Anglo American Platinum PGM production
Total PGM production in Q2 2024 decreased by 2% against the prior period (Q2 2023), to 921,000 ounces. However, it marked a 10% increase from Q1 2024, reflecting early-stage progress in the operational excellence efforts at Amandelbult.
PGM production from own mines
Although PGM production from our own mines increased by 9% to 547,200 ounces compared to Q1 2024, this was a 3% decrease compared to prior period, primarily due to lower output from Mototolo, Mogalakwena and Unki, partly offset by increased
production at Amandelbult.
Mototolo PGM production decreased by 14% to 66,300 ounces largely attributed to difficult ground conditions as Lebowa shaft reaches its end of life, which was compounded by a shortage of specialised skills. However, the introduction of a new seven-day mining shift cycle at the end of the first quarter had a positive contribution on mining volumes and has partially mitigated against the production shortfalls. Concurrently, the Der Brochen project, focused on replacing infrastructure closures at Lebowa, is progressing in the execution phase, with meaningful production anticipated to ramp up in 2025.
Mogalakwena’s production decreased by 4% to 232,600 ounces due to the blending of planned low-grade ore stockpiles as the new bench cut sequence progressed during the quarter, extracting higher waste tonnes in the short term. Grades are expected to increase in the second half of the year, and the full-year grade is expected to be within the guided range of 2.7 – 2.9g/t. The Mogalakwena North Concentrator’s primary mill experienced an electrical failure on 1 July 2024 with repairs and mitigation plans underway and expected to be largely complete by end of July 2024. It is expected that this may have a ~5% impact on Mogalakwena M&C production in 2024.
Unki production decreased by 7% to 54,700 ounces due to mining through a planned lower-grade section. Despite the lower grades, adjustments in stope width are anticipated to restore grades to normalised levels in the second half of the year.
PGM production from Amandelbult increased by 7% to 157,600 ounces driven by higher throughput from underground infrastructures and improved grades resulting from operational efficiencies, although this was partially offset by metallurgical challenges at the plant. Following the two fatalities, Amandelbult imposed stoppages across the mine, in addition to complying with the Section 54 issued by the DMRE, to ensure that there are no repeats of the fatalities and lessons learned are embedded. It is anticipated that the stoppages will have a ~5% impact on the mine’s 2024 M&C production.
Modikwa production (50% own-mined) increased by 3% to 36,000 ounces due to higher grades.
Purchases of PGM concentrate
On a like-for-like basis, to include 100% of Kroondal volumes in the comparative period, purchase of concentrate volumes decreased by 2% to 373,800 ounces, reflecting lower receipts from third parties, as well as the planned ramp-down at Kroondal. This was partially offset by higher production from the Modikwa joint venture (the 50% POC).
2024 guidance
Production guidance for 2024 for M&C2 and refined production is unchanged and is expected to be 3.3-3.7 million PGM ounces, subject to the impact of Eskom load curtailment. Anglo American Platinum is on track to deliver on its cost-out programme.
The H1 2024 cash operating unit cost is expected to be ~R18,300 per PGM ounce due to lower production in the first half of the year. The continued business configuration initiatives in the second half of 2024, supplemented by further cost savings and a step-up in production will enable the achievement of the 2024 cash operating unit cost guidance of R16,500-R17,500 per PGM ounce and a targeted all-in sustaining cost (AISC) of below US$1,050 per 3E ounce.
