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ANGLO AMERICAN PLATINUM LIMITED - Production report for the second quarter ended 30 June 2016

Release Date: 20/07/2016 08:07
Code(s): AMS     PDF:  
Wrap Text
Production report for the second quarter ended 30 June 2016

ANGLO AMERICAN PLATINUM LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1946/022452/06)
Share Code: AMS
ISIN: ZAE000013181
("The Company" or "Anglo American Platinum")

ANGLO AMERICAN PLATINUM LIMITED
PRODUCTION REPORT FOR THE SECOND QUARTER ENDED 30 JUNE 2016

OVERVIEW

Tragically, 3 fatalities occurred during the quarter

Group platinum production (expressed as metal in concentrate) was marginally higher than the comparative period in 2015 at 586,000 ounces

Strong operational performances achieved by Unki, Union and the joint ventures operations

Refined platinum production increased by 33% to 748,000 ounces for the quarter, reflecting the recovery at the Precious Metals Refinery after a planned
stock take and safety stoppage in Q1 2016

REVIEW OF THE QUARTER

OPERATIONS

Tragically we had three losses of life due to work related incidents during the second quarter of 2016. Mr Mlamuli Kubheka and Mr Mveliso Ntamehlo were
fatally injured in a winch related incident at Amandelbult mine on 26 April 2016 and Mr Tamsanqa Ngqambiya sustained fatal injuries in a fall of ground at
Rustenburg Mine on 3 June 2016. Our condolences go to the families, friends and colleagues of Mr Kubheka, Mr Ntamehlo and Mr Ngqambiya. These tragic
incidents came after a record fatality-free period of 323 days highlighting the Company's focus on improving safety.

The Lost Time Injury Frequency Rate ("LTIFR") per 200,000 hours worked at managed operations reduced 35% to 0.72 compared to the LTIFR of 1.11 of Q2
2015.

Total platinum production was up 1% to 586,000 ounces as a result of improved performances during the quarter at Unki, Union and the joint venture
operations.

Mogalakwena increased total milled volumes by 6% in Q2 2016, however a return to normalised lower grades resulted in a 3% decrease in platinum production
to 99,000 ounces.

Amandelbult production increased 1% to 106,000 ounces. This strong mining performance was offset by a single incident on 26 April 2016 that resulted in two
fatalities, and the subsequent mine stoppage which resulted in a loss of 18,000 ounces.

Unki production increased by 12% to 18,000 ounces for the period. The increased production was due to improved underground mining efficiencies which
resulted in increased milled volume, and a 9% increase in grade due to improved mining height control.

Joint venture production (mined and purchased) increased 9% to 203,000 ounces due to strong production performances from Modikwa, Mototolo, BRPM and
Kroondal which was partly offset by Bokoni. Production at Bokoni decreased by 14% as a result of community unrest causing 10 days production loss.

Platinum production from Rustenburg operations including the Western Limb Tailings Retreatment (WLTR) was down 8% to 112,000 ounces. Mine production was
lower due to the impact of the Section 54 safety stoppage associated with the fatality, mining through difficult ground areas, and
marginally lower grade. WLTR increased 27% to 14,000 ounces in part due to new production from the East tailings dams.

Following the significant restructuring at Union, the mine continued to improve performance against its optimised mine plan with production 31% higher at
41,000 ounces mainly due to improved underground mining efficiencies and increased stability at the concentrator plant.

Refined platinum production increased by 33% to 748,000 ounces. The increase is a result of refining the backlog of production not processed in Q1 2016 as
a result of a planned stock take at the PMR and a Section 54 Stoppage which closed the PMR for 12 days, and materially impacted production for a further 37
days. The remainder of the shortfall in refined production will be caught up in H2 2016.

Anglo American Platinum                                                                   2016 Q2          2016 Q2
Second Quarter Production Report                                            2016    2015       vs    2016       vs
Period 01 April 2016 - 30 June 2016                                           Q2      Q2  2015 Q2      Q1  2016 Q1
Attributable Pt production
Total Production                                               000 oz        586     581       1%     567       3%
Own mines                                                      000 oz        225     228     (1)%     240     (6)%
Joint ventures - mined volume                                  000 oz         67      59      13%      61      10%
Joint ventures and associates - purchased                      000 oz        136     126       8%     124      10%
Third parties - purchased                                      000 oz          4      13    (68)%       2     167%
Rustenburg (incl. WLTR) and Union                              000 oz        154     154     (0)%     141       9%

