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ANGLO AMERICAN PLATINUM LIMITED - PGM Production Report for the Second Quarter ending 30 June 2019

Release Date: 18/07/2019 08:00
Code(s): AMS     PDF:  
 
Wrap Text
PGM Production Report for the Second Quarter ending 30 June 2019

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 2019

OVERVIEW

- Commitment to elimination of fatalities – zero fatalities at own managed operations in Q2 2019
- Total PGM production (expressed as 5E+Au metal in concentrate) increased by 1% to 1,118,700 ounces,
  (excluding Sibanye-Stillwater Rustenburg mine 4E material)
- Own managed mines PGM production decreased by 4% to 633,600 ounces due to lower production from
  Mogalakwena and Mototolo
- Joint venture PGM production (mined and purchase of concentrate, excluding Mototolo) decreased by 4%
  to 228,200 ounces due to lower volume from Modikwa, despite a strong performance from Kroondal
- Purchase of PGM concentrate from third parties increased by 22% to 256,900 ounces due to higher
  volumes received from BRPM and Siyanda (excluding Sibanye-Stillwater Rustenburg mine 4E material that
  transitioned to a tolling arrangement)
- Refined PGM production including tolling increased by 23% to 1,426,900 ounces due to improved
  processing operational performance and stability at processing assets
- PGM sales volumes of 1,275,100 ounces were in line with refined production, but down by 8% year-on-year
  due to 154,400 4E ounces returned through toll arrangements
- 2019 Production guidance (metal in concentrate) remains unchanged at 4.2 – 4.5 million PGM ounces

   Anglo American Platinum                                                                                                         Q2 2019       Q2 2019                       H1 2019
   PGM Production Report - Q2 2019                                             Q2         Q1        Q4         Q3         Q2          vs            vs      H1        H1          vs
   Period 1 April 2019 - 30 June 2019                                         2019       2019      2018       2018       2018      Q2 2018       Q1 2019   2019      2018      H1 2018
   Total M&C Production (mined and purchase of concentrate)
   Total PGM Production (5E + Au)(1)                      000 oz             1,118.7    1,028.2    1,061.9    1,146.0    1,106.7         1%           9%   2,146.9   2,201.6      (2)%

                                                  (2)
   Total PGM Production (inc. Sibanye 4E ounces)                  000 oz     1,118.7    1,028.2    1,257.1    1,345.7    1,294.7      (14)%           9%   2,146.9   2,583.8     (17)%
    Own managed mines                                             000 oz       633.6      600.9      558.6      636.9      658.7       (4)%           5%   1,234.5   1,323.9      (7)%
      Mogalakwena                                                 000 oz       302.5      307.2      256.8      271.8      313.8       (4)%         (2)%     609.7     641.4      (5)%
      Amandelbult                                                 000 oz       229.0      192.8      190.8      245.4      225.7         1%          19%     421.7     432.7      (3)%
      Unki                                                        000 oz        52.5       43.3       49.7       50.4       46.8        12%          21%      95.8      92.6        3%
      Mototolo                                                    000 oz        49.6       57.7       61.2       69.2       72.5      (32)%        (14)%     107.3     157.2         -
    Joint venture production(3)                                   000 oz       228.2      210.4      259.0      245.1      236.8       (4)%           8%     438.6     450.0      (3)%
    Third party purchase of concentrate(4)                        000 oz       256.9      216.9      244.3      264.1      211.2        22%          18%     473.8     427.7       11%
    Sibanye-Stillwater 4E purchase of concentrate                 000 oz         -          -        195.2      199.7      187.9     (100)%                    -       382.3    (100)%

   Refined production
   PGM Production including tolling (5E+Au)                       000 oz     1,426.9      871.2    1,528.2    1,079.6    1,159.6        23%          64%   2,298.2   2,177.1        6%

   Sales volume excluding trading
   PGMs (5E+Au)                                                   000 oz     1,275.1      884.9    1,507.2    1,208.9    1,386.0       (8)%          44%   2,160.0   2,508.8     (14)%
   PGMs excluding Sibanye 4E POC in all periods (5E+Au)(5)        000 oz     1,205.6      786.6    1,274.0    1,041.0    1,188.4         1%          53%   1,992.1   2,147.6      (7)%

   (1) Total PGM Production is normalised to exclude Sibanye-Stillwater 4E ounces in all periods
   (2) Total PGM production (including Sibanye 4E ounces) includes 4E purchases of concentrate material from Sibanye-Stillwater in all periods
   (3) Total Joint venture PGM production (mined and purchase of concentrate) adjusted to exclude Mototolo mine
   (4) Third party purchase of concentrate adjusted to exclude Sibanye-Stillwater 4E production in all periods
   (5) PGM sales volume excluding Sibanye-Stillwater 4E POC sales volume in all periods


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 reduced by 9% to 2.63 compared to 2.90 in the prior period.

