Wrap Text
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.
Date: 02/11/2015 10:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.