 | | | Published : January 29th, 2009 | Q1 2009 Production Report and Interim Management Statement |
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Lonmin Q1 2009
Production Report and Interim Management Statemento;?
Lonmin
Plc ("Lonmin" or the "Company") today announces its
production report and Interim Management Statement for
the quarter to 31 December 2008 (unaudited).
Our core underground mining
operations at
Marikana produced 2.7 million tonnes during the first
quarter of 2009, 8% ahead of the same period in 2008, an
encouraging indicator. As a result of management action, absenteeism levels during
the Christmas break was much improved on the prior year. Our safety
performance remains excellent, with a 20% improvement in
LTIFR compared to the 2008 financial
year. The re-calibration of Saffy shaft towards
hybrid mining is progressing in line with
our initial plans. Our continuing focus
on increasing underground development at Marikana is beginning
to show signs of improvement, with current monthly haulage and reef
development metres running ahead of monthly averages over the past two years.
Total tonnes mined however were flat on
the same period in 2008 at 3.1 million. This was as a consequence
of the previously announced winding down of our opencast
operations at Marikana, which were closed as planned on 31 December 2008.
In addition, production from our Limpopo Baobab shaft was impacted by
a 21 day strike and by disruption caused by the
ongoing consultations relating to our restructuring plans
for this shaft.
The concentrators produced a total
of 173,232 saleable ounces of Platinum in concentrate for the
quarter, a 9% decrease from the first quarter of
2008. This decline was mainly a result of our tonnes
mined broadly matching our tonnes milled during the period, compared to
the first quarter of 2008, when tonnes milled materially exceeded tonnes mined.
As a result, tonnes milled were down 10.6% on the same quarter last
year. This arose from the milling of low
grade opencast stockpiles in the first quarter of 2008, but also as a
result of undertaking maintenance on some of our Marikana
concentrators in the first quarter of 2009, whilst the Number
One furnace at our Smelter was down.
Overall head grade was up 2% at 4.48 g/t. However,
underground head grade fell 6% to 4..46 g/t due to a number of factors,
specifically an increased percentage of development ore coming from Hossy and
Saffy and unplanned dilution on the UG2 reef horizon, as well as a lack of
flexibility in face availability on the Merensky reef horizon. Management
actions will address the latter two issues over the coming months.
Refined production for the first quarter of 2009 was
132,935 ounces of Platinum and 243,818 ounces of total PGMs, a decrease of 14%
and 12% respectively from the first quarter of 2008. This was primarily the
result of an anticipated build up in metals in process ahead of the Smelter
during the planned rebuild of the Number One furnace and the lower level of
metals in concentrate produced, referred to above. The re-design programme was
successfully completed, with the furnace tapping matte again on 13 January
2009. The Merensky furnace has now been taken out of service and will be on
care and maintenance. Both the Precious Metal and Base Metal Refineries
performed well during the quarter.
As we reported at our Final Results on 18 November
2008, we initiated restructuring programmes during the quarter at our Marikana
and Limpopo operations, and we remain in consultation with our representative
unions. An update on these programmes will be given at our Interim Results on
11 May 2009.
The PGM pricing environment during the first
quarter of the 2009 financial year remained challenging and
the short term outlook for PGM pricing continues to
be difficult to predict. However, we remain committed to our sales
and cost guidance for the 2009 financial year, which we gave at our
Final Results on 18 November 2008.
Enquiries:
Investors / Analysts:
Rob
Gurner
Tel: +44 (0) 207
201 6050
Head of Investor Relations
Media:
Anthony Cardew / Rupert Pittman Tel:
+44 (0) 207 930 0777
Cardew Group
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3 months
to 31st December
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3 months
to 31st December
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2008
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2007
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Tonnes mined
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Marikana
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Underground - conventional
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000
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2,304
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2,174
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Underground - M&A1
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000
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370
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300
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Underground - total
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000
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2,674
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2,474
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Opencast
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000
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216
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369
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Total
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000
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2,890
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2,844
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Limpopo
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Underground
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000
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87
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138
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Opencast
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000
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0
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0
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Total
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000
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87
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138
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Pandora attributable2
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Underground
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000
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34
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34
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Opencast
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000
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68
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47
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Total
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000
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103
|
81
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Lonmin Platinum
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Underground
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000
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2,796
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2,647
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Opencast
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000
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285
|
416
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Total
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000
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3,080
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3,063
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Tonnes milled3
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Marikana
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Underground
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000
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2,662
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2,509
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Opencast
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000
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116
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563
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Total
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000
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2,778
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3,072
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Limpopo
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Underground
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000
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92
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129
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Opencast
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000
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0
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0
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Total
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000
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92
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129
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Pandora4
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Underground
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000
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80
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80
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Opencast
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000
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124
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128
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Total
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000
