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AMS - Anglo American Platinum Limited - Quarterly review and production
report for the period 01 January 2012 to 31 March 2012
ANGLO AMERICAN PLATINUM LIMITED
Incorporated in the Republic of South Africa)
Registration number: 1946/022452/06)
Share Code: AMS
ISIN: ZAE000013181
("Anglo American Platinum")
ANGLO AMERICAN PLATINUM LIMITED QUARTERLY REVIEW AND PRODUCTION REPORT FOR
THE PERIOD 01 JANUARY 2012 TO 31 MARCH 2012
KEY FEATURES
- Equivalent refined platinum production up 5% year on year and 2% quarter
on quarter to 593 koz
- Mogalakwena`s head grade increased 5% year on year and recoveries improved
by 24%
- Refined platinum production down 24% year on year and 43% quarter on
quarter to 403 koz due to planned converter plant maintenance
- Productivity of 6.12mSquared squared per employee per month during the
first quarter, up 4% quarter on quarter
REVIEW OF THE QUARTER
OPERATIONS
The equivalent refined platinum production (equivalent ounces are mined
ounces expressed as refined ounces) for the first quarter of 2012 increased
by 5% year on year to 593 koz from 568 koz during the first quarter of 2011.
Production from own mines was 413 koz - up 45 koz or 12% year on year. This
was due to a 10% increase in square metres mined which resulted in a 12%
increase in tons milled from underground ore sources, a 3.0% improvement in
head grade and increases in concentrator recoveries at Mogalakwena Mine and
Unki Mine of 24% and 46% respectively.
The impact of safety stoppages on our underground mines reduced during the
quarter following positive joint and pro-active effort from our management,
Government and the workforce. We experienced 13 safety stoppages at our own
mining operations during the first quarter of 2012, compared with 21 in the
first quarter of 2011 and 32 in the fourth quarter of 2011. The safety
stoppages experienced during the quarter were more localised and were
addressed over shorter periods than in prior periods. This benefit to
production was partly offset by a decrease of 11% in surface ore sources
milled. Surface ore sources at Tumela Mine were depleted during January 2012
while Union North Mine processed significantly lower volumes compared with
the first quarter of 2011, also due to depletion.
Increased production from Unki, Mogalakwena, Khuseleka, Khomanani,
Siphumelele, Bathopele, Thembelani, Dishaba and Union South mines
contributed to the higher production, offset by lower volumes at Tumela and
Union North mines. Mogalakwena`s head grade and recoveries improved by 5%
and 24% year on year respectively during the first quarter of 2012 as a
result of the improved concentrating process. Rustenburg Tailings
Retreatment plant increased production by 2.7 koz or 29%.
Joint ventures equivalent refined platinum production, inclusive of both
mined and purchased production net of concentrate sold, was down 7% year on
year at 169 koz. This was largely as a result of lower production at
Modikwa, Kroondal and BRPM mines. Production at Modikwa and BRPM mines was
negatively impacted by safety stoppages as a consequence of fatal accidents
during the quarter. A strike over wage negotiations further exacerbated
production losses at Modikwa mine. A wage agreement was signed on 10 April
2012 and operations at Modikwa have subsequently resumed. The production
loss was partly offset by improved output at Bokoni, Marikana and Mototolo
mines. Bokoni mine`s production continues to benefit from the operational
restructuring initiatives which were implemented in March 2011.
Refined platinum production decreased by 24% year on year to 403 koz from
533 koz, despite higher output from mining operations. This was due to
planned annual maintenance at the converting plant in Rustenburg, which was
completed by the end of March 2012. We expect the delayed equivalent refined
production to be processed by the end of June 2012 as the converting plant
reached steady state operating level shortly after the completion of
maintenance.
The overall 4E built-up head grade for the first quarter of 2012 was 3.20g/t
compared to 3.14g/t in the same period in 2011, underpinned by higher head
grade from platreef (Mogalakwena mine) and main sulphide zone (Unki mine)
operations. The 4E built-up head grade for Mogalakwena mine and Unki mine
increased by 5% and 18% year on year respectively. Overall, the Merensky and
surface sources head grades declined by 8.4% and 8.3% respectively year on
year, while the UG2 head grade was unchanged over the same period.
Productivity (average output per operating employee per month) improved by
4% from 5.86mSquared in the first quarter of 2011 to 6.12mSquared in the
first quarter of 2012, underpinned by the increased production from our own
underground mines. Own mines` labour productivity improved by 10% year on
year.
GUIDANCE FOR THE REMAINDER OF 2012
Anglo American Platinum expects the platinum market to be in balance in
2012. Depressed automotive demand growth in Europe continues in line with
economic concerns, however primary supply side challenges were heightened
during the quarter. Increased investor participation led the recovery in the
platinum price, albeit with increased volatility.
Anglo American Platinum remains confident of refining and selling between
2.5 and 2.6 million ounces of platinum in 2012, subject to market
conditions. Despite the maintenance related delay in refined production
during the quarter, sales remained in line with contractual and market
requirements.
Notwithstanding the difficult inflationary environment, Anglo American
Platinum maintains its cash unit costs target of between R14,000 and R14,500
per equivalent refined platinum ounce for 2012. This implies growth in cash
operating cost per refined platinum ounce of between 3% and 7%, well below
expected mining inflation. This unit cost target is based on an expected
production level of 2.6 million ounces of platinum.
