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Lonmin PLC (LMI)

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Friday 24 July, 2015

Lonmin PLC

Q3 2015 Production Report and Business Update

RNS Number : 9661T
Lonmin PLC
24 July 2015
 



 

 

 

REGULATORY RELEASE

 

 

24 July 2015

 

Third Quarter 2015 Production Report and Business Update

 

Lonmin Plc ("Lonmin" or "the Company"), the world's third largest Platinum producer, today announces its production results for the three months to 30 June 2015 (unaudited) and a business update.

 

Operational Overview

 

It is with deep regret that after a record 18 months of fatality free operations, we have to report the fatal injury of our colleague, Mr Sebastiao Cossa, on 19 May at Hossy shaft and we extend our deepest condolences to his family and friends. This underscores the need to remain vigilant in pursuit of Zero Harm.

 

The rolling 12 month average Lost Time Injury Frequency Rate (LTIFR) for the 12 months to 30 June 2015 increased to 5.26 incidents per million man hours compared to 2.76 at 30 June 2014 and 3.61 at 30 June 2013. This is a major area of concern for us and whilst we continue to focus on safety training and rebuilding relationships, improving safety performance is taking longer than desired, despite the high level of attention that this is receiving. We have shared with all the relevant stakeholders specific plans for our shafts to remedy the situation and these are in the process of being implemented. We are also actively reviewing the health and wellness of our employees.

 

It is important to note that there was an industrial strike extending over five months of the prior year period with no significant production in Q3 2014 making year-on-year comparisons inappropriate.

 

Mining operations in the third quarter of 2015 were held back by an increase in the frequency and duration of Section 54 safety stoppages, in particular at K3, our biggest shaft. A total of 2.7 million tonnes was mined in the quarter, 2.4 million tonnes higher than the strike impacted prior year period. Output from the Generation 1 shafts was in line with the management of the depleting shafts.

 

Saleable Platinum metal-in-concentrate at 172,672 ounces was 149,054 higher than the strike impacted prior year. The smelting and refining operations ran at full capacity processing the stock that had built up earlier in the year when the Number One and Two furnaces were down for repairs. We achieved refined Platinum production in the quarter of 241,170 ounces.

 

Sales of 231,778 Platinum ounces were in-line with refined production but the weak price environment continued during the third quarter and Dollar metal prices were significantly weaker than prior year periods.

 

Lonmin Taking Necessary Protective Measures

 

The Board is taking firm action to further reduce Lonmin's cost base in the current pricing environment so that it will be able to sustain a viable operation even if the current metal pricing environment continues for some time. Our objective is both to preserve value for our shareholders, including employees and communities, and put the Company in a position where it can prosper as and when the metal prices improve from the current depressed levels.

 

Lonmin is highly geared to PGM prices. At current metal price levels, the Company is EBITDA negative and our cost minimisation plans are designed to improve this position as much as possible. Since our interim results in May, the platinum price has fallen by 14.4% from $1,126 per ounce at 31 March to $964 at 22 July. Management has worked tirelessly to contain cost increases and we remain confident that we will produce at a unit cost within our cost guidance for the full year which already includes anticipated savings.

 

To safeguard the long-term interests of our shareholders, employees and all key stakeholders the Board has taken the important decision to approve decisive additional actions to reduce high cost production in an oversupplied market by carrying out the orderly closure of Hossy and Newman shafts. This will be achieved by stopping development and capital work. Instead, only the immediately available ore reserves will be utilised, reducing the overall costs of production and enhancing cash generation and profitability. In addition, the Board has decided to put on care and maintenance a number of Generation 1 shafts, some of which are currently managed by contractors, namely W1, E1 and 1B shaft. This will include reducing the associated active concentrator capacity. We are also taking further measures to reduce our overhead and support service structures in-line with the closing of shafts and the resultant reduction in the size of our operations.

