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Anglo American Platinum Limited Quarterly Review & Production Report For The Period 01 January 2013 To 31 March 2013
ANGLO AMERICAN PLATINUM LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1946/022452/06)
ISIN: ZAE000013181
Share Code: AMS
(“the Company”)
ANGLO AMERICAN PLATINUM LIMITED QUARTERLY REVIEW AND PRODUCTION
REPORT FOR THE PERIOD 01 JANUARY 2013 TO 31 MARCH 2013
KEY FEATURES
- Improved safety performance at managed operations with LTIFR decreasing by 25% year
on year to 1.10 from 1.47 per 200 000 hours worked achieved in 1Q 2012. Regrettably, 1
employee lost his life in 1Q 2013
- Group equivalent refined platinum production was down 2% year on year to 583 koz due to
the intermittent illegal industrial action during the quarter
- Equivalent refined platinum production from own operations down 6% year on year mainly
due to intermittent illegal industrial action and lower production at Unki mine
- Equivalent refined platinum production from joint ventures and associates was up 3% year
on year to 174 koz due to higher production volumes across all mines, offsetting the
suspension of non-managed pooled and shared mine at Marikana in 2Q 2012
- Refined platinum production increased by 9% year on year to 439 koz due to impact of the
prolonged converting plant shutdown in 1Q 2012
- Labour productivity up 3% year on year to 6.28m² per operating employee due to improved
productivity and reduced safety stoppages
REVIEW OF THE QUARTER
Group equivalent refined platinum production (equivalent ounces are mined ounces
expressed as refined ounces) for the first quarter of 2013 decreased by 2% year on year to
583 koz from 593 koz during the first quarter of 2012 due to the intermittent illegal industrial
actions at our underground mines in South Africa and lower production at Unki mine.
Equivalent refined platinum production from own operations was 390 koz, down 23 koz or
6% year on year mainly due to the intermittent illegal industrial actions at Rustenburg
(Bathopele, Khuseleka, Khomanani, Siphumelele, and Thembelani), Union (North and South)
and Amandelbult (Tumela and Dishaba) mining operations. Anglo American Platinum lost
approximately 16 koz of equivalent refined platinum production during the first quarter of
2013 as result of this illegal industrial action.
Equivalent refined platinum production at Rustenburg mines was flat year on year while
output from Amandelbult and Union mines decreased by 15 koz or 16% and 8 koz or 14%
year on year respectively. Unki mine’s equivalent refined platinum production decreased by 4
koz or 22% year on year due to lower head grade and decline in tonnes milled as a result of
a depletion of pre-production stockpiles. This was partly offset by a 4 koz or 31% increase in
production at Western Limb Tailings Retreatment (WLTR) largely driven by improved head
grades and recoveries. Mogalakwena mine output was 87 koz of equivalent refined platinum,
up 1 koz or 1% year on year due to higher throughput at the concentrators.
Equivalent refined platinum production from joint ventures and associates, inclusive of both
mined and purchased production, was up 5 koz or 3% year on year to 174 koz during the first
quarter of 2013. Equivalent refined platinum production in the first quarter of 2012 included
16 koz from Marikana which was placed on care and maintenance in June 2012; on a
comparative basis, excluding Marikana, operating mines improved production by 21 koz or
14% year on year. This was due to higher production volumes across all mines.
Equivalent refined platinum ounces purchased from third parties increased by 7 koz or 58%
year on year from 12 koz to 19 koz in the first quarter of 2013.
Refined platinum production at 439 koz, increased by 9% year on year due to impact of the
prolonged converting plant shutdown in 1Q 2012. Refined production of palladium and
rhodium increased by 12% and 6% respectively, while nickel decreased by 30%. Palladium
and rhodium variances are a result of a different source mix from operations and different
pipeline processing times for each metal. Nickel production was impacted by an extended
base metal refinery shutdown, timed to coincide with a major Eskom shutdown, and
additional delays were experienced with starting nickelic hydroxide production following the
shutdown in February 2013. The base metals refinery was, however, running steadily by the
end of the quarter as these matters had been resolved.
GUIDANCE FOR THE REMAINDER OF 2013
Despite the uncertain outlook for global economic growth, Anglo American Platinum believes
that the global platinum market is likely to be balanced in 2013 as result of reduced
production by Anglo American Platinum and possible supply disruptions. If South African
platinum production returns to pre-strike levels, then the market would be oversupplied.
Anglo American Platinum is expected to refine and sell between 2.2 and 2.3 million ounces
of platinum in 2013, subject to portfolio review implementation.
