Wrap Text
Fourth Quarter and Full Year 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
22 October 2018
Fourth Quarter and Full Year 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 three and twelve months to 30 September 2018, including a
business update, both on an unaudited basis. Lonmin also released a separate announcement today, on a
refinancing of its existing debt facilities.
Overview
- Regrettably we had a fatality on 30 September 2018, ending a 15 month fatality free period at Lonmin’s
operations. The twelve-month rolling LTIFR to 30 September 2018 improved by 12.39% to 3.96 per
million man hours.
- Unaudited net cash improved to $114 million at 30 September 2018, up from $103 million at 30
September 2017.
- Tonnes mined by our Generation 2 shafts for the year increased 1.6% to 7.6 million tonnes, reflecting
consistent performance at our core shafts. The average shaft utilisation capacity for our Generation 2
shafts was 83%, with Saffy shaft achieving an average shaft utilisation of 92% for the year.
- Tonnes mined by our Generation 2 shafts for the fourth quarter of 2.1 million tonnes were broadly flat
on Q4 2017.
- Platinum sales of 681,580 ounces for the year exceeded our guidance of between 650,000 and 680,000
Platinum ounces. Platinum sales for the fourth quarter were 217,710 ounces, broadly flat on Q4 2017.
Total PGM sales for the full year were 1,323,708 ounces.
- Our unaudited average Rand full basket price (including base metals) for the quarter up 25.5% on Q4
2017 at R14,512 per PGM ounce and up 19.7% for the year, at R13,447 per PGM ounce.
- Our unaudited unit costs for Q4 2018 were R11,617 per PGM ounce (6E basis), an increase of 0.8% on
Q4 2017. Unaudited unit costs for the year were R12,271 per PGM ounce, an increase of 4.9% on prior
year and within our unit cost guidance of between R12,000 and R12,500 per PGM ounce.
Ben Magara, Chief Executive Officer, said: “Despite tough market conditions, except the favourable Rand,
we have delivered more than we promised in all areas of our business. These pleasing results demonstrate
once again that despite these uncertain times, we can dig deep and use all levers within our control to
maintain our net cash position. Both the good business performance and the new funding arrangement
we announced today enhance Lonmin’s short term liquidity. However, the new facility is still insufficient
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to avoid the announced retrenchments and shaft closures. Accordingly, the Board of Lonmin remains
focused on completing the Sibanye-Stillwater all share transaction, which we firmly believe provides a
sustainable solution and is in the best interest of all our stakeholders.”
3 months 3 months % 12 months 12 months %
to 30 Sep to 30 Sep change to 30 Sep to 30 Sep change
2018 2017 2018 2017
Generation 2 K3 Shaft kt 778 852 -8.6% 2 858 2 831 1.0%
Tonnes
Mined1 Rowland Shaft kt 544 520 4.6% 1 904 1 925 -1.1%
Saffy Shaft kt 609 604 0.9% 2 211 2 174 1.7%
East 3 Shaft combined kt 188 170 10.4% 654 574 13.8%
Total Generation 2 kt 2 120 2 146 -1.2% 7 627 7 504 1.6%
Generation 1 kt 625 650 -3.9% 2 257 2 600 -13.2%
Sales refined Platinum oz 217 710 218 687 -0.4% 681 580 706 030 -3.5%
metal Total PGMs oz 416 944 426 200 -2.2% 1 323 708 1 381 413 -4.2%
Average $ basket incl. by-product revenue(12) $/oz 1 027 880 16.7% 1 016 844 20.4%
Prices R basket incl. by-product revenue(12) 14 512 11 567 25.5% 13 447 11 236 19.7%
ZAR/oz
Exchange rate Average rate for period(13) ZAR/$ 14.06 13.17 6.7% 13.07 13.37 -2.3%
Unit costs Unaudited cost of production per PGM ounce ZAR/oz 11 617 11 524 -0.8%
Safety
Our continued collaboration with key stakeholders, including employees, the Department of Mineral
Resources (“DMR”) and our majority union, the Association of Mineworkers and Construction Union
(“AMCU”), continues to yield results, as we have experienced improved safety performance and
decreasing Section 54 stoppages. We apply the international OHSAS 18001 Occupational Health and Safety
Management Systems at all our Generation 2 shafts including Processing and Shared Services to assist our
operations to manage, control and improve our health and safety risks. Our safety strategy is centred on
the belief that Zero Harm is achievable and important contributions are required from all stakeholders to
achieve it.
