tax losses	370	(51)
Income not assessable	(261)	(211)
Expenditure not allowable for income tax purposes	2,085	402
Tax asset not recognised	-	863

Under provision from prior year (610) (239)

Income tax expense 7,660 544




Current tax liabilities

Tax payable 1 90




Deferred tax assets Capital allowances on machinery	-	3,679
Provision for mine site rehabilitation	17,068	18,294
Closure costs	3,259	171
Tax losses	2,232	5,922
Provisions	2,356 1,230
Gross deferred tax assets	24,915 29,296
Set off of deferred tax liabilities	(24,622) (14,644)
Net deferred tax assets	293 14,652




Reconciliation of movement in deferred tax assets
Balance at beginning of year	14,652	16,875
Deferred tax expense	(10,753)	(631)

Foreign exchange translation of deferred tax assets (3,606) (1,592)

Balance at end of year 293 14,652




1. Income tax (continued)

   2015 2014

   $'000 $'000

   
   

   Deferred tax liabilities

   Capital allowances on machinery (16,626) (2,088)

   Fair value uplift on mining assets (6,109) (7,376)

   Environmental trust (2,289) (2,649)

   Closure costs - (4)

   Identifiable intangible assets (4,964) (15,260) Unrealised foreign exchange gains - (1,730) Mine debtors/creditors (1,562) (1,643)

   
   

   Other	(759) (731)
   Gross deferred tax liabilities	(32,309) (31,481)
   Set off of deferred tax assets	24,622 14,644
   Net deferred tax liabilities	(7,687) (16,837)

   
   

   Reconciliation of movement in deferred tax liabilities
   Balance at beginning of year	(16,837)	(19,112)
   Deferred tax benefit	6,817	1,207

   Foreign exchange translation of deferred tax liabilities 2,333 1,068 Balance at end of year (7,687) (16,837)

   
   

   At 30 June 2015, the potential benefit of tax losses of a foreign subsidiary amounting to $4 million (2014: $5 million) has not been brought to account in these financial statements, as it is not probable that the benefit will flow to that entity. Potential withholding taxes not currently recognised on undistributed profits from jointly controlled entities totals $12 million (2014: $17 million).

   
   

   
   

2. Earnings per share

2015 2014

$'000 $'000

1. Basic loss per share - cents (6.59) (1.38)

   Basic loss per share is calculated by dividing the net loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year.

   
   

2. Diluted loss per share - cents (6.59) (1.38)

   Diluted loss per share is calculated by dividing the net loss attributable to ordinary shareholders by the weighted average number of shares outstanding during the year (after adjusting for the effects of potential dilutive ordinary shares).

   
   

3. Reconciliations

Net loss used in calculating basic and diluted earnings per share (96,310) (13,048)







Weighted average number of shares used in the calculation

Number of shares Number of shares

of basic loss per share 1,461,267,288 942,823,111

Effect of dilutive securities

Dilutive instruments - - Adjusted weighted average number of shares used in the

calculation of diluted loss per share 1,461,267,288 942,823,111




1. Earnings per share (continued)

   2015 2014

   $'000 $'000

   c) Reconciliations (continued)

   Number of potential ordinary shares not considered dilutive

   Convertible bonds 33,122,029 33,122,029

   
   

   d)	Headline loss per share is disclosed as required by the JSE Limited Loss attributable to ordinary equity holders of the parent entity	(96,310)	(13,048)
   Adjustments net of tax:
   Profit on sale of assets	(16,752)	(653)
   Impairment losses	49,038	3,084

   Foreign currency translation reserve recycled on disposal 13,262 - Headline loss (50,762) (10,617)

   
   

   Headline loss per share - cents Basic

   Diluted

   
   

   (3.47)

   (3.47)

   
   

   (1.13)

   (1.13)

   
   

   Earnings per share for the 2014 financial year reflects the impact of the bonus element of the rights issue undertaken. There have been no transactions involving ordinary shares or potential ordinary shares that would significantly change the number of ordinary shares or potential ordinary shares outstanding between the reporting date and the date of completion of these financial statements.

   
   

2. Dividends paid, declared or proposed

   No dividend has been paid, declared or proposed for the 2015 or 2014 financial years.

   
   

   
   

3. Receivables - non-current

   Amount due from joint operation participant for share of mine site

   2015 2014

   $'000 $'000

   closure costs 8,717 9,180

   Amount due from joint venture entity - carried at impaired value 5,516 -

   14,233 9,180

   
   

   Based on the first and second Notarial Pooling and Sharing agreements (PSAs) with Anglo Platinum, AQPSA holds a contractual right to recover 50% of the rehabilitation liability relating to environmental rehabilitation resulting from PSA operations from Rustenburg Platinum Mines Limited (RPM), where this rehabilitation relates to property owned by AQPSA. Likewise RPM holds a contractual right to recover 50% of the rehabilitation liability relating to environmental rehabilitation resulting from PSA operations from AQPSA, where the rehabilitation relates to property owned by RPM. Refer also to Note 21. With respect to the opencast section of the Marikana mine that is on AQPSA property, RPM have limited their contractual liability to approximately ZAR50 million, being a negotiated liability in terms of an amendment to the second Notarial Pooling and Sharing Agreement.

   
   

   
   

4. Available-for-sale investments

   2015 2014

   $'000 $'000

   Shares in other corporations 392 451

   
   

   Available-for-sale financial assets consist of investments in ordinary shares and therefore have no fixed maturity date or coupon rate.

5. Investments in joint venture entities

   The Group has the following investments in joint venture entities:

   • a 50% interest in Mimosa Investments Limited, which owns and operates the Mimosa mine.

   • a 50% interest in Blue Ridge Platinum (Pty) Limited and a 39% interest in Sheba's Ridge Platinum (Pty) Ltd which have been placed on care and maintenance.

This summarised financial information is shown on a 100% basis. It represents the amounts shown in the joint ventures' financial statements prepared in accordance with IFRS under Group accounting policies, including fair value adjustments and amounts due to and from Aquarius.




Mimosa Blue Ridge Sheba's Ridge Investments Platinum Platinum
30 June 2015	Limited (Pty) Limited (Pty) Ltd
$'000 $'000 $'000
Revenue	273,242 70 -
Cost of sales - mining, processing and administration	(186,378) (1,586) -
Cost of sales - depreciation and amortisation	(33,172) - -
Other income	402 30 -
Foreign exchange loss	(180) - -
Interest expense	(810) (10,460) -
Impairment losses	- (3,390) (45,839)
Loss on sale of assets	(674) - -
Discounting of RBZ receivable	(57,074) - -
Community share ownership trust	(6,000) - -
Loss before income tax	(10,644) (15,336) (45,839)
Income tax (expense)/benefit	(38,730) 350 (248)
Loss after tax	(49,374) (14,986) (46,087)
Reconciliation of the above amounts to the share of loss
from joint venture entities recognised in the statement of
profit or loss & other comprehensive income Loss after tax	(49,374) (14,986) (46,087)
Group interest	50% 50% 39%
Group's ownership interest	(24,687) (7,493) (17,995)
Interest payable by Blue Ridge to Group entities	- 1,877 -
Share of loss from joint venture entities	(24,687) (5,616) (17,995)
Dividends received from joint venture (Aquarius
Platinum's share)	20,000 - -
Non-current assets	311,917 54,653 34,065
Current assets	110,197 4,596 -
Non-current liabilities	(78,768) (6,902) -
Current liabilities	(42,128) (160,971) (15,374)
Net assets/(liabilities)	301,218 (108,624) 18,691
Assets and liabilities above include:
Cash and cash equivalents	9,564 1,218 -
Current financial liabilities	(23,248) (52,332) (15,374)
Non-current financial liabilities	- (5,926) -
Reconciliation of the above amounts to the investment recognised in the Statement of Financial Position
Net assets/(liabilities)	301,218 (108,624) 18,691
Group interest	50% 50% 39%
Group's ownership interest	150,609 (54,312) 7,298
Cumulative impairment and foreign exchange adjustments	- (995) (17,092)
Receivables from other Group entities forming part of
the net investment in joint venture entities	- 55,307 9,794
Carrying value of Group's interest	150,609 - -

