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Fourth Quarter 2013 Production Report
Lonmin Plc
(Incorporated in England and Wales)
(Registered in the Republic of South Africa under registration number 1969/000015/10)
JSE code: LON
Issuer Code: LOLMI & ISIN : GB0031192486
("Lonmin")
11 November 2013
Fourth Quarter 2013 Production Report
Lonmin Plc ("Lonmin" or "the Company"), the world's third largest Platinum producer, today announces its
production results for the three months to 30 September 2013. Lonmin also publishes today, in a separate
announcement, its final results for the year ended 30 September 2013.
Overview
The positive trend of our rolling 12 month average Lost Time Injury Frequency Rate (LTIFR) continued and LTIFR for
2013 was 3.50 incidents per million man hours compared to 3.55 at the end of June 2013 and 4.16 for 2012.
Regrettably one of our colleagues, Ayanda Dziliyana, was fatally injured in August at Saffy shaft and we extend our
sympathies to his family and friends.
We maintained the overall operational momentum built since the labour disruptions and achieved an impressive
performance in the fourth quarter with 3.2 million attributable tonnes being mined reflecting an improvement of
9.5% against Q3 2013. This represents an increase of 1.5 million tonnes or 94.0% on the prior year period when
production was affected by the labour unrest and Events at Marikana. Total tonnes lost in Q4 due to Section 54
safety stoppages, management induced safety stoppages (MISS) and industrial relations issues were 69,000 tonnes
less than Q3. Momentum was interrupted in August following the fatality at Saffy shaft and the associated safety
stoppage but the operations recovered resulting in the exceptional performance.
During the quarter, we produced total Platinum metal in concentrate of 198,428 ounces reflecting an improvement
of 6.4% against Q3. Platinum sales were 288,280 ounces driven by good smelter performance in the quarter after the
Number Two furnace forced shut down in Q3. For the financial year 2013 we achieved 750,942 ounces of Platinum
metal in concentrate, the highest amount since 2007. Refined production of 709,029 Platinum ounces were lower as
a result of refilling the pipeline and a stock build-up following the smelter incident at Number Two furnace which
occurred during the planned shut down of the Number One furnace for maintenance. We sold 695,803 Platinum
ounces during the financial 2013 year.
Mining Division
Our underground mining operations produced 3.0 million tonnes during the fourth quarter, an increase of 1.5 million
tonnes or 101.0% more than the prior year period. The comparative numbers were negatively affected by the Events
at Marikana during the prior year period. Production from our Merensky opencast operations was comparable to the
prior year period. Pandora attributable production increased by 43,000 tonnes, or 171.4% on the prior year period
following labour disruptions in 2012.
Production at Karee increased by 686,000 tonnes, up 105.0% on the prior year period and 12.9% compared to Q3. K4
was placed on care and maintenance at the beginning of the year having produced 22,000 tonnes in Q4 2012.
Similarly production at Westerns increased by 414,000 tonnes, or 108.9% on the prior year period and 15.1% against
the previous quarter. Output from Rowland shaft increased by 20.8% or 86,000 tonnes compared to Q3 as the
operations regained momentum following the fatal accident in April and Section 54 safety stoppage. The preliminary
work around the de-bottlenecking project has started to deliver positive returns and the ore reserve position has
been improved. Newman increased by 16,000 tonnes, or 7.0% compared to Q3.
Production at Middelkraal continued to increase, and was 296,000 tonnes or 96.1% more than the prior year. The
quarter on quarter increase was, however, only 4.4% as the momentum established at Saffy was impacted by a
Section 54 safety stoppage which resulted in a loss of 89,000 tonnes following the fatal accident on 14 August.
Production at Easterns increased by 92,000 tonnes over the prior year period. The planned depletion of East 1 shaft
continues as it approaches the end of its life.
In total, 165,000 tonnes of production were lost during the quarter, of which 105,000 tonnes related to Section 54
safety stoppages, 9,000 tonnes to MISS and an additional 51,000 tonnes was due to labour stoppages. This
compared to a total of 1,822,000 tonnes lost in the prior year period of which 26,000 tonnes were due to Section 54
safety stoppages, 2,000 tonnes were due to MISS and 1,794,000 tonnes were due to strike action.
