Amplats loses 521 600 oz of output amid Covid shutdown

16th July 2020

By: Marleny Arnoldi

Deputy Editor Online

     

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JSE-listed Anglo American Platinum (Amplats) lost 521 600 oz of platinum group metal (PGM) production in the quarter ended June 30 as a result of Covid-19 restrictions.

The company reported a 41% year-on-year decrease in platinum, palladium, rhodium, ruthenium and iridium (5E) and gold production for the quarter, at 665 100 oz.

Production from own managed mines decreased by 40% year-on-year to 379 400 oz.

However, Amplats says the impact of Covid-19 shutdowns was partially mitigated as openpit and mechanised operations were able to safely ramp-up production faster once restrictions eased.

The company was able to produce at 98% of its production capacity by the end of June.

Meanwhile, the closure of the Anglo Converter Plant (ACP) B unit led to tolling decreasing by 67% year-on-year, to 407 000 oz, in the quarter under review. The unit was off line for repairs for 54 days and the company had to declare force majeure on some of its contracts with fellow miners.

An incident at the ACP on February 10 led to the closure of both the ACP A and B units from March 6, with ACP B having returned to steady state on May 12.

Following a subsequent closure during the first two weeks of June, the ACP B unit has since ramped up and is operating at full capacity.

The rebuild of ACP A is ahead of schedule, with completion expected by the end of the fourth quarter.

PGM sales volumes in the quarter under review decreased by 55% year-on-year to 548 000 oz, owing to lower refined production, partially supplemented by a drawdown in refined inventory.

Amplats reports that its trading sales volumes increased by 80% year-on-year in the quarter under review, to 210 500 oz, to ensure supply to customers.

The company maintains its full-year production and refined production guidance at between 3.1-million and 3.6-million ounces of PGMs, including platinum production of between 1.45-million and 1.65-million ounces and palladium production of between 1-million and 1.15-million ounces.

Amplats acknowledges that headwinds still exist in the second half of the year, including completing the rebuild of the ACP A unit, load-shedding and the further impacts of Covid-19, but has assured stakeholders that its focus is steadfastly on the safety of employees and the integrity of its assets.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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