13. Investments in joint venture entities (continued)




30 June 2015 (continued)




Mimosa Investments Limited




Blue Ridge Platinum (Pty) Limited




Sheba's Ridge Platinum (Pty) Ltd




Unrecognised share of losses from joint venture

$'000 $'000 $'000

entity - current period - (6,855) -

Unrecognised share of losses from joint venture

entity - cumulative - (54,312) -







30 June 2014

Mimosa Investments Limited

Blue Ridge Platinum (Pty) Limited

Sheba's Ridge Platinum (Pty) Ltd

$'000 $'000 $'000

Revenue 261,024 74 -

Cost of sales - mining, processing and administration (191,452) (1,916) (83) Cost of sales - depreciation and amortisation (26,212) (24) - Other income 400 48 -

Foreign exchange loss (318) - -

Interest expense (572) (10,991) -

Community share ownership trust (1,000) - -




Indigenisation costs	(3,918) - -
Profit/(loss) before income tax	37,952 (12,809) (83)
Income tax expense	(18,706) - -
Profit/(loss) after tax	19,246 (12,809) (83)

Reconciliation of the above amounts to the share of
profit/(loss) from joint venture entities recognised in the
statement of profit or loss & other comprehensive income
Profit/(loss) after tax	19,246	(12,809)	(83)
Group interest	50%	50%	39%
Group's ownership interest	9,623	(6,404)	(32)

Interest payable by Blue Ridge to Group entities - 1,868 -

Share of profit/(loss) from joint venture entities 9,623 (4,536) (32)




Dividends received from joint venture (Aquarius

Platinum's share) 22,373 - -




Non-current assets	380,763	51,191	39,472
Current assets	108,527	5,433	-
Non-current liabilities	(76,062)	(1,043)	-

Current liabilities (23,204) (139,906) (17,834)

Net assets/(liabilities) 390,024 (84,325) 21,638




Assets and liabilities above include:
Cash and cash equivalents	14,174	1,418	-
Current financial liabilities	(19,006)	(139,490)	(17,824)

Non-current financial liabilities - - -




Reconciliation of the above amounts to the investment recognised in the Statement of Financial Position Net assets/(liabilities)	390,024	(84,325)	21,638
Group interest	50%	50%	39%
Group's ownership interest	195,012	(42,162)	8,449
Receivables from other Group entities forming part of

the net investment in joint venture entities - 58,155 10,956

Carrying value of Group's interest 195,012 15,993 19,405

1. Investments in joint venture entities (continued)

   
   

   2015 2014

   $'000 $'000

   
   

   Capital expenditure commitments (non-cancellable) 3,044 13,487

   These commitments represent contractual commitments relating to development activities at Mimosa and include AQP's share of capital expenditure associated with the capital development of the mine.

   
   

   RBZ receivable

   The consolidated financial statements of Mimosa Investments Limited, which Aquarius jointly controls and equity accounts, has previously included a receivable from the Reserve Bank of Zimbabwe (RBZ) of $57 million. 50% of this balance formed part of the 'Investments in joint venture entities' carrying value in the Company's financial report. Previously various plans have been put in place to either have the RBZ receivable transferred to the Government of Zimbabwe, as part of the non-binding term sheet in respect of the indigenisation implementation plan (IIP), or for it to be replaced by Government backed securities.

   
   

   During the current year the directors have continued to assess progress of Zimbabwe's initiatives in relation to indigenisation and progress on the issue of Government backed securities to replace RBZ debt. Draft legislation has been prepared but has not yet been passed through parliament. In addition, the IMF stated in November 2014 that it requires further changes to economic policy in Zimbabwe before it will support facilitating access to international capital markets by the Government of Zimbabwe.

   
   

   Having considered the above the directors believe concluding settlement of the RBZ debt via an indigenisation transaction or the creation of treasury bills as contemplated by the Government of Zimbabwe is now unlikely to occur within twelve months of the balance date, despite the transformation initiatives underway within Government.

   
   

   Accounting standards require that such non-interest bearing receivables deemed to be long term be discounted using an effective interest rate to recognise the delay in receipt of funds. The Company has attempted to determine an appropriate discount rate, however due to the absence of ratings and public debt issues in Zimbabwe this process has proven problematic. In view of the difficulty involved in sourcing a reliable discount rate and the difficulty in reliably estimating the time frame to secure full settlement of the RBZ debt, Aquarius has recognised a non-cash expense of $28.5 million in the share of loss from joint ventures, equal to its share of the full amount of the RBZ receivable.

2. Interests in joint operations

   The Group has the following interests in joint operations:

   • a 50% interest in two joint operations each referred to as the 'Notarial Pooling & Sharing Agreements'. The principal activities of the joint operations are to extend the Kroondal mine over the boundary of the properties covering the Kroondal mine and expand the Marikana mine operations through mineral rights contributed by Anglo Platinum through its subsidiary, Rustenburg Platinum Mines Ltd.

   • a 50% interest in a joint operation known as the 'Chrome Tailings Retreatment Project'.

     
     

     The Group's share of the assets, liabilities, revenue and expenses of the joint operations which are included in the consolidated financial statements, are as follows:

     
     

     2015 2014 $'000 $'000
     Current assets	93,167 63,686
     Non-current assets	172,494 204,906
     265,661 268,592
     Current liabilities	(24,975) (29,885)
     Non-current liabilities	(65,209) (67,845)
     (90,184) (97,730)
     Net assets	175,477 170,862
     Revenue	198,718 222,917
     Cost of sales	(198,472) (216,185)
     Foreign exchange gain	9,174 3,577
     Profit before income tax Income tax expense	9,420 10,309 - -
     Net profit	9,420 10,309
     Capital expenditure commitments (non-cancellable)	3,195 5,371

     These commitments represent contractual commitments relating to development activities at Kroondal and include Aquarius' share of capital expenditure associated with the capital development of the mine.

     Aquarius Platinum Limited

     Notes to the consolidated financial statements for the year ended 30 June 2015

     
     

3. Mining assets




Mining tenements




Mine development




Process plant




Exploration and evaluation asset




Buildings and

equipment Total




30 June 2015	$'000	$'000	$'000	$'000	$'000	$'000
Beginning carrying value	36,086	101,090	63,835	7,009	1,191	209,211
Additions	-	21,250	2,033	2	403	23,688
Disposals	(303)	(12,419)	(9,615)	(4,583)	(11)	(26,931)
Reduction in provision for rehabilitation	-	(67)	-	-	-	(67)
Depreciation	(2,216)	(15,597)	(3,036)	-	(253)	(21,102)
Impairment	-	(446)	-	-	-	(446)
Foreign exchange variance	(4,745)	(7,455)	(7,895)	(646)	(173)	(20,914)
Closing carrying value	28,822	86,356	45,322	1,782	1,157	163,439
Cost	98,947	275,182	100,835	3,514	2,721	481,199
Accumulated depreciation and impairment	(70,125)	(188,826)	(55,513)	(1,732)	(1,564)	(317,760)
Closing carrying value	28,822	86,356	45,322	1,782	1,157	163,439
30 June 2014
Beginning carrying value	43,825	109,559	68,686	7,515	1,261	230,846
Additions	-	16,726	3,322	53	7,094	27,195
Disposals	(55)	(29)	-	-	(826)	(910)
Reduction in provision for rehabilitation	-	(3,862)	(717)	-	-	(4,579)
Depreciation	(3,568)	(14,057)	(3,504)	-	(6,269)	(27,398)
Impairment	(1,662)	-	-	(130)	-	(1,792)
Foreign exchange variance	(2,454)	(7,247)	(3,952)	(429)	(69)	(14,151)
Closing carrying value	36,086	101,090	63,835	7,009	1,191	209,211
Cost	117,460	399,355	166,753	9,384	2,944	695,896
Accumulated depreciation and impairment	(81,374)	(298,265)	(102,918)	(2,375)	(1,753)	(486,685)
Closing carrying value	36,086	101,090	63,835	7,009	1,191	209,211




The AQPSA mining assets are part of a pledged security vehicle provided to First National Bank for various guarantees to the value of ZAR285 million ($23 million) (2014: ZAR 285 million and $27 million) provided on behalf of the company.







