Wrap Text
2023 Outlook and 3 year Guidance
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 delivers value through cost and capital discipline
Anglo American Platinum is today providing an update on its performance during 2023 and setting out guidance for
the next three financial years.
• Metal-in-concentrate (M&C), refined production, and costs within guidance for 2023, with capital
expenditure ~R1.5 billion below guidance
• Action plan in progress to adapt to the external environment to deliver an enhanced cost position and value
focused capital allocation, whilst preserving the Company's long-term growth optionality
Anglo American Platinum CEO, Craig Miller, said: "We expect to meet 2023 production and cost guidance, despite a
broad set of external pressures, and to do so with a strong safety performance. In responding to the prevailing
weakness of the PGM basket price environment and persistent cost inflation, we are deploying a series of measures
to improve our competitive position while preserving our long-term optionality. This action plan includes initiatives
to reduce both annual costs by ~R5 billion and stay in business capital by ~R5 billion in 2024. We are also
resequencing growth investments and prioritising higher margin production from our own operations through our
processing facilities. These measures will allow us to capitalise on our industry leading portfolio for the long-term
benefit of our stakeholders."
2023 guidance
We have maintained a safe and stable operating performance through the year. M&C and refined production are
expected to be within guidance at ~3.8 million PGM ounces (Moz).
Cash operating unit costs are anticipated to be within the upper end of guidance at ~R17 800 per PGM ounce.
Total capital expenditure for 2023 is anticipated to be ~R20.5 billion. This is R1.5 billion lower than previous
guidance, primarily due to delays in spend for the Mototolo-Der Brochen life extension and optimisation of
cashflows. Stay-in-business capital is anticipated to be ~R11.1 billion, with life extension capital lower at ~R2.4
billion. Mogalakwena Underground capital is expected to be ~R1.0 billion and Breakthrough capital ~R1.8 billion.
Capitalised waste stripping cost at Mogalakwena is expected to be ~R4.2 billion.
Action plan to adapt to the external environment
We will continue to demonstrate value-based capital allocation discipline. We are implementing a variety of actions
as we reprioritise capital expenditure and deploy measures to reduce costs in response to the current low PGM basket
price environment. These measures will ensure that we improve our competitive position and protect returns, while
preserving our long term optionality.
1) M&C production: 2024-2026 M&C production from own operations including our 50% share of Modikwa
will remain around current production levels of between 2.1 and 2.3Moz.
2) Refined production: Refined production is expected to be between 3.3Moz and 3.7Moz in 2024, while 2025
and 2026 production decreases to between ~3.0Moz and ~3.4Moz as various third-party processing
arrangements transition to toll arrangements and lower anticipated volumes.
3) Cost optimisation initiatives: Operational cost efficiencies, overhead reductions, supplier/service provider
contract renegotiations, and work prioritisation programmes are anticipated to realise annual savings of
~R5.0 billion. This is expected to result in cash operating unit costs of between R16,500 – R17,500 per PGM
ounce in 2024, more than offsetting expected average input cost inflation of ~6.0%. We are targeting an
all-in sustaining cost (AISC) of below ~$1,050 per 3E ounce in 2024. A review is under way to identify other
opportunities to further enhance the company's cost position.
4) Sustaining capital: Lower sustaining capital of between R16.2 – R16.7 billion for 2024 will be focused on
ensuring the integrity and reliability of our assets across the value chain, investing in heavy mining
equipment (HME) to support the increase in waste mining and tailings infrastructure at Mogalakwena, and
progressing the Mototolo-Der Brochen life extension which is expected to be completed by the first half of
2027.
5) Other capital projects: In light of the current PGM price environment, several growth options are being re-
phased. This will improve near-term cash flows but preserve long-term optionality. Specific actions in
relation to near term growth include:
• We are progressing the drilling as well as the twin exploration declines and associated studies
supporting possible future underground operations at Mogalakwena. The underground
operations could secure access to higher grade ore and supplement open pit ore.
