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

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.

Download the Anglo American Platinum Limited PGM Production Report for the third quarter ended 30 September 2019