Anglo American Platinum reports on Q4 2022 refined PGM production
Total PGM production in Q4 2022 decreased 10% against the prior period (Q4 2021) to 990,400 ounces, with platinum production decreasing 10% to 458,500 ounces, and palladium production decreasing by 11% to 307,500 ounces.
Refined PGM production
Refined PGM production (from owned production, excluding tolling) decreased by 37% to 877,200 ounces, mainly due to the rebuild of Polokwane smelter, which had been delayed in October 2022 due to the delivery of sub-standard materials, lower M&C receipts, as well as the prior period being higher than normal as built-up inventory from the ACP rebuild was processed.
Refined platinum production decreased by 40% to 391,200 ounces and refined palladium production decreased by 34% to 278,500 ounces. The reduction in refined production was partially mitigated by strong utilisation and throughput from our other smelters, Waterval and Mortimer, helping to release some of the built-up inventory. The Polokwane smelter rebuild was completed in December 2022, with ramp-up largely completed in January.
The impact of the delay to the Polokwane smelter rebuild, as well as Eskom load-shedding, net of inventory release and strong performance from Waterval and Mortimer smelters during the year, resulted in a year-end build-up in work-in- progress inventory of c.100,000 PGM ounces.
Toll-refined PGM production decreased by 4% to 173,100 PGM ounces.
Base metal production
Nickel production decreased by 16% to 4,800 tonnes and copper production decreased by 5% to 3,800 tonnes.
PGM sales volumes
PGM sales volumes (excluding trading) decreased by 31% to 883,400 ounces, in line with lower refined production. Platinum sales volumes decreased by 40% to 382,100 ounces and palladium sales volumes decreased by 29% to 282,200 ounces.
The average Q4 2022 realised basket price of $2,293/PGM ounce was lower than Q4 2021 due to lower rhodium, iridium, and ruthenium prices.
2023 Guidance (unchanged)
Metal-in-concentrate (M&C) PGM guidance for 2023 is 3.6 – 4.0 million PGM ounces(1). Refined PGM production guidance is 3.6 – 4.0 million PGM ounces, subject to the impact of Eskom load-shedding. Unit cost guidance for 2023 is R16,800 – R17,800 per PGM ounce.
Metal in concentrate production is expected to be 1.65 – 1.85 million ounces of platinum, 1.15 – 1.25 million ounces of palladium, and 0.8 – 0.9 million ounces of other PGMs and gold.
