Wrap Text
PGM Production Report for the First Quarter ending 31 March 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 FIRST QUARTER ENDING 31 MARCH 2019
OVERVIEW
• Commitment to elimination of fatalities – no fatalities occurred in Q1 2019
• Total PGM production (expressed as 5E+Au metal in concentrate) decreased 6% to 998,900 ounces,
(normalising for the transition of Sibanye-Stillwater material to a tolling arrangement), due to the once-off
benefit of additional ore stockpile which increased production at Mototolo and Unki in Q1 2018, as well as
Eskom power disruptions and operational challenges across the portfolio in the quarter
• Own managed mines PGM production increased 4% to 601,000 ounces, due to the inclusion of Mototolo
as own-mine production
• Joint venture PGM production (mined and purchase of concentrate) decreased 29% to 210,400 ounces
due to Mototolo now reported as an own mine
• Purchase of PGM concentrate from third parties decreased by 44% to 216,800 ounces largely due to the
transition of material from Sibanye-Stillwater to a tolling arrangement
• Refined PGM production decreased by 14% to 871,200 ounces following the triennial planned stock take
at the PMR, maintenance at processing operations, as well as the impact from Eskom power disruptions
• PGM sales volumes were down 21% to 884,900 ounces, largely in line with lower refined production
• 2019 Production guidance (metal in concentrate) remains unchanged at 4.2 – 4.5 million PGM ounces
Anglo American Platinum Q1 2019 Q1 2019
PGM Production Report - Q1 2019 Q1 Q4 Q3 Q2 Q1 vs vs
Period 1 January 2019 - 31 March 2019 2019 2018 2018 2018 2018 Q1 2018 Q4 2018
Total M&C Production (mined and purchase of concentrate)
Total PGM Production (5E + Au)(1) 000 oz 998.9 1,030.3 1,113.5 1,075.9 1,062.8 (6)% (3)%
Total PGM Production (including Sibanye material)(2) 000 oz 1,028.2 1,256.9 1,345.7 1,294.7 1,289.2 (20)% (18)%
Own managed mines 000 oz 601.0 535.6 567.6 586.3 580.4 4% 12%
Mogalakwena 000 oz 307.2 256.8 271.8 313.8 327.6 (6)% 20%
Amandelbult 000 oz 192.8 190.7 245.4 225.7 207.0 (7)% 1%
Unki 000 oz 43.3 49.8 50.4 46.8 45.8 (5)% (13)%
Mototolo 000 oz 57.7 38.3 - - - 51%
Union mine 000 oz - - - - 23.1 (100)%
Joint venture production 000 oz 210.4 281.6 314.4 309.2 298.0 (29)% (25)%
Third party purchase of concentrate(3) 000 oz 216.8 439.7 463.8 399.2 387.6 (44)% (51)%
Gross refined production
PGM Production (5E+Au) 000 oz 871.2 1,528.2 1,079.6 1,159.6 1,017.5 (14)% (43)%
Sales volume
PGM (5E+Au) 000 oz 884.9 1,507.2 1,208.9 1,386.0 1,122.8 (21)% (41)%
(1) Total PGM Production is normalised to exclude purchase of concentrate production from Sibanye-Stillwater in the comparative period (1 Jan 2018 to 31 December 2018),
which transitioned to a tolling arrangement on 1 January 2019
(2) Total PGM production (including Sibanye material) includes purchase of concentrate material from Sibanye-Stillwater in the comparative periods
(3) Third party purchase of concentrate in the comparative periods include Sibanye-Stillwater purchase of concentrate which moved to a tolling arrangement on 1 January 2019
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 saw a slight decline from 2.67 to 2.97.
PGM PRODUCTION
Total PGM production decreased 6% to 998,900 ounces (platinum production decreased by 5% to 471,900
ounces and palladium production decreased by 6% to 326,600 ounces), after normalising for the transition of
Sibanye-Stillwater material to a tolling arrangement from 1 January 2019 (which equated to 115,700 platinum
ounces and 58,100 palladium ounces in Q1 2018). Production was also lower in the quarter due to the one-off
benefit of additional ore stockpile which increased production at Mototolo and Unki in Q1 2018, as well as Eskom
power disruptions and operational challenges across the portfolio in the quarter.
PGM production from own mines
Total PGM production from own managed mines increased 4% to 601,000 ounces (platinum production
increased 4% to 275,000 ounces and palladium production was flat at 219,700 ounces), due to the inclusion of
Mototolo production as own-mine production.
Mogalakwena PGM production decreased 6% to 307,200 ounces (platinum and palladium production decreased
by 6% to 130,400 ounces and 141,500 ounces respectively) largely due to Eskom power disruptions, as well as
lower concentrator recoveries, partly offset by an increase in grade.
Amandelbult PGM production decreased 7% to 192,800 ounces (platinum production decreased by 5% to
98,500 ounces and palladium decreased by 11% to 44,900 ounces). The decreases were primarily due to major
hoisting capacity and shaft upgrades which delayed hoisting for two weeks, as well as electrical breakdowns
exacerbated by Eskom power disruptions.
