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Lower third party POC production and inclement weather impact Amplats production

Lower third party POC (purchase of concentrate) production and inclement weather have been the main reasons for Anglo American Platinum’s (Amplats) total PGM production decreasing by 17% against the prior period to 696,300 ounces for the first quarter ending 31 March.

This is owing to Kroondal mine volumes (~61,000 ounces) having transitioned to a 4E tolling arrangement from September 2024, as well as lower production from Amandelbult mine (~41,000 ounces). Furthermore, on a like-for-like basis to account for the Kroondal transition and Amandelbult flooding impact, total PGM production decreased by 5% against the prior period.

PGM production at Amandelbult declined by 32% to 85,800 ounces, owing to the impact of heavy rains which caused widespread flooding in the region. The significant rainfall and overflow of nearby river systems also caused water ingress at Tumela mine, which overwhelmed pumping capacity, flooding certain parts of the underground and main pump station.

However Mogalakwena mine’s PGM production at 227,000 ounces increased by 3%, reflecting higher throughput at the concentrators and marginally higher grades. The 4E built-up head grade at 2.48g/t was in line with expectations for the first quarter and the full-year blended grade remains on track to meet the 2.7–2.9g/t guidance.

Nevertheless Mogalakwena’s production was 21% lower compared to the fourth quarter of 2024 due to heavy rainfall, temporarily lower grades in the mining sequence and blending of lower-grade stockpiles. This was however partially offset by efficiencies from loading and hauling and the activation of the north waste rock dump which allows for shorter travelling distances for the dumping of waste rock.

Mototolo mine’s production also increased by 7% to 66,200 ounces, reflecting benefits of a new seven-day mining shift cycle implemented in the second quarter of 2024. The development of the Der Brochen project, which will replace infrastructure closures at Lebowa mine is progressing as planned, with production anticipated to ramp up in late 2025.

Unki mine’s production decreased by 15% to 53,600 PGM ounces mainly as a result of the expected lower grades in the current mining area, as well as a combination of slightly lower recoveries and the impact of a five-day planned plant maintenance shutdown which impacted the milled volumes.

Modikwa mine’s PGM production (50% own-mined) decreased by 11% to 29,400 ounces primarily due to lower concentrator plant recovery following the introduction of open pit material during the quarter. The open pit material, planned to be fully ramped up from the second quarter of 2025, was introduced to replace the volumes from the high-cost South 1 shaft infrastructure which is anticipated to be closed in the first half of the year.

ALSO READ: Anglo’s Mogalakwena Mine achieves IRMA 50 certification

Amplats CEO Craig Miller comments on the results: “As a result of the widespread flooding in the northern part of South Africa in February, which impacted Tumela mine at Amandelbult, quarterly own-mined M&C production decreased by 8% to 462,000 ounces. Progress has been made to recover from the flooding event, with Dishaba mine, Tumela Upper and surface operations back in production. We anticipate production at Tumela Lower to commence around mid-year and we expect to remain within our production and cost guidance.”

Miller also expressed his optimism about the the next phase of the company’s journey. “We are a leading PGM producer, responsibly and safely extracting precious metals and associated by-products from our exceptional mineral resource endowment. We have the team, capabilities and scale to drive operational and functional excellence with plans to optimise the performance of our assets in line with our portfolio strategy, including the objective of keeping all our assets in the first half of the cost curve.”