- Despite most safety indicators showing improvement, regrettably one of our colleagues was fatally
injured on 30 September 2018. We extend our deepest condolences to the family and friends of our
colleague and deeply regret our loss.
- Our twelve month rolling Lost Time Injury Frequency Rate (“LTIFR”) to 30 September 2018 improved
by 12.39% to 3.96 per million man hours from 4.52 per million man hours in the prior year due to
a 9.32% reduction in Lost Time Injuries.
- Our twelve month rolling Total Injury Frequency Rate (“TIFR”) to 30 September 2018 improved by
5.23% to 10.14 per million man hours from 10.70 in the prior year due to a 11.45% reduction in Total
Injuries.
- Lonmin achieved 15 months fatality free from 29 June 2017 to 29 September 2018.
- Lonmin received the most prestigious award at the National MineSafe 2018 – Best Safety
Improvement Mining Company.
- At MineSafe 2018 our K3 Shaft UG2 Section won the JT Ryan award and four other awards were
received in two more categories.
- Rowland Shaft achieved 3 million Fatality Free Shifts and 4B shaft and E3 shaft are both on 1 million
Fatality Free Shifts.
- Some of the noteworthy achievements by the Processing Divisions include the Assay laboratory
achieving 12 years of operating without a lost-time injury and the PMR operating 12 months without
any injury.
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- Our safety performance is only possible through our circa 32,000 employees and contractors
remaining vigilant in order to work and return home safely.
Fourth Quarter Production Overview
Mining Operations
Our key Generation 2 shafts production for the quarter of 2.1 million tonnes (around 77% of total mining
production) was broadly flat on the 2.1 million tonnes production in Q4 2017.
Generation 2 shafts
- K3 shaft produced 778,000 tonnes, a decrease of 8.6% on the prior year period as expected, as the
development crews which had moved to stoping in the prior year (as part of the turnaround strategy),
returned to their development area.
- Saffy shaft produced 609,000 tonnes, an increase of 0.9% on the Q4 2017, demonstrating the
continued steady state performance.
- Rowland shaft produced 544,000 tonnes, an increase of 4.6% on Q4 2017, as we opened new reserves,
released backlog sweepings and equipped previously unavailable remnant “white” areas. This was the
shaft’s best quarterly production since the fourth quarter of the 2011 financial year. Rowland’s
immediately available ore reserves have improved from 11.5 months to 14.3 months.
- The combined E3 unit (E3 plus Pandora) produced 188,000 tonnes for the quarter, an increase of 10.4%
on Q4 2017 on the back of safety performance and steadfast management. On completion of the
Pandora acquisition in December 2017, the E3 shaft and Pandora production were combined and
reclassified as a Generation 2 shaft, with comparative numbers adjusted accordingly.
Generation 1 shafts
In line with the Group’s rationalisation of high cost areas in an oversupplied market, production from our
Generation 1 shafts (4B, Hossy, W1 and E1) at 625,000 tonnes continues to decline as planned, as we
optimise our remaining ore reserves in these shafts, and was 3.9% lower than Q4 2017. The decrease is
also due to E2, which produced until Q3 2017, being on care and maintenance since November 2017.
As W1 and E1 are at the end of their resource lives, mining is in remnant areas. Consequently, contractors
operate these shafts and are responsible for all the costs associated with such shafts. Lonmin pays a
predetermined rate per tonne of ore produced. We thus retain the flexibility to cease production if and
when these shafts become unprofitable.