Process Division
Total tonnes milled in the quarter increased by 1.4 million tonnes or 85.2% to 3.1 million tonnes with underground
92.4% higher than the prior year period and opencast down 27.2%.
Underground milled head grade decreased slightly by 3.0% to 4.55 grammes per tonne (5PGE+Au) when compared
to 4.69 grammes per tonne in the prior year period and remains within our expected grade range. The overall milled
head grade was 4.51 grammes per tonne, a decrease of 1.7% on the prior year period.
Underground and overall concentrator recoveries for the quarter increased by 0.9 percentage points to 87.6% when
compared to the prior year and 1.0 percentage point versus Q3 2013. These are record achievements.
Platinum in concentrate from the Marikana operations for the quarter was 186,332 saleable ounces, an 81.2%
increase on the prior year period and an increase of 6.7% on Q3. Total Platinum in concentrate at 198,428 ounces
was 82.4% higher than the prior year period. The increases were a consequence of the increase in ore mined.
Total refined production for the fourth quarter was up 38.5% to 271,773 ounces of saleable Platinum when
compared against the prior year period. Total Platinum Group Metals (PGMs) produced in the fourth quarter were
493,110 ounces, an increase of 24.4% on the prior year period reflecting the longer lead time for extracting non-
Platinum PGMs. Both furnaces were running during the quarter and high smelting rates were achieved as the build-
up in pipeline stock during the third quarter was processed.
Sales & Pricing
Platinum sales for the quarter were up 23.7% to 288,280 ounces and PGM sales were up 9.1% to 519,222 ounces.
The US dollar basket price (excluding base metal credit) at $1,058 per ounce during the quarter was broadly flat on
the prior year period while the corresponding Rand basket price was 21.7% higher than the prior quarter on the back
of Rand weakness.
ENQUIRIES
Investors / Analysts:
Lonmin
Tanya Chikanza (Head of Investor Relations) +27 11 218 8358 / +44 20 7201 6007
Media:
Cardew Group
James Clark / Emma Crawshaw +44 20 7930 0777
Sue Vey +27 72 644 9777
Sponsor:
J.P. Morgan Equities South Africa (Pty) Ltd
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 found.
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
to 30 Sep to 30 Sep
2013 2012
Tonnes mined Marikana Karee(1) kt 1,340 654
Westerns(1) kt 793 380
Middelkraal(1) kt 605 308
Easterns(1) kt 242 150
Underground kt 2,980 1,491
Opencast kt 113 113
Total kt 3,093 1,604
Pandora attributable(2) Underground kt 68 25
Lonmin Platinum Underground kt 3,048 1,516
Opencast kt 113 113
Total kt 3,161 1,629
% UG2 % 73.7% 71.0%
Tonnes milled(3) Marikana Underground kt 2,911 1,523
Opencast kt 74 102
Total kt 2,985 1,625
Pandora(4) Underground kt 160 72
Lonmin Platinum Underground kt 3,071 1,596
Head grade(5) g/t 4.55 4.69
Recovery rate(6) % 87.6% 86.7%
Opencast kt 74 102
Head grade(5) g/t 2.93 3.06
Recovery rate(6) % 85.0% 86.9%
Total kt 3,145 1,698
Head grade(5) g/t 4.51 4.59
Recovery rate(6) % 87.6% 86.7%
3 months 3 months
to 30 Sep to 30 Sep
2013 2012
Metals in Marikana Platinum oz 186,332 102,822
concentrate(7) Palladium oz 86,945 47,685
Gold oz 4,499 2,730
Rhodium oz 25,648 13,265
Ruthenium oz 38,329 21,532
Iridium oz 8,801 4,688
Total PGMs oz 350,554 192,721
Nickel(8) MT 950 554
Copper(8) MT 607 352
Pandora(4) Platinum oz 11,213 5,068
Palladium oz 5,345 2,368
Gold oz 86 38
Rhodium oz 1,812 778
