Share Name Share Symbol Market Type Share ISIN Share Description
Lonmin 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
  -2.50p -2.61% 93.25p 92.25p 92.75p 96.25p 88.00p 96.00p 3,358,330 16:35:23
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Mining 861.4 -308.2 -105.6 - 263.37

Lonmin PLC Q3 Production Report

17/07/2017 7:00am

UK Regulatory (RNS & others)


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Lonmin PLC

17 July 2017

LEI No: 213800FGJZ2WAC6Y2L94

REGULATORY RELEASE

17 July 2017

Third Quarter 2017 Production Report and Business Update

Lonmin Plc ("Lonmin" or "the Company"), one of the world's largest primary platinum producers, today announces its production results for the quarter ended 30 June 2017 (unaudited) and a business update.

Third Quarter Highlights

-- It is with great regret that we have to report 2 fatalities in a period when the 12 month rolling Safety Lost Time Injury Frequency Rate ("LTIFR") had in fact improved by 2.0% quarter on quarter.

-- The mining performance improvement since March 2017 has been sustained into Q3 2017. Total tonnes mined increased by 3.8% to 2.7 million tonnes compared with Q3 2016, up 13.2% on Q2 2017.

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

   --     Concentrator recoveries continue to be excellent at 86.8%. 

-- Sales of 180,348 Platinum ounces increased by 10.8% on prior year period. We are maintaining our 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.

-- We were at the lower end of the revised unit cost guidance of between R11,300 and R11,800 per PGM ounce.

-- Gross cash improved to $236 million at 30 June 2017 from $225 million as at the end of the second quarter.

-- Net Cash improved to $86 million (gross cash of $236 million less the drawn term loan of $150 million) at 30 June, up from $75 million (gross cash of $225 million less the drawn term loan of $150 million) at the end of the second quarter.

Ben Magara, Chief Executive Officer, 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."

 
                                                                                      3 months   3 month            % 
                                                                                         to 30     to 30    Increase/ 
                                                                April    May   June       June      June 
                                                                 2017   2017   2017       2017      2016   (decrease) 
-------------  ---------------  -------------------  --------  ------  -----  -----  ---------  --------  ----------- 
                Generation 
 Tonnes          2               K3 Shaft               kt        237    290    279        806       661        22.0% 
                                  Rowland 
 Mined                             Shaft                 kt       150    182    196        528       437        20.8% 
   Saffy Shaft                           kt                       161    212    206        580       518        12.0% 
   4B Shaft                              kt                        96    101    117        314       427      (26.5)% 
  -------------------  --------------------------------------  ------  -----  -----  ---------  --------  ----------- 
   Total Generation 
    2                                    kt                       645    785    799      2 228     2 043         9.0% 
  -------------------  --------------------------------------  ------  -----  -----  ---------  --------  ----------- 
  Generation 
   1                                              kt              127    133    172        431       526      (18.1)% 
 ------------------------------------   ---------------------  ------  -----  -----  ---------  --------  ----------- 
   Total underground                     kt                       771    917    971      2 659     2 569         3.5% 
  -------------------  --------------------------------------  ------  -----  -----  ---------  --------  ----------- 
   Opencast                              kt                                7      0          7 
  -------------------  --------------------------------------  ------  -----  -----  ---------  --------  ----------- 
  Lonmin           Total Tonnes 
   (100%)           Mined                        kt               771    924    971      2 666     2 569         3.8% 
 ---------------  -------------------  ----------------------  ------  -----  -----  ---------  --------  ----------- 
  Lonmin           Total Tonnes 
   attributable     Mined                        kt                                      2 606     2 508         1.9% 
 ---------------  -------------------  ----------------------  ------  -----  -----  ---------  --------  ----------- 
                Lonmin                                                                     169       166 
 Ounces          (incl           Platinum               oz                                 820       581         1.9% 
                                                                                           326       320 
 mined          Pandora)         PGMs                   oz                                 540       514         1.9% 
-------------  ---------------  -------------------  --------  ------  -----  -----  ---------  --------  ----------- 
 Tonnes                           Total                  oz                              2 690     2 514         7.0% 
 milled                           Head grade             oz                               4.58      4.68       (2.1)% 
   Recovery 
    rate                                 oz                                              86.8%     87.0%       (0.2)% 
  -------------------  --------------------------------------  ------  -----  -----  ---------  --------  ----------- 
                                                                                           171       164 
 Metals-in-                       Platinum               oz                                381       647         4.1% 
                                                                                           329       316 
 concentrate                      PGMs                   oz                                336       480         4.1% 
------------------------------   -------------------  -------  ------  -----  -----  ---------  --------  ----------- 
                                                                                           180       162 
 Sales                            Platinum               oz                                348       725        10.8% 
 Refined                                                                                   345       315 
  metal                           PGMs                   oz                                354       091         9.6% 
------------------------------   -------------------  -------  ------  -----  -----  ---------  --------  ----------- 
                $ basket incl. 
 Average         by-product revenue                    $/oz                                882       796        10.8% 
                R basket incl. 
 prices          by-product revenue                   ZAR/oz                            11 506    11 864       (3.0)% 
-------------  ------------------------------------  --------  ------  -----  -----  ---------  --------  ----------- 
 Exchange       Average rate for 
  rate           period                                ZAR/$                             13.19     14.99      (12.0)% 
-------------  ------------------------------------  --------  ------  -----  -----  ---------  --------  ----------- 
 Unit           Cost of production 
  costs          per PGM ounce                        ZAR/oz                            11 278    10 595       (6.4)% 
-------------  ------------------------------------  --------  ------  -----  -----  ---------  --------  ----------- 
 