1. Mining assets (continued)

   In accordance with the Group's policy on mining assets, the directors have reviewed the carrying value of mineral exploration tenements as at 30 June 2015. The value of the mineral exploration tenements is carried forward as an asset provided the rights to tenure of the area of interest are current and either:

   • the exploration and evaluation activities are expected to be recouped through successful development and exploitation of the area of interest or, alternatively, by its sale; or

   • exploration and evaluation activities in the area of interest have not at the reporting date reached a stage which permits a reasonable assessment of the existence, or otherwise, of economically recoverable reserves, and active and significant operations in, or relating to, the area of interest are continuing.

   
   

   
   

2. Restricted cash in environmental trusts

2015 2014

$'000 $'000

Contributions to environmental rehabilitation trusts 13,905 16,902




Reconciliation of movement
Balance at beginning of year	16,902	16,712
Interest received	842	760

Foreign exchange variance (3,839) (570)

Balance at end of year 13,905 16,902




AQPSA has established Environmental Rehabilitation Trusts into which the Company makes annual contributions in order to provide for its obligations in respect of environmental rehabilitation. AQPSA also contributes to the Rustenburg Platinum Mines Rehabilitation Trust in order to provide for the obligations in respect of environmental rehabilitation for part of the joint operation's obligation incurred in the Notarial Pooling and Sharing Agreements. The trust balances are represented by restricted cash financial assets that can only be accessed in compliance with meeting the trust objectives.




17. Intangible asset Contract for treatment of tailings material	60,040 69,507
Less accumulated amortisation and impairment	(42,313) (15,008)
17,727 54,499
Reconciliation of movement
Balance at beginning of year	54,499 59,449
Impairment charge	(27,954) -
Amortisation charge	(1,456) (1,602)
Foreign currency adjustment	(7,362) (3,348)
Balance at end of year	17,727 54,499




The intangible asset relates to the contract for treatment of tailings material originating from Anglo Platinum's Rustenburg operations that is in production, and is being amortised to 2028.




1. Cash and cash equivalents

   2015 2014

   $'000 $'000

   
   

   Cash at bank	89,287 47,500
   Short-term deposits	106,486 89,320
   195,773 136,820

   
   

   The interest rate earned from cash at bank and short-term deposits ranged from 0.00% to 6.29% per annum. Short-term deposits have maturity dates of three months or less.

   
   

2. Trade and other receivables - current




Trade receivables (a)	25,062 29,833
Other receivables (b)	4,169 271
29,231 30,104




(a) Trade receivables are net of an amount of $44 million (2014: $49 million) relating to the pre-financing by Rustenburg Platinum Mines Limited of delivered PGM concentrates. This amount is subject to interest at the London Inter-Bank Offered Rate (LIBOR) plus 1%. The pre-financing is due to be offset in US Dollars against the final invoice amount during July, August and September 2015.




Trade receivables are due from major minerals mining and processing companies. None of the amounts are considered past due or impaired. At 30 June 2015, gross sales of $65 million (2014: $78 million) were subject to price adjustments. Refer to Note 34(b)(ii).




(b) None of the amounts are considered past due or impaired. 20. Inventories
Ore stockpiled at cost	418 795
Ore stockpiled at net realisable value	64 -
Consumables at cost	8,348 14,891
Provision for stock losses	(367) (440)
8,463 15,246
21. Payables - non-current
Amount due to joint operation in respect of mine closure costs	2,059 2,065
2,059 2,065




Based on the first and second Notarial Pooling and Sharing agreements (PSAs) with Anglo Platinum, AQPSA holds a contractual right to recover 50% of the rehabilitation liability relating to environmental rehabilitation resulting from PSA operations from Rustenburg Platinum Mines Limited (RPM), where this rehabilitation relates to property owned by AQPSA. Likewise RPM holds a contractual right to recover 50% of the rehabilitation liability relating to environmental rehabilitation resulting from PSA operations from AQPSA, where the rehabilitation relates to property owned by RPM. Refer also to Note 11.




1. Interest bearing loans and borrowings - non-current

   2015 2014

   $'000 $'000

   Secured loans - 57

   Finance lease liabilities (a) - refer Note 25 2,020 1,214 Convertible bonds - refer Note 25 - 117,648

   2,020 118,919

   (a) Finance lease liabilities relating to vehicles are calculated at an effective interest rate of the South African prime bank lending rate plus an average of 0.5% with a lease term of four years. Finance lease liabilities relating to mining equipment are calculated at an effective interest rate of the South African prime bank lending rate less 0.5% with an average lease term of three years.

2. Provisions - non-current

2015 2014

$'000 $'000

Provision for mine site rehabilitation 61,262 65,676

Provision for employee entitlements 83 87

61,345 65,763




Reconciliation of movement Balance at beginning of year	65,763	74,322
Additional provision for employee entitlements	12	15
Increase/(reduction) in mine site closure costs provided	109	(9,270)
Interest adjustment due to accretion in mine-site rehabilitation liability	4,691	5,112

Net exchange differences (9,230) (4,416)

Balance at end of year 61,345 65,763




The majority of rehabilitation relating to the Marikana mine will take place over the next nine years and the remainder at the end of the life of each mine ranging between nine and ten years.




Provision for mine site rehabilitation

The provision for rehabilitation represents the cost of restoring site damage following initial disturbance. Increases in the provision are capitalised to deferred mining assets to the extent that it meets the definition of dismantling and removing the item and restoring the site on which it is located under IAS 16. Costs incurred that related to an existing condition caused by past operations that do not have a future economic benefit are expensed.




Provision for employee entitlements

The provision for employee entitlements represents accrued employee leave entitlements.




2015 $'000	2014 $'000
24. Trade and other payables - current Trade payables	15,525	18,893

Other payables 18,998 15,296

34,523 34,189




Trade and other payables are interest free, payable within 90 days, predominantly denominated and repayable in ZAR and USD and located in South Africa.




25. Interest bearing loans and borrowings - current

2015 2014

$'000 $'000

Finance lease liabilities - refer Note 22(a) 2,125 1,362 Convertible bonds (a) 122,755 -

124,880 1,362




1. In December 2009 the Company issued $300 million 4% Convertible Bonds due 2015 (the Bonds) constituted by a trust deed dated 18 December 2009 and subject to the following summarised key terms:

2. The authorised denomination of the Bonds is $100,000 each and, unless previously redeemed, converted or purchased and cancelled, will be redeemed on 18 December 2015 at their principal amount plus accrued and unpaid interest;

3. The holder has the right to convert the Bonds into common shares in the Company. The number of common shares to be issued on conversion is determined by dividing the principal amount of the Bonds by the conversion price in effect at such time. The initial conversion price was set at $6.773 per common share. As a result of the rights issue during the 2014 financial year, this conversion price was adjusted to $3.786 per share;

4. On satisfying the required notice period, the Company has the right to redeem all, but not some only, of the Bonds if the market value of the common shares is at a premium of 30% to the conversion price for a certain period. The Company may also redeem the Bonds in circumstances where 85% of the Bonds have been converted, redeemed or purchased and cancelled;

5. The conversion price may be adjusted in certain circumstances, including the payment of dividends to shareholders, rights issues and bonus issues. In addition, if a change of control (as defined in the terms and conditions of the Bonds) occurs, holders have a right to convert their Bonds at a conversion price that shall be adjusted downwards for a limited period of time or to require redemption of their Bonds at their principal amount plus accrued and unpaid interest;

6. The Bonds bear interest of 4% per annum payable semi-annually in arrears;

7. Should an event of default occur the Bonds may become due and repayable immediately at their principal amount plus accrued and unpaid interest. Events of default include failure to pay amounts due under the Bonds, non-payment of other financial indebtedness above certain thresholds and insolvency or similar events occurring; and

8. The Bonds are unsecured but subject to a negative pledge whereby the Group undertakes not to create or permit any security being registered over its assets without meeting certain requirements to the satisfaction of the trustee.




