Wrap Text
PGM Production Report for the Fourth Quarter ending 31 December 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 FOURTH QUARTER ENDING 31 DECEMBER 2018
OVERVIEW
• Tragically one loss of life occurred in Q4 2018
• Total PGM production (expressed as 5E+Au metal in concentrate) of 1,256,900 ounces, increased 3%
(Q4 2017: 1,220,000 ounces), due to improved operational performances particularly at Unki and the JV
portfolio
• Own managed mines PGM production marginally decreased to 535,600 ounces, down 2% as lower
production at Mogalakwena (due to planned reduction in grade) and Amandelbult (due to the impact of a
tragic fatality) was partially offset by a strong performance from Unki and the inclusion of Mototolo as own
mined production
• Joint venture PGM production (mined and purchase of concentrate) had a strong performance, increasing
6% to 281,600 ounces due to productivity improvements
• Purchase of PGM concentrate from third parties increased by 32% to 439,700 ounces due to production
purchased from Union mine and inclusion of all material from BRPM following its sale
• Refined PGM production was strong, increasing by 5% to 1,528,200 ounces due to partially refining the
build-up of work-in-progress inventory following scheduled smelter rebuilds and maintenance earlier in
2018, and the performance was up against a strong comparative quarter in Q4 2017 when additional
work-in-progress inventory was processed following the Waterval smelter run-out
• PGM sales volumes were flat at 1,507,200 ounces
REVIEW OF THE QUARTER
SAFETY
Anglo American Platinum tragically had one loss of life in Q4 2018. Mr Emmanual Thato Segale, lost his life
due to a fall of ground related incident which occurred on Thursday, 18 October 2018 at the Company’s
Dishaba Mine in Amandelbult. 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, and the Company is providing support and assistance to all
involved. Anglo American Platinum remains committed to the elimination of fatalities.
The Total Recordable Case Frequency Rate (“TRCFR”) per million hours at managed operations for the
quarter was 2.99, an 11% improvement compared to 3.36 in Q4 2017.
PGM PRODUCTION
Total PGM production increased to 1,256,900 ounces, up 3% (Q4 2017: 1,220,000 ounces), due to improved
operational performances across the majority of the portfolio. Platinum production increased by 3% to
602,300 ounces (Q4 2017: 587,000 ounces) and palladium production increased by 3% to 386,600 ounces
(Q4 2017: 374,900 ounces).
PGM production from own-managed mines
Own managed mines PGM production decreased by 2% to 535,600 ounces (Q4 2017: 545,600 ounces) due
to lower production at Mogalakwena (as guided) and Amandelbult, offset by strong performances from Unki
and the inclusion of Mototolo as an own-mine from 1 November 2018, following the completion of the
acquisition of Glencore and Kagiso-Tiso’s stakes in the Mototolo mine. Platinum production decreased by
3% to 244,400 ounces (Q4 2017: 252,900 ounces) and palladium production decreased by 1% to 193,600
ounces (Q4 2017: 195,700 ounces).
Mogalakwena PGM production decreased by 9% to 256,800 ounces (Q4 2017: 282,200 ounces) due to an
8% reduction in the built-up head grade, following from the decline in Q3 2018 and as previously guided, as
well as maintenance at one crusher, which led to a reduction in tonnes milled. Mining performance was
strong, with an increase in total tonnes mined, up 7% to 22.9 million tonnes. Platinum production decreased
11% to 108,400 ounces (Q4 2017: 121,700 ounces) and palladium production decreased 8% to 118,200
ounces (Q4 2017: 127,800 ounces).
Amandelbult PGM production decreased by 16% to 190,700 ounces (Q4 2017: 226,800 ounces) due to
lower underground production delivered to the concentrator primarily due to the section 54 stoppage
following the fatal incident on 18 October 2018 and subsequent extensive retraining of employees, some
impact from Eskom load shedding, and an increase in absenteeism in the final quarter. Platinum production
decreased 16% to 96,500 ounces (Q4 2017: 114,800 ounces) and palladium production decreased by 16%
to 44,900 ounces (Q4 2017: 53,700 ounces).
