HomeInternationalLonmin sales rise 30%

Lonmin sales rise 30%

Silos and headgear
at Lonmin’s Marikana
London, England — MININGREVIEW.COM — 23 April 2009 – Lonmin Plc – the world’s third-biggest platinum producer – has posted a 30% increase in sales in the first three months of 2009, and has completed a US575 million (R5.2 billion) debt refinancing package.

Releasing its production report for the second quarter of its 2009 financial year, the London-listed company revealed that it had sold 185 651 ounces of refined platinum in the three months to end-March – up 30 p% above the 143 352 ounces in the same period last year. It added that the debt refinancing had significantly lengthened the tenure of the company’s banking facilities.

The report said that total tonnes mined for the second quarter of the 2009 financial year had been 2.7 million, an 8% decline year-on-year. This was due to the planned closures of the Marikana opencast operations and the Baobab shaft at Limpopo.

“Our underground Marikana mining operations produced 2.6 million tonnes during the second quarter, a 7% increase from the same period last year, when production was impacted by the Eskom power outage in January 2008,” it added.

Refined production for the second quarter was 185 284 ounces of platinum and 362 326 ounces of total PGMs – increases of 45% and 41% respectively from the second quarter of the 2008 financial year. Furthermore, the Process Division had delivered an excellent performance during the second quarter and, ahead of our expectations, it had processed the vast majority of the inventory built up during the planned re-build of the Number One furnace.

“We maintain our sales guidance for the 2009 financial year of around 700,000 Platinum ounces,” the report continued.

For the second half of the 2009 financial year, management will be focused on minimising the possible disruption resulting from the execution of the company’s significant restructuring programme,” the report said.

“We have now essentially completed a major restructuring exercise at our Marikana and Limpopo operations. Further details, including expected annual cost savings and one-off costs, will be disclosed at our Interim Results on 11 May 2009,” the report concluded.