For accounting purposes the Bonds have two elements: a liability component included in Note 25 (a host debt contract) and an equity element included in Note 29(f) (an embedded option entitling the Bond holder to convert the liability into common shares in the Company). The liability element is initially recognised at fair value and is subsequently carried at amortised cost whereby the initial carrying value of the liability is accreted to the principal amount over the life of the Bond. This accretion is recognised as a finance cost together with the interest expense. The balance of the Bond proceeds is allocated to the value of the embedded option equity component.




On 21 May 2014 the Company repurchased bonds with a face value of $172.6 million for $162.7 million (including transaction costs). Consistent with the process undertaken when the bonds were first issued the Company has determined the fair value of the liability component (the host debt contract) at the date of the repurchase, with the balance allocated to the value of the embedded option equity component. This process determined that of the total consideration paid, $150.2 million relates to the liability component and $12.5 million is the equity component. The equity component of the consideration paid for the repurchase has been recognised directly in equity.




A profit on the repurchase on the liability component in the 2014 financial year was determined as follows:

$'000




Carrying amount of repurchased bonds liability	161,173
Consideration allocated to the liability component (including transaction costs)	(150,248)
Profit on repurchase of bonds	10,925

25. Interest bearing loans and borrowings - current (continued)

Following the bond repurchase on 21 May 2014 and repurchases undertaken previously, the face value of outstanding bonds at 30 June 2015 is $125.4 million.




The fair value of the Bond at 30 June 2015 is $123 million (2014: $121 million).




2015 2014

$'000 $'000




26. Provisions - current Provision for employee entitlements	4,077 4,482
The provision for employee entitlements represents accrued employee leave entitlements.
27. Issued capital
a) Authorised capital	$'000 $'000
2,590,000,000 (2014: 1,590,000,000) common shares with a par value of $0.05 each	129,500 79,500
5 (2014: 5) 'A' class shares with a par value of $2,400 each	12 12
50,000,000 (2014: 50,000,000) preference shares with a par
value of $0.15 each	7,500 7,500
137,012 87,012
Number of $'000
Movement in authorised capital	shares
At 1 July 2014	1,640,000,005 87,012
Increase approved by shareholders 28 November 2014	1,000,000,000 50,000
At 30 June 2015	2,640,000,005 137,012
2015 2014 $'000 $'000
b) Issued capital
1,505,339,079 (2014: 1,464,310,359) common shares of $0.05
each fully paid	75,266 73,216
Number of $'000
Movement in issued capital	shares
At 1 July 2013	486,851,336 24,343
Rights issue	976,206,906 48,810
Equity benefits issued to employees	1,252,117 63
At 30 June 2014	1,464,310,359 73,216
At 1 July 2014	1,464,310,359 73,216
Shares issued as part of the Kruidfontein sale transaction	36,505,657 1,825
Equity benefits issued to employees	4,523,063 225
At 30 June 2015	1,505,339,079 75,266

1. Issued capital (continued)

   Terms and conditions of issued capital

   Common shares have the right to receive dividends as declared and, in the event of winding up the Company, to participate in the proceeds from the sale of all surplus assets in proportion to the number of and amounts paid up on shares held. Common shares entitle their holder to one vote, either in person or by proxy, at a meeting of the Company. Preference shares, when issued, have rights and restrictions attached to them as determined by the Board, in accordance with the bye-laws of the Company.

   
   

   Rights issue

   During the prior year the Company undertook a 2 for 1 rights issue at AUD 0.25, GBP 0.14 or ZAR 2.41 per common share. The amount recognised as issued capital and share premium from that rights issue represents the USD equivalent amount (being the Company's functional currency) at the date that the various common shares were allotted.

   
   

   Black Economic Empowerment (BEE) transaction

   South Africa

   The BEE transaction announced to shareholders on 26 July 2004 and approved by shareholders in a Special General Meeting on 11 October 2004 was formally executed with the receipt of ZAR860 million in cash by the Aquarius Group on 29 October 2004.

   
   

   The transaction has two key components, both of which are complete.

   
   

   The first step saw the BEE consortium, led by Savannah Resources (Pty) Limited (Savcon), subscribe for a 29.5% shareholding in the enlarged share capital of AQPSA as follows:

   • Savcon were issued with 400 shares in AQPSA for cash of $38.2 million (ZAR234.5 million) and shareholder loans of

     $97.4 million (ZAR598.4 million). The terms and conditions of the loans were as follows:

   • a loan of ZAR498.4 million that was unsecured, subordinated to AQPSA's third party debt, was interest free, had no fixed terms of repayment and ranks pari passu with the other shareholder loans; and

   • a loan of ZAR100 million that was unsecured, subordinated to AQPSA's third party debt, bore interest at a rate of 12.745% per annum, had no fixed terms of repayment and ranked pari passu with the other shareholder loans.

   • Aquarius also agreed to sell 13 AQPSA shares to Savcon for $4.4 million (ZAR27.1 million).

   
   

   Concurrently Impala Platinum Holdings Limited (Impala) acquired an additional holding in AQPSA from Aquarius to increase their shareholding to 20% in AQPSA following the dilution resulting from the issue of the new shares in AQPSA to the BEE consortium. Aquarius agreed to sell 30 AQPSA shares to Impala for $11.5 million (ZAR71.5 million). This was settled by the cession of ZAR71.5 million of interest bearing loan account to Aquarius.

   
   

   On 26 April 2007 the Company announced the acquisition of a 3.5% equity interest in AQPSA from Savcon for cash consideration of ZAR342.5 million following the receipt of Section 11(1) consent from the South African Department of Minerals and Energy. As a result of the transaction Aquarius increased its ownership interest in AQPSA from 50.5% to 54%. The difference between the consideration paid of $33.1 million and the carrying value of the non-controlling interest acquired was treated as an equity transaction. Refer Note 29(e).

   1. Issued capital (continued)

      Black Economic Empowerment (BEE) transaction (continued)

      On 16 April 2008 the Company announced the buy back by AQPSA of the 20% interest in AQPSA held by Implats for consideration of $504.9 million and the buy back by AQP of Implats' 8.4% interest in AQP for a consideration of $285 million. As a result of the transaction Aquarius increased its ownership interest in AQPSA from 54% to 67.5%. The difference between the consideration paid of $504.9 million and the carrying value of the non-controlling interest acquired in AQPSA was treated as an equity transaction. Refer Note 29(e).

      
      

      The second step occurred on 27 October 2008 where the Company announced that it had completed the final phase of the BEE transaction whereby Savcon exchanged its 32.5% holding in AQPSA for 65,042,856 new shares in AQP. As a result of the transaction Aquarius increased its ownership interest in AQPSA from 67.5% to 100%. The difference between the share consideration of $105.1 million and the carrying value of the non-controlling interest acquired in AQPSA has been treated as an equity transaction. Refer Note 29(e).

      
      

      
      

   2. Treasury shares

      2015 2014

      $'000 $'000

      27,118,557 (2014: 26,568,554) common shares (refer Note 32) (26,056) (26,239)

      
      

      Reconciliation of movement Balance at beginning of year - 26,568,554 shares	(26,239)	(26,526)
      Issued by the share plan trustee - 1,754,997 shares (2014: 1,678,198)	697	1,012
      Purchased by the share plan trustee - 2,305,000 shares (2014: 2,469,816) Participation in rights issue by controlled entities - nil shares (2014:	(514)	(1,477)
      9,520,767)	-	(2,297)
      Consideration received by controlled entities from sale of equity rights in

      the parent entity - 3,049

      Balance at end of year - 27,118,557 shares (26,056) (26,239)

      
      

      29. Reserves Share premium reserve (a)	1,208,004	1,201,126
      Foreign currency translation reserve (b)	(135,779)	(108,343)
      Equity benefits reserve (c)	466	466
      Ridge replacement options reserve (d)	92	92
      Equity reserve (e)	(338,019)	(338,019)

      Convertible bond equity component (f) 26,370 26,370

      761,134 781,692

      Movement in reserves

   3. Share premium reserve

      
      

      Balance at beginning of year	1,201,126 1,030,810
      Premium on shares issued for Kruidfontein settlement	6,195 -
      Premium on rights issue	- 169,584
      Premium on equity benefit issued to employees	683 732
      Balance at end of year	1,208,004 1,201,126
      The share premium reserve is used to record the premium arising on the issue of shares calculated as the difference between the issue price and the par value of $0.05 per share.

