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LONMIN PLC - 2015 Fourth Quarter and Full Year Production Report

Release Date: 02/11/2015 10:30
Code(s): LON     PDF:  
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2015 Fourth Quarter and Full Year 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")

2015 Fourth Quarter and Full Year Production Report

REGULATORY RELEASE

2 November 2015


Lonmin Plc (“Lonmin” or, together with its subsidiaries, the "Group"), a primary platinum producer, today
announces its production results for the three and twelve months to 30 September 2015 (unaudited). This follows
Lonmin’s year-end trading update, business plan (the "Business Plan") and funding strategy released on 21 October
2015.

A notice to shareholders of a General Meeting to be held on 19 November 2015 will be issued later today.

Overview
- Sadly three fatalities in the year and an increase in LTIFR to 5.41 from 3.34 due to the strike in 2014
- Production achievements for the year ended 30 September 2015:
       o Unit costs for the quarter and full year were ZAR9,841 and ZAR10,339 per PGM ounce respectively
       o Saffy shaft ramped up to steady state full production and reduced Group unit costs
       o Refined platinum production of 759,695 ounces
       o Platinum sales of 751,560 ounces, the highest since 2007 beating guidance of 730,000 ounces
       o Total Platinum metal-in-concentrate for the year was 740,315 saleable ounces
       o Mined production of 704,776 Platinum ounces – impacted by 48,000 ounces due to Section 54 safety
           stoppages
       o Concentrator recovery rates of 86.7% continue to be strong
       o PGM instantaneous recovery rate of 87.2% outstanding, 1.0 percentage point higher than 2014
- The Group’s net assets attributable to equity shareholders are expected to be valued between $1,600 and
   $1,800 million following significant impairment charge of $1,850 to $2,050 million for the year ended 30
   September 2015
- Right sizing now 50% complete within six months with 2,978 workers exited (1,978 employees and 1,000
   contractors)

Guidance
As announced on 21 October 2015, Lonmin is taking decisive action to mitigate the effects of the current low PGM
pricing environment as demonstrated by the tight control of capital expenditure in the year ended 30 September
2015 to minimise capital spent to US$136 million from the original guidance of US$250 million. The Group is also
removing high-unit cost PGM production and associated overhead costs. As a result, it is expected that the sales
profile for the Group will be approximately 700,000 Platinum ounces for the year ending 30 September 2016
stabilizing to approximately 650,000 Platinum ounces for each of the years ending 30 September 2017 and 2018. The
Group still boasts of its 22 months immediately available ore reserves and is maintaining this flexibility in all its four
key Generation 2 shafts namely K3, Rowland, 4B and Saffy. Capital expenditure is anticipated to be limited to
approximately US$132 million and US$110 million for the years ending 30 September 2016 and 2017 respectively.
The Group anticipates that its capital expenditure for the year ending 30 September 2018 will increase to
approximately US$188 million.

A large portion of the planned ore reserve development capital expenditure is for the development of the
Middelkraal resource that the Group plans to extract via its existing, profitable Rowland shaft, as well as the further
deepening of the existing, profitable K3 shaft. The continued investment in these projects will enable the hoisting
capacity of these shafts to be fully used for an extended period and to drive their low unit costs.
The implementation of the Business Plan, as announced on 21 October, is anticipated to result in a cost reduction in
FY15 real terms of approximately ZAR0.7 billion in financial year 2016 (against the annual cost base for the year
ended 30 September 2015, unaudited) and a further cost reduction in real terms of approximately ZAR1.6 billion in
financial year 2017 (against the forecast annual cost base for the year ended 30 September 2016).

The Group aims to keep its unit costs per PGM ounce in nominal terms broadly flat in line with the year ended 30
September 2015 at around ZAR10, 400 per PMG ounce, for three further years ending 30 September 2016, 2017 and
2018.

FOURTH QUARTER AND FULL YEAR PRODUCTION REPORT

Operational Overview and Safety
It is with regret that we have to report two fatalities in the fourth quarter. Our colleagues Bonisile Mapango, a winch
driver at JV Pandora E3 shaft and Mark Potgieter, a Sandvik Mining contractor and General Foreman at Hossy shaft
were both fatally injured in separate incidences in July. Subsequent to the year end, Zilindile Ndumela, a locomotive
driver at Rowland shaft was fatally injured on 26 October. We extend our deepest condolences to their families and
friends.