Third Quarter Production Overview

Safety

-- Regrettably, two colleagues were fatally injured during the period. As reported at the Interims, Mr Simon Sibitane, a locomotive operator at 4B on 11 May and Mr Mangi Bunga, a Team Leader rail and Haulage Maintenance at 4B on 29 June, died following a tramming incident. The five fatalities experienced during the first nine months are unacceptable. We will be holding a safety workshop with stakeholders this month as we continue to work with all stakeholders to identify and implement sustainable remedies.

-- The 12 month rolling LTIFR to 30 June improved by 2.0% to 4.80 per million man hours from 4.88 at 31 March 2017.

-- The 12 month rolling Total Injury Frequency Rate improved 3.0% to 11.62 at 30 June 2017, from 12.03 at 31 March 2017.

Mining Operations

The Marikana mining operations (including Pandora) produced 2.7 million tonnes during the third quarter, an increase of 3.8% or 97,000 tonnes on the prior year period, reflecting a strong performance from our core Generation 2 shafts in spite of the planned decrease in production from the Generation 1 shafts in line with our strategy to reduce high cost production in a low price environment.

Generation 2 shafts

Tonnes mined from our core Generation 2 shafts (K3, Rowland, Saffy and 4B) were 2.2 million tonnes, an increase of 9.0% on the prior year period and accounted for 84% of total tonnes mined, emphasizing our continued focus on improving production at these shafts, which are important for Lonmin's future.

-- K3 produced 806,000 tonnes, an increase of 22.0% on the prior year period and a quarter on quarter increase of 38.3%. The production of 290,000 tonnes at K3 for the month of May was the highest since July 2013.

-- Saffy shaft produced 580,000 tonnes, an increase of 12.0% on the prior year period and a quarter on quarter increase of 16.4%.

-- Rowland shaft produced 528,000 tonnes, an increase of 20.8% on the prior year period and a quarter on quarter increase of 16.8%. This was the shaft's best quarterly production since the fourth quarter of the 2011 financial year and the best Q3 output in the last eight years.

-- 4B produced 314,000 tonnes, a decrease of 26.5% on the prior year period, impacted by safety stoppages associated with the two fatalities.

Despite the poor start to the financial year, tonnes mined from the Generation 2 shafts for the nine months to 30 June of 5.9 million tonnes are now in line with the prior year. This gratifying result illustrates the extent of the momentum the mining team has established in the last five months, following the weak first four months. Traditionally, the fourth quarter is our strongest in terms of production and we anticipate this momentum to continue absent any unforeseen interruptions to the mining production run.

As previously announced, we're on track with our plan for development crews deployed to stopping areas to revert to their own working areas by the end of the financial year.

Generation 1 shafts

In line with the Group's rationalisation of high cost areas, production from our Generation 1 shafts (Hossy, Newman, W1, E1, E2, E3 and Pandora (100%)) at 431,000 tonnes was 18.1% lower than the prior year period. Some of these shafts are managed as a coherent unit and are run by contractors, providing better flexibility to retain or stop them, depending on their profit contribution to the Company.