 

The consequence of these decisions will be that the remaining shafts will allow for a smaller more sustainable and agile business. We expect normalised annual production over the next two fiscal years to be reduced by some 100,000 platinum ounces. These actions will protect the majority of the workforce but a total of 6,000 employees including contractors are likely to be affected by these closures. This figure includes those who have already applied for the voluntary separation packages we announced in May. It is our intention to achieve this outcome in partnership with our employees, unions and other relevant stakeholders. This morning, we started the formal consultation process around reducing costs in all areas including the reduction of labour, under the Section 189 requirements of the South African labour laws. This consultation process is aimed at identifying all possible measures and alternatives to forced retrenchments, which include redeployments and reskilling, alternative working arrangements, further cost reduction opportunities and, as a last resort, forced retrenchments. This process is further intended, to facilitate these closures and protect the majority of our workforce.

 

Our objective is to save the majority of the positions in the company and create a sustainable business by taking urgent action and maximising liquidity to protect the business. All costs, not just labour costs, have to be reduced and productivity improved if the business is to be sustainable.

 

Financing

 

We are reviewing the appropriate capital structure for the Company in the new pricing environment as we consider the need to re-finance our debt facilities. The Board is considering the full range of options available to secure long term capital and expects to update the market by the time of our full year results in November 2015.

 

Lonmin Chief Executive Ben Magara said:

"Lonmin is defending value for all stakeholders in responding to the platinum pricing crisis by taking swift, decisive even though difficult measures. Losing jobs is not pleasant but everyone is having to take significant short term pain to preserve optionality for the long term. All costs have to be reduced including labour and I hope our formal consultation process will come up with mitigations to minimise job losses.‎"

Third Quarter Production Overview

 

Mining Operations

The Marikana underground mining operations (including Pandora) produced 2.6 million tonnes during the third quarter, an increase of 2.4 million tonnes on the prior year period.

 

Generation 2 shafts

Production from our Generation 2 shafts (K3, Rowland, Saffy, 4B/1B and Hossy) represented 78.0% of total production.

 

·     Rowland, our second largest shaft, increased production by 14.8% on Q3 2013 reflecting the positive impact of management actions and the theory of constraints projects launched at this shaft.

·     Saffy shaft recorded an increase of 33.2% on Q3 2013 demonstrating the continued good progress that we have made with our promised ramp up. Saffy is on course to reach steady state by the end of the year.

·     Production at K3, our biggest shaft, at 604,000 tonnes was 17.1% lower than Q3 2013 driven by an increase in Section 54 safety stoppages.

·     There was a decrease in production from Hossy shaft of 23.0% on Q3 2013 driven by safety shutdowns following the fatality in May 2015, which slowed the momentum that had been established at this shaft. As mentioned above, we are commencing an orderly shutdown of Hossy shaft.

·     4B/1B produced 368,000 tonnes which was 19.6% lower than Q3 2013 due to an increase in Section 54 safety stoppages and geological challenges. Due to adequate immediately available ore reserves at 4B and the flexibility that this provides, 1B shaft can be placed on care and maintenance, saving on shaft fixed costs. We are also implementing theory of constraints measures at 4B shaft, to improve performance.

 

Generation 1 shafts

Production from our Generation 1 shafts (Newman, W1, E1, E2, E3 and Pandora (100%)) was 0.2 million tonnes, or 24.4% lower than Q3 2013 and consistent with our plans.

 

·     Production from Newman shaft decreased by 15.5% on Q3 2013 as planned as this shaft is nearing the end of its life.

·     East 1 shaft, which is reaching end of life, saw a decrease in production of 63.0% on Q3 2013.

·     Production from Pandora (100%) of 110,000 tonnes increased by 94,000 tonnes over the prior year period but decreased by 26.1% on Q3 2013 due to safety shutdowns.

 

We had limited activity at K4 shaft with production of 18,000 tonnes.

 

Production from our depleting Merensky opencast operations of 63,000 tonnes was 16,000 tonnes, or 19.9% lower than the prior year period as the operation reaches the end of its life.

 

A total of 301,000 tonnes of production were lost in the quarter mainly due to safety stoppages particularly at K3 and Hossy shafts. In the prior year period 3,111,000 tonnes were lost due to the protected wage strike. In comparison to Q3 2013 this is an increase in tonnes lost of 67,000 tonnes. We continue to focus on safety, training and rebuilding relationships through visible felt leadership, direct employee engagement and lessons learnt from the accidents.

