LONMIN PLC - Third Quarter 2018 Production Report and Business Update

Release Date: 27/07/2018 09:00
Code(s): LON
 
Wrap Text
Third Quarter 2018 Production Report and Business Update

Lonmin Plc (Incorporated in England and Wales)
(Registered in the Republic of South Africa under registration number 1969/000015/10)
JSE code: LON
Issuer Code: LOLMI & ISIN : GB00BYSRJ698 ("Lonmin")


LEI No: 213800FGJZ2WAC6Y2L94


REGULATORY RELEASE

27 July 2018
                         Third Quarter 2018 Production Report and Business Update

Lonmin Plc (“Lonmin” or “the Company”), one of the world’s largest primary platinum producers, today
announces its production results for the quarter ended 30 June 2018 (unaudited) and a business update.

Third Quarter Key Features

- 12 months fatality free.
- YTD LTIFR to 30 June 2018 improved by 16% and TIFR improved by 9%.
- Significant reduction in Section 54 safety stoppages on the back of improving safety indicators.
- 2.6 million total tonnes mined during the third quarter, decreased by 3.1% year on year, partly reflecting a
    planned reduction from the Generation 1 shafts, arising from the closure of some Generation 1 shafts, in
    line with our strategy to reduce high cost production.
- Concentrator recoveries continue to be excellent, improving to 87.4% from 86.8% in the comparable
    quarter last year.
- PGM sales increased by 2.0% to 352,128 ounces for the quarter and Platinum sales of 176,121 decreased
    by 2.3%. The smelters are running normally and we are on track with the planned release of stock that was
    previously locked up in the smelter. We maintain our full-year sales guidance of 650,000 to 680,000
    Platinum ounces.
- Average Rand full basket price up 13.1% on the prior year period, at R13,017 per PGM ounce.
- Unit costs reduced by 11.5% to R11,781 per PGM ounce in the third quarter and were R12,538 per PGM
    ounce for the nine months to 30 June 2018, allowing 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.
- Gross cash of $173 million at 30 June 2018, up from $167 million as at the end of the second quarter.
- Net cash improved to $23 million (gross cash of $173 million less the drawn term loan of $150 million) at
    30 June, up from $17 million (gross cash of $167 million less the drawn term loan of $150 million) at the
    end of the second quarter.
- The Competition and Markets Authority of the UK unconditionally cleared the proposed acquisition of
    Lonmin by Sibanye-Stillwater (the "Offer") on 28 June 2018 which is on target to close in the second half of
    this year.


Third Quarter Production Overview
Safety
- Lonmin is now 12 months fatality free since 29 June 2017. Our safety strategy is centred on the belief that
    Zero Harm is achievable and that important contributions are required from all stakeholders to achieve
    this. Lonmin is grateful for the collaboration between its management, employees, unions 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).


                                                        1
-   Year on year, the 12 month rolling Lost Time Injury Frequency Rate (“LTIFR”) has improved by 17.9% to 3.95
    and the 12 month rolling Total Injury Frequency Rate (“TIFR”) improved 15% to 9.88.
-   We believe that this good performance is as a result of our continual engagement with our employees,
    unions and the Inspectorate and the proactive shaft by shaft cross-site audits, which verify levels of
    compliance with Lonmin Life Rules. These audits are not only assisting the organisation to proactively
    manage the risks and hazards, but provide useful benchmarking and knowledge sharing between the
    operations, maintain the heightened focus on positively influencing employee behaviour, and ensure
    learnings from serious injuries and fatalities from the industry are implemented.
-   All Generation 2 shafts have received the International Standard for Occupational Health and Safety
    (OHSAS) 18001 certification for the first time. The OHSAS 18001 is a significant milestone for Lonmin and
    for each shaft to obtain such certification, further shows Lonmin’s sound health and safety performance
    and stewardship.

Mining Operations
The Marikana mining operations (including Pandora) produced 2.6 million tonnes during the third quarter, a
decrease of 3.1% or 83,000 tonnes on the prior year period, which reflected a planned decrease in production
from the Generation 1 shafts, arising from the closure of some Generation 1 shafts, in line with our strategy to
reduce high cost production in a low price environment.

