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Anglo American Platinum Limited quarterly review and production report for the period 01 July 2013 to 30 September
ANGLO AMERICAN PLATINUM LIMITED
Incorporated in the Republic of South Africa
Registration number 1946/022452/06
Share code: AMS
ISIN: ZAE000013181
(the Company)
ANGLO AMERICAN PLATINUM LIMITED QUARTERLY REVIEW AND PRODUCTION
REPORT FOR THE PERIOD 01 JULY 2013 TO 30 SEPTEMBER 2013
KEY FEATURES
- Regrettably 4 employees lost their lives in Q3 2013
- Mining operations at Khomanani mine and Khuseleka 2 shaft were successfully
suspended and integrated into surrounding operations as at 19 August 2013 as part
of the implementation of the restructuring plan
- Group equivalent refined platinum production was up 5% from 595 koz in Q2 2013 to
623 koz in Q3 2013
- Equivalent refined platinum production from own mines, including the Western Limb
Tailings Retreatment Plant (WLTR), of 406 koz, down 5% from 426 koz in Q3 2012
- Record quarterly performance in the history of the Joint Venture portfolio at 199 koz,
up 9% year on year
REVIEW OF THE QUARTER
OPERATIONS
Safety performance in Q3 2013 proved disappointing with 4 employees losing their lives and
the year-on-year Lost Time Injury Frequency Rate at managed operations (LTIFR)
increasing from 1.07 to 1.09 per 200,000 hours worked.
Total equivalent refined platinum production (equivalent ounces are mined ounces expressed
as refined ounces) for Q3 2013 were flat at 623 koz compared to 626 koz during Q3 2012.
Quarter-on-quarter, Q3 2013 production was up 5% from 595 koz in Q2 2013.
Production from own operations including Western Limb Tailings Retreatment (WLTR) was
406 koz, down 20 koz or 5% year-on-year mainly due to the results of the planned mine
closures and challenges in redeploying staff to mines with labour shortages. Year-on-year
increases in production were recorded at Khuseleka 1 shaft and Thembelani, Unki and
Mogalakwena mines but were offset by lower production from Bathopele, Tumela and
Dishaba mines.
Production at Khomanani mine, Khuseleka 2 shaft and Union North Decline was suspended
in August, in line with the proposed restructuring plans. The resources from these mines will
now be integrated into the surrounding operations. Platinum production at Rustenburg mines
was 132 koz, down 11% year-on-year and down 13% quarter-on-quarter as a result.
Production from Bathopele decreased 18% year-on-year, where production was impacted by
the double loss of life incident in July 2013. Mine production is recovering and increasing
steadily.
Platinum production at the Tumela and Dishaba mines decreased by 10% due to shortages
of production crews and supervisors and Section 54 safety stoppages. Tumela was further
affected by a loss of life incident in August 2013. The redeployment programme of labour
following the placement of mines on care and maintenance is underway and is expected to
yield benefits from Q4 2013.
Mogalakwena production was 20% higher compared to 3Q 2012 production. The increase
was as a result of higher milled volume and improved concentrator recovery. Unki
production increased 13% year-on-year to 17 koz as underground mining volumes
increased. New production from the Twickenham mine has improved, with production
increasing 107% over Q2 2013 to 3.1 koz in Q3 2013.
Equivalent refined platinum production from joint ventures and associates, inclusive of both
mined and purchased production, was up 9% year on year at 199 koz, which was a record
quarterly performance of the Joint Venture portfolio (excluding Marikana). This was due to
higher production volumes at Bokoni (up 27%), Mototolo (up 16%) and Kroondal (up 14%)
due to productivity improvement initiatives. The record production was despite mill
maintenance at Kroondal and an extended shutdown of the Bafokeng-Rasimone Platinum
Mine (BRPM) mill to replace the primary mill discharge end. Equivalent refined platinum
ounces purchased from third parties were flat year-on-year at 17 koz in Q3 2013.
Refined platinum production at 666 koz, increased by 3% year-on-year and by 14% quarter-
on-quarter, primarily due to improved performance at the Anglo American Platinum
Converting Process (ACP) plant which is operating at a steady state level after issues were
resolved at the end of Q2 2013.
Refined production of palladium and rhodium decreased 6% and 6% respectively. Palladium
and rhodium variances are a result of a different source mix from operations and different
pipeline processing times for each metal. Nickel production saw a 44% quarter-on-quarter
increase as the technical challenges in the new nickel tank house are being resolved and
ramp up continues.
STRIKE ACTION
Anglo American Platinum experienced industrial action at its Rustenburg and the North of the
Pilanesburg operations beginning on 27th September 2013 due to the non-resolution of the
restructuring plans. This was resolved on 10 October 2013 and employees on strike returned
to work on 11 October 2013.
Anglo American Platinum confirms that as a result of the industrial action in September 2013,
44,000 Platinum ounces were lost.
GUIDANCE FOR THE REMAINDER OF 2013
In July 2013, we guided to the market that our production target for 2013 would be 2.3 million
platinum ounces. This guidance remains in place notwithstanding the industrial action. As a
result of restructuring of the Company, our short to medium term forecast production will
remain at 2.2Moz to 2.4Moz.
