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Production report for the third quarter ended 30 September 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 THIRD QUARTER ENDED 30 SEPTEMBER 2017
OVERVIEW
- Tragically one fatality in Q3 2017
- Total platinum production (expressed as metal in concentrate) maintained at 621,400 ounces, with
production efficiencies across the portfolio offset by the closure of unprofitable production at Bokoni
which was placed on care and maintenance
- Strong performances from own mine operations with Mogalakwena up 15% and Unki up 9%, partially
offset by Amandelbult down 5%
- Joint venture production (mined and purchase of concentrate) down 4% due to a temporary stoppage
of the concentrator at Mototolo, partially offset by strong performances from Modikwa and Kroondal
- Purchase of concentrate production from associates was down 5% primarily due to the decision to
place Bokoni on care and maintenance and shut c.85,000 unprofitable ounces on an annualised
basis, partially offset by a strong performance from BRPM
- Refined platinum production was up 29% quarter-on-quarter as part of the built-up inventory
resulting from the planned Waterval smelter rebuild and the high pressure water-leak at the ACP
earlier in the year was refined
- Sales volumes of 663,600 were up 13%
REVIEW OF THE QUARTER
SAFETY
Anglo American Platinum tragically had one fatality in Q3 2017. Mr Douw Swart, an artisan boiler-maker
suffered a chemical burns related incident on 21 August 2017 at the Precious Metals Refinery (PMR)
and sadly succumbed to his injuries on 5 September 2017 in hospital. Our deepest condolences go to
his family, friends and colleagues. An independent and comprehensive investigation is under way to
understand the circumstances and learn from them in order to create a safer work environment for all.
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 marginal improvement, reducing to 0.76 (Q3 2016: 0.78).
PRODUCTION
Total platinum production (expressed as metal in concentrate) was flat at 621,400 ounces with strong
performances from Mogalakwena, Unki and Union, partially offset by reduced production from Bokoni
mine which was placed on care and maintenance, as well as lower production from Mototolo.
Own mined production from managed mines
Own mine production decreased by 23% as a result of the sale of Rustenburg in November 2016, which
became third party purchase of concentrate.
Excluding Rustenburg, own mine production from managed mines increased 4% to 297,400 ounces.
Mogalakwena production increased 15% to 116,300 ounces due to a 5% increase in built-up head
grade in line with the mine plan, and a 6% increase in tons milled through the concentrators.
Amandelbult production decreased by 5% due to lower available ore reserves and increased
development as the mine transitions from Tumela Upper to Dishaba Lower UG2. This was partially
offset by increased production of lower grade surface material, with an overall 11% reduction in grade
compared to Q3 2016. Amandelbult production in Q3 2017 was up by 10% compared to Q2 2017.
Unki production was up 9% to 19,800 ounces, as continued efforts in efficient mining height control
have reduced mining waste, leading to increased grade and higher production.
Union production increased 6% to 39,900 ounces as a result of improved stoping efficiencies. The sale
of Union to Siyanda Resources was announced on 15 February 2017 and is expected to complete by
year-end, after which production from Union will be treated as purchase of concentrate from third parties.
Joint venture own mined production and purchase of concentrate
Total joint venture production and purchase of concentrate was down 4% to 124,400 ounces (of which
62,200 ounces is own mined production and 62,200 ounces is purchase of concentrate). Mototolo
production decreased by 49%. A decision was made to temporarily close the Mototolo concentrator
plant following seepage detected on the tailings dam wall. Our risk assessment indicated that deposition
on the tailings dam should cease until the remedial action has been completed, which should be by
year-end. Mototolo mine will continue to operate and stockpile the ore on surface for future treatment.
The impact of the temporary closure of the concentrator plant will impact production by c.45,000
platinum ounces in 2017. Alternative milling plans are being evaluated to assess the timing impact of
the mitigation plans.
The decrease at Mototolo was partially offset by Modikwa which increased by 10% to 37,200 ounces,
and Kroondal, which increased by 7% to 73,100 ounces due to production efficiencies.
