Wrap Text
Production report for the first quarter ended 31 March 2014
ANGLO AMERICAN PLATINUM LIMITED
Incorporated in the Republic of South Africa
Registration number 1946/022452/06
Share code: AMS
ISIN: ZAE000013181
("the Company")
PRODUCTION REPORT FOR THE FIRST QUARTER ENDED 31 MARCH 2014
OVERVIEW
- Journey to zero harm continues – no fatalities in Q1 2014
- Rustenburg, Amandelbult and Union production severely impacted by industrial action
which began on 23 January 2014 and is ongoing
- 185 koz of platinum production has been lost as a result of the strike
- The industrial action has not impacted production at Mogalakwena, Unki or the Joint
Venture operations Record production performance from Mogalakwena and Joint
Venture operations
- Equivalent refined platinum production of 167 koz from own mines representing a 57%
decrease due to the on-going industrial action
- Joint Venture and associate mined and purchased production of 183 koz, a 5% increase,
owing to operational efficiency improvements across the portfolio
- Processing operations were not affected by the industrial action and refined platinum
production remained in line with Q1 2013, supplemented by a reduction in the pipeline
stock
- Sales to customers continue at normal levels, supplemented by refined platinum stock
- In respect of the outlook for 2014 as a whole and taking into account the production lost
to date, full year production is expected to reduce to approximately 2.1Moz, with
potential for further downside revisions from the ongoing industrial action
REVIEW OF THE QUARTER
OPERATIONS
Tragically, post quarter-end, on 9 April 2014 a fatal injury occurred at Waterval Smelter. The
journey to zero harm continues and improvements to safety performance were realised in
Q1 2014 with zero fatalities. The Lost Time Injury Frequency Rate ("LTIFR") at managed
operations also showed an improvement to 0.55 in Q1 2014 from 1.09 in Q1 2013 (per
200,000 hours worked).
Total equivalent refined platinum production (equivalent ounces are mined ounces
expressed as refined ounces) decreased by 39% to 357 koz, compared to 583 koz in Q1 2013.
Production from own operations and the Western Limb Tailings Retreatment plant ("WLTR")
was 167 koz, a 57% decrease. This was due to the industrial action from the Association of
Mineworkers and Construction Union ("AMCU"), which commenced on 23 January 2014,
and through placing mines on care and maintenance. The industrial action continued
through the remainder of Q1 2014 and is on-going.
Rustenburg, Amandelbult and Union are the operations most affected by the industrial
action and production decreased by 84%, 75% and 86% respectively. In Q1 2014, 185 koz of
platinum production has been lost as a result of the strike from all operations. In addition,
the impact of placing Khomanani Mine, Khuseleka 2 shaft and Union North Mine declines on
long term care and maintenance in August 2013, resulted in a decrease in production of 43
koz.
The industrial action has not impacted production at Mogalakwena and Unki mines.
Production at Mogalakwena increased by 3% due to higher achieved 4E(1) built-up head
grade(2) and through the mining productivity improvement programs introduced during
2013. Unki improved production performance by 4% due to higher volumes delivered to the
concentrator and throughput at the mills.
The Joint Venture ("JV") operations have also been largely unaffected by the industrial
action, with the exception of Modikwa which experienced a one week strike before a new
wage agreement was signed with the National Union of Mine Workers ("NUM"). Production
from JVs and associates (mined and purchased) increased by 5% to 183 koz, with good
performance from Kroondal due to operational efficiencies. Bokoni also performed well,
with production up by 25% compared to Q1 2013 due to the commencement of the mining
of the open-pit in June 2013.
Processing operations have not been affected by the industrial action. Refined platinum
production totalled 435 koz, in line with production in Q1 2013. However as mined
production reduced, total refined production was supplemented by a drawdown of pipeline
inventory. As a result, sales to customers have continued at normal levels, supplemented by
refined platinum stock.
4E grade is the grade measured as the combined content of the four most valuable precious
metals: platinum, palladium, rhodium and gold
Built-up head grade is the total 4E grams produced from the concentrating process from
concentrate, metallic (where applicable) and tailings, divided by the total tonnes milled.
