Overview – Q3 2021 performance against prior period Q3 2020

• Safety performance – zero work-related fatalities in Q3 2021 and own-managed operations achieved one-year fatality-free.
• Total PGMs production (expressed as 5E+Au metal-in-concentrate) was in line with prior year Q3 2020 at 1,116,200 ounces, and 6% higher than in Q2 2021.
• Own-managed mines PGMs production of 606,300 ounces decreased by 7%, due to planned maintenance at the Mogalakwena North concentrator, as well as the scheduled integration and ramp-up of the Unki concentrator following completion of the debottlenecking project. These were partly offset by strong production performances at Amandelbult and joint operations, where output rose by 7% and 19% respectively.
• Refined PGMs production (owned production, excluding tolling) increased by 39% to 1,420,400 ounces, due to the continued robust performance of the Anglo Convertor Plant (ACP), providing operational stability.
• PGMs sales volumes (from production, excluding sales from trading) increased by 54% to 1,361,000 ounces due to the increase in refined production. Sales were slightly lower than refined production, to rebuild refined metal inventory which was drawn down following robust demand and sales earlier in the year.
• Full-year guidance for metal-in-concentrate (M&C) PGM production is unchanged at 4.2- 4.4 million ounces and refined PGM production and PGM sales volumes is unchanged at 4.8- 5.0 million ounces.

Natascha Viljoen, CEO of Anglo American Platinum, said:

“We have delivered a strong safety and production performance in the third quarter, with our own-managed operations being fatality-free for the year to 30 September 2021. I am particularly proud of the commitment and dedication our teams across the operations have shown in limiting the impact of Covid-19 on our employees, communities and workplace safety, as illustrated by the significant improvement in our safety record, including in relation to recordable injuries. However, we will not rest until we achieve zero harm across our business.

The completion and successful integration of our debottlenecking project at Unki demonstrates how we are maximising value from our portfolio of high-quality assets, resulting in an annual run-rate increase of 50,000 PGMs ounces. Similarly, the strong performance of the ACP shows the increased resilience we are embedding across our business, with operational stability our major focus.

We are on track to achieve our production and sales targets for the year, while carefully managing the ongoing risks posed by Covid-19 and the potential for Eskom power outages. Our efforts to mitigate these risks include an extensive workplace vaccination programme, with over 22,000 employees and contractors receiving at least one vaccine dose. We have also progressed our plans to build a 100 MW solar plant at Mogalakwena, which will progress us towards our target of achieving carbon neutrality across our business by 2040, thereby further increasing our business resilience and making a real difference for our stakeholders, particularly for those local to our operations.”

Review of the quarter

Safety

Anglo American Platinum reported no work-related fatalities during the quarter at its own-managed operations or at its non-managed joint operations. Own-managed operations achieved one-year fatality-free to 30 September 2021.

The Total Recordable Case Frequency Rate (TRCFR) per million hours at managed operations saw a significant improvement with a 25% reduction to 2.21 per million hours, compared to 2.97 per million hours in the prior period. An increase in the TRCFR in Q2 2021, linked to the consequences and instability of Covid-19, required management intervention to arrest the decline in safety performance. The plans implemented led to the turnaround in safety performance. The challenges are reassessed on an ongoing basis, and plans adjusted to stay effective and create a sustained turnaround in safety performance.

Anglo American Platinum continues its strong efforts to roll-out its Covid-19 vaccination programme across the business. As of 30 September 2021, 59% of the workforce (including contractors) had registered to be vaccinated, with 50% having received their first vaccination and 28% having received their second vaccination.

Metal-in-concentrate (M&C) PGM production

Total PGM production

Total PGM production remained in line with prior period (Q3 2020) at 1,116,200 ounces, with platinum production 1% higher at 519,100 ounces, offset by a 3% decrease in palladium production to 342,600 ounces.

PGM production from own-managed mines

Total PGM production from own-managed mines decreased by 7% to 606,300 ounces (platinum production decreased by 6% to 277,600 ounces, while palladium production decreased by 10% to 215,900 ounces).