• Study work on the Mogalakwena third concentrator and associated debottlenecking of
downstream processing capacity has been completed. The project is expected to be value accretive
but further work has been postponed, with the study work on the underground development
prioritised.
• The study programme to debottleneck the concentrators at Amandelbult complex has been
stopped. This allows the operation to focus on improving safety, productivity and cost efficiencies
at current production levels. This change allows the rephasing and postponement of the capital
investment in the new mining areas to replace depleting production from Tumela upper.
6) Processing third party material: We will focus on higher margin processing of own material and expect a
reduction in third party volumes over the next few years as a result of transition to toll arrangements and
other contractual provisions in respective agreements. Volumes purchased are also subject to production
plans by third parties.
7) Processing: As a result of the volume changes in concentrate flows, a review of our downstream processing
footprint is under way. We will not proceed with the Anglo Converter Plant (ACP) debottlenecking project.
Outlook 2024 - 2026
Own mine production: own mine production will be sustained for the next three years at 2.1-2.3Moz per annum.
Mogalakwena M&C is forecast at ~1.0Moz per annum.
Purchase of Concentrate (POC) from third parties: Kroondal will transition to a toll arrangement (for the 4E metals)
upon the delivery of an agreed amount of volume which is currently estimated to be at the end of Q2 2024. Remaining
toll and POC processing agreements with Sibanye Stillwater for its Rustenburg operations, and Kroondal reach their
contractual conclusion at the end of 2026. Material purchased from Siyanda Resources will transition to a toll
arrangement (for the 4E metals) in 2025. As a result, POC will decline from a current level of ~1.3moz to ~1.0moz by
2025.
Assumed production is subject to the impact of Eskom load curtailment
2026 Estimate
Units 2023 Outlook 2024 Forecast 2025 Estimate New
Own mines PGMs M&C (metal- million
in-concentrate) ounces ~2.5* 2.1 - 2.3 2.1 - 2.3 2.1 - 2.3
POC PGMs M&C (metal-in- million
concentrate) ounces ~1.3 1.2 - 1.4 0.9 - 1.1 0. 9 - 1.1
million
Total M&C ounces ~3.8 3.3 - 3.7 3.0 - 3.4 3.0 - 3.4
Previous guidance 3.6 - 4.0 Previous guidance 3.6 - 4.0 Previous guidance 3.5 - 3.9
million
Refined PGM production ounces ~3.8 3.3 - 3.7 3.0 - 3.4 3.0 - 3.4
Previous guidance 3.6 - 4.0 Previous guidance 3.6 - 4.0 Previous guidance 3.3 -3.7
Total Capex R Billion ~20.5 19.0 - 19.5 18.5 - 19.0 18.0 - 18.5
Previous guidance ~22.0 Previous guidance ~22.5 Previous guidance ~17.5
SIB R Billion ~11.1 6.1 - 6.4 7.4 - 7.7 7.6 - 7.9
Previous guidance ~11.0 Previous guidance ~11.0 Previous guidance ~9.0
Waste capital R Billion ~4.2 ~5.2 ~4.5 ~5.0
Previous guidance ~4.1 Previous guidance ~5.0 Previous guidance ~4.5
Lifex R Billion ~2.4 4.9 - 5.1 4.1 - 4.3 2.9 - 3.1
Previous guidance ~3.5 Previous guidance ~4.0 Previous guidance ~2.5
Total (sustaining capex) R Billion ~17.7 16.2 - 16.7 16.0 - 16.5 15.5 - 16.0
Previous guidance ~18.6 Previous guidance ~20.0 Previous guidance ~16.0
Mog Underground R Billion ~1.0 ~1.3 ~1.0 ~1.0
Breakthrough R Billion ~1.8 ~1.5 ~1.5 ~1.5
Previous guidance ~3.4 Previous guidance ~2.5 Previous guidance ~1.5
Cash operating unit cost ZAR/PGM oz ~17,800 16 500 - 17,500
All-in-sustaining costs-AISC USD/ 3E/oz ~1,100 ~1,050
*Noting that up to the effective date of the Kroondal disposal sale transaction, on 1 November 2023, the 2023 M&C from own mines
production included 50% attributable from Kroondal.