4B shaft produced 358,000 tonnes, an increase of 10.4% on the prior year period, as it sought to recover
from worse than anticipated geological conditions and safety challenges of the previous quarter. 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.
Hossy shaft produced 178,000 tonnes, an increase of 9.7% on Q4 2017. Hossy shaft was originally
scheduled to be put on care and maintenance, but it continues to demonstrate potential to contribute to
the business and its performance is being reviewed on a quarterly basis. Based on this and the Immediately
Available Ore reserves (“IAOR”), which stands at 6.8 months, we continue to operate Hossy.
Production Losses
For the fourth quarter, production lost due to Section 54 safety stoppages totalled only 1,000 tonnes,
compared to 38,000 tonnes in Q4 2017, on the back of our improved ongoing focus on safety and pro-
active interactions with employees, organised labour, the Inspectorate of the DMR and communities.
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Q4 2018 Q4 2017
Ore tonnes Ore tonnes
Section 54 safety stoppages 1,000 38,000
Management Induced Safety Stoppages and other 15,000 22,000
Community disruptions and other 22,000 56,000
Total tonnes lost 38,000 116,000
Process Operations
Concentrator production - Mining
Total tonnes milled from mining operations in the quarter were broadly flat at 2.8 million tonnes.
Total metals-in–concentrate produced of 183,948 Platinum ounces decreased by 1.5% compared to Q4
2017.
Underground milled head grade at 4.57 grammes per tonne (5PGE+Au) decreased by 3.3% when compared
to the 4.72 grammes per tonne achieved in the prior year period.
Concentrator recoveries from underground mining for the quarter were 86.8% compared to 87.6%
achieved in Q4 2017.
Concentrator production – Bulk Tailings re-Treatment Project (“BTT”)
The BTT project was successfully commissioned in February 2018. Total tonnes milled from the BTT project
were 894,000 tonnes for the quarter, with a head grade of 1.12 grammes per tonne and a recovery rate
of 23.2%, producing metals-in-concentrate of 3,633 Platinum ounces and 7,156 PGM ounces. Having
reached designed throughput, we are now focusing on improving recoveries.
Concentrate purchases increased by 58% to 6,167 saleable Platinum ounces, as we sought to maximise
downstream processing utilisation and reduce unit costs.
Processing
The smelters operated well and the stock that was previously locked up in the prior period has now been
released.
Total saleable refined Platinum production at 217,951 ounces was 5.8% higher than Q4 2017. Total
saleable PGMs produced were 423,833 ounces, an increase of 8.0% on Q4 2017.
We released 6,000 Platinum ounces from the smelter clean-up project during this period, compared to the
12,445 Platinum ounces released in Q4 2017.
Sales & Pricing
Platinum sales for the quarter were 217,710 ounces, broadly flat on Q4 2017. PGM sales were 416,944
ounces, down 2.2% on Q4 2017
The US Dollar basket price (including base metal revenue) at $1,027 per ounce during the quarter was up
16.7% on Q4 2017 while the corresponding Rand basket price (R14,512 per PGM ounce) was 25.5% higher
than Q4 2017. The average Rand to US Dollar exchange rate was 6.7% weaker at 14.06 compared to 13.17
in Q4 2017.
Full Year Production Overview
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Mining Operations
The improvement in our mining production performance and the mining rhythm established following
implementation of flatter management structures and other measures to improve performance since
March 2017 has continued in the current year, with our key Generation 2 shafts producing 7.6 million
tonnes (around 77% of total mining production), increasing production by 1.6%.
Generation 2 shafts
- K3, our biggest shaft, produced 2.9 million tonnes, an increase of 1.0% on the prior year.
- Saffy shaft produced 2.2 million tonnes, an increase of 1.7% on the prior year, demonstrating the
continued steady state performance.
