Anglo American Platinum increases PGMs production by 59%

Anglo American Platinum in its PGMs Production Report for the second quarter ending 30 June 2021 says total PGMs production (expressed as 5E+Au metal-in-concentrate) increased by 59% (vs. Q2 2020) to 1,057,900 ounces, due to a strong recovery in production despite the ongoing effect of the Covid-19 pandemic.

Own-managed mines PGMs production increased by 59% to 601,500 ounces, due to a strong recovery in production from all operations compared to the prior period, which was materially impacted by national lockdowns to curb the spread of Covid-19.

Refined PGMs production (owned production, excluding tolling) increased by 233% to 1,353,700 ounces, due to operational stability following the rebuild and recommissioning of the ACP in November 2020, which performed ahead of plan.

PGMs sales volumes (from production, excluding sales from trading) increased by 162% to 1,437,100 ounces in line with the increase in refined production, and supplemented by a drawdown from refined inventory, following robust demand.

Full year guidance for M&C PGM production is tightened to between 4.2 – 4.4 million ounces, as a result of the lower third-party concentrate receipts and the continuing impact of Covid-19 on operations, while refined PGM production is revised up due to proven operational stability, to between 4.8 – 5.0 million ounces.

Natascha Viljoen, CEO of Anglo American Platinum, said: “We have delivered a strong recovery in mined and refined production, though our operations continue to face ongoing constraints due to the Covid-19 pandemic as we strive to help keep our people and communities safe. Although we had no work-related fatalities in the first half of the year, we are disappointed with an increase in injuries and plans are in place to continue safety improvements and ensure a sustained turnaround.

“PGMs production increased by 59% compared to Q2 2020, with a solid performance from own-managed operations.

Our refined production increased by 233%, as processing operations proved their operational stability following the rebuild and recommissioning of the ACP in November 2020. Sales volumes increased by 162% due to the increase in refined production and was supplemented by the drawdown of platinum and palladium from refined inventory, as we saw robust demand for these metals. We have tightened our M&C production guidance to between 4.2–4.4 million PGM ounces due to lower third-party concentrate receipts and the ongoing impact of Covid-19 on production.

However, due to the proven operational stability of our processing operations, we have revised our refined production guidance up, to between 4.8–5.0 million PGM ounces.

While our operations have not been directly affected by the recent unrest in South Africa, we have stringent risk management procedures incorporated into our response plans. Risks to our supply chain are being monitored and we continue to work on ways to support our communities that may feel the knock-on impacts of the disruptions caused by the unrest.”