      
      

   4. Reserves (continued)

      Movement in reserves (continued)

   5. Foreign currency translation reserve

      2015 2014

      $'000 $'000

      Balance at beginning of year (108,343) (92,327)

      Loss on translation of foreign subsidiaries (40,698) (16,016)

      Amount recycled through profit and loss on disposal of a

      foreign operation 13,262 -

      Balance at end of year (135,779) (108,343)

      The foreign currency translation reserve is used to record currency differences arising from the translation of the financial statements of foreign operations.

      
      

   6. Equity benefits reserve

      Balance at end of year 466 466

      The equity benefits reserve is used to record the value of equity benefits granted to employees and the value of shares reserved under the share plan.

      
      

   7. Ridge replacement options reserve

   Balance at end of year 92 92

   The Ridge replacement options reserve is used to record the fair value of options issued to replace options previously on issue by Ridge Mining.

   
   

   e)	Equity reserve Balance at beginning of year	(338,019) (361,826)
   Repurchase of convertible bonds	- 23,807
   Balance at end of year	(338,019) (338,019)
   The equity reserve is used to record gains and losses associated with equity transactions with non-controlling interests (where the Group maintains control) plus equity transactions arising from the repurchase

   of financial instruments previously issued by the Company not otherwise recognised in the convertible bond equity component.

   
   

   f)	Convertible bond equity component Balance at beginning of year	26,370 62,666
   Repurchase of convertible bonds	- (36,296)
   Balance at end of year	26,370 26,370
   The convertible bond equity component is used to record the excess of the proceeds received from the issue of convertible bonds over the fair
   value of the debt component.

   
   

   8. Commitments

   9. Operating lease (non-cancellable)

      2015 2014

      $'000 $'000

      Not later than 1 year 43 112

      Later than 1 year but not later than 5 years 75 - Later than 5 years - -

      118 112

      
      

   10. Finance lease

       Not later than 1 year 2,405 1,517

       Later than 1 year but not later than 5 years 2,123 1,301 Total minimum lease payments 4,528 2,818 Less future finance charges (383) (242)

       Present value of minimum lease payments 4,145 2,576

       
       

       Disclosed in the consolidated accounts as:

       Current interest bearing liability (Note 25) 2,125 1,362 Non-current interest bearing liability (Note 22) 2,020 1,214

       4,145 2,576

       
       

   11. Capital expenditure (non-cancellable) 3,195 5,371

   These commitments represent contractual commitments relating to development activities at Kroondal. The liabilities arising from the above commitments will be settled out of cash resources.

   
   

   In addition, Mimosa, a joint venture entity, has non-cancellable capital expenditure commitments of $6 million (2014:

   $27 million), 50% of which is attributable to Aquarius.

   
   

   12. Contingencies

       Contractor litigation

       Aquarius is aware of litigation between one of its former contractors and some of its former employees. Aquarius is not a party to the litigation, continues to monitor the situation and continues to take advice on any potential exposure.

       
       

       Financial guarantees

       Pursuant to a financing facility, AQPSA's commercial bankers have issued financial guarantees on behalf of AQPSA totalling ZAR350 million ($29 million) (2014: ZAR350 million and $33 million). The guarantees are for the rehabilitation, closure obligations and other purposes of AQPSA and are secured by a first ranking fixed and floating charge over all the assets of AQPSA.

   13. Share-based payment plans

       Directors' and employees' share plans

       Aquarius has the following share plans ('Plans') for the directors and employees:

       • Aquarius Director/Employee Share Plan (2008)

       • Aquarius Director/Employee Share Plan (2013)

       • Employee Retention Share Scheme

       • Aquarius Restricted Share Scheme (2014)

   
   

   The Remuneration Committee administers the Company's Plans. Participation in the Plans is at the discretion of the Remuneration Committee, having regard to:

   1. the seniority of the participant and the position the participant occupies with the company or subsidiary;

   2. the length of service of the participant with the company or subsidiary;

   3. the record of employment of the participant with the company or subsidiary;

   4. the potential contribution of the participant to the growth and profitability of the company or subsidiary; and

   5. any other matters which the committee considers relevant.

   
   

   Aquarius Director/Employee Share Plan (2008)

   In 2008 the Company adopted a Share Plan for eligible participants. Under the Share Plan the Board can authorise the Trustee to purchase shares and hold them as either unallocated shares or as shares for and on behalf of an eligible participant. The participant may require the Trustee to transfer the plan shares held by the Trustee on behalf of the participant to the participant subject to satisfaction of any performance criteria or vesting conditions imposed by the Board. The Board may also direct the Trustee to allocate to a participant shares purchased as unallocated shares.

   
   

   If a participant departs prior to satisfaction of any performance criteria or vesting conditions imposed by the Board then, subject to Board discretion, the shares that were held on behalf of the participant will be held by the Trustee as unallocated shares.

   
   

   During the current and prior years, no shares were purchased by the trustee. During the year 609,667 shares (2014: 611,611) were issued. At the time of issue the average share price was $0.40 resulting in an expense of $0.2 million. The shares vested immediately.

   
   

   Aquarius Director/Employee Share Plan (2013)

   At the Company's Annual General Meeting held on 29 November 2013, shareholders approved the Aquarius Director/Employee Share Plan (2013) which allows directors and senior executives to receive shares in lieu of cash remuneration. During the year the Group issued 4,523,063 (2014: 1,326,851) shares with a value of $0.9 million to those individuals. The shares vested immediately.

   
   

   Employee Retention Share Scheme

   Established in 2012, the Employee Retention Share Scheme (ERSS) is designed to retain and incentivise senior executives and managers deemed key to the rollout of the Group's revised business plans in South Africa. The grant of the shares is a long-term incentive plan to cover three years. The ERSS is only available to senior management who do not participate in the Aquarius Director/Employee Share Plan (2008).

   
   

   During the year 2,305,000 shares (2014: 2,469,816) were purchased for the ERSS. During the year 1,145,330 shares (2014: 991,853) were issued. At the time of issue the average share price was $0.39 resulting in an expense of $0.5 million. The shares vested immediately.

   
   

   Employer entities within the Group participate in defined contribution pension plans for eligible employees in accordance with the applicable laws in their country of domicile. Contributions made by the Group ranged from 8% to 20% of the employees' base salary.

   
   

   Aquarius Restricted Share Scheme (2014)

   This scheme was approved at the AGM in 2014. The scheme has not been used so far but the intention is that it will be used next year and that it will then become the primary vehicle for long-term incentive awards to executive directors and eligible employees.

