OVERVIEW

• Commitment to elimination of fatalities – zero fatalities at own managed operations in Q2 2019
• Total PGM production (expressed as 5E+Au metal in concentrate) increased by 1% to 1,118,700 ounces, (excluding Sibanye-Stillwater Rustenburg mine 4E material)
• Own managed mines PGM production decreased by 4% to 633,600 ounces due to lower production from Mogalakwena and Mototolo
• Joint venture PGM production (mined and purchase of concentrate, excluding Mototolo) decreased by 4% to 228,200 ounces due to lower volume from Modikwa, despite a strong performance from Kroondal
• Purchase of PGM concentrate from third parties increased by 22% to 256,900 ounces due to higher volumes received from BRPM and Siyanda (excluding Sibanye-Stillwater Rustenburg mine 4E material that transitioned to a tolling arrangement)
• Refined PGM production including tolling increased by 23% to 1,426,900 ounces due to improved processing operational performance and stability at processing assets
• PGM sales volumes of 1,275,100 ounces were in line with refined production, but down by 8% year-on-year due to 154,400 4E ounces returned through toll arrangements
• 2019 Production guidance (metal in concentrate) remains unchanged at 4.2 – 4.5 million PGM ounces

REVIEW OF THE QUARTER

SAFETY

Anglo American Platinum remains committed to the elimination of fatalities and reports zero fatalities in the period. The Total Recordable Case Frequency Rate (“TRCFR”) per million hours at managed operations for the quarter reduced by 9% to 2.63 compared to 2.90 in the prior period.

PGM PRODUCTION

Production has been adjusted in the comparative periods to enable a fair comparison between each period as follows:

• exclude Sibanye-Stillwater 4E ounces from purchase of concentrate from third parties
• include Mototolo production as own mined production on a 100% basis
• include Union production as purchase of concentrate from third parties
• include Bafokeng Rasimone Platinum Mine (BRPM) production as purchase of concentrate from third parties

Total PGM production increased by 1% to 1,118,700 ounces (platinum production increased by 3% to 520,300 ounces and palladium production decreased by 1% to 347,100 ounces), excluding Sibanye-Stillwater Rustenburg 4E material which transitioned to a tolling arrangement from 1 January 2019. Despite the increase in production, the quarter was impacted by unprotected industrial action at Mototolo, maintenance at Mogalakwena North Concentrator and production challenges at Modikwa and Mototolo.

PGM production from own mines

Total PGM production from own managed mines decreased 4% to 633,600 ounces (platinum production decreased by 5% to 290,500 ounces and palladium production decreased 4% to 228,100 ounces), due to lower production from Mogalakwena and Mototolo, partly offset by increased production from Unki and Amandelbult.

Mogalakwena PGM production decreased 4% to 302,500 ounces (platinum and palladium production decreased by 4% to 127,900 ounces 139,500 ounces respectively), due to low equipment availability, and a decrease in concentrator throughput and recoveries due to a minor shut down for maintenance on the secondary mill at North concentrator. In addition, the mine increased its waste tonnes mined in line with the mine plan (started a new mining cut and push-back) which was partially offset by a drawdown in ore stockpiles.

Amandelbult PGM production increased 1% to 229,000 ounces (platinum production in line with the prior period at 116,500 ounces while palladium increased by 3% to 53,700 ounces), due to improvement in the Dishaba ore-reserve build-up as well as increased operational efficiencies. Production performance in Q2 2019 improved 19% over Q1 2019.

Unki achieved a record production performance in the quarter, increasing PGM production 12% to 52,500 ounces (platinum production increased by 11% to 23,100 ounces and palladium production increased by 14% to 20,900 ounces). The increases were due to improved underground mining efficiencies, improved concentrator throughput, higher mill run-time and recoveries.

The acquisition of the remaining 50% of Mototolo was concluded on 1 November 2018 from which date 100% of its production became own mine production.

On a 100% basis, Mototolo PGM production decreased by 32% to 49,600 ounces (platinum production decreased by 32% to 23,000 ounces and palladium by 33% to 14,000 ounces). The lower production was largely due to three weeks of unprotected industrial action (c.9,000 PGM ounces) and lower built-up head grade and volume as the mine transitions through multiple difficult geological features. In addition, the prior period included once-off PGM ounces that were toll treated at Bokoni.

PGM production from joint ventures (own mined production and purchase of concentrate)

Joint venture PGM production, excluding Mototolo, decreased by 4% to 228,200 ounces (platinum production decreased by 1% to 104,400 ounces and palladium production decreased by 6% to 64,800 ounces).

Modikwa PGM production decreased by 23% due to safety stoppages related to the fatality at the end of Q1 2019 and increased maintenance on the mechanised machinery fleet. In addition, the prior period benefitted from Mototolo ore purchases which increased Q2 2018 production by c.5,000 PGM ounces. PGM production at Kroondal increased by 6% due to increased concentrator throughput, higher mill run-time and recoveries.

PGM production from joint ventures is 50% own-mine production and 50% purchase of concentrate.

Purchases of PGM concentrate from third parties

Purchase of PGM concentrate from third parties increased by 22% to 256,900 ounces due increased volume from BRPM and Siyanda Resources.

Refined production and sales volumes

Own refined PGM production, excluding tolling, increased by 10% to 1,273,400 ounces (refined platinum production increased by 3% to 591,000 ounces and refined palladium production increased by 17% to 428,400 ounces). The increase was largely driven by improved operational performance and stability across the processing assets, particularly at the Anglo Converter Plant (ACP), as well as lower refined production in the prior period which was impacted by the Mortimer smelter rebuild.

Refined PGM production including tolling of 154,400 4E ounces treated in the quarter under tolling arrangements, increased by 23% to 1,426,900 PGM ounces.

PGM sales volumes of 1,275,100 ounces were in line with refined production, but down by 8% year-on-year due to 154,400 4E ounces returned through toll arrangements and not sold by Anglo American Platinum. Platinum sales volumes decreased by 6% to 595,200 ounces and palladium sales volumes increased by 17% to 475,900 ounces due to the change in the concentrate mix processed in each period.

2019 production guidance maintained

PGM production outlook for 2019 is maintained at between 4.2 - 4.5 million ounces, including platinum production of between 2.0 - 2.1 million ounces and palladium production guidance of between 1.3 – 1.4 million ounces. As previously communicated, production guidance is down on 2018 due to the transition of Sibanye-Stillwater Rustenburg mine 4E material to a tolling arrangement.

Download the Anglo American Platinum Limited PGM Production Report for the second quarter ended 30 June 2019