LONMIN PLC - 2018 Interim Results

Release Date: 14/05/2018 08:00
Code(s): LON
 
Wrap Text
2018 Interim Results

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 : GB00BYSRJ698 ("Lonmin")

Lonmin Plc
5th Floor
Connaught House
1-3 Mount Street
London W1K 3NB
United Kingdom
T: +44 (0)20 3908 1070
http://www.lonmin.com

LEI No: 213800FGJZ2WAC6Y2L94
REGULATORY RELEASE

14 May 2018
2018 Interim Results

Lonmin Plc ("Lonmin" or "the Company") today publishes its Interim Results for the six month period ended 31 March 2018 and
the Q2 Production Report in a separate announcement.

KEY FEATURES
Safety
    - 10 months fatality free since July 2017.
    - Rolling LTIFR to 31 March 2018 improved by 8.6% and TIFR to 31 March 2018 improved by 12.8%.
    - Significant reduction in S54 safety stoppages.

Operational Highlights
   - Weak platinum prices and currency movements continue to create a difficult operating environment.
   - Tonnes mined from our Generation 2 shafts up 6.4% on prior year.
   - Total tonnes mined marginally down by 1.1%, reflecting the planned reduction from high cost areas. Newman shaft and E2
     shaft on care and maintenance. Section 189 process commenced, impacting 1,993 staff, with a net headcount reduction of
     1,504 employees and contractors, of the 3,700 jobs identified for this year; (12,600 jobs could potentially be impacted over
     the next three years).
   - Immediately Available Ore Reserves ("IAOR") for Generation 2 acceptable at 17.8 months average production.
   - Metals-In-Concentrate ("MIC") Platinum production up by 5.8% to 307,862 ounces.
   - Saleable refined Platinum production of 284,011 ounces down 5.7% on prior year period, due to the lock up of circa 47,000
     PGM ounces from the previously reported outage. Furnace recommissioned and lock-up is expected to unwind in H2 2018.
   - Bulk Tailings Treatment ("BTT") project completed and in the process of ramping up to full throughput by H2 2018.
   - Unit cost at R12,983 per PGM ounce 7.7% higher compared to prior year, primarily driven by the 8% wage increase, lock up of
     metals, and higher variable costs.

Financial Results
    - Net cash at 31 March 2018 was $17 million ($75 million at 31 March 2017, $63 million at 31 December 2017). Normalising for
      smelter lock-up of $47 million, net cash at March 2018 in-line with December 2017. During the period under review net cash
      was further reduced by $27m due to restructuring costs, which are not expected to repeat in H2.
    - Gross cash of $167 million, which includes $150 million drawn term loan and $17 million cash.
    - Revenue of $561 million up 15.4%, driven by a 26.7% increase in the dollar basket price.
    - The Rand was on average 6% stronger against the Dollar when comparing period on period.
    - Operating loss of $32 million - prior year period operating loss of $181 million (includes impairment charge of $146 million).
    - Covenant waivers remain in place until 28 February 2019 or until the Sibanye-Stillwater Transaction "the Transaction" closes
      or lapses (if earlier).

Strategic Highlights
    - The Transaction is progressing on schedule, with submissions made to competition authorities.

Outlook and Guidance
    - Sales guidance of 650,000 to 680,000 Platinum ounces for the full financial year maintained.
    - Unit costs guidance for the year maintained; expected to be at the upper end of the R12,000-R12,500 per PGM ounce range.
    - Full year capital expenditure guidance revised to between R1.2 billion and R1.3 billion (from R1.4 billion and R1.5 billion).

Commenting on the results Lonmin CEO Ben Magara said: "The Lonmin team remains focused on operational excellence,
and dealing successfully with the tougher conditions that currently face our entire industry. I'm particularly pleased with a
third consecutive fatality free quarter. Our solid mining performance is demonstrated by the 6.4% increase in mining
production from our Generation 2 shafts. We remain in a net cash positive position at the end of the period,
demonstrating the strength of our mine-to-market business, notwithstanding the c$47 million from the lock-up of metal,
which is expected to unwind in our traditionally stronger second half of the year. All this has been achieved in spite of the
period required to close our Transaction with Sibanye-Stillwater and the disruption experienced by our employees. As is
typical of transactions of this nature, our focus remains on minimising disruption to the business as we move towards
completion. We have to remain cash vigilant in order to maintain a resilient business, ready for the next era. We are
maintaining our sales guidance at between 650,000 and 680,000 Platinum ounces for the full year."

FINANCIAL HIGHLIGHTS

                                                                                       6 months to       6 months to
                                                                                          31 March     31 March 2017
                                                                                              2018
                      
Revenue                                                                                      $561m             $486m
EBITDA(i)                                                                                   $(26)m              $nil
Operating loss(ii)                                                                          $(32)m           $(181)m
Impairment to non-financial assets                                                                            $146)m
Operating loss(ii) excluding impairment to non-financial assets                             $(32)m            $(35)m
Loss before taxation                                                                        $(51)m           $(199)m
Loss per share                                                                             (19.1)c           (64.4)c
                      
Unit cost of production per PGM ounce                                                   R12,983/oz        R12,059/oz
                       
Trading cash outflow(iii)                                                                   $(62)m            $(48)m
Capital expenditure                                                                           $33m              $45m
Free cash outflow(iv)                                                                       $(95)m            $(93)m
                       
Cash and cash equivalents                                                                    $167m             $229m
Interest bearing loans and borrowings                                                      $(150)m           $(154)m
Net cash as defined by the Group(v)                                                           $17m              $75m

Footnotes:
The Group measures performance using a number of non-GAAP measures which better allow for understanding of the financial
performance and position of the Group.

i    EBITDA is operating profit before depreciation, amortization and impairment of goodwill, intangibles and property, plant and
     equipment.
ii   Operating loss is defined as revenue less operating expenses before finance income and expenses and share of loss of equity
     accounted investment.
iii  Trading cash flow is defined as cash flow from operating activities.
iv   Free cash flow is defined as trading cash flow less capital expenditure on property, plant and equipment and intangibles, proceeds
     from disposal of assets and dividends paid to non-controlling interests.
v    Net cash as defined by the Group comprises cash and cash equivalents, bank overdrafts repayable on demand and interest bearing
     loans and borrowings less unamortised bank fees, unless the unamortised bank fees relate to undrawn facilities in which case they
     are treated as other receivables.

ENQUIRIES

Investors / Analysts:
Tanya Chikanza                                                                   +27 83 391 2859/+44 20 3908 1073
(Executive Vice President: Corporate Strategy, Investor                    
Relations and Corporate Communications)                    
Andrew Mari (Investor Relations)                                                 +27 60 564 6419/+27 14 571 2070
                    
Media:                    
Wendy Tlou (Head of Communications)                                              +27 83 358 0049
Anthony Cardew, TB Cardew                                                        +44 207 930 0777
Tom Allison, TB Cardew                                                           +44 7789 998 020
                    
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 seeks to create value for shareholders through mining, refining and marketing PGMs and has a vertically
integrated operational structure - from mine to market. Lonmin's mining operations extract ore from which the Process
Operations produces refined PGMs for delivery to customers. 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

CHIEF EXECUTIVE OFFICER'S REVIEW

1. Introduction

Following the recommended offer from Sibanye-Stillwater to acquire Lonmin (the 'Transaction'), our management's
principal objectives for the Company in 2018 are to continue to manage the deliverables within our control and remain at
least cash neutral. I am pleased with the commissioning of the BTT as this will contribute low cost PGM ounces to the
Group over the next seven years.

We are making good progress with the Transaction and expect to complete in the second half of the 2018 calendar year. I
am particularly pleased that filings were submitted to the Competition Commission of South Africa in March 2018.
Subsequently meetings have been held with the Commission and further information provided. Pre-filing with the
Competition and Markets Authority in the UK also took place in April 2018.

The operating environment remains challenging, as the Company strives to balance economic, social and environmental
imperatives. The platinum mining industry has delivered negative returns in the last decade as a result of low platinum
prices and inflationary cost pressures. The challenging "lower for much longer" platinum pricing environment is creating
long-term damage to an already ailing industry which has sacrificed at least 26, 000 jobs in the last five years and continues
to under-invest in its future. Despite its great mining and processing assets, Lonmin continues to be hamstrung by the
macro economic challenges, its capital structure and liquidity constraints.

Comparing the Rand:USD exchange rates at the balance sheet dates, the Rand strengthened by 13% against the Dollar from
R13.55:$ at 30 September 2017 to R11.83:$ at 31 March 2018 driven by positive sentiments brought about by the election
of Mr Cyril Ramaphosa as President of the ANC in December and subsequently as President of South Africa in February
2018. Early efforts to root out the perceived corruption and appointing competent boards at State Owned Enterprises have
been warmly welcomed, with credit rating agencies holding out on downgrading South Africa. However, the recent
renewal of service delivery protests poses a real threat to the renewed confidence and the "new dawn".

Lonmin remains in net cash positive position at the end of the period with net cash of $17 million as at 31 March 2018.
However, normalising this figure to allow for the smelter lock-up of $47 million would result in net cash at March 2018 of
$64 million, which would have been in-line with the net cash of $63 million at 31 December 2017. The lock-up is expected
to unwind within the second half of the year. In addition, the smelter clean-up project is expected to deliver around 13,000
PGM ounces, equivalent to around $13 million of cash inflows in H2 2018.

We have succeeded in making progress in this tough operating environment by improving our production performance and
remaining fatality free for the last ten months, notwithstanding the anxiety weighing on our employees caused by the
lengthy period to close the Transaction. We are continuing with the removal of high cost ounces and the related
restructuring of our business, together with the operational efficiency improvement program which commenced in 2015,
which would potentially see 12,600 employees and contractors removed over the three financial years of FY2018, FY2019
and FY2020. Of the 3,700 employees (including approximately 800 contractors) we expect to be impacted in the current
year, 1,993 employees and contractors have already been impacted during this period, including through natural attrition,
with a net reduction in headcount of 1,504. I thank our employees for their continued resilience and maintaining focus in a
challenging environment.

2. Safety

I am particularly pleased that Lonmin is now 10 months fatality free since July 2017. Our safety strategy is centred on the
belief that Zero Harm is achievable and important contributions are required from all stakeholders to achieve this. Lonmin
is grateful to the collaboration among its management, employees and the Rustenburg DMR Inspectorate. All our
Generation 2 shafts are currently on millionaire status (fatality free shifts), notably Saffy shaft is on 6.0 million fatality free
shifts (four years).

Lost Time Injury Frequency Rate ("LTIFR") improved by 8.6% to 4.13 at 31 March 2018 from 4.52 at 30 September 2017 on
a 12 month rolling basis. Year on year, the LTIFR has improved by 16%. Our Total Injury Frequency Rate ("TIFR") improved
13% to 10.39, from 11.92 at 31 March 2017.

Several Processing plants have achieved one year or more Lost Time Injury ("LTI") free status, i.e. Assay Lab � 12 years LTI
free and K4 Concentrator and the PMR are both two years LTI free.

We believe that this good performance is as a result of our heightened focus on positively influencing employee behaviour.
The Near-Miss programme rolled out throughout the operations and the proactive cross-site audits to verify levels of
compliance with Lonmin Life rules are enabling the identification of underlying high potential risks and assisting the
organisation to manage proactively the risks and hazards. We continue to carry out frequent safety inspections to ensure
learnings from serious injuries and fatalities from the industry are implemented.

We are continuing to see a reduction in the number and impact of Section 54s stoppages. The number of Section 54s
issued in the first half of FY18 (17) is 50% lower than the previous year (34). We believe this is a reflection of our improving
safety performance and our on-going efforts to effectively engage with the Department of Mineral Resources (DMR), as
well as developing an improved understanding and working relationship with the inspectorate and our employees and
organised labour.

3. Production Performance

Mining Operations

Generation 2 shafts
Tonnes mined from our Generation 2 shafts were 3.5 million tonnes, an increase of 6.4% or 211,000 tonnes on the prior
year period.
    - K3, our biggest shaft, produced 1,339,000 tonnes in H1 2018, an increase of 14.2% on the prior year period.
    - Saffy shaft produced 1,019,000 tonnes in H1 2018, an increase of 2.9% on the prior year period, demonstrating
      that the shaft is maintaining its steady state performance, and is now focused on efficiency improvements.
    - Rowland shaft produced 866,000 tonnes in H1 2018, a decrease of 1.2% or 10,000 tonnes on the prior year as
      mining levels reach the extremities of Rowland's lease area and the reducing IAOR at the operation and the
      resultant limited mining flexibility. Rowland's IAOR now stands at 10.2 months and Lonmin believes that the shaft
      has sufficient IAOR for at least the current financial year. The shaft's future flexibility to continue to operate at
      optimal levels post the current financial year will be compromised in the event third party funding for its MK2
      extension project is not secured. Lonmin is progressing discussions to secure partial third party funding for this
      project.
    - On completion of the Pandora acquisition, combined with the progress made pursuant to our recovery plans, the
      E3 shaft and Pandora production have been combined and reclassified as a Generation 2 shaft, with comparative
      numbers adjusted accordingly. The combined area produced 294,000 tonnes, an increase of 9.7% on the prior year
      period.

Generation 1 shafts
The performance at the Generation 1 shafts is in line with our plan to reduce high cost production in a low price
environment. Tonnes mined from our Generation 1 shafts (4B, Hossy, W1 and E1 and E2) were 1.1 million tonnes, a
decrease of 19.4%, or 260,000 tonnes on the prior year period, reflecting the expected decline in production. The decrease
is also due to both Newman and E2, which produced in H1 2017, now being on care and maintenance. E2 shaft was put on
care and maintenance in November 2017 due to the remaining limited reserves becoming uneconomical to mine in the
current macro-economic environment.

As previously reported, following a review of 4B's performance and reserve life, this shaft was reclassified as a Generation
1 shaft and comparative numbers adjusted accordingly. 4B produced 596,000 tonnes, a decrease of 12.5% on the prior year
period, as the challenging geological conditions persist and mining on the UG2 reef horizon approaches the end of the
resource life.

As W1 and E1 are mining remnant areas, these shafts are at the end of their resource lives and contractors continue to
operate them and they are responsible for all the costs associated with such shafts. Lonmin pays a predetermined rate per
tonne, which has been reduced in line with Lonmin's cost cutting measures. We thus retain the flexibility to cease
production if and when unprofitable.

Hossy shaft was scheduled to be put on care and maintenance, but it continues to demonstrate potential to contribute to
the business. Based on this and the available and planned IAOR, we will continue to operate Hossy for the duration of FY 2018.