- Rowland shaft produced 1.9 million tonnes, down 1.1% on the prior year, notwithstanding 4.6% year-
on-year increase in the fourth quarter and the increase in the IAOR to 14.3 months from 11.5 months
in Q3 2018, achieved by opening new reserves, releasing backlog sweepings and equipping previously
unavailable remnant “white” areas.
- The combined E3 unit (E3 plus Pandora) produced 0.7 million tonnes for the year, an increase of 13.8%
on the prior year, following the consolidation with E3 and the unlocking of synergies after the
acquisition of 100% of Pandora.
Generation 1 shafts
Production from our Generation 1 shafts (4B, Hossy, W1, E1 and E2) at 2.3 million tonnes was 13.2% lower
than the prior year, in line with the Group’s rationalisation of these shafts. Newman shaft was placed on
care and maintenance in March 2017.
Production Losses
We are encouraged that tonnes lost due to Section 54 safety stoppages for the year were significantly
lower at 20,000 tonnes compared to the prior year of 276,000 tonnes. This emphasised our improving
safety performance and our continued proactive engagement with all stakeholders including employees,
organised labour, the Inspectorate of the DMR and communities. The reduced operational disruptions
facilitated a safe mining rhythm which is crucial for good production.
2018 2017
Ore tonnes Ore tonnes
Section 54 safety stoppages 20,000 276,000
Management induced safety stoppages and other 96,000 176,000
Community disruptions and other 54,000 143,000
Total tonnes lost 170,000 595,000
Immediately Available Ore Reserves
The immediately available ore reserve position of our Generation 2 shafts at 30 September 2018 was
equivalent to 21 months average production versus 20 months at 30 September 2017.
(m2 '000) Months
2018 2017 2018 2017
K3 806 844 22 19
Rowland 415 309 14 12
Saffy 738 772 23 25
E3 348 345 30 29
Generation 2 2 307 2 270 21 20
Generation 1 448 700 21 17
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K4 188 188
Total 2 943 3 158 21 19
We have successfully increased Rowland’s immediately available ore reserves to 14 months as at 30
September 2018 from 11.5 as at 30 June 2018, mainly due to the first “raise holings” in the MK2 area
which have established additional mining faces.
Lonmin is progressing discussions to secure third party funding for the MK2 extension project.
The ore reserve position of the Marikana mining operations is still at a level that provides the necessary
flexibility required for efficient mining (industry benchmark of around 12-15 months).
Process Operations
Concentrator production - Mining
Total tonnes milled from mining operations for the year at 9.8 million tonnes were broadly flat on the prior
year, despite reduced output from depleting Generation 1 shafts
Total metals-in–concentrate produced at 653,969 Platinum ounces were broadly flat compared to the
prior year.
Underground milled head grade at 4.57 grammes per tonne (5PGE+Au) decreased marginally by 0.9%
when compared to the 4.61 grammes per tonne achieved in the prior year.
Concentrator recoveries from underground mining for the quarter increased marginally to 87.3%
compared to 87.1% achieved in the prior year.
Concentrator production – Bulk Tailings re-Treatment Project (“BTT”)
The BTT project was successfully commissioned in February. Total tonnes milled from the BTT project were
2.0 million tonnes for the year, with a head grade of 1.10 grammes per tonne and a recovery rate of 21.3%,
producing metals-in-concentrate of 7,417 Platinum ounces and 14,584 PGM ounces.
Concentrate purchases increased by 345% to 21,678 saleable Platinum ounces, as we sought to maximise
downstream processing utilisation and reduce unit costs.
Processing
Furnace Number One had an unplanned outage in December 2017 bringing forward its planned shutdown
scheduled for the end of 2018. Furnace Number Two was on a planned shut-down from 3 April till 5 May
2018. During these periods the three Pyromet furnaces were in operation.
Both the main Furnaces are stable after their individual shutdowns and continue to run normally and the
metal that was previously locked up has been released.
