Amplats expects a a two-month delay in the completion of the Polokwane rebuild and has not updated 2023 refined production guidance.
Anglo American Platinum (Amplats) yesterday revised its 2022 refined production guidance lower as quality assurance processes detected sub-standard materials received for the Polokwane smelter rebuild.
The refined production guidance has been revised to between 3.7 to 3.9 million platinum group metal (PGM) ounces, from previously between 4.0 to 4.4 million PGM ounces.
The group said the delivery of replacement materials would result in a two-month delay in the completion of the project.
"As a result, there will be a build-up in work-in-progress inventory in 2022 and a short-term timing impact to refined PGM production," the group said.
Amplats chief executive Natascha Viljoen said: “As we undergo our first full rebuild of the Polokwane smelter in 12 years, our quality assurance processes identified a defective consignment of materials required to complete the rebuild.”
"We remain committed to ensuring the structural integrity of our Polokwane smelter, with high standards embedded into the rebuild to ensure asset integrity and the longevity of this operation," Viljoen said.
She said the company would not compromise on safety or quality, and therefore the defective materials won't be used, and a new consignment of materials was expected to be delivered by the end of October.
According to Anglo American, the sales guidance would also be revised in line with refined production to between 3.7 to 3.9 million PGM ounces.
"There is no impact to metal-in-concentrate guidance, which remains between 3.9 to 4.3 million PGM ounces, and unit cost guidance remains between R14 000 to R15000 per PGM ounce. All guidance is subject to no disruptions due to load-shedding," it said.
Amplats said it had not updated the 2023 refined production guidance at this stage until further information was available and analysis could be conducted.
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