Lonmin platinum sales fall

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LonminFire

REUTERS

A man holds a stone while running across the road as police approach Lonmin's Marikana mine in the North West province on September 15, 2012.

Platinum miner Lonmin plc (LON) said on Friday that total tonnes mined in the 2012 financial year amounted to 10.4 million – a 1.3 million tonnes decrease from 2011 as a result both of the events at Marikana and the uncharacteristically high number of safety stoppages that were seen across the South African PGM mining industry during the first half.

This resulted in total refined production for 2012 of just under 690‚000 Platinum ounces compared to just over 730‚000 Platinum ounces in the previous year.

Sales of Platinum ounces were 702‚000 – a 2.6% reduction on last year - helped by running down stocks in the pipeline‚ the company said.

Total revenue for the 12 months ended September declined by US$378 million from 2011 to US$1‚614 million for the year ended 30 September 2012.

Total underlying costs (excluding the impact of the strike disruption) in US Dollar terms decreased by US$134 million mainly due to the impact of cost escalations being offset by decreased production and positive foreign exchange movements.

Resulting underlying EBIT was US$67 million‚ although this is before special costs including those relating to the events at Marikana and the impairment of Akanani. After special items‚ the loss before interest and taxation was US$702 million.

Roger Phillimore‚ Chairman‚ said: “The publication of today’s results closes a painful chapter in Lonmin’s history. There are many lessons to be learnt and these will inform our actions in the future. However we are now looking ahead with renewed confidence. We have secured our financial position and we have a clear strategic plan that management and workers alike need to deliver on for the sake of all our stakeholders.”

“We are targeting production in excess of 750‚000 Platinum ounces in each of the years ending 30 September 2014 and 2015‚ and in excess of 800‚000 Platinum ounces per annum by the 2016 financial year‚” he added. - I-Net Bridge


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