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LONMIN PLC - Third Quarter 2015 Production Report and Business Update

Release Date: 24/07/2015 08:00
Code(s): LON     PDF:  
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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




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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.




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