In the fourth quarter of 2015 Saffy shaft successfully ramped up to full production as planned which contributed to
the 7.6% increase in total tonnes mined compared to the fourth quarter of the prior financial year. The metals in
process pipeline stock returned to normal levels as the build-up in stock during the smelter down time in the second
quarter of 2015 was fully processed by the year end as guided.

Production losses for the year due to an increase in section 54 safety stoppages amounted to approximately 48,000
platinum ounces but we are encouraged by interaction at industry level to address this increase. The rolling 12
month average Lost Time Injury Frequency Rate (LTIFR) for the 12 months to 30 September 2015 increased to 5.41
incidents per million man hours compared to 3.34 at 30 September 2014. This continued deterioration, which has
been seen across the platinum industry since the five month strike in 2014, indicates the real impact that breaks in
operational continuity can have on employee focus.


Fourth Quarter Production Overview

Mining Operations
The Marikana underground mining operations (including Pandora (100%)) produced 2.9 million tonnes during the
fourth quarter, an increase of 0.3 million tonnes, or 9.4% on the fourth quarter of the prior financial year.

Generation 2 shafts
Production from our Generation 2 shafts (K3, Rowland, Saffy, 4B/1B and Hossy) was 2.4 million tonnes during the
fourth quarter, an increase of 10.4% on the fourth quarter of the prior financial year. This represented 81.1% of total
production for the fourth quarter in the year ended 30 September 2015.

    -   K3, Rowland, Saffy and 4B/1B all increased output compared to 2014.
    -   Saffy shaft recorded an increase of 42.8% on the fourth quarter of the prior financial year demonstrating the
        successful ramp up to full production (although the month of August was impacted by section 54 safety
        stoppages).
    -   There was a decrease in production from Hossy shaft of 24.6% on the prior year period driven by safety
        shutdowns following the fatality in July 2015, which slowed the momentum that had been established at this
        shaft. As announced on 24 July 2015 we are commencing an orderly shutdown and placement on care and
        maintenance of Hossy shaft.
    -   The 1B shaft was closed and placed on care and maintenance in October 2015.

Generation 1 shafts
Production from our Generation 1 shafts (Newman, W1, E1, E2, E3 and Pandora (100%)) at 0.5 million tonnes during
the fourth quarter was 3.3% higher than the fourth quarter of the prior financial year.

    -   In line with its end of life plans, production from Newman shaft decreased by 7.3% year on year. As
        announced in July, we are commencing orderly shutdown and placement of care and maintenance of
        Newman shaft.
    -   W1, E1 and E2 shafts each saw year on year increase in production for the fourth quarter of 34.2%, 13.8%
        and 11.7% respectively.
    -   Production from Pandora (100%) of 124,000 tonnes was 3,000 tonnes during the fourth quarter, or 2.4%
        lower than the fourth quarter of the prior financial year due to safety shutdowns following the fatality in
        July.

We had limited activity at K4 shaft in the fourth quarter with production of 8,000 tonnes. This shaft will remain on
care and maintenance in light of the prevailing low PGM price environment.

Production from our depleting Merensky opencast operations of 59,000 tonnes in the fourth quarter was 41,000
tonnes, or 40.9% lower than the fourth quarter of the prior financial year and mining ceased at the end of the fourth
quarter. Filling of the final void and final rehabilitation of the area is planned to be completed during the first half of
the 2016 financial year.

A total of 297,000 tonnes of production were lost in the fourth quarter mainly due to safety stoppages particularly at
Hossy, Saffy and Rowland shafts. In the fourth quarter of the prior financial year 679,000 tonnes were lost due to the
protected wage strike.

                                     Q4 2015 Q4 2014
                                      tonnes  tonnes
 Section 54 safety stoppages         281,000  91,000
 Management induced safety stoppages  16,000  60,000
 Industrial action                         - 679,000
 Total tonnes lost                   297,000 830,000

Process Operations
Total tonnes milled in the fourth quarter of 3.0 million tonnes were 0.6 million tonnes higher than the further
quarter of the prior financial year. We continue to use 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 4.47 grammes per tonne (5PGE+Au) for the fourth quarter was 2.4% higher than
the fourth quarter of the prior financial year of 4.37 grammes per tonne largely due to the mix of UG2 to Merensky
ore. The overall milled head grade at 4.45 grammes per tonne for the fourth quarter, was up 3.3% on the fourth
quarter of the prior financial year due to the increase in underground head grade combined with the decrease in
opencast ore in the mix. Concentrator recoveries for the fourth quarter were strong at 86.4% compared to fourth
quarter of the prior financial year. Total platinum metal-in-concentrate for the fourth quarter at 185,659 saleable
ounces was 44,035 ounces higher than the fourth quarter of the prior financial year.

