Anglo American Platinum refined PGM guidance up to 5.1moz for 2021

Anglo American Platinum says that metal-in-concentrate (M&C) production is likely to be within guidance at c.4.3 million PGM ounces for 2021. Refined production guidance has been increased from 4.8–5.0 million ounces to 5.0–5.1 million ounces due to a continued strong performance from the ACP Phase A, leading to higher-than-expected refined production. The majority of the build-up in work-in-progress (WIP) inventory (due to the temporary closure of the ACP in 2020 for repairs) has been refined in 2021. The remaining build-up in WIP inventory will be refined in 2022.

Unit cost of production in 2021 was impacted by lower-than-expected M&C production caused by increased maintenance, as well as ongoing inflationary pressure on input costs due to higher diesel and fuel costs, and higher consumable input costs owing to the effects of Covid-19 on supply chains, as well as logistics constraints importing input goods into South Africa. As a result, unit cost guidance for the 2021 financial year will increase from R12,000 – 12,500 per PGM ounce to c.R13,000 per PGM ounce.

Capital expenditure guidance is maintained at R7.0–7.5 billion. Further capital expenditure guidance will be provided in the 2021 Annual Results release on 21 February 2022.

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