 


Q3 2015
tonnes

Q3 2014
tonnes

Q3 2013
tonnes

Section 54 safety stoppages

260,000

-

111,000

Management induced safety stoppages

30,000

-

-

Industrial action

10,000

3,111,000

123,000

Total tonnes lost

301,000

3,111,000

234,000

 



 

Process Operations

Total tonnes milled in the quarter of 2.8 million tonnes were 2.4 million tonnes higher than the prior year period. We continue to utilise six out of our seven Marikana concentrators as part of our measures to reduce costs demonstrating our ability to scale our operations as required.

 

Underground milled head grade at 4.42 grammes per tonne (5PGE+Au) was 8.9% higher than the prior year period of 4.06 grammes per tonne due to improved ore mix compared to the prior year period. The overall milled head grade at 4.40 grammes per tonne, was up 12.1% on the prior year period due to the increase in underground head grade combined with the decrease in opencast ore in the mix.

 

Concentrator recoveries for the quarter continue to be industry leading at 86.7%.

 

Total Platinum metal-in-concentrate for the quarter at 172,672 saleable ounces was 149,054 ounces higher than the prior year period.

 

Our furnaces are operating at normal production levels and we expect to process the build-up of concentrate by the end of Q4 2015 as announced at our Interim Results in May 2015. The planned shut-down of the Number Two furnace for scheduled refractory brick replacement and design upgrades on the roof and off-gas system has been moved from Q4 2015 to Q1 2016. This is in line with the assessed condition of the furnace and will allow more time for further design work and procurement of materials and to provide processing flexibility during (the ongoing) electricity constraints arising from Eskom load shedding.

 

Total refined Platinum production for the quarter of 241,170 ounces was 204,915 ounces higher than the prior year period and 129,997 ounces higher than Q3 2013. This was the highest volume refined in a single quarter since Q4 2013 and demonstrates the benefit of our excess smelting capacity and ability to process stock build-ups efficiently. Total PGMs produced in the quarter were 450,885 ounces, an increase of 368,370 on the prior year period.

 

Sales & Pricing

Platinum sales for the quarter of 231,778 ounces were in-line with refined production and on schedule. This was an increase of 206,039 ounces on the prior year period. PGM sales of 437,160 ounces were up 357,469 ounces. The remaining build-up of concentrate stock ahead of the smelters is anticipated to unwind in Q4 as we have the processing capacity to refine the accumulated material.

 

The weak price environment continued during the third quarter. The Platinum US Dollar price decreased by 23.2% on the prior year period. The Rand basket price of R10,861 per ounce was 12.0% higher than the prior year period impacted by the Rand weakness as the average Rand to Dollar exchange rate was 14.9% weaker at 12.08 compared to 10.51.

 

Nine Month Production Overview

 

Our mining and milling performance in the nine months of the 2015 financial year increased significantly on the prior year period which was impacted by the five month strike.

 

Mining Operations

 

Total tonnes mined during the first nine months of 8.3 million, showed an increase of 4.7 million when compared to the strike impacted prior year period. In comparison to Q3 YTD 2013, tonnes mined were 5.3% lower due to a decrease in production from our Generation 1 shafts in end of lifecycle management (down 15.9%) and the depleting opencast operations (down 58.8%). Production from our Generation 2 shafts was up 0.6% on Q3 YTD 2013 as the ramp-up at Saffy (up 48.4%) and improvements at Rowland (up 9.4%) off-set the impact of increased Section 54 safety shut-downs at K3 and Hossy shafts.

 

Saffy shaft produced 1,264,000 tonnes in the period compared with 436,000 tonnes in the prior year period and up 48.4% on Q3 YTD 2013, showing the good progress we have made in ramping up Saffy to steady state.

 

Hossy shaft produced 729,000 tonnes in the period compared with 313,000 tonnes in the prior year period and down 2.1% on Q3 YTD 2013. Following the fatality at this shaft in May 2015, safety shut downs were instigated resulting in the loss of 57,000 tonnes.