Our furnaces are operating at normal production levels and we succeeded in processing the build-up of concentrate
by the end of the fourth quarter of the year ended 30 September 2015. A planned shutdown of the Number Two
furnace for scheduled refractory brick replacement and design upgrades on the roof and off-gas system is taking
place in the first quarter of financial year 2016. During this period the Pyromet furnaces will be used as required.

Total refined platinum production for the fourth quarter of 256,222 ounces was 113,510 ounces higher than the
fourth quarter of the prior financial year. This was the highest volume refined in a single quarter since the fourth
quarter of year ended 30 September 2013 and demonstrates the benefit of our back-up smelting capacity which
enables timeous processing of stock build-ups. Total PGMs produced in the fourth quarter were 495,022 ounces, an
increase of 238,623 on the fourth quarter of the prior financial year.

Sales & Pricing
Platinum sales for the fourth quarter of 253,841 ounces were in line with refined production. This was an increase of
101,571 ounces on the fourth quarter of the prior financial year. PGM sales of 481,976 ounces for the fourth quarter
were up 208,993 ounces compared to fourth quarter of the prior financial year.

The weak price environment continued during the fourth quarter. The platinum US Dollar price decreased by 30.0%
on the fourth quarter of the prior financial year. The Rand basket price of R10,336 per ounce for the fourth quarter
was 15.3% lower than the fourth quarter of the prior financial year impacted by the Rand weakness as the average
Rand to US dollar exchange rate was 20.7% weaker at 13.00 compared to 10.76 in the fourth quarter of the prior
financial year. Post year end the platinum price remains volatile ranging from a low of $905 per ounce on 2 October
2015 to a high of $1,020 on 21 October 2015.


Full Year Production Overview
It is important to note that there was an industrial strike extending over five months of the year ended 30
September 2014 making year on year comparisons between 2015 and 2014 inappropriate.

Mining Operations
A total of 11.3 million tonnes was mined in the year ended 30 September 2015, 4.9 million tonnes higher than the
strike impacted prior financial year. We saw improved performance by the Generation 2 shafts in the year ended 30
September 2015 and the planned delivery of Saffy shaft to steady state was achieved. Output from the Generation 1
shafts was in line with the management of the depleting shafts. Mining operations in the year ended 30 September
2015 were held back by an increase in the frequency and duration of section 54 safety stoppages, in particular at K3,
our biggest shaft, as well as at Pandora E3 and Hossy.

As announced in July, the Group plans to carry out the orderly closure and placement on care and maintenance of
Newman and Hossy shafts, by stopping development and capital work and only mining immediately available ore
reserves. The 1B shaft was closed and place on care and maintenance in October 2015.

Mining at E1 and W1 shafts will continue for the year ending 30 September 2016 following renegotiation of ore
purchase agreements between the Group and contractor management on more favourable terms, and a favourable
outcome from the section 189 consultation process.

Tonnes lost mainly due to increased Section 54 safety stoppages and management induced safety stoppages at 0.9
million tonnes for year ended 30 September 2015 were lower than the strike impacted prior financial year but were
0.3 million tonnes higher than the year ended 30 September 2013.

                                               2015      2014   2013
                                             tonnes    tonnes tonnes
 Section 54 safety stoppages                770,000   282,000 319,000
 Management induced safety stoppages        102,000    83,000  49,000
 Industrial action (5 month strike in 2014) 27,000 6,382,000 252,000
 Total tonnes lost                          899,000 6,747,000 620,000


Process Operations
Total tonnes milled in the year ended 30 September 2015 were 11.8 million tonnes, 5.7 million tonnes higher than
the prior financial year as the concentrating operations were also impacted by the strike action and shut down.
Compared to the year ended 30 September 2013 tonnes milled were flat despite only running six out of our seven
Marikana concentrators. The impact on tonnes milled due to load shedding was a reduction of 93,000 tonnes for the
year ended 30 September 2015.
Underground milled head grade was 4.51 grammes per tonne, up 0.7% on the prior financial year. Overall the milled
head grade was 4.47 grammes per tonne, up 1.8% on the prior financial year due to the increase in underground
grade and a decrease in lower grade opencast ore in the mix. Underground and overall concentrator recoveries for
the year at 86.8% and 86.7%, respectively, remain strong. Total Platinum metal-in-concentrate for the year at
740,315 saleable ounces exceed the mining production of 704,776 Platinum ounces as the stock piles of ore ahead of
the concentrators gave us the flexibility to overcome the impact of Section 54 safety stoppages at our mining
operations.