The combined E3 unit (E3 plus the Pandora JV) only produced 6,000 tonnes or 4% less in Q3 FY17 when compared to Q3 FY16, despite losing around 35,000 tonnes during May, when community protests disrupted production around the unit, as explained later in this report.

Ore reserves

Operational flexibility was preserved with the immediately available ore reserve position of 3.3 million square metres at the end of Q3 2017, or 20 months average production versus 3.9 million square metres at the end of Q3 2016.

Production Losses

Production lost due to Section 54 safety stoppages in the quarter totalled only 44,000 tonnes. This was 199,000 tonnes better than the prior year period.

 
                                  Q3 2017    Q3 2016 
                                   tonnes     tonnes 
------------------------------  ---------  --------- 
  Section 54 safety stoppages      44,000    243,000 
  Management induced safety 
   stoppages Labour/Community 
   disruptions                     24,000     13,000 
                                   59,000     56,000 
  Total tonnes lost               127,000    311,000 
------------------------------  ---------  --------- 
 

Process Operations

Milling production in the quarter of 2.7 million tonnes was in line with tonnes mined of 2.7 million tonnes, and 7% higher than the 2.5 million milled in the prior year period, as a result of the improved mining performance. Metal-in-Concentrate produced was up 4.1% compared to Q3 2016 with 171,381 Platinum ounces and 329,336 PGM ounces.

Underground milled head grade at 4.58 grammes per tonne (5PGE+Au) decreased by 2.3% when compared to the 4.69 grammes per tonne achieved in the prior year period. The overall milled head grade was 4.58 grammes per tonne, down 2.2% on the prior year period of 4.68 grammes per tonne. The main reason that the overall grade is down is because of the change in the ore type mix. During the quarter, the Merensky proportion of tonnes milled was 3.0% more than the proportion milled during Q3 2016 (29% vs 26%). There was also a slight drop in the UG2 grades during the quarter as a result of increased dilution from leader seams at K3 UG2 for the period.

Concentrator recoveries for the quarter continue to be excellent at 86.8%.

Total refined Platinum production at 180,323 ounces was 3.9% higher than the prior year period. Total PGMs produced were 359,680 ounces, an increase of 3.1% on the prior year period. Refined Platinum production continued to benefit from the smelter clean-up project, which released 8,942 Platinum ounces during the quarter, compared to 8,865 ounces in the prior year period.

Sales & Pricing

Platinum sales for the quarter were 180,348 ounces, an increase of 10.8% compared with Q3 2016, mainly as a result of the improved mining performance. PGM sales were 345,354 ounces, up 9.6% on Q3 2016 sales.

Platinum sales for the nine months to 30 June 2017 were 487,343 ounces and we are maintaining our sales guidance for the year of 650,000 ounces to 680,000 ounces.

The US Dollar basket price (including base metal revenue) at $882 per ounce during the quarter was up 10.8% on Q3 2016 while the corresponding Rand basket price (R11,506 per ounce) was 3.0% lower than the prior year period. The average Rand to US Dollar exchange rate was 12.0% stronger at R13.19 compared to R14.99 in the prior year period.

Unit costs

Unit costs for the quarter were R11,278 per PGM ounce, a decrease of 4.7% on Q2 as a result of the improved mining performance. This is at the lower end of our revised guidance of between R11,300-R11,800. The year-on-year increase of 6.4% is slightly above inflation.

Community relationships

We experienced some community unrest during May. We are working with community leaders and have enlisted assistance from labour and other key stakeholders to assist us to create a stable operating environment. Contractors have also been engaged, where possible, to make opportunities for job creation for community members. Generally the community relations around the operations are improving.

Pandora update

We are making good progress with obtaining the necessary consents for the Pandora acquisitions and have now received approval from the Competition Authorities. As previously reported, we have submitted the requisite application for Section 11 consent to the Department of Mineral Resources prior to the release of the Mining Charter III and await approval. The transaction also remains subject to consent from our lending banks. We expect the transaction to complete by the end of the calendar year. On completion of these transactions, Lonmin will own 100% of Pandora. Full ownership of Pandora allows us to extend the mining at Saffy shaft further on strike east and west of the shaft, which will enable the deferment of the deepening of the shaft. The acquisition allows us to defer over R2.6 billion of allocated capital expenditure required for the further deepening of Saffy shaft, of which R1.6 billion will be over the next four years.