PGM PRODUCTION

Production has been adjusted in the comparative periods to enable a fair comparison between each period as
follows:
- exclude Sibanye-Stillwater 4E ounces from purchase of concentrate from third parties
- include Mototolo production as own mined production on a 100% basis
- include Union production as purchase of concentrate from third parties
- include Bafokeng Rasimone Platinum Mine (BRPM) production as purchase of concentrate from third parties

Total PGM production increased by 1% to 1,118,700 ounces (platinum production increased by 3% to 520,300
ounces and palladium production decreased by 1% to 347,100 ounces), excluding Sibanye-Stillwater
Rustenburg 4E material which transitioned to a tolling arrangement from 1 January 2019. Despite the increase
in production, the quarter was impacted by unprotected industrial action at Mototolo, maintenance at
Mogalakwena North Concentrator and production challenges at Modikwa and Mototolo.

PGM production from own mines

Total PGM production from own managed mines decreased 4% to 633,600 ounces (platinum production
decreased by 5% to 290,500 ounces and palladium production decreased 4% to 228,100 ounces), due to lower
production from Mogalakwena and Mototolo, partly offset by increased production from Unki and Amandelbult.

Mogalakwena PGM production decreased 4% to 302,500 ounces (platinum and palladium production decreased
by 4% to 127,900 ounces 139,500 ounces respectively), due to low equipment availability, and a decrease in
concentrator throughput and recoveries due to a minor shut down for maintenance on the secondary mill at
North concentrator. In addition, the mine increased its waste tonnes mined in line with the mine plan (started a
new mining cut and push-back) which was partially offset by a drawdown in ore stockpiles.

Amandelbult PGM production increased 1% to 229,000 ounces (platinum production in line with the prior period
at 116,500 ounces while palladium increased by 3% to 53,700 ounces), due to improvement in the Dishaba ore-
reserve build-up as well as increased operational efficiencies. Production performance in Q2 2019 improved
19% over Q1 2019.

Unki achieved a record production performance in the quarter, increasing PGM production 12% to 52,500
ounces (platinum production increased by 11% to 23,100 ounces and palladium production increased by 14%
to 20,900 ounces). The increases were due to improved underground mining efficiencies, improved concentrator
throughput, higher mill run-time and recoveries.

The acquisition of the remaining 50% of Mototolo was concluded on 1 November 2018 from which date 100%
of its production became own mine production.
On a 100% basis, Mototolo PGM production decreased by 32% to 49,600 ounces (platinum production
decreased by 32% to 23,000 ounces and palladium by 33% to 14,000 ounces). The lower production was largely
due to three weeks of unprotected industrial action (c.9,000 PGM ounces) and lower built-up head grade and
volume as the mine transitions through multiple difficult geological features. In addition, the prior period included
once-off PGM ounces that were toll treated at Bokoni.

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

Joint venture PGM production, excluding Mototolo, decreased by 4% to 228,200 ounces (platinum production
decreased by 1% to 104,400 ounces and palladium production decreased by 6% to 64,800 ounces).

Modikwa PGM production decreased by 23% due to safety stoppages related to the fatality at the end of Q1
2019 and increased maintenance on the mechanised machinery fleet. In addition, the prior period benefitted
from Mototolo ore purchases which increased Q2 2018 production by c.5,000 PGM ounces. PGM production at
Kroondal increased by 6% due to increased concentrator throughput, higher mill run-time and recoveries.

PGM production from joint ventures is 50% own-mine production and 50% purchase of concentrate.

Purchases of PGM concentrate from third parties

Purchase of PGM concentrate from third parties increased by 22% to 256,900 ounces due increased volume
from BRPM and Siyanda Resources.

