Anglo American Platinum (Amplats), a platinum group metals miner, adjusted its production expectation for next year to reflect new operating conditions amid a high inflation environment.
Amplats metal-in-concentrate (M&C) production guidance has been revised downward to between 3.6 million and 4m ounces, previously it was between 4.1m and 4.5m ounces.
The production guidance for 2024 has also been revised downward to the same levels as 2023.
The group said it expected M&C production in 2025 to be between 3.5m and 3.9m ounces and refined platinum group metals (PGM) production of between 3.3m and 3.7m ounces.
Amplats said it expected to end the year with M&C production of around 4m PGM ounces, within guidance.
Amplats CEO Natascha Viljoen said: “Despite navigating through several headwinds, we maintained a stable operating environment and expect to close the financial year within guidance.
"We continue to experience high levels of inflationary cost pressures, leading to a unit cost of around R15 300 per PGM ounce and will continue with our strong focus on cost mitigation and containment in 2023".
In the year, the group said it maintained a stable operating performance navigating multiple headwinds including Eskom load-shedding, rainfall and lower grades at Mogalakwena to deliver its M&C production.
"Mototolo and Unki are expected to deliver strong production following the successful completion of the debottlenecking projects in 2021," it said.
Amplats said as it continued its asset integrity and reliability programme, and it would rebuild Polokwane smelter starting in quarter three this year.
"Despite the setbacks with sub-standard materials being delivered for the smelter, and supply chain constraints, we have resolved all the issues, we have now completed the smelter rebuild, and the reheat of the smelter will start on 10 December, with the first matte tap expected in early January," Viljoen said.
She said due to Eskom load-shedding and the delay in the Polokwane smelter rebuild, the total built-up work-in-progress inventory at the end of the year would be 350000 PGM ounces.
"As a result, refined production should be 3.8 million PGM ounces, again within guidance. The build-up in work-in-progress inventory should be largely refined in 2023, with 100 000 PGM ounces to be refined in 2024," Viljoen said.
According to the group, the Kroondal Joint Operation, which is 50% own-mined material and 50% purchase-of-concentrate material is coming towards the end of its life-of-mine, and the Siyanda purchase-of-concentrate agreement, both switch to tolling agreements in 2024 and 2025, respectively.
"This will result in lower M&C production volumes, reflecting the change in commercial terms," it said.
Amplats said significant work has taken place on the options for a third concentrator, although its immediate focus was to continue to improve the operating performance at Mogalakwena so that it delivers sustainable production.
"The construction of the concentrator, subject to approval, is likely to commence in 18-24 months. The time between now and then will be used to further improve capital investment efficiencies and therefore returns on the asset.
"This also allows for time to address current supply chain disruptions, availability of construction resources, and the impact of a high inflation environment," Amplats said.
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