Ore Reserve Development
Summary of Immediately Available Ore Reserves

                                                       (m(2) '000)                        Months
                                                       31 Mar 2018       30 Sep 2017      31 Mar 2018     30 Sep 2017
K3                                                             761               844             17.0            18.9
Saffy                                                          691               772             21.9            24.5
Rowland                                                        320               309             10.9            11.2
E3 Total                                                       326               345             27.1            28.7
Generation(2)                                                2 098             2 270             17.8            19.6
Generation(1)                                                  539               700             17.6            17.2
K4                                                             188               188                -               -
Lonmin Total                                                 2 825             3 158             17.8            19.0

    -   We closely monitor our Immediately Available Ore Reserve position, in order to protect our operational flexibility.
    -   The ore reserve position of the Marikana mining operations at 2.8 million square metres represents an average of
        16.7 months' production, down from 19.0 from September 2017, but still well above the industry benchmark of
        around 15 months.
    -   The decrease in Rowland available ore reserve to 10.9 months is due to current mining levels reaching the
        extremities of Rowland's lease area and remains a concern.

Production Losses
We are encouraged that tonnes lost due to Section 54 safety stoppages for the first half of the year were significantly lower
at 15,000 tonnes compared to the prior year period of 194,000 tonnes. This emphasised our improving safety record and
continued proactive engagement with all stakeholders including unions, employees and the DMR Inspectorate.

We are continuing to see a reduction in the number and impact of Section 54s, with seventeen stoppages issued in the first
half of the year, compared to thirty four in the previous year.

                                                                                              H1 2018        H1 2017
                                                                                               Tonnes         Tonnes
Section 54 safety stoppages                                                                    15,000        194,000
Management induced safety stoppages                                                            62,000        130,000
Total tonnes lost                                                                              77,000        324,000

Process Operations

Platinum production (Metals-in-Concentrate) was 307,862 ounces, an increase of 5.8% on the prior year period and PGM
production (Metals-in-Concentrate) was 590,257 ounces, an increase of 5.7% on the prior year period.

Concentrator production - Mining
Total tonnes milled from mining operations in the period under review were 4.7 million tonnes, up 1.4% or 0.1 million
tonnes, on H1 2017.

Underground milled head grade was 4.57 grammes per tonne, marginally higher than the 4.56 grammes per tonne from H1
2017. Underground concentrator recoveries for the half year remained excellent at 87.5%, exceeding the 86.8% achieved in
H1 2017.

Concentrator production - BTT
The BTT project was successfully hot commissioned on 14 February within budget, and is on track to ramp up and reach full
throughput during H2 2018. Once at steady-state, the project is expected to deliver amongst the lowest cost ounces in the
Lonmin portfolio, producing about 29,000 ounces of Platinum per year or some 55,000 ounces of PGMs. The project is
expected to be mined over a seven-year period and further tailings dams are being explored for life extension.

Since commissioning in February, 347,000 tonnes were milled from the BTT project, equivalent to 759 Platinum ounces and
1,440 PGM ounces. The feed from the BTT project will have relatively low milled head grade and recovery rates when
compared to underground ore. We expect the current levels to improve as the project continues to ramp up and for milled
head grade and recovery rates to average 1.4 grams per tonne and 31% respectively over the life of the project.

Smelting and Refining
Total saleable refined Platinum production for H1 2018 at 284,011 ounces was 5.7% or 17,249 ounces lower than H1 2017,
due to the lock-up of 47,000 PGM ounces as a result of the unplanned outage on Furnace Number One on 2 December
2017 as previously reported. We expect the lock-up of ounces to unwind within the second half of the financial year.

There was no release of Platinum ounces from the smelter clean-up project during this period due to the furnace outage,
compared to the 10,295 Platinum ounces release in H1 2017. It is expected that circa 13,000 PGM ounces will be released
from the smelter clean-up project during the second half of the year.

Platinum sales for the six months period were 287,749 ounces, 6.3% lower than prior year period; this included 7,525
Platinum ounces equivalent of BMR concentrate sold, to unlock some of the cash associated with the lock-up. PGM sales of
554,637 ounces were achieved, 9.1% lower than prior year period. The mix of metals sold increased revenue by $19
million mainly due to the higher proportion of Platinum and Palladium sold in H1 2018.

Furnace Number One was recommissioned after the unplanned outage, with the first matte tap taking place on 13
February. Number Two furnace was on a planned shut-down from 3 April and has since been started up and is now
operating.

Shaft Head Cost Per Tonne and Per PGM Ounce
The Generation 2 shafts shaft head cost per tonne and per PGM ounce were R1,014 and R8,083 respectively, an increase
on H1 2017 of 6.2% and 4.3%.
    - At K3, the shaft head cost per tonne and per PGM ounce was R1,000 and R8,677 respectively, a decrease on H1
      2017 of 3.0% and 4.2%, due to the higher volumes, offset by higher spend.
    - At Rowland, the shaft head cost per tonne and PGM ounce at R1,043 and R8,508 respectively represented cost
      increases on H1 2017 of 11.2% and 14.0%, reflecting the lower volumes.
    - Saffy has become and remains one of our lowest cost Generation 2 shafts at R958 per tonne and R7,037 per PGM
      ounce. There was an increase on H1 2017 of 8.0% and 2.5% respectively.
    - At E3 shaft (Lonmin), the shaft head cost per tonne and per PGM ounce was R1,275 and R9,115 respectively, an
      decrease on H1 2017 of 1.8% and 20.3%, following the volume increases associated with the Pandora acquisition.

4. Funding and Liquidity, Profitability, Costs and Capital Expenditure

As at 31 March 2018, the Group had gross cash of $167 million. Net cash after deducting the term loan of $150 million
from the gross cash, was $17 million compared with net cash of $75 million at 31 March 2017, due to the $47 million
locked up by the smelter outage and expected to release in the second half of the financial year. As detailed in the
Financial Review section, the Group has undrawn debt facilities which are subject to financial covenants, which include that
the consolidated tangible net worth (TNW) of the Group will not be at any time less than $1,100 million. TNW has been
below this threshold since 30 September 2017 and covenant waivers were agreed with the lenders during the period under
review. At 31 March 2018 the TNW of the Group was significantly below the waived covenant threshold at $631 million
(September 2017 - $674 million). The covenant waivers are conditional on the completion of the acquisition of the
Transaction; consequently, the waiver period runs to 28 February 2019, the long stop date of the Transaction, or until the
Transaction closes or lapses (if earlier). The outcome of conditions precedent to the Transaction represents a material
uncertainty to the completion of the Transaction and going concern assumptions. The external auditors in their review
report draw attention to the material uncertainty over going concern. More detail is available in the Financial Review
section as well as note 9 to the accounts.

Operating loss was $32 million, compared to operating loss of $181 million (which included an impairment charge of $146
million) in the prior year period on revenue of $561 million (H1 2017 - $486 million).

Measures to improve liquidity as part of the Operational Review are in progress as detailed below:

Chrome revenue
The historical pricing in our legacy chrome contract is not aligned to the current market pricing. This is extremely
prejudicial to Lonmin and is not sustainable. This contract constitutes 80% of our chrome production. We are working with
our partner to find an equitable solution.

Cost of Production per PGM Ounce
Unit costs for the six months under review were R12,983 per PGM ounce, a 7.7% increase on H1 2017, primarily reflecting
the 8% wage increase, lock-up of metals and higher variable costs. The release of the metal lock-up position in H2 is
expected to have a positive impact on smelting and refining unit costs. This expectation, combined with the fact that the
second half of the financial year is traditionally our strongest, and absent any unexpected interruptions to the smooth
running of operations, allows us to maintain our guidance for unit costs, at the upper end of the R12,000-R12,500 per PGM
ounce range for the full year.

Sale of BMR concentrate
7,525 Platinum ounces equivalent of BMR concentrate were sold to unload some of the cash associated with the lock-up.

Capital Expenditure
Our strategy is to minimise capital expenditure whilst ensuring compliance with regulatory and safety standards and
ensuring that the Immediately Available Ore Reserve position is maintained at the level necessary to support planned
production at the Generation 2 shafts. Capital expenditure in H1 was limited to R411 million (around $33 million compared
with R612 million (around $45 million) in the prior year period as we continue to use capital expenditure as a cash
management lever. Accordingly, the stay in business capital which is considered low risk, was deferred.

The BTT construction was largely completed in the FY 2017, and the capital spent in this period of R57 million mainly
related to commissioning.

The capital spent on smelting and refinery of R81 million was largely on rebuilding Furnace Number One. Capital invested
in the period included R84 million for the Rowland MK2 project and only the 26 level project is being continued on K3, with
capital spend of R38 million.

Rowland MK2 project is underspent mainly due to containment of capital spend in a cash strained environment. Lonmin is
progressing discussions to secure partial third party funding for this project. Timing of the funding is of the essence since
capital allocation for MK2 is expected to run out in the third quarter and we have investigated a contingency plan to have
limited ore extraction from this project should the negotiations stall. The shaft's future flexibility to continue to operate at
optimal levels post the current financial year will be compromised in the event third party funding for its MK2 extension
project is not secured.

As a result of the deferrals, we have reviewed and revised our capital expenditure guidance for the current year to
between R1.2billion and R1.3 billion from our original guidance of R1.4 billion to R1.5 billion, whilst minimising the near
term impact on production. As in previous years, capital expenditure will be H2 weighted.

The capital spent on infill apartments was $46 million, marginally higher than in H2 2017, and the delivery of 447 units by
December 2018 remains on schedule.

Summary of Capital Expenditure:

                                                     6 months to   6 months to       12 months to          12 months to
                                                     31 Mar 2017   31 Mar 2018        30 Sep 2018           30 Sep 2018
                                                                                 Revised Guidance     Original Guidance
                                                              Rm            Rm                 Rm                    Rm
K3                                                           103            38                130                   157
Rowland                                                       14            19                 55                    61
Rowland MK2                                                  111            84                117                   137
Saffy                                                          2            12                 21                    29
Generation 2 shafts                                          230           152                323                   385
K4                                                             5             -                  -                     2
Hossy                                                          -             5                 42                    30
Generation 1 & 3 shafts                                        5             5                 42                    32
Central and other mining                                      49            20                120                   139
Total Mining                                                 284           177                485                   556
Concentrators � Excl BTT                                      67            36                130                   159
BTT                                                          146            57                 74                    59
Smelting & Refining                                           45            81                318                   324
Total Process                                                258           175                522                   542
Hostel / Infill Apartments                                    43            46                161                   191
Other                                                         27            14                 51                    40
Total                                                        612           411              1,219                 1,329
   
5. PGM Market Overview

Palladium traded at a premium to platinum over the six months under review for the first time since 2001. The palladium
price rose 4% to $970/oz having traded as high as $1,129/oz in January. Platinum underperformed rising 3% to $936/oz,
while rhodium was the clear outperformer gaining 72% to $2,040/oz.

Platinum jewellery demand continued to struggle in China, its largest market, but the broader jewellery market is
improving which could help stabilise platinum jewellery demand. Automotive platinum demand declined as growth in
global light and heavy duty commercial vehicle sales have so far added insufficient demand to offset the declining Western
European diesel passenger car market, which is set to continue to shrink, albeit at a slower pace. Global light vehicle sales
are rising and gasoline is gaining share in Europe resulting in strong demand for palladium and rhodium, which has resulted
in elevated lease rates.

Platinum's contribution to Lonmin's PGM basket revenues reduced from 65% to 53%, while Palladium improved by 6 points
to 27% and Rhodium increased from 9% to 14% of the total revenue basket.

Pie chart of relative contribution to basket of each metal between 2017 and 2018.

                                                                                                     2018       2017
Iridium                                                                                                3%         2%
Ruthenium                                                                                              2%         1%
Rhodium                                                                                               14%         9%
Gold                                                                                                   2%         2%
Palladium                                                                                             27%        21%
Platinum                                                                                              53%        65%
                   

6. Greater Lonmin Community

As part of our values as a Company, we continue to make improvements in the lives of our immediate communities and
labour sending areas. One of the achievements I am proud to announce is the launch of our Grievance System, aptly
named Buang Le Rona (meaning talk to us), which is aimed at opening even further the ways in which our community can
engage with Lonmin. The system went live in April 2018.

We have also continued to invest in the areas of community healthcare, education and social infrastructure, and recently
opened two schools. I am particularly proud of the work that the Sixteen Eight Memorial Trust has done and I wish our
three beneficiaries who have graduated from their respective tertiary institutions well as they pursue their future
ambitions.

Focus has also continued on initiatives to improve the general wellbeing of our employees including housing and living
conditions, and the delivery of 447 infill apartments by December 2018 remains on schedule, as mentioned under the
capital expenditure section.

Our ambulance programme saw 21 panel vans secured and converted into 17 ambulances, with one patient transporter
donated to the Department of Health as part of our Social Labour Plan commitments.

Our Employee Indebtedness Rehabilitation Programme has saved employees approximately R7 million.

As Lonmin we will continue to collaborate and create shared value with our stakeholders and communities, because we
believe that with collaboration, trust and respect, we can unearth the true potential of our social partners and our
business.

7. Board Update

As announced on 13 March 2018, Dr Len Konar, who had been a non-Executive Director of the Company since 2010,
decided to retire from the Lonmin Board with effect from 14 March 2018. We thank Len for his contribution to Lonmin and
wish him well in his international endeavours.

8. Update on offer by Sibanye Stillwater

Lonmin's Operational Review in 2017, focused on determining the best ways of preserving value for shareholders and
safeguarding the long-term interests of employees and all key stakeholders, and this was superseded by the recommended
offer from Sibanye-Stillwater to acquire Lonmin.

The consolidation of Sibanye-Stillwater and Lonmin will increase utilisation of Lonmin's under-utilised processing capacity.
The consolidation of Rustenburg Platinum Mines, Aquarius South Africa & Marikana is the most rational geographic and
strategic fit due to the geographical proximity of mines and it will facilitate the rationalisation of the K3/Siphumelele mine
boundary. The combination will unlock operational synergies and will enable Sibanye-Stillwater to become a fully
integrated PGM producer in South Africa.

Some of the key milestones for Transaction closure include competition and regulatory approvals in relevant jurisdictions,
approval by Lonmin and Sibanye-Stillwater shareholders following all regulatory approvals, and UK court approval of the
scheme of arrangement to implement the Transaction. The South African and UK Competition Commission filings were
both submitted during this period. We expect the Transaction to close in the second half of the 2018 calendar year.

9. Outlook and Guidance

We are maintaining our sales guidance at between 650,000 and 680,000 Platinum ounces for the full year.

Unit cost guidance for the full year is being maintained at the upper end of the range of between R12,000 and R12,500 per
PGM ounce. The reversal of the metal lock up due to the furnace outage in the first half and the recommissioning of
Furnace Number One is expected to have a positive impact on unit costs in the second half. Mining production in the
second half of the year is traditionally stronger, which results in better unit costs in the second half. We therefore expect
the production levels to contribute to the reduction in unit cost per PGM ounce in the second half, and accordingly, we are
maintaining unit cost guidance for the year.

Full year capital expenditure guidance revised to between R1.2 billion and R1.3 billion from our original guidance of
between R1.4 billion and R1.5 billion with no expected impact on current year production.