Purchase of concentrate from associates
Purchase of concentrate from associates was down 5% to 73,500 ounces. Bokoni mine decreased by
32% due to the ramp-down of mining activity following the operation being placed on care and
maintenance in the quarter. This was concluded on 1 October 2017 and will result in a reduction of
unprofitable platinum ounces of c.20,000 in Q4 2017 and c.85,000 on an annualised basis. This was
partially offset by strong production from BRPM, which increased by 7% due to strong underground
production and ramp-up of Styldrift in line with mine plans.
Purchase of concentrate from third parties
Third party purchase of concentrate increased by 117,600 ounces to 126,200 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. Maseve produced 483 ounces for the period, as the
mine was placed on care and maintenance by the owners Platinum Group Metals Limited. This will
result in a reduction of c.60,000 platinum ounces of third party purchase of concentrate, if the mine had
been performing in line with ramp-up plans for 2017.
Refined production and sales volumes
Refined platinum production decreased marginally by 2% to 684,100 ounces, as the comparative period
refined additional inventory that had built-up following a section 54 safety stoppage at the PMR in
Q1 2016. Refined platinum production was up 29% compared to Q2 2017, as additional inventory was
refined following the build-up as a result of the planned Waterval Number 2 furnace rebuild in Q1 2017,
and the high pressure water-leak at the ACP in Q2 2017. The remaining backlog in inventory will be
refined in Q4 2017. Sales volumes for the quarter of 663,600 ounces were up 13%.
GUIDANCE
Production guidance (metal in concentrate) has been revised to 2.30 - 2.35 million platinum ounces
(previous 2.35 – 2.40 million platinum ounces), due to c.90,000 ounces of unprofitable production from
Bokoni (c.30,000 ounces), which was placed on care and maintenance, and Maseve (c.60,000 ounces),
which will no longer produce third party purchase of concentrate. In addition, the temporary closure of
the Mototolo concentrator will impact full year production. Operational efficiencies across the portfolio,
especially at high-margin Mogalakwena have partially offset the reduction in unprofitable production.
As a result, refined production guidance has also been revised to 2.40 – 2.45 million platinum ounces
(previous guidance of 2.45 – 2.50 million platinum ounces). Refined production guidance is higher than
produced guidance as built-up pipeline inventory of c.100,000 ounces will be refined by year-end.
Anglo American Platinum Q3 2017 Q3 2017 YTD 2017
Third Quarter Production Report Q3 Q2 Q1 Q4 Q3 vs vs YTD YTD vs
Period 1 July 2017 - 30 September 2017 2017 2017 2017 2016 2016 Q2 2017 Q3 2016 2017 2016 YTD 2016
Platinum production
Total Production 000 Pt oz 621.4 617.1 571.9 610.0 619.2 1% 0% 1,810.4 1,771.8 2%
Own mined 000 Pt oz 359.5 348.0 324.6 386.8 468.4 3% (23)% 1,032.1 1,351.0 (24)%
