Anglo Platinum revealed today (13th April) that it is now planning to achieve eight per cent more production than it previously anticipated this year.

Neville Nicolau, Chief Executive of the world's largest platinum producer, revealed that the company hopes to add between 150,000 oz and 200,000 oz on to an original forecast of 2.5 million ounces.

In addition, he noted that capital expenditure for this year will be boosted from R8 billion to R10 billion if the target is achieved.

Mr Nicolau, who made the announcement during a speech in Rustenburg, South Africa, also emphasised that he could not guarantee the output increase at this stage.

Nevertheless, Liberum Capital Analyst Dominic O'Kane claimed that the news represents a "bullish signal for platinum producers generally", Bloomberg reports.

Anglo has managed to significantly reduce its production unit costs through mining operation restructuring and job cuts, despite increasing power prices in South Africa.

"We think we have the capacity to keep our costs flat for the next few years to come," Mr Nicolau told Reuters.

"What affects our business is the rand basket price. The long-term sustainable platinum price (can) change because of the rand."

Anglo has previously suggested that the platinum market would return to a deficit in 2010, mainly due to a small rise in supply and a sizeable recovery in demand.

Created in 1995 through the disbanding of Johannesburg Consolidated Investments, Anglo Platinum has a number of interests in the platinum-rich Bushveld Complex.

Sources:

Anglo Platinum Output May Exceed Guidance, CEO Says (Update2) (13/04/10)

Anglo Platinum Says on Track to Keep Costs ‘Flat’ This Year (13/04/10)

Angloplat sees strong demand in 2010, may up output (13/04/10)

Anglo Platinum: "The world has changed as far as the platinum market is concerned" (13/04/10)

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