Anglo American Platinum announces that it has revised its 2022 refined production guidance, as our quality assurance processes have detected the delivery of sub-standard materials for the Polokwane smelter rebuild. Delivery of replacement materials will result in a two-month delay to the completion of the project. As a result, there will be a build-up in work-in-progress inventory in 2022 and a short-term timing impact to refined PGM production.

Natascha Viljoen, CEO of Anglo American Platinum, said:

“As we undergo our first full rebuild of the Polokwane smelter in twelve years, our quality assurance processes identified a defective consignment of materials required to complete the rebuild. We remain committed to ensuring the structural integrity of our Polokwane smelter, with high standards embedded into the rebuild to ensure asset integrity and the longevity of this operation. We will not compromise on safety or quality and therefore the defective materials will not be used, and a new consignment of materials is expected to be delivered by the end of October. This has resulted in a two-month delay in recommissioning the Polokwane Smelter. This will result in a build-up in work-in-progress inventory, and a timing impact to our refined production. We therefore revise our 2022 refined production guidance to between 3.7 – 3.9 million PGM ounces (previously 4.0 – 4.4 million PGM ounces). Work has commenced to find solutions to mitigate the impact on refined production this year.”

Guidance

As a result of the delay to the Polokwane smelter rebuild and the resultant work-in-progress inventory build, we have revised refined production in 2022 to between 3.7 – 3.9 million PGM ounces. Sales guidance will therefore be revised in line with refined production to between 3.7 – 3.9 million PGM ounces. There is no impact to metal-in-concentrate guidance which remains at between 3.9 – 4.3 million PGM ounces and unit cost guidance remains at between R14,000 – R15,000 per PGM ounce. All guidance is subject to no disruptions due to load-shedding. We have not updated 2023 refined production guidance at this stage until further information is available, and analysis can be conducted.