Lonmin "on Track" to Hit Platinum Goal
By Jackie Mackenzie
25 Jan 2007 at 09:08 AM EST
resourceinvestor.com
JOHANNESBURG (I-Net Bridge) -- World number three platinum miner Lonmin [LSE:LMI] is on track to deliver between 1.02 and 1.04 million saleable ounces of platinum in concentrate from its mining operations this financial year, the group said on Thursday.
Total refined PGM production increased 10.9% year on year to 344,068 ounces in the December quarter from 310,120 ounces in the December 2005 quarter.
Releasing its production report for the quarter to end December 2006, CEO Brad Mills said:
"Our Marikana underground mining operations continue to perform well with tons mined in line with our expectations and flat versus Q1 2006 after stripping out the effect of the additional week in the prior year period."
He added that Limpopo operations focused on development during the period as part of their programme to ramp up production in the second half of the year.
The Pandora JV started contributing significantly to production during the period, he said.
"We continue to be on track to deliver between 1.02 and 1.04 million saleable ounces of Platinum in concentrate from our mining operations this financial year," he added
Refined PGM sales at 265,767 ounces from 267,134 ounces were flat on 2006 as a result of customer delivery schedules.
"Our sales forecast for the year remains around 980,000 to 1 million ounces of platinum," Mills said.
Total platinum ounces in concentrate declined to 230,719 ounces for the December quarter compared with 251,664 ounces for the corresponding period in 2005.
The average platinum price rose to $1,017/oz from $910/oz in the December 2005 quarter, while the average basket price for PGMs and base metals rose to $33,437/kg from $23,604/kg.
In September last year, Lonmin experienced a fire at its precious metals refinery, but was able to repair the refinery and therefore limit the effect on sales.
The company said at the time that about 10,000 ounces of platinum would be deferred to the first quarter of the financial year starting October 1, 2006, compared with an original forecast of 25,000 ounces.
Lonmin's first half production report will be announced on April 24 and interim results on May 2, it said.
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