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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Lonmin Plc | LSE:LMI | London | Ordinary Share | GB00BYSRJ698 | ORD USD0.0001 |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 75.60 | 73.70 | 74.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Jun 2019 to Jun 2024
TIDMLMI
RNS Number : 8098W
Lonmin PLC
31 January 2013
REGULATORY RELEASE
31 January 2013
Q1 2013 Production Report & Interim Management Statement (Amendment)
The following announcement is made to amend the numbers given at the beginning of the second paragraph of the original announcement which was released at 7am today to make them consistent with the table.
Lonmin Plc ("Lonmin" or the "Company"), the world's third largest Platinum producer, today announces its production results for the quarter to 31 December 2012 (unaudited) and Interim Management Statement for the period from 1 October 2012 to today's date.
Overview
Our production performance in the quarter has substantially exceeded our planned ramp up to produce Platinum in concentrate of 185,497 saleable ounces and Platinum sales of 108,342 saleable ounces. This demonstrates the successful execution of the operational plans we put in place for the safe re-start and ramping up of production following the labour unrest that preceded the period. The protocols developed for our safe sustainable start up have not only been commended by regulatory authorities as being best practice but have been adopted and rolled out by our peers. Total tonnes mined were 2.9 million tonnes, similar to the prior year period.
In addition our exemplary safety performance throughout the production ramp up delivered an improved Lost Time Injury Frequency Rate (LTIFR) for the quarter of 3.74 incidents per million man hours worked compared to 4.16 for Q4 2012 and 4.67 for Q1 2012. The Process Division had a LTI free first quarter for the first time in five years.
Mining Division
Total tonnes mined in the first quarter of the 2013 financial year from our Marikana underground operations were 2.7 million tonnes, down 26,000 tonnes or 1.0% from the prior year period. This is a relatively flat performance when compared to Q1 2012, as this performance masks two trends. Firstly the prior year period results were unusually impacted by the high incidence of Section 54 safety reviews and stoppages which dominated the South African Mining sector as a whole and resulted in lower than normal production in that period. The total impact of Section 54 shutdowns in Q1 2012 was 177,000 tonnes, compared to 19,000 tonnes in Q1 2013. Secondly the Q1 2013 production reflects the re-commencement and gradual ramping up of production during the quarter. The quarter's performance is commendable with tonnes mined well ahead of the ramp up plan and overall mining divisions' output up 78.2% from Q4 2012. This solid performance is due to the emphasis we have placed on safely accelerating our ramp up following the resumption of operational activities coupled with the extensive training we conducted before blasting commenced on 1 October 2012. In addition, management interventions have assisted in ensuring high levels of employee work attendance during the quarter up to the December break.
Looking specifically at how our four mining divisions contributed to the quarter's total production, tonnes mined at Karee were largely flat increasing by only 2,000 tonnes or 0.1% from the prior year period, with tonnes mined at K3, our biggest shaft, relatively flat when compared to the prior year period. The prior year period also included 18,000 tonnes from K4, which was placed on care and maintenance in September 2012. Westerns production decreased by 42,000 tonnes or 5.5% driven by the planned depletion of ore reserves at Newman shaft and ore reserve and infrastructure challenges at Rowland. Production at Middelkraal was up 66,000 tonnes representing a 14% increase from the prior year period as both Hossy and Saffy continued to increase production. Production at Easterns fell by 53,000 tonnes or 19.4% as E1 and E3 approached their end of life. Pandora underground production increased by 7,000 tonnes or 13.5% to 61,000 tonnes and is ramping up to replace the tonnes lost by the winding down of E1 and E3.
Our opencast Merensky operations delivered a total of 155,000 tonnes, an increase of 37,000 tonnes or 31.3% from the prior year period as planned.
Process Division
Total tonnes milled for the quarter declined by 4.6% to 2.8 million tonnes when compared to Q1 2012. This was due to the concentrators re-starting as planned, ten days after the mining ramp up commenced on 1 October 2012. This was to rebuild stocks as required for efficient plant running and the planned closure of the Number One shaft UG2 concentrator for upgrade. The UG2 concentrator is due to come back online in the fourth quarter of FY 2013.
