ANGLO American Platinum recorded an overall 7% increase in platinum production to 381 000 ounces in the first quarter ended March 31, 2016 due to an increase in output at its three mines including Zimbabwean based Unki.
BY BUSINESS REPORTER
The increase was from a previous of 357 000 ounces and was due to higher production from Unki Amandelbult and Mogalakwena mines.
Speaking at the recently held annual general meeting of Anglo American Platinum Limited, independent non-executive chairman Mohamed Valli Moosa (pictured) said the full basket of metal prices the mining group produced fell in 2015.
“For the full basket of metals we produce, there was a 30% decline in prices in 2015, from $2 215 to $1 555, with the drop being more acute in the second half when the basket price fell 19%. Platinum and palladium prices specifically fell 28% and 30% respectively in 2015, with a 19% decline in the platinum price in the second half, down from $1 212 at the beginning of the year to $876 by year end,” Valli Moosa said.
“While palladium prices declined 14% on average from $803 in 2014 to $717 in 2015, the depreciation of the rand during the year did not offset the decline in commodity prices, and the underlying factors behind the decline have continued into 2016.”
Production from Unki increased by 14% to 19 000 ounces due to improved running time of the concentrators and increased head grade and was the second highest after Amadelbult, which had an increase of 33% to 111 000, while Mogalakwena increased 7% to 109 000.
The increase recorded in Amandelbult output was attributed to improved mining efficiencies and increased concentrator recoveries, while Mogalakwena also experienced higher grade and improved concentrators.
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Total platinum production increased by 4% to 567 000 ounces.
“In terms of the outlook for 2016, the uncertain global economic environment, challenging global market conditions and a depressed pricing environment are expected to persist in 2016. As such, we will continue to evaluate, and take the necessary steps, to ensure the company’s operations remain cash positive and the integrity of the balance sheet is maintained through this difficult period,” Valli Moosa said.
He said a full year guidance of 2,3 million to 2,4 million ounces of produced production remains unchanged.
Refined platinum production decreased by 52% to 261 000 ounces due to a planned stock take at the PMR and a Section 54 Stoppage which closed the Precious Metals Refinery (PMR) for 12 days, and materially impacted production for a subsequent 37 days.
The PMR has since been brought back to steady state operation and it is anticipated that these shortfalls in refined production in first quarter of 2016 will be caught up in the second and third quarters of the year.
This is expected to have a short term impact on the financial position of the company at the end of the first half in 2016.