Total saleable refined Platinum production at 678,588 ounces was 1.3% lower than the prior year
production. Total saleable PGMs produced were 1,318,618 ounces, broadly flat on the prior year.
The smelter clean-up project and permanent release from the smelting and refining plants continued
during the current year and released a total of 6,000 ounces of Platinum during the year, less than the
31,682 ounces in the prior year as expected.
Lonmin Beneficiation
- Thakadu Nickel Purification Plant
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Thakadu Battery Materials (Pvt) Ltd is in the process of constructing a R250-million nickel purification
plant at Lonmin’s base metal refinery. The plant will convert Lonmin’s existing crude nickel sulphate
into high quality battery-grade nickel sulphate, which can be sold at a premium and thus create value
for both Thakadu and Lonmin. The plant is able to produce 25,000 tonnes per year of high-purity nickel
sulphate. All major equipment has been ordered and key contracts have been awarded by Thakadu.
Commissioning of the plant is scheduled for 2019. The plant is expected to create over 60 permanent
jobs once in operation.
- PMR Beneficiation – 3D Printing
The Lonmin beneficiation strategy includes the Additive Manufacturing or 3D printing of pure platinum
powder. The project was developed from concept by the Lonmin marketing and process technology
teams. The platinum powder used in 3D printing has very particular specifications and the powder was
developed in house by Lonmin employees. A 3D printer is housed at Lonmin’s PMR and is unique in
that it is the first to be used for the 3D printing of pure platinum metal. Commissioning and
optimization of the 3D printer is ongoing, with assistance from members of Platforum, which is a
collaboration between South Africa’s Central University of Technology, Northwest University of
Technology, Vaal University of Technology and Lonmin. This vehicle aims to provide prototype facilities
to budding entrepreneurs to produce products containing PGM’s via additive manufacturing or 3D
printing.
Sales & Pricing
Sales for the year were 681,580 Platinum ounces (1,323,708 PGM ounces), exceeding the sales guidance
of 650,000 to 680,000 Platinum ounces.
For the year, the unaudited US Dollar basket price (including base metal revenue) at $1,016 per PGM ounce
increased by 20.4% on the prior year, while the corresponding unaudited Rand basket price (R13,447 per
PGM ounce) was 19.7% higher than the prior year. The unaudited average Rand to US Dollar exchange
rate for the year was 2.3% stronger at 13.07 compared to 13.37 for the prior year.
Unit Costs (subject to audit adjustments)
As we continue to manage our costs, unaudited unit costs for the quarter were R11,617 per PGM ounce,
an increase of 0.8% on the R11,524 per PGM ounce achieved in the prior year and unaudited unit costs for
the year were R12,271 per PGM ounce, an increase of 4.9% on the R11,701 per PGM ounce achieved in
the prior year, and within our unit cost guidance of between R12,000 and R12,500 per PGM ounce.
Liquidity
- Unaudited gross cash improved to $264 million at 30 Sept 2018 up from $253 million at 30 September
2017.
- Unaudited net cash improved to $114 million (gross cash of $264 million less the drawn term loan of
$150 million) at 30 Sept 2018, up from $103 million (gross cash of $253 million less the drawn term
loan of $150 million) at 30 September 2017.
Capital Expenditure
We have improved our IAOR from 19 to 21 months year on year despite the unaudited Capital expenditure
being limited to R967 million ($73 million) compared with R1,336 million ($100 million) in the prior year,
and included R74 million (2017 - R370 million) for the third party funded Bulk Tailings Treatment project.
This is in line with our strategy of limiting capital expenditure to levels required to satisfy regulatory and
safety standards, essential sustaining capital expenditure in the continuing shafts and ensuring that IAOR
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positions where applicable, are maintained at an acceptable level to sustain production at our Generation
2 shafts.
