Lonmin - Smelter Update

Lonmin - Smelter Update                                                         
Lonmin Plc                                                                      
("Lonmin")                                                                      
(Incorporated in England)                                                       
(Registered in the Republic of South Africa)                                    
(Registration number 1969/000015/10)                                            
ISIN code: GB0031192486                                                         
Share code: LON                                                                 
Issuer code: LOLMI                                                              
17 December 2004                                                                
Smelter Update and FY2005 Guidance                                              
Lonmin Plc stated today that repairs to its No. 1 smelter at its operations in  
South Africa have proceeded according to plan.  The reheating process will begin
on 7 January 2005 and Lonmin expects the first matte tap to be by the end of    
January.                                                                        
As previously indicated, the estimated cost of repair is expected to be between 
$4 to $6 million.  Lonmin estimates the costs of running the pyromet furnaces   
and tolling material through Impala will be approximately $11 million.          
Sales and mine production volumes are expected to be largely unaffected for the 
full year and sales in the half year are expected to be about 40% of the annual 
total.                                                                          
Including the additional smelting and repair costs which will fall into the     
current year Lonmin"s best estimates of production and costs, at this point in  
time, for the full year to the end of September 2005 are as follows:            
  Source                               Production/000"s  Rand Cost/PGM oz       
  Underground mines (Pt ozs)           765                                      
  Underground mine (total PGM Ozs)     1,460             2,400                  
Open Cast (Pt Ozs)                   165                                      
  Open Cast  (total PGM Ozs)           255               2,900                  
  Total Mine Pt Ozs                    930                                      
  Total Mine PGM Ozs                   1,715             2,475                  
Total Pt Sales - Ozs                 930                                      
  Total PGM Sales                      1,715             2,475                  
The costs of R2,475 per PGM oz shown above include R60 per PGM oz for the       
additional smelter and repair costs, which indicates a 2005 underlying cash cost
of R2,415 per PGM oz compared to the underlying cost in 2004 of R2,350 per PGM  
oz, an increase of 3% year-on-year.  This remains broadly in line with Lonmin"s 
target to maintain the increase in cash costs per PGM oz below SA inflation.    
Lonmin expect working capital to increase by about $50 million in the first half
of the financial year, with overall borrowings within our stated target gearing 
levels.  This abnormal position is expected to reverse in the second half of the
year.                                                                           
Chief Executive Brad Mills said:  "I am satisfied that the current smelter      
situation has been managed effectively.  The full year cost impact of the       
incident has been contained at about R60 per PGM oz of sales.  This incident is 
regrettable but it is reassuring to confirm that the incident was unrelated and 
much less serious than the previous smelter incident experienced in December    
2002.  A complete review of our operational risks and a new hazard audit of the 
entire smelter complex is being conducted with the participation of independent 
professionals with a view to codifying the new techniques learned in the        
implementation of new smelter technology.  As a company we remain committed to  
achieving safe, low cost operations."                                           
END                                                                             
Enquiries:                                                                      
John Robinson           Lonmin Plc         T: 020 7201 6000                     
Anthony Cardew          Cardew Group       T: 020 7930 0777  M: 07770 720 389   
Date: 17/12/2004 09:00:05 AM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department