Wrap Text
PGM Production Report for the Third Quarter Ending 30 September 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 THIRD QUARTER ENDING 30 SEPTEMBER 2018
OVERVIEW
• Commitment to elimination of fatalities – no fatalities occurred in Q3 2018
• Total PGM production (expressed as 5E+Au metal in concentrate) of 1,345,700 ounces increased
3%, including platinum production of 649,000 ounces and palladium production of 410,800 ounces,
due to improved operational performances across the majority of the portfolio, despite the removal
of unprofitable ounces from Bokoni, which was placed on care and maintenance in Q3 2017
• Own mined PGM production increased 2% to 567,600 ounces due to strong performances from Unki
and Amandelbult
• Joint venture PGM production (mined and purchase of concentrate) increased 12% to 314,400
ounces due to a strong performance from Mototolo and Kroondal
• Purchase of PGM concentrate from associates was down 16% to 113,600 ounces primarily due to
the closure of unprofitable production from Bokoni in Q3 2017
• Purchase of PGM concentrate from third parties increased by 39% to 350,100 ounces due to
production purchased from Union mine following its sale
• Refined PGM production decreased by 21% to 1,079,600 ounces, due to a planned partial furnace
rebuild at Polokwane smelter in Q3 2018 which led to an increase in work-in-progress inventory.
Commissioning of the Unki smelter commenced in Q3 and is progressing well
• PGM sales volumes decreased 16% to 1,208,900 ounces due to the increase in work-in-progress
inventory, as a result of the partial furnace rebuild in Q3 2018
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 2.93 compared to 4.67 in Q3 2017, equating to a
37% improvement.
PGM PRODUCTION
Total PGM production was up 3% as improved operational performances across the majority of the
portfolio offset unprofitable production from Bokoni which was place on care and maintenance in
Q3 2017 (up 6% if Bokoni is excluded from the prior period). Platinum production increased 4% to
649,000 ounces and palladium production increased 1% to 410,800 ounces.
PGM production from own-managed mines
Own-managed mines PGM production increased by 2% to 567,600 ounces due to strong performances
from Unki and Amandelbult. Platinum production increased by 3% to 262,300 ounces and palladium
production increased by 1% to 204,100 ounces.
Mogalakwena PGM production decreased by 2% to 271,800 ounces, due to planned maintenance at
the concentrators which led to lower concentrator throughput and lower recoveries, partially offset by
higher built-up head grade. Platinum production decreased by 2% to 113,900 ounces and palladium
production decreased by 2% to 127,100 ounces as expected. In line with previous guidance,
Mogalakwena has experienced a decline in grade, and it is expected that this lower grade will continue
for the final quarter.
Amandelbult PGM production increased by 5% to 245,400 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 5% to 126,000 ounces and palladium production
increased by 4% to 57,300 ounces.
Unki PGM production increased by 14% to 50,400 ounces as a result of an increase in tonnes milled,
improvements in recovery and increased built-up head grade. Platinum production increased by 13%
to 22,400 ounces and palladium production increased by 15% to 19,700 ounces.
PGM production from joint ventures (own mined production and purchase of concentrate)
Joint venture PGM production (Mototolo, Modikwa, Kroondal) increased by 12% to 314,400 ounces (of
which 157,200 ounces is own-mined production and 157,200 ounces is purchase of concentrate).
Platinum production increased by 14% to 141,200 ounces (of which 70,600 ounces is own-mined
production and 70,600 ounces is purchased concentrate). Palladium production increased by 9% to
92,200 ounces (of which 46,100 ounces is own-mined production and 46,100 ounces is purchased
concentrate). Mototolo PGM production was up 126% largely due to lower production in Q3 2017 as
the concentrator was temporarily stopped to carry out remedial work on the Helena Tailings facility.
Kroondal PGM production increased 3% due to increased production efficiencies and plant throughput.
Modikwa PGM production decreased 10% due to equipment unavailability and maintenance of
equipment underground.
Purchases of PGM concentrate from associates
Purchase of PGM concentrate from associates decreased by 16% to 113,600 ounces, due to the
closure of Bokoni which was placed onto care and maintenance in Q3 2017. Purchase of concentrate
from associates decreased by 9% for platinum to 66,700 ounces and 25% for palladium to 27,200
ounces. BRPM PGM production increased 14% to 113,600 ounces. Following the sale of Anglo
American Platinum’s stake in BRPM, production purchased will be categorised as third-party purchase
of concentrate from completion of the transaction in Q4 2018.
Purchases of PGM concentrate from third parties
Purchase of PGM concentrate from third parties increased by 39% to 350,100 ounces due to production
purchased from Union mine following its sale. Purchase of concentrate from third parties increased 40%
to 178,800 ounces for platinum and 31% to 87,300 ounces for palladium.
Refined production and sales volumes
Refined PGM production decreased 21% to 1,079,600 ounces. Refined platinum production decreased
19% to 556,200 ounces and refined palladium production decreased by 29% to 321,500 ounces.
