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Anglo American Platinum Limited Production Report for the second quarter ended 30 June 2014
ANGLO PLATINUM LIMITED
Incorporated in the Republic of South Africa
Registration number 1946/022452/06
Share code: AMS
ISIN: ZAE000013181
17 JULY 2014
NEWS RELEASE
ANGLO AMERICAN PLATINUM LIMITED
PRODUCTION REPORT FOR THE SECOND QUARTER ENDED 30 JUNE 2014
OVERVIEW
- A three-year wage agreement reached on 24 June 2014; brought to an end the 5 month long legal industrial action.
- Platinum equivalent refined production decreased by 40% to 358,200 ounces
- Rustenburg, Amandelbult and Union production severely impacted by industrial action
- Record production performance from Mogalakwena and Joint Venture operations
- Processing operations were not affected by the industrial action and refined platinum production remained in line with Q2 2013,
supplemented by a reduction in the pipeline stock
- Sales to customers continued at normal levels, supplemented by refined platinum stock
REVIEW OF THE QUARTER
Total equivalent refined platinum production decreased by 40% to 358 koz, primarily due to the industrial action, which began on 23 January
2014, affecting the Rustenburg, Amandelbult and Union mines in South Africa. The industrial action concluded on 24 June 2014 and
employees returned to work on 25 June 2014. The total platinum ounces lost due to the industrial action for the second quarter was 239 koz.
The total lost production from the industrial action during H1 2014 was 424 koz and a further 16 koz has been lost during the ramp up of
operations as “safe return to work” procedures are undertaken before mining can commence. In addition, second quarter production was 43.7
koz less due to the consolidation of mine at Rustenburg and Union as part of the restructuring during 2013.
The industrial action has not impacted production at the Mogalakwena and Unki mines or the majority of the joint operations and associates.
Mogalakwena mine’s production increased by 23% to 95.6 koz, due to higher achieved 4E(1) built-up head grade and increased concentrator
throughput which was supported by mining productivity improvements. The Unki mine production was constant at 15 koz.
Underground mining performance reflected the effect of the industrial action. At Amandelbult, output decreased to 14 koz, a decline of 84%;
Rustenburg (excluding Western Limb Tailings Retreatment) decreased to 13 koz, a decline of 91%; and Union fell to 4 koz, a decline of 91%.
Production was also impacted by the shaft closures at Rustenburg and Union mines.
Production from the Joint Venture and associate portfolio increased by 3% to 188 koz. All operations except Modikwa mine delivered
production increases versus 2013. Production at Modikwa mine was impacted in June 2014 by Section 54 safety notices that were issued by
the Department of Mineral Resources post the regrettable fatal incident that occurred on the 3 June 2014.
Refined platinum production decreased by 28% to 421 koz. While the processing operations were not directly impacted by the strike action,
lower mined supply impacted refined production. A drawdown of pipeline inventory helped offset some of the shortfall. Refined production of
palladium decreased by 8%, while refined production of rhodium decreased by 30%. 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. Refined nickel production
increased by 105% as production in the nickel tank house continues to improve. Nickel and copper matte production in Q2 2013 includes
previously stockpiled matte delivered to third parties for processing.
Sales to both contractual and non-contractual (spot) customers continued at normal levels supplemented by refined platinum stock.
(1) 4E grade is the grade measured as the combined content of the four most valuable precious metals: platinum, palladium, rhodium and gold
(2) 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.
ANGLO AMERICAN PLATINUM
SECOND QUARTER PRODUCTION REPORT
PERIOD 01 APRIL 2014 TO 30 JUNE 2014
Unaudited Unaudited Unaudited
Quarter ended Quarter ended Quarter ended
30 June 2014 30 June 2013 31 March 2014
Attributable equivalent refined Pt production (note 1) 000 oz 358 594 357
Own Mines and WLTR 000 oz 157 397 167
Joint ventures – mined 000 oz 58 58 60
Joint ventures and associates – purchased 000 oz 130 124 123
Third parties – purchased 000 oz 13 16 12
Sale of metal in concentrate 000 oz – – -5
Gross refined production
Platinum 000 oz 421 582 435
Palladium 000 oz 295 320 257
Rhodium 000 oz 49 70 61
Gold 000 oz 27 16 25
PGMs 000 oz 850 1,101 856
Nickel – Refined 000 tonne 5.5 3.3 4.9
Nickel – Matte (note 2) 000 tonne 2.7 5.4 1.4
Copper – Refined 000 tonne 3.8 1.9 3.2
Copper – Matte (note 2) 000 tonne 2.3 4.1 1.2
Pt from: Mining 000 oz 278 443 317
Purchase of concentrate 000 oz 142 139 119
Toll refining (note 3) 000 oz – – –
Total operations
Tonnes milled 000 tonne 6,783 10,330 6,702
Grade (4E) g/t 2.77 3.24 2.86
Merensky milled % 1 11 3
Equivalent refined production 000 oz 358 594 357
Rustenburg operations excl WLTR
Tonnes Milled 000 tonne 337 2,481 454
Grade (4E) g/t 2.59 3.78 3.05
Merensky milled % 2 34 20
Equivalent refined production 000 oz 13 151 22
Union Mine
Tonnes Milled 000 tonne 102 1,019 166
Grade (4E) g/t 2.72 3.26 2.87
Merensky milled % 17 1 1
Equivalent refined production 000 oz 4 47 7
Amandelbult operations
Tonnes Milled 000 tonne 449 1,290 339
Grade (4E) g/t 2.07 4.42 3.80
Merensky milled % 2 18 16
Equivalent refined production 000 oz 14 89 20
Mogalakwena Mine
Tonnes Milled 000 tonne 3,073 2,639 2,755
Grade (4E) g/t 3.00 2.83 3.16
Equivalent refined production 000 oz 96 78 89
Unki Platinum Mine
Tonnes Milled 000 tonne 399 393 378
Grade (4E) g/t 3.07 3.45 3.17
Equivalent refined production 000 oz 15 15 15
Joint Venture operations – mined (excl POC)
Tonnes Milled 000 tonne 1,173 1,140 1,199
Grade (4E) g/t 3.58 3.63 3.58
Merensky milled % 3 – 3
Equivalent refined production 000 oz 58 58 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
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
17 July 2014
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
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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