As previously reported, smelting and refining operations were constrained in the second quarter due to shutdowns
for repairs of both the Number One and Number Two furnaces. Subsequently, these operations ran at full capacity
processing the stock that had built-up and achieved refined Platinum production for the year ended 30 September
2015 of 759,695. This was the highest since 2007, 74.2% higher than the financial year 2014 and 7.1% higher than
the financial year 2013. PGMs produced in the year were 1,447,364 ounces, the highest since 2011. This was 64.1%
higher than financial year 2014 and 8.3% higher than financial year 2013. The initiative to reduce the metals in
process pipeline and improve recovery rates as part of the value benefits programme has yielded benefits earlier
than anticipated. An increase in production of around 10,000 PGM ounces has been attributed to this initiative in the
year ended 30 September 2015.

Sales & Pricing
Sales for the year were 751,560 platinum ounces, the highest since 2007, and 1,433,883 PGM ounces, the highest
since 2011.

The weak price environment continued during the year with the platinum price decreasing by 22.0% on the prior
financial year and the US Dollar basket price (including base metal revenue) falling by 15.9% to $902 per ounce (on 2
October 2015). The corresponding lowest Rand basket price of R10,829 per ounce for the year ended 30 September
2015 was 4.0% lower than the prior financial year impacted by the Rand weakness as the average Rand to US dollar
exchange rate was 13.8% weaker at 12.01 compared to 10.55.

Unaudited results for year ended 30 September 2015

Our audited results for the year ended 30 September 2015 are expected to be published on 9 November 2015. It is
expected that these results will show an operating loss of US$207 million before impairment charges of $1,850-
$2,050 million which are expected to be recognised in connection with the completion of the audit process for the
year ended 30 September 2015. The impairment charge is primarily driven by lower PGM prices and the Business
Plan which has an impact on future discounted cash flows over the life of mine business plan across the Group's
operations. As a result of the impairment charge it is expected that net assets attributable to equity shareholders of
Lonmin Plc as at 30 September will be in the range of $1,600 million and $1,800 million. Full details of the
impairment charge and net assets will be set out in the Group's audited results for the year ended 30 September
2015.

Update on Right Sizing the Group

Our workforce has reduced by 2,623 people from 38,292 as at 30 September 2014, to 35,669 people as at 30
September 2015, of which 1,308 were Lonmin employees and 1,315 were contractors. At 30 September 2015
Lonmin provided employment for 26,968 permanent employees and 8,701 contractors.

Progress continues with the restructuring programme due to new bench marked operating model and removal of
high cost production. In total 2,978 people had left the Group with 1,978 employees leaving through voluntary
separations and early retirement by 30 October 2015 and the net reduction in the contractor headcount was 1,000.
Lonmin expects to announce its full year audited results for the year ended 30 September 2015 on 9 November
2015.
                                                       - ENDS -



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

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 more than 70% 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 support and infrastructure across the operations.

