Platinum production declines 5pc
Platinum group metals (PGMs) production at Anglo American Platinum’s local unit, Unki Platinum declined 5 percent to 43 300 ounces in the first quarter to March 31, 2019 compared to the same period last year.
The decline was mainly due to additional 2018 first quarter production mined from ore stockpiles. Normalising for this impact, production at Unki was flat.
Platinum production fell 6 percent to 19 300 ounces while palladium was 4 percent lower to 17 000 ounces.
Quarter on quarter, production at Unki was 13 percent below the 49 000 ounces recorded during the previous quarter (to December 31, 2018).
This came after normalising for the transition of Sibanye-Stillwater material to a tolling arrangement from January 01, 2019 which equated to 115 700 platinum ounces and 58 100 palladium ounces in the 2018 first quarter.
Total production was 3 percent lower compared to the previous quarter, which recorded 1 million ounces of total PMG.
Anglo American also attributed the production decline to once-off benefit of additional ore stockpile which increased production at Mototolo and Unki in the first quarter of 2018, as well as Eskom power disruptions and operational challenges across the portfolio in the quarter.
PGM production from joint ventures is 50 percent own mine production and 50 percent purchase of concentrate.
Total PGM production from own managed mines increased 4 percent to 601 000 ounces due to the inclusion of Mototolo production as own-mine production. Platinum production rose 4 percent to 275 000 ounces while palladium production was flat at 219 700ounces.
At 871 200 ounces refined PGM decreased by 14 percent as platinum production decreased by 18 percent to 411 700 ounces and refined palladium production decreased by 8 percent to 293 600 ounces. The decline was due to maintenance on Waterval Smelter, the Anglo Convertor Plant (ACP) and the Base Metals Refinery during the quarter, the annual planned stocktake and the impact from power disruptions.
Sales volumes decreased by 21 percent to 884 900 ounces largely in-line with refined production.
Management anticipate total group production for 2019 to be between 4,2 million to 4,5 million ounces, including platinum production of between 2 million and 2,1 million ounces and palladium production guidance of between 1,3 million to 1,4 million ounces.