Overview – Q3 2023 performance against prior period Q3 2022
- Safety performance – No fatalities at own-managed and Joint Operations with a 46% improvement in Total Recordable Case Frequency Rate (TRCFR) at managed operations to 1.28 per million hours.
- Total Platinum Group Metals (PGMs) production (expressed as 5E+Au metal-in-concentrate) decreased by 2% to 1,029,600 ounces.
- Own-managed mines PGMs production decreased by 3% to 568,200 ounces mainly as a result of the expected lower grades from Mogalakwena and lost production due to poor ground conditions at Amandelbult’s Dishaba Mine.
- Refined PGMs production (owned production, excluding tolling) decreased by 9% to 909,700 ounces due to an unplanned multi – municipal water stoppage in July at our processing operations in Rustenburg (54,000 ounces) and lower metal in concentrate production (26,000 ounces).
- PGMs sales volumes (from production, excluding sales from trading) increased by 2% to 951,800 due to a draw down in refined stock.
- Guidance for 2023 - Metal-in-concentrate PGM production and refined production guidance for 2023 is unchanged at 3.6-4.0 million ounces. Unit cost per PGM ounce produced is anticipated to be at the upper end of the range of R16,800 - R17,800 per PGM ounce produced, considering foreign exchange rate volatility, load-curtailment and continued inflationary pressure.
Craig Miller, CEO of Anglo American Platinum, said:
“On the 4th of October, we observed our annual Global Safety Day at Anglo American Platinum. On this day, we reaffirm our commitment to each other, to ensure each and every one of our colleagues returns home uninjured after every day at work. Zero harm remains our primary safety objective and we are focused to continue with the safety improvements we are delivering at our operations.
We remain on track to deliver our 2023 guidance, with a strong focus on operational resilience in the last quarter through safe and sustainable operations.”
Review of the quarter
Safety
We recorded no work-related fatalities during the period at own-managed or Joint Operations. The TRCFR at managed operations of 1.28 per million hours improved by 46% compared to the prior period of 2.35 per million hours. These improvements will continue to be driven by our “stand up for safety as one with our business partners” campaigns which strives for consistent and equal safety measures amongst all our employees including contractors.
Metal-in-concentrate (M&C) PGM production
Total PGM production
Total PGM production in Q3 2023 decreased 2% against the prior period (Q3 2022) to 1,029,600 ounces, with platinum production decreasing 1% to 475,900 ounces, and palladium production decreasing by 3% to 314,800 ounces.
PGM production from own-managed mines
Total PGM production from own-managed mines decreased by 3% to 568,200 ounces primarily due to lower production from Mogalakwena and Amandelbult.
PGM production at Mogalakwena decreased by 5% to 246,800 ounces. In line with guidance, we continued to mine lower grades at Mogalakwena which resulted in a 3% reduction in 4E built-up head grade to 2.75g/t from 2.84g/t in Q3 2022.
PGM production from Amandelbult achieved a 25% improvement against Q2 2023 which equates to a 4% decrease to 184,900 ounces against the prior period which was driven primarily by continued lower available ore reserves as a result of poor ground conditions at Amandelbult’s Dishaba Mine. Improving ore reserve availability at Dishaba Lower remains a priority.
Unki and Mototolo PGM production increased by 1% against the prior period.
PGM production from Joint Operations (50% own-mined production and 50% purchase of concentrate)
Total PGM production from Joint Operations increased by 2% to 195,000 ounces.
Total Modikwa PGM production increased by 5% against the prior quarter to 79,200 ounces due to increased grades and recoveries.
Total Kroondal PGM production decreased by 1% to 115,800 ounces.
Purchases of PGM concentrate from third parties
Purchases of PGM concentrate (POC) from third parties of 266,300 ounces are in line with the prior period.
Refined PGM production
Refined PGM production (from owned production, excluding tolling) decreased by 9% to 909,700 ounces, largely due to an unplanned multi – municipal water stoppage at our processing operations in Rustenburg which impacted operations by 5 working days (54,000 PGM ounces) and lower metal-in-concentrate production. Refined platinum production decreased by 6% to 428,500 ounces and refined palladium production decreased by 10% to 285,500 ounces.
Eskom load-curtailment had a minimal impact on production for the quarter with less than 5,000 ounces deferred for future processing.
Toll-refined PGM production increased by 6% to 159,800 PGM ounces.
Base metal production
Nickel production decreased by 5% to 5,400 tonnes and copper production decreased by 21% to 3,100 tonnes due to lower toll refined production in Q3 2023.
PGM sales volumes
PGM sales volumes (excluding trading) increased by 2% to 951,800 ounces due to a draw down in refined stock.
The average Q3 2023 realised basket price of $1,539/PGM ounce was 39% lower than Q3 2022 reflecting lower market prices.
2023 Guidance
We are on track to meet our production and unit cost guidance. Metal-in-concentrate (M&C) PGM guidance for 2023 is 3.6 - 4.0 million PGM ounces(1) and refined PGM production guidance is 3.6 - 4.0 million PGM ounces.
Unit cost per PGM ounce produced is anticipated to be at the upper end of the range considering foreign exchange rate volatility, load-curtailment and continued inflationary pressure. Guidance for unit cost per PGM ounce produced is R16,800 - R17,800.
(1)Metal in concentrate production is expected to be 1.65 – 1.85 million ounces of platinum, 1.15 – 1.25 million ounces of palladium, and 0.8 – 0.9 million ounces of other PGMs and gold.
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Sponsor:
Merrill Lynch South Africa (Pty) Ltd t/a BofA Securities