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205
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209
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Ore purchases5
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Underground
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000
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0
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0
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Opencast
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000
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0
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30
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Total
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000
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0
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30
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Lonmin Platinum
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Underground
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000
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2,835
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2,719
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Head grade6
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g/t
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4..46
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4.76
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Recovery rate7
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%
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80.2%
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81.5%
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Opencast
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000
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240
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721
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Head grade6
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g/t
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4.74
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3.05
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Recovery rate7
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%
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69.9%
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57.5%
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Total
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000
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3,075
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3,440
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Head grade6
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g/t
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4.48
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4.40
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Recovery rate7
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%
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79.4%
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78.0%
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3 months
to 31st December
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3 months
to 31st December
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2008
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2007
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Metals in concentrate8
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Marikana
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Platinum
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oz
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157,450
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172,129
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Palladium
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oz
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72,825
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78,660
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Gold
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oz
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3,613
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4,672
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Rhodium
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oz
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21,809
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23,236
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Ruthenium
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oz
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33,836
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35,851
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Iridium
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oz
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7,410
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7,372
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Total PGMs
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oz
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296,944
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321,920
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Nickel9
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MT
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679
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809
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Copper9
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MT
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421
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493
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Limpopo
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Platinum
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oz
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3,770
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5,528
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Palladium
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oz
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3,331
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3,874
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Gold
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oz
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243
|
407
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Rhodium
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oz
|
487
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537
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Ruthenium
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oz
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688
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804
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Iridium
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oz
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159
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158
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Total PGMs
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oz
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8,679
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11,308
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Nickel9
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MT
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76
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108
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Copper9
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MT
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54
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73
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Pandora4
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Platinum
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oz
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12,013
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11,126
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Palladium
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oz
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5,406
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5,074
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Gold
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oz
|
93
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84
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|
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Rhodium
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oz
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1,657
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1,516
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Ruthenium
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oz
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2,427
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2,263
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Iridium
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oz
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456
|
376
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Total PGMs
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oz
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22,051
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20,438
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Nickel9
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MT
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12
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15
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Copper9
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MT
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7
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6
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Ore purchases5
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Platinum
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oz
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0
|
832
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Palladium
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oz
|
0
|
934
|
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Gold
|
