ANGLO AMERICAN PLATINUM LIMITED - PGM Production Report for the Second Quarter ending 30 June 2018

Release Date: 19/07/2018 08:00
Code(s): AMS
 
Wrap Text
PGM Production Report for the Second Quarter ending 30 June 2018

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

PGM PRODUCTION REPORT FOR THE SECOND QUARTER ENDING 30 JUNE 2018


OVERVIEW

• Commitment to elimination of fatalities – no fatalities occurred in Q2 2018

• Total PGM production (expressed as 5E+Au metal in concentrate) of 1,294,700 ounces, including
  platinum production of 619,600 ounces and palladium production of 406,000 ounces was flat year
  on year, due to improved operational performances across the portfolio, despite the closure of
  unprofitable ounces from Bokoni, which was placed on care and maintenance in Q3 2017

• Own mined PGM production increased 11% to 586,300 ounces due to continued exceptional
  performance from Mogalakwena, supported by strong performances from Amandelbult and Unki

• Joint venture PGM production (mined and purchase of concentrate) increased 7% to 309,200 ounces
  due to a strong performance from Kroondal supported by processing of ore stockpile from Mototolo

• Purchase of PGM concentrate from associates was down 31% primarily due to the closure of
  unprofitable production from Bokoni in Q3 2017

• Refined PGM production increased marginally by 1% to 1,159,600 ounces, despite a planned
  smelter rebuild at Mortimer smelter in Q2 2018

• PGM sales volumes increased 9% to 1,386,000 ounces due to strong production, supplemented by
  a draw down in refined inventory


REVIEW OF THE QUARTER

SAFETY

Anglo American Platinum remains committed to the elimination of fatalities, and reports zero fatalities
in the period. The Total Recordable Case Frequency Rate (“TRCFR”) per million hours at managed
operations for the quarter improved significantly to 2.90 compared to 3.91 in Q2 2017.

PGM PRODUCTION

Total PGM production was flat, as improved operational performances across the portfolio offset the
closure of unprofitable production from Bokoni in Q3 2017. Platinum and palladium production
increased marginally to 619,600 ounces and 406,000 ounces respectively

PGM production from own-managed mines

Own mined PGM production increased by 11% to 586,300 ounces due to continued exceptional
performance from Mogalakwena, supported by strong performances from Amandelbult and Unki.
Platinum production increased by 12% to 270,600 ounces and palladium production increased by 11%
to 215,600 ounces.

Mogalakwena PGM production increased by 15% to 313,800 ounces, driven by higher grade, an
increase in concentrator throughput and higher recoveries. Platinum production increased by 17% to
133,400 ounces and palladium production increased by 14% to 145,100 ounces.

Amandelbult PGM production increased by 6% to 225,700 ounces, driven by continued operational
improvement that was supported by increased development at Dishaba as mining activities transition
to this section. Platinum production increased by 7% to 116,300 ounces and palladium production
increased by 5% to 52,200 ounces,

Unki PGM production increased by 8% to 46,800 ounces, due to increased concentrator throughput
and recoveries. Platinum production increased by 7% to 20,900 ounces and palladium production
increased by 11% to 18,400 ounces.

PGM production from joint ventures (own mined production and purchase of concentrate)

Joint venture PGM production (Mototolo, Modikwa, Kroondal) increased by 7% to 309,200 ounces (of
which 154,600 ounces is own-mined production and 154,600 ounces is purchase of concentrate).
Platinum production increased by 8% to 139,300 ounces (of which 69,600 ounces is own-mined
production and 69,600 ounces is purchased concentrate). Palladium production increased by 6% to
90,200 ounces (of which 45,100 ounces is own-mined production and 45,100 ounces is purchased
concentrate). This was driven by a strong production performance from Kroondal, supplemented by
continued processing of ore stockpiles built up at Mototolo following the temporary closure of the
concentrator in Q3 2017.

Purchases of PGM concentrate from associates

Purchase of PGM concentrate from associates decreased by 31% to 92,600 ounces, due to the closure
of Bokoni which was placed onto care and maintenance in Q3 2017. BRPM PGM production increased
1% to 92,600 ounces. Purchase of concentrate from associates decreased by 25% for platinum to
54,300 ounces and 39% for palladium to 22,000 ounces.
Purchases of PGM concentrate from third parties

Purchase of PGM concentrate from third parties increased by 17% to 306,500 ounces due to production
purchased from Union mine following its sale. Purchase of concentrate from third parties increased 16%
to 155,500 ounces for platinum and 15% to 78,100 ounces for palladium.

Refined production and sales volumes

Refined PGM production increased marginally to 1,159,600 ounces. Refined platinum production
increased by 8% to 572,700 ounces, despite a planned smelter rebuild at Mortimer smelter in Q2 2018.
Prior period refined production was adversely affected by the planned Waterval Number 2 smelter
rebuild, as well as the high-pressure water leak at the converter plant.

