Amplats reports 'strong' Q3 performance, remains on track to meet FY guidance

21st October 2021 By: Chanel de Bruyn - Creamer Media Senior Deputy Editor Online

Amplats reports 'strong' Q3 performance, remains on track to meet FY guidance

Amplats CEO Natascha Viljoen

Platinum group metals (PGMs) miner Anglo American Platinum (Amplats) remains on track to meet its full-year production and sales targets after a strong third-quarter performance.

Metal-in-concentrate PGMs production for the quarter ended September 30 was 1.12-million ounces, in line with production in the third quarter of 2020, while metal-in-concentrate platinum production increased by 1% year-on-year to 519 100 oz.

Metal-in-concentrate palladium production, however, decreased by 3% year-on-year to 342 600 oz.

Metal-in-concentrate PGMs production from own-managed mines decreased by 7% year-on-year to 606 300 oz, while platinum production decreased by 6% year-on-year to 277 600 oz and palladium production by 10% year-on-year to 215 900 oz.

PGMs production at the Mogalakwena mine decreased by 12% year-on-year to 276 500 oz, mainly as a result of planned maintenance at the Mogalakwena North concentrator. Year-to-date PGMs production at the mine, nevertheless, remains 4% ahead of that of the comparable period in 2020.

The Amandelbult mine, meanwhile, achieved a 7% year-on-year increase in PGMs production to 218 300 oz in the third quarter, largely as a result of the implementation of improvement plans which led to a 13% increase in tonnes milled and more than offset the decline in grade.

The Mototolo mine's PGMs production decreased by 4% to 69 000 oz, owing to the impact of regional community unrest which affected production for five days, resulting in a drawdown of lower-grade ore stockpiles to mitigate the lower output from the mine.

At Unki, PGMs production decreased by 29% year-on-year to 42 500 oz, owing to the scheduled integration of the concentrator, following the completion of the concentrator debottlenecking project.

Mining performance continued to perform well, leading to a build-up of ore tonnes ahead of the concentrator which will be processed in 2022. The debottlenecking project should see monthly tonnes milled increase from about 175 000 t a month to about 210 000 t a month, resulting in an increase of about 50 000 oz of PGMs a year.

PGMs production from joint operatons, meanwhile, increased by 19% year-on-year to 227 400 oz, mainly as a result of a year-on-year recovery from the impacts of Covid-19 experienced during 2020.

REFINED PRODUCTION
Amplats' refined PGMs production from owned production, excluding tolling, increased by 39% year-on-year to 1.42-million tonnes in the third quarter, while refined platinum production increased by 32% year-on-year to 663 500 oz.

Amplats notes that the strong performance reflected the operational stability in the Anglo Converter Plant (ACP), following the completion of the rebuild and recommissioning of the Phase A unit in November 2020.

The ACP Phase B rebuild is on schedule for completion in the fourth quarter.

"The completion and successful integration of our debottlenecking project at Unki demonstrates how we are maximising value from our portfolio of high-quality assets, resulting in an annual run-rate increase of 50 000 PGM ounces.

"Similarly, the strong performance of the ACP shows the increased resilience we are embedding across our business, with operational stability our major focus," says CEO Natascha Viljoen.

She adds that the company is on track to achieve its full-year production and sales targets, while managing the ongoing risks posed by Covid-19 and the potential for further Eskom power outages.

"Our efforts to mitigate these risks include an extensive workplace vaccination programme, with over 22 000 employees and contractors receiving at least one vaccine dose.

"We have also progressed our plans to build a 100 MW solar plant at Mogalakwena, which will progress us towards our target of achieving carbon neutrality across our business by 2040, thereby further increasing our business resilience and making a real difference for our stakeholders, particularly for those local to our operations.”

Amplat's full-year production guidance for metal-in-concentrate PGMs production remains unchanged at 4.2-million to 4.4-million ounces, while the refined PGMs production guidance and PGM sales guidance remains unchanged at 4.8-million to five-million ounces.