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Production report for the fourth quarter ended 31 December 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 FOURTH QUARTER ENDED 31 DECEMBER 2016
OVERVIEW
- Tragically, one fatality at Union mine in Q4 2016
- Total platinum production (expressed as metal in concentrate) was 2% higher than the prior year at
610,100 ounces. Q4 production is seasonally lower than Q3 due to the impact of the public holidays.
- Strong operational performances achieved by retained own mines, with Mogalakwena up 5% and
Unki up 7%, as well as from JV operations’ BRPM and Kroondal
- Following the run-out of molten furnace matte at the Waterval Smelter on 10 September 2016,
refined production was impacted by 59,000 in the quarter, with total full year refined production
impacted by 65,000 platinum ounces
- The Number 1 furnace at Waterval smelter has subsequently been successfully rebuilt and is
operating at full capacity
- Refined platinum production decreased 15% to 631,600 ounces for the quarter, reflecting the impact
of the Waterval smelter run out reducing feed to the Precious Metal Refinery
- Sales volumes of 606,500 ounces were down 2%, impacted by the Waterval smelter run-out which
reduced refined platinum available to sell. In addition, refined production was used in part to rebuild
refined inventory
REVIEW OF THE QUARTER
OPERATIONS
Tragically we had one loss of life due to a work related incident during the fourth quarter of 2016. Mr.
Peter Lesholla was fatally injured in a conveyer belt incident on 24 September 2016 at Union Mine. An
independent and comprehensive investigation into this fatal incident is under way to understand the
circumstances of and learn from this fatal incident in order to create a safer work environment for all.
The Lost Time Injury Frequency Rate (“LTIFR”) per 200,000 hours worked at managed operations
reduced 36% to 0.61 compared to the LTIFR of 0.95 of Q4 2015.
Total platinum production (metal in concentrate) was up 2% to 610,100 ounces as a result of improved
performances during the quarter at Mogalakwena, Unki, and at JV operations’ Kroondal and BRPM.
Twickenham was on care and maintenance in the second half of 2016, which led to a reduction of 4,200
unprofitable platinum ounces in Q4 2016.
Mogalakwena production increased by 5% to 103,400 ounces driven primarily by a 2% increase in
grade to 3.1g/t.
Amandelbult production was constant at 121,100 ounces.
Unki production increased 7% to 19,900 ounces driven by increased tonnes milled and higher grade.
Joint venture production (mined and purchased but excluding third party purchase of concentrate)
decreased by 5% to 189,500 ounces. A record production for the quarter at Kroondal and strong
production from BRPM was offset by lower production at Bokoni due to closures of unprofitable
production from UM2 and Vertical Shafts at the end of 2015. On a normalised basis, excluding
production from the closure of the two vertical shafts, production at Bok oni increased 4% year-on-year.
Following the restructuring at Union in 2016, which led to a significant reduction in labour, the mine
continued to perform in line with its optimised mine plan, despite the impact of a fatality, maintaining
production at 38,100 ounces.
Total mined production from Rustenburg operations including the Western Limb Tailings Retreatment
increased 9% year-on-year and 7% on Q3 2016, reflecting a quarter of production not impacted by
safety issues. The sale of Rustenburg completed on 1 November 2016. From this date production from
Rustenburg was recognised as third party purchase of concentrate and excluded from own production .
Rustenburg own mine production therefore decreased by 62%, which is due to only one month of
production in Q4 2016.
Production from third party purchase of concentrate increased by 90,900 to 93,900 ounces due to the
inclusion of Rustenburg purchase of concentrate from 1 November 2016. This was partially offset by a
reduction in purchase of concentrate from other producers.
Refined platinum production decreased by 15% to 631,600 ounces, following the Waterval Smelter run -
out in September and subsequent furnace rebuild impacting refined production by 59,000 ounces in Q4
and 65,000 ounces in total during 2016. Mining and concentrating activities were unaffected.
The Number 1 furnace at Waterval smelter has been successfully rebuilt and is operating at full capacity.
The rebuild was completed ahead of schedule and at lower expected capital expenditure of R95 million.