2018 2018
2017 2018 Revised Guidance Original Guidance
Actual Actual
Rm Rm Rm Rm
K3 170 92 130 157
Saffy 21 25 21 29
Rowland 48 46 55 61
Rowland MK2 178 121 117 137
Generation 2 shafts 417 283 323 385
K4 7 - - 2
Hossy 1 28 42 30
Generation 3 & 1 shafts 8 28 42 32
Central & other mining 93 76 120 139
Total Mining 518 388 485 556
Concentrators - excl BTT 158 128 130 159
BTT 370 74 74 59
Smelting & Refining 95 206 318 324
Total Process 623 391 522 542
Infill apartments 151 150 161 191
Other 44 38 51 40
Total 1 336 967 1 219 1 329
The capital expenditure was less than our revised guidance of R1,2 billion. The main deferrals were on K3,
engineering, stay in business, design studies and regulatory compliance spending on smelting and refining.
Capital invested in the period included R121 million for the Rowland MK2 project.
Update on disposals
- Petrozim
As previously announced, Lonmin entered into a conditional Sale of Shares Agreement to sell
Lonmin’s 50% interest in Petrozim Line (Private) Limited (“Petrozim”) for a gross cash
consideration of $14,75 million to the National Oil Infrastructure Company of Zimbabwe (Private)
Limited (“NOIC”) (the “Transaction”). In addition, Lonmin will receive $8 million in the form of
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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 used to pay down the
term loan.
- Wallbridge Mining Toronto
Lonmin sold its approximately 6.8% portion of the outstanding shares of Wallbridge Mining
Company Limited to Eric Sprott, for a total consideration of $4 million.
Update on all-share offer by Sibanye Stillwater
The South African Competition Commission (the “Commission”) has recommended that the South African
Competition Tribunal (“Tribunal”) approves the proposed acquisition of Lonmin, subject to certain
conditions, which are agreeable to both Sibanye-Stillwater and the Commission.
The Tribunal hearing has been set for 12 November to 14 November 2018. Lonmin is expecting to release
its financial results for the year ended 30 September 2018 towards the end of November 2018.
The remaining substantive conditions to the closure of the transaction are the approval by the South
African Competition Tribunal, and the approvals of Lonmin and Sibanye-Stillwater shareholders and the
courts of England and Wales.
Lonmin remains fully committed to the transaction and continues to engage constructively with Sibanye
Stillwater, the Tribunal and other stakeholders with a view to obtaining clearance in South Africa.
- ENDS –
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
Media:
TB Cardew
Anthony Cardew / Emma Crawshaw +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.
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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
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3 months 3 months 12 months 12 months
to 30 Sep to 30 Sep to 30 Sep to 30 Sep
2018 2017 2018 2017
Tonnes Marikana K3 Shaft kt 778 852 2 858 2 831
mined(1) Rowland Shaft kt 544 520 1 904 1 925
Saffy Shaft kt 609 604 2 211 2 174
East 3 Shaft
Combined2 kt 188 170 654 574
East 3 Shaft kt 188 14 553 71
Pandora (100%) kt 156 101 503
Generation 2 kt 2 120 2 146 7 627 7 504