Anglo American Platinum incurred R1.12 billion of capital expenditure
(excluding capitalised interest) during the quarter. Anglo American Platinum
continues to expect to incur up to R8.0 billion of capital expenditure for
the year.
Anglo American Platinum is committed to the highest standards of safety and
continues to make a meaningful and sustainable difference in the development
of the communities around its operations.
The above forecast information has not been reviewed and reported on by
Anglo American Platinum`s external auditors.
QUARTERLY PRODUCTION STATISTICS
Quarter ended % Change
March March December Mar `12 Mar `12
2012 2011 2011 vs Mar vs Dec
`11 `11
Production
statistics
Tonnes mined 000 -9% 2%
- 17,143 18,819 16,812
opencast(Note
1)
Tonnes broken 000 2% -3%
- underground 6,321 6,208 6,513
mines
Tonnes milled 000 3% 4%
10,410 10,102 10,023
Merensky/ per 1 1:4.1:4.1 1: 4.1: 1: 4.2:
UG2/Other Merensky 4.5 4.1
tonnes (Note tonne
2)
4E Built-up g/tonne 2% -2%
head grade milled 3.20 3.14 3.27
Merensky reef -8% -7%
4.84 5.28 5.21
UG2 reef 0% -3%
3.72 3.72 3.82
Platreef 5% 3%
(Mogalakwena 2.96 2.81 2.86
Mine)
MSZ reef 18% -7%
(Unki Mine) 3.53 2.99 3.78
Surface -8% -3%
sources 1.13 1.23 1.17
including
WLTR
Equivalent 000 oz
refined
platinum
production
(Note 3)
Own mines and 12% 5%
WLTR 412.9 367.6 391.8
Joint -9% -5%
ventures - 57.8 63.5 60.8
mines
Joint -5% -5%
ventures and 110.7 117.1 116.9
associates -
purchased
Purchases -39% -14%
from third 11.8 19.4 13.7
parties
Attributable 5% 2%
to Anglo 593.2 567.6 583.2
American
Platinum
Total refined
production
Platinum 000 oz -24% -43%
402.8 532.9 710.0
Palladium 000 oz -18% -40%
235.0 288.2 392.7
Rhodium 000 oz -37% -44%
53.9 85.7 96.8
Gold 000 oz -16% -14%
24.0 28.5 28.0
PGMs 000 oz -24% -41%
801.3 1,055.7 1,353.0
Nickel 000 -2% -8%
tonnes 4.7 4.8 5.1
Copper 000 -17% 0%
tonnes 2.9 3.5 2.9
Refined 000 oz -24% -43%
platinum 402.8 532.9 710.0
production
Mining 000 oz -27% -46%
300.6 410.2 560.6
Purchase of 000 oz -31% -43%
concentrate 85.2 122.7 149.4
Toll refining 000 oz
(Note 4) 17.0 - -
Employees (Managed
operations: end of
period)
Own enrolled 6% -1%
employees 51,675 48,553 51,987
Contractor 29% 0%
employees 6,255 4,838 6,253
Total 9% -1%
employees for 57,930 53,391 58,240
managed
operations
Metres 4% -4%
squared per 6.12 5.86 6.39
total
operating
employee
Notes:
1. Includes Mogalakwena, Modikwa, and Marikana opencast operations
2. Other tonnes includes both Platreef and other surface sources
3. Mine`s production converted to equivalent refined production using
Anglo American Platinum`s standard smelting and refining recoveries
4. Toll refining represents metal refined in respect of the recycling
project and returned to the third party
Johannesburg, South Africa
19 April 2012
Sponsor
RAND MERCHANT BANK (a division of FirstRand Bank Limited)
For further information, please contact:
Investors: Media:
Kgapu Mphahlele Mary Jane Morifi
+27 (0) 11 373 6239 +27 (0) 11 373 6638
kgapu.mphahlele@angloamerican.com mary-jane.morifi@angloamerican.com
Mpumi Sithole
+27 (0) 11 373 6246
mpumi.sithole@angloamerican.com
Notes to editors:
Anglo American Platinum Limited is a member of the Anglo American plc Group
and is the world`s leading primary producer of platinum group metals. The
company is listed on the Johannesburg Securities Exchange (JSE). Its mining,
smelting and refining operations are based in South Africa. Elsewhere in the
world, the Group owns Unki Platinum Mine in Zimbabwe and is actively
exploring in Brazil. Amplats has a number of joint ventures with several
historically disadvantaged South African consortia as part of its commitment
to the transformation of the mining industry. Amplats is committed to the
highest standards of safety and continues to make meaningful and sustainable
difference in the development of the communities around its operations.
www.angloamericanplatinum.com
Anglo American is one of the world`s largest mining companies, is
headquartered in the UK and listed on the London and Johannesburg stock
exchanges. Anglo American`s portfolio of mining businesses spans bulk
commodities - iron ore and manganese, metallurgical coal and thermal coal;
base metals - copper and nickel; and precious metals and minerals - in which
it is a global leader in both platinum and diamonds. Anglo American is
committed to the highest standards of safety and responsibility across all
its businesses and geographies and to making a sustainable difference in the
development of the communities around its operations. The company`s mining
operations, extensive pipeline of growth projects and exploration activities
span Southern Africa, South America, Australia, North America, Asia and
Europe. www.angloamerican.com
Date: 19/04/2012 08:00:15 Supplied by www.sharenet.co.za
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