10. Conclusion

The Lonmin team remains focused on operational excellence, and dealing successfully with the tougher conditions that
currently face our entire industry. I'm particularly pleased with a third consecutive fatality free quarter. We expect the $47
million of metals lock-up to be released in the current half year. Sales volumes in the second half of the year normally
exceed those of the first half. Our smelting and refining division is now able to operate at full capacity. These factors
underpin our net cash at the year-end. We remain hamstrung by our capital structure and liquidity constraints which limit
our ability to exploit our high quality ore reserves and assets. In current conditions, approximately 12,600 jobs in Lonmin
are at risk over the next three years. The Transaction with Sibanye-Stillwater would provide a far stronger base for all our
stakeholders including employees and we are focused on its successful completion. Our sales guidance for the full-year is
650k oz to 680k oz of Platinum. I am grateful to all the employees who have continued to show their commitment to
contributing to the business.

Ben Magara
Chief Executive Officer
12 May 2018


FINANCIAL REVIEW

Liquidity and Funding

The Group had gross cash of $167 million at 31 March 2018 together with a fully drawn term loan of $150 million. An
unplanned outage at the Number One furnace in December 2017 resulted in an inventory lock-up of 47,000 PGM ounces or
c$47 million which is expected to be released in the second half of the year. The debt facilities available to the Group are
subject to financial covenants, which include that the consolidated tangible net worth (TNW) of the Group should not be at
any time less than $1,100 million. TNW has been below this threshold since 30 September 2017 and covenant waivers
were agreed with the lenders during the period under review. The covenant waivers are conditional on the completion of
the acquisition of the Group by Sibanye-Stillwater (the Transaction). The waiver period runs from 30 September 2017 to 28
February 2019, the long stop date of the Transaction or until the Transaction closes, lapses or is withdrawn, if sooner. A
condition of the waivers was that $66 million of the revolving credit facilities was cancelled and that the Group leaves
undrawn all remaining revolving credit facilities during the waiver period. At 31 March 2018 the TNW of the Group was
significantly below the waived covenant threshold at $631 million (September 2017 - $674 million). See note 9 to the
interim financial statements for further details. The other debt covenants are well within thresholds and are not
considered to be at risk.

As disclosed in note 1 to the interim financial statements the covenant waiver on the existing debt facilities is conditional
on the completion of the Transaction. The key conditions precedent to the Transaction are receipt of relevant clearances
from the competition authorities in South Africa and the UK and approval from Lonmin Plc and Sibanye-Stillwater
shareholders. As previously reported in the 2017 Financial Statements which were published on 22 January 2018, whilst it
is not a condition of the Transaction the Directors anticipate that the Sibanye-Stillwater shareholders would have a
preference for Lonmin to be in a net cash position after repaying the $150 million term loan. We are not in full control of
the approvals and there is a risk that the Group net cash position could be materially impacted by adverse changes in PGM
prices, Rand:Dollar exchange rates or operational factors. This introduces a material uncertainty that requires
consideration in the assessment of going concern.

On, or immediately prior to, completion of the Transaction the facilities agreements require that the $150 million term
loan is repaid and the debt facilities cancelled. In the event that the Transaction does not complete, the waiver will cease
to apply and the TNW covenants will be reinstated. If they are then breached, the $150 million loan may be required to be
repaid. The covenant waivers allow for a 20 business day grace period whilst other options are pursued on condition that
the Company is engaging with the lenders. During the 20 day grace period the Company will not be required to repay the
loan. During this period, the feasibility of an asset sale to Sibanye-Stillwater, as contemplated in the Rule 2.7
announcement as well as any other alternative transactions will be assessed by the Board, including revisiting some
opportunities identified during the Operational Review in the prior year. If alternative transactions do not provide
sufficient proceeds to repay the Group's borrowings, or if the Group itself does not have sufficient gross cash reserves,
then the lenders are likely to withdraw their facilities and the Group is likely to be unable to meet its liabilities as they fall
due.

The external auditors in their review report draw attention to the material uncertainty over going concern. Whilst there
exists an inherent uncertainty regarding the liquidity of the Group, the Directors consider that it remains appropriate to
prepare the accounts on a going concern basis. Operational measures to improve liquidity are in progress as detailed in the
CEO's review.

Overview

The Dollar PGM basket price in H1 2018 was 27% higher than H1 2017. Whilst the platinum price was on average 1% lower
than H1 2017 the average Palladium price achieved was 39% higher and the average Rhodium price achieved was 101%
higher than H1 2017. See the CEO's review for further details on the PGM market.

PGM volumes sold were 9% lower than H1 2017 due to restricted processing capacity following an unplanned outage of
the Number One furnace in December 2017. The lock-up of inventory amounted to 47,000 ounces of PGMs which is
expected to be released in the second half of the year.

Cost in Rand terms increased by R1,096 million or 16% driven by the 8% wage increase and R230 million of costs incurred
for voluntary separation packages, restructuring and transaction costs. Concentrate purchases increased by R173 million;
shaft head costs increased by R195 million associated with the acquisition of the remaining 50% in the Pandora joint
venture, offset by a reduction of R94 million in ore-purchases from the joint venture compared to the prior year period; the
cost of the K3 chrome plant was R91 million (H1 2017 - Rnil) as the costs are recognised gross under the new, more
favourable contract; and the start-up of the bulk tailings treatment plant increased costs by R75 million.

The Rand was on average 6% stronger against the Dollar when comparing period on period and the increase in costs in
Dollar terms was 24% or $123 million.

The cost of production per PGM ounce at R12,983 was 8% higher than H1 2017 driven by the 8% wage increase, the lock up
of metals in process at the smelter which contributed an estimated R117 per ounce as well as higher variable costs. Further
details on unit costs can be found in the Operating Statistics section of the Report.

The operating loss for H1 2018 was $32 million compared to a loss of $181 million including an impairment charge of $146
million in H1 2017. The depreciation charge was $29 million lower period on period due to the impact of the impairment
on the carrying amount of assets in 2017. Loss before interest, tax, depreciation and amortisation (LBITDA) for H1 2018 was
$(26) million, a decline of $26 million on H1 2017 as the increase in metal prices was more than offset by the strength of
the Rand against the Dollar and cost escalations.

Net cash at 31 March 2018 was $17 million being gross cash of $167 million offset by the drawn term loan of $150 million.
This was $86 million lower than 30 September 2017 and $46 million lower than December 2017. However, normalising for
the smelter lock-up of $47 million would reduce the decrease on September 2017 to $39 million and net cash at March
2018 would have been in-line with December 2017. The cash outflow from operations for the period was $48 million, a
decrease of $10 million on H1 2017 driven by the decreased profitability. Capital expenditure in the period was $33 million,
a decrease of $12 million on H1 2017 due to the implementation of cash conservation measures.

Income Statement
                                                                                Six months to 31 March
                                                                                     2018         2017
                                                                                       $m           $m
Revenue                                                                               561          486
South African operating cost of sales                                               (575)        (479)
Other operating costs                                                                (12)          (7)
LBITDA                                                                               (26)            -
Depreciation                                                                          (6)         (35)
Impairment of Marikana & Akanani CGU                                                    -        (146)
Operating loss                                                                       (32)        (181)
Foreign exchange arising on the step acquisition of Pandora                          (24)            -
Net financing income / (expense)                                                        5         (15)
Share of loss of equity accounted investment                                            -          (3)
Loss before tax                                                                      (51)        (199)
Tax                                                                                  (16)         (15)
Loss after tax                                                                       (67)        (214)

Revenue
Total revenue for H1 2018 of $561 million reflects an increase of $74 million compared to H1 2017. The US Dollar PGM
basket price (including by-products) increased by 27% compared to the H1 2017 average price, resulting in an increase in
revenue of $83 million. In Rand terms the basket price (including by-products) increased by 19% as the stronger Rand
partially offset the overall increase in Dollar prices. The average prices achieved on the key metals sold are shown below:

                                                                              Six months ended 31 March
Sales volumes                                                                        2018          2017
Platinum                                                            $/oz              947           960
Palladium                                                           $/oz            1,009           727
Rhodium                                                             $/oz            1,609           800
6E PGM basket (including by-product revenue)                        $/oz            1,011           797
                     
PGMs sales (including BMR concentrate sales)                        koz               555           610
                      
Revenue                      
Platinum                                                            $m                273           295
Palladium                                                           $m                136            96
Gold                                                                $m                 11             9
Rhodium                                                             $m                 72            41
Ruthenium                                                           $m                 10             3
Iridium                                                             $m                 14            10
PGMs                                                                $m                516           454
Nickel                                                              $m                 15            15
Copper                                                              $m                  7             1
Chrome                                                              $m                 23            16
Total revenue                                                       $m                561           486
                      
Average FX rate for the period                                      ZAR/USD         12.78         13.56
                     
Rand PGM basket (including by-product revenue)                      R/oz          R12,920       R10,852

The PGM sales volume for H1 2018 was 9% lower compared to H1 2017, which had a negative impact on revenue of $41
million. This was mainly attributable to the lock-up of inventory as described above.

The mix of metals sold increased revenue by $19 million mainly due to the higher proportion of Platinum and Palladium
sold in H1 2018. Base metal revenue increased by $13 million largely as a result of an increase in prices compared to H1
2017.

Costs
In Rand terms South African operating costs for H1 2018 at R7.9 billion were c16% or cR1.1 billion higher than H1 2017. The
impact of the stronger Rand against the Dollar meant that in Dollar terms costs increased by 23% to $622 million.

                                                                                          $m        Rm
H1 2017 � South African operating costs                                                (504)   (6,818)
                                      
(Increase)/decrease:                                      
Mining including bulk tailings                                                          (39)     (525)
Concentrating including bulk tailings                                                    (2)      (21)
Smelting and refining                                                                    (7)      (94)
K3 chrome plant                                                                          (7)      (91)
Ore purchased from Pandora JV                                                              7        94
Concentrate purchases                                                                   (13)     (173)
Overheads and centralised services:                                       
    - Voluntary separation packages                                                     (12)     (161)
    - Transaction costs                                                                  (5)      (69)
    - Other overheads and centralised services                                           (4)      (55)
H1 2018 � South African operating costs                                                (585)   (7,914)
                                      
Foreign exchange impact                                                                 (37)
                                      
H1 2018 � South African operating costs                                                (622)

Mining costs including bulk tailings increased by R525 million or 12% period on period driven by the 6% increase in tonnes
mined at the Generation 2 shafts, escalation and R195 million of shaft head costs associated with the acquisition of the
remaining stake of 50% in the Pandora joint venture, offset by a reduction of R94 million in ore-purchases from the joint
venture. Bulk tailings commenced ramp up in February 2018 and mining cost associated with bulk tailings amounted to R23
million in the period (H1 2017 � Rnil). Additional overtime cost was incurred as well as increased contractor costs to
mitigate the impact of lower than planned productivity improvements.

Concentrating costs included bulk tailings concentrating costs of R52 million (H1 2017 � Rnil) which drove an overall
increase in costs of R21 million or 3%, in-line with the increase in volumes. Smelting and refining costs were R94 million or
13% higher than the prior year period driven by escalation, the running of the higher cost pyromet furnaces during the
outage at the Number One furnace, lower grade material due to the impact of the bulk tailings stream and an increase in
security costs. A more favourable contract for the K3 chrome plant commenced in September 2017. This was structured in
a different manner to the previous contract with revenue and costs recognised gross rather than net. As a result operating
costs of R91 million were recognised in H1 2018 compared to Rnil in H1 2017.

Ore purchases from the Pandora joint venture ended in December 2017. Concentrate purchases increased by R173 million
period on period driven by increased volumes following the commencement of a new concentrate purchase agreement in
H2 2017.

The cost of voluntary separation packages (VSPs) associated with the s189 process amounted to R161 million in H1 2018.
Transaction costs relating to the Operational Review, the Transaction with Sibanye-Stillwater to date and the acquisition of
Pandora amounted to R69 million in H1 2018.

UK costs at $12 million were $5 million higher than the prior year period due to $7 million restructuring and transaction
costs incurred in H1 2018.


LBITDA
The $26 million decline between the LBITDA of $nil for H1 2017 and LBITDA of $(26) million for H1 2018 is analysed below:

                                                                                                           $m
H1 2017 LBITDA                                                                                              -
                               
PGM price                                                                                                   83
PGM volume                                                                                                (41)
PGM mix                                                                                                     19
Base metals                                                                                                 13
Revenue changes                                                                                             74
                              
South African operating cost increases excluding foreign exchange impact                                  (81)
Foreign exchange impact on Rand costs                                                                     (37)
Non-South African costs increases                                                                          (5)
Cost changes                                                                                             (123)
                              
Metal stock movement excluding foreign exchange impact                                                      30
Foreign exchange impact on metal stock                                                                      23
Metal stock movement                                                                                        53
                              
Increase in foreign exchange loss on working capital                                                      (30)
                              
H1 2018 LBITDA                                                                                            (26)

Exchange rate impacts
The Rand strengthened by 6% against the US Dollar during the period averaging R12.78/$ in H1 2018 compared to an
average of R13.56/$ in H1 2017 resulting in a $44 million negative impact on the underlying operating cost of sales.

                                                                                    Six months ended 31 March
                                                                                         2018             2017
                                                                                          R/$              R/$
Average exchange rate                                                                   12.78            13.56
Closing exchange rate                                                                   11.83            13.42
                                             
                                                                                                          2018
                                                                                                            $m
Period on period Dollar cost increase due to impact of stronger Rand                                      (37)
Foreign exchange impact on metal stock                                                                      23
Period on period increase in exchange losses on working capital                                           (30)
Net impact of exchange rate movements on operating profit                                                 (44)

Metal stock movement
Excluding the impact of exchange rate movements the increase in metal stock of $30 million comprised an increase in
metal stock of $59 million in H1 2018 compared with $29 million in H1 2017.

Depreciation and amortisation
Depreciation and amortisation decreased by $29 million period on period driven by the impairment of assets in 2017.

Net finance costs
                                                                                     Six months ended 31 March
                                                                                      2018                2017
                                                                                        $m                  $m
                 
Net bank interest                                                                      (3)                 (2)
Bank fees                                                                              (3)                 (4)
Unwinding of discounting on environmental provisions                                   (5)                 (5)
Foreign exchange gains on net cash                                                      16                   4
HDSA receivable � accrued interest receivable                                           15                  12
HDSA receivable � exchange gains / (losses)                                             19                (12)
HDSA receivable � impairment                                                          (34)                 (8)
Net finance income / (expense)                                                           5                (15)

Net finance income of $5 million for H1 2018 increased by $20 million on H1 2017 driven by exchange gains due to the
Rand strength.

The net bank interest charge for the period was $3 million (H1 2017 - $2 million). Bank fees for the period amounted to $3
million (H1 2017 - $4 million) and included $1.4 million commitment fees on the draw-stopped RCFs. The commitment fees
of $1.0 million on the draw-stopped $147 million Rand RCF are only payable once the draw-stop is removed. Commitment
fees of $0.4 million on the draw-stopped $25 million Dollar RCF continue to be payable during the waiver period. Exchange
gains on net cash in H1 2018 amounted to $16 million (H1 2017 - $4 million) as the Rand strengthened by 13% in the period
under review compared with a strengthening of 2% in the prior year period.