Generation 2 shafts
Production for the nine months to 30 June 2018 is up 2.8% to 5.5 million tonnes. Tonnes mined from our core
Generation 2 shafts (K3, Rowland, Saffy and E3) were 2.0 million tonnes, a decrease of 3.0% on the prior year
period.

-    K3 produced 740,000 tonnes for the quarter, 1% above the planned production for the quarter. Production
     for the nine months to 30 June 2018 is up 5.1% compared to the prior year period, to 2.1 million tonnes.
     The production for the quarter was down 8.1% on the prior year period, as the development crews which
     had moved to stoping in the prior year (as part of the turnaround strategy following the shaft’s lacklustre
     production in the first 4 months of FY2017, returned to their development area.
-    Saffy shaft produced 583,000 tonnes for the quarter, an increase of 1.0% on the prior year period,
     demonstrating the continued steady state performance. Production for the nine months to 30 June 2018
     is up 2.0% compared to the prior year period, to 1.6 million tonnes.
-    Rowland shaft produced 494,000 tonnes for the quarter, a decrease of 6.6% on the prior year period, as
     mining levels reach the extremities of Rowland’s lease area and the reducing immediately available ore
     reserves (“IAOR”) at the operation and the resultant limited mining flexibility impacted negatively on
     output. Production for the nine months to 30 June 2018 is down 3.2% compared to the prior year period,
     to 1.4 million tonnes. This is being mitigated through an aggressive development strategy focused on ore
     resource blocks that have been recently transferred to Rowland Shaft from neighbouring K3 and K4 shafts.
     Focus also remains on releasing backlog sweepings. The first two raise lines are scheduled to hole in August
     2018. 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.
-    The combined E3 unit (E3 plus Pandora) produced 172,000 tonnes for the quarter, an increase of 26.4%
     on the prior year period. Production for the nine months to 30 June 2018 is up 15.3% compared to the
     prior year period, to 0.5 million tonnes.

Generation 1 shafts
In line with the Group’s rationalisation of high cost areas, production from our Generation 1 shafts (4B, Hossy,
W1 and E1) at 551,000 tonnes continues to decline, as we optimise on remaining ore reserves in these shafts,
and was 9.4% lower than the prior year period. The decrease is also due to E2, which produced until Q3 2017,
now being on care and maintenance. E2 shaft was put on care and maintenance in November 2017.

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

                                                       2
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 planned IAOR, we continue to operate Hossy.

Ore reserves
Operational flexibility was preserved with the IAOR position of 20 months average production at the end of Q3
2018, versus 20 months average production at the end of Q3 2017.

The Rowland available ore reserve has been maintained at 11.5 months since 31 March 2018. While this
remains a concern, the IAOR position is forecast to improve over the next 6 to 12 months as the re-allocated
ore resource blocks mentioned earlier are developed and converted to IAOR.

Production Losses
We are encouraged that tonnes lost due to Section 54 safety stoppages for the quarter were significantly lower
at 3,000 tonnes compared to the prior year period of 44,000 tonnes. This emphasised our improving safety
performance and our continued proactive engagement with all stakeholders including unions, employees, the
DMR Inspectorate and communities.

                                                                        Q3 2018                 Q3 2017
                                                                        Tonnes                  Tonnes
          Section 54 safety stoppages                                     3,000                  44,000
          Management induced safety stoppages                            20,000                  24,000
          Labour/Community disruptions                                        0                  59,000
          Total tonnes lost                                              23,000                 127,000


Process Operations
Concentrator production - Mining
Total tonnes milled from mining operations in the quarter were 2.4 million tonnes whilst metals-in–Concentrate
produced from mining operations was down 6.1% (excluding Pandora) compared to Q3 2017 with 153,152
Platinum ounces.

Underground milled head grade at 4.55 grammes per tonne (5PGE+Au) decreased marginally by 0.5% when
compared to the 4.58 grammes per tonne achieved in the prior year period.

Concentrator recoveries from underground mining for the quarter continue to be excellent at 87.4% (86.8%
achieved in the prior year period).

Concentrator production – Bulk Tailings re-Treatment Project (“BTT”)
The BTT project was successfully hot commissioned on 14 February. Total tonnes milled from the BTT project
were 796,000 tonnes for the quarter, with a head grade of 1.06 grammes per tonne and a recovery rate of
23.2%, producing Metals-In-Concentrate of 3,025 Platinum ounces and 5,987 PGM ounces. We expect the
current level of performance to improve as the project continues to stabilise.

