PGMs 2Q production decreased by 2%: Anglo

 

PGMs 2Q production decreased by 2%: Anglo

Duncan Wanblad, Chief Executive of Anglo American, said: “We have delivered a strong second quarter performance overall as we continue to embed operational excellence across the asset base. Minas-Rio achieved record second quarter production, while our copper operations in Chile and Peru both performed well against our plans.

Total PGM production decreased by 2%, reflecting expected lower volumes from Kroondal (which is reported as third-party purchase of concentrate from November 2023) and lower production at Mototolo, Mogalakwena and Unki. This was partially offset by higher production from Amandelbult.

Own mined production decreased by 11% to 547,200 ounces, primarily due to the disposal of Kroondal in Q4 2023. Excluding Kroondal, production decreased by 3% due to lower production from Mototolo, Mogalakwena and Unki, partially offset by higher production from Amandelbult.

Mogalakwena’s production decreased by 4% to 232,600 ounces, due to the planned blending of low grade ore stockpiles as the new bench cut sequence progressed during the quarter, with higher waste tonnes extracted in the short term.

Production at Mototolo decreased by 14% to 66,300 ounces, due to difficult ground conditions as a section of the mine reaches its end of life, as well as the impact from a shortage of specialised skills. The new 7-day mining shift cycle introduced at the end of the first quarter aims to enhance operational efficiency, improve equipment utilisation and ultimately increase production output, with stabilisation expected in the second half of 2024.

Unki produced 54,700 ounces, 7% lower, due to temporarily mining through a planned lower grade section.

This was partly offset by production at Amandelbult, which increased by 7% to 157,600 ounces, driven by operational efficiencies which allowed for higher grades and throughput from underground material, partially offset by metallurgical challenges which contributed to issues at the concentrator.

Purchase of concentrate increased by 13% to 373,800 ounces, reflecting the transition of Kroondal to a 100% third-party purchase of concentrate arrangement. Normalising the comparative period to include 100% of Kroondal, results in a 2% decrease reflecting lower third-party receipts.

On 1 July 2024, Mogalakwena North Concentrator primary mill broke down with repairs and mitigation plans under way and expected to be largely completed by end of July 2024. It is expected that this may have a c.5% impact on Mogalakwena metal in concentrate production in 2024.