The Historically Disadvantaged South Africans (HDSA) receivable is the Sterling loan to Phembani Group (Proprietary)
Limited (Phembani). The receivable is disclosed as a current asset as the preference shares are redeemable at any time on
or after 8 July 2015 at Lonmin's request. The receivable is secured on the HSDA's shareholding in Incwala, whose only asset
of value is its underlying investment in WPL, EPL and Akanani. It is not our current intention to request redemption as
Phembani could forfeit the loan and the 50.03% that Phembani holds in Incwala would revert to Lonmin. There is ongoing
engagement with Phembani around this matter.

The gross loan, excluding impairments in prior years of $450 million, attracted an exchange gain for the period of $19
million (H1 2017 � exchange loss of $12 million) due to the strengthening of Sterling against the US Dollar. The value of the
security is driven by the value of WPL, EPL and Akanani and was impaired to $nil at 30 September 2017 due to the decline
in the valuation of the Marikana operations. Prior year impairments are based in US Dollar, being the Group's functional
currency, resulting in no exchange gains on the impairment. Accrued interest on the loan in the period amounted to $15
million (H1 2017 - $12 million). The loan was impaired by $34 million in the period to offset interest accrued and exchange
gains in H1 2018 and bring the carrying value back to nil.

Taxation
The tax charge for H1 2018 was $16 million (H1 2017 � tax charge of $15 million) and comprised a current tax charge of $16
million (H1 2017 � $4 million) and a deferred tax charge $nil (H1 2017 � $11 million).

Cash Generation and Net Cash

The following table summarises the main components of the cash flow during the period:

                                                                                  Six months ended 31 March
                                                                                        2018           2017
                                                                                          $m             $m
                     
Operating loss                                                                          (32)          (181)
Depreciation and amortisation                                                              6             35
Impairment                                                                                 -            146
Changes in working capital and provisions                                               (31)           (61)
Deferred revenue received (net)                                                            7            24
Other non-cash movements                                                                   2            (1)
Cash flow utilised by operations                                                        (48)           (38)
Interest and finance costs                                                               (6)            (6)
Tax paid                                                                                 (8)            (4)
Trading cash outflow                                                                    (62)           (48)
Capital expenditure                                                                     (33)           (45)
Free cash outflow                                                                       (95)           (93)
Acquisitions                                                                             (4)            (1)
Transfer to restricted funds for rehabilitation obligation                               (3)            (8)
Cash outflow                                                                           (102)          (102)
Opening net cash / (debt)                                                                103            173
Foreign exchange movements                                                                16              4
Closing net cash                                                                          17             75
                     
Cash outflow utilised by operations in H1 2018 at $(48) million represented a decline of $(10) million compared H1 2017.
The decrease in profitability in the current year was partially offset by working capital movements which at $(31) million
were $30 million favourable to the prior year period. The final $7 million tranche of third party funding for the bulk tailings
treatment plant was received (H1 2017 - $24 million funding received). Around $4 million was spent on the project in the
first half of the year with the remainder to be spent in the second half of the year.

The cash outflow on interest and finance costs was in-line with the prior year period at $6 million. Tax paid in the period of
$8 million was $4 million higher than the prior year period as the parent company Lonmin Plc had no carried forward
assessed losses remaining to offset tax payable. Due to the financial position of WPL, changes to inter-group charge-out
arrangements were made which will mitigate this cash outflow going forwards.

Trading cash outflow for the period amounted to $(62) million (H1 2017 � (48) million).

Capital expenditure at $33 million was $12 million lower than the prior year period due to the implementation of cash
conservation measures.

The acquisition of the remaining 50% of Pandora was completed in the period. The upfront payment was $4 million with
the balance payable from distributable free cash flows from the Pandora operations over a period not exceeding six years.
The completion of the Pandora transaction unlocks significant synergies including allowing Lonmin to extend mining at
Saffy shaft without having to spend R2.6 billion of capital expenditure, of which R1.6 billion would have been required over
the next four years.

Management focus in the period was directed on safety, costs and production to protect liquidity with gross cash at 31
March 2018 of $167 million.

Barrie van der Merwe
Chief Financial Officer

Operating Statistics Operating Statistics

                                                                                         6 months to   6 months to
                                                                                            31 March      31 March
                                                                                Units           2018          2017
Tonnes mined(1)        Generation 2                    K3 shaft                    kt          1,339         1,173
                                                       Rowland shaft               kt            866           876
                                                       Saffy shaft                 kt          1,019           991
                                                       East 2 shaft combined(2)    kt            294           268
                                                         East 3 shaft              kt            193            39
                                                         Pandora (100%)            kt            101           229
                                                       Generation 2                kt          3,518         3,308
                       Generation 1                    4B shaft                    kt            596           682
                                                       Hossy shaft                 kt            272           330
                                                       Newman shaft                kt              -            50
                                                       W1 shaft                    kt             91            72
                                                       East 1 shaft                kt             90            75
                                                       East 2 shaft                kt             32           132
                                                       Generation 1                kt          1,081         1,341
                                                       Underground                 kt          4,599         4,649
                                                       Opencast                    kt             34            38
                       Lonmin (100%)                   Total tonnes mined (100%)   kt          4,634         4,686
                       % tonnes mined from UG2 reef (100%)                         %           72.1%         74.2%
                       Lonmin (attributable)           Tonnes mined                kt          4,583         4,572
Ounces mined(3)        Lonmin excluding Pandora        Pt ounces                   oz        287,642       280,745
                       BTT                             Pt ounces                   oz            759             -
                       Lonmin excl Pandora incl BTT    Pt ounces                   oz        288,401       280,745
                       Pandora (100%)                  Pt ounces                   oz          7,557        15,693
                       Lonmin incl Pandora & BTT       Pt ounces                   oz        295,958       296,438

                       Lonmin excluding Pandora        PGM ounces                  oz        553,703       538,136
                       BTT                             PGM ounces                  oz          1,440             -
                       Lonmin excl Pandora incl BTT    PGM ounces                  oz        555,144       538,136
                       Pandora (100%)                  PGM ounces                  oz         14,962        31,047
                       Lonmin incl Pandora & BTT       PGM ounces                  oz        570,106       569,183
Tonnes milled(4)       Marikana                        Underground                 kt          4,541         4,310
                                                       Opencast                    kt             12            49
                                                       Total                       kt          4,553         4,359
                       Pandora(5)                      Underground                 kt            101           229
                       BTT Plant(6)                    Total                       kt            347             -
                       Lonmin Platinum                 Underground                 kt          4,642         4,539
                                                       Opencast                    kt             12            49
                                                       BTT Plant(6)                kt            347             -
                                                       Total                       kt          5,001         4,588
Milled head grade(7)   Lonmin Platinum                 Underground                 g/t          4.57          4.56
                                                       Opencast                    g/t          4.42          4.42
                                                       BTT Plant(6)                g/t          1.13             -
                                                       Total                       g/t          4.33          4.56
Concentrator           Lonmin Platinum                 Underground                 %            87.5          86.8
recovery rate(8)                                       Opencast                    %            66.0          68.3
                                                       BTT Plant(6)                %            12.0             -
                                                       Total                       %            86.1          86.6

                                                                                         6 months to   6 months to
                                                                                            31 March      31 March
                                                                               Units            2018          2017
Metals-in-             Marikana                        Platinum                   oz         290,016       274,671
concentrate(9)                                         Palladium                  oz         134,964       126,868
                                                       Gold                       oz           7,192         6,915
                                                       Rhodium                    oz          41,227        38,933
                                                       Ruthenium                  oz          69,718        65,353
                                                       Iridium                    oz          14,396        13,535
                                                       Total PGMs                 oz         557,513       526,275
                       Pandora                         Platinum                   oz           7,557        15,693
                                                       Palladium                  oz           3,573         7,395
                                                       Gold                       oz              52           112
                                                       Rhodium                    oz           1,261         2,632
                                                       Ruthenium                  oz           2,105         4,319
                                                       Iridium                    oz             414           896
                                                       Total PGMs                 oz          14,962        31,047
                       BTT Plant(6)                    Platinum                   oz             759             -
                                                       Palladium                  oz             306             -
                                                       Gold                       oz               8             -
                                                       Rhodium                    oz              95             -
                                                       Ruthenium                  oz             219             -
                                                       Iridium                    oz              53
                                                       Total PGMs                 oz           1,440             -
                       Lonmin Platinum before          Platinum                   oz         298,332       290,364
                       concentrate purchases           Palladium                  oz         138,843       134,263
                                                       Gold                       oz           7,252         7,026
                                                       Rhodium                    oz          42,583        41,565
                                                       Ruthenium                  oz          72,042        69,673
                                                       Iridium                    oz          14,864        14,431
                                                       Total PGMs                 oz         573,916       557,322
                       Concentrate purchases           Platinum                   oz           9,530           603
                                                       Palladium                  oz           3,057           164
                                                       Gold                       oz              34             2
                                                       Rhodium                    oz           1,279            58
                                                       Ruthenium                  oz           1,948            99
                                                       Iridium                    oz             493            24
                                                       Total PGMs                 oz          16,340           950
                       Lonmin Platinum                 Platinum                   oz         307,862       290,966
                                                       Palladium                  oz         141,899       134,427
                                                       Gold                       oz           7,286         7,028
                                                       Rhodium                    oz          43,862        41,624
                                                       Ruthenium                  oz          73,990        69,771
                                                       Iridium                    oz          15,357        14,456
                                                       Total PGMs                 oz         590,257       558,272
                                                       Nickel(10)                 MT           1,460         1,437
                                                       Copper (10)                MT             945           893
              
                                                                                          6 months to  6 months to
                                                                                            31 March      31 March
                                                                               Units            2018          2017
Refined                Lonmin refined metal            Platinum                   oz         275,757       300,238
production             production                      Palladium                  oz         129,890       133,131
                                                       Gold                       oz           7,402         7,678
                                                       Rhodium                    oz          40,507        42,593
                                                       Ruthenium                  oz          61,260        68,726
                                                       Iridium                    oz          13,107        14,683
                                                       Total PGMs                 oz         527,922       567,048
                       Toll refined metal              Platinum                   oz             729         1,023
                       production                      Palladium                  oz             257           195
                                                       Gold                       oz              13             8
                                                       Rhodium                    oz              47            77
                                                       Ruthenium                  oz             142           236
                                                       Iridium                    oz              25            27
                                                       Total PGMs                 oz           1,213         1,566
                       Total refined PGMs              Platinum                   oz         276,486       301,261
                                                       Palladium                  oz         130,147       133,326
                                                       Gold                       oz           7,414         7,685
                                                       Rhodium                    oz          40,553        42,670
                                                       Ruthenium                  oz          61,401        68,962
                                                       Iridium                    oz          13,133        14,710
                                                       Total PGMs                 oz         529,135       568,614
                       BMR concentrate sales           Platinum                   oz           7,525             -
                       (Saleable refined               Palladium                  oz           3,211             -
                       Production)                     Gold                       oz             178             -
                                                       Rhodium                    oz           1,093             -
                                                       Ruthenium                  oz           1,815             -
                                                       Iridium                    oz             369             -
                                                       Total PGMs                 oz          14,192             -
                       Total saleable refined PGMs(11) Platinum                   oz         284,011       301,261
                                                       Palladium                  oz         133,358       133,326
                                                       Gold                       oz           7,593         7,685
                                                       Rhodium                    oz          41,646        42,670
                                                       Ruthenium                  oz          63,217        68,962
                                                       Iridium                    oz          13,502        14,710
                                                       Total PGMs                 oz         543,327       568,614
                       Base metals                     Nickel(12)                 MT           1,523         1,477
                                                       Copper(12)                 MT             871           846
Sales                  Refined metal sales             Platinum                   oz         280,224       306,996
                                                       Palladium                  oz         131,856       132,516
                                                       Gold                       oz           8,020         7,345
                                                       Rhodium                    oz          43,548        50,997
                                                       Ruthenium                  oz          62,847        97,676
                                                       Iridium                    oz          13,951        14,329
                                                       Total PGMs                 oz         540,445       609,858
                                                       Nickel(12)                 MT           1,537         1,728
                                                       Copper(12)                 MT           1,096           215
                                                       Chrome(12)                 MT         645,022       651,655
                                            
                       BMR concentrate sales(13)       Platinum                   oz           7,525             -
                                                       Palladium                  oz           3,211             -
                                                       Gold                       oz             178             -
                                                       Rhodium                    oz           1,093             -
                                                       Ruthenium                  oz           1,815             -
                                                       Iridium                    oz             369             -
                                                       Total PGMs                 oz          14,192             -
                       Lonmin Platinum                 Platinum                   oz         287,749       306,996
                                                       Palladium                  oz         135,067       132,516
                                                       Gold                       oz           8,198         7,345
                                                       Rhodium                    oz          44,641        50,997
                                                       Ruthenium                  oz          64,663        97,676
                                                       Iridium                    oz          14,320        14,329
                                                       Total PGMs                 oz         554,637       609,858
                       Base metals                     Nickel(12)                 MT           1,537         1,728
                                                       Copper(12)                 MT           1,096           215
                                                       Chrome(12)                 MT         645,022       651,655
Average prices                                         Platinum                 $/oz             947           960
                                                       Palladium                $/oz           1,009           727
                                                       Gold                     $/oz           1,290         1,207
                                                       Rhodium                  $/oz           1,609           800
                                                       Basket price of PGMs(14) $/oz             929           745
                                                       Basket price of PGMs(15) $/oz           1,011           797
                                                       Basket price of PGMs(14) R/oz          11,842        10,129
                                                       Basket price of PGMs(15) R/oz          12,920        10,852
                                                       Nickel(12)               $/MT           9,732         8,643
                                                       Copper(12)               $/MT           6,568         5,465
Capital                                                                           Rm             411           612
expenditure(16)                                                                   $m              33            45
Employees and          as at 31 March                  Employees                   #          23,516        24,922
contractors            as at 31 March                  Contractors                 #           7,524         7,658
                       as at 31 March                  Total                       #          31,040        32,580
Productivity           m(2) per mining employee        K3 shaft          m(2)/person             5.3           4.7
(Generation 2)         (shaft head)                    Rowland shaft     m(2)/person             5.4           5.4
                                                       Saffy shaft       m(2)/person             5.2           5.0
                                                       E3 shaft combined m(2)/person             4.6           3.9
                                                       Generation 2      m(2)/person             5.2           4.9
    
                       m(2) per stoping, ledging &     K3 shaft            m(2)/crew             264           240
                       white area crew                 Rowland shaft       m(2)/crew             353           327
                                                       Saffy shaft         m(2)/crew             279           281
                                                       E3 shaft combined   m(2)/crew             254           219
                                                       Generation 2        m(2)/crew             285           269
Exchange rates(17)     Average rate for period                                    R$           12.78         13.56
                                                                                GBP$            1.36          1.23
                       Closing rate                                               R$           11.83         13.42
                                                                                GBP$            1.40          1.25

