To view the PDF file, sign up for a MySharenet subscription.

ANGLO AMERICAN PLATINUM LIMITED - Anglo American Platinum Q1 18 Production Report

Release Date: 24/04/2018 08:00
Code(s): AMS     PDF:  
Wrap Text
Anglo American Platinum Q1 18 Production Report

QUARTERLY PRODUCTION REPORT
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 FIRST QUARTER ENDED 31 MARCH 2018


OVERVIEW


• Tragically one loss of life occurred in Q1 2018

• Total PGM production (expressed as 5E+Au metal in concentrate) increased 8% to 1,289,200
  ounces, including platinum production up 7% to 613,800 ounces and palladium production up 9% to
  407,400 ounces due to improved operational performances across the portfolio

• Own mined PGM production (excluding Union) increased 18% to 580,400 ounces due to an
  exceptional performance from Mogalakwena, supported by strong performances from all own mined
  operations

• Joint venture PGM production (mined and purchase of concentrate) increased 14% to 298,000
  ounces due to strong performances from all operations

• Purchase of PGM concentrate from associates was down 25% primarily due to the closure of
  unprofitable ounces from Bokoni which was placed on care and maintenance in Q3 2017, partially
  offset by strong production from BRPM as the Styldrift project ramps up

• Refined PGM production decreased 11% to 1,017,500 ounces primarily due to planned maintenance
  in February at the ACP and Q1 2017 benefitting from treating the 2016 Waterval smelter backlog in
  addition to normal production

• PGM sales volumes was in line with the prior period at 1,151,600 ounces


REVIEW OF THE QUARTER

SAFETY


Anglo American Platinum tragically had one loss of life in Q1 2018. Mr Johannes Maimela, a 42-year-
old tyre fitter, lost his life on 12 February 2018 following an attack by a swarm of African bees at the
Amandelbult open-pit operations. 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 to create a safer work environment for all.
The Total Recordable Case Frequency Rate (“TRCFR”) per million hours at managed operations for
the quarter improved significantly to 2.67 compared to 5.48 in Q1 2017.

PGM PRODUCTION


Total PGM production (expressed as 5E+Au metal in concentrate) of 1,289,200 ounces, increased 8%
due to to improved operational performances across the portfolio. Total platinum production increased
7% to 613,800 ounces and total palladium production increased 9% to 407,400 ounces.

PGM production from own-managed mines


Own mined PGM production (Mogalakwena, Amandelbult, Unki and excluding Union for prior year
comparison) increased 18% to 580,400 ounces due to an exceptional performance from Mogalakwena
and supported by increased production from the other own mined operations. Platinum production was
up 17% to 363,900 ounces, and palladium up 19% to 219,000 ounces.

Mogalakwena PGM production increased by 23% to 327,600 ounces as a result of targeting higher-
grade areas in Q1, and optimisation to the North Concentrator Plant leading to an increase in
concentrator throughput. Concentrator recoveries also increased 5% due to the higher feed grades and
improvements in stability. Platinum production increased by 25% to 139,400 ounces and palladium
production increased by 22% to 150,500 ounces. Base metal production decreased due to lower base
metal content in the North pit.

The Mogalakwena built-up head grade of 3.34g/t is due to targeting a high-grade area in the North pit,
which will normalise in H2 2018 to around 3.18g/t. High grade production was planned for Q1 2018, to
get early ounces prior to the planned smelter rebuilds in Q2 and Q3 2018.

Amandelbult PGM production increased by 12% to 207,000 ounces due to improved underground
efficiencies and higher grades. Platinum production increased 9% to 103,900 ounces, and palladium
was up 16% to 50,700 ounces. Chrome production from Amandelbult increased 45% as the spiral plant
has reached steady state, as well as improved yield.


Unki PGM production increased 9% to 45,800 ounces due to an increase in tonnes milled off the back
of availability of ore stockpiled ahead of the concentrator following planned maintenance to the mill feed
silo at the concentrator. This was completed in December 2017. Platinum and palladium production
increased 9% to 20,600 ounces and 17,800 ounces respectively.