Unki had a strong production performance, with PGM production increasing by 36% to 49,800 ounces
(Q4 2017: 36,600 ounces) due to a strong operational performance with a 20% increase in tonnes milled,
10% improvement in recovery and 3% improvement in built-up head grade. Platinum production increased
by 34% to 22,000 ounces (Q4 2017: 16,400 ounces) and palladium production increased by 38% to 19,600
ounces (Q4 2017: 14,200 ounces).
The acquisition of the remaining 50% of Mototolo was concluded on 1 November 2018, from which date
100% of its production became own mined production, contributing 38,300 PGM ounces, 17,500 platinum
ounces and 10,900 palladium ounces.
PGM production from joint ventures (own mined production and purchase of concentrate)
Joint venture PGM production (Mototolo to 31 October 2018, Modikwa and Kroondal) increased by 6% to
281,600 ounces (Q4 2017: 265,800 ounces). Platinum production increased by 6% to 126,200 ounces
(Q4 2017: 119,600) and palladium production increased 6% to 82,400 ounces (Q4 2017: 77,400 ounces).
This was driven by productivity improvements, improved plant recoveries and an increase in built-up head
grades. Production from joint ventures is split 50:50 between own mined production and purchase of
concentrate.
Purchases of PGM concentrate from third parties
Purchase of PGM concentrate from third parties increased by 32% to 439,700 ounces (Q4 2017: 334,200
ounces) due to concentrate purchased from Union mine following its sale to Siyanda in February 2018, as
well as including all purchased concentrate from BRPM following its sale. Platinum production increased by
31% to 231,700 ounces (Q4 2017: 177,400 ounces) and palladium increased by 31% to 110,700 ounces
(Q4 2017: 84,700 ounces).
Refined production and sales volumes
Refined PGM production had a strong performance in Q4 2018, up 5% to 1,528,200 ounces (Q4 2017:
1,455,600 ounces). This was due to partially refining the build-up of work-in-progress inventory following
scheduled smelter rebuilds and maintenance at both Mortimer smelter and Polokwane smelters earlier in
2018, and the performance was up against a strong comparative quarter in Q4 2017 when additional work-
in-progress inventory was processed following the Waterval smelter run-out. Platinum refined production
increased 7% to 770,900 ounces (Q4 2017: 722,200 ounces), while palladium production was flat at 493,800
ounces (Q4 2017: 491,400 ounces).
PGM sales volumes (excluding refined metal purchased from third parties) was flat at 1,507,200 ounces
(Q4 2017: 1,511,800 ounces). However, platinum sales volumes increased by 8% to 776,900 ounces
(Q4 2017: 721,700 ounces) due to higher refined production, supplemented by a draw down in platinum
stocks. Palladium sales volumes decreased by 4% to 455,300 ounces (Q4 2017: 473,500 ounces).
2019 Outlook
PGM production outlook (excluding tolling material from Sibanye-Stillwater) for 2019 is 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. Production guidance is down on 2018 due to the
transition of Sibanye-Stillwater material to a tolling arrangement in place of its concentrate purchased.
Purchased production from Sibanye-Stillwater in 2018 equated to 903,900 PGM ounces, including 464,100
platinum ounces and 231,800 palladium ounces. Refined production and sales volumes should increase as
the backlog of work-in-progress-inventory is processed in full during 2019.
