Overview – Q4 2023 performance against prior period Q4 2022
- Safety performance – We delivered a solid safety performance with no work-related fatalities for the period at own-managed operations and Joint Operations. The Total Recordable Case Frequency Rate (TRCFR) improved, recording a further 16% reduction to 1.88 per million hours.
- Total Platinum Group Metals (PGMs) production (expressed as 5E+Au metal-in-concentrate) decreased by 6% to 932,200 ounces. Total annual PGM production was 3,806,100 ounces.
- Own-managed mines PGMs production decreased by 3% to 543,500 ounces mainly due to lower production at Amandelbult as a result of planned infrastructure closures and poor ground conditions at Dishaba Mine. The decrease at Amandelbult was partially offset by higher production from Unki and Mogalakwena.
- Joint Operations PGM production (mined and purchase of concentrate) decreased by 47% to 104,400 ounces. The disposal of our 50% interest in Kroondal was completed and effective 1 November 2023, resulting in Kroondal production reported as third party purchase of concentrate (POC) arrangement going forward.
- Purchase of PGM concentrate from third parties increased by 21% to 284,300 ounces, due to the inclusion of Kroondal production as 100% third party POC from 1 November 2023.
- Refined PGMs production (owned production, excluding tolling) increased by 36% to 1,191,100 ounces, with refined production in the prior period (Q4 2022) impacted by the delay in recommissioning the Polokwane smelter. Total annual refined PGM production was 3,800,600 ounces.
- PGMs sales volumes (from production, excluding sales from trading) increased by 32% to 1,166,200 ounces in line with higher refined production.
- Guidance for 2024 - Metal-in-concentrate PGM production and refined production guidance is between 3.3-3.7 million ounces. Cash operating unit costs guidance is between R16,500-R17,500 per PGM ounce.
Craig Miller, CEO of Anglo American Platinum, said:
“Despite the challenging macro environment and the operational headwinds experienced throughout the year, I am pleased that we maintained a safe and stable operating performance in the last quarter, with a strong focus on operational resilience and zero harm.
Total PGM production was 6% lower, as continued poor ground conditions and infrastructure closures at Amandelbult contributed to lower production. We also completed the disposal of our 50% interest in Kroondal effective 1 November 2023, resulting in Kroondal production reported as third party POC going forward.
Looking ahead and in response to the prevailing weakness of the PGM basket price and persistent cost inflation, we reset our operational plans in December 2023 and are deploying a series of measures to improve our competitive position while preserving our long-term optionality. We are committed to safely delivering production with lower cost and capital requirements whilst deploying value over volume capital allocation discipline. These measures will allow us to capitalise on our industry leading portfolio for the long-term benefit of our stakeholders.”
Review of the quarter
Safety
We remain committed to operating safely and sustainably and recorded zero work-related fatalities during the period at own-managed operations and Joint Operations. Total recordable case frequency rate (TRCFR) of 1.88 per million hours, improved 16% compared to the prior period of 2.25 per million hours. These improvements will continue to be driven by our strategic focus areas of stopping unsafe conditions, reporting and treating high potential hazards and the management of high-risk work.
Metal-in-concentrate (M&C) PGM production
Total PGM production
Total PGM production in Q4 2023 decreased 6% against the prior period (Q4 2022) to 932,200 ounces. Total annual PGM production was 3,806,100 ounces.
PGM production from own-managed mines
Total PGM production from own-managed mines decreased by 3% to 543,500 ounces primarily due to lower production from Amandelbult and Mototolo, partially offset by higher production from Unki and Mogalakwena.
PGM production at Mogalakwena increased by 3% to 265,300 ounces, as the mining sequence extracted higher grades in the quarter. This was partially offset by a decrease in throughput resulting from the High-Pressure Grinding Rolls (HPGR) breakdowns at North concentrator. The stability challenges have been corrected and HPGR is running at full capacity.
PGM production from Amandelbult decreased by 15% to 149,900 ounces, due to planned infrastructure closures and poor ground conditions at Dishaba Mine.
Mototolo PGM production decreased by 7% to 66,500 ounces, resulting from Lebowa shaft ramp-down to end of life, partially offset by higher recoveries and grade.
PGM production from Unki increased by 17% to 61,800 ounces, driven by 13% higher throughput, supported by a 5% increase in the 4E built-up head grade to 3.39g/t.
PGM production from Joint Operations (50% own-mined production and 50% purchase of concentrate)
Total PGM production from Joint Operations decreased by 47% to 104,400 ounces.
The disposal of our 50% interest in Kroondal was completed and effective 1 November 2023, resulting in Kroondal production transitioning to a 100% third party POC arrangement. As a result, total Kroondal PGM production decreased by 75% to 31,800 ounces.
Total Modikwa PGM production increased by 1% against the prior quarter to 72,600 ounces driven by higher grades and recoveries.
Purchases of PGM concentrate from third parties
Purchases of PGM concentrate from third parties increased by 21% to 284,300 ounces, due to the inclusion of Kroondal production as 100% third party POC from 1 November 2023.
Refined PGM production
Refined PGM production (from owned production, excluding tolling) increased by 36% to 1,191,100 ounces as Q4 2022 was affected by the Polokwane smelter rebuild. Eskom load-curtailment had a minimal impact on production for the quarter. Total annual refined PGM production was 3,800,600 ounces, with c.82,000 ounces of deferred production from the impact of Eskom load-curtailment.
Toll refined PGM production increased by 1% to 175,100 PGM ounces for the quarter.
Base metal production
Nickel production increased by 46% to 7,000 tonnes and copper production increased by 5% to 4,000 tonnes, due to Q4 2022 production being affected by the Polokwane smelter rebuild.
PGM sales volumes
PGM sales volumes (excluding trading) increased by 32% to 1,166,200 ounces in line with higher refined production.
The average Q4 2023 realised basket price of $1,400/PGM ounce was 39% lower than Q4 2022 reflecting lower palladium and rhodium market prices. The full year average realised basket price of $1,657/PGM ounce was 35% lower than 2022.
2024 Guidance
Production guidance for 2024 for metal in concentrate (M&C) (1) and refined production (1) is expected to be between 3.3-3.7 million PGM ounces, subject to the impact of Eskom load curtailment. Refined production is usually lower in the first quarter than the rest of the year, due to the annual stock count and planned processing maintenance.
Unit cost guidance for 2024 of R16,500 - R17,500 per PGM ounce is consistent with the guidance provided in December 2023.
(1) Metal in concentrate (M&C) production by source is expected to be own mined of 2.1-2.3 million ounces and purchase of concentrate of 1.2-1.4 million ounces. The average M&C split by metal is Platinum: ~45%, Palladium: ~35% and Other: ~20%.
View full PDF of this press release (252KB, opens in a new window)
View Q4 2023 production tables (29KB, opens in a new window)
View Anglo American Platinum trading statement for the twelve months ended 31 December 2023
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Merrill Lynch South Africa (Pty) Ltd t/a BofA Securities