Refined palladium production decreased by 2% to 366,700 ounces owing to a stock count loss that
largely impacted palladium (16,900 ounces) and rhodium (22,600 ounces).

PGM sales volumes, excluding refined metals purchased from third parties as part of our trading
activities, increased 9% to 1,386,000 ounces. Platinum sales volumes increased by 6% to 636,400
ounces while palladium sales volumes increased by 23% to 405,300 ounces as refined production was
supplemented by a draw down in refined inventory. The refined inventory is expected to return to
normalised levels in H2 2018.

Full year guidance

Following the strong quarter production, full year PGM production guidance has been revised by up to
4.85-5.10 million ounces, including 2.40-2.45 million platinum ounces. Palladium production guidance
remains at 1.5 - 1.6 million palladium ounces.

Mogalakwena production increased in part due to the high-grade area mined in H1 2018. This will
normalise to an annual average of 3.18g/t, resulting in a forecast production for 2018 of 1.15 million
PGM ounces (around 480,000 platinum ounces).


Anglo American Platinum                                                                                      Q2 2018   Q2 2018
Quarter two PGM Production Report                            Q2       Q1        Q4        Q3        Q2          vs        vs
Period 1 April 2018 - 30 June 2018                          2018     2018      2017      2017      2017      Q2 2017   Q1 2018
Total M&C Production (mined and purchase of concentrate)

PGM Production (5E+Au)                          000 oz     1,294.7   1,289.2   1,220.0   1,303.4   1,291.3        0%        0%
  Platinum                                      000 oz       619.6     613.7     587.0     621.5     617.1        0%        1%
  Palladium                                     000 oz       406.0     407.7     374.9     407.5     402.2        1%      (0)%
Tonnes Milled                                000 tonne       7,284     7,099     7,401     7,723     7,619      (4)%        3%
Grade (4E)                                          g/t       3.60      3.45      3.53      3.44      3.41        6%        4%

Mined operations

Own managed mines
PGM Production (5E+Au)                          000 oz      586.3     580.4     545.7     555.4     528.3       11%         1%
  Platinum                                      000 oz      270.6     263.9     253.0     255.6     242.0       12%         3%
  Palladium                                     000 oz      215.6     219.0     195.8     202.3     194.1       11%       (2)%
Tonnes Milled                                000 tonne      5,987     5,573     5,630     5,883     5,721        5%         7%
Grade (4E)                                          g/t      3.39      3.53      3.46      3.34      3.29        3%       (4)%

Mogalakwena mine
PGM Production (5E+Au)                          000 oz      313.8     327.6     282.2     277.7     272.8       15%       (4)%
  Platinum                                      000 oz      133.4     139.4     121.7     116.3     113.9       17%       (4)%
  Palladium                                     000 oz      145.1     150.5     127.8     129.9     127.8       14%       (4)%
Tonnes Milled                                000 tonne      3,640     3,470     3,461     3,475     3,508        4%         5%
Grade (4E)                                          g/t      3.43      3.34      3.17      3.07      3.02       14%         3%

Amandelbult mine
PGM Production (5E+Au)                          000 oz      225.7     207.0     226.8     233.7     212.4        6%         9%
  Platinum                                      000 oz      116.3     103.9     114.8     119.5     108.6        7%       12%
  Palladium                                     000 oz       52.2      50.7      53.7      55.1      49.9        5%         3%
Tonnes Milled                                000 tonne      1,854     1,659     1,758     1,950     1,766        5%       12%
Grade (4E)                                          g/t      3.90      3.93      4.02      3.79      3.80        3%       (1)%

Unki mine
PGM Production (5E+Au)                          000 oz       46.8      45.8      36.6      44.2      43.1        8%         2%
  Platinum                                      000 oz       20.9      20.6      16.4      19.9      19.5        7%         1%
  Palladium                                     000 oz       18.4      17.8      14.2      17.2      16.6       11%         3%
Tonnes Milled                                000 tonne        493       445       412       457       447       10%       11%
Grade (4E)                                          g/t      3.46      3.49      3.44      3.50      3.46        0%       (1)%

Other mined operations

Union mine
PGM Production (5E+Au)                          000 oz         -       23.1      74.2      79.4      79.1     (100)%    (100)%
  Platinum                                      000 oz         -       11.6      37.1      39.9      39.8     (100)%    (100)%
  Palladium                                     000 oz         -        5.2      17.1      18.4      18.3     (100)%    (100)%
Tonnes Milled                                000 tonne         -        205       683       694       678     (100)%    (100)%
Grade (4E)                                          g/t        -       3.90      3.72      3.85      3.89     (100)%    (100)%

