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Anglo American Platinum Limited
Production Report for the first quarter ended 31 March 2017
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 FIRST QUARTER ENDED 31 MARCH 2017
OVERVIEW
- Commitment to zero harm – no fatalities in Q1 2017
- Total platinum production (expressed as metal in concentrate) increased 1% to 571,900 ounces
- Strong performances from Mogalakwena up 3% offsetting operational challenges at Amandelbult
- With the sale of Rustenburg in November 2016, production from that operation is now treated as third
party purchase of concentrate, resulting in own mine production decreasing by 26%
- Total purchase of concentrate (joint venture, associates and third party) increased by 93% due to the
inclusion of material from Rustenburg
- Refined platinum production increased by 121% to 576,900 ounces versus Q1 2016 which was
impacted by a Section 54 safety stoppage at the Precious Metals Refinery (PMR)
- Following the Waterval smelter run-out in Q3 2016, the Number 1 furnace at Waterval smelter was
successfully rebuilt in Q4 2016 and is running at steady-state. The Number 2 furnace underwent
planned maintenance and has now been successfully rebuilt. It is ramping-up to full capacity, which
is expected in Q2 2017
- Sales volumes of 518,800 ounces were up 26% as Q1 2016 sales were impacted by lower refined
production as a result of the Section 54 safety stoppage at the PMR
REVIEW OF THE QUARTER
OPERATIONS
Anglo American Platinum remains committed to zero harm and had no fatalities in Q1 2017. The Lost
Time Injury Frequency Rate (“LTIFR”) per 200,000 hours worked at managed operations was broadly
flat at 0.74 compared to 0.73 in Q1 2016.
Total platinum production (metal in concentrate) was up 1% to 571,900 ounces with strong
performances from Mogalakwena offsetting operational challenges at Amandelbult. The increase in
production is despite the Twickenham project being placed on care and maintenance in the second half
of 2016, reducing unprofitable platinum production by 1,100 ounces.
With the sale of Rustenburg in November 2016, production from that operation is now treated as third
party purchase of concentrate, resulting in own mine production decreasing by 26%
Mogalakwena production increased by 3% to 111,900 ounces with strong plant recoveries and
increased throughput.
Amandelbult production decreased by 12% to 97,100 ounces primarily due to unusually heavy rainfall
resulting in flooded opencast pits and affected feed chutes to the concentrator plants, as well as minor
industrial action which impacted production for two days.
Unki production was up 2% to 18,900 ounces, as continued efforts in efficient mining height control
have reduced mining waste, leading to increased grade and higher production.
Union increased production by 10% to 37,700 ounces due to improved crew efficiencies, and mining
ground closer to the access shafts in line with the optimised mine plan. The sale of Union to Siyanda
Resources was announced on 15 February 2017 and is expected to complete during 2017.
Joint venture production (mined and purchased) was down marginally to 182,700 ounces (59,000
ounces relating to own mined share of joint ventures and 123,700 ounces purchase of concentrate from
joint ventures and associates). Lower production was primarily due to a two day illegal strike and lower
grade impacting Kroondal, lower grade in the current mining area at Mototolo, and a tragic fatality and
subsequent Section 54 safety stoppage which impacted production at Bokoni. This was partially offset
by increased production at BRPM’s Styldrift project and higher production at Modikwa following
extensive focus on improving plant recoveries.
Third party purchase of concentrate increased by 119,900 ounces largely due to the inclusion of
material from Rustenburg including the Western Limb Tailings Retreatment (117,600 ounces), since
the transfer of these operations to Sibanye on 1 November 2016. Other third party purchases, largely
from Maseve increased to 3,200 ounces from 1,200 as the mine ramps up.
Refined platinum production increased by 316,100 ounces to 576,900 ounces, with Q1 2016 refined
production having been materially impacted by a Section 54 safety stoppage at the Precious Metal
Refinery.
Following the Waterval smelter run-out in Q3 2016, the Number 1 furnace at Waterval smelter was
successfully rebuilt in Q4 2016 and is running at steady-state. The Number 2 furnace underwent
planned maintenance and has now been successfully rebuilt. It is ramping-up to full capacity, which is
expected in Q2 2017. The backlog in processing pipeline material of 65,000 platinum ounces following
the run-out should be made up during 2017.
Sales volumes for the quarter of 518,800 ounces were up 26% due to the increase in refined platinum
production, however was less than refined production of 576,900 ounces, due to rebuilding refined
inventory, which had been drawn down in 2016 to supplement sales during the PMR stoppage.
