Anglo American Platinum releases its outlooks for 2022 and 2023 – 2024

Anglo American Platinum says that due to the strong refined production performance in 2021, resulting in the majority of the built-up WIP inventory being processed, refined production guidance for 2022 has been revised to 4.2–4.6 million PGM ounces, to reflect the expected M&C production, the processing of the lower WIP inventory, and the scheduled Polokwane smelter rebuild.

The first full rebuild of the Polokwane smelter is scheduled for H2 2022. This scheduled rebuild is in line with its asset management strategy and its strategic priority of embedding resilience across the asset base and the business, including through a detailed programme of planned maintenance for all assets.

M&C production in 2022 will be impacted by planned maintenance, particularly at the Mogalakwena South Concentrator, which is aligned to the downtime at the Polokwane smelter. As a result, M&C production for 2022 is expected to be in the region of 4.1–4.5 million ounces.

Unit cost guidance for 2022 is expected to be R13,800 – R14,500 per PGM ounce, which reflects ongoing inflationary pressures expected to materialise in 2022 and increased physical mining activities at Mogalakwena.

OUTLOOK 2023 – 2024

M&C PGM production will remain flat in 2023 and 2024 as Kroondal and parts of the upper section at Tumela mine, part of the Amandelbult complex, come to their end of life. This decrease in production is expected to be offset by the benefits of the P101 operational excellence programme, and the modernisation plans at Amandelbult, which should result in an increase in PGM volumes mined from the remaining portfolio of assets.

Part of the increase in mined volumes is expected to come from Mogalakwena, with its mine plan sequenced to mine through a higher base metals area from 2022. In conjunction with the Polokwane smelter rebuild in H2 2022, which will lead to a higher-than-normal ratio of material to be processed from Mogalakwena in 2023, there will be a short-term constraint on the Anglo Converter Plant (ACP).

This will result in a temporary build-up in PGM WIP inventory, resulting in lower refined PGM production in 2023 of 3.8–4.2 million PGM ounces. Refined production in 2024 should recover to 4.1–4.5 million PGM ounces.

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