Anglo American projects sustained growth in next three years

Author Name
Respect Gwenzi
Markets 4 months ago

Anglo American Platinum (Amplats), the owners of Unki Platinum Mine in Zimbabwe has issued operational outlook and guidance for the current and next three financial years, including in relation to capital expenditure and production volumes, and a progress update on the Group’s growth projects.

The Group upgraded refined production guidance for 2020 to between 2.6 – 2.7 million PGM ounces riding on the early completion of the rebuilding of the ACP Phase Unit and the easing of Covid-19 induced lockdown restrictions. Sales volumes have also been upgraded to c.2.8 million PGM ounces as minor metal refined inventories are drawn down.

The Group is expecting a run of sustained growth performance in the next three years driven in part by the planned maintenance on other processing assets in 2021.

Refined production is expected to grow to between 4.6-5.0 million PGM ounces in 2021 and a further climb to between 4.7 – 5.1 million PGM ounces in the following year. Production guidance is expected to fall in 2023 to between 4.2 – 4.6 million PGM ounces.

Mark Cutifani, Chief Executive of Anglo American, said: ‘This year has brought numerous challenges and I am immensely proud of how the 90,000 people of Anglo American have responded to every aspect of the pandemic. Our agility to protect our people and communities while sustaining our operations has enabled us to continue to improve the quality, resilience and performance of our business in 2020. At the same time, we have continued to enhance our long term business prospects.

‘We expect to deliver sector-leading volume growth of 20-25% over the next three to five years that includes first copper production from Quellaveco in 2022. Together with our P101 and technology improvement initiatives, we are on track to deliver our targeted $3-4 billion run-rate of incremental annual improvement by the end of 2022.

‘Looking further out, our diversified portfolio of world-class competitive operations, development projects and undeveloped resources provide us with much further high quality and high returning growth options. With the bulk of those options in copper, PGMs, and now also crop nutrients, we are increasingly positioned to supply those metals and minerals that enable a cleaner, greener, more sustainable world.’

The Group maintained unit cost guidance for 2020 unchanged at R11,800 – 12,200 per ounce. Unit cost guidance for 2021 will be R11,000 – 11,500 per PGM ounce reflecting the recovery in production as operations return to normalised levels of production, partially offset by inflationary increases.

Listed on the Johannesburg Securities Exchange, Amplats is a leading primary producer of platinum group metals. Its mining, smelting and refining operations are based in South Africa as well as its two joint venture operations.

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