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ANGLO AMERICAN PLATINUM LIMITED - PGM Production Report for the third Quarter Ending 30 September 2019

Release Date: 22/10/2019 08:00
Code(s): AMS     PDF:  
 
Wrap Text
PGM Production Report for the third Quarter Ending 30 September 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")

22 October 2019

ANGLO AMERICAN PLATINUM LIMITED

PGM PRODUCTION REPORT FOR THE THIRD QUARTER ENDING 30 SEPTEMBER 2019

OVERVIEW
- Commitment to elimination of fatalities – no fatalities occurred in Q3 2019
- Total PGM production (expressed as 5E+Au metal in concentrate) in line with prior year at 1,141,200
  ounces, (excluding Sibanye-Stillwater material)
- Own managed mines PGM production increased by 1% to 642,500 ounces due to increased production
  from Mogalakwena and Unki
- Joint venture PGM production (mined and purchase of concentrate, excluding Mototolo) increased by 1%
  to 248,200 ounces due to higher volume from Kroondal, despite a weak performance from Modikwa
- Purchase of PGM concentrate from third parties (excluding 4E toll treated material) decreased by 5% to
  250,500 ounces due to lower volumes received from BRPM and Siyanda
- Refined PGM production including tolling increased by 26% to 1,360,700 ounces due to improved
  processing operational performance
- PGM sales volumes excluding tolling were marginally down 2% to 1,022,900 ounces due to lower minor
  metal sales
- 2019 production guidance (metal in concentrate) remains unchanged at 4.2 – 4.5 million PGM ounces

 Anglo American Platinum                                                                                                             Q3 2019    Q3 2019       YTD        YTD    YTD 2019
 PGM Production Report - Q3 2019                                                    Q3        Q2        Q1        Q4        Q3          vs         vs      September  September    vs
 1 July 2019 - 30 September 2019                                                   2019      2019      2019      2018      2018      Q3 2018    Q2 2019       2019      2018    YTD 2018
 Total M&C production (mined and purchase of concentrate)
 Total PGM production (5E + Au)(1)                                        000 oz   1,141.2   1,118.7   1,028.2   1,061.9   1,146.0     (0)%         2%       3,288.2   3,347.6     (2)%
   Own managed mines (2)                                                  000 oz    642.5     633.6     600.9     558.6     636.9        1%         1%       1,877.0   1,960.7     (4)%
     Mogalakwena                                                          000 oz    287.7     302.5     307.2     256.8     271.8        6%       (5)%        897.4     913.2      (2)%
     Amandelbult                                                          000 oz    232.9     229.0     192.8     190.8     245.4      (5)%         2%        654.6     678.1      (3)%
     Unki                                                                 000 oz     53.8      52.5      43.3      49.7      50.4        7%         2%        149.6     143.0        4%
     Mototolo                                                             000 oz     68.1      49.6      57.7      61.2      69.2      (2)%        37%        175.4     226.4     (24)%
   Joint venture production(3)                                            000 oz    248.2     228.2     210.4     259.0     245.1        1%         9%        686.8     695.1      (1)%
   Third party purchase of concentrate(4)                                 000 oz    250.5     256.9     216.9     244.3     264.1      (5)%       (2)%        724.3     691.8        5%
 Total PGM production (incl. 4E POC now tolled)(5)                        000 oz   1,141.2   1,118.7   1,028.2   1,257.1   1,345.7    (15)%         2%       3,288.2   3,929.6    (16)%
  4E purchase of concentrate now tolled                                   000 oz       -         -         -      195.2     199.7    (100)%          -            -      582.0    (100)%
 Refined production
 Total refined PGM (5E+Au) production (including tolling)                 000 oz   1,360.7   1,426.9    871.2    1,528.2   1,079.6      26%        (5)%      3,658.9   3,256.7      12%
 Total refined PGM (5E+Au) production (excluding tolling)                 000 oz   1,192.0   1,273.5    871.2    1,528.2   1,079.6      10%        (6)%      3,336.8   3,256.7       2%
 Sales volume excluding trading
 Total PGM sales (5E+Au)                                                  000 oz   1,048.4   1,275.1    884.9    1,507.2   1,208.9     (13)%      (18)%      3,208.4   3,717.7    (14)%
 PGM sales excluding 4E POC sales now tolled in all periods (5E+Au) (6)   000 oz   1,022.9   1,205.6    786.6    1,274.0   1,041.0      (2)%      (15)%      3,015.0   3,188.6     (5)%