                                                                                         6 months to   6 months to
                                                                                            31 March      31 March
                                                                               Units            2018          2017
Cost of sales          PGM operations segment          Mining incl BTT            $m           (394)         (331)
                                                       Concentrating incl BTT     $m            (65)          (59)
                                                       Smelting and refining(18)  $m            (63)          (52)
                                                       Shared services            $m            (41)          (35)
                                                       Management and
                                                       marketing services         $m             (8)           (8)
              
                                                       Ore and concentrate
                                                       purchases                  $m            (21)          (14)
                                                       Limpopo mining             $m             (1)             -
              
                                                       ESOP & Community trust
                                                       donations                  $m               -             -
                                                       Other(19)                  $m            (21)           (1)
                                                       K3 Chrome plant            $m             (7)             -
                                                       Royalties                                 (3)           (2)
                                                       Inventory movement         $m              82            29
                                                       FX and group charges       $m            (46)           (9)
                       Total PGM Operations                                       Rm           (588)         (484)
                                                       Exploration � excluding FX $m             (1)           (3)
                                                       Corporate � excluding FX   $m             (8)             -
                                                       FX                         $m              11             -
                       Total cost of sales                                        $m           (587)         (486)
              
                       PGM operations segment          Mining incl BTT            Rm         (5,016)       (4,491)
                                                       Concentrating incl BTT     Rm           (824)         (803)
                                                       Smelting & refining(18)    Rm           (798)         (704)
                                                       Shared services            Rm           (511)         (464)
                                                       Management and marketing
                                                       services                   Rm           (105)         (114)
              
                                                       Ore and concentrate
                                                       purchases                  Rm           (272)         (193)
                                                       Limpopo mining             Rm             (6)           (6)
                                                                                  Rm
                                                       ESOP and community trust
                                                       donations                  Rm             (4)             -
                                                       Other(19)                  Rm           (246)           (5)
                                                       K3 Chrome plant            Rm            (91)             -
                                                       Royalties                  Rm            (42)          (39)
                                                       Inventory movement         Rm             708           317
                                                       FX and Group charges       Rm           2,329           298
                                                                                  Rm         (4,877)       (6,203)
    
                                                                                         6 months to   6 months to
                                                                                            31 March      31 March
                                                                               Units            2018          2017
Shaft head unit        Rand per tonne                  K3 shaft                  R/T         (1,000)       (1,032)
costs -                                                Rowland shaft             R/T         (1,043)         (938)
underground                                            Saffy shaft               R/T           (958)         (887)
operations                                             E3 shaft combined         R/T         (1,181)         (920)
excluding K4                                             East 3 shaft            R/T         (1,275)       (1,298)
                                                         Pandora (100%)          R/T         (1,003)         (855)
                                                       Generation 2              R/T         (1,014)         (954)
                                                       Generation 1              R/T         (1,137)         (929)
                                                       Total Underground         R/T         (1,043)         (947)
                
                       Rand per PGM oz                 K3 shaft                 R/oz         (8,677)       (9,057)
                                                       Rowland shaft            R/oz         (8,508)       (7,466)
                                                       Saffy shaft              R/oz         (7,037)       (6,863)
                                                       E3 shaft combined        R/oz         (8,283)       (6,943)
                                                         East 3 shaft           R/oz         (9,115)      (11,440)
                                                         Pandora (100%)         R/oz         (6,786)       (6,298)
                                                       Generation 2             R/oz         (8,083)       (7,753)
                                                       Generation 1             R/oz         (9,881)       (7,874)
                                                       Total Underground        R/oz         (8,479)       (7,786)
               
Cost of                Cost                            Mining incl BTT            Rm         (5,016)       (4,491)
production                                             Concentrating incl BTT     Rm           (824)         (803)
(PGM operations                                        Smelting and refining(18)  Rm           (798)         (704)
segment)(20)                                           Shared services            Rm           (511)         (464)
                                                       Management and marketing
                                                       services                   Rm           (105)         (114)
                                                                                  Rm         (7,254)       (6,576)
               
                       PGM saleable ounces             Mined ounces excl ore
                                                       purchases and incl BTT      oz        555,144       538,136
                                                       Metals-in-concentrate before
                                                       concentrate purchases       oz        573,916       557,322
                                                       Total saleable refined PGMs oz        543,327       568,614
                                                       Metals-in-concentrate
                                                       including concentrate
                                                       purchases                   oz        590,257       558,272
               
                       Cost of production              Mining                    R/oz        (9,036)       (8,346)
                                                       Concentrating             R/oz        (1,436)       (1,441)
                                                       Smelting and refining(18) R/oz        (1,468)       (1,238)
                                                       Shared services           R/oz          (866)         (831)
                                                       Management and marketing
                                                       services                  R/oz          (177)         (204)
                                                                                 R/oz       (12,983)      (12,059)
               
                                                                                         6 months to   6 months to
                                                                                            31 March      31 March
                                                                                Units           2018          2017
                       % change in cost of             Mining                       %          (8.3)           n/a
                       production                      Concentrating                %            0.4           n/a
                                                       Smelting and refining(18)    %         (18.6)           n/a
                                                       Shared services              %          (4.2)           n/a
                                                       Management and marketing 
                                                       services                     %           13.3           n/a
                                                                                    %          (7.7)           n/a
               
Footnotes:
1   Reporting of shafts are in line with our operating strategy for Generation 1 and Generation 2 shafts.
2   E3 Shaft and Pandora underground tonnes mined will be reported as E3 Shaft Combined from 1 December 2017 when 
    Lonmin required 100% of Pandora.
3   Ounces mined have been calculated at achieved concentrator recoveries and with Lonmin standard downstream 
    processing recoveries to present produced saleable ounces.
4   Tonnes milled exclude slag milling.
5   As from 1 December 2017 Lonmin owns 100% of Pandora joint venture and there will be no ore purchases thereafter.
6   The BTT (Bulk Tailings Treatment) project was commissioned in February 2018.
7   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).
8   Recovery rate in the concentrators is the total content produced divided by the total content milled (excluding slag).
9   Metals-in-concentrate have been calculated at Lonmin standard downstream processing recoveries to present produced
    saleable ounces.
10  Corresponds to contained base metals-in-concentrate.
11  Saleable refined production includes production associated with BMR concentrate sales.
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  Includes saleable refined production associated with BMR concentrate sales.
14  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.
15  As per note 14 but including revenue from base metals.
16  Capital expenditure is the aggregate of the purchase of property, plant and equipment and intangible assets (includes capital 
    accruals and excludes capitalised interest).
17  Exchange rates are calculated using the market average daily closing rate over the course of the period.
18  Comprises of Smelting and Refining costs as well as direct Process Operations shared costs and group security costs.
19  Other includes costs such as Restructuring and reorganisation costs, Debt refinancing costs and Share Based payments. 
    (Previously reported as "Special costs".)
20  It should be noted that with the implementation of the revised operating model, cost allocation between business units 
    has been changed and, therefore, whilst the total is on a like-for-like basis, individual line items are not totally comparable.

RESPONSIBILITY STATEMENT OF THE DIRECTORS IN RESPECT OF THE INTERIM FINANCIAL REPORT

We confirm that to the best of our knowledge:

   -   the condensed set of financial statements has been prepared in accordance with IAS 34 Interim Financial
       Reporting as adopted by the EU, and
   -   the interim management report includes a fair review of the information required by:

         (a) DTR4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have
             occurred during the first six months of the financial year and their impact on the condensed set of
             financial statements; and a description of the principal risks and uncertainties for the remaining six months of
             the year; and

         (b) DTR4.2.8R of the Disclosure and Transparency Rules, being related party transactions that have taken place
             in the first six months of the current financial year and that have materially affected the financial position or
             performance of the enterprise during that period; and any changes in the related party transactions
             described in the last annual report that could do so.

Brian Beamish                                                    Barrie van der Merwe
Chairman                                                         Chief Financial Officer

12 May 2018


INDEPENDENT REVIEW REPORT TO LONMIN PLC

Conclusion
We have been engaged by the company to review the condensed set of financial statements in the half-yearly financial
report for the six months ended 31 March 2018 which comprises the consolidated income statement, consolidated
statement of comprehensive income, consolidated statement of financial position, consolidated statement of changes in
equity, consolidated statement of cash flows and the related explanatory notes.

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial
statements in the half-yearly financial report for the six months ended 31 March 2018 is not prepared, in all material
respects, in accordance with IAS 34 Interim Financial Reporting as adopted by the EU and the Disclosure Guidance and
Transparency Rules ("the DTR") of the UK's Financial Conduct Authority ("the UK FCA").

Material uncertainty � Going Concern
We draw attention to note 1 to the condensed set of financial statements which indicates that the there is a material
uncertainty relating to the Group's ability to continue as a going concern.

In particular, that note describes uncertainties concerning the substantial achievement of forecasts, the successful
completion of the proposed acquisition of the Group by Sibanye-Stillwater (including the receipt of clearances from the
competition authorities in South Africa and the UK and approval from Lonmin Plc and Sibanye-Stillwater shareholders) or
the successful sale of assets to enable the Group to repay its existing $150 million loan.

These events and conditions, along with the other matters explained in note 1, represent a material uncertainty that may
cast significant doubt on the Group's ability to continue as a going concern. Our conclusion is not modified in respect of
this matter.

Scope of review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 Review
of Interim Financial Information Performed by the Independent Auditor of the Entity issued by the Auditing Practices Board
for use in the UK. A review of interim financial information consists of making enquiries, primarily of persons responsible
for financial and accounting matters, and applying analytical and other review procedures. We read the other information
contained in the half-yearly financial report and consider whether it contains any apparent misstatements or material
inconsistencies with the information in the condensed set of financial statements.

A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK)
and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might
be identified in an audit. Accordingly, we do not express an audit opinion.

Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved by, the Directors. The Directors are
responsible for preparing the half-yearly financial report in accordance with the DTR of the UK FCA.

As disclosed in note 1, the annual financial statements of the group are prepared in accordance with International Financial
Reporting Standards as adopted by the EU. The Directors are responsible for preparing the condensed set of financial
statements included in the half-yearly financial report in accordance with IAS 34 as adopted by the EU.

Our responsibility
Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the half-yearly
financial report based on our review.

The purpose of our review work and to whom we owe our responsibilities
This report is made solely to the Company in accordance with the terms of our engagement to assist the company in
meeting the requirements of the DTR of the UK FCA. Our review has been undertaken so that we might state to the
Company those matters we are required to state to it in this report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than the company for our review work, for
this report, or for the conclusions we have reached.


Adrian Wilcox
for and on behalf of KPMG LLP
Chartered Accountants
15 Canada Square
London
E14 5GL
12 May 2018

Consolidated income statement
for the 6 months to 31 March 2018

                                                                                6 months to       6 months to             Year ended
                                                                                   31 March          31 March           30 September
                                                                                       2018              2017                   2017
                                                                      Notes              $m                $m                     $m
Revenue                                                                   2             561               486                  1,166

(LBITDA)/EBITDA(i)                                                        2            (26)                 -                     40
Depreciation and amortisation                                                           (6)              (35)                   (66)
Impairment                                                               10               -             (146)                (1,053)
Operating loss(ii)                                                        2            (32)             (181)                (1,079)
Foreign exchange arising on stepped acquisition of Pandora               11            (24)                 -                      -
Finance income                                                            3              52                19                     49
Finance expenses                                                          3            (47)              (34)                  (137)
Share of loss of equity accounted investment                                              -               (3)                    (3)
Loss before taxation                                                                   (51)             (199)                (1,170)
Income tax (charge) / credit                                              4            (16)              (15)                     18
Loss for the period                                                                    (67)             (214)                (1,152)
Attributable to: 
- Equity shareholders of Lonmin Plc                                                    (66)             (182)                  (996)
- Non-controlling interests                                                             (1)              (32)                  (156)
 
Basic and diluted loss per share(iii)                                     5         (23.3)c           (64.4)c               (352.7)c


Footnotes:
i   (LBITDA)/EBITDA is operating (loss) / profit before depreciation, amortisation and impairment of intangibles and property, plant 
    and equipment.
ii  Operating (loss) / profit is defined as revenue less operating expenses before finance income and expenses and share of loss of 
    equity accounted investment and foreign exchange arising on stepped acquisition of Pandora.
iii Diluted (loss) / earnings per share is based on the weighted average number of ordinary shares in issue adjusted by dilutive 
    outstanding share options.

Consolidated statement of comprehensive loss
for the 6 months to 31 March 2018
 
                                                                                6 months to       6 months to           Year ended
                                                                                   31 March          31 March         30 September
                                                                                       2018              2017                 2017
                                                                      Notes              $m                $m                   $m
Loss for the period                                                                    (67)             (214)              (1,152)
           
Items that have been / may be reclassified subsequently to the           
income statement:           
- Changes in fair value of available for sale financial assets            7               6                 1                    8
- Foreign exchange gain on retranslation of equity accounted                  
  investment                                                                              -                 -                    1
- Foreign exchange loss on retranslation of equity accounted                 
  investment transferred to the income statement                         11              24                 -                    -
- Deferred tax on items taken directly to the statement of                 
  comprehensive income                                                                    -                 -                    2                   
Total other comprehensive income for the period                                          30                 1                   11
           
Total comprehensive loss for the period                                                (37)             (213)              (1,141)
                 
Attributable to:                 
- Equity shareholders of Lonmin Plc                                                    (39)             (181)                (985)
- Non-controlling interests                                                               2              (32)                (156)
                                                                                       (37)             (213)              (1,141)
               
Consolidated statement of financial position
as at 31 March 2018
  
                                                                                      As at             As at               As at
                                                                                   31 March          31 March        30 September
                                                                                       2018              2017                2017
                                                                      Notes              $m                $m                  $m
Non-current assets                                
Intangible assets                                                                        18                63                  11
Property, plant and equipment                                                           265             1,033                 194
Equity accounted investment                                              11               -                21                  24
Royalty prepayment                                                                       36                37                  36
Other financial assets                                                    7              43                30                  34
Deferred tax assets                                                                       -                 -                   1
                                                                                        362             1,184                 300
                                 
Current assets                              
Inventories                                                                             332               276                 245
Trade and other receivables                                                              44                59                  73
Other financial assets                                                    7               -                61                   -
Cash and cash equivalents                                                 9             167               229                 253
                                                                                        543               625                 571
                                
Current liabilities                                
Trade and other payables                                                              (186)             (153)               (178)
Interest bearing loans and borrowings                                     9           (150)                 -               (150)
Deferred revenue                                                          8            (13)                 -                (13)
Tax payable                                                                            (15)                 -                 (7)
                                                                                      (364)             (153)               (348)
Net current assets                                                                      179               472                 223
                                
