[miningmx.com] — ANGLO American Platinum (Amplats) has made some
small gains during the first quarter of 2012, lifting output and productivity levels after
a grim performance the previous year.
Posting an operational review for the three months to end-March on Thursday,
Amplats said it mined the equivalent of 593,000 ounces (oz) during the period, an
improvement of 5% compared to the first quarter of 2011. Production at its own
mines – exclusive of joint ventures like Modikwa and BRPM – were up 12% year-on-
year.
The miner was particularly hit hard by safety stoppages in 2011, a situation which
Amplats said has improved.
“We experienced 13 safety stoppages at our own mining operations during the first
quarter of 2012, compared with 21 in the first quarter of 2011 and 32 in the fourth
quarter,’ read a company statement, adding that recent stoppages were more
localised and addressed within a shorter period of time.
Production also benefitted from an increase in square meters output, better grade and
higher concentrator recoveries. These were offset by an 11% decrease in milled
surface sources.
While refined production decreased by a hefty 24% year-on-year, Amplats said it
would catch up with lost output by end-June following planned annual maintenance at
the Rustenburg converting plant.
Amplats is still smarting from a poor 2011, prompting chairperson Cynthia Carroll to
announce it would be making “tough decisions where assets are not delivering
acceptable returns’ as part of a review of the business.
Not only did Amplats announce a 29% drop in headline earnings last year, but it also
slashed its final dividend and announced a cut-back in capital expenditure.
In its latest report, Amplats said productivity at its own mines had improved by 10%,
and 4% when the joint ventures were included. The company is also sticking to its
cash-unit-costs target of between R14,000 and R14,500 per ounce; implying cost
growth of between 3% and 7% on 2011’s figures.
The costs target is based on its previously stated production guidance of 2.6 million
ounces, which the company has left unchanged.
MARKET OUTLOOK
Amplats said it expected the platinum market to be in balance in 2012.
“Depressed automotive demand growth in Europe continues in line with economic
concerns, however primary supply side challenges were heightened during the
quarter,’ he said.
“Increased investor participation led the recovery in the platinum price, albeit with
increased volatility.’
On Thursday the company was trading at R501 per share; an annual low.
