Anglo American Platinum reported a downturn in its full-year 2023 production figures, with its Zimbabwe operation, Unki Mine, providing a crucial buffer against further declines. Unki Mine saw a 5% increase in total Platinum Group Metals (PGM) production, reaching 243,800 ounces, thanks to a concentrator debottlenecking project completed in 2022.
Despite challenges such as mill relining post-debottlenecking, Unki managed a 3% increase in tonnes milled over the previous year and recorded a slight improvement in the 4E built-up head grade to 3.46g/t. However, Unki's financial performance faced pressure, with cash operating costs climbing 9% to $183 million, largely due to significant increases in development, mining square meters, and inflationary pressures, notably in electricity, explosives, and chemicals.
The mine's EBITDA plummeted by 51% to R2.1 billion, with economic free cash flow dropping from R3.6 billion in the previous year to R1.3 billion. On a group level, Anglo American Platinum saw a 5% decrease in overall PGM production, primarily due to lower output from its Amandelbult Dishaba Mine and Mogalakwena's lower grades and milling volumes. The sale of its 50% interest in Kroondal also impacted the group's production figures, though this was slightly offset by the increased production from Unki.
Craig Miller, Group CEO, emphasized a strategic shift towards producing higher-grade concentrate to maintain PGM content while reducing concentrate throughput volume. This strategy aims to cut operating costs and capital expenditure by putting the Mortimer Smelter on care and maintenance.
The company is also proposing a restructuring process that could affect 3,700 jobs across its South African operations, with the final impact to be determined after a consultation period with trade unions and employees, facilitated by the Commission for Conciliation, Mediation and Arbitration (CCMA).
