Wrap Text
Production report for the second quarter ended 30 June 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 SECOND QUARTER ENDED 30 JUNE 2017
OVERVIEW
- Tragically two fatalities in Q2 2017
- Total platinum production (expressed as metal in concentrate) increased 5% to 617,100 ounces
- Strong performances from own mine operations with Mogalakwena up 15%, Amandelbult up 4%
and Unki up 10%
- Total purchase of concentrate (joint venture, associates and third party) increased by 89% due to the
inclusion of material from Sibanye (formally Rustenburg)
- Refined platinum production decreased by 29% to 528,700 ounces. There has been a build-up of
work in progress inventory as a result of the Waterval Furnace Number 1 run-out in Q4 2016, and
the planned rebuild of Waterval Number 2 Furnace which delayed 65,000 ounces of refined
production into H2 2017
- In addition there was a high pressure water leak at the Convertor Plant (ACP) which resulted in a
deferment of c.90,000 ounces of refined production from Q2 2017 into H2 2017
- Sales volumes of 600,500 ounces were down 26% as Q2 2016 had additional sales of metal
reflecting the recovery at the Precious Metals Refinery (PMR) after a planned stock take and safety
stoppage in Q1 2016.
REVIEW OF THE QUARTER
OPERATIONS
Anglo American Platinum tragically had two fatalities in Q2 2017. Mr Nkoliseko Jikumlambo was
seriously injured in a fall of ground incident at Amandelbult’s Tumela mine on 8 April 2017 and sadly
passed away on 21 April in hospital. Mr Kagiso Ramokgatla was fatally injured in a loader incident on
7 June 2017 at Amandelbult’s Dishaba mine. Deepest condolences go to their families, friends and
colleagues. Comprehensive independent investigations into these fatal incidents are under way to
understand the circumstances and learn from them in order to create a safer work environment for all,
and the Company remains committed to zero harm.
The Lost Time Injury Frequency Rate (“LTIFR”) per 200,000 hours worked at managed operations has
seen a significant improvement, reducing 13% to 0.63. (Q2 2016: 0.73).
Total platinum production (expressed as metal in concentrate) increased 5% to 617,100 ounces with
strong performances from Mogalakwena, Amandelbult and Unki. 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 1,900 ounces.
With the sale of Rustenburg in November 2016, production is now treated as third party purchase of
concentrate from Sibanye, resulting in own mine production decreasing by 22%.
Mogalakwena production increased by 15% to 113,900 ounces due to a strong increase in built-up head
grade of 7% resulting from mining in a particular high grade area in line with the mine plan, and a 9%
increase in concentrator throughput due to North Concentrator Plant optimisations which increased the
runtime.
Amandelbult production increased by 4% to 110,500 ounces due to improved plant recoveries and
increased throughputs from underground sources.
Unki production was up 10% to 19,500 ounces, as continued efforts in efficient mining height control
have reduced mining waste, leading to increased grade and higher production.
Union production decreased by 3% to 39,800 ounces due to a reduction in mining of Merensky ore
which reduced the overall grade. The sale of Union to Siyanda Resources was announced on 15
February 2017 and is expected to complete by year-end.
Joint venture and associates production (mined and purchased) was down 1% to 201,100 ounces
(64,300 ounces relating to own mined share of joint ventures and 136,800 ounces purchase of
concentrate from joint ventures and associates). Production from BRPM was up 10% to 52,900 ounces
as the Styldrift project ramps up in line with expectations. Modikwa was also up 2% to 32,000 ounces
as a result of stoping efficiencies and improvements in productivity. Production from Bokoni, Mototolo
and Kroondal offset these increases, with Bokoni down 10% to 19,500 as a result of the closure of the
opencast operations and safety related stoppages; Mototolo down 7% to 29,500 as a result of lower
grade and Kroondal down 5% to 67,100 primarily due to lower grade and a plant shutdown which
impacted production for 7 days.
Third party purchase of concentrate increased by 126,400 ounces to 132,300 ounces largely due to the
inclusion of material from Sibanye (formally Rustenburg), which has been reported as third party
purchase of concentrate since November 2016. Other third party purchases, largely from Maseve
increased to 4,300 ounces (Q2 2016: 3,100 ounces) as the mine ramps up.
Refined platinum production decreased by 29% to 528,700 ounces primarily due to the planned
Waterval Number 2 Furnace rebuild and a high pressure water leak at the Converter Plant.
Following the Waterval smelter run-out in Q3 2016, the Number 1 furnace was successfully rebuilt in
Q4 2016 and is running at steady-state. The Number 2 furnace underwent planned maintenance and
has successfully ramped up to steady-state. The backlog in processing pipeline material of 65,000
platinum ounces following the run-out in 2016 is expected to be made up during H2 2017.
A high-pressure water leak at the Converter Plant impacted one converter plant (Phase A) of the
operation on 4 June 2017. The second converter plant (Phase B) was heated up and returned to steady
state production 10 days later. The time required to reheat Phase B created a backlog of material,
deferring 90,000 ounces of refined production from Q2 2017 into H2 2017. The result of the planned
rebuild of Waterval Number 2 furnace and ACP Phase A event has impacted refined production for the
period, and therefore lead to lower sales volumes.