(1) Total PGM production is normalised to exclude Sibanye-Stillwater 4E ounces in all periods
(2) Own managed mines include Mototolo on 100% basis 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) Total PGM production (incl. 4E POC production now tolled) includes Sibanye-Stillwater 4E production in all periods
(6) PGM sales volume excluding Sibanye-Stillwater 4E POC 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. Managed operations continue to be fatal free for the year-to-date. The Total Recordable Case Frequency
Rate (“TRCFR”) per million hours at managed operations for the quarter improved 14% to 2.52 compared to
2.93 in the prior period.


PGM PRODUCTION

Production has been adjusted in the comparative periods to enable fair comparison between each period as
follows:
     -     exclude Sibanye-Stillwater 4E ounces from purchase of concentrate (POC) 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 of 1,141,200 ounces was in line with prior year, with platinum production down 1% to
526,800 ounces and palladium production flat at 351,800 ounces.


PGM production from own managed mines

Total PGM production from own managed mines increased 1% to 642,500 ounces (platinum production
increased by 1% to 296,800 ounces and palladium production increased 1% to 225,900 ounces), due to higher
production from Mogalakwena and Unki, partly offset by decreased production from Amandelbult and Mototolo.

Mogalakwena PGM production increased 6% to 287,700 ounces (platinum increased by 8% to 123,400 ounces
and palladium production increased by 3% to 130,800 ounces), due to an increase in throughput and a 14%
increase in built-up head grade.

Amandelbult PGM production decreased 5% to 232,900 ounces (platinum production decreased by 6% to
118,400 ounces and palladium decreased by 5% to 54,300 ounces), mainly due to maintenance at the
concentrator.

Unki PGM production increased 7% to 53,800 ounces (platinum production increased by 5% to 23,600 ounces
and palladium production increased by 9% to 21,400 ounces), due to improved underground mining efficiencies
as well as improved concentrator throughput and mill run-time.

On a 100% basis, Mototolo PGM production decreased by 2% to 68,100 ounces (platinum production decreased
by 2% to 31,400 ounces and palladium by 3% to 19,400 ounces), due to a 6% decline in head-grade due to the
mine transitioning through a difficult ground area containing geological features.
PGM production from joint ventures (50% own mined production and 50% purchase of concentrate)

Joint venture PGM production, excluding Mototolo, increased by 1% to 248,200 ounces (platinum production
was in line with prior year at 109,800 ounces and palladium production increased by 2% to 73,800 ounces).
PGM production at Kroondal increased by 3% due to increased concentrator throughput, higher mill run-time
and improved recoveries. PGM production at Modikwa decreased by 3% due to low equipment availability.

Purchases of PGM concentrate from third parties

Purchase of PGM concentrate from third parties decreased by 5% to 250,500 ounces due lower volume from
Bafokeng Rasimone Platinum Mine (BRPM) and Siyanda Resources.

Refined production and sales volumes

Total refined PGM production, including 168,700 4E ounces of toll treated material, increased by 26% to
1,360,700 PGM ounces due to improved processing operational performance.

Refined PGM production, excluding 4E production now tolled, increased by 10% to 1,192,000 ounces (refined
platinum production increased by 4% to 578,500 ounces and refined palladium production increased by 13% to
362,000 ounces). Prior period refined production was impacted by Mortimer smelter ramping up from its full
rebuild and Polokwane smelter undertaking maintenance which required a full shutdown for 35 days.


PGM sales volumes, excluding the impact of 4E toll treated material, were marginally down 2%, with platinum
sales volumes up 21% to 522,200 ounces and palladium sales volumes up 12% to 309,700 ounces. Minor metal
sales were lower in Q3 and year-to-date, as demand normalised from particularly strong sales in 2018, with
demand also impacted by ongoing macroeconomic uncertainty due to trade tariff disputes. Total PGM sales
volumes were down by 13% to 1,048,400 ounces due to 168,700 4E ounces returned through toll arrangements
and not sold by Anglo American Platinum.

Sales volumes are lower than refined production in the period, due to maintenance at Waterval smelter (Furnace
2 end wall repair), which delayed the availability of refined production for sale during the quarter.