Other mined production


Union mine was sold to Siyanda Resources (“Siyanda”) on 1 February 2018, after which Union
production was treated as third party purchase of concentrate. As a result, PGM mined production at
Union decreased by 70% to 23,000 ounces, with mined platinum production down 69% to 11,600
ounces and mined palladium production down 70% to 5,200 ounces.
Total chrome production for Anglo Platinum reduced due to the sale of Union mine and MASA Chrome,
which contributed one month of chrome production, to Siyanda.

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


Total joint venture PGM production increased 14% to 298,000 ounces. Platinum and palladium
production increased 14% to 135,000 ounces and 86,900 ounces respectively.


PGM production at Mototolo increased by 38% to 84,700 ounces due to improved stoping efficiencies,
leading to improved built-up head grade, supported by additional processing of ore stockpiles that had
built-up following the temporary closure of the Helena Tailings Dam facility in Q3 2017. The ore stockpile
was also toll-treated through Bokoni contributing to the year-on-year increase. Platinum production
increased 37% to 38,900 ounces and palladium production increased by 44% to 24,700 ounces.


Modikwa PGM production increased by 16% to 77,100 ounces due to improved stoping efficiencies and
plant recoveries, as well as due to purchasing ore stockpile concentrate from Mototolo. Platinum
production increased by 21% to 31,200 ounces and palladium production increased by 11% to 28,000
ounces.

Kroondal PGM production increased by 1% to 136,200 ounces due to operational efficiency
improvements. Platinum production increased 2% to 64,900 ounces and palladium production
increased by 1% to 34,200 ounces.

Purchases of PGM concentrate from associates


Purchase of PGM concentrate from associates declined 25% due to the closure of unprofitable ounces
from Bokoni which was placed on care and maintenance in Q3 2017 (platinum down 19% to 52,300
ounces, palladium down 34% to 21,700 ounces). PGM production from BRPM increased by 12% to
90,500 ounces due to the ramp up of the Styldrift project, in line with expectations, (platinum production
up 13% to 52,300 ounces and palladium production up 11% to 21,700 ounces).

Purchases of PGM concentrate from third parties


Purchase of PGM concentrate from third parties increased 23% to 297,300 ounces due to an increase
in purchased production from Union mine following the sale to Siyanda Resources. Purchase of
concentrate increased 20% for both platinum, to 151,000 ounces, and palladium, to 74,500 ounces.

Refined production and sales volumes


Refined PGM production decreased 11% to 1,017,500 ounces primarily due to planned maintenance
at the ACP causing downtime of 16 days, and a Section 54 stoppage affecting Waterval Smelter in
December 2017, following the loss of life incident, and impacting production through into January 2018.
Furthermore, Q1 2017 refined volumes were unusually high following the 2016 Waterval Smelter run-
out backlog being treated, in addition to normal production volumes. Refined platinum production
decreased by 13% to 502,600 ounces and refined palladium production decreased by 10% to 319,800
ounces.
There are planned smelter rebuilds of Mortimer smelter in Q2 2018 and Polokwane smelter in Q3 2018,
resulting in a work-in-progress inventory increase in H1 and Q3, which will hopefully be processed in
full by the year-end.


PGM sales volumes were in line with the prior year at 1,151,600 ounces. Platinum sales volumes
decreased by 4% in line with the reduction in refined production to 500,500 ounces and palladium sales
volumes increased by 10% to 336,200 ounces.

Full year guidance


Following the strong quarter production, full year production guidance is expected to be at the top end
of the guidance range of 4.7 - 5.0 million PGM ounces, including 2.30 - 2.40 million platinum ounces
and 1.5 - 1.6 million palladium ounces.