   
   

   2015 2014 $'000 $'000
   33. Related party disclosures
   Compensation of directors and key management personnel of the Group
   Compensation of directors:
   Short-term benefits	783 1,334
   Share-based payments	827 958
   1,610 2,292
   Compensation of key management personnel:
   Short-term benefits	1,789 2,130
   Post employment retirement benefits	136 141
   Share-based payments	345 737
   2,270 3,008
   Total remuneration of directors and key management personnel of the Company in respect of the financial year	3,880 5,300

   
   

   Related parties

   1. Controlled entities

      Details of significant controlled entities are as follows:

      Name Country of

      incorporation

      
      

      % Equity interest 2015 2014

      Aquarius Platinum Corporate Services (Pty) Ltd Australia 100% 100% Aquarius Platinum (South Africa) (Proprietary) Limited South Africa 100% 100% Aquarius Platinum (SA) Corporate Services (Proprietary) Limited South Africa 100% 100% Aquarius Platinum (SA) (Pty) Ltd Rehabilitation Trust South Africa 100% 100% Platinum Mile Resources (Pty) Ltd South Africa 91.7% 91.7%

      Hoedspruit Platinum Holdings (Pty) Ltd South Africa 86% 86%

      Ridge Mining Limited plc UK 100% 100%

      
      

   2. Joint venture entities

      Details of significant joint venture entities are as follows:

      Name Country of

      incorporation

      
      

      % Equity interest 2015 2014

      Mimosa Investments Limited Mauritius 50% 50%

      Mimosa Holdings (Private) Limited Zimbabwe 50% 50%

      Mimosa Mining Company (Private) Limited Zimbabwe 50% 50%

      Blue Ridge Platinum (Pty) Ltd South Africa 50% 50%

      Sheba's Ridge Platinum (Pty) Ltd South Africa 39% 39%

      
      

   3. Transactions within the Group

   During the financial year, unsecured loan advances were made by subsidiaries within the Group and between subsidiaries and the parent entity. Certain such loans carried a discounted rate of interest. Intercompany loan balances have been eliminated in the financial statements of the Group.

   34. Financial instruments

   1. Financial risk management objectives & policies

      
      

      The Group's management of financial risk is aimed at ensuring net cash flows are sufficient to:

      • meet all its financial commitments;

      • maintain the capacity to fund corporate growth activities; and

      • pay a reasonable dividend.

        
        

        The Group monitors its forecast financial position on a regular basis. The Group has a Treasury Committee that meets quarterly and considers cash flow projections for the following 12 months in detail, taking into consideration the impact of market conditions including metal prices and foreign exchange rates. The Committee also receives reports from independent foreign exchange consultants and receives presentations from advisors on current and forecast economic conditions.

        
        

        Credit risk, liquidity risk and market risk (including foreign exchange, commodity price, interest rate and price risk) arise in the normal course of the Group's business. The Group's principal financial instruments comprise cash, short- term deposits, interest bearing receivables and interest bearing liabilities. Other financial instruments include trade receivables and trade payables, which arise directly from operations. The Group's forecast financial risk position with respect to key financial objectives and compliance with treasury practice are regularly reported to the Board. The Group's objectives, policies and processes for managing risks arising from financial instruments have not changed from the previous financial year.

        
        

   2. Market risk

   (i) Foreign exchange risk

   The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures. Foreign exchange risk arises from future commitments, assets and liabilities that are denominated in a currency that is not the functional currency for each entity within the Group. The Group's borrowings and cash deposits are largely denominated in US Dollars, South African Rand and Australian Dollars.

   
   

   Currently there are no foreign exchange hedge programmes in place, however, the Group treasury function manages the purchase of foreign currency to meet operational requirements.

   
   

   
   

   At reporting date, entities which have a USD functional currency have exposure to ZAR denominated financial instruments as follows:

   Financial assets

   2015 2014

   $'000 $'000

   Cash and cash equivalents 944 207

   
   

   At reporting date, entities which have a ZAR functional currency have exposure to USD denominated financial instruments as follows:

   Financial assets

   Trade and other receivables 20,668 24,552

   
   

   At reporting date, entities which have a USD functional currency have exposure to AUD denominated financial instruments as follows:

   Financial assets

   Cash and cash equivalents 3,274 4,953

   34. Financial instruments (continued)

   1. Market risk (continued)

   2. Foreign exchange risk (continued)

      
      

      At reporting date, entities which have a USD functional currency have exposure to GBP denominated financial instruments as follows:

      Financial assets

      
      

      2015 2014

      $'000 $'000

      Cash and cash equivalents 7,729 8,341

      
      

      The following table summarises the sensitivity of financial instruments held at reporting date to movements in the exchange rate of the South African Rand, Great British Pound and Australian Dollar for entities with a US Dollar functional currency, with all other variables held constant, and the sensitivity of financial instruments held at reporting date to movements in the US Dollar for entities with a South African Rand functional currency. The South African Rand, Great British Pound, Australian Dollar and US Dollar instruments have been assessed using the sensitivities indicated in the table. These are based on reasonably possible changes, over a financial year, using the observed range of actual historical rates for the preceding five year period.

      Impact on profit/equity pre tax gain/(loss)

      Judgements of reasonable possible movements 2015

      $'000

      2014

      $'000

      Currency exposure for entities with USD functional currency

      10% strengthening of ZAR against USD (2014: 10%) 105 23

      10% weakening of ZAR against USD (2014: 10%) (86) (19)

      10% strengthening of AUD against USD (2014: 10%) 327 495

      10% weakening of AUD against USD (2014: 10%) (298) (450)

      10% strengthening of GBP against USD (2014: 10%) 773 834

      10% weakening of GBP against USD (2014: 10%) (703) (758)

      
      

      Currency exposure for entities with ZAR functional currency

      10% strengthening of USD against ZAR (2014: 10%) 2,067 2,455

      5% weakening of USD against ZAR (2014: 10%) (1,034) (2,455)

      
      

   3. Commodity price risk

   The Group's revenues are exposed to commodity price fluctuations, in particular movements in the price of platinum group metals (PGM's). The Group regularly measures exposure to commodity price risk by stress testing the Group's forecast financial position to changes in PGM prices. The Group does not hedge commodity prices.

   
   

   The financial instruments exposed to movements in metal prices are as follows:

   2015 2014

   $'000 $'000

   Financial assets

   Receivables (gross notional amount) 64,564 77,671

   64,564 77,671

   
   

   These receivables comprise quotational period embedded derivatives that are carried at fair value in accordance with the policy set out in Note 5(j).

   34. Financial instruments (continued)

   b) Market risk (continued)

   1. Commodity price risk (continued)

      The following table summarises the sensitivity of financial instruments held at reporting date to movements in the relevant forward commodity price, with all other variables held constant. The sensitivities are based on reasonably possible changes, over a financial year, using observed ranges of actual historical rates.

      
      

      Impact on profit/equity pre tax gain/(loss)

      Judgements of reasonable possible movements 2015

      $'000

      2014

      $'000

      5% (2014: 10%) increase in platinum, palladium and rhodium prices; 5% (2014: 10%) increase in gold price	3,266	7,767
      15% (2014: 10%) decrease in platinum, palladium and rhodium prices; 15% (2014: 10%) decrease in gold
      price	(9,797)	(7,767)

      
      

   2. Interest rate risk

   Interest rate risk is the risk that the Group's financial position will be adversely affected by movements in interest rates.

   
   

   The Group's main interest rate risk arises from short-term loans with interest charges based on either the London Inter-Bank Offered Rate (LIBOR) or the Johannesburg Interbank Acceptance Rate (JIBAR). Floating rate debt exposes the Group to cash flow interest rate risk. Cash holdings are subject to interest rate risk of the currency of the deposit. The convertible bond has a fixed interest rate of 4%. All other financial assets and liabilities in the form of receivables, investments in shares and payables are non-interest bearing.

   
   

   The Group does not engage in any hedging or derivative transactions to manage interest rate risk. In conjunction with external advice, management consideration is given on a regular basis to alternative financing structures with a view to optimising the Groups' funding structure.

   
   

   The financial instruments exposed to movements in variable interest rates are as follows:

   
   

   2015 2014 $'000 $'000
   Financial assets
   Cash and cash equivalents	195,773 136,820
   Restricted cash in environmental trusts	13,905 16,902
   209,678 153,722
   Financial liabilities Interest bearing liabilities exposed to LIBOR *	43,896 48,700
   43,896 48,700

   
   

   Cash and cash equivalents are exposed to movements in USD and ZAR cash deposit rates.

   
   

   * Relates to the pre-financing of delivered PGM concentrates that has been offset against trade receivables in the statement of financial position. Refer Note 19(a).

   34. Financial instruments (continued)

   1. Market risk (continued)

   2. Interest rate risk (continued)

      The following table summarises the sensitivity of the financial instruments held at reporting date, following a movement in variable interest rates, with all other variables held constant. The sensitivities are based on reasonably possible changes over a financial year, using the observed range of actual historical rates for the preceding five year period.