Underground milled head grade during the period increased by 3.1% to 4.64 grammes per tonne (5PGE + Au) compared to the prior year period, as a result of an increase in hoisting grade and ore mix. The opencast milled head grade was marginally lower than Q4 2012 grade and lower than prior year period at 2.98 grammes per tonne. Overall, total milled head grade increased by 2.6% to 4.59 grammes per tonne in the period.
Underground and overall concentrator recoveries improved by 1.5 percentage points to 86.8% when compared with the prior year period, assisted by the successful commissioning of the Eastern Tails Treatment Plant in April 2012.
Platinum in concentrate from our Marikana operations was 174,253 saleable ounces, a 2.2% decrease from the prior year period and an increase of 71,431 ounces when compared to Q4 2012. In total the concentrators produced 185,497 saleable ounces of Platinum in the quarter, a 0.7% decrease from the prior year period. Total refined production for the quarter was 135,455 ounces of saleable Platinum an increase of 18.9% on the prior year period. The discrepancy between metal in concentrate and refined production is a consequence of the planned restocking of the pipeline following the six week strike and the re-establishment of stable metal flows through the value chain. We have successfully filled the pipeline and our stocks are in a healthy position.
Sales & Pricing
Platinum sales at 108,342 ounces were 16.7% higher than the prior year period, total PGM sales decreased by 3.7% to 182,576 ounces.
The US dollar basket price at $1,176 per ounce improved by 3.5% on the prior year period whilst the increase in the Rand basket price was more pronounced up 10.3% to R10,152 per ounce.
Renewal Plan
Cost management programmes
The implementation of our renewal plan has progressed well; the over performance on many of the metrics is encouraging, and in the absence of any unexpected material labour unrest, it is expected to continue as suggested by the healthy stock levels reflected in our production report. The assessment of our operating model and management structure is progressing as planned whilst our initiative to deliver a R100 million in procurement savings for FY 13 by implementing structures, processes and systems to fully benefit from a Total Cost of Ownership approach is also progressing well.
Employee relationship
Our union membership profile has evolved over the last few months whilst the recognition agreements with our union stakeholders have also expired. In light of this, we have commenced the process of reviewing the recognition arrangements with a view to establishing all inclusive recognition that provides appropriate representation to all the unions and associations representing our employees.
In parallel, Lonmin is actively participating in industry discussions on the establishment of a forum for centralised engagement and looks forward to this becoming a reality.
Social licence - housing, community and employee care
The Board separately today, will announce initiatives around housing, the communities we operate in and our employees.
Financial stability
The Rights Issue announced on 9 November 2012 to raise approximately $817 million was successfully completed on 11 December 2012. Since then, Lonmin has repaid in full its $700 million USD bank debt facilities, cancelling the $300 million term loan facility leaving the $400 million revolving credit facility available to be drawn when required. The amendments to this facility as well as Lonmin's ZAR bank debt facilities of R1.98 billion outlined at the time of the Rights Issue both became effective in December 2012. The successful conclusion of this balance sheet refinancing has significantly strengthened Lonmin's financial position and gives it greater financial flexibility, with sufficient available liquidity and more appropriate financial covenants.
Board and Management Update
On 28 December 2012, we announced the resignation of Ian Farmer as Chief Executive of the Company. The Board has appointed an executive search agency to pursue the selection and engagement of his successor and this search is currently underway. We announced on 23 January 2013 that Cyril Ramaphosa would not be standing for re-election as a Non-Executive Director of Lonmin at the AGM today.
Outlook
Our operations delivered a strong performance in the quarter ahead to exceed our planned ramp up targets. Encouragingly, the second quarter is proceeding well with the momentum of the first quarter having already been re-established. We remain focused on embedding the safety protocols that have underpinned the successful start up reflected in our solid production results. At this early stage of the year, guidance for the full year is maintained at 680,000 Platinum ounces of saleable metals in concentrate and sales of 660,000 ounces of Platinum. We maintain our capital expenditure guidance for the year of around $175 million and unit cost guidance of around R9,350 per PGM ounce produced absent any material safety or industrial relations stoppages.