Non-current liabilities                              
Interest bearing loans and borrowings                                     9               -             (154)                   -
Deferred tax liabilities                                                                (1)              (45)                   -
Deferred royalty payment                                                                  -               (1)                   -
Deferred revenue                                                          8            (34)              (33)                (27)
Contingent consideration                                                 11            (21)                 -                   -
Provisions                                                                            (159)             (134)               (134)
                                                                                      (215)             (367)               (161)
Net assets                                                                              326             1,289                 362
                             
Capital and reserves                             
Share capital                                                                           586               586                 586
Share premium                                                                         1,816             1,816               1,816
Other reserves                                                                           88                88                  88
Accumulated loss                                                                    (1,843)           (1,002)             (1,805)
Attributable to equity shareholders of Lonmin Plc                                       647             1,488                 685
Attributable to non-controlling interests                                             (321)             (199)               (323)
Total equity                                                                            326             1,289                 362

Consolidated statement of changes in equity
for the 6 months to 31 March 2018

                                                                                                     Equity interest
                                                                  Called    Share                                                       Non-
                                                                up share  premium         Other         Accumu-                  controlling    Total
                                                                 capital  account   reserves(i)  lated loss(ii)       Total   interests(iii)   equity
                                                                      $m       $m            $m              $m          $m               $m       $m
At 1 October 2017                                                    586    1,816            88         (1,805)         685            (323)      362
Loss for the period                                                    -        -             -            (66)        (66)              (1)     (67)
Total other comprehensive income:                                      -        -             -              27          27                3       30
- Change in fair value of available for sale financial
                                                                       -        -             -               6           6                -        6
assets
- Foreign exchange loss on retranslation of equity
  accounted investments transferred to the income                      -        -             -              21          21                3       24
  statement
Transactions with owners, recognised directly in
equity:                                                                -        -             -               1           1                -        1
- Share-based payments                                                 -        -             -               1           1                -        1

At 31 March 2018                                                     586    1,816            88         (1,843)         647            (321)      326
 
At 1 October 2016                                                    586    1,816            88           (821)       1,669            (167)    1,502
Loss for the period                                                    -        -             -           (182)       (182)             (32)    (214)
Total other comprehensive income:                                      -        -             -               1           1                -        1
- Change in fair value of available for sale financial
  assets                                                               -        -             -               1           1                -        1


At 31 March 2017                                                     586    1,816            88         (1,002)       1,488            (199)    1,289
 
At 1 April 2017                                                      586    1,816            88         (1,002)       1,488            (199)    1,289
Loss for the period                                                    -        -             -           (814)       (814)            (124)    (938)
Total other comprehensive income:                                      -        -             -              10          10                -       10
- Change in fair value of available for sale financial
assets                                                                 -        -             -               7           7                -        7
- Foreign exchange loss on retranslation of equity
  accounted investment                                                 -        -             -               1           1                -        1
- Deferred tax on items taken directly to the
  statement of comprehensive income                                    -        -             -               2           2                -        2
Transactions with owners, recognised directly in
equity:                                                                -        -             -               1           1                -        1
- Share-based payments                                                 -        -             -               1           1                -        1

At 30 September 2017                                                 586    1,816            88         (1,805)         685            (323)      362

Footnotes:
i   Other reserves at 31 March 2018 represent the capital redemption reserve of $88 million (31 March 2017 and 30 September 2017 - $88 million).
ii  Accumulated loss includes $14 million of accumulated credits in respect of fair value movements on available for sale financial assets 
    (31 March 2017 - $1 million credit and 30 September 2017 - $8 million credit) and a $nil debit of accumulated exchange on retranslation of equity 
    accounted investments (31 March 2017 - $17 million and 30 September 2017 - $16 million).
iii Non-controlling interests represent a 13.76% effective shareholding in each of Eastern Platinum Limited, Western Platinum Limited 
    (WPL) and Messina Limited and a 19.87% effective shareholding in Akanani Mining Proprietary Limited.

    No advance dividends were made by WPL, a subsidiary of Lonmin Plc, to Incwala Platinum Proprietary Limited (IP) during the period under review 
    (6 months to 31 March 2017 and for the year ended 30 September 2017 - $nil). IP is a substantial shareholder in the Company's principal operating 
    subsidiaries. Total advance dividends made between 2009 and 2016 amounted to $135 million (R1,309 million). IP has authorised WPL to recover these 
    amounts by reducing future dividends that would otherwise be payable to all shareholders. These advance dividends are adjusted for in the 
    non-controlling interest of the Group

Consolidated statement of cash flows
for the 6 months to 31 March 2018

                                                                       6 months to   6 months to       Year ended
                                                                          31 March      31 March     30 September
                                                                              2018          2017             2017
                                                             Notes              $m            $m               $m

Loss for the period                                                           (67)         (214)          (1,152)
Taxation                                                                        16            15             (18)
Share of loss of equity accounted investment                                     -             3                3
Finance income                                                   3            (52)          (19)             (49)
Finance expenses                                                 3              47            34              137
Foreign exchange arising on stepped acquisition of Pandora      11              24             -                -
Non-cash movement on deferred revenue                            8               -           (2)              (3)
Depreciation and amortisation                                                    6            35               66
Impairment                                                                       -           146            1,053
Change in inventories                                                         (87)          (31)                -
Change in trade and other receivables                                           29             8              (6)
Change in trade and other payables                                               8          (40)             (15)
Change in provisions                                                            19             2                5
Deferred revenue received                                        8               7            26               34
Share-based payments                                                             1             -                1
(Profit) / loss on disposal of property, plant and equipment                     -             -              (1)
Prepaid royalties                                                                -             -              (2)
Other movements                                                                  1           (1)                -
Cash (outflow) / inflow from operations                                       (48)          (38)               53
Interest received                                                                2             3                6
Interest and bank fees paid                                                    (8)           (9)             (18)
Tax paid                                                                       (8)           (4)              (8)
Cash (outflow) / inflow from operating activities                             (62)          (48)               33
Cash flow from investing activities
Acquisition and contribution to joint venture                                  (4)           (1)              (2)
Additions to other financial assets                                            (3)           (8)              (4)
Purchase of property, plant and equipment                                     (32)          (44)             (99)
Purchase of intangible assets                                                  (1)           (1)              (1)
Cash used in investing activities                                             (40)          (54)            (106)
Cash flow from financing activities
Proceeds from non-current borrowings                             9               -             4                -
Cash inflow from financing activities                                            -             4                -
Decrease in cash and cash equivalents                            9           (102)          (98)             (73)
Opening cash and cash equivalents                                9             253           323              323
Effect of foreign exchange rate changes                          9              16             4                3
Closing cash and cash equivalents                                9             167           229              253

Notes to the accounts

1 Statement on accounting policies

Basis of preparation

Lonmin Plc (the Company) is a Company domiciled in the United Kingdom. The condensed consolidated interim financial
statements of the Company as at and for the six months to 31 March 2018 comprise the Company and its subsidiaries
(together referred to as the Group).

These condensed consolidated interim financial statements have been prepared in accordance with IAS 34 - Interim
Financial Reporting, as adopted by the EU. The annual financial statements of the Group are prepared in accordance with
International Financial Reporting Standards (IFRSs), as adopted by the EU. As required by the Disclosure and Transparency
Rules of the Financial Conduct Authority, the condensed set of financial statements have been prepared applying the
accounting policies and presentation that were applied in the preparation of the Company's published consolidated
financial statements for the year ended 30 September 2017, except as noted below. They do not include all of the
information required for full annual financial statements and should be read in conjunction with the consolidated financial
statements of the Group for the year ended 30 September 2017.

The comparative figures for the financial year ended 30 September 2017 are not the Group's full statutory accounts for
that financial year. Those accounts have been reported on by the Group's auditors and delivered to the registrar of
companies. The report of the auditors was (i) unqualified, (ii) included a reference to a matter to which the auditors drew
attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 498 (2) or
(3) of the Companies Act 2006.

The consolidated financial statements of the Group as at and for the year ended 30 September 2017 are available upon
request from the Company's registered office at Connaught House, 5th Floor, 1-3 Mount Street, London, W1K 3NB.

These condensed consolidated interim financial statements were approved by the Board of Directors on 12 May 2018.

These condensed consolidated interim financial statements apply the accounting policies and presentation that will be
applied in the preparation of the Group's published consolidated financial statements for the year ending 30 September
2018.

Going concern

In determining the appropriate basis of preparation of the financial statements, the Directors are required to consider
whether the Group can continue in operational existence for the foreseeable future.

Lonmin's business has experienced ongoing financial constraints for a number of years caused by a range of external
factors such as a persistently low PGM pricing environment and the inflationary cost pressures of operating in the South
African PGM industry. These have been further exacerbated by internal factors including operational, social and labour
issues.

In assessing the Group's ability to continue as a going concern, the Directors have prepared cash flow forecasts for a
period in excess of 12 months. The assumptions used in the model are disclosed in note 10. The Directors have also
considered the debt facilities available to the Group which are disclosed in note 9 to the financial statements.

At 31 March 2018 the term loan of $150 million was fully drawn and the Group had gross cash of $167 million.

The Group's loan facility agreements require it to test two covenants related to its tangible net worth (TNW) every six
months. At 31 March 2018 the TNW of the Group was $631 million some $469 million below the TNW covenant threshold
of $1,100 million.

During the 6 months to 31 March 2018 Sibanye Gold Limited trading as Sibanye-Stillwater made an offer to buy the Group
which was unanimously recommended by the Board of Lonmin Plc. The Board of Lonmin believes that the offer is in the
best interest of Lonmin shareholders and all other stakeholders of Lonmin and provides Lonmin with a comprehensive and
sustainable solution to the adverse challenges it faces. The combination of Sibanye-Stillwater and Lonmin creates a larger
and more resilient company, with greater geographical and commodity diversification, that is better able to withstand
short-term commodity price and foreign exchange volatility. The long stop date of this acquisition is 28 February 2019.

As a result of the Sibanye-Stillwater offer, the Company's lenders have agreed to a waiver of the TNW covenants for the
period from 30 September 2017 to 28 February 2019. The waiver is conditional on the completion of the acquisition and
will lapse if the acquisition does not complete, lapses or is withdrawn, subject to a 20 business day grace period which will
apply if the Company is engaging with the lenders.

The key conditions precedent to the acquisition are receipt of relevant clearances from the competition authorities in
South Africa and the UK and approval from Lonmin Plc and Sibanye-Stillwater shareholders. Key filings have been made
with the Competition Commission of South Africa and the Competition and Markets Authority in the UK. As previously
reported in note 1 to the 2017 Financial Statements published on 22 January 2018, whilst it is not a condition of the
Transaction the Directors anticipate that Sibanye-Stillwater shareholders would have a strong preference for Lonmin to be
in a net cash position after repaying the $150 million term loan. We are not in full control of the approvals and their receipt
is uncertain. Furthermore there is a risk that the Group net cash position could be materially impacted by a substantial
economic downturn or operational factors.

On, or immediately prior to completion of the acquisition the term loan of $150 million is required to be repaid and debt
facilities cancelled. Based on cash flow projections using assumptions that were duly considered by the Board, the
repayment of the facilities at the closing of the deal is considered a reasonable expectation. In addition, based on
discussions with Sibanye-Stillwater to date the Directors consider that there is no indication that Lonmin Plc and its
significant subsidiaries will not continue to operate after the acquisition for a period of at least 12 months.

In the event that the deal does not complete, the waiver will cease to apply and the TNW covenants will be reinstated. If
the TNW covenants are breached, the $150 million may be required to be repaid. The covenant waiver allows for a 20
business day grace period whilst other options are pursued provided that the Company is engaging with the lenders.
During the 20 day grace period the Group will not be required to repay the loan. During this period, the feasibility of an
asset sale to Sibanye-Stillwater, as contemplated in the Rule 2.7 announcement as well as any other alternative
transactions will be assessed by the Board.

If alternative transactions turn out not to provide a feasible alternative, sufficient to repay the Group's borrowings, or the
Group does not have sufficient cash to repay the borrowings itself, then the lenders are likely to withdraw their facilities
and the Group is likely to be unable to meet its liabilities. To mitigate this risk, discussions are ongoing with a number of
alternative providers of finance.

In assessing whether the Group is likely to have cash to repay the term loan of $150 million either on completion of the
acquisition or in the event the acquisition fails and no feasible alternatives are found, the Directors have considered
various scenarios to test the Group's resilience against operational risks including:
- Adverse movements in PGM commodity prices and ZAR / USD exchange rate or a combination thereof;
- Failure to meet forecast production targets.

Under reasonably possible downside scenarios this results in gross cash for the Group falling below $150 million meaning
the Group would be unable to repay the loan.

The substantial achievement of forecasts, the successful completion of the Sibanye-Stillwater Transaction (including the
completion of key conditions precedent) or the successful sale of assets to enable the Group to repay the $150 million loan
represents a material uncertainty that may cast significant doubt about the Group's ability to continue as a going concern
such that the Group may be unable to realise its assets and discharge its liabilities in the normal course of business.
Nevertheless, based on the Group's expectation of the acquisition completing by the long stop date of 28 February 2019,
the Directors believe that the Group will continue to have adequate financial resources to meet obligations as they fall due.
Accordingly, the Directors have formed a judgement that it is appropriate to prepare the financial statements on a going
concern basis. Therefore, these financial statements do not include any adjustments that would result if the going concern
basis of preparation is inappropriate.

New standards and amendments in the period

In the current period, Lonmin has applied revised IFRS standards which were adopted as of 1 October 2017:

Amendments to IAS 12 � Recognition of deferred tax assets for unrealised losses.
The amendments to IAS 12 clarify the accounting treatment for deferred tax assets related to debt instruments measured
at fair value. The adoption of the amendment has had no material impact on the Group.

Amendments to IAS 7 - Statement of cash flows: Disclosure initiative.
The amendments to IAS 7 requires entities to provide disclosures about changes in their liabilities arising from financing
activities, including changes arising from financing cash flows and non-cash changes (such as foreign exchange
movements).

There were no other new standards, interpretations or amendments to standards issued and effective for the period which
materially impacted the Group.

New standards that are relevant to the Group but not yet effective

Title of standard     Summary of impact on the Financial Statements                          Application date    Application date
                                                                                                  of standard   for the financial
                                                                                                                  year commencing
IFRS 9 Financial      The Group will adopt IFRS 9 from 1 October 2018. The Group has           1 January 2018      1 October 2018
Instruments           minimal financial assets (other than trade debtors and certain equity
                      investments) and the new standard does not have a material impact
                      on the recognition and measurement of the Group's financial assets.
                      The standard will result in changes in presentation in some
                      disclosures of the Group's financial assets.

                      The Company does not intend to adopt IFRS 9 before the effective
                      date.

IFRS 15 Revenue       The Groups's revenue is derived from commodity sales, for which the      1 January 2018      1 October 2018
from Contracts with   point of recognition is dependent on the contract sales terms. The
Customers             transfer of risks and rewards generally coincides with the transfer of
                      control at a point in time under the contract sales term. The impact
                      of IFRS 15, which is not expected to have a material effect on the
                      Group's reported revenues when compared to the current policy, is
                      being assessed in respect of sales arrangements entered into for
                      2019.