Processing
Number Two furnace was on a planned shut-down from 3 April and has since been started up and came back
online on 5 May 2018. As a result we were able to start releasing some of the smelter lock-up towards the end
of the quarter. The smelters continue to run normally and we are on track with the planned release of stock
that was previously locked up in the smelter.

Total saleable refined Platinum production at 176,626 ounces was 2.0% lower than the prior year period. Total
saleable PGMs produced were 351,458 ounces, a decrease of 2.3% on the prior year period.

There was no release of Platinum ounces from the smelter clean-up project during this period, compared to
the 8,942 Platinum ounces released in Q3 2017. It is expected that circa 6,000 Platinum ounces and 12,000 PGM
ounces will be released from the smelter clean-up project during the next quarter, Q4.
                                                     3
Sales & Pricing
Platinum sales for the quarter were 176,121 ounces, a decrease of 2.3% compared with Q3 2017, in line with
the decrease in production. PGM sales were 352,128 ounces, up 2.0% on Q3 2017 sales, due to the higher
proportion of Ruthenium and Iridium sold, with Ruthenium up 41.5% to 53,501 ounces and Iridium up 21.9%
to 9,993 ounces.

Platinum sales for the nine months to 30 June 2018 were 463,870 ounces and we are maintaining our sales
guidance for the year of 650,000 to 680,000 ounces.

The US Dollar basket price (including base metal revenue) at $1,013 per ounce during the quarter was up 14.9%
on Q3 2017 while the corresponding Rand basket price (R13, 017 per ounce) was 13.1% higher than the
comparative prior year period. The average Rand to US Dollar exchange rate was 4.1% stronger at R12.65
compared to R13.19 in the prior year period.

Unit costs
Unit costs for the quarter were R11, 781 per PGM ounce, a decrease of 11.5% on the R13, 308 per PGM ounce
from the previous quarter and a year-on-year increase of 4.5%. Unit costs for the nine months to 30 June 2018
were R12, 538 per PGM ounce, allowing 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, as previously stated in the interim results.

Outlook and Guidance
We are maintaining our sales guidance of between 650,000 and 680,000 Platinum ounces, as we are on track
with the planned release of stock that was previously locked up in the smelter and absent any unexpected
interruptions to the smooth running of production operations.

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.

We are also maintaining our revised capital expenditure guidance for the current year to between R1.2 billion
and R1.3 billion.

Disposal of the 50% interest in Petrozim
We entered into a conditional Sale of Shares Agreement to sell the 50% interest in Petrozim Line (Private)
Limited (“Petrozim”) for a gross cash consideration of USD14,750,000 to the National Oil Infrastructure
Company of Zimbabwe (Private) Limited (“NOIC”) (the “Transaction”). In addition, Lonmin will receive USD8,
000,000 in the form of special dividends from Petrozim. The Transaction forms part of Lonmin’s ongoing
programme to dispose of non-core assets. The purchase price and special dividends will be paid in cash on
completion of the Transaction and will be used to improve the Company’s liquidity.

The closing of the Transaction is subject to various conditions precedent including approvals from the
Zimbabwean Competition Commission and the Zimbabwe Revenue Authority, in addition to the consent of
Lonmin's lending banks. Subject to fulfilment of the conditions precedent, the Transaction is expected to
complete in Q4 of FY2018.

Update on All-share offer by Sibanye Stillwater
The Competition and Markets Authority (CMA) unconditionally cleared the All-share Offer for Lonmin by
Sibanye-Stillwater (the Offer) on 28 June 2018. The CMA is the UK authority responsible for investigating any
merger that could restrict competition.

The CMA's clearance takes us one step closer to completion of the Offer. The Offer remains subject to the
satisfaction or (where applicable) waiver of the outstanding conditions set out in Appendix I to the
announcement of the Offer on 14 December 2017. Such conditions include, amongst others, the approval by
the South African competition authorities and the approvals of Lonmin and Sibanye-Stillwater shareholders and
the courts of England and Wales.
                                                     4
Lonmin remains fully committed to the Offer and continues to engage constructively with Sibanye Stillwater,
the South African competition authorities and other stakeholders with a view to obtaining clearance in South
Africa. The Offer is expected to close by the end of this year.