Outlook and Guidance

We are maintaining our sales guidance of between 650,000 Platinum ounces to 680,000 Platinum ounces, absent any unexpected interruptions to the smooth running of mining production. We believe this is achievable based on the sustained good operational results we have seen these past five months, combined with the fact that the fourth quarter of our financial year is traditionally our strongest. Safety remains a cause for concern, and we remain focused on addressing the root causes of safety incidents.

We anticipate achieving the revised unit cost guidance for FY17 of between R11,300 and R11,800 per PGM ounce.

We continue with our strategy of minimising capital expenditure but we are ensuring that the Immediately Available Ore Reserve position is maintained at the level necessary to support planned production at the Generation 2 shafts and minimise the near term impact on production. As in previous years, capital expenditure is weighted towards the second half of the financial year. We are maintaining our revised capital expenditure guidance for the current year to between R1.4 billion and R1.5 billion of which R917 million has been spent to date.

Board changes

As planned and previously announced in January 2017, Jim Sutcliffe will step down as a Non-executive Director and the Senior Independent Director of the Company on 31 July 2017, having served almost 10 years on the Board.

Jonathan Leslie, who has been an independent Non-executive Director on the Board since 2009, will succeed Mr Sutcliffe as the Senior Independent Director from 1 August 2017.

Brian Beamish, Chairman of Lonmin said "Jim has made a significant and valuable contribution to the Board. His insights, experience and guidance will be missed. I also want to congratulate Jonathan on his appointment as Senior Independent Director. I have no doubt his wealth of experience and knowledge will be beneficial in this new role."

The Company also announces the appointment of Gillian Fairfield as an independent Non-executive Director of the Company, with effect from 1 August 2017.

Ms Fairfield is a leading corporate lawyer with over 20 years' experience in corporate law, cross-border M&A and corporate finance. Ms Fairfield was awarded "Client Partner of the Year" in the British Legal Awards 2016 and was featured in the Legal 500 and cited as a leading practitioner in Chambers on a number of occasions.

Until May 2017, Ms Fairfield was a lawyer at Herbert Smith Freehills LLP for 13 years, of which 9 were as a corporate partner. Herbert Smith Freehills is one of the Company's legal advisers and Ms Fairfield has acted as a relationship partner to the Company. Prior to Herbert Smith Freehills, Ms Fairfield was an associate solicitor at Freshfields LLP for 5 years.

In accordance with the Listing Rules, Lonmin confirms that there are no additional matters that would require disclosure under LR 9.6.13 R (1) to (6). Ms Fairfield does not have any direct beneficial interests in Lonmin ordinary shares of $0.0001 each.

Brian Beamish, Chairman of Lonmin, said: "I am delighted to welcome Gillian to our Board. She brings with her extensive legal, governance and transactional experience and, combined with her knowledge of Lonmin and the mining industry, she will, I am sure, make a vital contribution to the Company and the Board."

-S -

ENQUIRIES

Investors / Analysts:

Lonmin

   Tanya Chikanza (Head of Investor Relations)         +27 11 218 8358 /+44 20 3908 1073 
   Andrew Mari (Investor Relations Manager)            +27 11 218 8420 

Media:

 
       Cardew Group 
        Anthony Cardew / Emma 
        Crawshaw                    +44 207 930 0777 
       Wendy Tlou                 +27 83 358 0049 
 

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 Igneous Complex in South Africa, where more than 70% of known global PGM resources are located.