Mogalakwena 000 Pt oz 116.3 113.9 111.9 103.4 100.7 2% 15% 342.1 308.5 11%
Amandelbult 000 Pt oz 121.3 110.5 97.1 121.1 128.3 10% (5)% 328.9 345.4 (5)%
Unki 000 Pt oz 19.8 19.5 18.9 19.9 18.2 2% 9% 58.2 54.6 7%
Joint ventures - own mined 000 Pt oz 62.2 64.3 59.0 60.1 65.0 (3)% (4)% 185.5 192.7 (4)%
Union 000 Pt oz 39.9 39.8 37.7 38.1 37.7 0% 6% 117.4 113.2 4%
Rustenburg (inc WLTR) 000 Pt oz - - - 44.2 118.1 0% (100)% - 333.2 (100)%
Projects - Twickenham 000 Pt oz - - - - 0.4 0% (100)% - 3.4 (100)%
Purchase of concentrate 000 Pt oz 261.9 269.1 247.3 223.2 150.8 (3)% 74% 778.3 420.8 85%
Joint ventures 000 Pt oz 62.2 64.3 59.0 60.1 65.0 (3)% (4)% 185.5 192.7 (4)%
Associates 000 Pt oz 73.5 72.5 64.7 69.2 77.2 1% (5)% 210.7 210.1 0%
Third party 000 Pt oz 126.2 132.3 123.6 93.9 8.6 (5)% 1367% 382.1 18.0 2023%
Gross refined production
Platinum 000 Pt oz 684.1 528.7 576.9 631.6 694.6 29% (2)% 1,789.7 1,703.1 5%
Palladium 000 Pt oz 450.6 373.1 353.4 397.5 412.9 21% 9% 1,177.0 1,066.8 10%
Rhodium 000 Pt oz 79.4 82.8 73.7 92.2 86.8 (4)% (9)% 235.8 225.2 5%
Gold 000 Pt oz 31.1 29.3 24.7 33.9 24.1 6% 29% 85.0 74.3 15%
Platinum group metals (6E) plus gold 000 Pt oz 1,366.5 1,150.2 1,143.9 1,322.8 1,356.7 19% 1% 3,660.6 3,464.4 6%
Nickel 000 tonne 7.0 6.0 5.1 6.1 7.1 17% (1)% 18.2 19.2 (5)%
Copper 000 tonne 4.3 3.5 3.2 3.3 3.8 23% 13% 11.0 10.8 2%
Platinum sales volume
Total Sales 000 Pt oz 663.6 600.5 518.8 606.5 588.0 11% 13% 1,782.9 1,809.2 (1)%
Total Production
Tonnes Milled 000 tonne 7,723 7,619 6,955 8,332 10,788 1% (28)% 22,297 32,242 (31)%
Grade (4E) g/t 3.44 3.41 3.47 3.41 3.19 1% 8% 3.44 3.10 11%
M&C production 000 Pt oz 621.4 617.1 571.9 610.0 619.2 1% 0% 1,810.4 1,771.8 2%
Mogalakwena mine
Tonnes Milled 000 tonne 3,475 3,508 3,178 3,054 3,246 (1)% 7% 10,161 9,569 6%
Grade (4E) g/t 3.07 3.02 3.13 3.10 2.92 2% 5% 3.07 3.00 2%
M&C production 000 Pt oz 116.3 113.9 111.9 103.4 100.7 2% 15% 342.1 308.5 11%
Amandelbult mine
Tonnes Milled 000 tonne 1,950 1,766 1,575 1,784 1,829 10% 7% 5,292 5,274 0%
Grade (4E) g/t 3.79 3.80 3.82 4.24 4.25 (0)% (11)% 3.80 4.02 (5)%
M&C production 000 Pt oz 121.3 110.5 97.1 121.1 128.3 10% (5)% 328.9 345.4 (5)%
Unki mine
Tonnes Milled 000 tonne 457 447 436 450 414 2% 10% 1,340 1,269 6%
Grade (4E) g/t 3.50 3.46 3.50 3.53 3.48 1% 0% 3.48 3.43 2%
M&C production 000 Pt oz 19.8 19.5 18.9 19.9 18.2 2% 9% 58.2 54.6 7%
Joint venture operations - mined only
Tonnes Milled 000 tonne 1,146 1,220 1,133 1,152 1,185 (6)% (3)% 3,499 3,542 (1)%
Grade (4E) g/t 3.73 3.71 3.63 3.54 3.78 0% (1)% 3.69 3.75 (2)%
M&C production 000 Pt oz 62.2 64.3 59.0 60.1 65.0 (3)% (4)% 185.5 192.7 (4)%
Union mine
Tonnes Milled 000 tonne 694 678 633 615 690 2% 1% 2,005 1,982 1%
Grade (4E) g/t 3.85 3.89 3.99 3.99 3.62 (1)% 6% 3.90 3.75 4%
M&C production 000 Pt oz 39.9 39.8 37.7 38.1 37.7 0% 6% 117.4 113.2 4%
Johannesburg, South Africa
24 October 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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