Ruthenium oz 2,667 1,228
Iridium oz 479 207
Total PGMs oz 21,602 9,687
Nickel(8) MT 21 9
Copper(8) MT 12 5
Concentrate purchases Platinum oz 883 905
Palladium oz 272 329
Gold oz 5 4
Rhodium oz 109 104
Ruthenium oz 105 132
Iridium oz 45 39
Total PGMs oz 1,418 1,513
Nickel MT 1 0
Copper MT 1 0
Lonmin Platinum Platinum oz 198,428 108,795
Palladium oz 92,562 50,382
Gold oz 4,589 2,772
Rhodium oz 27,569 14,146
Ruthenium oz 41,101 22,892
Iridium oz 9,325 4,934
Total PGMs oz 373,574 203,921
Nickel(8) MT 972 564
Copper(8) MT 619 358
3 months 3 months
to 30 Sep to 30 Sep
2013 2012
Refined Lonmin refined metal Platinum oz 271,773 178,158
production production Palladium oz 122,904 89,857
Gold oz 7,081 5,006
Rhodium oz 21,651 44,096
Ruthenium oz 61,982 38,675
Iridium oz 6,286 8,475
Total PGMs oz 491,677 364,269
Toll refined metal Platinum oz - 18,021
production Palladium oz - 8,564
Gold oz - 48
Rhodium oz - 263
Ruthenium oz 1,333 4,224
Iridium oz 100 939
Total PGMs oz 1,433 32,058
Total refined PGMs Platinum oz 271,773 196,179
Palladium oz 122,904 98,421
Gold oz 7,081 5,054
Rhodium oz 21,651 44,359
Ruthenium oz 63,315 42,900
Iridium oz 6,386 9,414
Total PGMs oz 493,110 396,327
Base metals Nickel(9) MT 1,224 921
Copper(9) MT 776 531
Sales Refined metal sales Platinum oz 288,280 233,054
Palladium oz 122,951 121,096
Gold oz 5,885 5,262
Rhodium oz 25,108 53,534
Ruthenium oz 68,611 51,887
Iridium oz 8,387 11,271
Total PGMs oz 519,222 476,104
Nickel(9) MT 1,246 1,074
Copper(9) MT 845 724
Chrome(9) MT 378,361 287,165
3 months 3 months
to 30 Sep to 30 Sep
2013 2012
Average prices Platinum $/oz 1,443 1,477
Palladium $/oz 718 603
Gold $/oz 1,475 1,526
Rhodium $/oz 975 1,106
Ruthenium $/oz 70 100
Iridium $/oz 841 1,033
$ basket excl. by-product revenue(10) $/oz 1,058 1,053
$ basket incl. by-product revenue(11) $/oz 1,110 1,103
R basket excl. by-product revenue(10) R/oz 10,556 8,674
R basket incl. by-product revenue(11) R/oz 11,070 9,031
Nickel(9) $/MT 11,242 11,866
Copper(9) $/MT 6,827 6,948
Chrome(9) $/MT 18 21
Exchange Rates Average rate for period(12) R/$ 9.95 8.24
Closing rate R/$ 9.99 8.30
Notes:
1 Karee includes the shafts K3, K4 (currently on care and maintenance) and 4B/1B. Westerns comprises Rowland, Newman and
ore purchases from W1. Middelkraal represents Hossy and Saffy. Easterns includes E1, E2 and E3.
2 Pandora attributable tonnes mined represents Lonmin's share (42.5%) of the total tonnes mined on the Pandora joint
venture.
3 Tonnes milled excludes slag milling.
4 Lonmin purchases 100% of the ore produced by the Pandora joint venture for onward processing which is included in
downstream operating statistics.
5 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).
6 Recovery rate in the concentrators is the total content produced divided by the total content milled (excluding slag).
7 Metals in concentrate include metal derived from slag processing and have been calculated at industry standard downstream
processing losses to present produced saleable ounces.
8 Corresponds to contained base metals in concentrate.
9 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.
10 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.
11 As per note 10 but including revenue from base metals.
12 Exchange rates are calculated using the market average daily closing rate over the course of the period.
Date: 11/11/2013 09:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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