For further information please visit our website: http://www.lonmin.com

This announcement includes forward-looking statements. All statements other than statements of historical fact
included in this announcement, including without limitation those regarding Lonmin's plans, objectives and expected
performance, are forward-looking statements. Lonmin has based these forward-looking statements on its current
expectations and projections about future events, including numerous assumptions regarding its present and future
business strategies, operations, and the environment in which it will operate in the future. Forward-looking
statements generally can be identified by the use of forward-looking terminology such as "may", "will", "could",
"would", "expect", "intend", "estimate", "anticipate", "believe", "plan", "aim" or "continue", or, in each case, their
negative, or other variations or comparable terminology. Such forward-looking statements involve known and
unknown risks, uncertainties, assumptions and other factors related to Lonmin, including, among other factors: (1)
material adverse changes in economic conditions generally or in relevant markets or industries in particular; (2)
fluctuations in demand and pricing in the mineral resource industry and fluctuations in exchange rates; (3) future
regulatory and legislative actions and conditions affecting Lonmin's operating areas; (4) obtaining and retaining
skilled workers and key executives; and (5) acts of war and terrorism. By their nature, forward-looking statements
involve risks, uncertainties and assumptions and many relate to factors which are beyond Lonmin's control, such as
future market conditions and the behaviour of other market participants. Actual results may differ materially from
those expressed in forward-looking statements. Given these risks, uncertainties, and assumptions, you are cautioned
not to put undue reliance on any forward-looking statements. In addition, the inclusion of such forward-looking
statements should under no circumstances be regarded as a representation by Lonmin that Lonmin will achieve any
results set out in such statements or that the underlying assumptions used will in fact be the case. Other than as
required by applicable law or the applicable rules of any exchange on which Lonmin's securities (the "Securities") may
be listed, Lonmin has no intention or obligation to update or revise any forward-looking statements included in this
announcement after the publication of this announcement.

This announcement is an advertisement and not a prospectus. It does not constitute, or form part of, an offer to sell
or a solicitation of any offer to buy the securities of the Company and investors should not subscribe for or purchase
any shares referred to in this announcement except on the basis of information in the prospectus to be published by
the Company in due course in connection with the Proposed Rights Issue, and any supplement or amendment thereto
(the "Prospectus"). Copies of the Prospectus will, following publication, be available from the Company's registered
office.

This announcement is not an offer to sell or a solicitation of any offer to buy any Securities in the United States,
Australia, Canada, Japan or in any other jurisdiction where such offer or sale would be unlawful or to any person to
whom it would be unlawful to make such offer or solicitation.

The Securities have not been and will not be registered under the US Securities Act of 1933 (the "Securities Act"), or
with any securities regulatory authority of any State or other jurisdiction of the United States, and may not be
offered, sold, resold, pledged, taken up, exercised, renounced or otherwise delivered, distributed or transferred,
directly or indirectly, into or within the United States except pursuant to an exemption from, or in a transaction not
subject to, the registration requirements of the Securities Act and in compliance with any applicable securities laws of
any State or other jurisdiction of the United States. No public offering of the Securities is being made in the United
States.

This communication is for distribution only to, and directed only at, persons in member states of the European
Economic Area who are "qualified investors" within the meaning of Article 2(1)(e) of the Prospectus Directive (as
amended by Directive 2010/73/EU) ("Qualified Investors"). For the purposes of this provision, the expression
"Prospectus Directive" means Directive 2003/71/EC and includes any relevant implementing measure in each
member state of the European Economic Area which has implemented the Prospectus Directive. In addition, in the
United Kingdom, this communication is for distribution only to, and is directed only at, Qualified Investors who (i)
have professional experience in matters relating to investments who fall within the definition of "investment
professionals" in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as
amended (the "Order"), or (ii) are persons falling within Article 49(2)(a) to (d) of the Order, or (iii) are persons to
whom it may otherwise lawfully be communicated (all such persons together being referred to as "relevant persons").
Any investment or investment activity to which this communication relates is available only to and will only be
engaged in with such persons. This communication must not be acted on or relied on (i) in the United Kingdom, by
persons who are not relevant persons, and (ii) in any member state of the European Economic Area (including the
United Kingdom), by persons who are not Qualified Investors.