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 compared to 2018 due to the transition of material from purchase of
concentrate to a 4E tolling arrangement. The Company is not expecting any significant headwinds in the final quarter,
however if there are any prolonged periods of Eskom load-shedding, full year production guidance could be impacted.


Anglo American Platinum                                                                           Q3 2019    Q3 2019       YTD       YTD    YTD 2019
PGM Production Report - Q3 2019             Q3         Q2           Q1        Q4         Q3          vs         vs      September September    vs
1 July 2019 - 30 September 2019            2019       2019         2019      2018       2018      Q3 2018    Q2 2019       2019      2018   YTD 2018

Total M&C production (mined and purchase of concentrate)
PGM production (5E+Au)           000 oz    1,141.2     1,118.7     1,028.2   1,257.1    1,345.7      (15)%        2%       3,288.2   3,929.6    (16)%
  Platinum                       000 oz      526.8      520.3       471.9     602.1      649.1       (19)%        1%       1,519.0   1,882.5    (19)%
  Palladium                      000 oz      351.8      347.1       326.6     386.9      410.9       (14)%        1%       1,025.5   1,224.1    (16)%
Tonnes milled                    000         7,328      7,271       6,879     6,849      7,028         4%         1%       21,479    21,411       0%
Built-up head grade (4E)    g/t            3.65         3.55       3.59       3.38        3.58         2%         3%         3.60      3.51       2%

M&C production (mined and purchase of concentrate) excluding 4E production now tolled
PGM production (5E+Au)           000 oz    1,141.2     1,118.7     1,028.2   1,061.9    1,146.0       (0)%        2%       3,288.2   3,347.6     (2)%
  Platinum                       000 oz      526.8      520.3       471.9     485.2      529.6        (1)%        1%       1,519.0   1,535.3     (1)%
 Palladium                       000 oz      351.8      347.1       326.6     328.8      351.5         0%         1%       1,025.5   1,050.4     (2)%

Mined operations
Total mined production
PGM production (5E+Au)           000 oz      766.6      747.7       706.1     688.1      759.4         1%         3%       2,220.4   2,308.3     (4)%
  Platinum                       000 oz      351.7      342.6       322.0     312.6      348.9         1%         3%       1,016.3   1,056.8     (4)%
  Palladium                      000 oz      262.8      260.5       250.8     238.3      260.3         1%         1%        774.1     806.1      (4)%
Tonnes milled                    000         7,327      7,270       6,878     6,957      7,347        (0)%        1%       21,478    22,279      (4)%
Built-up head grade (4E)         g/t          3.65       3.55        3.59      3.38       3.58         2%         3%         3.60      3.54       2%

Own managed mines
PGM production (5E+Au)           000 oz      642.5      633.6       600.9     558.6      636.9         1%         1%       1,877.0   1,960.7     (4)%
  Platinum                       000 oz      296.8      290.5       275.1     254.9      294.3         1%         2%        862.4     901.3      (4)%
  Palladium                      000 oz      225.9      228.1       219.7     200.3      224.1         1%        (1)%       673.6     704.1      (4)%
Tonnes milled                    000         6,340      6,372       5,984     5,958      6,372        (1)%       (1)%      18,698    19,439      (4)%
Built-up head grade (4E)         g/t          3.64       3.53        3.57      3.30       3.53         3%         3%         3.58      3.50       2%

Mogalakwena mine
PGM production (5E+Au)           000 oz      287.7      302.5       307.2     256.8      271.8         6%        (5)%       897.4     913.2      (2)%
  Platinum                       000 oz      123.4      127.9       130.4     108.4      113.9         8%        (4)%       381.7     386.8      (1)%
  Palladium                      000 oz      130.8      139.5       141.5     118.3      127.1         3%        (6)%       411.8     422.6      (3)%
Tonnes milled                    000         3,331      3,506       3,385     3,371      3,295         1%        (5)%      10,222    10,404      (2)%
Built-up head grade (4E)         g/t          3.46       3.34        3.49      2.93       3.23         7%         4%         3.43      3.28       5%

Amandelbult mine
PGM production (5E+Au)           000 oz      232.9      229.0       192.8     190.8      245.4        (5)%        2%        654.6     678.1      (3)%
  Platinum                       000 oz      118.4      116.5        98.5      96.5      126.0        (6)%        2%        333.5     346.2      (4)%
  Palladium                      000 oz       54.3       53.7        44.9      44.9       57.3        (5)%        1%        152.9     160.2      (5)%
Tonnes milled                    000         1,803      1,840       1,590     1,503      1,946        (7)%       (2)%       5,233     5,459      (4)%
Built-up head grade (4E)         g/t          4.15       3.98        3.88      4.07       4.05         3%         4%         4.01      3.96       1%