                                                 - ENDS –



ENQUIRIES

Investors / Analysts:

Tanya Chikanza                                      +44 20 3908 1073 / +27 83 391 2859
(Executive Vice President: Corporate
Strategy, Investor Relations and Corporate
Communications)
Andrew Mari (Investor Relations)                    +27 60 564 6419

Media:
TB Cardew
Anthony Cardew / Tom Allison                         +44 207 930 0777

Lonmin
Wendy Tlou (Head of Communications)                  +27 83 358 0049

Notes to editors

Lonmin, which is listed on both the London Stock Exchange and the Johannesburg Stock Exchange, is one
of the world's largest primary producers of PGMs. These metals are essential for many industrial
applications, especially catalytic converters for internal combustion engine emissions, as well as their
widespread use in jewellery.

Lonmin’s operations are situated in the Bushveld Igneous Complex in South Africa, where more than 70%
of known global PGM resources are located.

The Company creates value through mining, refining and marketing PGMs and has a vertically integrated
operational structure - from mine to market. Underpinning the operations is the Shared Services function
which provides high quality levels of support and infrastructure across the operations.

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




                                                    5
                                                                                 3 months    3 months    9 months    9 months
                                                                                 to 30 Jun   to 30 Jun   to 30 Jun   to 30 Jun
                                                                                     2018        2017        2018        2017
Tonnes      Ma ri kana                     K3 Sha ft                       kt         740          806       2 080       1 979
Mined(1)                                   Rowl and Shaft                  kt         494          528       1 360       1 404
                                           Sa ffy Shaft                    kt         583          580       1 602       1 571
                                           Ea s t 3 Shaft Combined(2)      kt         172          136         466         404
                                           East 3 Shaft                    kt         172           18         365          57
                                           Pandora (100%)                  kt                      118         101         347
                                           Generation 2                    kt       1 989        2 050       5 507       5 358
                                           4B Sha ft                       kt         317          314         913         996
                                           Hos sy Shaft                    kt         131          163         403         493
                                           Newma n Shaft                   kt                        0                      51
                                           W1 Sha ft                       kt          52           33         142         105
                                           Ea s t 1 Shaft                  kt          51           40         141         115
                                           Ea s t 2 Shaft                  kt                       59          32         191
                                           Generation 1                    kt          551         608       1 632       1 949
                                           Underground                     kt        2 540       2 659       7 139       7 307
                                           Opencast                        kt           42           7          76          45
            Total Marikana                 Marikana Operations             kt        2 582       2 666       7 216       7 352
            Lonmin (100%)                  Total Tonnes Mined (100%)       kt        2 582       2 666       7 216       7 352
                                           % Tonnes mined from UG2         %        72.1%       72.0%       72.1%       73.4%
                                           reef (100%)
            Lonmin (attributable)          Underground & Opencast          kt       2 582       2 606       7 165       7 178
Ounces      Lonmi n excluding Pa ndora     Pt Ounces                       oz     162 966     161 825     450 608     442 571
Mined(3)    BTT                            Pt Ounces                       oz       3 025           0       3 785           0
            Lonmin excl Pandora incl BTT   Pt Ounces                       oz     165 991     161 825     454 392     442 571
            Pa ndora (100%)                Pt Ounces                       oz                   7 995       7 557      23 687
            Lonmin incl Pandora & BTT      Pt Ounces                       oz     165 991     169 820     461 949     466 258

