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Lonmin maintains sales guidance

26 January 2017 08:13

Lonmin has maintained its sales guidance for 2017 but was disappointed by first quarter production at its Generation 2 shafts and is reviewing its capital expenditure.

The Marikana mining operations including Pandora produced 2.3 million tonnes during the quarter, down 7.8% or 0.2 million tonnes on a year ago partly due to the planned decline from the closing of its high cost shafts.

Tonnes mined from its Generation 2 shafts totalled 1.8 million tonnes, a decrease of 5.2%, or 0.1 million tonnes on the comparative period due to the under-performance of K3, its biggest shaft.

K3 produced 590,000 tonnes, a decrease of 13.8% on the prior period.

Lonmin said: "We have been disappointed by the quarter 1 production at our Generation 2 shafts.

"With the initiative of deploying additional stoping and vamping crews, as well as the expected platinum ounces from the smelter clean-up project, our sales guidance for the 2017 full year is maintained at between 650,000 and 680,000 Platinum ounces.

"At this stage we still expect unit costs to remain in the range of R10,800 to R11,300 per PGM ounce for the full year subject to seeing sustained improvement in production during the year.

"We will be reviewing our capital expenditure and will provide an update on guidance in due course."

At 8:13am: (LON:LMI) Lonmin PLC share price was -16.12p at 160.63p

Story provided by StockMarketWire.com

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