 

Production from our Merensky opencast operations of 171,000 tonnes was 26.8% lower than the prior year period as planned as this operation is nearing the end of its life. Production in the prior period continued during the strike as this operation is operated by contractors.

 

Pandora (100%) production of 420,000 increased by 248,000 tonnes on the prior year period. This was an increase of 2.1% on Q3 YTD 2013 as the mining footprint of this shaft was extended by another two levels.

 

Tonnes lost mainly due to increased Section 54 safety stoppages and management induced safety stoppages at 0.6 million tonnes were lower than the prior year period but were 0.1 million tonnes higher than Q3 YTD 2013. In total, 602,000 tonnes were lost during the nine month period, of which 489,000 tonnes related to Section 54 safety stoppages, 86,000 tonnes to management induced safety stoppages (MISS). This compares to a total of 5,917,000 tonnes lost in the prior year period of which 5,703,000 were lost due to industrial action, 191,000 tonnes were due to Section 54 safety stoppages and 23,000 tonnes were due to MISS.

 


9 months to 30 June


2015
tonnes

2014
tonnes

 2013
tonnes

Section 54 safety stoppages

489,000

191,000

213,000

Management induced safety stoppages

86,000

23,000

40,000

Industrial action (5 months)

27,000

5,703,000

201,000

Total tonnes lost

602,000

5,917,000

454,000

 

Process Operations

 

Concentrators

Total tonnes milled in the nine month period at 8.8 million tonnes were the highest since 2012 emphasizing our good operational management team. This was 5.1 million tonnes higher than the prior year period as the concentrating operations were also impacted by the strike action and shut down from 23 January 2014. Compared to the nine months to June 2013 tonnes milled were up 1.8% in-line with our continuous improvement efforts. The impact on tonnes milled due to load shedding was a reduction of 73,000 tonnes.

 

Underground milled head grade was 4.52 grammes per tonne, broadly in-line with the prior year period. Overall the milled head grade was 4.48 grammes per tonne, up 0.8% on the prior year period due to the decrease in lower grade opencast ore in the mix.

 

Underground and overall concentrator recoveries for the nine months at 86.9% continue to be industry leading.

 

Total Platinum metal-in-concentrate for the period under review at 554,657 saleable ounces was the highest since 2012.

 

Smelters and Refineries

As reported at the half year, our furnaces are up and running and we achieved total refined production for the nine month period of 503,473 ounces of saleable Platinum, 71.6% higher than Q3 YTD 2014 and 15.1% higher than Q3 YTD 2013. PGMs produced in the period were 952,341 ounces, 13.0% higher than Q3 YTD 2013.

 

Platinum sales for the nine months were 497,719 ounces and 951,907 PGM ounces.

 

Whilst the Platinum price decreased by 17.9% on the prior year period, the US dollar basket price (including base metal revenue) fell by 8.5% to $950 per ounce. This was due to the unusual mix of metals sold in the strike impacted prior year period. The corresponding Rand basket price of R11,079 per ounce was 1.9% higher than the prior year period impacted by the Rand weakness as the average Rand to Dollar exchange rate was 11.5% weaker at 11.68 compared to 10.48.

 

Update on progress with Value Benefits programme - Labour Reduction

 

We opened a Voluntary Separation Package programme for employees as part of the 3,500 headcount reduction we announced in May. We received 4,524 enquiries through our help desk and 2,299 employees applied. To date we have approved 1,355 applications and these are scheduled to exit the organisation by the end of July generating cost savings of around R325million per annum going forward. Additional exits are being synchronised with redeployments. We will now enter the further consultation process in accordance with the South African labour regulatory requirements.

 

Release of the findings of the Farlam Commission of Inquiry

 

On 25 June 2015, President Jacob Zuma released the report of the Farlam Commission of Inquiry, chaired by retired Judge Farlam, into the tragic events at Marikana in August 2012. Lonmin acknowledged the publication of the findings of the Commission, to which the Company had given its full support. The Company has given the report its detailed consideration and will continue to do so, and has taken full account of the recommendations applicable to Lonmin. Lonmin hopes that all stakeholders take lessons from the tragic events to ensure that such a tragedy does not happen again in South Africa.

