OVERVIEW

• Tragically two fatalities in Q2 2017

• Total platinum production (expressed as metal in concentrate) increased 5% to 617,100 ounces

• Strong performances from own mine operations with Mogalakwena up 15%, Amandelbult up 4% and Unki up 10%

• Total purchase of concentrate (joint venture, associates and third party) increased by 89% due to the inclusion of material from Sibanye (formally Rustenburg)

• Refined platinum production decreased by 29% to 528,700 ounces. There has been a build-up of work in progress inventory as a result of the Waterval Furnace Number 1 run-out in Q4 2016, and the planned rebuild of Waterval Number 2 Furnace which delayed 65,000 ounces of refined production into H2 2017

• In addition there was a high pressure water leak at the Convertor Plant (ACP) which resulted in a deferment of c.90,000 ounces of refined production from Q2 2017 into H2 2017

• Sales volumes of 600,500 ounces were down 26% as Q2 2016 had additional sales of metal reflecting the recovery at the Precious Metals Refinery (PMR) after a planned stock take and safety stoppage in Q1 2016.

REVIEW OF THE QUARTER

OPERATIONS

Anglo American Platinum tragically had two fatalities in Q2 2017. Mr Nkoliseko Jikumlambo was seriously injured in a fall of ground incident at Amandelbult’s Tumela mine on 8 April 2017 and sadly passed away on 21 April in hospital. Mr Kagiso Ramokgatla was fatally injured in a loader incident on 7 June 2017 at Amandelbult’s Dishaba mine. Deepest condolences go to their families, friends and colleagues. Comprehensive independent investigations into these fatal incidents are under way to understand the circumstances and learn from them in order to create a safer work environment for all, and the Company remains committed to zero harm.

The Lost Time Injury Frequency Rate (“LTIFR”) per 200,000 hours worked at managed operations has seen a significant improvement, reducing 13% to 0.63. (Q2 2016: 0.73).

Total platinum production (expressed as metal in concentrate) increased 5% to 617,100 ounces with strong performances from Mogalakwena, Amandelbult and Unki. The increase in production is despite the Twickenham project being placed on care and maintenance in the second half of 2016, reducing unprofitable platinum production by 1,900 ounces.

With the sale of Rustenburg in November 2016, production is now treated as third party purchase of concentrate from Sibanye, resulting in own mine production decreasing by 22%.

Mogalakwena production increased by 15% to 113,900 ounces due to a strong increase in built-up head grade of 7% resulting from mining in a particular high grade area in line with the mine plan, and a 9% increase in concentrator throughput due to North Concentrator Plant optimisations which increased the runtime.

Amandelbult production increased by 4% to 110,500 ounces due to improved plant recoveries and increased throughputs from underground sources.

Unki production was up 10% to 19,500 ounces, as continued efforts in efficient mining height control have reduced mining waste, leading to increased grade and higher production.

Union production decreased by 3% to 39,800 ounces due to a reduction in mining of Merensky ore which reduced the overall grade. The sale of Union to Siyanda Resources was announced on 15 February 2017 and is expected to complete by year-end.

Joint venture and associates production (mined and purchased) was down 1% to 201,100 ounces (64,300 ounces relating to own mined share of joint ventures and 136,800 ounces purchase of concentrate from joint ventures and associates). Production from BRPM was up 10% to 52,900 ounces as the Styldrift project ramps up in line with expectations. Modikwa was also up 2% to 32,000 ounces as a result of stoping efficiencies and improvements in productivity. Production from Bokoni, Mototolo and Kroondal offset these increases, with Bokoni down 10% to 19,500 as a result of the closure of the opencast operations and safety related stoppages; Mototolo down 7% to 29,500 as a result of lower grade and Kroondal down 5% to 67,100 primarily due to lower grade and a plant shutdown which impacted production for 7 days.

Third party purchase of concentrate increased by 126,400 ounces to 132,300 ounces largely due to the inclusion of material from Sibanye (formally Rustenburg), which has been reported as third party purchase of concentrate since November 2016. Other third party purchases, largely from Maseve increased to 4,300 ounces (Q2 2016: 3,100 ounces) as the mine ramps up.

Refined platinum production decreased by 29% to 528,700 ounces primarily due to the planned Waterval Number 2 Furnace rebuild and a high pressure water leak at the Converter Plant.

Following the Waterval smelter run-out in Q3 2016, the Number 1 furnace was successfully rebuilt in Q4 2016 and is running at steady-state. The Number 2 furnace underwent planned maintenance and has successfully ramped up to steady-state. The backlog in processing pipeline material of 65,000 platinum ounces following the run-out in 2016 is expected to be made up during H2 2017.

A high-pressure water leak at the Converter Plant impacted one converter plant (Phase A) of the operation on 4 June 2017. The second converter plant (Phase B) was heated up and returned to steady state production 10 days later. The time required to reheat Phase B created a backlog of material, deferring 90,000 ounces of refined production from Q2 2017 into H2 2017. The result of the planned rebuild of Waterval Number 2 furnace and ACP Phase A event has impacted refined production for the period, and therefore lead to lower sales volumes.

Sales volumes for the quarter of 600,500 ounces were down 26% due to the decrease in refined platinum production, however was more than refined production of 528,700 ounces, due to reducing refined inventory to normalised levels, which had been built in Q2 2016 during the PMR stoppage.

GUIDANCE

Full year production guidance remains unchanged at 2.35 – 2.40 million platinum ounces.

Download the Anglo American Platinum Limited Production Report for the second quarter ended 30 June 2017