The Company creates value through mining, refining and marketing PGMs and has a vertically integrated operational structure - from mine to market. 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   9 months   9 months 
                                                                       to 30      to 30      to 30      to 30 
                                                                         Jun        Jun        Jun        Jun 
                                                                        2017       2016       2017       2016 
 -----------  -----------------------  -------------------  -----  ---------  ---------  ---------  --------- 
 Tonnes 
 mined(1)      Marikana                 K3 Shaft              kt         806        661      1 979      1 979 
                Rowland Shaft                     kt                     528        437      1 404      1 245 
    Saffy Shaft                             kt                           580        518      1 571      1 507 
    4B Shaft                                kt                           314        427        996      1 190 
                                                                   --------- 
    Generation 
     2                                      kt                         2 228      2 043      5 949      5 921 
    1B Shaft                                kt                                                              6 
    Hossy Shaft                             kt                           163        187        493        521 
    Newman Shaft                            kt                             0         45         51        290 
    W1 Shaft                                kt                            33         41        105        129 
    East 1 Shaft                            kt                            40         39        115        109 
    East 2 Shaft                            kt                            59         73        191        227 
    East 3 Shaft                            kt                            18         20         57         43 
    Pandora (100%)(2)                       kt                           118        123        347        387 
    Generation 
     1                                      kt                           431        526      1 358      1 711 
    Underground                             kt                         2 659      2 569      7 307      7 632 
    Opencast                                kt                             7                    45         10 
   -------------------  -----------------------------------------  ---------  ---------  ---------  --------- 
                            Total Tonnes 
   Lonmin (100%)             Mined (100%)               kt             2 666      2 569      7 352      7 642 
    % tonnes mined 
     from UG2 reef 
     (100%)                                 %                          72.0%      74.6%      73.4%      75.7% 
   -------------------  -----------------------------------------  ---------  ---------  ---------  --------- 
                            Underground 
   Lonmin (attributable)     & Opencast                 kt             2 606      2 508      7 178      7 448 
 
 Ounces        Lonmin excluding                                          161        157        442        461 
 Mined(3)       Pandora                 Pt Ounces             oz         825        984        571        351 
               Pandora 
                (100%)                  Pt Ounces             oz       7 995      8 597     23 687     26 657 
                                                                   ---------  ---------  ---------  --------- 
                                                                         169        166        466        488 
   Lonmin                   Pt Ounces                   oz               820        581        258        008 
 
   Lonmin excluding                                                      310        303        848        885 
    Pandora                 PGM Ounces                  oz               503        620        639        706 
   Pandora 
    (100%)                  PGM Ounces                  oz            16 037     16 893     47 084     52 318 
                                                                   ---------  ---------  ---------  --------- 
                                                                         326        320        895        938 
   Lonmin                   PGM Ounces                  oz               540        514        723        024 
  -----------------------  -------------------  -----------------  ---------  ---------  ---------  --------- 
 Tonnes        Marikana                 Underground           kt       2 571      2 382      6 881      7 107 
 milled(4)      Opencast                          kt                                  9         49         60 
    Total                                   kt                         2 571      2 391      6 930      7 166 
   Pandora(5)               Underground                 kt               118        123        347        387 
                                                                   ---------  ---------  ---------  --------- 
   Lonmin Platinum          Underground                 kt             2 690      2 505      7 229      7 494 
           Milled head 
              grade(6)                     g/t                          4.58       4.69       4.57       4.61 
      Recovery rate(7)                      %                          86.8%      87.0%      86.8%      86.9% 
    Opencast                                kt                             0          9         49         60 
           Milled head 
              grade(6)                     g/t                             -       3.04       4.42       2.81 
      Recovery rate(7)                      %                           0.0%      83.8%      68.3%      83.9% 
    Total                                   kt                         2 690      2 514      7 278      7 554 
           Milled head 
              grade(6)                     g/t                          4.58       4.68       4.56       4.59 
      Recovery rate(7)                      %                          86.8%      87.0%      86.7%      86.8% 
   -------------------  -----------------------------------------  ---------  ---------  ---------  --------- 
 
 
                                                        3 months   3 months   9 months   9 months 
                                                           to 30      to 30      to 30      to 30 
                                                             Jun        Jun        Jun        Jun 
                                                            2017       2016       2017       2016 
 -----------------  -------------  ------------  ----  ---------  ---------  ---------  --------- 
 Metals-in-                                                  163        155        437        456 
 concentrate(8)      Marikana       Platinum      oz         024        010        695        130 
------------------ 
                                                                                   202        212 
    Palladium                     oz                      75 568     72 516        436        642 
 