 

Much work has been undertaken over the past three years to build a more open, transparent and mutually trusting environment within the Company and to make Lonmin a safer, better place to work. Particular emphasis has been placed on living conditions and employee indebtedness and much work has been done in this regard. This is in addition to the assistance rendered to the widows and children of the employees who died during that tragic week in August 2012.

 

The full report and Lonmin's responses are available at: http://www.lonmin‐farlam.com.  Further updates will be made over time.

 

FTSE4Good Index Series

 

Lonmin is pleased to confirm that it has been made a constituent of the FTSE4Good Index Series following the June 2015 review of our strong environmental, social and governance practices.

 

Guidance

 

The fourth quarter production has started well and absent any material Section 54 safety stoppages we expect to achieve our Platinum saleable metal-in-concentrate of 750,000 platinum ounces and sales guidance of 730,000 platinum ounces for the year. We are pleased with the cost savings achieved during this period and whilst the increase in safety stoppages has impacted productivity and costs we will maintain our unit cost guidance of R10, 800 per PGM ounce for the full year.

 

- ENDS -



 

ENQUIRIES

 

Investors / Analysts:

Lonmin

Tanya Chikanza (Head of Investor Relations)

+44 207 201 6007 / +27 11 218 8358

 

Media:

Cardew Group

Anthony Cardew

 

+44 207 930 0777

Sue Vey

+27 60 523 7953

 

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 nearly 80% of known global PGM resources are located.

 

The Company creates value for shareholders 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

9 months






to 30 June

to 30 June


to 30 June

to 30 June

to 30 June






2015

2014


2015

2014

2013

Tonnes mined1

 

 

  

Generation 2

 

 

 

K3 shaft

kt


604

35


1,940

806

2,250

Rowland shaft

kt


475

3


1,401

556

1,281

Saffy shaft

kt


433

48


1,264

436

851

4B/1B shaft

kt


368

8


1,190

488

1,356


Hossy shaft

kt


195

18


729

313

745



Generation 2

kt


2,076

112


6,524

2,598

6,483


 Generation 1

Newman shaft

kt


192

2


592

241

704


W1 shaft

kt


45

14


134

68

120



East 1 shaft

kt


37

15


111

72

300



East 2 shaft

kt


99

57


293

192

298



East 3 shaft

kt


19

5


51

17

71



Pandora (100%)2

kt


110

16


420

172

411



Generation 1

kt


503

110


1,601

762

1,904



K4 shaft

kt


18

-


41

-

4



Total Underground

kt


2,597

222


8,166

3,360

8,391



Opencast

kt


63

78


171

233

411



Total underground & opencast

kt


2,659

301


8,336

3,593

8,805


Limpopo3

Underground

kt


-

(3)


-

6

-


Lonmin (100%)

Total tonnes mined (100%)

kt


2,659

298


8,336

3,599

8,805



% mined from UG2 reef (100%)

%


74.0%

70.7%


75.5%

74.1%

73.7%


Lonmin (attributable)

Underground & opencast

kt


2,604

289


8,117

3,500

8,569

Ounces mined4

Lonmin excl. Pandora

Platinum

oz


154,040

15,435


492,585

214,319

525,606


Pandora (100%)

Platinum

oz


7,164

724


28,279

12,097

29,678


Limpopo

Platinum

oz


-

(104)


-

255

-


Lonmin

Platinum

oz


161,204

16,055


520,864

226,671

555,283


Lonmin excl. Pandora

PGMs

oz


295,889

29,190


944,707

409,746

979,193


Pandora (100%)

PGMs

oz


14,162

1,416


55,774

23,782

56,707


Limpopo

PGMs

oz


-

(232)


-

572

-


Lonmin

PGMs

oz


310,051

30,374


1,000,481

434,100

1,035,900

Tonnes milled5

 

 

 

 

 