Refined production was impacted by the planned partial furnace rebuild at Polokwane smelter during
August and September 2018. The partial rebuild was completed successfully, and the furnace has been
recommissioned and returned to full operating capacity. Commissioning of the Unki Smelter is
progressing well, and the first matte was tapped from the new smelter on 21 September 2018. Ramp-
up of the facility to full production is continuing.
PGM sales volumes, excluding refined metals purchased from third parties as part of our trading
activities, decreased 16% to 1,208,900 ounces. Platinum sales volumes decreased by 20% to 530,100
ounces while palladium sales volumes decreased by 30% to 324,300 ounces. Refined PGM sales
volumes were supplemented by a draw down in refined inventory.
Full year guidance
Due to strong operational performance across the portfolio, 2018 full year PGM production (metal in
concentrate) has been revised up to between 5.1 to 5.2 million PGM ounces (previous guidance of 4.85
to 5.1 million PGM ounces). This includes a revised platinum production guidance of 2.45 to 2.5 million
ounces (previous guidance of 2.4 to 2.45 million ounces) and a revised palladium production guidance
of 1.55 to 1.60 million ounces (previous guidance of 1.5 to 1.6 million ounces).
Mogalakwena production has been strong to Q3 2018 in part due to a high-grade area mined, largely
in H1 2018. This will normalise to an annual average of around 3.18g/t. However, due to strong
operational performance, PGM production guidance of 1.15 million ounces will include an upgrade to
platinum production guidance of around 490,000 platinum ounces (previously 480,000 platinum
ounces).
As a result of scheduled smelter rebuilds and maintenance at both Mortimer smelter and Polokwane
smelter, there has been an increase in work-in-progress inventory, of around 460,000 PGMs including
270,000 platinum ounces and 160,000 palladium ounces as at the end of the third quarter (relative to
normalised levels of inventory). The built-up work-in-progress inventory will not be refined in full by year
end, and therefore refined production guidance is lower than produced production. Full year refined
PGM production will be at the lower end of guidance of 4.85 to 5.1 million PGM ounces, including
platinum refined production of between 2.4 and 2.45 million ounces and palladium refined production
between 1.5 and 1.6 million ounces. The remaining built-up work-in-progress PGM inventory will be
processed in H1 2019, which will return to normalised levels.
PGM sales volume guidance for 2018 has been revised up to between 5.2 and 5.3 million ounces
(previous guidance of 4.85 to 5.1 million ounces), as a draw down in refined inventory has
supplemented sales volumes. Platinum sales volume guidance will remain between 2.4 and 2.45 million
ounces and palladium sales volume guidance will be at the lower end of guidance of between 1.5 and
1.6 million ounces.
Anglo American Platinum Q3 2018 Q3 2018
Quarter three PGM Production Report Q3 Q2 Q1 Q4 Q3 vs vs
Period 1 July 2018 - 30 September 2018 2018 2018 2018 2017 2017 Q3 2017 Q2 2018
Total M&C Production (mined and purchase of concentrate)
PGM Production (5E+Au) 000 oz 1,345.7 1,294.7 1,289.2 1,220.0 1,303.4 3% 4%
Platinum 000 oz 649.0 619.6 613.8 587.0 621.5 4% 5%
Palladium 000 oz 410.8 406.0 407.4 374.9 407.5 1% 1%
Tonnes Milled 000 tonne 7,028 7,284 7,099 7,401 7,723 (9)% (4)%
Grade (4E) g/t 3.58 3.60 3.45 3.53 3.44 6% (0)%
Mined operations
Own managed mines
PGM Production (5E+Au) 000 oz 567.6 586.3 580.4 545.6 555.5 2% (3)%
Platinum 000 oz 262.3 270.6 263.9 252.9 255.7 3% (3)%
Palladium 000 oz 204.1 215.7 219.0 195.7 202.2 1% (5)%
Tonnes Milled 000 tonne 5,732 5,987 5,573 5,630 5,883 (3)% (4)%
Grade (4E) g/t 3.54 3.39 3.53 3.46 3.34 6% 4%