Unki PGM production decreased 5% to 43,300 ounces (platinum production decreased by 6% to 19,300 ounces
and palladium production decreased by 4% to 17,000 ounces) largely due to additional Q1 2018 production
mined from ore stockpiles. Normalising for this impact, production at Unki was flat.
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 produced 57,700 ounces PGM
ounces (platinum production was 26,800 ounces and palladium production was 16,300 ounces).
PGM production from joint ventures (own mined production and purchase of concentrate)
Joint venture PGM production decreased by 29% to 210,400 ounces (platinum production decreased by 31%
to 93,800 ounces and palladium production decreased 28% to 62,400 ounces). Modikwa PGM production
decreased by 8% to 72,800 ounces compared to Q1 2018, which included additional production toll treated from
Mototolo mine (7,500 PGM ounces). This was partially offset by improved concentrator recovery at Kroondal.
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 decreased 44% largely due to the transition of material from
Sibanye-Stillwater to a tolling arrangement from 1 January 2019. This material is currently work-in-progress
inventory and first delivery will be at the end of April 2019, when we will start recognising toll treated ounces.
Refined production and sales volumes
Refined PGM production decreased by 14% to 871,200 ounces (platinum production decreased by 18% to
411,700 ounces and refined palladium production decreased by 8% to 293,600 ounces). Q1 2019 production
was lower following maintenance on Waterval Smelter, the Anglo Convertor Plant (ACP) and the Base Metals
Refinery during the quarter, the annual planned stocktake (including the triennial physical stock take at the
Precious Metals Refinery), as well as the impact from Eskom power disruptions.
There has been a further build up in work-in-progress inventory following the impact of power disruptions, and
this should be refined in full by the end of 2019. However, if power disruptions persist, there could be an impact
to the timing of refining the built-up work-in-progress inventory in full.
PGM sales volumes decreased by 21% to 884,900 ounces (platinum sales volumes decreased by 14% to
414,200 ounces and palladium sales volumes decreased by 11% to 292,100), largely in-line with refined
production.
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 as guided at the 2018 Annual Results Presentation in February. Production
guidance is down on 2018 due to the transition of Sibanye-Stillwater material to a tolling arrangement in place
of its concentrate previously purchased by Anglo American Platinum.
Anglo American Platinum Q1 2019 Q1 2019
PGM Production Report - Q1 2019 Q1 Q4 Q3 Q2 Q1 vs vs
Period 1 January 2019 - 31 March 2019 2019 2018 2018 2018 2018 Q1 2018 Q4 2018
Total M&C Production (mined and purchase of concentrate)
Total PGM Production (5E + Au)(1) 000 oz 998.9 1,030.3 1,113.5 1,075.9 1,062.8 (6)% (3)%
Total PGM Production (including Sibanye material) (2) 000 oz 1,028.2 1,256.9 1,345.7 1,294.7 1,289.2 (20)% (18)%
Platinum 000 oz 471.9 602.3 649.0 619.6 613.8 (23)% (22)%
Palladium 000 oz 326.6 386.5 410.8 406.0 407.3 (20)% (16)%
Tonnes Milled 000 tonne 6,879 6,849 7,028 7,284 7,099 (3)% 0%
Grade (4E) g/t 3.58 3.38 3.58 3.60 3.45 4% 6%
Mined operations
Own managed mines
PGM Production (5E+Au) 000 oz 601.0 535.6 567.6 586.3 580.4 4% 12%
Platinum 000 oz 275.0 244.4 262.3 270.6 263.9 4% 13%
Palladium 000 oz 219.7 193.6 204.1 215.7 219.0 0% 13%
Tonnes Milled 000 tonne 5,985 5,739 5,732 5,987 5,574 7% 4%
Grade (4E) g/t 3.57 3.30 3.54 3.39 3.53 1% 8%
Mogalakwena mine
PGM Production (5E+Au) 000 oz 307.2 256.8 271.8 313.8 327.6 (6)% 20%
Platinum 000 oz 130.4 108.4 113.9 133.4 139.4 (6)% 20%
Palladium 000 oz 141.5 118.2 127.1 145.1 150.5 (6)% 20%
Tonnes Milled 000 tonne 3,385 3,370 3,295 3,640 3,470 (3)% 0%
Grade (4E) g/t 3.49 2.93 3.23 3.43 3.34 3% 19%
Amandelbult mine
