Anglo American Platinum (Amplats) is expected to meet its 2023 production and cost guidance despite a broad set of external pressures.
It said metal-in-concentrate and refined production is expected to be within guidance at about 3.8 million PGM ounces.
Total capital expenditure for 2023 is also projected to be around R20.5 billion ($1.1 billion), which is R1.5 billion ($80 million) lower than previous guidance, primarily due to delays in spending for the Mototolo-Der Brochen life extension and optimisation of cashflows.
Its cash operating unit costs are anticipated to be within the upper end of guidance at about R17,800 ($946.14) per PGM ounce.
“In responding to the prevailing weakness of the PGM basket price environment and persistent cost inflation, we are deploying a series of measures to improve our competitive position while preserving our long-term optionality,” said Amplats chief executive Craig Miller.
“This action plan includes initiatives to reduce both annual costs by R5 billion ($266 million) and stay in business capital by R5 billion in 2024.”
He said they are also resequencing growth investments and prioritising higher margin production from their operations through their processing facilities.
“These measures will allow us to capitalise on our industry-leading portfolio for the long-term benefit of our stakeholders,” said Miller.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
