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AMS/AMSP - Anglo Platinum Limited - Anglo Platinum quarterly review and
production report for the period 1 January 2010 TO 31 March 2010
Anglo Platinum Limited
Incorporated in the Republic of South Africa
Registration number: 1946/022452/06
JSE Codes: AMS; AMSP
ISIN: ZAE000013181; ZAE000054474
ANGLO PLATINUM QUARTERLY REVIEW AND PRODUCTION REPORT FOR THE PERIOD 1 JANUARY
2010 TO 31 MARCH 2010
REVIEW OF THE QUARTER
SAFETY
Anglo Platinum is pleased to report good progress towards the Company`s safety
goal of "zero harm" during the first quarter of 2010. The lost time injury
frequency rate reduced from 1.37 at the end of 2009 to 1.31 for every 200,000
hours worked at the end of the first quarter of 2010. A number of operations
have achieved significant fatality and lost-time injury free milestones during
the quarter.
Regrettably, there was one fatality during the quarter at Anglo Platinum`s
managed operations. We extend our sincere condolences to the family, friends and
colleagues of the late Mr. Benedict Ranape.
OPERATIONS
Production of equivalent refined platinum ounces from mining and purchase of
concentrate activities attributable to Anglo Platinum was 594,700 ounces in the
quarter, a decrease of 18,700 or 3.0% compared with 613,400 produced in the
first quarter of 2009, and 9,000 ounces or 1.5% below the fourth quarter of
2009.
Mined production from own operations was 378,200 platinum ounces, some 28,200
lower than the comparable period in 2009 which included the 31,000 equivalent
refined platinum ounce reduction from the shafts placed on care and maintenance
during the second and third quarters of 2009, namely, Siphumelele 1 and 2 shafts
and Khuseleka 2 shaft.
Joint venture operations performed well during the period and equivalent refined
platinum ounces, inclusive of both mined and purchased production from these
operations, increased by 11,700 ounces when compared with the first quarter of
2009. The 2009 first quarter production results included mined production from
Bokoni (14,000) and BRPM (7,200) which in the 2010 period under review are
reported as purchased concentrate following the conclusion of BEE transactions
at these operations in the second half of 2009.
Equivalent refined platinum purchased from third parties for the period was
24,400 ounces, some 2,100 ounces lower than the same period in 2009.
Anglo Platinum produced 446,700 refined platinum ounces for the first quarter of
2010, 10.6% higher than the same period in 2009. Anglo Platinum remains
confident that it will meet its production target of 2.5m refined platinum
ounces for the full year 2010. Processing performances were in-line with
expectations. The planned Polokwane smelter furnace re-build was completed
successfully, earlier than planned, due to the decision taken to bring the start
date forward from January 2010 to December 2009, as the January production month
included the Christmas break.
In terms of productivity, the average output per operating employee per month
for the first quarter of 2010 was 6.68mSquared. Both February and March
achievements were above 7.0mSquared per employee. The quarter performance was
16.8% higher than the first quarter of 2009 and 3.9% higher than the fourth
quarter of 2009.
Anglo Platinum has delivered two years of costs marginally above R11,000 per
equivalent refined platinum ounce and is well on its way to do it for a third
year. The year-to-date March 2010 cash operating costs per equivalent refined
platinum ounce achieved was R11,099, in line with our target despite an increase
in consumer price indices of c.6%. The cash on-mine cost per tonne milled at
R436 per tonne decreased by 7.9% compared with that achieved in the first
quarter of 2009.
CAPITAL PROJECTS AND BALANCE SHEET
Capital expenditure excluding interest capitalised was R1.3 billion for the
quarter. The Company expects to incur around R8.0 billion of capital
expenditure for the year, excluding interest capitalised.
Net debt at the end of the first quarter amounted to R8.8bn, following the cash
inflow from the successfully completed rights issue which was over-subscribed by
our minority shareholders by almost three times. The current debt position is
higher than the previously indicated R6.8bn but is expected to decrease as
working capital movements take effect. For the full year the interest charged
in respect of borrowings is expected to be significantly lower than 2009. As a
result, almost all of the interest on borrowings will be eligible for
capitalisation.
