Johannesburg, South Africa — 25 July 2013 – Lonmin plc, the world’s third-largest platinum producer, has met expectations with an 8% dip in third-quarter production bruised by strike disruptions, but said it was on track to meet its full-year guidance.
The company reported overall production of 186,456oz of platinum metal in concentrate in the quarter ended 30 June 2013 “’ down from 202,851oz for this period a year ago, reports Fin24. For the nine months to June, Lonmin produced 552,515oz of platinum metal in concentrate and achieved sales of 407,523 ounces.
The company said the operational performance in the third quarter continued to exceed its renewal plan despite momentum being hampered by an increase in safety stoppages and intermittent labour disruptions.
As a consequence, 2.9Mt were mined during the quarter, down 3.6% from the corresponding period in 2012 but an increase of 4.1% on the second quarter of 2013.
On July 1, Lonmin said repairs to its Number Two furnace had been completed as planned and that both furnaces were now operating normally.
“The cumulative results for the nine months to 30 June 2013, together with the successful restart of the furnaces, give us confidence to maintain our platinum metal in concentrate guidance,” the company said.
“Although our operations continue to exceed our renewal plan, we remain alert to the risks to production associated with safety stoppages and the uncertain labour relations landscape,” it added.
“We maintain our platinum metals in concentrate guidance of in excess of 700,000oz and our sales guidance of 660,000oz. Unit cost guidance remains below 8% and capex guidance of US$175 million is maintained,” said the company.
Source: Fin24. For more information, click here.