            Lonmi n excluding Pa ndora     PGM Ounces                      oz     314 851     310 503     868 554     848 639
            BTT                            PGM Ounces                      oz       5 987           0        7 428          0
            Lonmin excl Pandora incl BTT   PGM Ounces                      oz     320 838     310 503     875 982     848 639
            Pa ndora (100%)                PGM Ounces                      oz                  16 037      14 962      47 084
            Lonmin incl Pandora & BTT      PGM Ounces                      oz     320 838     326 540     890 945     895 723
Tonnes      Ma ri kana                     Underground                      kt      2 370       2 571        6 911      6 881
Milled(4)                                  Opencast                         kt         44                       56         49
                                           Tota l                           kt      2 413        2 571       6 966      6 930
            Pa ndora 100%(5)               Underground                      kt                     118         101        347
            Before BTT Plant(6)            Tota l                           kt       2 413       2 690       7 067      7 278
                                                      Milled head grade    g/t        4.56        4.58        4.57       4.56
                                                          Recovery rate     %       87.4%       86.8%       87.4%      86.7%
            Lonmi n Pl atinum              Underground                      kt       2 370       2 690       7 012      7 229
                                                   Milled head grade(7)    g/t        4.55        4.58        4.57       4.57
                                                        Recovery rate(8)    %       87.4%       86.8%       87.5%      86.8%
                                           Opencast                         kt          44           0          56         49
                                                   Milled head grade(7)    g/t        4.77           -        4.69       4.42
                                                        Recovery rate(8)    %       84.6%        0.0%       80.8%      68.3%
                                           BTT Pl a nt(6)                   kt         796           0       1 144          0
                                                   Milled head grade(7)    g/t        1.06           -        1.08          -
                                                        Recovery rate(8)    %       23.2%        0.0%       19.7%       0.0%
                                           Tota l                           kt       3 210       2 690       8 211      7 278
                                                   Milled head grade(7)    g/t        3.69        4.58        4.08       4.56
                                                        Recovery rate(8)    %       82.8%       86.8%       84.9%      86.7%




                                                             6
                                                             3 months    3 months    9 months    9 months
                                                             to 30 Jun   to 30 Jun   to 30 Jun   to 30 Jun
                                                                 2018        2017        2018        2017
Metals-in-       Ma ri kana          Pl a tinum         oz    153 152     163 024     443 168     437 695
Concentrate(9)                       Pa l ladium        oz     71 751      75 568     206 715     202 436
                                     Gol d              oz       3 778       3 998     10 970      10 912
                                     Rhodium            oz     22 063      23 092      63 291      62 025
                                     Ruthenium          oz     37 174      38 832     106 892     104 185
                                     Iri dium           oz       7 795       8 157     22 191      21 692
                                     Tota l PGMs        oz    295 714     312 670     853 227     838 945
                                     Ni ckel(10)        MT         761         859       2 198       2 264
                                     Copper(10)         MT         481         540       1 412       1 420
                 Pa ndora            Pl a tinum         oz                   7 995       7 557     23 687
                                     Pa l ladium        oz                   3 811       3 573     11 206
                                     Gol d              oz                      55          52         167
                                     Rhodium            oz                   1 389       1 261       4 021
                                     Ruthenium          oz                   2 297       2 105       6 617
                                     Iri dium           oz                     489         414       1 385
                                     Tota l PGMs        oz          0      16 037      14 962      47 084
                                     Ni ckel (10)       MT                      15          11          48
                                     Copper(10)         MT                       7           6          21
                 BTT Pl a nt(6)      Pl a tinum         oz      3 025                    3 785
                                     Pa l ladium        oz      1 280                    1 586
                                     Gol d              oz         27                       35
                                     Rhodium            oz        435                      530
                                     Ruthenium          oz      1 022                    1 241
                                     Iri dium           oz        198                      251
                                     Tota l PGMs        oz      5 987           0        7 428          0
                                     Ni ckel (10)       MT          4                        6
                                     Copper(10)         MT          4                        5
                 Concentrate         Pl a tinum         oz      5 981         361      15 511         964
                 purcha ses          Pa l ladium        oz      2 002         146        5 059        310
                                     Gol d              oz         21           3           55          5
                                     Rhodium            oz        816          36        2 095         95
                                     Ruthenium          oz      1 268          64        3 216        162
                                     Iri dium           oz        308          18          801         43
                                     Tota l PGMs        oz     10 396         629      26 736       1 579
                                     Ni ckel (10)       MT          7                       17          1
                                     Copper (10)        MT          4                       11
                 Lonmi n Pl atinum   Pl a tinum         oz    162 158     171 381     470 020     462 347
                                     Pa l ladium        oz     75 033      79 525     216 933     213 952
                                     Gol d              oz      3 827       4 056      11 113      11 084
                                     Rhodium            oz     23 315      24 517      67 176      66 141
                                     Ruthenium          oz     39 464      41 193     113 454     110 964
                                     Iri dium           oz      8 301       8 664      23 657      23 120
                                     Tota l PGMs        oz    312 097     329 336     902 354     887 607
                                     Ni ckel (10)       MT        772         875        2 232      2 312
                                     Copper (10)        MT        489         547        1 434      1 441