Anglo American Platinum’s cash unit costs target is approximately R16,500 per equivalent
refined platinum ounce for 2013. This unit cost target is based on an expected production
level of 2.3 million ounces of platinum.
Anglo American Platinum incurred R1.06 billion of capital expenditure (excluding capitalised
interest) during the quarter. Anglo American Platinum remains on track to incur capital
expenditure of between R6 and R7 billion for the year.
Anglo American Platinum and the Department of Mineral Resources (DMR) have been
engaged in a bilateral consultation process for the implementation of the portfolio review
proposals. The parties have extended the consultation process for a further 30 days until 30
April 2013 to allow sufficient time for the conclusion of the process. Anglo American Platinum
and the DMR will make a requisite announcement on the outcome of the consultation
process at the appropriate time.
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.
Any reference to future financial performance, included in this announcement, has not been
reviewed or reported on by the Company’s auditors and are not construed to be an earnings
forecast.
ANGLO AMERICAN PLATINUM
FIRST QUARTER PRODUCTION REPORT
PERIOD 01 JANUARY 2013 TO 31 MARCH 2013
Unaudited Unaudited Unaudited
Quarter ended Quarter ended Quarter ended
31 Mar 2013 31 Mar 2012 31 Dec 2012
Attributable equivalent refined Pt production (see
note 1) 000 oz 583 593 416
Own Mines and WLTR
000 oz 390 413 230
Joint ventures - mined
000 oz 57 58 63
Joint ventures and associates - purchased 000 oz 117 111 110
Third parties - purchased
000 oz 19 12 12
Gross refined production
Platinum
000 oz 439 403 704
Palladium
000 oz 264 235 413
Rhodium
000 oz 57 54 91
Gold
000 oz 23 24 19
PGMs 000 oz 874 801 1 365
Nickel 000 tonne 3.3 4.7 3.9
Copper 000 tonne 2.0 2.9 2.5
Pt from: Mining 000 oz 321 301 512
Purchase of concentrate 000 oz 115 85 185
Toll refining (see note
2) 000 oz 3 17 7
Pt Pipeline stock adjustment 000 oz - - -
Pipeline movement 000 oz 147 207 -280
Total Operations
Tonnes Milled 000 tonne 10 072 10 410 7 035
Grade (4E) g/t 3.24 3.20 3.22
Merensky milled % 11 10 6
Equivalent refined production 000 oz 583 593 416
Rustenburg Operations excl WLTR
Tonnes Milled 000 tonne 2 422 2 456 978
Grade (4E) g/t 3.63 3.58 3.46
Merensky milled % 35 31 30
Equivalent refined production 000 oz 142 143 54
Union Operations
Tonnes Milled 000 tonne 1 043 1 056 487
Grade (4E) g/t 3.39 3.52 3.18
Merensky milled % 1 3 1
Equivalent refined production 000 oz 50 58 21
Amandelbult Operations
Tonnes Milled 000 tonne 1 159 1 418 641
Grade (4E) g/t 4.41 4.13 5.70
Merensky milled % 18 19 16
Equivalent refined production 000 oz 81 96 59
Mogalakwena Mine
Tonnes Milled 000 tonne 2 772 2 670 2 525
Grade (4E) g/t 2.91 2.96 2.82
Equivalent refined production 000 oz 87 86 71
Unki Platinum Mine
Tonnes Milled 000 tonne 362 391 379
Grade (4E) g/t 3.44 3.53 3.37
Equivalent refined production 000 oz 14 18 14
Joint Venture Operations - mined (excl POC)
Tonnes Milled 000 tonne 1 098 1 093 1 144
Grade (4E) g/t 3.69 3.75 3.86
Merensky milled % - 2 -
Equivalent refined production 000 oz 57 58 63
Prices achieved
Platinum $/oz 1 628 1 590 1 595
Palladium $/oz 723 676 648
Rhodium $/oz 1 166 1 449 1 140
Nickel
$/tonne 16 816 19 206 16 891
Average exchange rate R/$ 8.96 7.76 8.70
Cash operating cost / equivalent refined Pt oz R 15 887 14 098 23 001
NOTES:
1. Mine's production converted to equivalent refined production using Amplats' standard smelting and refining recoveries
2. Toll refining represents metal refined in respect of the recycling project and it was returned to the third party
3. Grades and production are reflected inclusive of low grade surface material at operations
Johannesburg, South Africa
19 April 2013
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: 19/04/2013 08:07:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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