| Thu 22 Oct 2009, 8:00 | | AMS - Anglo Platinum Limited - Anglo Platinum Quarterly Review and Production |
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AMS
ANANP
AMS - Anglo Platinum Limited - Anglo Platinum Quarterly Review and Production
Report for the Period 1 July 2009 to 30 September 2009
ISSUER LONG NAME : ANGLO PLATINUM LIMITED
INSTRUMENT ALPHA CODE/TICKER SYMBOL: AMS
ISIN : ZAE000013181
ANGLO PLATINUM QUARTERLY REVIEW AND PRODUCTION REPORT FOR THE PERIOD 1 JULY 2009
TO 30 SEPTEMBER 2009
REVIEW OF THE QUARTER
SAFETY
Anglo Platinum continues to work towards achieving zero harm and is addressing
its overall safety performance as a top priority.
During the third quarter of 2009, Anglo Platinum`s lost time injury frequency
rate continued to improve, from 1.44 per 200,000 hours worked reported at the
end of the second quarter, to 1.39 at the end of the third quarter. Notable
safety achievements are being shared across operations to inspire Company-wide
continuous improvements.
Regrettably, three employees were fatally injured at Anglo Platinum operations
during the third quarter, bringing the year-to-date total to 13 fatalities. We
extend our condolences to the families, friends and colleagues of the deceased.
OPERATIONS
During August 2009, it was decided to place two high-cost shafts on care and
maintenance, namely Brakspruit at Siphumelele Mine and Boschfontein at Khuseleka
Mine in Rustenburg. The full year impact for 2009 from the closures is forecast
to be 71,000 equivalent refined platinum ounces. The total annualised
production loss from the three shafts placed under care and maintenance during
2009, i.e. including Siphumelele Mine`s Bleskop shaft in the second quarter,
amounts to 140,000 equivalent refined platinum ounces.
Production of equivalent refined platinum ounces from mining and purchase of
concentrate activities attributable to Anglo Platinum was 616,500 ounces in the
third quarter of 2009, a decrease of 2% compared to 630,400 produced in the
second quarter of 2009, primarily due to the shaft care and maintenance
programme and lower ounces from pooling-and-sharing agreements.
The labour reduction initiative, a component of Anglo Platinum`s operational
efficiency improvement programme announced at the beginning of the year, has
continued and 11,715 positions were reduced up to 30 September 2009 against the
original plan for 10,000 in the full year 2009.
Heightened focus on cost management will result in a reduction of 724 positions
at the corporate centre and shared services by year end, as part of a drive to
reduce overhead labour to match projected production levels.
The one-off cost of Anglo Platinum`s labour reduction in 2009 is forecast to be
some R300m.
Despite inflation in electricity prices and wage inflation, Anglo Platinum
continues to target maintaining cash operating costs per equivalent refined
platinum ounce at the same level in 2009 as that achieved in 2008 of R11, 096.
This will be achieved by: replacing high cost production at the Bleskop,
Boschfontein and Brakspruit shafts with lower cost production; removing all
overhead costs not associated with keeping those high-cost shafts on care and
maintenance; employee productivity improvements; improved energy efficiency and
the reduction in labour.
Cash operating costs per equivalent refined ounce in the year to September 30
were R11, 216 per ounce.
In terms of productivity, the average output in the third quarter was 6.28m2 per
employee compared with 5.64mSquared per employee in the third quarter of 2008.
CAPITAL PROJECTS AND BALANCE SHEET
Capital expenditure, excluding capitalised interest, was R2.2 billion for the
quarter and R7.4 billion in the year to end September. Anglo Platinum expects
to incur R9.7 billion of capital expenditure for the year, excluding capitalised
interest.
Anglo Platinum is confident that its committed debt facilities of R32 billion
are adequate to meet its anticipated funding requirements. Year end net debt is
forecast to reach R21 billion. Balance sheet restructuring options are being
considered and Anglo Platinum`s recommendation will be announced along with its
FY09 results on 08 February 2010.
GUIDANCE FOR THE REMAINDER OF 2009
Anglo Platinum expects the platinum market to be balanced in 2009 as firm
investment demand, strong Chinese jewellery demand and restrained South African
production compensate for depressed autocatalyst and industrial demand. As
current platinum demand remains firm and the current strength of the rand
continues to depress PGM producer revenues from their basket of metals sold,
Anglo Platinum expects the platinum price to trade at levels above $1,300 per
ounce for the remainder of the year.
Anglo Platinum remains well positioned to achieve total sales in the full year
2009 of 2.6 million ounces, as stated in July, to meet firm market demand. While
high smelter availability in the second half of 2009 continues to reduce process
pipeline inventory stocks accumulated during the planned extensive smelter
maintenance in the first half of 2009, the 2009 target for refined platinum
production of 2.4 million ounces remains in place.
QUARTERLY PRODUCTION
STATISTICS
Quarter ended % Change
Sept Sept June September September
Q09 Q09
2009 2008 2009 vs Sept vs June
Q08 Q09
Production
statistics
Tonnes mined 000 11,489 33,691 11,440 -65.9% 0.4%
- opencast
**
Tonnes 000 13,305 13,469 13,027 -1.2% 2.1%
broken -
underground
mines
Tonnes 000 10,972 11,881 11,201 -7.7% -2.0%
milled
Merensky / per 1 1:3.6:1.6 1:3.6:1.6 1:3.0:1.2
UG2 / Merensky
Platreef tonne
ratio
4E Built-up g/tonne 3.20 3.37 3.33 -5.0% -3.9%
head grade milled
Mines 3.44 3.67 3.48 -6.3% -1.1%
Western Limb Tailings 1.03 1.09 1.07 -5.5% -3.7%
Retreatment
Equivalent 000 oz
refined
platinum
production *
Mined 483.3 564.5 525.4 -14.4% -8.0%
Purchased 135.2 127.3 112.4 6.2% 20.3%
Sold -2.0 -7.2 -7.4 -72.2% -73.0%
Attributable to Anglo 616.5 684.6 630.4 -9.9% -2.2%
Platinum
Total
refined
production
Platinum 000 oz 629.2 543.2 652.4 15.8% -3.6%
Palladium 000 oz 337.5 321.7 361.5 4.9% -6.6%
Rhodium 000 oz 92.1 75.3 90.1 22.3% 2.2%
Gold 000 oz 25.7 17.7 23.3 45.2% 10.3%
PGMs 000 oz 1,211.2 1,073.0 1,253.8 12.9% -3.4%
Nickel 000 5.5 4.0 5.4 37.5% 1.9%
tonnes
Copper 000 3.0 2.1 2.9 42.9% 3.4%
tonnes
Refined 000 oz 629.2 543.2 652.4 15.8% -3.6%
platinum
production
Platinum 000 oz (12.7) 141.4 (22.0)
pipeline
movement
Employees
(All
operations)
Own enrolled 50,710 54,250 54,737 -6.5% -7.4%
employees
Contractor 15,881 28,666 16,760 -44.6% -5.2%
employees
Total 66,591 82,916 71,497 -19.7% -6.9%
employees
** Includes Mogalakwena, Kroondal and Marikana opencast
operations
* Mines production converted to equivalent refined production using Anglo
Platinum`s standard smelting and refining recoveries
Johannesburg, South Africa
22 October 2009
For further information please contact:
Anna Poulter
Investor Relations
+27 (0) 11 373 6683
apoulter@angloplat.com
Sponsor
Merrill Lynch South Africa (Pty) Limited
Date: 22/10/2009 08:00:14 Produced by the JSE SENS Department.
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