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Lonmin output up

17 July 2017 08:09

Lonmin mined 2.7 million tonnes in the three months to the end of June - 3.8% up on a year ago.

But the group has two fatalities in the period when the 12 month rolling Safety Lost Time Injury Frequency Rate had improved by 2.0% quarter on quarter.

Tonnes mined from its Generation 2 shafts, which generated 84% of production, increased by 9.0% to 2.2 million tonnes compared with the prior year period and increased by 18.6% against Q2 2017.

Other highlights:

- Concentrator recoveries continue to be excellent at 86.8%.

- Sales of 180,348 Platinum ounces increased by 10.8% on prior year period and Lonmin has maintained full-year sales guidance of 650,000 ounces to 680,000 ounces.

- Average Rand full basket price down 3.0% on the prior year period, at R11,506 per PGM ounce.

- As a result of the much improved mining performance, unit costs reduced by 4.7% quarter-on-quarter to R11,278 per PGM ounce (6E basis), and increased 6.4% year-on-year, slightly above inflation.

Chief executive Ben Magara said: "We had a pleasing operational performance all round and continue with our decisive work and aim to be at least cash neutral even at current low PGM prices and a strong Rand.

"I am pleased that with the right team in place, our mining turnaround has been sustained.

"I am grateful to our employees who have worked hard to produce the results we are seeing. We continue to find levers to pull, in this 'lower prices for longer' environment and to make the improvement of our performance a priority.

"I am particularly pleased that our net cash has improved.

"Despite the difficult global macro-economics and the complex and challenging socio political operating environment, we are still able to find common ground for Lonmin to deliver this sustained improved performance."

At 8:09am: (LON:LMI) Lonmin PLC share price was +3.5p at 71p

Story provided by StockMarketWire.com

Related Company: LMI

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