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PGM Production Report for the Second Quarter ending 30 June 2018
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 2018
OVERVIEW
• Commitment to elimination of fatalities – no fatalities occurred in Q2 2018
• Total PGM production (expressed as 5E+Au metal in concentrate) of 1,294,700 ounces, including
platinum production of 619,600 ounces and palladium production of 406,000 ounces was flat year
on year, due to improved operational performances across the portfolio, despite the closure of
unprofitable ounces from Bokoni, which was placed on care and maintenance in Q3 2017
• Own mined PGM production increased 11% to 586,300 ounces due to continued exceptional
performance from Mogalakwena, supported by strong performances from Amandelbult and Unki
• Joint venture PGM production (mined and purchase of concentrate) increased 7% to 309,200 ounces
due to a strong performance from Kroondal supported by processing of ore stockpile from Mototolo
• Purchase of PGM concentrate from associates was down 31% primarily due to the closure of
unprofitable production from Bokoni in Q3 2017
• Refined PGM production increased marginally by 1% to 1,159,600 ounces, despite a planned
smelter rebuild at Mortimer smelter in Q2 2018
• PGM sales volumes increased 9% to 1,386,000 ounces due to strong production, supplemented by
a draw down in refined inventory
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 improved significantly to 2.90 compared to 3.91 in Q2 2017.
PGM PRODUCTION
Total PGM production was flat, as improved operational performances across the portfolio offset the
closure of unprofitable production from Bokoni in Q3 2017. Platinum and palladium production
increased marginally to 619,600 ounces and 406,000 ounces respectively
PGM production from own-managed mines
Own mined PGM production increased by 11% to 586,300 ounces due to continued exceptional
performance from Mogalakwena, supported by strong performances from Amandelbult and Unki.
Platinum production increased by 12% to 270,600 ounces and palladium production increased by 11%
to 215,600 ounces.
Mogalakwena PGM production increased by 15% to 313,800 ounces, driven by higher grade, an
increase in concentrator throughput and higher recoveries. Platinum production increased by 17% to
133,400 ounces and palladium production increased by 14% to 145,100 ounces.
Amandelbult PGM production increased by 6% to 225,700 ounces, driven by continued operational
improvement that was supported by increased development at Dishaba as mining activities transition
to this section. Platinum production increased by 7% to 116,300 ounces and palladium production
increased by 5% to 52,200 ounces,
Unki PGM production increased by 8% to 46,800 ounces, due to increased concentrator throughput
and recoveries. Platinum production increased by 7% to 20,900 ounces and palladium production
increased by 11% to 18,400 ounces.
PGM production from joint ventures (own mined production and purchase of concentrate)
Joint venture PGM production (Mototolo, Modikwa, Kroondal) increased by 7% to 309,200 ounces (of
which 154,600 ounces is own-mined production and 154,600 ounces is purchase of concentrate).
Platinum production increased by 8% to 139,300 ounces (of which 69,600 ounces is own-mined
production and 69,600 ounces is purchased concentrate). Palladium production increased by 6% to
90,200 ounces (of which 45,100 ounces is own-mined production and 45,100 ounces is purchased
concentrate). This was driven by a strong production performance from Kroondal, supplemented by
continued processing of ore stockpiles built up at Mototolo following the temporary closure of the
concentrator in Q3 2017.
Purchases of PGM concentrate from associates
Purchase of PGM concentrate from associates decreased by 31% to 92,600 ounces, due to the closure
of Bokoni which was placed onto care and maintenance in Q3 2017. BRPM PGM production increased
1% to 92,600 ounces. Purchase of concentrate from associates decreased by 25% for platinum to
54,300 ounces and 39% for palladium to 22,000 ounces.
Purchases of PGM concentrate from third parties
Purchase of PGM concentrate from third parties increased by 17% to 306,500 ounces due to production
purchased from Union mine following its sale. Purchase of concentrate from third parties increased 16%
to 155,500 ounces for platinum and 15% to 78,100 ounces for palladium.
Refined production and sales volumes
Refined PGM production increased marginally to 1,159,600 ounces. Refined platinum production
increased by 8% to 572,700 ounces, despite a planned smelter rebuild at Mortimer smelter in Q2 2018.
Prior period refined production was adversely affected by the planned Waterval Number 2 smelter
rebuild, as well as the high-pressure water leak at the converter plant.
