Harare – Anglo American Platinum (Amplats) marginally lifted its platinum group metals (PGM) production to 1.1 million ounces, a 3 percent rise for the December quarter compared to the same period in 2020, solidified by stable output from its own managed mines.
Production from the mines it manages was 3 percent stronger for the period under review at 634 600 ounces owing to “stronger production from Amandelbult and Unki (Zimbabwe mine) increasing by 15 percent and 13 percent, respectively”, Anglo Platinum said in a JSE Sens announcement yesterday.
However, refined PGM production was stronger after rising by as much as 107 percent to nearly 1.4 million ounces. PGM sales volumes for the period were 70 percent stronger at 1.2 million ounces.
Amplats’s base metals output – including minerals such as copper and nickel – increased 45 percent, with nickel up 53 percent to 5 700 tonnes and copper up 34 percent to 4 000 tonnes “due to high base-metal loaded areas” mined at Mogalakwena.
Natascha Viljoen, the chief executive officer of Amplats, described production performance for the quarter as “strong” especially after production for the year 2021 surged 13 percent compared to the previous year.
“Amandelbult, Unki and Modikwa operations delivered substantial production increases in the quarter,” said Viljoen.
The precious metal miner continued on its path of “strong refined production performance, increasing by 107 percent in the quarter”, taking the full year refined production higher by 89 percent.
PGM sales volumes increased by 70 percent in the quarter due to the increase in refined production, despite the company having to build up refined metal inventories “to more normal levels following robust demand” earlier in the year.
At the Unki mine in Zimbabwe, PGM production increased by 13 percent to 63 300 ounces, while platinum output was 14 percent stronger at 28 000 ounces.
This was due to “completion of the concentrator debottlenecking project”, which is now expected to translate to a monthly increase in tonnes milled. This would boost PGM ounce production from Unki to 50 000 ounces per year.
PGM production at the Kroondal mine, however, dipped 14 percent to 126 800 ounces, with platinum output also decreasing 14 percent to 60 600 ounces.
“The decrease is mainly due to difficult mining ground conditions, the planned ramp-down of Simunye shaft as it comes to the end of life of the mine, as well as safety stoppages of the underground operations following two fatalities in October,” the company said.
Amplats has given production guidance for 2022 at 4.1-4.5 million ounces on the back of a refined production guidance for is 4.2 to 4.6 million ounces.
This is, however, “subject to the potential impact of Eskom load shedding” and the “extent of further Covid-19 related disruptions”.
Amplats said its unit cost guidance for 2022 was expected to be between R13 800 to R14 500 per PGM ounce.