Anglo American is reportedly nearing the disposal of its platinum group metals (PGM) unit while simultaneously entering the final bidding phase for its steelmaking coal operations.
This announcement came from CEO Duncan Wanbald, who provided updates during a financial briefing yesterday.
“Our accelerated portfolio simplification to unlock the inherent value in Anglo American is well under way,” said Wanbald.
“The PGM demerger is on track to complete by the middle of 2025 (while) our Steelmaking Coal sale process continues to see significant competition for this world-class set of assets, with a final round of bidders in place, and we expect to announce execution of a sale agreement in the coming months.”
Anglo Platinum said it had delivered R8 billion of its targeted R10bn cost and capital reduction programme.
Consultations for the South African PGM miner’s retrenchment exercise had now been concluded with 90% of the exits finalised and the remainder to be completed by end of 2024.
This, and other cost optimisation programs had put the company on track to be within its cost guidance range of R16 500 to R17 500 per PGM ounce for the year. Anglo Platinum is also targeting an all-in sustaining cost (AISC) of below $1 050 per 3E ounce.
Reflecting market confidence, shares in Anglo American surged by 3.67% on the Johannesburg Stock Exchange (JSE), while its subsidiary, Anglo American Platinum, soared by an impressive 11.20% to R732.10 per share.
This uptick comes amid the backdrop of declining production figures across the company’s core commodities for the third quarter ended 30 September 2024, excluding nickel.
Specifically, Anglo American Platinum’s (Amplats) output plummeted by 10%, and steelmaking coal dwindled by 6%, primarily attributed to a fire incident at the Grosvenor facility.
Amplats CEO Craig Miller attributed the decrease in PGM production for the quarter to “the breakdown at the primary mill at the Mogalakwena North Concentrator” in July, which had resulted in the loss of 45 000 ounces.
Miller also cited self-imposed safety stoppages at Amandelbult after two fatality incidences that resulted in the company losing 20 000 ounces for the drop in output.
Although Anglo American bumped up production of nickel by 6%, its copper production for the quarter was lower by 13% in addition to a 25% plunge in diamond production by De Beers, which is also being disposed of.
After the slump in copper quarterly production, Anglo American said its operations were back on track to meet its guidance in both Chile and Peru.
“The operations (copper) are progressing on the reset mine plans implemented at the end of 2023. Total production of 181 300 tons reflects the reconfiguration of the Los Bronces mine and lower grades and recoveries at Quellaveco,” said the company.
In Chile, Anglo American’s copper production was primarily impacted by the planned closure of the Los Bronces plant, which has been put on care-and-maintenance, resulting in a 7% decrease to 112 600 tons. Anglo American is restructuring its operations to focus on copper and other future proof metals.
Anglo American’s manganese ore production decreased by 60% to 405 500 tons as a result of the ongoing temporary suspension of the Australian operations due to the impact of tropical cyclone Megan in March 2024.
“The weather event caused widespread flooding and significant damage to critical infrastructure. Operational recovery focused on re-establishing critical services and undertaking a substantial dewatering program which enabled a phased return to mining activities in June 2024,” it said.
In September, the company had deepened investments into crucial infrastructure at its manganese operations in Australia. This includes a critical bridge connecting the northern mining pits and the primary concentrator.
BUSINESS REPORT