- ENDS -
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Notes to editors
Lonmin, which is listed on both the London Stock Exchange and the Johannesburg Stock Exchange, is one of the world's largest primary producers of PGMs. These metals are essential for many industrial applications, especially catalytic converters for internal combustion engine emissions, as well as their widespread use in jewellery.
Lonmin's operations are situated in the Bushveld Complex in South Africa, where nearly 80% of known global PGM resources are found.
The Company creates value for shareholders through mining, refining and marketing PGMs and has a vertically integrated operational structure - from mine to market. Lonmin's mining operations extract ore from which the Process Division produces refined PGMs for delivery to customers. Underpinning the operations is the Shared Services function which provides high quality levels of support and infrastructure across the operations.
For further information please visit our website: http://www.lonmin.com
3 months 3 months
to 31 to 31
Dec Dec
2012 2011
------------------ ------------------------- ------------------ ----- --------- ---------
Tonnes mined Marikana Karee(1) kt 1 213 1 211
Westerns(1) kt 720 761
Middelkraal(1) kt 542 476
Easterns(1) kt 219 272
------------------ -------------------------------------------------- --------- ---------
Underground kt 2 694 2 720
Opencast kt 155 118
Total kt 2 849 2 838
--------- ---------
Pandora attributable(2) Underground kt 61 54
Lonmin Platinum Underground kt 2 755 2 774
Opencast kt 155 118
Total kt 2 910 2 892
% UG2 % 72.6% 70.7%
------------------ -------------------------------------------------- --------- ---------
Tonnes milled(3) Marikana Underground kt 2 646 2 820
Opencast kt 91 77
Total kt 2 737 2 897
---------
Pandora(4) Underground kt 146 126
Lonmin Platinum Underground kt 2 792 2 946
Head grade(5) g/t 4.64 4.50
Recovery rate(6) % 86.8% 85.3%
Opencast kt 91 77
Head grade(5) g/t 2.98 3.33
Recovery rate(6) % 84.8% 85.7%
Total kt 2 883 3 023
Head grade(5) g/t 4.59 4.47
Recovery rate(6) % 86.8% 85.3%
------------------ -------------------------------------------------- --------- ---------
Metals in
concentrate(7) Marikana Platinum oz 174 253 178 131
-----------------
Palladium oz 79 273 81 041
Gold oz 4 238 4 664
Rhodium oz 23 097 22 463
Ruthenium oz 35 441 35 349
Iridium oz 7 824 7 739
Total PGMs oz 324 126 329 387
Nickel(8) MT 856 966
Copper(8) MT 547 624
------------ ---------------------------------------- -------- --------
Pandora(4) Platinum oz 10 336 8 595
Palladium oz 4 770 3 993
Gold oz 77 65
Rhodium oz 1 615 1 310
Ruthenium oz 2 456 2 012
Iridium oz 433 345
Total PGMs oz 19 687 16 321
Nickel(8) MT 17 13
Copper(8) MT 10 7
------------ ---------------------------------------- -------- --------
Concentrate Platinum oz 907 0
purchases Palladium oz 246 0
Gold oz 3 0
Rhodium oz 91 0
Ruthenium oz 96 0
Iridium oz 37 0
Total PGMs oz 1 379 0
Nickel MT 1 0
Copper MT 0 0
------------ ----------------------------------------
Lonmin Platinum Platinum oz 185 497 186 725
Palladium oz 84 290 85 035
Gold oz 4 317 4 730
Rhodium oz 24 803 23 773
Ruthenium oz 37 992 37 361
Iridium oz 8 295 8 084
Total PGMs oz 345 193 345 708
Nickel(8) MT 874 978
Copper(8) MT 557 631
------------ ---------------------------------------- -------- --------
3 months 3 months
to 31 to 31
Dec Dec
2012 2011
-------------------- ------------------- ------------ ---- --------- ---------
Lonmin refined
Refined production metal production Platinum oz 135 364 112 220
-------------------
Palladium oz 60 625 58 818
Gold oz 3 560 3 663
Rhodium oz 6 251 20 037
Ruthenium oz 31 327 31 965
Iridium oz 8 601 9 320
Total PGMs oz 245 727 236 022
------------ --------------------------------------------- --------- ---------
