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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