Our cash operating cost for Q3 2013 of R17,381 was in line with guidance for the full year of
R17,000 per equivalent refined platinum ounce, but will likely be impacted in Q4 2013 by the
restructuring, industrial action and the outcome of the wage negotiations.
ANGLO AMERICAN PLATINUM
THIRD QUARTER PRODUCTION REPORT
PERIOD 01 JULY 2013 TO 30 SEPTEMBER 2013
Unaudited Unaudited Unaudited
Quarter ended Quarter ended Quarter ended
30 September 30 September 30 June 2013
2013 2012
Attributable equivalent refined Platinum 000 oz
production (see note 1) 623 626 595
Own Mines including WLTR 000 oz
406 426 397
Joint ventures - mined 000 oz
66 60 58
Joint ventures and associates - purchased 000 oz
134 124 124
Third parties - purchased 000 oz
17 17 16
Gross refined
production
Platinum 000 oz
666 649 582
Palladium 000 oz
369 392 320
Rhodium 000 oz
85 91 70
Gold 000 oz
34 39 16
PGMs 000 oz
1 249 1 287 1 101
Nickel - 000 tonne
Refined 4.9 3.7 3.4
Nickel Matte 000 tonne
(see note 2) 0.3 - 5.4
Copper - 000 tonne
Refined 2.6 2.7 1.9
Copper Matte 000 tonne
(see note 2) 0.3 - 4.1
Platinum Mining 000 oz
from: 515 488 443
Purchase of concentrate 000 oz
151 150 139
Toll refining (see 000 oz
note 3) - 11 -
Total Operations
Tonnes Milled 000 tonne
10 296 10 607 10 330
Grade (4E) g/t
3.36 3.32 3.24
Merensky %
milled 9 10 11
Equivalent refined 000 oz
production 623 626 595
Rustenburg Operations excl
WLTR
Tonnes Milled 000 tonne
1 982 2 329 2 481
Grade (4E) g/t
4.10 3.87 3.78
Merensky %
milled 35 34 34
Equivalent refined 000 oz
production 132 148 151
Union Mine
Tonnes Milled 000 tonne
962 1 289 1 019
Grade (4E) g/t
3.47 3.15 3.26
Merensky %
milled 1 1 1
Equivalent refined 000 oz
production 48 57 47
Amandelbult
Operations
Tonnes Milled 000 tonne
1 332 1 650 1 290
Grade (4E) g/t
5.19 4.86 4.42
Merensky %
milled 18 19 18
Equivalent refined 000 oz
production 111 123 89
Mogalakwena Mine
Tonnes Milled 000 tonne
2 968 2 510 2 639
Grade (4E) g/t
2.75 2.82 2.83
Equivalent refined 000 oz
production 83 69 78
Unki Platinum Mine
Tonnes Milled 000 tonne
400 387 393
Grade (4E) g/t
3.32 3.35 3.45
Equivalent refined 000 oz
production 17 15 15
Joint Venture Operations - mined (excl POC)
Tonnes Milled 000 tonne
1 267 1 113 1 140
Grade (4E) g/t
3.75 3.67 3.63
Merensky %
milled - - -
Equivalent refined 000 oz
production 66 60 58
Cash operating cost / equivalent refined Platinum R
oz 17 381 15 377 16 674
1 Mine's production converted to equivalent refined production using Amplats' standard smelting and refining recoveries
2 Nickel and copper refined through 3rd parties is now shown as production of nickel matte and copper matte.
3 Toll refining represents metal refined in respect of the recycling project and it was returned to the
third party
4 Grades and production are reflected inclusive of low grade surface material at operations
Note: WLTR refers to the Western Limb Tailings Retreament. POC refers to purchased concentrate.
NB: Grade 4E is the grade measured as the combined content of the four most valuable precious metals: platinum, palladium, rhodium and gold.
Johannesburg, South Africa
18 October 2013
Sponsor
RAND MERCHANT BANK (a division of FirstRand Bank Limited)
For further information, please contact:
Investors: Media:
Emma Chapman Mary Jane Morifi
+44 (0) 20 7968 8451 +27 (0) 11 373 6638
emma.chapman@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 (the Company) is a member of the Anglo American plc.
Group (the Group) and is the worlds 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. Anglo American
Platinum 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. The
Company 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.
www.angloamericanplatinum.com
Anglo American is one of the worlds largest mining companies, is headquartered in the UK
and listed on the London and Johannesburg stock exchanges. Our portfolio of mining
businesses meets our customers changing needs and spans bulk commodities iron ore
and manganese, metallurgical coal and thermal coal; base metals and minerals copper,
nickel, niobium and phosphates; and precious metals and minerals in which we are a
global leader in both platinum and diamonds. At Anglo American, we are committed to
working together with our stakeholders our investors, our partners and our employees to
create sustainable value that makes a real difference, while upholding the highest standards
of safety and responsibility across all our businesses and geographies. The companys
mining operations, pipeline of growth projects and exploration activities span southern Africa,
South America, Australia, North America, Asia and Europe.
www.angloamerican.com
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