PGM Production (5E+Au) 000 oz 192.8 190.7 245.4 225.7 207.0 (7)% 1%
Platinum 000 oz 98.5 96.5 126.0 116.3 103.9 (5)% 2%
Palladium 000 oz 44.9 44.9 57.3 52.2 50.7 (11)% (0)%
Tonnes Milled 000 tonne 1,590 1,502 1,946 1,854 1,659 (4)% 6%
Grade (4E) g/t 3.88 4.07 4.05 3.90 3.93 (1)% (5)%
Unki mine
PGM Production (5E+Au) 000 oz 43.3 49.8 50.4 46.8 45.8 (5)% (13)%
Platinum 000 oz 19.3 22.0 22.4 20.9 20.6 (6)% (12)%
Palladium 000 oz 17.0 19.6 19.7 18.4 17.8 (4)% (13)%
Tonnes Milled 000 tonne 454 496 491 493 445 2% (8)%
Grade (4E) g/t 3.47 3.53 3.54 3.46 3.49 (1)% (2)%
Mototolo mine
PGM Production (5E+Au) 000 oz 57.7 38.3 - - - 51%
Platinum 000 oz 26.8 17.5 - - - 53%
Palladium 000 oz 16.3 10.9 - - - 50%
Tonnes Milled 000 tonne 556 371 - - - 50%
Grade (4E) g/t 3.23 3.24 - - - (0)%
Other mined operations
Union mine
PGM Production (5E+Au) 000 oz - - - - 23.1 (100)%
Platinum 000 oz - - - - 11.6 (100)%
Palladium 000 oz - - - - 5.2 (100)%
Tonnes Milled 000 tonne - - - - 205 (100)%
Grade (4E) g/t - - - - 3.90 (100)%
Joint venture operations - mined only
PGM Production (5E+Au) 000 oz 105.2 140.8 157.2 154.6 149.0 (29)% (25)%
Platinum 000 oz 46.9 63.1 70.6 69.6 67.5 (31)% (26)%
Palladium 000 oz 31.2 41.2 46.1 45.1 43.5 (28)% (24)%
Tonnes Milled 000 tonne 894 1,110 1,296 1,297 1,320 (32)% (19)%
Grade (4E) g/t 3.70 3.77 3.78 3.68 3.64 2% (2)%
Purchase of concentrate
Total purchase of concentrate
PGM Production (5E+Au) 000 oz 322.0 580.5 620.9 553.8 536.6 (40)% (45)%
Platinum 000 oz 150.0 294.8 316.1 279.4 270.8 (45)% (49)%
Palladium 000 oz 75.7 151.8 160.6 145.2 139.7 (46)% (50)%
Joint ventures
PGM Production (5E+Au) 000 oz 105.2 140.8 157.2 154.6 149.0 (29)% (25)%
Platinum 000 oz 46.9 63.1 70.6 69.6 67.5 (31)% (26)%
Palladium 000 oz 31.2 41.2 46.1 45.1 43.5 (28)% (24)%
Third parties
PGM Production (5E+Au) 000 oz 216.8 439.7 463.8 399.2 387.6 (44)% (51)%
Platinum 000 oz 103.1 231.7 245.5 209.8 203.3 (49)% (56)%
Palladium 000 oz 44.5 110.7 114.4 100.1 96.3 (54)% (60)%
(1) Total PGM Production is normalised to exclude purchase of concentrate production from Sibanye-Stillwater in the comparative period (1 Jan 2018 to 31 December 2018),
which transitioned to a tolling arrangement on 1 January 2019
(2) Total PGM production (including Sibanye material) includes purchase of concentrate material from Sibanye-Stillwater in the comparative periods
Anglo American Platinum Q1 2019 Q1 2019
PGM Production Report - Q1 2019 Q1 Q4 Q3 Q2 Q1 vs vs
Period 1 January 2019 - 31 March 2019 2019 2018 2018 2018 2018 Q1 2018 Q4 2018
Gross refined production
PGM Production (5E+Au) 000 oz 871.2 1,528.2 1,079.6 1,159.6 1,017.5 (14)% (43)%
Platinum 000 oz 411.7 770.9 556.2 572.7 502.6 (18)% (47)%
Palladium 000 oz 293.6 493.8 321.5 366.7 319.8 (8)% (41)%
Other PGMs and gold 000 oz 166.0 263.5 201.9 220.2 195.1 (15)% (37)%
Base metal production
Nickel 000 tonne 4.2 6.7 5.6 5.7 5.1 (18)% (37)%
Copper 000 tonne 3.2 4.2 2.9 4.0 3.2 0% (24)%
Chrome 000 tonne 183.3 179.5 249.5 211.4 218.6 (16)% 2%
Sales volume
PGM (5E+Au) 000 oz 884.9 1,507.2 1,208.9 1,386.0 1,122.8 (21)% (41)%
Platinum 000 oz 414.2 776.9 530.1 636.4 480.8 (14)% (47)%
Palladium 000 oz 292.1 455.3 324.3 405.3 328.2 (11)% (36)%
Achieved metal prices
Platinum (US$/oz) 823 819 812 904 971 (15)% 0%
Palladium (US$/oz) 1,399 1,129 954 979 1,041 34% 24%
Rhodium (US$/oz) 2,631 2,512 2,354 2,105 1,779 48% 5%
Average exchange rate achieved on sales ZAR/US$ 14.09 14.26 14.17 12.76 11.93 18% (1)%
Realised basket price (US$/ Pt oz) 2,620 2,042 2,271 2,185 2,494 5% 28%
Realised basket price (ZAR/Pt oz) 36,969 29,133 32,199 27,897 29,751 24% 27%
Realised basket price (US$/PGM oz) 1,226 1,052 996 1,003 1,068 15% 17%
Realised basket price (ZAR/PGM oz) 17,304 15,017 14,120 12,809 12,738 36% 15%
Johannesburg, South Africa
25 April 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 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: 25/04/2019 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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