Toll refined
metal
production Platinum oz 91 1 730
-------------------
Palladium oz 128 4 124
Gold oz 252 202
Rhodium oz 1 688 1 580
Ruthenium oz 1 457 1 704
Iridium oz 267 588
Total PGMs oz 3 883 9 928
------------ --------------------------------------------- --------- ---------
Total refined
PGMs Platinum oz 135 455 113 950
-------------------
Palladium oz 60 753 62 942
Gold oz 3 812 3 865
Rhodium oz 7 939 21 616
Ruthenium oz 32 784 33 668
Iridium oz 8 868 9 908
Total PGMs oz 249 610 245 950
------------ --------------------------------------------- --------- ---------
Base metals Nickel(9) MT 768 730
-------------------
Copper(9) MT 467 366
------------ --------------------------------------------- --------- ---------
Refined metal
Sales sales Platinum oz 108 342 92 863
-------------------
Palladium oz 44 071 39 492
Gold oz 2 400 3 618
Rhodium oz 4 362 18 235
Ruthenium oz 19 061 24 684
Iridium oz 4 341 10 698
Total PGMs oz 182 576 189 590
------------ --------------------------------------------- --------- ---------
Nickel(9) MT 692 791
Copper(9) MT 201 321
Chrome(9) MT 277 552 261 205
------------ --------------------------------------------- --------- ---------
Average prices Platinum $/oz 1 575 1 532
Palladium $/oz 666 627
Gold $/oz 1 509 1 668
Rhodium $/oz 1 184 1 549
Ruthenium $/oz 82 121
Iridium $/oz 1 016 1 041
$ basket price excl. by-product
revenue(10) $/oz 1 176 1 136
$ basket price incl. by-product
revenue(11) $/oz 1 268 1 238
R basket price excl. by-product
revenue(10) R/oz 10 152 9 204
R basket price incl. by-product
revenue(11) R/oz 10 886 9 935
--------------------------------- ----------------------- ------- -------
Nickel(9) $/MT 14 296 15 287
Copper(9) $/MT 7 239 6 874
Chrome(9) $/MT 19 19
--------------------------------- ----------------------- ------- -------
Exchange rates Average rate for period(12) R/$ 8.67 8.09
-----------------
Closing rate R/$ 8.45 8.07
--------------------------------- ----------------------- ------- -------
Notes:
1 Karee includes the shafts K3, 1B, 4B and K4. Westerns comprises Rowland, Newman and ore purchases from W1. Middelkraal represents Hossy and Saffy. Easterns includes E1, E2 and E3.
2 Pandora attributable tonnes mined represents Lonmin's share (42.5%) of the total tonnes mined on the Pandora joint venture.
3 Tonnes milled excludes slag milling.
4 Lonmin purchases 100% of the ore produced by the Pandora joint venture for onward processing which is included in downstream operating statistics.
5 Head grade is the grammes per tonne (5PGE + Au) value contained in the tonnes milled and fed into the concentrator from the mines (excludes slag milled).
6 Recovery rate in the concentrators is the total content produced divided by the total content milled (excluding slag).
7 Metals in concentrate include metal derived from slag processing and have been calculated at industry standard downstream processing losses to present produced saleable ounces.
8 Corresponds to contained base metals in concentrate.
9 Nickel is produced and sold as nickel sulphate crystals or solution and the volumes shown correspond to contained metal. Copper is produced as refined product but typically at LME grade C. Chrome is produced in the form of chromite concentrate and volumes shown are in the form of chromite.
10 Basket price of PGMs is based on the revenue generated in Rand and Dollar from the actual PGMs (5PGE + Au) sold in the period based on the appropriate Rand / Dollar exchange rate applicable for each sales transaction.
11 As per note 10 but including revenue from base metals.
12 Exchange rates are calculated using the market average daily closing rate over the course of the period.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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