                                                    7
                                                                           3 months      3 months    9 months    9 months
                                                                           to 30 Jun     to 30 Jun   to 30 Jun   to 30 Jun
                                                                                2018         2017        2018        2017
Refined      Lonmi n refined metal production      Pl a tinum         oz    176 561       179 158     452 318     479 396
Production                                         Pa l ladium        oz     82 799        88 551     212 689     221 682
                                                   Gol d              oz       4 546         4 776     11 948      12 454
                                                   Rhodium            oz     27 303        29 976      67 809      72 569
                                                   Ruthenium          oz     49 459        44 667     110 719     113 392
                                                   Iri dium           oz       9 949       10 057      23 056      24 740
                                                   Tota l PGMs        oz    350 617       357 185     878 538     924 233
             Tol l refined metal production        Pl a tinum         oz          278        1 164       1 007       2 187
                                                   Pa l ladium        oz          114          439         371         634
                                                   Gol d              oz             5          21          17          29
                                                   Rhodium            oz          107          174         153         251
                                                   Ruthenium          oz          403          553         545         789
                                                   Iri dium           oz            66         144          92         172
                                                   Tota l PGMs        oz          973        2 496       2 186       4 062
             Tota l refined PGMs                   Pl a tinum         oz    176 839       180 323     453 325     481 583
                                                   Pa l ladium        oz     82 913        88 990     213 060     222 316
                                                   Gol d              oz       4 551         4 797     11 965      12 482
                                                   Rhodium            oz     27 410        30 150      67 963      72 820
                                                   Ruthenium          oz     49 863        45 220     111 264     114 182
                                                   Iri dium           oz     10 015        10 201      23 147      24 911
                                                   Tota l PGMs        oz    351 589       359 680     880 724     928 294
             BMR Concentrate Sales (Saleable       Pl a tinum         oz       (212)                     7 313
             Refi ned production)                  Pa l ladium        oz          129                    3 340
                                                   Gol d              oz            19                     198
                                                   Rhodium            oz           (1)                   1 092
                                                   Ruthenium          oz         (34)                    1 782
                                                   Iri dium           oz         (33)                      336
                                                   Tota l PGMs        oz       (131)                   14 061
             Tota l saleable refined PGMs   (11)   Pl a tinum         oz    176 626       180 323     460 638     481 583
                                                   Pa l ladium        oz     83 042        88 990     216 400     222 316
                                                   Gol d              oz       4 570        4 797      12 163      12 482
                                                   Rhodium            oz     27 409        30 150      69 055      72 820
                                                   Ruthenium          oz     49 829        45 220     113 046     114 182
                                                   Iri dium           oz       9 982       10 201      23 484      24 911
                                                   Tota l PGMs        oz    351 458       359 680     894 785     928 294
             Ba s e metals                         Ni ckel (12)       MT          998       1 040        2 520      2 516
                                                   Copper(12)         MT          578         596        1 366      1 443