Sales volumes for the quarter of 606,500 ounces were less than refined production of 631,600 ounces,
due to the impact of the smelter run out which reduced refined production and therefore sales. In
addition, refined production was used in part to rebuild refined inventory, which had been drawn down
to supplement sales during the precious metals refinery safety stoppage.
Anglo American Platinum 2016 Q4 2016 Q4
Fourth Quarter Production Report 2016 2015 vs 2016 vs
Period 1 October 2016 - 31 December 2016 Q4 Q4 2015 Q4 Q3 2016 Q3
Attributable Pt production
Total Production 000 oz 610.1 598.0 2% 619.1 (1)%
Own mines + projects 000 oz 244.4 242.1 1% 247.6 (1)%
Joint ventures - mined volume 000 oz 60.1 63.0 (5)% 65.0 (7)%
Joint ventures and associates - purchased 000 oz 129.3 136.2 (5)% 142.2 (9)%
Third parties - purchased 000 oz 93.9 3.0 2993% 8.6 998%
Rustenburg (incl. WLTR) and Union 000 oz 82.3 153.8 (46)% 155.8 (47)%
Gross refined production
Platinum 000 oz 631.6 744.8 (15)% 694.6 (9)%
Palladium 000 oz 397.5 468.4 (15)% 412.9 (4)%
Rhodium 000 oz 92.2 85.7 8% 86.8 6%
Gold 000 oz 33.9 29.4 15% 24.1 41%
Platinum group metals (6E) plus Gold 000 oz 1,322.8 1,465.3 (10)% 1,356.7 (3)%
Nickel - Refined 000 tonne 6.1 7.4 (17)% 7.0 (13)%
Copper - Refined 000 tonne 3.3 4.7 (29)% 3.8 (12)%
Platinum sales volume
Total Sales 000 oz 606.5 621.8 (2)% 588.0 3%
Total Operations
Tonnes Milled 000 tonne 8,332 10,357 (20)% 10,788 (23)%
Grade (4E) g/t 3.41 3.24 5% 3.19 7%
M&C production 000 oz 610.1 598.0 2% 619.1 (1)%
Mogalakwena mine
Tonnes Milled 000 tonne 3,054 3,046 0% 3,246 (6)%
Grade (4E) g/t 3.10 3.05 2% 2.92 6%
M&C production 000 oz 103.4 98.5 5% 100.7 3%
Amandelbult mine
Tonnes Milled 000 tonne 1,784 1,782 0% 1,829 (2)%
Grade (4E) g/t 4.24 4.20 1% 4.25 (0)%
M&C production 000 oz 121.1 120.9 0% 128.3 (6)%
Unki Platinum mine
Tonnes Milled 000 tonne 450 442 2% 414 9%
Grade (4E) g/t 3.53 3.44 3% 3.48 1%
M&C production 000 oz 19.9 18.6 7% 18.2 9%
Joint Venture Operations - mined (excl POC)
Tonnes Milled 000 tonne 1,152 1,162 (1)% 1,185 (3)%
Grade (4E) g/t 3.54 3.77 (6)% 3.78 (6)%
M&C production 000 oz 60.1 63.0 (5)% 65.0 (7)%
Rustenburg mine (incl WLTR)
Tonnes Milled 000 tonne 1,277 3,230 (60)% 3,415 (63)%
Grade (4E) g/t 2.53 2.50 1% 2.55 (1)%
M&C production - mined volume only 000 oz 44.2 115.8 (62)% 118.1 (63)%
M&C production mined and purchased 000 oz 126.6 115.8 9% 118.1 7%
Union mine
Tonnes Milled 000 tonne 615 607 1% 690 (11)%
Grade (4E) g/t 3.99 4.02 (1)% 3.62 10%
M&C production 000 oz 38.1 38.0 0% 37.7 1%
Achieved metal prices
Platinum (US$/oz) 949 915 4% 1,083 (12)%
Palladium (US$/oz) 682 617 10% 659 3%
Rhodium (US$/oz) 726 743 (2)% 646 12%
Realised basket price (US$/oz) 1,820 1,656 10% 1,936 (6)%
Realised basket price (ZAR/oz) 25,274 23,487 8% 27,174 (7)%
Johannesburg, South Africa
26 January 2017
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
emma.chapman@angloamerican.com 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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