Mogalakwena PGM production decreased by 12% to 276,500 ounces (platinum decreased by 11% to 116,900 ounces and palladium production decreased by 13% to 127,700 ounces). This was largely due to planned maintenance at the Mogalakwena North concentrator which led to a 5% reduction in tonnes milled, coupled with an 8% reduction in 4E built-up head grade owing to lower grade material. Despite these headwinds, PGM production year-to-date is 4% ahead of year-to-date 2020 and grade is expected to normalise by year-end.

Amandelbult increased PGM production by 7% to 218,300 ounces (platinum production increased by 7% to 109,500 ounces and palladium production increased by 7%, to 51,600 ounces), largely due to the implementation of improvement plans which led to a 13% increase in tonnes milled and more than offset the decline in grade.

Mototolo PGM production decreased by 4% to 69,000 ounces (platinum production decreased by 3% to 32,200 ounces and palladium decreased by 3% to 20,000 ounces). The decrease was due to the impact of regional community unrest which affected production for five days, resulting in a drawdown of lower-grade ore stockpiles to mitigate the lower output from the mine.

At Unki, PGM production decreased by 29% to 42,500 ounces (platinum production decreased by 30% to 19,000 ounces and palladium production decreased by 30% to 16,600 ounces), owing to the scheduled integration of the concentrator, following the completion of the concentrator debottlenecking project. Mining performance continued to perform well, leading to a build-up of ore tonnes ahead of the concentrator which will be processed in 2022. The debottlenecking project should see monthly tonnes milled increase from c.175 kilotonnes per month to c.210 kilotonnes per month, leading to a ~50,000 PGM ounces increase per annum.

PGM production from joint operations (50% own-mined production and 50% purchase of concentrate)

PGM production from joint operations increased by 19% to 227,400 ounces (platinum production increased by 19% to 102,000 ounces and palladium production increased by 20% to 67,800 ounces). The increase was mainly as a result of the year-on-year recovery from Covid-19.

Kroondal PGM production increased by 14% to 148,000 ounces (platinum and palladium production increased by 16% to 71,000 ounces and 14% to 38,000 ounces respectively).

Modikwa PGM production increased by 30% to 80,000 ounces (platinum and palladium production increased to 31,000 ounces and 30,000 ounces respectively).

Purchases of PGM concentrate from third parties

Purchase of PGM concentrate (POC) from third parties increased by 5% to 282,600 ounces (platinum and palladium POC increased by 3% to 139,500 ounces and to 58,900 ounces respectively). The increase was mainly as a result of the year-on-year recovery from Covid-19.

Refined PGM production

Refined PGM production (from owned production, excluding tolling) increased by 39% to 1,420,400 ounces. Refined platinum production increased by 32% to 663,500 ounces and refined palladium production rose by 30% to 459,800 ounces, with the ratio of metal in the pipeline returning to normalised levels. The strong performance reflected the operational stability in the ACP, following the completion of the rebuild and recommissioning of the Phase A unit in November 2020.

The ACP Phase B rebuild is on schedule for completion in Q4 2021, subject to any further Covid-19 impacts.

Toll refined PGM production increased by 27% to 164,600 PGM ounces.

PGM sales volumes

PGM sales volumes (excluding trading) increased by 54% to 1,361,000 ounces, as a result of higher refined production, partially offset by the rebuild in refined metal inventory. Platinum sales volumes increased by 42% to 637,200 ounces and palladium sales volumes increased by 78% to 465,100 ounces.

PGM sales volumes from trading decreased 53% to 160,200 ounces, as sales from trading activities were abnormally high in Q3 2020 to maintain supply of metal to customers, following the impact of Covid-19 on production and the temporary closure of the ACP.

The Q3 2021 average realised basket price of $2,838 per PGM ounce reflects strong prices compared to Q3 2020, particularly for rhodium, iridium, and ruthenium. The basket price is lower than H1 2021, as demand impacts from lower availability of chip shortages and therefore auto production impacted prices.

2021 full-year guidance

PGM production guidance (metal-in-concentrate) remains unchanged at 4.2‒ 4.4 million PGM ounces.

Refined PGM production (excluding tolling) guidance and PGM sales guidance (excluding trading activities) remains unchanged at 4.8‒ 5.0 million PGM ounces.

Guidance is subject to the consequences of Covid-19 and Eskom power outages in Q4 2021.

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