      
      

      Impact on profit/equity pre tax gain/(loss)

      Judgements of reasonable possible movements 2015

      $'000

      2014

      $'000

      
      

      Cash

      - increase +50bps (2014: +50bps) 978 683

      - decrease -50bps (2014: -50bps) (978) (683)

      Restricted cash in environmental trusts

      - increase +50bps (2014: +50bps) 70 84

      - decrease -50bps (2014: -50bps) (70) (84)

      
      

      Interest bearing liabilities - sensitive to LIBOR

      - increase +100bps (2014: +100bps) (439) (487)

      - decrease 0bps (2014: 0bps) - -

      
      

   3. Price risk

   Price risk is the risk that the Group's financial position will be adversely affected by movements in the market value of its available-for-sale financial assets. The financial instruments exposed to movements in market value are as follows:

   
   

   Financial assets

   2015 2014

   $'000 $'000

   Other financial assets 392 451

   The exposure to price risk is not considered material to the Group.

   34. Financial instruments (continued)

   4. Liquidity risk

      The liquidity position of the Group is managed to ensure sufficient liquid funds are available to meet financial commitments in a timely and cost effective manner. The Group Treasury Committee continually reviews the liquidity position including cash flow forecasts to determine the forecast liquidity position and maintain appropriate liquidity levels. Notes 22 and 25 detail the repayment obligations in respect of the amount of the facilities.

      
      

      The contractual maturity analysis of payables at the reporting date was as follows:

      Payables Ageing Analysis $'000

      
      

      Total		6-12 months	1-5 years	> 5 years
      2015
      Trade payables	15,525	15,525	-	-	-
      Other payables	18,998	18,998	-	-	-
      Amount due to joint operation in respect of
      mine closure costs	2,059	-	-	2,059	-
      Loans and borrowings	132,053	128,971	1,063	2,019	-
      Total payables	168,635	163,494	1,063	4,078	-
      2014
      Trade payables	18,893	18,893	-	-	-
      Other payables	15,296	15,296	-	-	-
      Amount due to joint
      operation in respect of
      mine closure costs	2,065	-	-	2,065	-
      Loans and borrowings	135,558	681	681	134,196	-
      Total payables	171,812	34,870	681	136,261	-

      
      

   5. Credit risk

   Credit risk is the risk that a contracting entity will not complete its obligation under a financial instrument that will result in a financial loss to the Group. The carrying amount of financial assets represents the maximum credit exposure. Receivables balances are monitored on an ongoing basis with the result that the Group's exposure to bad debts is not significant. The Group's credit risk is limited to the carrying value of its financial assets. At reporting date there is a significant concentration of credit risk represented in the cash and trade receivables balance. With respect to trade receivables, this is due to the fact that the majority of sales by the Group and a joint venture entity are made to two specific customers as per contractually agreed terms. The two customers, being Rustenburg Platinum Mines Limited and Centametall AG, have complied with all contractual sales terms and have not at any stage defaulted on amounts due. The Group minimises exposure by investing funds with counterparties with a credit rating of A- or higher.

   
   

   The maximum exposure to credit risk at the reporting date was as follows:

   
   

   2015 $'000	2014 $'000
   Current
   Cash and cash equivalents	195,773	136,820
   Trade receivables	25,062	29,833

   Other receivables 4,169 271

   225,004 166,924

   
   

   Non-current Restricted cash in environmental trusts	13,905	16,902
   Amount due from joint operation participant for share of mine site closure costs	8,717	9,180
   Amount due from joint venture entity - carried at impaired

   value 5,516 -

   28,138 26,082

   34. Financial instruments (continued)

   1. Credit risk (continued)

      The ageing of receivables at the reporting date was as follows:

      Receivables Ageing Analysis $'000

      
      

      Total		6-12 months 1-5 years	> 5 years
      2015
      Trade receivables	25,062	25,062	- -	-
      Other receivables Amount due from joint	4,169	4,169	- -	-
      operation participant for share
      of mine site closure costs	8,717	-	- 8,717	-
      Amount due from joint venture entity - carried at impaired
      value	5,516	-	- 5,516	-
      Total receivables	43,464	29,231	- 14,233	-
      2014
      Trade receivables	29,833	29,833	- -	-
      Other receivables Amount due from joint	271	271	- -	-
      operation participant for share
      of mine site closure costs	9,180	-	- 9,180	-
      Total receivables	39,284	30,104	- 9,180	-

      
      

   2. Capital management

      The Group treasury function is responsible for capital management. This involves the use of corporate forecasting models, which facilitates analysis of the Group's financial position including cash flow forecasts to determine the future capital management requirements. Group treasury monitors gearing and compliance with various contractual financial covenants. The Group defines capital as total shareholders' equity.

      
      

      Capital management is undertaken to ensure a secure, cost effective supply of funds to ensure the Group's operating and capital expenditure requirements are met. The mix of debt and equity is regularly reviewed. The Group does not have a target debt/equity ratio, but has a policy of maintaining a flexible financing structure so as to be able to take advantage of new investment opportunities that may arise. At 30 June 2015 the Group's gearing ratio is 35% (2014: 25%).

      
      

      During the year the Company paid no dividends (2014: nil). The Board maintains a policy of balancing returns to shareholders with the need to fund growth.

      
      

   3. Fair value

   The fair value of a financial asset or a financial liability is the amount at which the asset could be exchanged or liability settled in a current transaction between willing parties in an arm's length transaction. The fair values of cash and cash equivalents, trade and other receivables and trade and other payables approximate their carrying values, as a result of their short maturity or because they carry floating rates of interest. The fair value of financial instruments traded in active markets such as publicly traded available-for-sale securities are based on quoted market prices at the reporting date. The quoted market price used for available-for-sale securities held by the Group is the current bid price. The fair value of convertible bonds disclosed at Note 25(a) has been determined by reference to the last traded market price prior to the reporting date between unrelated parties on an arm's length basis.

   1. Financial instruments (continued)

   2. Fair value (continued)

      Available-for-sale financial assets and quotational period embedded derivatives are carried at fair value. The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

      • Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities

      • Level 2 - Valuation techniques for which the lowest-level input that is significant to the fair value measurement is directly or indirectly observable

      • Level 3 - Valuation techniques for which the lowest-level input that is significant to the fair value measurement is unobservable

   
   

   Available-for-sale financial assets of $0.4 million (2014: $0.5 million) are measured using level 1 valuation techniques. Quotational period embedded derivatives of $65 million (2014: $78 million) are measured using level 2 valuation techniques with reference to consensus forecasts and spot metal prices and exchange rates at the reporting date. The valuation techniques used have not changed for each of these financial instruments from the prior period.

   
   

   3. Events after reporting date

      There were no material events subsequent to 30 June 2015 that have not been reflected in the financial statements.

      
      

      
      

   4. Auditor's remuneration

      Amounts received or due and receivable by Ernst & Young for:

      - an audit or review of the financial report of the company and

      2015 2014

      $'000 $'000

      
      

      any other entity in the consolidated group	441 531
      - income tax related services	- 6
      - other services in relation to the company and any other entity in the consolidated group	101 138
      542 675

      
      

      The amounts disclosed above include those paid by joint venture entities and joint operations.

      
      

   5. Restatement of statement of cash flows for the year ended 30 June 2013

      In response to a review of the Company's financial report for the year ended 30 June 2013 by the Financial Reporting Council's Conduct Committee, the directors have decided to restate that year's Statement of Cash Flows. The restatement arises from a period which is outside the required comparative information for this financial report.

      
      

      The published financial report for the year ended 30 June 2013 included a cash outflow of $24.039 million described as 'foreign exchange loss on currency contract'. This amount was categorised within financing activities in that financial report. The directors have reconsidered the classification of this item and have agreed that this cash outflow should have been categorised within operating activities. The restatement results in cash flows from operating activities changing from a net cash inflow of $21.919 million to a net cash outflow of $2.120 million. Similarly, the restatement results in net cash outflow from financing activities changing from a net cash outflow of $47.902 million to a net cash outflow of $23.863 million.