Unki mine
PGM production (5E+Au)           000 oz       53.8       52.5        43.3      49.7       50.4         7%         2%        149.6     143.0       5%
  Platinum                       000 oz       23.6       23.1        19.3      22.1       22.4         5%         2%         66.1      63.9       3%
  Palladium                      000 oz       21.4       20.9        17.0      19.6       19.7         9%         2%         59.2      55.9       6%
Tonnes milled                    000          556          538        454       496        491        13%         3%        1,548     1,429       8%
Built-up head grade (4E)         g/t          3.45       3.47        3.47      3.53       3.54        (3)%       (0)%        3.46      3.50      (1)%

Mototolo mine
PGM production (5E+Au)           000 oz       68.1       49.6        57.7      61.2       69.2        (2)%       37%        175.4     226.4     (23)%
  Platinum                       000 oz       31.4       23.0        26.8      28.0       31.9        (2)%       37%         81.2     104.5     (22)%
  Palladium                      000 oz       19.4       14.0        16.3      17.5       19.9        (3)%       39%         49.7      65.4     (24)%
Tonnes milled                    000          651          488        556       590        640         2%        33%        1,696     2,148     (21)%
Built-up head grade (4E)      g/t             3.24       3.16        3.23      3.24       3.44        (6)%        3%         3.21      3.36      (4)%

Joint venture mined production
PGM production (5E+Au)           000 oz      124.1      114.1       105.2     129.5      122.5         1%         9%        343.4     347.6      (1)%
  Platinum                       000 oz       54.9       52.1        46.9      57.7       54.7         0%         5%        153.9     155.5      (1)%
  Palladium                      000 oz       36.9       32.4        31.2      38.0       36.2         2%        14%        100.5     102.0      (1)%
Tonnes milled                    000          987          898        894     1,000        976         1%        10%        2,780     2,840      (2)%
Built-up head grade (4E)         g/t          3.75       3.72        3.71      3.83       3.89        (4)%        1%         3.73      3.83      (3)%

Purchase of concentrate
Total purchase of concentrate including 4E production now tolled
PGM production (5E+Au)           000 oz      374.6      371.0       322.1     569.0      586.3       (36)%        1%       1,067.7   1,621.3    (34)%
  Platinum                       000 oz      175.1      177.6       149.9     289.4      300.2       (42)%       (1)%       502.6     825.7     (39)%
  Palladium                   000 oz          89.0       86.6        75.7     148.6      150.6       (41)%        3%        251.4     418.0     (40)%

Total purchase of concentrate excluding 4E production now tolled
PGM production (5E+Au)           000 oz      374.6      371.0       322.1     373.8      386.6        (3)%        1%       1,067.7   1,039.3      3%
  Platinum                       000 oz      175.1      177.6       149.9     172.6      180.7        (3)%       (1)%       502.6     478.4       5%
  Palladium                   000 oz          89.0       86.6        75.7      90.5       91.2        (2)%        3%        251.4     244.3       3%

Joint ventures purchase of concentrate
PGM production (5E+Au)           000 oz      124.1      114.1       105.2     129.5      122.5         1%         9%        343.4     347.6      (1)%
  Platinum                       000 oz       54.9       52.1        46.9      57.7       54.7         0%         5%        153.9     155.5      (1)%
  Palladium                   000 oz          36.9        32.4       31.2      38.0       36.2         2%        14%        100.5     102.0      (1)%

Third party purchase of concentrate excluding 4E production now tolled
PGM production (5E+Au)           000 oz      250.5      256.9       216.9     244.3      264.1        (5)%       (2)%       724.3     691.8       5%
  Platinum                       000 oz      120.3      125.5       102.9     114.8      126.0        (5)%       (4)%       348.7     322.9       8%
  Palladium                      000 oz       52.1       54.2        44.6      52.5       55.1        (5)%       (4)%       150.9     142.3       6%