Refined palladium production decreased by 2% to 366,700 ounces owing to a stock count loss that
largely impacted palladium (16,900 ounces) and rhodium (22,600 ounces).
PGM sales volumes, excluding refined metals purchased from third parties as part of our trading
activities, increased 9% to 1,386,000 ounces. Platinum sales volumes increased by 6% to 636,400
ounces while palladium sales volumes increased by 23% to 405,300 ounces as refined production was
supplemented by a draw down in refined inventory. The refined inventory is expected to return to
normalised levels in H2 2018.
Full year guidance
Following the strong quarter production, full year PGM production guidance has been revised by up to
4.85-5.10 million ounces, including 2.40-2.45 million platinum ounces. Palladium production guidance
remains at 1.5 - 1.6 million palladium ounces.
Mogalakwena production increased in part due to the high-grade area mined in H1 2018. This will
normalise to an annual average of 3.18g/t, resulting in a forecast production for 2018 of 1.15 million
PGM ounces (around 480,000 platinum ounces).
Anglo American Platinum Q2 2018 Q2 2018
Quarter two PGM Production Report Q2 Q1 Q4 Q3 Q2 vs vs
Period 1 April 2018 - 30 June 2018 2018 2018 2017 2017 2017 Q2 2017 Q1 2018
Total M&C Production (mined and purchase of concentrate)
PGM Production (5E+Au) 000 oz 1,294.7 1,289.2 1,220.0 1,303.4 1,291.3 0% 0%
Platinum 000 oz 619.6 613.7 587.0 621.5 617.1 0% 1%
Palladium 000 oz 406.0 407.7 374.9 407.5 402.2 1% (0)%
Tonnes Milled 000 tonne 7,284 7,099 7,401 7,723 7,619 (4)% 3%
Grade (4E) g/t 3.60 3.45 3.53 3.44 3.41 6% 4%
Mined operations
Own managed mines
PGM Production (5E+Au) 000 oz 586.3 580.4 545.7 555.4 528.3 11% 1%
Platinum 000 oz 270.6 263.9 253.0 255.6 242.0 12% 3%
Palladium 000 oz 215.6 219.0 195.8 202.3 194.1 11% (2)%
Tonnes Milled 000 tonne 5,987 5,573 5,630 5,883 5,721 5% 7%
Grade (4E) g/t 3.39 3.53 3.46 3.34 3.29 3% (4)%
Mogalakwena mine
PGM Production (5E+Au) 000 oz 313.8 327.6 282.2 277.7 272.8 15% (4)%
Platinum 000 oz 133.4 139.4 121.7 116.3 113.9 17% (4)%
Palladium 000 oz 145.1 150.5 127.8 129.9 127.8 14% (4)%
Tonnes Milled 000 tonne 3,640 3,470 3,461 3,475 3,508 4% 5%
Grade (4E) g/t 3.43 3.34 3.17 3.07 3.02 14% 3%
Amandelbult mine
PGM Production (5E+Au) 000 oz 225.7 207.0 226.8 233.7 212.4 6% 9%
Platinum 000 oz 116.3 103.9 114.8 119.5 108.6 7% 12%
Palladium 000 oz 52.2 50.7 53.7 55.1 49.9 5% 3%
Tonnes Milled 000 tonne 1,854 1,659 1,758 1,950 1,766 5% 12%
Grade (4E) g/t 3.90 3.93 4.02 3.79 3.80 3% (1)%
Unki mine
PGM Production (5E+Au) 000 oz 46.8 45.8 36.6 44.2 43.1 8% 2%
Platinum 000 oz 20.9 20.6 16.4 19.9 19.5 7% 1%
Palladium 000 oz 18.4 17.8 14.2 17.2 16.6 11% 3%
Tonnes Milled 000 tonne 493 445 412 457 447 10% 11%
Grade (4E) g/t 3.46 3.49 3.44 3.50 3.46 0% (1)%
Other mined operations
Union mine
PGM Production (5E+Au) 000 oz - 23.1 74.2 79.4 79.1 (100)% (100)%