    Gold                          oz                       3 998      3 730     10 912     10 953 
    Rhodium                       oz                      23 092     22 302     62 025     65 952 
                                                                                   104        107 
    Ruthenium                     oz                      38 832     36 840        185        831 
    Iridium                       oz                       8 157      7 572     21 692     21 556 
                                                             312        297        838        875 
    Total PGMs                    oz                         670        970        945        063 
    Nickel(9)                     MT                         859        775      2 264      2 280 
    Copper(9)                     MT                         540        477      1 420      1 403 
   ------------  ------------------------------------ 
   Pandora        Platinum               oz                7 995      8 597     23 687     26 657 
    Palladium                     oz                       3 811      4 058     11 206     12 478 
    Gold                          oz                          55         27        167         79 
    Rhodium                       oz                       1 389      1 416      4 021      4 407 
    Ruthenium                     oz                       2 297      2 315      6 617      7 235 
    Iridium                       oz                         489        481      1 385      1 462 
    Total PGMs                    oz                      16 037     16 893     47 084     52 318 
    Nickel(9)                     MT                          15         21         48         79 
    Copper(9)                     MT                           7          8         21         26 
   ------------  ------------------------------------  ---------  ---------  ---------  --------- 
   Concentrate    Platinum               oz                  361      1 039        964      3 304 
   purchases      Palladium              oz                  146        272        310      1 083 
    Gold                          oz                           3          3          5         12 
    Rhodium                       oz                          36        106         95        407 
    Ruthenium                     oz                          64        147        162        620 
    Iridium                       oz                          18         48         43        169 
    Total PGMs                    oz                         629      1 616      1 579      5 596 
    Nickel(9)                     MT                           0          0          1          2 
    Copper(9)                     MT                           0          0          0          1 
   ------------  ------------------------------------  ---------  ---------  ---------  --------- 
   Lonmin                                                    171        164        462        486 
    Platinum      Platinum               oz                  381        647        347        091 
                                                                                   213        226 
    Palladium                     oz                      79 525     76 846        952        204 
    Gold                          oz                       4 056      3 760     11 084     11 044 
    Rhodium                       oz                      24 517     23 825     66 141     70 766 
                                                                                   110        115 
    Ruthenium                     oz                      41 193     39 301        964        686 
    Iridium                       oz                       8 664      8 101     23 120     23 186 
                                                             329        316        887        932 
    Total PGMs                    oz                         336        480        607        977 
    Nickel(9)                     MT                         875        796      2 312      2 360 
    Copper(9)                     MT                         548        485      1 441      1 430 
   ------------  ------------------------------------  ---------  ---------  ---------  --------- 
 
 
                                                              3 months         3 months          9 months          9 months 
                                                                 to 30            to 30             to 30             to 30 
                                                                   Jun              Jun               Jun               Jun 
                                                                  2017             2016              2017              2016 
------------   ------------  ------------  --------  -----------------  ---------------  ----------------  ---------------- 
                Lonmin 
                 refined 
                 Metal                                      179                                479               520 
 Refined         Production   Platinum        oz             158              173302            396               065 
               ------------ 
                                                                                                      221               237 
 Production                     Palladium      oz               88 551           82 590               682               687 
 
    Gold                         oz                              4 776            4 585            12 454            14 113 
    Rhodium                      oz                             29 976           35 085            72 569            88 855 
                                                                                                      113               120 
    Ruthenium                    oz                             44 667           42 268               392               691 
    Iridium                      oz                             10 057           10 404            24 740            30 844 
                                                                   357              348               924             1 012 
    Total PGMs                   oz                                185              233               233               255 
   ------------  ----------------------------------  -----------------  ---------------  ----------------  ---------------- 
   Toll 
    refined 
    metal 
    production   Platinum               oz                       1 164              210             2 187             2 331 
  ------------ 
    Palladium                    oz                                439              100               634               599 
 
    Gold                         oz                                 21                4                29                24 
    Rhodium                      oz                                174               35               251               170 
    Ruthenium                    oz                                553               75               789               640 
    Iridium                      oz                                144               55               172                91 
    Total PGMs                   oz                              2 496              479             4 062             3 856 
   ------------  ----------------------------------  -----------------  ---------------  ----------------  ---------------- 
                Total 
                 refined                                           180              173               481               522 
                 PGMs         Platinum        oz                   323              512               583               396 
               ------------ 
                                                                                                      222               238 
    Palladium                    oz                             88 990           82 690               316               286 
 