GUIDANCE FOR THE REMAINDER OF 2010
Market indications during the first quarter of 2010 support Anglo Platinum`s
expectation that the platinum market in 2010 will be in deficit as a result of a
moderate increase in supply but a significant recovery in demand.
Platinum demand remained firm as vehicle production increases surpassed the
encouraging increase in vehicle sales. The consequent restocking of autocatalyst
metal inventory levels; metal inventory increases in industrial applications;
and firm investment demand drove the platinum price above Anglo Platinum`s
average forecast for 2010 of $1,500 per ounce.
Jewellery demand might well be lower in 2010 as inventory levels in the supply
chain appear to be adequate, but overall demand for platinum is expected to
increase significantly due to substantial industrial and autocatalyst
restocking.
Anglo Platinum`s 2010 target for refined platinum production remains 2.5m
ounces. Anglo Platinum is well positioned to supply additional ounces of
platinum to the market, if required, to meet demand.
QUARTERLY PRODUCTION STATISTICS
Quarter ended % Change
March March December March March
Q10 Q10
2010 2009 2009 vs vs
March December
Q09 Q09
Production
statistics
Tonnes mined - 000 18,334 12,860 11,585 42.6% 58.3%
opencast 8
Tonnes broken - 000 6,934 7,718 6,954 -10.2% -0.3%
underground mines
Tonnes milled 000 10,434 10,429 10,513 0.0% -0.8%
Merensky / UG2 / per 1 1: 3.5: 1: 1: 3.4:
Platreef ratio Merensky 1.7 3.0: 1.7
tonne 1.3
4E Built-up head g/tonne 3.08 3.52 3.19 -12.5% -3.4%
grade milled
Mines 3.35 3.83 3.50 -12.5% -4.3%
Western Limb 1.16 1.11 1.05 4.5% 10.5%
Tailings
Retreatment
Equivalent 000 oz
refined platinum
production *
Mined 463.0 513.2 473.5 -9.8% -2.2%
Purchased 135.0 109.9 136.8 22.8% -1.3%
Sold -3.3 -9.7 -6.4 -66.0% -48.4%
Attributable to 594.7 613.4 603.9 -3.0% -1.5%
Anglo Platinum
Total refined
production
Platinum 000 oz 446.7 404.0 766.0 10.6% -41.7%
Palladium 000 oz 247.0 235.1 426.3 5.1% -42.1%
Rhodium 000 oz 61.6 73.8 93.8 -16.5% -34.3%
Gold 000 oz 17.4 20.8 21.1 -16.3% -17.5%
PGMs 000 oz 869.4 839.2 1,446.9 3.6% -39.9%
Nickel 000 4.4 3.3 5.3 33.3% -17.0%
tonnes
Copper 000 2.6 2.0 3.3 30.0% -21.2%
tonnes
Refined platinum 000 oz 446.8 404.0 766.1 10.6% -41.7%
production
Platinum pipeline 000 oz 147.9 209.4 (162.2)
movement
Employees (Managed
operations: end of period)
Own enrolled employees 48,240 51,132 48,141 -5.7% 0.2%
Contractor employees 9,745 17,447 10,179 -44.1% -4.3%
Total employees for 57,985 68,579 58,320 -15.4% -0.6%
managed operations
mSquared per total 6.68 5.72 6.43 16.8% 3.9%
operating employee
100% of Joint Venture
operations excluding
Bokoni: end of period
JV Own employees 8,270 8,174 8,313 1.2% -0.5%
JV Contractor employees 14,129 16,352 14,138 -13.6% -0.1%
Total JV employees 22,399 24,526 22,451 -8.7% -0.2%
8 Includes Mogalakwena,
Kroondal and Marikana
opencast operations
* Mines production converted to equivalent refined
production using Anglo Platinum`s standard smelting
and refining recoveries
Johannesburg, South Africa
22 April 2010
Sponsor
Merrill Lynch South Africa (Pty) Limited
For further information please contact:
Anna Mulholland
Investor Relations
+27 (0) 11 373 6683
amulholland@angloplat.com
Date: 22/04/2010 08:00:07 Supplied by www.sharenet.co.za
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