Platinum 000 oz - 11.6 37.1 39.9 39.8 (100)% (100)%
Palladium 000 oz - 5.2 17.1 18.4 18.3 (100)% (100)%
Tonnes Milled 000 tonne - 205 683 694 678 (100)% (100)%
Grade (4E) g/t - 3.90 3.72 3.85 3.89 (100)% (100)%
Joint venture operations - mined only
PGM Production (5E+Au) 000 oz 154.6 149.0 132.9 140.2 144.1 7% 4%
Platinum 000 oz 69.6 67.5 59.8 62.2 64.3 8% 3%
Palladium 000 oz 45.1 43.5 38.7 42.1 42.5 6% 4%
Tonnes Milled 000 tonne 1,297 1,320 1,088 1,146 1,220 6% (2)%
Grade (4E) g/t 3.68 3.64 3.80 3.73 3.71 (1)% 1%
Purchase of concentrate
Total purchase of concentrate
PGM Production (5E+Au) 000 oz 553.8 536.7 467.2 528.4 539.8 3% 3%
Platinum 000 oz 279.4 270.8 237.2 263.7 271.0 3% 3%
Palladium 000 oz 145.2 139.8 123.4 144.8 147.1 (1)% 4%
Joint ventures
PGM Production (5E+Au) 000 oz 154.6 149.0 132.9 140.2 144.1 7% 4%
Platinum 000 oz 69.6 67.5 59.8 62.2 64.3 8% 3%
Palladium 000 oz 45.1 43.5 38.7 42.1 42.5 6% 4%
Associates
PGM Production (5E+Au) 000 oz 92.6 90.5 93.8 135.5 134.3 (31)% 2%
Platinum 000 oz 54.3 52.3 54.8 73.5 72.5 (25)% 4%
Palladium 000 oz 22.0 21.7 22.1 36.3 36.4 (39)% 1%
Third parties
PGM Production (5E+Au) 000 oz 306.5 297.2 240.6 252.6 261.4 17% 3%
Platinum 000 oz 155.5 151.0 122.6 128.0 134.2 16% 3%
Palladium 000 oz 78.1 74.5 62.6 66.4 68.1 15% 5%
Gross refined production
PGM Production (5E+Au) 000 oz 1,159.6 1,017.5 1,455.6 1,366.5 1,150.2 1% 14%
Platinum 000 oz 572.7 502.6 722.2 684.1 528.7 8% 14%
Palladium 000 oz 366.7 319.8 491.4 450.6 373.1 (2)% 15%
Other PGMs and gold 000 oz 220.2 195.1 242.0 231.7 248.5 (11)% 13%
Base metal production
Nickel 000 tonne 5.7 5.1 7.8 7.0 6.0 (5)% 12%
Copper 000 tonne 4.0 3.2 4.7 4.3 3.5 14% 25%
Chrome 000 tonne 211.4 218.6 284.8 264.1 220.5 (4)% (3)%
Sales volume (excluding trading activities)
PGM (5E+Au) 000 oz 1,386.0 1,122.8 1,511.8 1,437.9 1,276.6 9% 23%
Platinum 000 oz 636.4 480.8 721.7 663.6 600.5 6% 32%
Palladium 000 oz 405.3 328.2 473.5 462.0 330.3 23% 23%
Anglo American Platinum Q2 2018 Q2 2018
Quarter two PGM Production Report Q2 Q1 Q4 Q3 Q2 vs vs
Period 1 April 2018 - 30 June 2018 2018 2018 2017 2017 2017 Q2 2017 Q1 2018
Achieved metal prices
Platinum (US$/oz) 904 971 922 956 941 (4)% (7)%
Palladium (US$/oz) 979 1,041 987 895 804 22% (6)%
Rhodium (US$/oz) 2,105 1,779 1,417 1,062 980 115% 18%
Average exchange rate achieved on sales ZAR/US$ 12.76 11.93 13.59 13.20 13.19 (3)% 7%
Realised basket price (US$/ Pt oz) 2,185 2,494 2,071 2,058 1,796 22% (12)%
Realised basket price (ZAR/Pt oz) 27,897 29,751 28,157 27,158 23,688 18% (6)%
Realised basket price (US$/PGM oz) 1,003 1,068 989 950 845 19% (6)%
Realised basket price (ZAR/PGM oz) 12,809 12,738 13,442 12,534 11,142 15% 1%
Johannesburg, South Africa
19 July 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: 19/07/2018 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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