                                                                  8
                                                                             3 months      3 months    9 months     9 months
                                                                             to 30 Jun     to 30 Jun    to 30 Jun    to 30 Jun
                                                                                  2018         2017         2018         2017
Sales        Refi ned Metal Sales                Pl a tinum          oz       176 334       180 348      456 557      487 343
                                                 Pa l ladium         oz        82 615        87 208      214 470      219 724
                                                 Gol d               oz          4 789         4 341      12 808       11 686
                                                 Rhodium             oz        24 961        27 433       68 508       78 430
                                                 Ruthenium           oz        53 535        37 823      116 382      135 498
                                                 Iri dium            oz        10 026          8 201      23 977       22 530
                                                 Tota l PGMs         oz       352 259       345 354      892 704      955 212
                                                 Ni ckel (12)        MT             895        1 011        2 432        2 739
                                                 Copper (12)         MT             686          838        1 782        1 054
                                                 Chrome (12)         MT       425 448       387 478    1 070 471    1 039 133
             BMR Concentrate Sales (13)          Pl a tinum          oz          (212)                      7 313
                                                 Pa l ladium         oz             129                     3 340
                                                 Gol d               oz               19                      198
                                                 Rhodium             oz              (1)                    1 092
                                                 Ruthenium           oz            (34)                     1 782
                                                 Iri dium            oz            (33)                       336
                                                 Tota l PGMs         oz          (131)                    14 061
             Lonmi n Pl atinum                   Pl a tinum          oz       176 121       180 348      463 870      487 343
                                                 Pa l ladium         oz        82 743        87 208      217 810      219 724
                                                 Gol d               oz          4 808        4 341       13 006       11 686
                                                 Rhodium             oz        24 960        27 433       69 601       78 430
                                                 Ruthenium           oz        53 501        37 823      118 163      135 498
                                                 Iri dium            oz          9 993        8 201       24 313       22 530
                                                 Tota l PGMs         oz       352 128       345 354      906 765      955 212
                                                 Ni ckel (12)        MT             895       1 011         2 432       2 739
                                                 Copper (12)         MT             686         838         1 782       1 054
                                                 Chrome (12)         MT       425 448       387 478    1 070 471    1 039 133
Average      Pl a tinum                                             $/oz            896         941           927         953
Prices       Pa l ladium                                            $/oz            974         819           996         763
             Gol d                                                  $/oz         1 314        1 258         1 299       1 226
             Rhodium                                                $/oz         2 116          971         1 791         860
             $ ba s ket excl. by-product revenue (14)               $/oz            914         819           923         772
             $ ba s ket incl. by-product revenue (15)               $/oz         1 013          882         1 012         828
             R ba s ket excl. by-product revenue (14)               R/oz       12 148        10 682       11 961       10 329
             R ba s ket i ncl. by-product revenue (15)              R/oz       13 017        11 506       12 958       11 088
             Ni ckel (12)                                           $/MT       12 303         7 627       10 678        8 268
             Copper(12)                                             $/MT         6 372        4 902         6 493       5 017

Unit Costs   Cos t of Production per PGM ounce                      ZAR/oz      11 781       11 278       12 538      11 770

Exchange     Avera ge ra te for period (16)                          R/$         12.65        13.19        12.71       13.44
Rates        Cl os ing ra te                                         R/$         13.72        13.05        13.72       13.05




                                                                9
  Notes
    1 Reporting of shafts are i n line with our operating s trategy for Generation 1 a nd Generation 2 s hafts.
    2 E3 Sha ft and Pa ndora underground tonnes mined a re reported as E3 Shaft Combined since 1 December 2017 when Lonmin
        requi red 100% of Pa ndora.
    3 Ounces mined have been ca lculated at a chieved concentrator recoveries a nd with Lonmin standard downstream processing
        recoveri es to present produced saleable ounces.
    4 Tonnes milled excludes slag milling.
    5 As from 1 December 2017 Lonmin owns 100% of Pa ndora joint venture and there will be no ore purchases therafter.
    6 The BTT (Bulk Ta ilings Treatment) project was commissioned i n February 2018.
    7 Hea d Grade is the gra mmes per tonne (5PGE + Au) va lue contained i n the tonnes milled a nd fed into the concentrator from the
        mi nes (excludes slag milled).
    8 Recovery ra te in the concentrators i s the total content produced divided by the total content milled (excluding slag).
    9 Meta ls-in-concentrate are calculated at Lonmin standard downstream processing recoveries to present produced saleable
        ounces.
   10 Corres ponds to contained base metals i n concentrate.
   11 Sa l eable refined production i ncludes production associated with BMR concentrate sales.
   12 Ni ckel is produced a nd sold as nickel sulphate crys tals or solution a nd the volumes shown correspond to contained metal.
        Copper i s produced as refined product but typically a t LME gra de C. Chrome i s produced i n the form of chromite concentrate
        a nd vol umes s hown a re in the form of chromite.
   13 Incl udes s aleable refined production associated with BMR concentrate sales.
   14 Ba s ket price of PGMs is based on the revenue generated in Rand and Dollar from the a ctual PGMs (5PGE + Au) s old i n the period
        ba s ed on the a ppropriate Rand / Dollar exchange rate a pplicable for each sales tra nsaction.
   15 As per note 14 but i ncluding revenue from base metals.
   16 Excha nge ra tes a re calculated using the market average daily cl osing ra te over the course of the period.



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




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