Refined production and sales volumes will be in line with production, but lower than 2017, which had
the Waterval smelter run-out backlog and 2017 stock count gain which equated to c.200,000 PGM
ounces including 100,000 platinum ounces of additional refined production that year.
 Anglo American Platinum                                                                                    Q1 2018   Q1 2018
 Quarter one PGM Production Report                         Q1         Q4        Q3        Q2        Q1         vs        vs
 Period 1 January 2018 - 31 March 2018                    2018       2017      2017      2017      2017     Q1 2017   Q4 2017
 Total M&C Production (mined and purchase of concentrate)
 PGM Production (5E+Au)                          000 oz  1,289.2    1,220.0   1,303.4   1,291.3   1,193.0        8%        6%
   Platinum                                      000 oz    613.8      587.0     621.4     617.1     572.0        7%        5%
   Palladium                                     000 oz    407.4      374.9     407.5     402.2     372.7        9%        9%
 Tonnes Milled                                000 tonne    7,099      7,401     7,723     7,619     6,955        2%      (4)%
 Grade (4E)                                          g/t    3.45       3.53      3.44      3.41      3.47      (1)%      (2)%
 Mined operations
 Own managed mines
 PGM Production (5E+Au)                          000 oz    580.4      545.7     555.5     528.3     492.7       18%        6%
   Platinum                                      000 oz    263.9      252.9     255.7     242.0     225.9       17%        4%
   Palladium                                     000 oz    219.0      195.7     202.2     194.3     183.5       19%      12%
 Tonnes Milled                                000 tonne    5,574      5,631     5,882     5,721     5,189        7%      (1)%
 Grade (4E)                                          g/t    3.53       3.46      3.34      3.29      3.37        5%        2%
 Mogalakwena mine
 PGM Production (5E+Au)                          000 oz    327.6      282.2     277.7     272.8     265.8       23%       16%
   Platinum                                      000 oz    139.4      121.7     116.3     113.9     111.9       25%       15%
   Palladium                                     000 oz    150.5      127.8     129.9     127.8     123.4       22%       18%
 Tonnes Milled                                000 tonne    3,470      3,461     3,475     3,508     3,178        9%        0%
 Grade (4E)                                          g/t    3.34       3.17      3.07      3.02      3.13        7%        5%
 Amandelbult mine
 PGM Production (5E+Au)                          000 oz    207.0      226.9     233.6     212.4     185.0       12%      (9)%
   Platinum                                      000 oz    103.9      114.8     119.5     108.6      95.1        9%      (9)%
   Palladium                                     000 oz     50.7       53.7      55.1      49.9      43.7       16%      (6)%
 Tonnes Milled                                000 tonne    1,659      1,758     1,950     1,766     1,575        5%      (6)%
 Grade (4E)                                          g/t    3.93       4.02      3.79      3.80      3.82        3%      (2)%
 Unki mine
 PGM Production (5E+Au)                          000 oz     45.8       36.6      44.2      43.1      41.9        9%       25%
   Platinum                                      000 oz     20.6       16.4      19.9      19.5      18.9        9%       26%
   Palladium                                     000 oz     17.8       14.2      17.2      16.6      16.4        9%       25%
 Tonnes Milled                                000 tonne      445        412       457       447       436        2%        8%
 Grade (4E)                                          g/t    3.49       3.44      3.50      3.46      3.50      (0)%        2%
 Other mined operations
 Union mine
 PGM Production (5E+Au)                          000 oz     23.0       74.2      79.4      79.1      75.9     (70)%     (69)%
   Platinum                                      000 oz     11.6       37.1      39.9      39.8      37.7     (69)%     (69)%
   Palladium                                     000 oz      5.2       17.1      18.4      18.3      17.6     (70)%     (69)%
 Tonnes Milled                                000 tonne      205        683       694       678       633     (68)%     (70)%
 Grade (4E)                                          g/t    3.90       3.72      3.85      3.89      3.99      (2)%        5%
 Joint venture operations - mined only
 PGM Production (5E+Au)                          000 oz    149.0      132.9     140.2     144.1     131.0       14%      12%