Anglo American Platinum Q4 2018 Q4 2018 FY 2018
Quarter four PGM Production Report Q4 Q3 Q2 Q1 Q4 vs vs FY FY vs
Period 1 October 2018 - 31 December 2018 2018 2018 2018 2018 2017 Q4 2017 Q3 2018 2018 2017 FY 2017
Total M&C Production (mined and purchase of concentrate)
PGM Production (5E+Au) 000 oz 1,256.9 1,345.7 1,294.7 1,289.2 1,220.0 3% (7)% 5,186.5 5,007.8 4%
Platinum 000 oz 602.3 649.0 619.6 613.8 587.0 3% (7)% 2,484.7 2,397.4 4%
Palladium 000 oz 386.6 410.8 406.0 407.4 374.9 3% (6)% 1,610.8 1,557.4 3%
Tonnes Milled 000 tonne 6,849 7,028 7,284 7,099 7,401 (7)% (3)% 28,260 29,698 (5)%
Grade (4E) g/t 3.38 3.58 3.60 3.45 3.53 (4)% (6)% 3.48 3.46 1%
Mined operations
Own managed mines
PGM Production (5E+Au) 000 oz 535.6 567.6 586.3 580.4 545.6 (2)% (6)% 2,269.9 2,122.4 7%
Platinum 000 oz 244.4 262.3 270.6 263.9 252.9 (3)% (7)% 1,041.2 976.4 7%
Palladium 000 oz 193.6 204.1 215.7 219.0 195.7 (1)% (5)% 832.4 775.8 7%
Tonnes Milled 000 tonne 5,739 5,732 5,987 5,574 5,630 2% 0% 23,032 22,423 3%
Grade (4E) g/t 3.30 3.54 3.39 3.53 3.46 (5)% (7)% 3.46 3.36 3%
Mogalakwena mine
PGM Production (5E+Au) 000 oz 256.8 271.8 313.8 327.6 282.2 (9)% (6)% 1,170.0 1,098.5 7%
Platinum 000 oz 108.4 113.9 133.4 139.4 121.7 (11)% (5)% 495.1 463.8 7%
Palladium 000 oz 118.2 127.1 145.1 150.5 127.8 (8)% (7)% 540.9 508.9 6%
Tonnes Milled 000 tonne 3,370 3,295 3,640 3,470 3,461 (3)% 2% 13,775 13,622 1%
Grade (4E) g/t 2.93 3.23 3.43 3.34 3.17 (8)% (9)% 3.20 3.09 4%
Amandelbult mine
PGM Production (5E+Au) 000 oz 190.7 245.4 225.7 207.0 226.8 (16)% (22)% 868.8 858.0 1%
Platinum 000 oz 96.5 126.0 116.3 103.9 114.8 (16)% (23)% 442.7 438.0 1%
Palladium 000 oz 44.9 57.3 52.2 50.7 53.7 (16)% (22)% 205.1 202.5 1%
Tonnes Milled 000 tonne 1,502 1,946 1,854 1,659 1,758 (15)% (23)% 6,961 7,049 (1)%
Grade (4E) g/t 4.07 4.05 3.90 3.93 4.02 1% 0% 3.98 3.86 3%
Unki mine
PGM Production (5E+Au) 000 oz 49.8 50.4 46.8 45.8 36.6 36% (1)% 192.8 165.9 16%
Platinum 000 oz 22.0 22.4 20.9 20.6 16.4 34% (2)% 85.9 74.6 15%
Palladium 000 oz 19.6 19.7 18.4 17.8 14.2 38% (1)% 75.5 64.4 17%
Tonnes Milled 000 tonne 496 491 493 445 412 20% 1% 1,925 1,752 10%
Grade (4E) g/t 3.53 3.54 3.46 3.49 3.44 3% (0)% 3.51 3.47 1%
Mototolo mine
PGM Production (5E+Au) 000 oz 38.3 - - - - 38.3 -
Platinum 000 oz 17.5 - - - - 17.5 -
Palladium 000 oz 10.9 - - - - 10.9 -
Tonnes Milled 000 tonne 371 - - - - 371 -
Grade (4E) g/t 3.24 - - - - 3.2 -
Other mined operations
Union mine
PGM Production (5E+Au) 000 oz - - - 23.1 74.2 (100)% 23.1 308.6 (93)%
Platinum 000 oz - - - 11.6 37.1 (100)% 11.6 154.5 (92)%
Palladium 000 oz - - - 5.2 17.1 (100)% 5.2 71.4 (93)%
Tonnes Milled 000 tonne - - - 205 683 (100)% 205 2,688 (92)%
Grade (4E) g/t - - - 3.90 3.72 (100)% 3.90 3.86 1%
Joint venture operations - mined only