Gross refined production
Platinum                                                       000 oz        748     561      33%     261     187%
Palladium                                                      000 oz        472     388      22%     182     160%
Rhodium                                                        000 oz         91      77      18%      48      90%
Gold                                                           000 oz         22      30    (27)%      28    (20)%
Platinum group metals (6E) plus Gold                           000 oz      1 486   1 180      26%     622     139%
Nickel - Refined                                               000 tonne     6.4     6.0       8%     5.7      13%
Copper - Refined                                               000 tonne     3.7     4.0     (8)%     3.3      13%

Platinum Sales Volumes
Total Sales                                                    000 oz        808     636      27%     413      96%

Total Operations
Tonnes Milled                                                  000 tonne  10 988   9 799      12%  10 466       5%
Grade (4E)                                                     g/t          3.00    3.27     (8)%    3.11     (4)%
M&C production                                                 000 oz      585.7   580.9       1%   567.0       3%

Mogalakwena mine
Tonnes Milled                                                  000 tonne   3 224   3 054       6%   3 099       4%
Grade (4E)                                                     g/t          2.82    3.04     (7)%    3.26    (14)%
M&C production                                                 000 oz       98.8   102.3     (3)%   109.0     (9)%

Amandelbult mine
Tonnes Milled                                                  000 tonne   1 693   1 540      10%   1 752     (3)%
Grade (4E)                                                     g/t          3.91    4.14     (6)%    3.88       1%
M&C production                                                 000 oz      106.2   105.4       1%   110.9     (4)%

Unki Platinum mine
Tonnes Milled                                                  000 tonne     426     405       5%     429     (1)%
Grade (4E)                                                     g/t          3.38    3.10       9%    3.42     (1)%
M&C production                                                 000 oz       17.8    15.9      12%    18.6     (5)%

Joint Venture Operations - mined (excl POC)
Tonnes Milled                                                  000 tonne   1 233   1 157       7%   1 123      10%
Grade (4E)                                                     g/t          3.75    3.71       1%    3.71       1%
M&C production                                                 000 oz       66.8    59.3      13%    60.9      10%

Rustenburg mine (excluding Western limb tailings retreatment)
Tonnes Milled                                                  000 tonne   1 700   1 927    (12)%   1 667       2%
Grade (4E)                                                     g/t          3.53    3.53       0%    3.46       2%
M&C production                                                 000 oz       98.3   111.6    (12)%    94.5       4%

Western Limb tailings retreatment
Tonnes Milled                                                  000 tonne   1 940   1 055      84%   1 790       8%
Grade (4E)                                                     g/t          1.15    1.39    (18)%    1.05      10%
M&C production                                                 000 oz       14.0    11.0      27%    11.8      19%

Union mine
Tonnes Milled                                                  000 tonne     716     557      28%     576      24%
Grade (4E)                                                     g/t          3.77    3.72       1%    3.88     (3)%
M&C production                                                 000 oz       41.2    31.4      31%    34.3      20%

Achieved metal prices
Platinum (USD/oz)                                                          1 006   1 133    (11)%     903      11%
Palladium (USD/oz)                                                           571     772    (26)%     522       9%
Rhodium (USD/oz)                                                             693   1 088    (36)%     663       4%
Realised basket price (USD/Pt oz)                                          1 560   2 144    (27)%   1 529       2%
Realised basket price (ZAR/Pt oz)                                         23 583  25 840     (9)%  24 218     (3)%

Johannesburg, South Africa
20 July 2016

Sponsor:
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

For further information, please contact:

Investors:                                      Media:
Emma Chapman                                    Mpumi Sithole
(SA) +27 (0) 11 373 6239                        (SA) +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. 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 a meaningful and sustainable difference in the development of the communities around its operations.

www.angloamericanplatinum.com

Anglo American is a globally diversified mining business. Our portfolio of world-class competitive mining operations and undeveloped resources provides the
raw materials to meet the growing consumer-driven demands of the world's developed and maturing economies. Our people are at the heart of our business. It
is our people who use the latest technologies to find new resources, plan and build our mines and who mine, process and move and market our products - from
diamonds (through De Beers) to platinum and other precious metals and copper - to our customers around the world.

As a responsible miner, we are the custodians of those precious resources. We work together with our key partners and stakeholders to unlock the long-term
value that those resources represent for our shareholders, but also for the communities and countries in which we operate - creating sustainable value and
making a real difference.

www.angloamerican.com






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