Refined production of rhodium increased by 7% whilst refined production of palladium
decreased by 3%. This variance was due to a different source of feed as certain mines’ supply
was impacted by the industrial action and the different processing times of the metals.
Nickel production increased by 48% as production in Q1 2013 was impacted by technical
challenges, and good progress has been made in the ramp up of production in the nickel
tank house.
In respect of the outlook for 2014 as a whole and taking into account the production lost to
date, full year production is expected to reduce to approximately 2.1Moz, with potential for
further downside revisions from the ongoing industrial action. Previous guidance for 2014
was 2.3 Moz to 2.4 Moz. Sales expectations are unchanged while cost indications will be
reviewed only when the industrial action has been resolved.
ANGLO AMERICAN PLATINUM
FIRST QUARTER PRODUCTION REPORT
PERIOD 1 JANUARY 2014 TO 31 MARCH 2014
Unaudited Unaudited Unaudited
Quarter ended Quarter ended Quarter ended
31 March 2014 31 March 2013 31 December 2013
Attributable equivalent refined Pt
production1 000 oz 357 583 520
Own Mines and WLTR 000 oz 167 390 311
Joint ventures - mined 000 oz 60 57 60
Joint ventures and associates - purchased 000 oz 123 117 138
Third parties - purchased 000 oz 12 19 12
Sale of metal in
concentrate 000 oz -5 - -
Gross refined production
Platinum 000 oz 435 439 692
Palladium 000 oz 257 264 428
Rhodium 000 oz 61 57 84
Gold 000 oz 25 23 27
PGMs 000 oz 856 874 1 341
Nickel - Refined 000 tonne 4.9 3.3 5.2
2
Nickel - Matte 000 tonne 1.4 - 0.1
Copper - Refined 000 tonne 3.2 2.0 1.8
Copper - Matte2 000 tonne 1.2 - 1.4
Pt
from: Mining 000 oz 317 321 494
Purchase of concentrate 000 oz 119 115 198
Toll refining3 000 oz - 3 -
Total
Operations
Tonnes Milled 000 tonne 6702 10072 8 816
Grade (4E) g/t 2.86 3.25 3.19
Merensky milled % 3 11 7
Equivalent refined
production 000 oz 357 583 520
Rustenburg Operations excl WLTR
Tonnes Milled 000 tonne 454 2422 1285
Grade (4E) g/t 3.05 3.63 3.75
Merensky milled % 20 35 32
Equivalent refined
production 000 oz 22 142 78
Union Mine
Tonnes Milled 000 tonne 166 1043 762
Grade (4E) g/t 2.87 3.39 3.24
Merensky milled % 1 1 2
Equivalent refined
production 000 oz 7 50 35
Amandelbult Operations
Tonnes Milled 000 tonne 339 1159 981
Grade (4E) g/t 3.80 4.41 4.66
Merensky milled % 16 18 15
Equivalent refined
production 000 oz 20 81 73
Mogalakwena
Mine
Tonnes Milled 000 tonne 2755 2772 2652
Grade (4E) g/t 3.16 2.91 3.11
Equivalent refined
production 000 oz 89 87 88
Unki Platinum
Mine
Tonnes Milled 000 tonne 378 362 414
Grade (4E) g/t 3.17 3.44 3.41
Equivalent refined
production 000 oz 15 14 17
Joint Venture Operations - mined (excl
POC)
Tonnes Milled 000 tonne 1199 1098 1173
Grade (4E) g/t 3.58 3.77 3.64
Merensky milled % 3 - -
Equivalent refined
production 000 oz 60 57 60
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
5 The cash operating cost / equivalent refined Pt oz excludes Twickenham
Note: WLTR refers to Western Limb Tailings Retreatment plant. POC refers to Purchase of Concentrate
Note: 4E Grade is the grade measured as the combined content of the four most valuable precious metals: platinum, palladium, rhodium
and gold
Johannesburg, South Africa
24 April 2014
For further information, please contact:
Investors: Media:
Emma Chapman Mpumi Sithole
(UK) +44 (0) 20 7968 8451 (SA) +27 (0) 11 373 6246
(SA) +27 (0) 11 373 6239 mpumi.sithole@angloamerican.com
emma.chapman@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. 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. Anglo American Platinum 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. 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 company’s 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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