Marikana

Underground

kt


2,642

287


8,127

3,269

7,944


Opencast

kt


59

97


266

306

319


Total

kt


2,701

383


8,393

3,574

8,263

Pandora6

Underground

kt


110

21


438

172

414

Limpopo7

Underground

kt


-

-


-

27

-

Lonmin Platinum

Underground

kt


2,752

307


8,565

3,468

8,358


Lonmin Platinum

Head grade8

g/t


4.42

4.06


4.52

4.55

4.62


Recovery rate9

%


86.7%

82.1%


86.9%

87.4%

86.8%



Opencast

kt


59

97


266

305

319



Head grade8

g/t


3.12

3.47


3.08

3.22

2.92



Recovery rate9

%


85.0%

84.2%


85.2%

84.3%

85.4%



Total

kt


2,811

404


8,831

3,773

8,677



Head grade8

g/t


4.40

3.92


4.48

4.44

4.56


Recovery rate9

%


86.7%

82.5%


86.9%

87.2%

86.7%

 



 

 

 



3 months

3 months

9 months

9 months

9 months


to 30 June

to 30 June

to 30 June

to 30 June

to 30 June


2015

2014

2015

2014

2013

Metals-in-concentrate10

Marikana

Platinum

oz


163,840

21,053


520,366

222,419

519,681


Palladium

oz


76,956

9,649


241,143

103,085

236,676


Gold

oz


3,818

923


12,232

5,817

13,165


Rhodium

oz


23,729

2,295


76,595

31,330

69,592


Ruthenium

oz


39,266

3,936


124,656

50,969

105,975


Iridium

oz


7,800

809


24,327

10,480

24,258


Total PGMs

oz


315,410

38,664


999,319

424,098

969,347


Nickel11

MT


829

199


2,618

1,239

2,700

Copper11

MT


515

121


1,620

788

1,691

Limpopo

Platinum

oz


-

-


-

1,121

-


Palladium

oz


-

-


-

974

-


Gold

oz


-

-


-

93

-


Rhodium

oz


-

-


-

114

-


Ruthenium

oz


-

-


-

161

-


Iridium

oz


-

-


-

44

-


Total PGMs

oz


-

-


-

2,508

-


Nickel11

MT


-

-


-

27

-


Copper11

MT


-

-


-

19

-

Pandora

Platinum

oz


7,164

868


29,375

11,857

29,904


Palladium

oz


3,373

396


13,671

5,599

13,845


Gold

oz


20

3


101

77

229


Rhodium

oz


1,192

142


5,010

2,009

4,751


Ruthenium

oz


2,024

234


8,212

3,209

7,097


Iridium

oz


389

40


1,563

528

1,294


Total PGMs

oz


14,162

1,685


57,932

23,279

57,119


Nickel11

MT


16

1


63

21

70


Copper11

MT


7

1


28

12

29

Concentrate

Platinum

oz


1,667

1,696


4,916

3,338

2,930

purchases

Palladium

oz


496

460


1,493

941

860


Gold

oz


4

6


15

15

10


Rhodium

oz


228

207


642

405

313


Ruthenium

oz


294

212


839

424

323


Iridium

oz


92

85


261

176

127


Total PGMs

oz


2,783

2,666


8,166

5,300

4,562


Nickel11

MT


1

1


2

1

1


Copper11

MT


1

-


2

1

1

Lonmin Platinum

Platinum

oz


172,672

23,618


554,657

238,735

552,515

Palladium

oz


80,825

10,504


256,307

110,600

251,381


Gold

oz


3,843

933


12,348

6,002

13,404


Rhodium

oz


25,149

2,644


82,248

33,858

74,656


Ruthenium

oz


41,584

4,382


133,707

54,762

113,394


Iridium

oz


8,282

934


26,151

11,229

25,679


Total PGMs

oz


332,355

43,015


1,065,417

455,185

1,031,029


Nickel11

MT


846

201


2,684

1,288

2,772


Copper11

MT


523

122


1,650

821

1,721

 



 


