Anglo American Platinum has reported a 10% decline in total platinum group metal (PGM) production in the third quarter due to the breakdown at the primary mill at the Mogalakwena North Concentrator in July.
The breakdown resulted in a four-week downtime and a loss of 45,000oz, though this was partly offset by improved performance at the South Concentrator.
The other reason for the lower production was the self-imposed safety stoppages at Amandelbult, which resulted in a loss of 20,000oz after two tragic fatalities in June, while the transition of the Kroondal volumes to a 4E toll arrangement effective September 1 also played a role, CEO Craig Miller said.
Own-managed mines’ PGM production decreased by 9% to 552,000oz when compared to the prior period, though the group has kept its full-year guidance unchanged at 3.3-million to 3.7 million PGM ounces.
Refined PGMs production (owned production, excluding tolling) in the third quarter increased by 22% to 1.1-million ounces primarily driven by the continued release of work-in-progress inventory compared to the same period last year.
However, the group revised upward its refined production guidance to between 3.7-million and 3.9-million ounces from 3.3-million to 3.7-million ounces, assuming no Eskom load-curtailment. This is as a result of strong and stable performance from Amplat’s processing assets, which enabled it to release built-up work-in-progress inventory.
“We have continued to implement the productivity and operational excellence initiatives as part of our action plan to create a more resilient business. The latest initiatives are well advanced and should be fully implemented by the end of 2024,” said Miller.
Amplats has delivered about R8bn of its targeted R10bn cost and capital reduction programme, and the consultation process for section 189A restructuring has concluded with 90% of the exits finalised and the remainder to be completed by end of 2024.
“We also continue to progress towards a responsible and orderly separation from Anglo American. Our management team and the independent board subcommittee are working alongside a dedicated team within Anglo American to achieve this and I am confident that our demerger will be successfully completed in 2025,” he said.
Anglo is in the process of demerging the platinum business as part of the simplification of its portfolio.
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