| Thu 23 Oct 2008, 8:07 | | AMS - Anglo Platinum Quarterly Review And Production Report For The Period |
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AMS AMSP
ANANP
AMS - Anglo Platinum Quarterly Review And Production Report For The Period
1 July 2008 To 30 September 2008
ISSUER LONG NAME : ANGLO PLATINUM LIMITED
REGISTRATION NO. : 1946/022452/06
INSTRUMENT ALPHA CODE/TICKER SYMBOL : AMS; AMSP
ISIN : ZAE000013181; ZAE000054474
ANGLO PLATINUM QUARTERLY REVIEW AND PRODUCTION REPORT
FOR THE PERIOD 1 JULY 2008 TO 30 SEPTEMBER 2008
HIGHLIGHTS
Highlights for the quarter under review include:
Mining output 9% higher than in the third quarter of 2007
Refined platinum production for 2008 remains on target at 2.4 million ounces
Re-lining of Waterval Number 2 Furnace and Slag Cleaning Furnace completed
REVIEW OF THE QUARTER
Anglo Platinum remains committed to its approach of creating a culture in
which safety is paramount and continued implementing the Enhanced Safety
Improvement Plan with the objective of achieving `zero harm`.
Equivalent refined platinum production (equivalent ounces are mined ounces
expressed as refined ounces) from the mines managed by Anglo Platinum and its
joint venture partners for the third quarter of 2008 was 685 000 ounces, an
increase of 9% when compared to the third quarter of 2007 and an increase of
12% compared to the second quarter of 2008. Refined platinum production in the
third quarter of 2008 was 11% lower than the third quarter of 2007 due to the
planned downtime at Waterval of Number 2 Furnace; the Slag Cleaning Furnace;
and the ACP plant, including the acid plant, for maintenance. As a result,
pipeline stocks increased by a further 141 000 platinum ounces to a total of
314 000 platinum ounces.
Refined rhodium production was lower than in the third quarter of 2007 for the
same reasons that reduced platinum output. The slag run-out at the Polokwane
smelter in the second quarter of 2008 reduced rhodium production in that
quarter, accounting for the 27% increase in rhodium production in the third
quarter of 2008.
Factors that contributed to increased volumes in quarter three include:
New production at Mogalakwena North pit as the 600 000 tons per month
concentrator reached full capacity
An increase in concentrate purchased
Fewer labour disruptions than in the third quarter of 2007
Factors that constrained production in quarter three were:
Safety related work stoppages
Skills availability and continued lower efficiency associated with high staff
turnover in 2007 and 2008
Face availability remaining below target levels although improving
While operational challenges continue, the major factors that negatively
affected production in the first half of 2008 have largely been resolved and
mining output is expected to continue at the improved rate experienced in the
third quarter.
However, as a result of the continued build-up of concentrate stocks due to
the Waterval outages, smelting and refining of planned volumes in the fourth
quarter require 100% availability of plant and equipment.
During the quarter and in line with Anglo Platinum`s confidence in continued
robust long-term demand for platinum, the Anglo Platinum and Royal Bafokeng
Holdings Boards approved the Styldrift Merensky Project. This expansion
project, at a capital cost of R10.3 billion, in July 2009 money terms, will
process 230 000 tons of Merensky reef per month via a new twin shaft system
and a new concentrator. At steady state production in 2015, this project will
increase BRPM`s production to 450 000 tons per month and 400 000 ounces of
refined platinum per annum.
Given current metal price levels and uncertainty in global markets, the
costing and scheduling of all capital projects is currently under review and
management is evaluating a number of initiatives to further reduce operating
costs and corporate overhead costs, optimise procurement savings, and improve
operational productivity.
Anglo Platinum expects to announce results for the full year to 31 December
2008 on 9 February 2009.
Johannesburg, South Africa
23 October 2008
For further information please contact:
Trevor Raymond
+27(0)11 373 6462
+27(0)82 654 8467
Date: 23/10/2008 08:07:10 Produced by the JSE SENS Department.
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