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

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.

Download the Anglo American Platinum Limited Production Report for the first quarter ended 31 March 2019