PGM Production (5E+Au) 000 oz 140.8 157.2 154.6 149.0 132.9 6% (10)% 601.6 548.1 10%
Platinum 000 oz 63.1 70.6 69.6 67.5 59.8 6% (11)% 270.8 245.3 10%
Palladium 000 oz 41.2 46.1 45.1 43.5 38.7 6% (11)% 175.9 161.5 9%
Tonnes Milled 000 tonne 1,110 1,296 1,297 1,320 1,088 2% (14)% 5,023 4,587 10%
Grade (4E) g/t 3.77 3.78 3.68 3.64 3.80 (1)% (0)% 3.71 3.72 (0)%
Purchase of concentrate
Total purchase of concentrate
PGM Production (5E+Au) 000 oz 580.5 620.9 553.8 536.7 467.3 24% (7)% 2,291.9 2,028.7 13%
Platinum 000 oz 294.8 316.1 279.4 270.8 237.2 24% (7)% 1,161.1 1,021.2 14%
Palladium 000 oz 151.8 160.6 145.2 139.7 123.4 23% (5)% 597.3 548.6 9%
Joint ventures
PGM Production (5E+Au) 000 oz 140.8 157.2 154.6 149.0 132.9 6% (10)% 601.6 548.1 10%
Platinum 000 oz 63.1 70.6 69.6 67.5 59.8 6% (11)% 270.8 245.3 10%
Palladium 000 oz 41.2 46.1 45.1 43.5 38.7 6% (11)% 175.9 161.5 9%
Third party
PGM Production (5E+Au) 000 oz 439.7 463.8 399.2 387.6 334.2 32% (5)% 1,690.3 1,480.6 14%
Platinum 000 oz 231.7 245.5 209.8 203.3 177.4 31% (6)% 890.3 775.9 15%
Palladium 000 oz 110.7 114.4 100.1 96.3 84.7 31% (3)% 421.4 387.1 9%
Gross refined production
PGM Production (5E+Au) 000 oz 1,528.2 1,079.6 1,159.6 1,017.5 1,455.6 5% 42% 4,784.9 5,116.2 (6)%
Platinum 000 oz 770.9 556.2 572.7 502.6 722.2 7% 39% 2,402.4 2,511.9 (4)%
Palladium 000 oz 493.8 321.5 366.7 319.8 491.4 0% 54% 1,501.8 1,668.4 (10)%
Other PGMs and gold 000 oz 263.5 201.9 220.2 195.1 242.0 9% 31% 880.7 935.9 (6)%
Base metal production
Nickel 000 tonne 6.7 5.6 5.7 5.1 7.8 (14)% 20% 23.1 26.0 (11)%
Copper 000 tonne 4.2 2.9 4.0 3.2 4.7 (11)% 45% 14.3 15.7 (9)%
Chrome 000 tonne 179.5 249.5 211.4 218.6 284.8 (37)% (28)% 859.0 978.8 (12)%
Sales volume
PGM (5E+Au) 000 oz 1,507.2 1,208.9 1,386.0 1,122.8 1,511.8 (0)% 25% 5,224.9 5,382.2 (3)%
Platinum 000 oz 776.9 530.1 636.4 480.8 721.7 8% 47% 2,424.2 2,504.6 (3)%
Palladium 000 oz 455.3 324.3 405.3 328.2 473.5 (4)% 40% 1,513.1 1,571.7 (4)%
Achieved metal prices
Platinum (US$/oz) 819 812 904 971 922 (11)% 1% 871 947 (8)%
Palladium (US$/oz) 1,129 954 979 1,041 987 14% 18% 1,029 876 17%
Rhodium (US$/oz) 2,512 2,354 2,105 1,779 1,417 77% 7% 2,204 1,094 101%
Average exchange rate achieved on sales ZAR/US$ 14.26 14.17 12.76 11.93 13.59 5% 1% 13.33 13.33 (0)%
Realised basket price (US$/ Pt oz) 2,042 2,271 2,185 2,494 2,071 (1)% (10)% 2,219 1,966 13%
Realised basket price (ZAR/Pt oz) 29,133 32,199 27,897 29,751 28,157 3% (10)% 29,601 26,213 13%
Realised basket price (US$/PGM oz) 1,052 996 1,003 1,068 989 6% 6% 1,030 915 13%
Realised basket price (ZAR/PGM oz) 15,017 14,120 12,809 12,738 13,442 12% 6% 13,734 12,198 13%
Johannesburg, South Africa
24 January 2019
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
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