      
      

      The restatement does not impact opening or closing cash balances in any prior period, nor does it impact the statement of profit or loss & other comprehensive income or the basic and diluted earnings per share previously disclosed.

      In accordance with a resolution of the Board of Directors of Aquarius Platinum Limited, I state that: In the opinion of the directors:

      
      

   6. the financial statements and notes of the consolidated entity:

      
      

   7. give a true and fair view of the financial position as at 30 June 2015 and the performance for the year ended on that date of the consolidated entity; and

      
      

   8. comply with International Accounting Standards; and

      
      

   9. there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

   
   

   On behalf of the Board

   
   

   Jean Nel Director

   
   

   30 September 2015

   
   

   Ernst & Young

   11 Mounts Bay Road Perth WA 6000 Australia

   GPO Box M939 Perth WA 6843

   Tel: +61 8 9429 2222

   Fax: +61 8 9429 2436

   ey.com/au

   
   

   Independent auditor's report to the members of Aquarius Platinum Limited

   Report on the financial report

   
   

   We have audited the accompanying financial report of Aquarius Platinum Limited and the entities it controlled ('the Group'), which comprises the statement of financial position as at 30 June 2015, and the statement of profit or loss & other comprehensive income, statement of changes in equity and statement of cash flows for the year ended on that date, a summary of significant accounting policies, other explanatory notes and the directors' declaration of the consolidated entity comprising the company and the entities it controlled at the year's end or from time to time during the financial year.

   
   

   Directors' Responsibility for the Financial Report

   
   

   The directors of the company are responsible for the preparation and fair presentation of this financial report in accordance with International Financial Reporting Standards. This responsibility includes establishing and maintaining internal controls relevant to the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

   
   

   Auditor's Responsibility

   
   

   Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. These standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement.

   
   

   An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, we consider internal controls relevant to the entity's preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report.

   
   

   We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

   
   

   Independence

   
   

   We are independent of the company, and have met the independence requirements of Australian and International professional ethical pronouncements.

   
   

   
   

   A member firm of Ernst & Young Global Limited

   Liability limited by a scheme approved under Professional Standards Legislation GB:EH:AQP:004

   
   

   
   

   
   

   
   

   Auditor's Opinion

   
   

   In our opinion, the consolidated financial report presents fairly in all material respects the financial position of the Group as of 30 June 2015, and its financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards.

   
   

   Ernst & Young Perth

   30 September 2015

   
   

   A member firm of Ernst & Young Global Limited

   Liability limited by a scheme approved under Professional Standards Legislation GB:EH:AQP:004

   The following information was reflected in the Company's registers and other records as at 1 September 2015.

   
   

   Distribution of shareholders

   
   

   Range			Ordinary shares Number of holders
   1	-	1,000	2,632
   1,001	-	5,000	2,354
   5,001	-	10,000	975
   10,001	-	100,000	1,562
   100,001	-	and over	674
   Total			8,197

   
   

   There were 1,722 holders of ordinary shares holding less than a marketable parcel.

   
   

   Substantial shareholders

   The following shareholders have a substantial shareholding in the Company:

   
   

   Shareholder	Number of shares	%
   HSBC Custody Nominees (Australia) Limited Chase Nominees Limited	108,551,335 45,007,769	7.20 2.99

   
   

   Voting rights

   Only the shares carry voting rights, which upon a poll are one vote for each share held.

   
   

   Twenty largest holders of fully paid shares

   
   

   Shareholder		Number of shares	%
   1	HSBC Custody Nominees (Australia) Limited	108,551,335	7.20
   2	Chase Nominees Limited	45,007,769	2.99
   3	Vidacos Nominees Limited (UKCP100)	39,823,641	2.64
   4	J P Morgan Nominees Australia Limited	33,654,224	2.23
   5	Chase Nominees Limited (Artemis)	28,000,000	1.86
   6	Barclayshare Nominees Limited	22,427,050	1.49
   7	Citicorp Nominees Pty Ltd	21,667,925	1.44
   8	HSBC Global Custody Nominee (UK) Limited (357206)	21,227,657	1.41
   9	Zero Nominees Pty Ltd	17,688,504	1.17
   10	Vidacos Nominees Limited (2303)	17,505,105	1.16
   11	State Street Nominees Limited (OM02)	16,437,439	1.09
   12	State Street Nominees Limited (OM04)	16,162,227	1.07
   13	Vidacos Nominees Limited (13559)	15,426,734	1.02
   14	Vidacos Nominees Limited (SL688)	13,726,147	0.91
   15	Savannah Resources Limited	13,527,388	0.90
   16	Lynchwood Nominees Limited (2006420)	12,692,613	0.84
   17	The Bank of New York (Nominees) Limited (UKREITS)	10,263,462	0.68
   18	Chase Nominees Limited (BBHLEND)	10,157,802	0.67
   19	Chase Nominees Limited (LEND)	10,106,295	0.67
   20	Vidacos Nominess Limited (SL474)	9,364,917	0.62
   Top 20 shareholders		483,418,234	32.08
   Other shareholders		1,023,688,544	67.92
   Total		1,507,106,778	100.00

   Incorporation and general information

   The Company was incorporated in Bermuda as an exempted company and is subject to Bermudian law.

   
   

   In Australia, the Company is registered as a foreign company under the Australian Corporations Act (registration no. ARBN 087 577 893). It is not subject to Chapter 6 of the Australian Corporations Act dealing with the acquisition of shares (including substantial shareholdings and takeovers). However, the Company has inserted into its bye-laws some restrictions on the ability to acquire shares in the Company. These sections of the bye-laws reflect the restrictions on acquisitions of shares contained in Parts 6.1 and 6.2 of the Australian Corporations Act. The Company has undertaken to comply with the Listing Rules of the ASX.

   
   

   Bermuda law does not impose any limitation on the acquisition of securities in the Company.

   
   

   Corporate information

   The consolidated financial statements for Aquarius for the year ended 30 June 2015 were authorised for issue in accordance with a resolution of the directors on 30 September 2015. Aquarius is a limited company incorporated and registered as an exempted company in Bermuda. As an exempted company, Aquarius is authorised to carry on business outside Bermuda but may not (except in certain circumstances) carry on business within Bermuda.

   
   

   The consolidated financial statements have been presented using United States Dollars as the presentation currency. The US Dollar is traded at par with the Bermuda Dollar and accepted as the currency of Bermuda's main industries.

   
   

   The registered office of Aquarius is located at Clarendon House, 2 Church Street, Hamilton, Bermuda.

   The following definitions apply throughout the financial statements:

   
   

   Aquarius Aquarius Platinum Limited, the parent entity, a company incorporated in Bermuda with registration number EC 26290

   
   

   AQPSA Aquarius Platinum (South Africa) (Proprietary) Limited (registration number 2000/000341/07), a company incorporated in the Republic of South Africa and a controlled entity of Aquarius

   
   

   ASX Australian Securities Exchange

   
   

   AUD Australian Dollar

   
   

   DIIR Disabling injury incidence rate, being the number of lost-time injuries expressed as a rate per 200,000 man-hours worked

   
   

   GBP Great British Pound

   
   

   Implats Impala Platinum Holdings Limited (registration number 1957/001979/06), a company incorporated in the Republic of South Africa

   
   

   JSE Johannesburg Stock Exchange

   
   

   MIL Mimosa Investments Limited (registration number 26645/6593), a company incorporated in the Republic of Mauritius and a jointly controlled entity of Aquarius and Implats (formerly known as ZCE Platinum Limited)

   
   

   Mimosa Mimosa Mining Company (Private) Limited, a company incorporated in Zimbabwe

   
   

   LSE London Stock Exchange

   
   

   PGM Platinum group metals comprising mainly platinum, palladium, rhodium and gold

   
   

   PSA1 Pooling & Sharing Agreement between AQPSA and RPM Ltd on Kroondal PSA2 Pooling & Sharing Agreement between AQPSA and RPM Ltd on Marikana USD United States Dollar

   ZAR South African Rand