4E tolled production
4E production (Pt, Pd, Rh, Au)   000 oz        -           -           -      195.2      199.7      (100)%        -            -      582.0    (100)%
  Platinum                       000 oz        -           -           -      116.9      119.5      (100)%        -            -      347.2    (100)%
  Palladium                      000 oz        -           -           -       58.1       59.4      (100)%        -            -      173.7    (100)%


 Anglo American Platinum                                                                         Q3 2019   Q3 2019    YTD       YTD    YTD 2019
 PGM Production Report - Q3 2019                Q3        Q2        Q1        Q4        Q3          vs        vs   September September    vs
 1 July 2019 - 30 September 2019               2019      2019      2019      2018      2018      Q3 2018   Q2 2019    2019      2018   YTD 2018

 Refined production excluding tolling
 PGM Production (5E+Au)           000 oz      1,192.0   1,273.5     871.2   1,528.2   1,079.6       10%       (6)%    3,336.8   3,256.7     2%
   Platinum                       000 oz        578.5     591.0     411.7     770.9     556.2        4%       (2)%    1,581.2   1,631.5    (3)%
   Palladium                      000 oz        362.0     428.4     293.6     493.8     321.5       13%      (15)%    1,083.9   1,008.0     8%
   Minor PGMs and gold            000 oz        251.5     254.2     165.9     263.5     201.9       25%       (1)%     671.7     617.2      9%
 Base metal production
   Nickel                         tonnes        6,827     5,591     4,231     6,723     5,553       23%       22%     16,649    16,349      2%
   Copper                         tonnes        3,343     3,554     3,157     4,242     2,855       17%       (6)%    10,054    10,057     (0)%
   Chrome                         000 t         236.9     240.9     183.3     179.5     249.5       (5)%      (2)%     661.1     679.5     (3)%

 Toll refined production
 4E production (Pt, Pd, Rh, Au)   000 oz        168.7     153.4       -         -         -          -         -       322.1        -       -
   Platinum                       000 oz        100.9      97.9       -         -         -          -         -       198.8        -       -
  Palladium                   000 oz             51.4      49.1       -         -          -         -         -       100.4        -       -

 Refined production excluding tolling and 4E purchase of concentrate now tolled in all periods
 PGM (5E+Au)                      000 oz      1,168.4   1,217.3     790.4   1,288.0     912.7       28%       (4)%    3,176.0   2,749.6    16%
   Platinum                       000 oz        564.4     559.0     364.1     624.7     452.5       25%        1%     1,487.4   1,322.7    12%
  Palladium                   000 oz            355.4     410.8     267.6     421.0     274.8       29%      (13)%    1,033.8    859.7     20%

 Sales volume excluding trading
 PGM (5E+Au)                      000 oz      1,048.4   1,275.1     884.9   1,507.2   1,208.9      (13)%     (18)%    3,208.4   3,717.7   (14)%
   Platinum                       000 oz        537.4     595.2     414.2     776.9     530.1        1%      (10)%    1,546.8   1,647.3    (6)%
  Palladium                   000 oz          316.9     475.9     292.1      455.3     324.3        (2)%     (33)%    1,084.9   1,057.8     3%

 Sales volume excluding trading and 4E purchase of concentrate now tolled in all periods
 PGM (5E+Au)                      000 oz      1,022.9   1,205.6     786.6   1,274.0   1,041.0       (2)%     (15)%    3,015.0   3,188.6    (5)%
   Platinum                       000 oz        522.2     557.8     358.2     629.8     431.1       21%       (6)%    1,438.2   1,333.6     8%
   Palladium                      000 oz        309.7     451.3     259.9     388.3     277.1       12%      (31)%    1,020.9    900.1     13%

 Trading sales volume (7)
 PGM (5E+Au)                      000 oz        110.1     117.0      67.7      18.0      85.0       29%       (6)%     294.8     205.0     44%
   Platinum                       000 oz         17.5      13.0       5.0       1.5      26.9      (35)%      35%       35.5      92.5    (62)%
   Palladium                      000 oz         79.6      81.0      58.7      16.5      55.0       45%       (2)%     219.4     108.0    103%



(7) Trading sales volume – not produced by Anglo American Platinum operations

Note: (5E+Au) refers to Platinum, Palladium, Rhodium, Iridium, Ruthenium + Gold
      (4E) refers to Platinum, Palladium, Rhodium, Gold


Johannesburg

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


Sponsor:
Merrill Lynch South Africa Proprietary Limited

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 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 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: 22/10/2019 08:00:00
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