PGMs production up by 3% in Anglo Q4
Anglo
lowers 2019
PGMs
production guidance
Platinum
and palladium production both increased by 3% to 602,300 ounces and 386,600
ounces respectively, driven by an improved operational performance across the
majority of the portfolio says Anglo American reports a 7% increase in total
production on a copper equivalent basis for the fourth quarter of 2018,
compared to the same period in 2017, excluding the effect of the stoppage at
Minas-Rio (1).
Mark
Cutifani, Chief Executive of Anglo American, said: "Our continuing focus
on efficiency and productivity improvements across the business resulted in
another strong quarter, adding to our consistent track record of
delivery."
Own
mined platinum production decreased by 12% to 307,500 ounces and palladium
production decreased by 7% to 234,800 ounces due to the sale of Union mine on 1
February 2018, after which its production was purchased as concentrate.
Excluding Union, platinum production from own mine operations decreased by 2%
and palladium production remained flat.
Mogalakwena
platinum production decreased by 11% to 108,400 ounces and palladium production
decreased by 8% to 118,200 ounces due to an 8% reduction in ore grade, as
previously guided, as well as maintenance at one crusher, which led to a
reduction in tonnes milled.
Amandelbult
platinum and palladium production both decreased by 16% to 96,500 ounces and
44,900 ounces, respectively. The decreases were primarily due to the section 54
stoppage following the fatal incident on 18 October 2018 and Eskom power
disruptions.
Unki
platinum production increased by 34% to 22,000 ounces and palladium production
increased by 38% to 19,600 ounces due to a strong operational performance with
a 20% increase in tonnes milled 10% improvement in recovery and 3% improvement
in built-up head grade.
The
acquisition of the remaining 50% of Mototolo was concluded on 1 November 2018,
from which date 100% of its production became own mined production,
contributing 17,500 platinum ounces and 10,900 palladium ounces.
Joint
venture platinum production (Mototolo to 31 October 2018, Modikwa and Kroondal)
increased by 6% to 126,200 ounces (of which 63,100 ounces was own mined
production and 63,100 ounces was purchased concentrate). Palladium production
increased by 6% to 82,400 ounces (of which 41,200 ounces was own mined
production and 41,200 ounces was purchased concentrate). This was driven by
productivity improvements, improved plant recoveries and an increase in grades.
Purchase
of concentrate from joint ventures increased by 6% for platinum and 6% for
palladium due to increased production, as outlined above.
Purchase
of concentrate from associates decreased by 14% for platinum and 13% for
palladium. The sale of Anglo American Platinum's share in Bafokeng-Rasimone
Platinum Mine (BRPM) completed on 11 December 2018 and production was treated
as third party purchase of concentrate from 1 December 2018.
Purchase
of concentrate from third parties increased by 51% for platinum and 46% for
palladium due to concentrate purchased from Union mine following its sale, as
well as from BRPM material following its sale on 11 December 2018.
Refined
platinum production increased by 7% to 770,900 ounces, while palladium
production was flat at 493,800 ounces. Q4 2018 includes the partial release of
the work-in-progress inventory following scheduled smelter rebuilds and
maintenance at both Mortimer smelter and Polokwane smelters earlier in 2018.
Platinum
sales volumes (excluding refined metal purchased from third parties) increased
by 8% to 776,900 ounces due to higher refined production, supplemented by a
draw down in refined platinum stocks. Palladium sales volumes decreased by 4%
to 455,300 ounces in Q4, 2018
The
full year price per platinum ounce for the basket of metals sold increased by
13% to $2,219/oz compared to 2017, as 17% and 101% price increases in palladium
and rhodium respectively more than offset an 8% reduction in the platinum
price.
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