Refined production and sales volumes

Own refined PGM production, excluding tolling, increased by 10% to 1,273,400 ounces (refined platinum
production increased by 3% to 591,000 ounces and refined palladium production increased by 17% to 428,400
ounces). The increase was largely driven by improved operational performance and stability across the
processing assets, particularly at the Anglo Converter Plant (ACP), as well as lower refined production in the
prior period which was impacted by the Mortimer smelter rebuild.

Refined PGM production including tolling of 154,400 4E ounces treated in the quarter under tolling arrangements,
increased by 23% to 1,426,900 PGM ounces.

PGM sales volumes of 1,275,100 ounces were in line with refined production, but down by 8% year-on-year due
to 154,400 4E ounces returned through toll arrangements and not sold by Anglo American Platinum. Platinum
sales volumes decreased by 6% to 595,200 ounces and palladium sales volumes increased by 17% to 475,900
ounces due to the change in the concentrate mix processed in each period.

2019 production guidance maintained

PGM production outlook for 2019 is maintained at between 4.2 - 4.5 million ounces, including platinum
production of between 2.0 - 2.1 million ounces and palladium production guidance of between 1.3 – 1.4 million
ounces. As previously communicated, production guidance is down on 2018 due to the transition of Sibanye-
Stillwater Rustenburg mine 4E material to a tolling arrangement.


