Anglo American Platinum on Friday said it had cut its production forecast for 2023 and 2024 due to lower grades at its Mogalakwena operations and lower volumes from Amandelbult, but 2022 output remained within target.
Amplats shares were 2.28% lower at 10:44 am following the announcement.
The company said refined platinum group metals (PGM) output for 2023 and 2024 is now expected to be between 3.6 million and 4 million ounces, lower than the initial guided range of between 3.8 million and 4.2 million ounces for 2023 and 4.1 million and 4.5 million ounces in 2024.
The company also revised its 2022 cost guidance upwards to 15,300 rand ($892.62) per PGM ounce, up from the previous forecast within the 14,000-15,000 rand range.
"Unit cost of production in 2022 has been impacted by ongoing inflationary pressure on input costs due to higher diesel, fuel, and consumable prices owing to the effects of COVID-19 on supply chains, import logistics constraints, Eskom load-shedding, as well as lower production," Amplats said.
Mogalakwena and Amandelbult are in north eastern South Africa.
Reuters