                      Revenues from the sale of significant by-products, such as Nickel,
                      Copper and Chrome are within the scope of IFRS 15 and will continue
                      to be included in Consolidated sales revenue.

                      The Company does not intend to adopt IFRS 15 before the effective
                      date.

IFRS 16 Leases        Lonmin has no material lease agreements so this standard is not          1 January 2019      1 October 2019
                      expected to have a significant impact on its statement of financial
                      position.

                      The Company does not intend to adopt IFRS 16 before the effective
                      date.

2 Segmental analysis

The PGM Operations segment comprises the activities involved in the mining and processing of PGMs, together with
associated base metals, which are carried out entirely in South Africa. These operations are integrated and designed to
support the process for extracting and refining PGMs from underground. PGMs move through each stage of the process
and undergo successive levels of refinement which result in fully refined metals. This segment also includes exploration
and evaluation activities involved in the discovery or identification of new PGM deposits and the evaluation through pre-
feasibility of the economic viability of newly discovered PGM deposits. Currently exploration activities occur on a
worldwide basis and evaluation projects are based in South Africa. The Chief Executive Officer, who performs the role of
Chief Operating Decision Maker (CODM), views the PGM Operations segment as a single whole for the purposes of
financial performance monitoring and assessment and does not make resource allocations based on margin, costs or cash
flows incurred at each separate stage of the process. In addition, the CODM makes his decisions for running the business
on a day to day basis using the physical operating statistics generated by the business as these summarise the operating
performance of the entire segment.

Other covers mainly the results and investment activities of the corporate Head Office. The only intersegment
transactions involve the provision of funding between segments and any associated interest.

No operating segments have been aggregated. Operating segments have consistently adopted the consolidated basis of
accounting and there are no differences in measurement applied.

                                                                           6 months to 31 March 2018
                                                                    PGM
                                                             Operations                Intersegment
                                                                Segment        Other    Adjustments    Total
                                                                     $m           $m             $m       $m
  
Revenue (external sales by product):  
   Platinum                                                         273            -              -      273
   Palladium                                                        136            -              -      136
   Gold                                                              11            -              -       11
   Rhodium                                                           72            -              -       72
   Ruthenium                                                         10            -              -       10
   Iridium                                                           14            -              -       14
   PGMs                                                             516            -              -      516
   Nickel                                                            15            -              -       15
   Copper                                                             7            -              -        7
   Chrome                                                            23            -              -       23
                                                                    561            -              -      561

(LBITDA) / EBITDA(i)                                               (33)            7              -     (26)
Depreciation and amortisation                                       (6)            -              -      (6)
Operating (loss) / profit(i)                                       (39)            7              -     (32)
Foreign exchange arising on stepped acquisition of Pandora         (24)            -              -     (24)
Finance income                                                       21           59           (28)       52
Finance expenses(ii)                                               (26)         (49)             28     (47)
(Loss) / profit before taxation                                    (68)           17              -     (51)
Income tax charge                                                   (3)         (13)              -     (16)
(Loss) / profit after taxation                                     (71)            4              -     (67)
   
Total assets(iii)                                                   949        1,788        (1,832)      905
Total liabilities                                               (2,217)        (194)          1,832    (579)
Net assets / (liabilities)                                      (1,268)        1,594              -      326

Additions to property, plant, equipment and intangibles              33            -              -       33

                                                                          6 months to 31 March 2017
                                                                    PGM
                                                             Operations                Intersegment
                                                                Segment        Other    Adjustments    Total
                                                                     $m           $m             $m       $m
    
Revenue (external sales by product):    
   Platinum                                                         295            -              -      295
   Palladium                                                         96            -              -       96
   Gold                                                               9            -              -        9
   Rhodium                                                           41            -              -       41
   Ruthenium                                                          3            -              -        3
   Iridium                                                           10            -              -       10
   PGMs                                                             454            -              -      454
   Nickel                                                            15            -              -       15
   Copper                                                             1            -              -        1
   Chrome                                                            16            -              -       16
                                                                    486            -              -      486
    
EBITDA(i)                                                             -            -              -        -
Depreciation and amortisation                                      (35)            -              -     (35)
Impairment                                                        (146)            -              -    (146)
Operating loss(i)                                                 (181)            -              -    (181)
Finance income                                                        9           37           (27)       19
Finance expenses(ii)                                               (34)         (27)             27     (34)
Share of loss of equity accounted investment                        (3)            -              -      (3)
(Loss) / profit before taxation                                   (209)           10              -    (199)
Income tax charge                                                  (15)            -              -     (15)
(Loss) / profit after taxation                                    (224)           10              -    (214)
   
Total assets(iii)                                                 1,765        1,809        (1,765)    1,809
Total liabilities                                               (2,099)        (186)          1,765    (520)
Net assets / (liabilities)                                        (334)        1,623              -    1,289
   
Share of net assets of equity accounted investment                   21            -              -       21
Additions to property, plant, equipment and intangibles              45            -              -       45

                                                                            Year ended 30 September 2017
                                                                    PGM
                                                             Operations                Intersegment
                                                                Segment        Other    Adjustments    Total
                                                                     $m           $m             $m       $m
   
Revenue (external sales by product):   
   Platinum                                                         673            -              -      673
   Palladium                                                        262            -              -      262
   Gold                                                              21            -              -       21
   Rhodium                                                           99            -              -       99
   Ruthenium                                                          9            -              -        9
   Iridium                                                           28            -              -       28
   PGMs                                                           1,092            -              -    1,092
   Nickel                                                            31            -              -       31
   Copper                                                            11            -              -       11
   Chrome                                                            32            -              -       32
                                                                  1,166            -              -    1,166
   
EBITDA / (LBITDA)(i)                                                 42          (2)              -       40
Depreciation and amortisation                                      (66)            -              -     (66)
Impairment                                                      (1,053)            -              -  (1,053)
Operating loss(i)                                               (1,077)          (2)              -  (1,079)
Finance income                                                       14           94           (59)       49
Finance expenses(ii)                                               (74)        (122)             59    (137)
Share of loss of equity accounted investment                        (3)            -              -      (3)
Loss before taxation                                            (1,140)         (30)              -  (1,170)
Income tax credit / (charge)                                         26          (8)              -       18
Loss after taxation                                             (1,114)         (38)              -  (1,152)
   
Total assets(iii)                                                   912        1,773        (1,814)      871
Total liabilities                                               (2,134)        (189)          1,814    (509)
Net assets / (liabilities)                                      (1,222)        1,584              -      362
   
Share of net assets of equity accounted investment                   24            -              -       24
Additions to property, plant, equipment and intangibles              93            -              -       93

Revenue by destination is analysed by geographical area below:

                                                          6 months to      6 months to            Year ended
                                                        31 March 2018    31 March 2017     30 September 2017
                                                                   $m               $m                    $m
The Americas                                                       80              221                   245
Asia                                                              106              111                   295
Europe                                                            176              113                   355
South Africa                                                      199               41                   271
                                                                  561              486                 1,166

The Group's revenues are all derived from the PGM Operations segment. This segment has three major customers who
respectively contributed 40% ($222 million), 19% ($105 million) and 18% ($103 million) of revenue in the six months to 31
March 2018 (42% ($203 million), 22% ($109 million) and 18% ($87 million) in the six months to 31 March 2017 and 38%
($443 million), 21% ($239 million) and 20% ($234 million) in the year ended 30 September 2017).

Metal sales prices are based on market prices which are denominated in US Dollars. The majority of sales are also invoiced
in US Dollars with the exception of certain sales in South Africa which are invoiced in South African Rand based on exchange
rates determined in accordance with the contractual arrangements.

Non-current assets (excluding financial instruments and deferred tax assets) of $319 million (31 March 2017 - $1,154 million
and 30 September 2017 - $265 million) are all situated in South Africa.

Footnotes:
i    EBITDA / (LBITDA) and operating (loss) / profit are the key profit measures used by management.
ii   The impairment of the HDSA receivable of $34 million (31 March 2017 - $8 million and 30 September 2017 - $109 million) 
     and of non-financial assets of $nil (31 March 2017 - $146 million and 30 September 2017 - $1,053 million) are included 
     under finance expenses and impairment respectively. The HDSA receivable forms part of the "Other" segment. The impairment 
     of non-financial assets is all allocated to the PGM Operations segment.
iii  The assets under "Other" include the HDSA receivable of $nil (31 March 2017 - $61 million and 30 September 2017 - $nil) 
     and intercompany receivables of $1,754nmillion (31 March 2017 - $1,684 million and 30 September 2017 - $1,739 million). 
     Available for sale financial assets of $21 million (31 March 2017 - $8 million and 30 September 2017 - $16 million) form 
     part of the "Other" segment and the balance of $4 million (31 March 2017 - $4 million and 30 September 2017 - $3 million)
     forms part of the PGM Operations segment.

3 Net finance income / (expenses)

                                                                6 months to               6 months to               Year ended
                                                                   31 March                  31 March             30 September
                                                                       2018                      2017                     2017
                                                                         $m                        $m                       $m

Finance income:                                                          52                        19                       49
- Interest receivable on cash and cash equivalents                        2                         3                        6
- Foreign exchange gains on net cash / (debt)(i)                         16                         4                        3
- Interest accrued from HDSA receivable (note 7)                         15                        12                       26
- Foreign exchange gain on HDSA receivable (note 7)                      19                         -                       14

Finance expenses:                                                      (47)                      (34)                    (137)
- Interest payable on bank loans and overdrafts                         (5)                       (5)                     (11)
- Bank fees                                                             (3)                       (4)                      (7)
- Unwinding of discount on environmental provisions                     (5)                       (5)                     (10)
- Foreign exchange loss on HDSA receivable                                -                      (12)                        -
- Impairment of HDSA receivable (note 7)                               (34)                       (8)                    (109)

Net finance income / (expenses)                                           5                      (15)                     (88)

Footnote:
i Net cash as defined by the Group comprises cash and cash equivalents, bank overdrafts repayable on demand and interest bearing 
  loans and borrowings less unamortised bank fees, unless the unamortised bank fees relate to undrawn facilities in which case 
  they are treated as other receivables.

4 Taxation

                                                                                     6 months to   6 months to      Year ended
                                                                                        31 March      31 March    30 September
                                                                                            2018          2017            2017
                                                                                              $m            $m              $m
Current tax charge:        
United Kingdom tax expense        
- Current tax expense at 21% (March 2017 and September 2017 � 21%)(i)                          9             -               6
         
Overseas current tax expense at 28% (2017 � 28%)                                               7             4               9
- Corporate tax expense � current year                                                         6             4               9
- Adjusted in respect of prior years                                                           1             -               -
         
Total current tax charge                                                                      16             4              15
        
Deferred tax charge / (credit):       
Deferred tax charge / (credit) � UK and overseas                                               -            11            (33)
- Origination and reversal of temporary differences                                            -             8            (44)
- Adjustment in respect of prior years                                                         -             1               8
- Reversal of utilisation of losses from prior years to offset deferred tax         
  liability                                                                                    -             -               2
- Foreign exchange revaluation on deferred taxation ii                                         -             2               1
         
Total deferred tax charge / (credit)                                                           -            11            (33)
        
Total tax charge / (credit)                                                                   16            15            (18)
        
Effective tax rate                                                                         (31%)          (8%)              2%
       
A reconciliation of the standard tax charge / (credit) to the actual tax charge / (credit) was as follows:

                                         6 months to    6 months to    6 months to   6 months to      Year ended    Year ended
                                            31 March       31 March       31 March      31 March    30 September  30 September
                                                2018           2018           2017          2017            2017          2017
                                                   %             $m              %            $m               %            $m
Tax credit on loss at standard tax 
rate                                              28           (14)             28          (56)              28         (327)
Tax effect of:
- Rate change                                      8            (4)              -             -               -             -
- Transfer of losses                               -              -              -             -               -           (1)
- Unutilised losses(iii)                          98           (50)              1           (2)               2           (9)
- Foreign exchange impacts on
  taxable profits                              (138)             70            (5)             9             (2)            24 
- Adjustment in respect of prior 
  years                                          (2)              1           (18)            35             (1)             8
- Disallowed expenditure                        (37)             19           (12)            26            (25)           287
- Expenses not subject to tax                     12            (6)            (1)             1               -           (1)
- Foreign exchange revaluation on
  deferred tax                                     -              -            (1)             2               -             1
Actual tax charge / (credit)                    (31)             16            (8)            15               2          (18)

The Group's primary operations are based in South Africa. The South African statutory tax rate is 28% (2017 - 28%). Lonmin
Plc operates a branch in South Africa which is subject to a tax rate of 28% on branch profits (2017 � 28%). The aggregated
standard tax rate for the Group is 28% (2017� 28%). The dividend withholding tax rate is 15% (2017 � 15%). Dividends
payable by the South African companies to Lonmin Plc are subject to a 5% withholding tax benefitting from double taxation
agreements.

Footnotes:
i   Effective from 1 April 2018 the United Kingdom tax rate changed from 20% to 19% and will change from 19% to 18% from 1 April 2020. 
    This does not materially impact the Group's recognised deferred tax liabilities.
ii  Overseas tax charges are predominantly calculated in Rand as required by the local authorities. As these subsidiaries' functional 
    currency is US Dollar this leads to a variety of foreign exchange impacts being the retranslation of current and deferred tax balances 
    and monetary assets, as well as other translation differences. The Rand denominated deferred tax balance in US Dollars at 31 March 2018 
    is $1 million (31 March 2017 - $69 million and 30 September 2017 - $1 million).
iii Unutilised losses reflect losses generated in entities for which no deferred tax asset is provided as it is not thought probable that 
    future profits can be generated against which a deferred tax asset could be offset or previously unrecognised losses utilised.

5 Loss per share

Loss per share (LPS) has been calculated on the loss for the period attributable to equity shareholders amounting to $66
million (6 months to 31 March 2017 loss of $182 million and the year ended 30 September 2017 - loss of $996 million) using
a weighted average number of 282.8 million ordinary shares in issue for the 6 months to 31 March 2018 (6 months to 31
March 2017 and the year ended 30 September 2017 � 282.4 million ordinary shares).

Diluted loss per share is based on the weighted average number of ordinary shares in issue adjusted by dilutive outstanding
share options in accordance with IAS 33 - Earnings Per Share. In the 6 months to 31 March 2018 outstanding share options
were anti-dilutive and so were excluded from diluted loss per share in accordance with IAS 33 (31 March 2017 and 30
September 2017 � anti-dilutive).