Sales volumes for the quarter of 600,500 ounces were down 26% due to the decrease in refined
platinum production, however was more than refined production of 528,700 ounces, due to reducing
refined inventory to normalised levels, which had been built in Q2 2016 during the PMR stoppage.
GUIDANCE
Full year production guidance remains unchanged at 2.35 – 2.40 million platinum ounces.
Anglo American Platinum Q2 2017 Q2 2017
Second Quarter Production Report Q2 Q2 vs Q1 vs
Period 1 April 2017 - 30 June 2017 2017 2016 Q2 2016 2017 Q1 2017
Platinum production
Total Production 000 Pt oz 617.1 585.8 5% 571.8 8%
Own mined 000 Pt oz 348.0 443.5 (22)% 324.6 7%
Mogalakwena 000 Pt oz 113.9 98.8 15% 111.9 2%
Amandelbult 000 Pt oz 110.5 106.2 4% 97.1 14%
Unki 000 Pt oz 19.5 17.8 10% 18.9 3%
Joint ventures - own mined 000 Pt oz 64.3 66.8 (4)% 59.0 9%
Union 000 Pt oz 39.8 41.2 (3)% 37.7 6%
Rustenburg (inc WLTR) 000 Pt oz - 110.8 (100)% - 0%
Projects - Twickenham 000 Pt oz - 1.9 (100)% - 0%
Purchase of concentrate 000 Pt oz 269.1 142.3 89% 247.2 9%
Joint ventures & associates - purchase of concentrate 000 Pt oz 136.8 136.4 0% 123.7 11%
Third party - purchase of concentrate 000 Pt oz 132.3 5.9 2142% 123.5 7%
Gross refined production
Platinum 000 Pt oz 528.7 747.7 (29)% 576.9 (8)%
Palladium 000 Pt oz 373.1 472.3 (21)% 353.4 6%
Rhodium 000 Pt oz 82.8 90.7 (9)% 73.7 12%
Gold 000 Pt oz 29.3 22.3 31% 24.7 19%
Platinum group metals (6E) plus gold 000 Pt oz 1,150.2 1,485.9 (23)% 1,143.9 1%
Nickel 000 tonne 6.0 6.5 (7)% 5.1 17%
Copper 000 tonne 3.5 3.7 (6)% 3.2 7%
Platinum sales volume
Total Sales 000 Pt oz 600.5 808.4 (26)% 518.8 16%
Total Production
Tonnes Milled 000 tonne 7,619 10,988 (31)% 6,955 10%
Grade (4E) g/t 3.41 3.00 14% 3.47 (2)%
M&C production 000 Pt oz 617.1 585.8 5% 571.8 8%
Mogalakwena mine
Tonnes Milled 000 tonne 3,508 3,224 9% 3,178 10%
Grade (4E) g/t 3.02 2.82 7% 3.13 (3)%
M&C production 000 Pt oz 113.9 98.8 15% 111.9 2%
Amandelbult mine
Tonnes Milled 000 tonne 1,766 1,693 4% 1,575 12%
Grade (4E) g/t 3.80 3.91 (3)% 3.82 (1)%
M&C production 000 Pt oz 110.5 106.2 4% 97.1 14%
Unki mine
Tonnes Milled 000 tonne 447 426 5% 436 3%
Grade (4E) g/t 3.46 3.38 2% 3.50 (1)%
M&C production 000 Pt oz 19.5 17.8 10% 18.9 3%
Joint venture operations - mined only
Tonnes Milled 000 tonne 1,220 1,233 (1)% 1,133 8%
Grade (4E) g/t 3.71 3.75 (1)% 3.63 2%
M&C production 000 Pt oz 64.3 66.8 (4)% 59.0 9%
Union mine
Tonnes Milled 000 tonne 678 716 (5)% 633 7%
Grade (4E) g/t 3.89 3.77 3% 3.99 (2)%
M&C production 000 Pt oz 39.8 41.2 (3)% 37.7 6%
Achieved metal prices
Platinum (US$/oz) 941 1,006 (7)% 977 (4)%
Palladium (US$/oz) 804 571 41% 754 7%
Rhodium (US$/oz) 980 693 41% 856 14%
Average exchange rate achieved on sales ZAR/US$ 13.19 15.11 (13)% 13.29 (1)%
Realised basket price (US$/Pt oz) 1,796 1,560 15% 1,898 (5)%
Realised basket price (ZAR/Pt oz) 23,688 23,583 0% 25,225 (6)%
Johannesburg, South Africa
20 July 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 to our customers around the world.
As a responsible miner - of diamonds (through De Beers), platinum and other precious metals, copper,
nickel, iron ore and coal - we are the custodians of what are precious natural resources. We work
together with our key partners and stakeholders to unlock the long-term value that those resources
represent for our shareholders and for the communities and countries in which we operate – creating
sustainable value and making a real difference.
www.angloamerican.com
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