Mogalakwena mine
PGM Production (5E+Au) 000 oz 271.8 313.8 327.6 282.2 277.7 (2)% (13)%
Platinum 000 oz 113.9 133.4 139.4 121.7 116.3 (2)% (15)%
Palladium 000 oz 127.1 145.1 150.5 127.8 129.9 (2)% (12)%
Tonnes Milled 000 tonne 3,295 3,640 3,470 3,461 3,475 (5)% (9)%
Grade (4E) g/t 3.23 3.43 3.34 3.17 3.07 6% (6)%
Amandelbult mine
PGM Production (5E+Au) 000 oz 245.4 225.7 207.0 226.8 233.7 5% 9%
Platinum 000 oz 126.0 116.3 103.9 114.8 119.5 5% 8%
Palladium 000 oz 57.3 52.2 50.7 53.7 55.1 4% 10%
Tonnes Milled 000 tonne 1,946 1,854 1,659 1,758 1,950 (0)% 5%
Grade (4E) g/t 4.05 3.90 3.93 4.02 3.79 7% 4%
Unki mine
PGM Production (5E+Au) 000 oz 50.4 46.8 45.8 36.6 44.2 14% 8%
Platinum 000 oz 22.4 20.9 20.6 16.4 19.9 13% 7%
Palladium 000 oz 19.7 18.4 17.8 14.2 17.2 15% 7%
Tonnes Milled 000 tonne 491 493 445 412 457 8% (0)%
Grade (4E) g/t 3.54 3.46 3.49 3.44 3.50 1% 2%
Other mined operations
Union mine
PGM Production (5E+Au) 000 oz - - 23.1 74.2 79.4 (100)%
Platinum 000 oz - - 11.6 37.1 39.9 (100)%
Palladium 000 oz - - 5.2 17.1 18.4 (100)%
Tonnes Milled 000 tonne - - 205 683 694 (100)%
Grade (4E) g/t - - 3.90 3.72 3.85 (100)%
Joint venture operations - mined only
PGM Production (5E+Au) 000 oz 157.2 154.6 149.0 132.9 140.2 12% 2%
Platinum 000 oz 70.6 69.6 67.5 59.8 62.2 14% 1%
Palladium 000 oz 46.1 45.1 43.5 38.7 42.1 10% 2%
Tonnes Milled 000 tonne 1,296 1,297 1,320 1,088 1,146 13% (0)%
Grade (4E) g/t 3.78 3.68 3.64 3.80 3.73 1% 3%
Purchase of concentrate
Total purchase of concentrate
PGM Production (5E+Au) 000 oz 620.9 553.8 536.7 467.3 528.3 18% 12%
Platinum 000 oz 316.1 279.4 270.8 237.2 263.7 20% 13%
Palladium 000 oz 160.6 145.2 139.7 123.4 144.8 11% 11%
Joint ventures
PGM Production (5E+Au) 000 oz 157.2 154.6 149.0 132.9 140.2 12% 2%
Platinum 000 oz 70.6 69.6 67.5 59.8 62.2 14% 1%
Palladium 000 oz 46.1 45.1 43.5 38.7 42.1 10% 2%
Associates
PGM Production (5E+Au) 000 oz 113.6 92.6 90.5 93.8 135.5 (16)% 23%
Platinum 000 oz 66.7 54.3 52.3 54.8 73.5 (9)% 23%
Palladium 000 oz 27.2 22.0 21.7 22.1 36.3 (25)% 24%
Third parties
PGM Production (5E+Au) 000 oz 350.1 306.6 297.2 240.6 252.6 39% 14%
Platinum 000 oz 178.8 155.5 151.0 122.6 128.0 40% 15%
Palladium 000 oz 87.3 78.1 74.5 62.6 66.4 31% 12%
Gross refined production
PGM Production (5E+Au) 000 oz 1,079.6 1,159.6 1,017.5 1,455.6 1,366.5 (21)% (7)%
Platinum 000 oz 556.2 572.7 502.6 722.2 684.1 (19)% (3)%
Palladium 000 oz 321.5 366.7 319.8 491.4 450.6 (29)% (12)%
Other PGMs and gold 000 oz 201.9 220.2 195.1 242.0 231.8 (13)% (8)%
Base metal production
Nickel 000 tonne 5.6 5.7 5.1 7.8 7.0 (20)% (2)%
Copper 000 tonne 2.9 4.0 3.2 4.7 4.3 (33)% (28)%
Chrome 000 tonne 249.5 211.4 218.6 284.8 264.1 (6)% 18%
Sales volume
PGM (5E+Au) 000 oz 1,208.9 1,386.0 1,122.8 1,511.8 1,437.9 (16)% (13)%
Platinum 000 oz 530.1 636.4 480.8 721.7 663.6 (20)% (17)%
Palladium 000 oz 324.3 405.3 328.2 473.5 462.0 (30)% (20)%
Anglo American Platinum Q3 2018 Q3 2018
Quarter three PGM Production Report Q3 Q2 Q1 Q4 Q3 vs vs
Period 1 July 2018 - 30 September 2018 2018 2018 2018 2017 2017 Q3 2017 Q2 2018
Achieved metal prices
Platinum (US$/oz) 812 904 971 922 956 (15)% (10)%
Palladium (US$/oz) 954 979 1,041 987 895 7% (3)%
Rhodium (US$/oz) 2,354 2,105 1,779 1,417 1,062 122% 12%
Average exchange rate achieved on sales ZAR/US$ 14.17 12.76 11.93 13.59 13.20 7% 11%
Realised basket price (US$/ Pt \oz) 2,271 2,185 2,494 2,071 2,058 10% 4%
Realised basket price (ZAR/Pt oz) 32,199 27,897 29,751 28,157 27,158 19% 15%
Realised basket price (US$/PGM oz) 996 1,003 1,068 989 950 5% (1)%
Realised basket price (ZAR/PGM oz) 14,120 12,809 12,738 13,442 12,534 13% 10%
Johannesburg, South Africa
23 October 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: 23/10/2018 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