Joint venture operations - mined only
PGM Production (5E+Au)                          000 oz      154.6     149.0     132.9     140.2     144.1         7%        4%
  Platinum                                      000 oz       69.6      67.5      59.8      62.2      64.3         8%        3%
  Palladium                                     000 oz       45.1      43.5      38.7      42.1      42.5         6%        4%
Tonnes Milled                                000 tonne      1,297     1,320     1,088     1,146     1,220         6%      (2)%
Grade (4E)                                          g/t      3.68      3.64      3.80      3.73      3.71       (1)%        1%


Purchase of concentrate

Total purchase of concentrate
PGM Production (5E+Au)                          000 oz      553.8     536.7     467.2     528.4     539.8         3%       3%
  Platinum                                      000 oz      279.4     270.8     237.2     263.7     271.0         3%       3%
  Palladium                                     000 oz      145.2     139.8     123.4     144.8     147.1       (1)%       4%

Joint ventures
PGM Production (5E+Au)                          000 oz      154.6     149.0     132.9     140.2     144.1        7%        4%
  Platinum                                      000 oz       69.6      67.5      59.8      62.2      64.3        8%        3%
  Palladium                                     000 oz       45.1      43.5      38.7      42.1      42.5        6%        4%

Associates
PGM Production (5E+Au)                          000 oz       92.6      90.5      93.8     135.5     134.3      (31)%       2%
  Platinum                                      000 oz       54.3      52.3      54.8      73.5      72.5      (25)%       4%
  Palladium                                     000 oz       22.0      21.7      22.1      36.3      36.4      (39)%       1%

Third parties
PGM Production (5E+Au)                          000 oz      306.5     297.2     240.6     252.6     261.4       17%        3%
  Platinum                                      000 oz      155.5     151.0     122.6     128.0     134.2       16%        3%
  Palladium                                     000 oz       78.1      74.5      62.6      66.4      68.1       15%        5%

Gross refined production

PGM Production (5E+Au)                         000 oz      1,159.6   1,017.5   1,455.6   1,366.5   1,150.2        1%      14%
  Platinum                                     000 oz        572.7     502.6     722.2     684.1     528.7        8%      14%
  Palladium                                    000 oz        366.7     319.8     491.4     450.6     373.1      (2)%      15%
  Other PGMs and gold                          000 oz        220.2     195.1     242.0     231.7     248.5     (11)%      13%

Base metal production
  Nickel                                     000 tonne        5.7       5.1       7.8       7.0       6.0       (5)%      12%
  Copper                                     000 tonne        4.0       3.2       4.7       4.3       3.5       14%       25%
  Chrome                                     000 tonne      211.4     218.6     284.8     264.1     220.5       (4)%      (3)%

Sales volume (excluding trading activities)

PGM (5E+Au)                                    000 oz      1,386.0   1,122.8   1,511.8   1,437.9   1,276.6       9%       23%
  Platinum                                     000 oz        636.4     480.8     721.7     663.6     600.5       6%       32%
  Palladium                                    000 oz        405.3     328.2     473.5     462.0     330.3      23%       23%


Anglo American Platinum                                                                               Q2 2018   Q2 2018
Quarter two PGM Production Report                         Q2       Q1       Q4       Q3       Q2         vs        vs
Period 1 April 2018 - 30 June 2018                       2018     2018     2017     2017     2017     Q2 2017   Q1 2018
Achieved metal prices
Platinum                                      (US$/oz)      904      971      922      956      941      (4)%      (7)%
Palladium                                     (US$/oz)      979    1,041      987      895      804      22%       (6)%
Rhodium                                       (US$/oz)    2,105    1,779    1,417    1,062      980     115%        18%
Average exchange rate achieved on sales      ZAR/US$      12.76    11.93    13.59    13.20    13.19      (3)%        7%
Realised basket price                     (US$/ Pt oz)    2,185    2,494    2,071    2,058    1,796      22%      (12)%
Realised basket price                      (ZAR/Pt oz)   27,897   29,751   28,157   27,158   23,688      18%       (6)%
Realised basket price                   (US$/PGM oz)      1,003    1,068      989      950      845      19%       (6)%
Realised basket price                   (ZAR/PGM oz)     12,809   12,738   13,442   12,534   11,142      15%         1%



Johannesburg, South Africa
19 July 2018

Sponsor
Merrill Lynch South Africa Proprietary 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 global diversified mining business and our products are the essential ingredients
in almost every aspect of modern life. Our portfolio of world-class competitive mining operations and
undeveloped resources provides the metals and minerals to meet the growing consumer-driven
demands of the world’s developed and maturing economies. With our people at the heart of our
business, we use innovative practices and the latest technologies to discover new resources and mine,
process, move and market our products to our customers around the world.

As a responsible miner – of diamonds (through De Beers), copper, platinum and other precious metals,
iron ore, coal and nickel – we are the custodians of what are precious natural resources. We work
together with our key partners and stakeholders to unlock the sustainable value that those resources
represent for our shareholders, the communities and countries in which we operate and for society at
large. Anglo American is re-imagining mining to improve people’s lives.

www.angloamerican.com

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