    Gold                         oz                              4 797            4 589            12 482            14 137 
    Rhodium                      oz                             30 150           35 120            72 820            89 025 
                                                                                                      114               121 
    Ruthenium                    oz                             45 220           42 343               182               331 
    Iridium                      oz                             10 201           10 459            24 911            30 935 
                                                                   359              348               928             1 016 
    Total PGMs                   oz                                680              712               294               110 
   ------------  ----------------------------------  -----------------  ---------------  ----------------  ---------------- 
   Base metals   Nickel(10)             MT                       1 040              930             2 516             2 673 
    Copper(10)                   MT                                596              519             1 443             1 531 
   ------------  ----------------------------------  -----------------  ---------------  ----------------  ---------------- 
 
                Refined 
                 Metal                                             180              162               487               524 
 Sales           Sales        Platinum        oz                   348              725               343               607 
               ------------ 
                                                                                                      219               239 
    Palladium                    oz                             87 208           77 134               724               879 
 
    Gold                         oz                              4 341            4 200            11 686            14 845 
    Rhodium                      oz                             27 433           28 122            78 430            89 283 
                                                                                                      135               113 
    Ruthenium                    oz                             37 823           31 511               498               605 
    Iridium                      oz                              8 201           11 400            22 530            32 142 
                                                                   345              315               955             1 014 
    Total PGMs                   oz                                354              091               212               360 
   ------------  ----------------------------------  -----------------  ---------------  ----------------  ---------------- 
    Nickel(10)                   MT                              1 011              744             2 739             2 525 
    Copper(10)                   MT                                838              563             1 054             1 641 
                                                                   387              277             1 039             1 030 
    Chrome(10)                   MT                                478              489               133               468 
   ------------  ----------------------------------  -----------------  ---------------  ----------------  ---------------- 
 Average        Platinum                      $/oz                 941            1 005               953               936 
 prices         Palladium                     $/oz                 819              565               763               556 
   Gold                                $/oz                      1 258            1 510             1 226             1 404 
   Rhodium                             $/oz                        971              673               860               684 
   $ basket excl. by-product 
    revenue(11)                        $/oz                        819              760               772               716 
   $ basket incl. by-product 
    revenue(12)                        $/oz                        882              796               828               755 
   R basket excl. by-product 
    revenue(11)                        R/oz                     10 682           11 321            10 329            10 682 
   R basket incl. by-product 
    revenue(12)                        R/oz                     11 506           11 864            11 088            11 242 
  --------------------------  ---------------------  -----------------  ---------------  ----------------  ---------------- 
   Nickel(10)                          $/MT                      7 627            7 215             8 268             7 026 
   Copper(10)                          $/MT                      4 902            4 637             5 017             4 524 
  --------------------------   --------------------  -----------------  ---------------  ----------------  ---------------- 
                Cost of Production 
 Unit Costs      per PGM ounce              ZAR/oz              11 278           10 596            11 770            10 642 
-------------  --------------------------  --------  -----------------  ---------------  ----------------  ---------------- 
 Exchange       Average rate for 
  Rates          period(13)                   R/$                13.19            14.99             13.44             15.00 
------------- 
   Closing 
    rate                                R/$                      13.05            14.72             13.05             14.72 
  --------------------------   --------------------  -----------------  ---------------  ----------------  ---------------- 
 
 
 Notes 
 1       Reporting of shafts are in line with our operating strategy for Generation 1 and 
         Generation 2 shafts. 
 2       Pandora underground tonnes mined represents 100% of the total tonnes mined on the Pandora joint venture of 
          which 42.5% for October and November 2014 and 50% thereafter is attributable to Lonmin. 
 3       Ounces mined have been calculated at achieved concentrator recoveries and with Lonmin 
         standard downstream 
         processing recoveries to present produced saleable ounces. 
 4       Tonnes milled excludes slag milling. 
 5       Lonmin purchases 100% of the ore produced by the Pandora joint venture for onward 
         processing which is included 
         in downstream operating statistics. 
 6       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). 
 7       Recovery rate in the concentrators is the total content produced divided by the total 
         content milled (excluding slag). 
 8       Metals-in-concentrate have been calculated at Lonmin standard downstream processing 
         recoveries to present produced 
         saleable ounces. 
 9       Corresponds to contained base metals in concentrate. 
 10      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. 
 11      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. 
 12      As per note 11 but including revenue from base metals. 
 13      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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(END) Dow Jones Newswires

July 17, 2017 02:00 ET (06:00 GMT)

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