Anglo American Platinum                                                                                Q2 2019   Q2 2019                       H1 2019
PGM Production Report - Q2 2019                        Q2         Q1        Q4     Q3         Q2          vs        vs      H1        H1          vs
Period 1 April 2019 - 30 June 2019                    2019       2019      2018   2018       2018      Q2 2018   Q1 2019   2019      2018      H1 2018
Total M&C Production (mined and purchase of concentrate)
PGM Production (5E+Au)                 000 oz         1,118.7    1,028.2  1,257.1 1,345.7    1,294.7     (14)%        9%   2,146.9   2,583.8     (17)%
  Platinum                             000 oz           520.3      471.9    602.1   649.1      619.6     (16)%      10%      992.2   1,233.4     (20)%
  Palladium                            000 oz           347.1      326.6    386.9   410.9      405.9     (14)%        6%     673.7     813.2     (17)%
Tonnes Milled                          000              7,271      6,879    6,849   7,028      7,284      (0)%        6%    14,151    14,383      (2)%
Grade (4E)                             g/t               3.55       3.59     3.38    3.58       3.51        1%      (1)%      3.57      3.48        2%
M&C Production (mined and purchase of concentrate) excluding 4E production from Sibanye-Stillwater
PGM Production (5E+Au)                 000 oz         1,118.7    1,028.2  1,061.9 1,146.0    1,106.7        1%        9%   2,146.9   2,201.6      (2)%
  Platinum                             000 oz           520.3      471.9    485.2   529.6      507.5        3%       10%     992.2   1,005.7      (1)%
  Palladium                            000 oz           347.1      326.6    328.8   351.5      349.6      (1)%        6%     673.7     698.9      (4)%
Mined operations
Own managed mines
PGM Production (5E+Au)                 000 oz           633.6      600.9    558.6   636.9      658.7      (4)%        5%   1,234.5   1,323.9      (7)%
  Platinum                             000 oz           290.5      275.1    254.9   294.3      304.3      (5)%        6%     565.6     607.0      (7)%
  Palladium                            000 oz           228.1      219.7    200.3   224.1      236.4      (4)%        4%     447.7     480.1      (7)%
Tonnes Milled                          000              6,372      5,984    5,958   6,372      6,669      (4)%        6%   12,357     13,066      (5)%
Grade (4E)                             g/t               3.53       3.57     3.30    3.53       3.46        2%      (1)%      3.55      3.48        2%
Mogalakwena mine
PGM Production (5E+Au)                 000 oz           302.5      307.2    256.8   271.8      313.8      (4)%      (2)%    609.7     641.4       (5)%
  Platinum                             000 oz           127.9      130.4    108.4   113.9      133.4      (4)%      (2)%    258.3     272.9       (5)%
  Palladium                            000 oz           139.5      141.5    118.3   127.1      145.1      (4)%      (1)%    281.0     295.5       (5)%
Tonnes Milled                          000              3,506      3,385    3,371   3,295      3,640      (4)%        4%    6,891     7,110       (3)%
Grade (4E)                             g/t               3.34       3.49     2.93    3.23       3.26        2%      (4)%     3.42      3.30         3%
Amandelbult mine
PGM Production (5E+Au)                 000 oz           229.0      192.8    190.8   245.4      225.7        1%       19%    421.7     432.7       (3)%
  Platinum                             000 oz           116.5       98.5     96.5   126.0      116.3        0%       18%    215.1     220.2       (2)%
  Palladium                            000 oz            53.7       44.9     44.9    57.3       52.2        3%       20%     98.6     102.9       (4)%
Tonnes Milled                          000              1,840      1,590    1,503   1,946      1,854      (1)%       16%    3,430     3,513       (2)%
Grade (4E)                             g/t               3.98       3.88     4.07    4.05       3.90        1%        3%     3.93      3.91         1%
Unki mine
PGM Production (5E+Au)                 000 oz            52.5       43.3     49.7    50.4       46.8      12%       21%      95.8      92.6         4%
  Platinum                             000 oz            23.1       19.3     22.1    22.4       20.9      11%       20%      42.4      41.4         2%
  Palladium                            000 oz            20.9       17.0     19.6    19.7       18.4      14%       23%      37.9      36.2         5%
Tonnes Milled                          000                538        454      496     491        493        9%      19%       992      938          6%
Grade (4E)                             g/t               3.47       3.47     3.53    3.54       3.46      (1)%      (0)%     3.47      3.47       (0)%
Mototolo mine
PGM Production (5E+Au)                 000 oz            49.6       57.7     61.2    69.2       72.5     (32)%     (14)%    107.3     157.2      (32)%
  Platinum                             000 oz            23.0       26.8     28.0    31.9       33.7     (32)%     (14)%     49.8      72.6      (31)%
  Palladium                            000 oz            14.0       16.3     17.5    19.9       20.8     (33)%     (14)%     30.3      45.5      (33)%
Tonnes Milled                          000                488        556      590     640        684     (29)%     (12)%    1,045     1,507      (31)%
Grade (4E)                             g/t               3.16       3.23     3.24    3.44       3.36      (7)%      (2)%     3.19      3.33       (4)%
Other mined operations
Joint venture operations - mined production
PGM Production (5E+Au)                 000 oz           114.1      105.2    129.5   122.5      118.4      (4)%        8%    219.3     225.0       (3)%
  Platinum                             000 oz            52.1       46.9     57.7    54.7       52.8      (1)%       11%     99.1     100.9       (2)%
  Palladium                            000 oz            32.4       31.2     38.0    36.2       34.7      (6)%        4%     63.6      65.8       (3)%
Tonnes Milled                          000                898        894    1,000     976        956      (6)%        0%    1,792     1,864       (4)%
Grade (4E)                             g/t               3.72       3.71     3.83    3.89       3.79      (2)%        0%     3.72      3.80       (2)%
Purchase of concentrate
Total purchase of concentrate including Sibanye-Stillwater 4E production
PGM Production (5E+Au)                 000 oz           371.0      322.1    569.0   586.3      517.5     (28)%       15%    693.1    1,035.0     (33)%
  Platinum                             000 oz           177.6      149.9    289.4   300.2      262.5     (32)%       19%    327.5      525.5     (38)%
  Palladium                            000 oz            86.6       75.7    148.6   150.6      134.8     (36)%       14%    162.4      267.4     (39)%
Joint ventures purchase of concentrate
PGM Production (5E+Au)                 000 oz           114.1      105.2    129.5   122.5      118.4      (4)%        8%    219.3     225.0       (3)%
  Platinum                             000 oz            52.1       46.9     57.7    54.7       52.8      (1)%       11%     99.1     100.9       (2)%
  Palladium                            000 oz            32.4       31.2     38.0    36.2       34.7      (6)%        4%     63.6      65.8       (3)%
Third party purchase of concentrate excluding Sibanye-Stillwater 4E production
PGM Production (5E+Au)                 000 oz           256.9      216.9    244.3   264.1      211.2       22%       18%    473.8     427.7        11%
  Platinum                             000 oz           125.5      102.9    114.8   126.0       97.7       29%       22%    228.4     196.9        16%
  Palladium                            000 oz            54.2       44.6     52.5    55.1       43.9       23%       21%     98.8      87.3        13%
Sibanye-Stillwater purchase of concentrate production
4E Production (Pt, Pd, Rh, Au)         000 oz             -          -      195.2   199.7      187.9    (100)%                -       382.3     (100)%
  Platinum                             000 oz             -          -      116.9   119.5      112.1    (100)%                -       227.8     (100)%
  Palladium                            000 oz             -          -       58.1    59.4       56.2    (100)%                -       114.4     (100)%