Please note that PGMs stands for: platinum, palladium, rhodium, iridium, ruthenium, and gold. Average proportion M&C and refined
production has on average ~45% Platinum, ~35% palladium and 20% other metals over the three-year guidance period. AISC (all-in-
sustaining costs) - includes cash operating costs, overhead costs, marketing and market development costs, metal inventory
movement, SIB capital, and waste stripping capital. It excludes project capital.
Conclusion
Anglo American Platinum CEO, Craig Miller, said: "We remain committed to operating safely and sustainably at all
times. We have delivered a record safety performance so far this year and remain on track to meet 2023 guidance on
production and costs with lower capital expenditure. We are adapting to the current environment by deploying a wide
range of value-based measures. This includes embedding efficiencies, stepping up cost saving initiatives and re-
prioritising our capital allocation. We believe that the actions we are taking are critical to improve our competitive
position and protect long term returns from our PGMs that are integral to the major demand trends of improving
living standards for a growing global population and the need for cleaner transport and energy".
Anglo American Platinum update call
Craig Miller, CEO, and Sayurie Naidoo, Acting Finance Director, will host an update call at 14:30 (SAST). The conference
call pre-registration details are as below and, on our website, and a replay will be available.
To pre-register for the conference call, please click here.
To access the conference replay, please dial:
South Africa: 010 500 4108
UK: 0 203 608 8021
Australia: 073 911 1378
USA: 1 412 317 0088
International: +27 10 500 4108
Replay access code: 45626#
Anglo American Platinum media call
Craig Miller and Sayurie Naidoo will also host a media call at 13:00 (SAST).
To pre-register for the media call, please click here.
To access the media call replay, please dial:
South Africa: 010 500 4108
UK: 0 203 608 8021
Australia: 073 911 1378
USA: 1 412 317 0088
International: +27 10 500 4108
Replay access code: 45627#
Anglo American plc investor update
The Anglo American plc investor update presentation is available here on the Anglo American website.
This announcement contains forward-looking statements which are based on the Company's current beliefs and
expectations about future events. The operational and financial forecasts provided in this announcement are
estimates and have not been reviewed and reported on by the Company's external auditors.
Johannesburg
8 December 2023
Sponsor:
Merrill Lynch South Africa (Pty) Ltd t/a BofA Securities
Investors Media
Theto Maake Nomonde Ndwalaza
theto.maake@angloamerican.com nomonde.ndwalaza@angloamerican.com
Tel: +27 (0)83 489 5215 Tel: +27 (0)66 311 1133
Notes to editors:
Anglo American Platinum Limited is a member of the Anglo American plc Group and is a 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 and smelter
in Zimbabwe. Anglo American Platinum has two joint operations 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 leading global mining company, and our products are the essential ingredients in almost every
aspect of modern life. Our portfolio of world-class competitive operations, with a broad range of future
development options, provides many of the future-enabling metals and minerals for a cleaner, greener, more
sustainable world and that meet the fast growing every day demands of billions of consumers. With our people at
the heart of our business, we use innovative practices and the latest technologies to discover new resources and to
mine, process, move and market our products to our customers – safely and sustainably.
As a responsible producer of copper, nickel, platinum group metals, diamonds (through De Beers), and premium
quality iron ore and steelmaking coal – with crop nutrients in development – we are committed to being carbon
neutral across our operations by 2040. More broadly, our Sustainable Mining Plan commits us to a series of
stretching goals to ensure we work towards a healthy environment, creating thriving communities and building
trust as a corporate leader. We work together with our business partners and diverse stakeholders to unlock
enduring value from precious natural resources for the benefit of the communities and countries in which we
operate, for society, and for our shareholders. Anglo American is re-imagining mining to improve people's lives.
www.angloamerican.com
Date: 08-12-2023 09:00:00
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