GUIDANCE
Full year production guidance remains unchanged at 2.35 – 2.40 million ounces.
Anglo American Platinum Q1 2017 Q1 2017
First Quarter Production Report Q1 Q1 vs Q4 vs
Period 1 January 2017 - 31 March 2017 2017 2016 Q1 2016 2016 Q4 2016
Platinum production
Total Production 000 Pt oz 571.9 567.0 1% 610.0 (6)%
Own mined 000 Pt oz 324.6 439.1 (26)% 386.8 (16)%
Mogalakwena 000 Pt oz 111.9 109.0 3% 103.4 8%
Amandelbult 000 Pt oz 97.1 110.9 (12)% 121.1 (20)%
Unki 000 Pt oz 18.9 18.6 2% 19.9 (5)%
Joint ventures - own mined 000 Pt oz 59.0 60.9 (3)% 60.1 (2)%
Union 000 Pt oz 37.7 34.3 10% 38.1 (1)%
Rustenburg (inc WLTR) 000 Pt oz - 104.3 (100)% 44.2 (100)%
Projects - Twickenham 000 Pt oz - 1.1 (100)% -
Purchase of concentrate 000 Pt oz 247.3 127.9 93% 223.2 11%
Joint ventures & associates - purchase of concentrate 000 Pt oz 123.7 124.2 (0)% 129.3 (4)%
Third party - purchase of concentrate 000 Pt oz 123.6 3.7 3241% 93.9 32%
Gross refined production
Platinum 000 Pt oz 576.9 260.8 121% 631.6 (9)%
Palladium 000 Pt oz 353.4 181.6 95% 397.5 (11)%
Rhodium 000 Pt oz 73.7 47.7 54% 92.2 (20)%
Gold 000 Pt oz 24.7 27.9 (11)% 33.9 (27)%
Platinum group metals (6E) plus gold 000 Pt oz 1,143.9 621.8 84% 1,322.8 (14)%
Nickel 000 tonne 5.1 5.7 (9)% 6.1 (16)%
Copper 000 tonne 3.2 3.3 (1)% 3.3 (3)%
Platinum sales volume
Total Sales 000 Pt oz 518.8 412.8 26% 606.5 (14)%
Total Production
Tonnes Milled 000 tonne 6,955 10,466 (34)% 8,332 (17)%
Grade (4E) g/t 3.47 3.11 12% 3.41 2%
M&C production 000 Pt oz 571.9 567.0 1% 610.0 (6)%
Mogalakwena mine
Tonnes Milled 000 tonne 3,178 3,099 3% 3,054 4%
Grade (4E) g/t 3.13 3.26 (4)% 3.10 1%
M&C production 000 Pt oz 111.9 109.0 3% 103.4 8%
Amandelbult mine
Tonnes Milled 000 tonne 1,575 1,752 (10)% 1,784 (12)%
Grade (4E) g/t 3.82 3.88 (1)% 4.24 (10)%
M&C production 000 Pt oz 97.1 110.9 (12)% 121.1 (20)%
Unki mine
Tonnes Milled 000 tonne 436 429 2% 450 (3)%
Grade (4E) g/t 3.50 3.42 2% 3.53 (1)%
M&C production 000 Pt oz 18.9 18.6 2% 19.9 (5)%
Joint venture operations - mined only
Tonnes Milled 000 tonne 1,133 1,123 1% 1,152 (2)%
Grade (4E) g/t 3.63 3.71 (2)% 3.54 2%
M&C production 000 Pt oz 59.0 60.9 (3)% 60.1 (2)%
Union mine
Tonnes Milled 000 tonne 633 576 10% 615 3%
Grade (4E) g/t 3.99 3.88 3% 3.99 (0)%
M&C production 000 Pt oz 37.7 34.3 10% 38.1 (1)%
Achieved metal prices
Platinum (US$/oz) 977 903 8% 949 3%
Palladium (US$/oz) 754 522 44% 682 11%
Rhodium (US$/oz) 856 663 29% 726 18%
Average exchange rate achieved on sales ZAR/US$ 13.29 15.84 7% 13.89 4%
Realised basket price (US$/oz) 1,898 1,529 24% 1,820 4%
Realised basket price (ZAR/oz) 25,225 24,218 4% 25,274 (0)%
Johannesburg, South Africa
24 April 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
Date: 24/04/2017 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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