3 months

3 months

9 months

9 months

9 months


to 30 June

to 30 June

to 30 June

to 30 June

to 30 June


2015

2014

2015

2014

2013

Refined production

Lonmin refined metal production 

Platinum

oz


241,170

34,319


502,977

290,984

435,893

Palladium

oz


111,938

15,309


232,018

143,592

196,937


Gold

oz


5,628

1,501


12,298

7,861

11,595


Rhodium

oz


25,317

6,852


62,216

69,805

57,473


Ruthenium

oz


61,388

9,724


122,310

71,711

109,070


Iridium

oz


5,300

8,174


17,203

26,991

21,782



Total PGMs

oz


450,742

75,879


949,021

610,944

832,749


Toll refined metal production 

Platinum

oz


-

1,936


496

2,488

1,364


Palladium

oz


-

513


186

1,523

662


Gold

oz


-

27


9

100

286


Rhodium

oz


35

443


61

1,339

1,837


Ruthenium

oz


79

2,935


2,024

7,417

5,185


Iridium

oz


30

782


543

1,884

913


Total PGMs

oz


144

6,637


3,320

14,751

10,247


Total refined PGMs

Platinum

oz


241,170

36,255


503,473

293,472

437,257


Palladium

oz


111,938

15,822


232,204

145,115

197,599


Gold

oz


5,628

1,528


12,307

7,961

11,882


Rhodium

oz


25,353

7,296


62,277

71,144

59,310


Ruthenium

oz


61,467

12,659


124,334

79,128

114,256


Iridium

oz


5,330

8,956


17,746

28,874

22,694


Total PGMs

oz


450,885

82,515


952,341

625,694

842,997


Base metals

Nickel12

MT


1,200

218


2,557

1,530

2,309


Copper12

MT


710

106


1,495

871

1,392

Sales

Refined metal sales

Platinum

oz


231,778

25,740


497,719

289,414

407,523


Palladium

oz


108,745

10,879


232,993

147,452

190,079


Gold

oz


4,560

-


11,610

6,500

12,537


Rhodium

oz


26,369

19,027


57,558

73,020

52,517


Ruthenium

oz


61,207

16,471


134,807

83,300

99,655


Iridium

oz


4,500

7,575


17,220

27,418

20,441


Total PGMs

oz


437,160

79,691


951,907

627,104

782,752



Nickel12

MT


775

75


2,276

1,413

2,339



Copper12

MT


402

-


1,186

804

1,285



Chrome12

MT


350,839

-


1,118,252

505,101

1,010,401

Average prices

Platinum 

$/oz


1,114

1,451


1,153

1,405

1,568

Palladium 

$/oz


756

825


771

742

713

Gold 

$/oz


1,468

-


1,494

1,510

1,523

Rhodium 

$/oz


1,036

1,083


1,116

1,024

1,155

Ruthenium 

$/oz


43

64


48

56

76

Iridium 

$/oz


556

575


547

514

989

$ basket excl. by-product revenue13

$/oz


869

908


894

988

1,127

$ basket incl. by-product revenue14

$/oz


907

923


950

1,039

1,206

R basket excl. by-product revenue13

R/oz


10,408

9,535


10,430

10,340

10,113

R basket incl. by-product revenue14

R/oz


10,861

9,694


11,079

10,877

10,788

Nickel12

$/MT


11,071

14,522


11,857

11,729

13,587

Copper12

$/MT


6,049

-


6,072

6,890

7,301

  

Chrome12

$/MT


16

-


17

19

20

Exchange rates 

Average rate for period15

R/$


12.08

10.51


11.68

10.48

 9.01



Closing rate

R/$


12.16

10.64


12.16

10.64

 9.83

 



 

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    Limpopo underground tonnes mined represents low grade development tonnes mined whilst on care and maintenance.

4    Ounces mined have been calculated at achieved concentrator recoveries and with Lonmin standard downstream processing recoveries to present produced saleable ounces.

5    Tonnes milled excludes slag milling.

6    Lonmin purchases 100% of the ore produced by the Pandora joint venture for onward processing which is included in downstream operating statistics.    

7    Limpopo tonnes milled represents low grade development tonnes milled.

8    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).

9    Recovery rate in the concentrators is the total content produced divided by the total content milled (excluding slag).

10  Metals-in-concentrate have been calculated at Lonmin standard downstream processing recoveries to present produced saleable ounces.

11  Corresponds to contained base metals-in-concentrate.

12  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.

13  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.

14  As per note 13 but including revenue from base metals.

15  Exchange rates are calculated using the market average daily closing rate over the course of the period.

 

 


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