Anglo American Platinum Reports Decrease in PGM Production for Q1 2024
On April 23, 2024, Anglo American Platinum provided a quarterly update for the period ending March 31, 2024, showing a 7% decrease in total Platinum Group Metals (PGMs) production compared to the first quarter of 2023. The production amounted to 834,100 ounces, attributed to various operational challenges.
The report highlighted a reduction in output from the company’s own-managed mines, notably at Amandelbult and Mototolo, with a 6% decrease to 504,300 ounces. Production at Mogalakwena and Unki remained stable. The decline at Amandelbult was driven by equipment breakdowns and challenging ground conditions, whereas Mototolo faced issues related to the implementation of new safety technologies and geological challenges.
The company also noted a 10% reduction in purchased PGM concentrate, totaling 329,800 ounces, reflecting a decrease in production from third-party sources and the transition of Kroondal's production being reported as third-party concentrate following the sale of the company’s 50% interest in the operation in November 2023.
Despite these production challenges, refined PGM output remained stable at 628,000 ounces. Toll refined PGM production saw a 10% increase to 160,200 ounces.
Safety remains a priority for Anglo American Platinum, with no work-related fatalities reported for over 27 months. However, the total recordable case frequency rate regressed slightly by 7% compared to the previous quarter.
Craig Miller, CEO of Anglo American Platinum, emphasized the company's commitment to safety and sustainability, despite the lower metal-in-concentrate production. He mentioned ongoing optimization initiatives and a restructuring process aimed at improving productivity and efficiency.
For 2024, the company maintains its production guidance between 3.3 million and 3.7 million PGM ounces and expects unit costs to range from R16,500 to R17,500 per PGM ounce. The all-in-sustaining cost is projected to remain below US$1,050 per 3E ounce. Plans for the future include putting the Mortimer smelter on care and maintenance and repurposing it for slag cleaning, with targeted reductions in operations set for 2025.
