JOHANNESBURG (miningweekly.com) – The basic earnings and earnings per share of platinum group metals (PGM) mining company Anglo American Platinum for the first six months of this year are anticipated to be between 15% and 25% lower than the half-year earnings of 2023.

Basic earnings are likely to be between R5.8-billion and R6.6-billion and earnings per share between 2 204c per share and 2 508c a share, the Anglo American group company outlined, citing the earnings decreases as being largely the result of a 24% lower rand PGM basket price relative to the first half of last year.

The main contributors to this are the 34% and 49% dollar price declines of palladium and rhodium respectively, the company said.

The decrease in revenue as a result of prices was partially offset by a 9% increase in PGM sales volumes owing to higher refined production and a drawdown of finished goods.

“Furthermore, we’ve delivered cost savings in the first half of the year in line with our cost out programme,” the Johannesburg Stock Exchange-listed company headed by CE Craig Miller, stated in a release to Mining Weekly on Thursday.

Total PGM production for the second quarter ending June 30, expressed as five element (5E) PGM plus gold metal-in-concentrate, decreased by 2% to 921 000 oz.

While quarter-on-quarter own-managed-mines PGM production increased by 9%, it was at a 3%-lower 547 200 oz when compared with the first half of last year and purchase of PGM concentrate decreased by 2% to 373 800 oz.

Refined PGM production increased by 7% to 1 153 500 oz and sales volumes were up by 14% to 1 266 100 oz, supported by higher refined production and a drawdown of finished goods.

Unchanged full-year metal-in-concentrate PGM production and refined production guidance remains at 3.3-million to 3.7-million ounces. Cash operating unit cost guidance is R16 500 per PGM ounce to R17 500 per PGM ounce and all-in sustaining cost of below $1 050 per 3E oz is being targeted.

On the improved second-quarter performance, Miller said: “We continue to make good progress in the reconfiguration of our business.”

However, he expressed great regret on the two tragic work-related fatalities at Dishaba mine on June 7, and extended the deepest condolences to the families, friends and colleagues of Tshepiso Terrence Mokale and Euzmen Ndlebe.

“This incident occurred during a period when we have been making significant safety advancements across Anglo American Platinum and serves as a blunt reminder that we can never become complacent about workplace safety. We remain steadfast in our commitment to ensuring the safety of our workforce every day,” Miller said of the two men who lost their lives in an orepass-related incident.

A full investigation of the circumstances behind the incident is underway and immediate lessons learned from the tragedy have been shared across the business as part of an immediate call to action.

The total recordable injury frequency rate increased by 2% to 1.48 per million hours at its operations, up from 1.45 per million hours in the previous period.

Although second-quarter production decreased by 2% compared with the corresponding period last year, it was 10% higher than the first quarter, reflecting early-stage progress in the operational excellence efforts at the Amandelbult PGM mine.

PGM production from Amandelbult increased by 7% to 157 600 oz driven by higher throughput from underground infrastructures and improved grades resulting from operational efficiencies, although this was partially offset by metallurgical challenges at the plant.

Production from the flagship Mogalakwena mine fell by 4% to 232 600 oz owing to the blending of planned low-grade ore stockpiles as the new bench cut sequence progressed during the quarter, extracting higher waste tonnes in the short term.

Grades are expected to increase in the second half of the year, and the full-year grade is expected to be within the guided range of 2.7 g/t to 2.9 g/t.

The Mogalakwena North Concentrator's primary mill experienced an electrical failure on July 1 with repairs and mitigation plans underway and expected to be largely complete by the end of this month.

Production at the half-owned Modikwa mine increased by 3% to 36 000 oz on higher grades.

Toll refined PGM production decreased by 5% to 132 900 PGM ounces for the quarter in which there was no Eskom load-curtailment.

BASE METALS

Nickel production increased by 20% to 7 300 t and copper production increased by 18% to 4 600 t on higher throughput following the release of work-in-progress inventory.

PGM sales volumes, excluding trading, increased by 14% to 1 266 100 oz, supported by higher refined production and a drawdown of finished goods.