All financial figures for the year ended 30 September 2015 are on an unaudited basis. No statement in this
announcement is intended as a profit forecast or a profit estimate and no statement in this announcement should be
interpreted to mean that earnings per share for the current or future financial years would necessarily match or
exceed the historical published earnings per share. Prices and values of, and income from, shares may go down as
well as up and an investor may not get back the amount invested. It should be noted that past performance is no
guide to future performance. Persons needing advice should consult an independent financial adviser.
                                                  3 months    3 months    12 months    12 months
                                                  to 30 Sep   to 30 Sep    to 30 Sep    to 30 Sep
                                                       2015        2014         2015         2014
Tonnes    Generation 2     K3 shaft         kt          773         677        2,713        1,484
mined1                     Rowland shaft    kt          470         450        1,872        1,005
                           Saffy shaft      kt          495         347        1,758          782
                           4B/1B shaft      kt          438         403        1,628          891
                           Hossy shaft      kt          224         297          953          609
                           Generation 2     kt        2,400       2,173        8,923        4,771
          Generation 1     Newman shaft     kt          174         187          765          428
                           W1 shaft         kt           45          34          180          102
                           East 1 shaft     kt           37          32          148          104
                           East 2 shaft     kt           98          87          390          279
                           East 3 shaft     kt           17          11           68           28
                           Pandora
                                            kt         124         127          544          299
                           (100%)2
                           Generation 1     kt         494         478        2,095        1,240
                           K4 shaft         kt           8           -           49            -
                           Total
                                            kt       2,902       2,652       11,067        6,012
                           Underground
                           Opencast         kt          59         100          230          333
                           Total
                           underground      kt       2,961       2,752       11,297        6,345
                           & opencast
          Limpopo3         Underground      kt            -           -            -           6
          Lonmin           Total tonnes
                                            kt       2,961       2,752       11,297        6,351
          (100%)           mined (100%)
                           % mined from
                           UG2 reef         %        74.1%       74.1%        75.1%        74.1%
                           (100%)
          Lonmin           Underground
                                            kt       2,899       2,679       11,016        6,180
          (attributable)   & opencast
Ounces    Lonmin excl.
                           Platinum         oz     175,734     157,331      668,319      371,651
mined4    Pandora
          Pandora
                           Platinum         oz       8,178       8,231       36,458       20,327
          (100%)
          Limpopo          Platinum         oz           -           -            -          255
          Lonmin           Platinum         oz     183,912     165,562      704,776      392,233
          Lonmin excl.
                           PGMs             oz     336,257     298,167     1,280,964     707,913
          Pandora
          Pandora
                           PGMs             oz      16,087      16,262       71,861       40,044
          (100%)
          Limpopo          PGMs             oz           -           -             -         572
          Lonmin           PGMs             oz     352,344     314,430     1,352,825     748,529
Tonnes    Marikana         Underground      kt       2,803       2,120        10,930       5,389
milled5                    Opencast         kt          53         117           318         422
                           Total            kt       2,855       2,237        11,248       5,810
          Pandora6         Underground      kt         124         109           562         281
          Limpopo7         Underground      kt           -           -             -          27
          Lonmin
                           Underground      kt       2,926       2,228       11,491        5,696
          Platinum
                           Head grade8      g/t        4.47        4.37        4.51          4.48
                           Recovery rate9   %        86.4%       86.3%       86.8%         87.0%
                           Opencast         kt           53         117         318           422
                           Head grade8      g/t        3.07        3.16        3.08          3.20
                           Recovery rate9   %        84.8%       85.3%       85.1%         84.5%
                           Total            kt        2,979       2,345      11,810         6,118
                           Head grade8      g/t        4.45        4.31        4.47          4.39
                           Recovery rate9   %        86.4%       86.2%       86.7%         86.9%
                                               3 months    3 months    12 months    12 months
                                               to 30 Sep   to 30 Sep    to 30 Sep    to 30 Sep
                                                    2015        2014         2015         2014
Metals-in-      Marikana      Platinum    oz     176,123     133,507      696,489      355,926
concentrate10                 Palladium   oz      82,035      61,875      323,177      164,960
                              Gold        oz       4,271       4,062       16,503        9,879
                              Rhodium     oz      24,840      18,578      101,435       49,908
                              Ruthenium   oz      41,033      30,724      165,689       81,693
                              Iridium     oz       8,089       5,663       32,416       16,143
                              Total
                                          oz    336,391     254,410     1,335,710     678,508
                              PGMs
                              Nickel11    MT        961         790        3,579        2,029
                              Copper11    MT        591         485        2,211        1,273
                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      8,178       7,056       37,553       18,913
                              Palladium   oz      3,825       3,361       17,496        8,960
                              Gold        oz         30         (23)         131           54
                              Rhodium     oz      1,373       1,217        6,383        3,226
                              Ruthenium   oz      2,255       1,959       10,466        5,168
                              Iridium     oz        425         388        1,988          916
                              Total
                                          oz     16,087      13,958       74,019       37,237
                              PGMs