                          6 months to 31 March                 6 months to 31 March                Year ended 30 September
                                 2018                                 2017                                  2017
                     Loss for      Number   Per share       Loss for       Number   Per share    Loss for     Number  Per share
                  the period    of shares      amount     the period    of shares      amount    the year  of shares     amount
                          $m     millions       cents             $m     millions       cents          $m   millions      cents
Basic and diluted
LPS                     (66)        282.8      (23.3)          (182)        282.4      (64.4)       (996)      282.4    (352.7)

Headline loss and the resultant headline loss per share are specific disclosures defined and required by the Johannesburg
Stock Exchange. These are calculated as follows:

                                                                         6 months to             6 months to         Year ended
                                                                            31 March                31 March       30 September
                                                                                2018                    2017               2017
                                                                                  $m                      $m                 $m
Loss attributable to ordinary shareholders (IAS 33 earnings)                    (66)                   (182)              (996)
Add foreign exchange arising on stepped acquisition of Pandora                    24                       -                  -
Add back loss on disposal of property, plant and equipment                         -                       -                (1)
Add back impairment of non�financial assets                                        -                     146              1,053
Tax related to the above items                                                     -                      20               (16)
Non-controlling interests                                                        (3)                    (23)              (143)
Headline loss                                                                   (45)                    (39)              (103)


                             6 months to 31 March                 6 months to 31 March            Year ended 30 September
                                    2018                                 2017                              2017
                     Loss for       Number     Per share      Loss for      Number   Per share   Loss for     Number  Per share
                   the period    of shares        amount    the period   of shares      amount   the year  of shares     amount
                           $m     millions         cents            $m    millions       cents         $m   millions      cents
Headline and
diluted LPS              (45)        282.8        (15.9)          (39)       282.4      (13.8)      (103)      282.4     (36.5)

6 Dividends

No dividends were declared during the 6 months to 31 March 2018 (6 months to 31 March 2017 and year ended 30
September 2017 - $nil).

7 Other financial assets

                                  Restricted cash(i)    Available for sale   HDSA receivable           Total
                                                  $m                    $m                $m              $m
At 1 October 2017                                 15                    19                 -              34
Disposal of investment                           (1)                     -                 -             (1)
Interest accrued                                   1                     -                15              16
Movement in fair value                             -                     6                 -               6
Foreign exchange gains                             3                     -                19              22
Impairment loss                                    -                     -              (34)            (34)
At 31 March 2018                                  18                    25                 -              43


                                     Restricted cash    Available for sale   HDSA receivable           Total
                                                  $m                    $m                $m              $m
At 1 April 2017                                   18                    12                61              91
Disposal of investment                           (2)                     -                 -             (2)
Interest accrued                                   -                     -                14              14
Movement in fair value                             -                     7                 -               7
Foreign exchange (losses) / gains                (1)                     -                26              25
Impairment loss                                    -                     -             (101)           (101)
At 30 September 2017                              15                    19                 -              34

                                     Restricted cash    Available for sale   HDSA receivable           Total
                                                  $m                    $m                $m              $m
At 1 October 2016                                 10                    11                69              90
Additions                                          6                     -                 -               6
Interest accrued                                   1                     -                12              13
Movement in fair value                             -                     1                 -               1
Foreign exchange gains / (losses)                  1                     -              (12)            (11)
Impairment loss                                    -                     -               (8)             (8)
At 31 March 2017                                  18                    12                61              91


                                                             6 months to         6 months to      Year ended
                                                                31 March            31 March    30 September
                                                                    2018                2017            2017
                                                                      $m                  $m              $m
Current assets
Other financial assets                                                 -                  61               -

Non-current assets
Other financial assets                                                43                  30              34

Restricted cash deposits are in respect of mine rehabilitation obligations.

Available for sale financial assets include listed investments of $21 million (31 March 2017 - $8 million and 30
September 2017 - $16 million) held at fair value using the market price on 31 March 2018.

On 8 July 2010, Lonmin entered into an agreement to provide financing of GBP200 million to Lexshell 806 Investments
Proprietary Limited, a subsidiary of Phembani Group Proprietary Limited (Phembani), to facilitate the acquisition, at fair
value, of 50.03% of shares in Incwala Resources Proprietary from the original HDSA shareholders. The terms of the
financing provided by Lonmin Plc to the Phembani subsidiary include the accrual of interest on the HDSA receivable at a
fixed rate based on a principal value of GBP200 million which is repayable on demand, including accrued interest.


The Company holds the HDSA receivable at amortised cost. The receivable is secured on shares in the HDSA borrower,
Lexshell 806 Investments Proprietary Limited, whose only asset of value is its holding in Incwala Resources Proprietary
Limited (Incwala). Incwala's principal assets are investments in Western Platinum Limited (WPL), Eastern Platinum
Limited (EPL) and Akanani Mining Proprietary Limited (Akanani), all subsidiaries of Lonmin Plc. One of the sources of
income to fund the settlement of the receivable is the dividend flow from these underlying investments. Given the
continued subdued PGM pricing environment, there have not been any substantial dividends declared by these Lonmin
subsidiaries in recent years.

The HDSA receivable is disclosed as a current asset as it was redeemable at any time on or after 8 July 2015 at Lonmin's
request. It is not our current intention to request redemption as Phembani could forfeit the loan and the 50.03% that
Phembani hold in Incwala would revert to Lonmin. There is ongoing engagement with Phembani around this.


The valuation of the HDSA receivable is based on the valuation of Incwala's underlying investments in WPL, EPL and
Akanani. This asset was fully impaired at 30 September 2017 due to the decline in the valuation of the Marikana
operations (WPL and EPL). The loan was impaired by $34 million in the six months to 31 March 2018 to offset interest
accrued and exchange gains and bring the carrying value back to nil.

8 Deferred revenue

In 2016 Lonmin secured competitive funding of $50 million for the Bulk Tailings Treatment project ("the BTT project")
through a specific project finance metal streaming arrangement. The $50 million has been treated as deferred revenue.
Contractual deliveries will be at a discounted price which will be treated as normal sales. The deferred revenue of $50
million will be amortised by the discount value of the deliveries. Project funding of $7 million was received for the six
months to 31 March 2018 (31 March 2017 - $26 million and 30 September 2017 - $34 million). The plant was
commissioned in February 2018 and is expected to ramp up to full production during the second half of 2018.

                                                                             6 months to     6 months to      Year ended
                                                                                31 March        31 March    30 September
                                                                                    2018            2017            2017
                                                                                      $m              $m              $m

Opening balance                                                                       40               9               9
Deferred revenue received                                                              7              26              34
Less: Contractual deliveries                                                           -             (2)             (3)
Closing balance                                                                       47              33              40

Current liabilities
Deferred revenue                                                                      13               -              13

Non-current liabilities
Deferred revenue                                                                      34              33              27


9 Analysis of net cash(i)

                                                                                                    Foreign
                                                                     As at                     exchange and        As at
                                                                 1 October                         non-cash     31 March
                                                                      2017        Cash flow       movements         2018
                                                                        $m               $m              $m           $m
Cash and cash equivalents(ii)                                          253            (102)              16          167
Current borrowings                                                   (150)                -               -        (150)
Net cash as defined by the Group                                       103            (102)              16           17

                                                                                                Foreign
                                                                                           exchange and            As at
                                                                       As at                   non-cash     30 September
                                                                1 April 2017    Cash flow     movements             2017
                                                                          $m           $m            $m               $m
Cash and cash equivalents(ii)                                            229           25           (1)              253
Current borrowings                                                         -            -         (150)            (150)
Non-current borrowings                                                 (154)            4           150                -
Net cash as defined by the Group                                          75           29           (1)              103
                             
                                                                                                Foreign
                                                                       As at                   exchange            As at
                                                                   1 October               and non-cash         31 March
                                                                        2016    Cash flow     movements             2017
                                                                          $m          $m             $m               $m
Cash and cash equivalents(ii)                                            323        (98)              4              229
Non-current borrowings                                                 (150)         (4)              -            (154)
Net cash as defined by the Group                                         173       (102)              4               75

Footnotes:
i   Net cash as defined by the Group comprises cash and cash equivalents, bank overdrafts repayable on demand and interest 
    bearing loans and borrowings less unamortised bank fees, unless the unamortised bank fees relate to undrawn facilities 
    in which case they are treated as other receivables.
ii  Current cash and cash equivalents to the value of $nil was treated as restricted cash to be utilised for rehabilitation 
    obligations (31 March 2017 - $6 million and 30 September 2017 - $nil).
iii As at 31 March 2018 unamortised bank fees of $2 million relating to undrawn facilities were included in other receivables 
    (31 March 2017 and 30 September 2017 - $3 million).

The Group's debt facilities are summarised as follows:

The debt facilities available to the Group are subject to financial covenants as detailed below. During the period covenant waivers
were agreed with the lenders. The waiver period runs from 30 September 2017 to 28 February 2019 which is the long-stop date
for the acquisition of the Group by Sibanye-Stillwater. A condition of the waivers was that $66 million of the revolving credit
facilities were cancelled and that the Group leaves undrawn the remaining revolving credit facilities during the waiver period. The
waivers are conditional on the completion of the acquisition of the Group by Sibanye-Stillwater. In the event that the deal does
not complete the covenant waivers allow for a 20 business day grace period whilst other options are pursued. During the 20 day
grace period the Group will not be required to repay the loan. On completion of the acquisition the term loan of $150 million
would be repaid and debt facilities cancelled.

The tangible net worth (TNW) as defined by the debt facilities is net assets less intangible assets, deferred tax assets and non-
controlling interests.

The Group's debt facilities are summarised as follows:

- Revolving credit facilities (RCF) totalling $25 million and a $150 million term loan, at a Lonmin Plc level, which are committed
  until May 2019 (Lonmin can exercise its option to extend the term up until May 2020). The Company has agreed to leave the
  RCF undrawn until 28 February 2019 subject to the terms noted above.
- Revolving credit facility totalling R1,743 million, at a Western Platinum Limited level, which is committed until May 2019 (and
  likewise Lonmin can extend the term until May 2020). The Company has agreed to leave the RCF undrawn until 28 February
  2019 subject to the terms noted above.

The following financial covenants will apply to these facilities except for during the waiver period of 30 September 2017 to 28
February 2019:

- The consolidated tangible net worth of the Group will not be at any time less than $1,100 million. At 31 March 2018
  consolidated tangible net worth was $631 million (31 March 2017 - $1,434 million and 30 September 2017 - $674 million);
- The consolidated debt of the Group will not at any time exceed an amount equal to 35% of consolidated tangible net worth of
  the Group. At 31 March 2018 consolidated debt: consolidated tangible net worth was 24% (31 March 2017 � 11% and 30
  September 2017 � 22%);
- The liquidity of the Group will not, for any week from 1 January 2016, be less than $20 million. Cash and cash equivalents as
  at 31 March 2018 was $167 million (31 March 2017 - $229 million and 30 September 2017 - $253 million);
- The capital expenditure of the Group (excluding the Bulk Tailings Agreement) shall not exceed the limits set out in the table
  below:

Financial Year                                                                                                     Capex Limit
1 October 2015 � 30 September 2016 (inclusive)                                                               ZAR 1,338 million
1 October 2016 � 30 September 2017 (inclusive)                                                               ZAR 1,242 million
1 October 2017 � 30 September 2018 (inclusive)                                                               ZAR 2,511 million
1 October 2018 � 30 September 2019 (inclusive)                                                               ZAR 3,194 million
1 October 2019 � 31 May 2020 (inclusive)                                                                     ZAR 4,049 million

There is also additional limit on capital expenditure in relation to the Bulk Tailings Agreement as set out below:

Financial Year                                                                                       Bulk Tailings Capex Limit
1 October 2015 � 30 September 2016 (inclusive)                                                                 ZAR 103 million
1 October 2016 � 30 September 2017 (inclusive)                                                                 ZAR 414 million
1 October 2017 � 30 September 2018 (inclusive)                                                                  ZAR 75 million

The limit on capital expenditure in relation to the Bulk Tailings Agreement after 30 September 2018 will be zero.

As at 31 March 2018, Lonmin had net cash of $17 million, comprising cash and cash equivalents of $167 million less
borrowings of $150 million (31 March 2017 - $75 million and 30 September 2017 - $103 million). Undrawn facilities of $172
million were suspended from 30 September 2017 until 28 February 2019 subject to the terms noted above (31 March 2017
- $218 million and 30 September 2017 - $151 million undrawn facilities).

10 Impairment of non-financial assets

An assessment at 31 March 2018 of the key external and internal factors did not identify any indicators of impairment.
Factors considered included, short to long-term commodity prices; Rand:Dollar exchange rates; performance in the period
and future performance production expectations; market capital; and the continuing plan to sell the Group to Sibanye-
Stillwater.

Impairments in 2017 of $146 million at 31 March 2017 and $1,053 million at 30 September 2017 related to a reduction in
the recoverable value of the Marikana CGU (31 March 2017 - $134 million and 30 September 2017 - $1,050 million) and
Akanani CGU ($3m for both 31 March 2017 and 30 September 2017) driven by changes in the Business Plan and revision to
underlying assumptions.

11 Business combinations

Pandora acquisition
On 6 December 2017 the Group acquired 50% of the Pandora Joint Venture (Pandora JV), bringing the Group's interest in
Pandora to 100%.

Previously the 50% interest held as a joint venture had been an equity accounted investment. The carrying value of the
50% equity investment in the joint venture was $24 million on acquisition. The determination of the fair value of the net
assets acquired has not yet been completed, and the provisional disclosure of the acquisition below will be subject to
further review later in the year. It has been provisionally assumed that the fair values of the assets acquired are equal to
the purchase consideration. The evaluation of the fair values of tangible and intangible assets will be determined during
the adjustment period.

The provisional fair values of the net assets acquired and the fair value of the consideration paid were as follows:

                                                                                                               $m
Purchase consideration                                                                 
Cash                                                                                                            4
Contingent consideration                                                                                       19
Total for 50%                                                                                                  23
Total for 100%                                                                                                 47
                                                                
Fair value of net assets acquired                                                                
Non-current assets                                                                                             50
Current assets                                                                                                  1
Net payable deemed settled on consolidation                                                                   (1)
Non-current liabilities                                                                                       (3)
Net assets acquired                                                                                            47
Consideration                                                                                                  47
Goodwill                                                                                                        -

The purchase price for the 50% of Pandora acquired amounted to $23 million comprising cash consideration of $4 million
and contingent consideration with a present value of $19 million. The contingent consideration represents the present
value of deferred cash payments of 20% of the distributable free cash flows generated by the Pandora E3 operations on an
annual basis for a period of six years, subject to a minimum of R400 million (in nominal terms). Present values of future
cash flows have been determined using an estimated post-tax cost of debt of 8.2%. Pandora held both accounts payable
and accounts receivable balances with Lonmin at the acquisition date. A net $1 million payable balance was deemed
settled on consolidation.

In the income statement there is a $24 million cumulative FX loss on the translation of the Pandora JV balance sheet from
Rand to Dollar. In prior periods the Rand strengthened significantly and this loss was previously recognised in the
consolidated statement of comprehensive income. On acquiring control of this asset the original 50% held was deemed as
sold, prior to the acquisition of 100%, and the $24 million loss was recognised in the income statement in accordance with
IFRS.

JSE Sponsor: J.P. Morgan Equities South Africa (Pty) Ltd

Date: 14/05/2018 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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