oz
|
0
|
88
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|
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Rhodium
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oz
|
0
|
58
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Ruthenium
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oz
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0
|
50
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Iridium
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oz
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0
|
15
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Total PGMs
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oz
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0
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1,976
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Nickel9
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MT
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0
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12
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|
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Copper9
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MT
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0
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9
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Lonmin Platinum
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Platinum
|
oz
|
173,232
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189,615
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Palladium
|
oz
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81,563
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88,542
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Gold
|
oz
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3,949
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5,250
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Rhodium
|
oz
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23,953
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25,347
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Ruthenium
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oz
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36,952
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38,968
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Iridium
|
oz
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8,025
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7,921
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Total PGMs
|
oz
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327,674
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355,643
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|
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Nickel9
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MT
|
767
|
943
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Copper9
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MT
|
481
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581
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|
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|
|
|
|
3 months
to 31st December
|
3 months
to31st December
|
|
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|
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2008
|
2007
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Metallurgy
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Lonmin refined
Metal
Production
|
Platinum
|
oz
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132,935
|
154,526
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|
|
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Palladium
|
oz
|
60,756
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62,185
|
|
|
|
Gold
|
oz
|
3,496
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3,521
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|
|
|
Rhodium
|
oz
|
18,749
|
21,258
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|
|
|
Ruthenium
|
oz
|
25,338
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31,531
|
|
|
|
Iridium
|
oz
|
2,544
|
5,292
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|
|
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Total PGMs
|
oz
|
243,818
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278,312
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Toll refined
Metal
production
|
Platinum
|
oz
|
0
|
0
|
|
|
|
Palladium
|
oz
|
0
|
0
|
|
|
|
Gold
|
oz
|
0
|
0
|
|
|
|
Rhodium
|
oz
|
0
|
0
|
|
|
|
Ruthenium
|
oz
|
0
|
0
|
|
|
|
Iridium
|
oz
|
0
|
0
|
|
|
|
Total PGMs
|
oz
|
0
|
0
|
|
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|
Total
refined
PGMs
|
Platinum
|
oz
|
132,935
|
154,526
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|
|
|
Palladium
|
oz
|
60,756
|
62,185
|
|
|
|
Gold
|
oz
|
3,496
|
3,521
|
|
|
|
Rhodium
|
oz
|
18,749
|
21,258
|
|
|
|
Ruthenium
|
oz
|
25,338
|
31,531
|
|
|
|
Iridium
|
oz
|
2,544
|
5,292
|
|
|
|
Total PGMs
|
oz
|
243,818
|
278,312
|
|
|
|
Base metals
|
Nickel10
|
MT
|
764
|
815
|
|
|
|
|
Copper10
|
MT
|
499
|
509
|
|
|
|
|
|
|
|
|
|
Sales
|
Refined
Metal
Sales
|
Platinum
|
oz
|
126,202
|
143,855
|
|
Palladium
|
oz
|
53,345
|
63,329
|
|
Gold
|
oz
|
3,379
|
4,292
|
|
Rhodium
|
oz
|
17,102
|
21,719
|
|
Ruthenium
|
oz
|
25,668
|
32,567
|
|
Iridium
|
oz
|
3,108
|
5,633
|
|
Total PGMs
|
oz
|
228,805
|
271,394
|
|
Concentrate and other11
|
Platinum
|
oz
|
0
|
1,756
|
|
Palladium
|
oz
|
0
|
738
|
|
Gold
|
oz
|
0
|
41
|
|
Rhodium
|
oz
|
0
|
224
|
|
Ruthenium
|
oz
|
0
|
362
|
|
Iridium
|
oz
|
0
|
102
|
|
Total PGMs
|
oz
|
0
|
3,224
|
|
Lonmin Platinum
|
Platinum
|
oz
|
126,202
|
145,611
|
|
Palladium
|
oz
|
53,345
|
64,067
|
|
|
Gold
|
oz
|
3,379
|
4,333
|
|
|
Rhodium
|
oz
|
17,102
|
21,943
|
|
|
Ruthenium
|
oz
|
25,668
|
32,929
|
|
|
Iridium
|
oz
|
3,108
|
5,735
|
|
|
Total PGMs
|
oz
|
228,805
|
274,619
|
|
|
Nickel10
|
MT
|
676
|
802
|
|
|
Copper10
|
MT
|
403
|
429
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 months
to 31st December
|
3 months
to 31st December
|
|
|
|
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|
2008
|
2007
|
|
Prices
|
Average
|
Platinum
|
$/oz
|
882
|
1,425
|
|
|
Palladium
|
$/oz
|
187
|
356
|
|
|
Gold
|
$/oz
|
819
|
790
|
|
|
Rhodium
|
$/oz
|
2,347
|
6,374
|
|
|
Ruthenium
|
$/oz
|
248
|
487
|
|
|
Iridium
|
$/oz
|
421
|
421
|
|
|
Basket price of PGMs12
|
$/oz
|
751
|
1,427
|
|
|
Nickel10
|
$/MT
|
15,143
|
29,221
|
|
|
Copper10
|
$/MT
|
4,950
|
5,966
|
|
|
|
|
|
|
|
|
|
Exchange
Rates
|
Average rate for period
|
R/$
|
9.93
|
6.78
|
|
Closing rate
|
|
R/$
|
9.45
|
6.85
|
|
|
|
|
|
|
|
|
|
Notes:
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1
|
M&A comprises ore produced by our fully
mechanised shafts and from Saffy shaft, which is being transitioned to
hybrid mining.
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2
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JV attributable tonnes mined includes Lonmin's
share (42.5%) of the total tonnes mined on the Pandora joint venture.
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3
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Tonnes milled excludes slag milling.
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4
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Lonmin purchases 100% of the ore produced by the
Pandora joint venture for onward processing which is included in
downstream operating statistics.
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5
|
Relates to the tonnes milled and derived metal in
concentrate from third-party ore purchases.
|
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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).
|
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7
|
Recovery rate in the concentrators is the total
content produced divided by the total content milled (excluding slag).
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8
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Metals in concentrate includes slag and have been
calculated at industry standard downstream processing losses.
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9
|
Corresponds to contained base metals in
concentrate.
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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.
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11
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Concentrate and other sales have been adjusted to
a saleable ounces basis using standard industry recovery rates.
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12
|
Basket price of PGMs is based on the revenue
generated from the actual PGMs sold in the period.
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This information is provided by RNS
The company news service from
the London Stock Exchange
<
|
|
Lonmin PLC.
|
|
PRODUCER |
|
CODE : LMI.L |
|
ISIN : GB0031192486 |
|
CUSIP : 54336Q203 |
| |
ProfileMarket
IndicatorsVALUE :
Projects & res.Press
releasesAnnual
reportRISK :
Asset profileContact Cpy |
Lonmin is a gold and platinum producing company based in United kingdom. Lonmin produces gold, platinum, palladium and rhodium in South Africa, and holds various exploration projects in Canada, in Gabon, in South Africa and in Tanzania. Its main assets in production are PANDORA JV, LIMPOPO, MARIKANA, EASTERN PLATINUM (EPL) and KAREE MINE (WPL) in South Africa and its main exploration properties are LUWUMBU in Tanzania, PANTON in Australia, MESSINA PLATINIUM and WESTERN PLATINUM in South Africa and WINDY LAKE in Canada. Lonmin is listed in Germany, in United Kingdom and in United States of America. Its market capitalisation is GBX 21.4 billions as of today (US$ 25.0 billions, € 22.0 billions). Its stock quote reached its highest recent level on August 28, 2009 at GBX 9 964.65, and its lowest recent point on June 28, 2019 at GBX 75.60. Lonmin has 282 784 288 shares outstanding. |
| In the News and Medias of Lonmin PLC. |
 |
| Annual reports of Lonmin PLC. |
| Financings of Lonmin PLC. |
| Nominations of Lonmin PLC. |
| Financials of Lonmin PLC. |
| Project news of Lonmin PLC. |
| Corporate news of Lonmin PLC. |
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|