Anglo American Platinum                                                                                       Q2 2019   Q2 2019                       H1 2019
PGM Production Report - Q2 2019                               Q2        Q1       Q4        Q3        Q2          vs        vs      H1        H1          vs
Period 1 April 2019 - 30 June 2019                           2019      2019     2018      2018      2018      Q2 2018   Q1 2019   2019      2018      H1 2018
Refined production(7)
PGM Production (5E+Au)                        000 oz         1,273.5    871.2   1,528.2   1,079.6   1,159.6       10%       46%   2,144.8   2,177.1      (1)%
  Platinum                                    000 oz           591.0    411.7     770.9     556.2     572.7        3%       44%   1,002.7   1,075.3      (7)%
  Palladium                                   000 oz           428.4    293.6     493.8     321.5     366.7       17%       46%     721.9     686.5        5%
  Other PGMs and gold                         000 oz           254.2    165.9     263.5     201.9     220.2       15%       53%     420.2     842.0     (50)%
Base metal production
  Nickel                                      000 t             5.6       4.2      6.7       5.6       5.7       (2)%       33%      9.8      10.8       (9)%
  Copper                                      000 t             3.6       3.2      4.2       2.9       4.0      (10)%       13%      6.7       7.2       (7)%
  Chrome                                      000 t           240.9     183.3    179.5     249.5     211.4        14%       31%    424.2     430.0       (1)%
Toll treated production
  Platinum                                    000 oz           97.9       -        -         -         -                            97.9       -
  Palladium                                   000 oz           49.1       -        -         -         -                            49.1       -
Sales volume
PGM (5E+Au)                                   000 oz         1,275.1    884.9   1,507.2   1,208.9   1,386.0      (8)%       44%   2,160.0   2,508.8     (14)%
  Platinum                                    000 oz           595.2    414.2     776.9     530.1     636.4      (6)%       44%   1,009.4   1,117.1     (10)%
  Palladium                                   000 oz           475.9    292.1     455.3     324.3     405.3      17%        63%     768.0     733.5        5%
Achieved metal prices
Platinum                                      (US$/oz)          837       823      819       812       904       (7)%        2%      831       932      (11)%
Palladium                                     (US$/oz)        1,400     1,399    1,129       954       979       43%         0%    1,400     1,005        39%
Rhodium                                       (US$/oz)        3,006     2,631    2,512     2,354     2,105       43%        14%    2,840     1,938        47%
Average exchange rate achieved on sales       ZAR/US$         14.38     14.09    14.26     14.17     12.76       13%         2%    14.26     12.38        15%
Realised basket price                         (US$/ Pt oz)    2,731     2,620    2,042     2,271     2,185       25%         4%    2,685     2,318        16%
Realised basket price                         (ZAR/Pt oz)    39,266    36,924   29,133    32,199    27,897       41%         6%   38,305    28,695        33%
Realised basket price                         (US$/PGM oz)    1,275     1,226    1,052       996     1,003       27%         4%    1,255     1,032        22%
Realised basket price                         (ZAR/PGM oz)   18,329    17,283   15,017    14,120    12,809       43%         6%   17,901    12,777        40%


(7) Refined production excludes tolled 4E ounces




Johannesburg, South Africa
18 July 2019

Sponsor
Merrill Lynch South Africa Proprietary Limited


For further information, please contact:
Investors:                                                             Media:
Emma Chapman                                                           Jana Marais
(SA) +27 (0) 11 373 6239                                               (SA) +27 (0) 11 638 2607
emma.chapman@angloamerican.com                                         jana.marais@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 several 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 leading global mining company 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 that enable a cleaner, more electrified world and that meet the fast-
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 – safely, responsibly and
sustainably.
As a responsible miner – of diamonds (through De Beers), copper, platinum group metals, iron ore, coal, nickel
and manganese – we are the custodians of what are precious natural resources. We work together with our
business partners and diverse stakeholders to unlock the sustainable value that those resources represent for
our shareholders, the communities and countries in which we operate, and for society as a whole. Anglo
American is re-imagining mining to improve people’s lives.

www.angloamerican.com

                     

Date: 18/07/2019 08:00:00
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