Wrap Text
Third Quarter 2015 Production Report and Business Update
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")
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.
1
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.”
2
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 Q3 2014 Q3 2013
tonnes tonnes 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
3
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.
4
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 2014 2013
tonnes tonnes 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.
5
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 -
6
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
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
Tonnes Generation 2 K3 shaft kt 604 35 1,940 806 2,250
mined1 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
kt 2,597 222 8,166 3,360 8,391
Underground
Opencast kt 63 78 171 233 411
Total
underground & kt 2,659 301 8,336 3,593 8,805
opencast
Limpopo3 Underground kt - (3) - 6 -
Lonmin Total tonnes
kt 2,659 298 8,336 3,599 8,805
(100%) mined (100%)
% mined from
% 74.0% 70.7% 75.5% 74.1% 73.7%
UG2 reef (100%)
Lonmin Underground &
kt 2,604 289 8,117 3,500 8,569
(attributable) opencast
Ounces Lonmin excl.
Platinum oz 154,040 15,435 492,585 214,319 525,606
mined4 Pandora
Pandora
Platinum oz 7,164 724 28,279 12,097 29,678
(100%)
Limpopo Platinum oz - (104) - 255 -
Lonmin Platinum oz 161,204 16,055 520,864 226,671 555,283
Lonmin excl.
PGMs oz 295,889 29,190 944,707 409,746 979,193
Pandora
Pandora
PGMs oz 14,162 1,416 55,774 23,782 56,707
(100%)
Limpopo PGMs oz - (232) - 572 -
Lonmin PGMs oz 310,051 30,374 1,000,481 434,100 1,035,900
Tonnes Marikana Underground kt 2,642 287 8,127 3,269 7,944
milled5 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
Underground kt 2,752 307 8,565 3,468 8,358
Platinum
Lonmin Head grade8 g/t 4.42 4.06 4.52 4.55 4.62
Platinum 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%
8
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- Marikana Platinum oz 163,840 21,053 520,366 222,419 519,681
concentrate10 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
oz 315,410 38,664 999,319 424,098 969,347
PGMs
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
oz - - - 2,508 -
PGMs
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
oz 14,162 1,685 57,932 23,279 57,119
PGMs
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
oz 2,783 2,666 8,166 5,300 4,562
PGMs
Nickel11 MT 1 1 2 1 1
Copper11 MT 1 - 2 1 1
Lonmin Platinum oz 172,672 23,618 554,657 238,735 552,515
Platinum 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
oz 332,355 43,015 1,065,417 455,185 1,031,029
PGMs
Nickel11 MT 846 201 2,684 1,288 2,772
Copper11 MT 523 122 1,650 821 1,721
9
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 Lonmin Platinum oz 241,170 34,319 502,977 290,984 435,893
production refined Palladium oz 111,938 15,309 232,018 143,592 196,937
metal Gold oz 5,628 1,501 12,298 7,861 11,595
production 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 Platinum oz - 1,936 496 2,488 1,364
metal Palladium oz - 513 186 1,523 662
production 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 Platinum oz 241,170 36,255 503,473 293,472 437,257
refined Palladium oz 111,938 15,822 232,204 145,115 197,599
PGMs 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 Nickel12 MT 1,200 218 2,557 1,530 2,309
metals Copper12 MT 710 106 1,495 871 1,392
Sales Refined Platinum oz 231,778 25,740 497,719 289,414 407,523
metal Palladium oz 108,745 10,879 232,993 147,452 190,079
sales 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 Platinum $/oz 1,114 1,451 1,153 1,405 1,568
prices 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 $/MT 16 - 17 19 20
Exchange Average rate for period15 R/$ 12.08 10.51 11.68 10.48 9.01
rates
Closing rate R/$ 12.16 10.64 12.16 10.64 9.83
10
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.
JSE Sponsor: J.P. Morgan Equities South Africa (Pty) Ltd
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