Platinum group metals (PGM) miner Anglo American Platinum (Amplats) has raised its refined PGM production guidance for the full-year to December 31 to between 3.7-million and 3.9-million ounces, from the 3.3-million to 3.7-million ounces guided previously, on the back of a strong and stable performance from its processing assets, which has enabled it to release built-up work-in-progress inventory.

The miner notes, however, that the higher guidance assumes no load curtailment by power utility Eskom.

Further, it maintains its metal-in-concentrate production guidance for the full-year at between 3.3-million and 3.7-million ounces.

Amplats' total PGM production decreased by 10% year-on-year to 922 300 oz for the third quarter, mainly owing to lower production at Mogalakwena following a mill breakdown, the impact of self-imposed safety stoppages at Amandelbult, and the Kroondal transition to 4E toll arrangement.

"Despite these negative impacts, we maintained the same levels of production compared with the second quarter, reflecting positive progress in our turnaround initiatives and operational excellence efforts," the miner reports.

"The processing business had strong and stable performance through the period, and this resulted in refined production and sales rising by 22% and 16%, respectively, as work-in-progress inventories were released without constraints from load curtailment," CEO Craig Miller comments.

Refined PGM production for the third quarter was 1.11-million ounces and sales of refined PGMs 1.1-million ounces.

The average realised basket price for the third quarter, of $1 477/oz, was 4% lower year-on-year, predominantly owing to a 17% lower palladium price and a 14% lower ruthenium price. The average year-to-date realised basket price was flat compared with the same period in 2023.

“We have continued to implement the productivity and operational excellence initiatives as part of our action plan to create a more resilient business. The latest initiatives are well advanced and should be fully implemented by the end of 2024.

"We have delivered about R8-billion of our targeted R10-billion cost and capital reduction programme and the consultation process for Section 189A restructuring has concluded, with 90% of the exits finalised and the remainder to be completed by end of 2024.

"We also continue to progress towards a responsible and orderly separation from Anglo American. Our management team and the independent board subcommittee are working alongside a dedicated team within Anglo American to achieve this and I am confident that our demerger will be successfully completed in 2025,” Miller says.