Anglo American Platinum (Amplats) has again revised its full-year platinum group metal (PGM) production guidance upwards and now expects to produce between 5.1-million and 5.2-million ounces on the back of robust third-quarter production.
The company initially expected to produce between 4.75-million and 5-million ounces of PGMs for the full-year but, in July, raised that forecast to between 4.85-million and 5.1-million ounces of PGMs.
PGM production increased by 3% to 1.34-million ounces in the third quarter, while platinum output was up 4% to 649 000 oz and palladium production up 1% to 410 800 oz.
Amplats on Tuesday attributed the higher production to improved operational performances across the majority of the portfolio, despite the removal of unprofitable ounces from Bokoni, which was placed on care and maintenance in the third quarter of 2017.
During the quarter under review, strong performances from Unki, which increased its output by 14%, and Amandelbult, where production was up 5%, resulted in the company’s mined PGMs production increasing by 2% to 567 600 oz.
Amplats joint venture production also increased by 12% to 314 400 oz, owing to solid performances at Mototolo and Kroondal.
The increases were offset by a 2% decrease in Mogalakwena’s production to 271 800 oz, as a result of planned maintenance that resulted in lower concentrator throughput and lower recoveries.
Refined PGMs production decreased by 21% to about one-million ounces as a result of a planned partial furnace rebuild at the Polokwane smelter during the quarter, which led to an increase in work-in-progress inventory. This, subsequently, resulted in a 16% decrease in sales volumes to around 1.2-million ounces.
The company notes that, as a result of scheduled smelter rebuilds and maintenance at both Mortimer smelter and Polokwane smelter, there has been an increase in work-in-progress inventory, of around 460 000 oz, including 270 000 oz of platinum and 160 000 oz of palladium at the end of the third quarter.
The built-up inventory will not be refined in full by year-end and, therefore, refined production guidance of 4.85-million ounces to 5.1-million ounces is lower than produced production.
Amplats’ sales volume guidance has also been revised upwards to between 5.2-million and 5.3-million ounces, as a drawdown of refined inventory has supplemented sales volumes.
BOARD APPOINTMENT
Meanwhile, Amplats on Tuesday also reported that Norman Mbazima had been appointed nonexecutive director, following the resignation of Andile Sangqu from the board.