                              Nickel11    MT         24          14           87           35
                              Copper11    MT          9            8          37           20
                Concentrate   Platinum    oz      1,357       1,060        6,273        4,398
                purchases     Palladium   oz        376         301        1,869        1,242
                              Gold        oz          4          (1)          18           14
                              Rhodium     oz        174         126          816          531
                              Ruthenium   oz        240         122        1,079          546
                              Iridium     oz         77          48          338          224
                              Total
                                          oz      2,228       1,655       10,394        6,955
                              PGMs
                              Nickel11    MT          1           -            3            2
                              Copper11    MT          1           -            2            1
                Lonmin        Platinum    oz    185,659     141,624      740,315      380,359
                Platinum      Palladium   oz     86,236      65,537      342,542      176,136
                              Gold        oz      4,305       4,038       16,653       10,040
                              Rhodium     oz     26,386      19,921      108,634       53,779
                              Ruthenium   oz     43,527      32,805      177,235       87,567
                              Iridium     oz      8,592       6,099       34,743       17,327
                              Total
                                          oz    354,705     270,023     1,420,122     725,208
                              PGMs
                              Nickel11    MT        985         804        3,669        2,092
                              Copper11    MT        600         493        2,250        1,314
                                                            3 months    3 months    12 months    12 months
                                                            to 30 Sep   to 30 Sep    to 30 Sep    to 30 Sep
                                                                 2015        2014         2015         2014
Refined      Lonmin         Platinum               oz         256,029     140,698      759,005      431,683
production   refined        Palladium              oz         118,022      65,164      350,040      208,756
             metal          Gold                   oz           5,934       4,438       18,232       12,299
             production     Rhodium                oz          40,156       7,136      102,372       76,940
                            Ruthenium              oz          59,494      35,455      181,803      107,166
                            Iridium                oz          14,977       1,001       32,180       27,991
                            Total PGMs             oz         494,611     253,892    1,443,633      864,835
             Toll refined   Platinum               oz             193       2,014          689        4,501
             metal          Palladium              oz              94         242          280        1,765
             production     Gold                   oz               5          15           14          116
                            Rhodium                oz              33         207           95        1,546
                            Ruthenium              oz              68           -        2,093        7,417
                            Iridium                oz              17          30          560        1,914
                            Total PGMs             oz             411       2,508        3,731       17,259
             Total          Platinum               oz         256,222     142,712      759,695      436,184
             refined        Palladium              oz         118,116      65,406      350,320      210,521
             PGMs           Gold                   oz           5,939       4,453       18,246       12,415
                            Rhodium                oz          40,190       7,342      102,467       78,486
                            Ruthenium              oz          59,562      35,455      183,896      114,583
                            Iridium                oz          14,994       1,031       32,740       29,905
                            Total PGMs             oz         495,022     256,400    1,447,364      882,094
             Base           Nickel12               MT           1,163         858        3,720        2,387
             metals         Copper12               MT             780         609        2,276        1,480
Sales        Refined        Platinum               oz         253,841     152,270      751,560      441,684
             metal          Palladium              oz         114,949      65,049      347,942      212,500
             sales          Gold                   oz           7,589       6,600       19,199       13,100
                            Rhodium                oz          34,962       8,100       92,520       81,120
                            Ruthenium              oz          57,742      38,604      192,549      121,904
                            Iridium                oz          12,894       2,360       30,114       29,778
                            Total PGMs             oz         481,976     272,983    1,433,883      900,087
                            Nickel12               MT           1,380         839        3,656        2,251
                            Copper12               MT             945         643        2,131        1,448
                            Chrome12               MT         322,649     242,779    1,440,901      747,881
Average      Platinum                              $/oz           979       1,400        1,095        1,403
prices       Palladium                             $/oz           612         851          718          775
             Gold                                  $/oz         1,478       1,508        1,487        1,509
             Rhodium                               $/oz           805       1,283          998        1,050
             Ruthenium                             $/oz            37          58           45           57
             Iridium                               $/oz           494         610          524          521
             $ basket excl. by-product revenue13   $/oz           761       1,072          849        1,013
             $ basket incl. by-product revenue14   $/oz           805       1,148          902        1,072
             R basket excl. by-product revenue13   R/oz         9,765      11,375       10,207       10,654
             R basket incl. by-product revenue14   R/oz        10,336      12,196       10,829       11,277
             Nickel12                              $/MT         8,292      15,284       10,512       13,053
             Copper12                              $/MT         4,971       6,710        5,584        6,810
             Chrome12                              $/MT            16          16           17           18
Unit costs   Cost of production per PGM ounce      ZAR/oz       9,841      11,706       10,339       13,538
Exchange     Average rate for period15             R/$         13.00       10.76        12.01        10.55
rates
             Closing rate                          R/$         13.83       11.29        13.83        11.29
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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