JOHANNESBURG (miningweekly.com) – World number-one platinum-miner Anglo Platinum (Angloplat) on Thursday reported lower third-quarter output, but said that it would still achieve its 2,4-million ounces production target for the 2009 financial year.
The South Africa-based platinum company also said that it expected the price of the precious metal to trade at levels above $1 300/oz for the remainder of the year.
Angloplat, led by CEO Neville Nicolau, produced 616 500 oz in the third quarter, compared with 630 400 oz produced in the second quarter of 2009.
The company attributed the lower production to a shaft care-and-maintenance programme, as well as lower ounces from pooling-and-sharing agreements. About 140 000 oz of yearly production had been loss as a result of the three shafts placed under care-and-maintenance during 2009.
The miner said it would continue to target maintaining cash operating costs per equivalent refined platinum ounce at the same level in 2009, as that achieved in 2008, of R11 096, despite inflation in electricity prices and wage inflation.
This would be achieved by replacing high-cost production at the Bleskop, Boschfontein and Brakspruit shafts with lower cost production, removing all overhead costs not associated with keeping those high-cost shafts on care-and-maintenance, employee productivity improvements, improved energy efficiency and the reduction in labour.
The group announced at the beginning of the year that it would lay off 10 000 people by the end of 2009. By the end of September, it had already reduced 11 715 positions.
The miner announced on Thursday that it would cut a further 724 position at the corporate centre and shared services by year-end, as part of a drive to reduce overhead labour to mach projected production levels.
The one-off cost of the labour reduction in 2009 was forecast to be some R300-million.
Meanwhile, Angloplat said that it expected the platinum market to be balanced in 2009 as firm investment demand, strong Chinese jewellery demand and restrained South African production would compensate for depressed autocatalyst and industrial demand.
The company said that current platinum demand remained “firm”, but that the strength of the South African currency was depressing platinum group metals producers revenues.
During the period under review, capital expenditure was R2,2-billion for the quarter and R7,4-billion for September year-to-date. The company expected to incur R9,7-billion of capital expenditure for the year.
“Anglo Platinum is confident that its committed debt facilities of R32-billion are adequate to meet its anticipated funding requirements. Year-end net debt is forecast to reach R21-billion.”
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