   Platinum                                      000 oz     67.5       59.8      62.2      64.3      59.0       14%      13%
   Palladium                                     000 oz     43.5       38.7      42.1      42.5      38.2       14%      13%
 Tonnes Milled                                000 tonne    1,320      1,087     1,147     1,220     1,133       17%      21%
 Grade (4E)                                          g/t    3.64       3.80      3.73      3.71      3.63        0%      (4)%
 Purchase of concentrate
 Total purchase of concentrate
 PGM Production (5E+Au)                          000 oz    536.8      467.2     528.3     539.8     493.4        9%       15%
   Platinum                                      000 oz    270.8      237.2     263.7     271.0     249.3        9%       14%
   Palladium                                     000 oz    139.7      123.4     144.8     147.1     133.4        5%       13%
 Joint ventures
 PGM Production (5E+Au)                          000 oz    149.0      132.9     140.2     144.1     131.0       14%       12%
   Platinum                                      000 oz     67.5       59.8      62.2      64.3      59.0       14%       13%
   Palladium                                     000 oz     43.5       38.7      42.1      42.5      38.2       14%       13%
 Associates
 PGM Production (5E+Au)                          000 oz     90.5       93.8     135.5     134.3     120.5     (25)%      (3)%
   Platinum                                      000 oz     52.3       54.8      73.5      72.5      64.7     (19)%      (5)%
   Palladium                                     000 oz     21.7       22.1      36.3      36.4      33.0     (34)%      (2)%
 Third parties
 PGM Production (5E+Au)                          000 oz    297.3      240.5     252.6     261.4     241.9       23%       24%
   Platinum                                      000 oz    151.0      122.6     128.0     134.2     125.6       20%       23%
   Palladium                                     000 oz     74.5       62.6      66.4      68.1      62.2       20%       19%
 Gross refined production
 PGM Production (5E+Au)                          000 oz  1,017.5    1,455.6   1,366.5   1,150.2   1,143.9     (11)%     (30)%
   Platinum                                      000 oz    502.6      722.2     684.1     528.7     576.9     (13)%     (30)%
   Palladium                                     000 oz    319.8      491.4     450.6     373.1     353.4     (10)%     (35)%
   Other PGMs and gold                           000 oz    195.1      242.0     231.8     248.4     213.6      (9)%     (19)%
 Base metal production
   Nickel                                     000 tonne      5.1        7.8       7.0       6.0       5.1      (1)%     (34)%
   Copper                                     000 tonne      3.2        4.7       4.3       3.5       3.2      (0)%     (31)%
   Chrome                                     000 tonne    218.6      284.8     264.1     220.5     209.5        4%     (23)%
 Sales volume
 PGM (5E+Au)                                     000 oz  1,151.6    1,511.8   1,437.9   1,276.6   1,156.0      (0)%     (24)%
   Platinum                                      000 oz    500.5      721.7     663.6     600.5     518.8      (4)%     (31)%
   Palladium                                     000 oz    336.2      473.5     462.0     330.3     306.0      10%      (29)%
 Achieved metal prices
 Platinum                                      (US$/oz)      971        922       956       941       977      (1)%        5%
 Palladium                                     (US$/oz)    1,041        987       895       804       754       38%        5%
 Rhodium                                       (US$/oz)    1,779      1,417     1,062       980       856     108%        25%
 Average exchange rate achieved on sales       ZAR/US$     11.93      13.59     13.20     13.19     13.29     (10)%     (12)%
 Realised basket price (*)                (US$/ Pt \oz)    2,451      2,071     2,058     1,796     1,898       29%       18%
 Realised basket price (*)                  (ZAR/Pt oz)   29,238     28,157    27,158    23,688    25,225       16%        4%
 Realised basket price (*)                 (US$/PGM oz)    1,065        989       950       845       852       25%        8%
 Realised basket price (*)                 (ZAR/PGM oz)   12,708     13,442    12,534    11,142    11,321       12%      (5)%

(*)Note that realised basket prices appear higher than annual realised basket prices, as they are calculated on actual sold
volumes, which are lower in Q1 than annualised sales volumes
Johannesburg, South Africa
24 April 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

Date: 24/04/2018 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Share This Story