4B Shaft kt 358 324 1 272 1 320
Hossy Shaft kt 178 162 581 655
Newman Shaft kt 51
W1 Shaft kt 43 41 185 145
East 1 Shaft kt 46 52 187 168
East 2 Shaft kt 71 32 262
Generation 1 kt 625 650 2 257 2 600
Underground kt 2 745 2 796 9 884 10 104
Opencast kt 17 93 45
Lonmin (100%) Total Tonnes Mined
(100%) kt 2 762 2 796 9 977 10 148
% tonnes mined from
UG2 reef (100%) % 71.3% 72.5% 71.9% 73.1%
Underground &
Lonmin (attributable) Opencast kt 2 762 2 718 9 927 9 897
Ounces Lonmin excluding Pandora
Mined3 Pt Ounces oz 171 937 173 851 622 545 616 422
BTT Pt Ounces oz 3 633 0 7 417 0
Lonmin excl Pandora incl BTT
Pt Ounces oz 175 570 173 851 629 962 616 422
Pandora (100%) Pt Ounces oz 11 198 7 557 34 886
Lonmin incl Pandora & BTT Pt Ounces oz 175 570 185 049 637 519 651 307
Lonmin excluding Pandora PGM Ounces oz 331 927 334 154 1 200 482 1 182 793
BTT PGM Ounces oz 7 156 0 14 584 0
Lonmin excl Pandora incl BTT PGM Ounces oz 339 084 334 154 1 215 066 1 182 793
Pandora (100%) PGM Ounces oz 22 279 14 962 69 362
Lonmin incl Pandora & BTT PGM Ounces oz 339 084 356 433 1 230 028 1 252 155
Tonnes Marikana Underground kt 2 752 2 605 9 663 9 486
milled4 Opencast kt 14 0 70 49
Total kt 2 766 2 605 9 732 9 535
Pandora 100%5 Underground kt 0 156 101 503
Lonmin Platinum Underground kt 2 752 2 761 9 764 9 989
Milled head grade7 g/t 4.57 4.72 4.57 4.61
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Recovery rate % 86.8% 87.6% 87.3% 87.1%
Opencast kt 14 0 70 49
Milled head grade7 g/t 4.55 4.97 4.66 4.42
Recovery rate8 % 82.6% 67.7% 81.1% 68.3%
BTT Plant6 kt 894 0 2 038 0
Milled head grade7 g/t 1.12 0 1.10 0
Recovery rate8 % 23.2% 0.0% 21.3% 0.0%
Total kt 3 660 2 761 11 871 10 039
Milled head grade7 g/t 3.73 4.72 3.97 4.61
Recovery rate8 % 82.1% 87.6% 84.1% 87.0%
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3 months 3 months 12 months 12 months
to 30 Sep to 30 Sep to 30 Sep to 30 Sep
2018 2017 2018 2017
Metals-in- Marikana Platinum oz 174 148 171 659 617 316 609 354
concentrate9 Palladium oz 81 801 79 810 288 516 282 246
Gold oz 3 968 4 259 14 938 15 171
Rhodium oz 25 515 24 229 88 806 86 254
Ruthenium oz 42 920 40 811 149 812 144 996
Iridium oz 8 948 8 611 31 139 30 303
Total PGMs oz 337 300 329 379 1 190 527 1 168 324
Nickel10 MT
807 880 3 005 3 144
10 MT
Copper 510 544 1 922 1 964
Pandora Platinum oz 11 198 7 557 34 886
Palladium oz 5 303 3 573 16 509
Gold oz 76 52 243
Rhodium oz 1 906 1 261 5 928
Ruthenium oz 3 133 2 105 9 750
Iridium oz 662 414 2 047
Total PGMs oz 22 279 14 962 69 362
Nickel10 MT
18 11 65
10 MT
Copper 10 6 31
BTT Plant6 Platinum oz 3 633 7 417
Palladium oz 1 509 3 095
Gold oz 34 69
Rhodium oz 521 1 051
Ruthenium oz 1 201 2 441
Iridium oz 259 510
Total PGMs oz 7 156 14 584
Nickel10 MT 5 11
Copper10 MT 5 10
Concentrate Platinum oz 6 167 3 907 21 678 4 871
purchases Palladium oz 2 099 1 239 7 158 1 550
Gold oz 23 16 78 21
Rhodium oz 894 503 2 989 597
Ruthenium oz 1 365 772 4 581 935
Iridium oz 325 221 1 126 263
Total PGMs oz 10 874 6 658 37 610 8 237
Nickel10 MT
8 5 25 6
10 MT
Copper 5 3 15 4
Lonmin Platinum Platinum oz 183 948 186 764 653 969 649 111
Palladium oz 85 409 86 353 302 342 300 305
Gold oz 4 025 4 351 15 137 15 435
Rhodium oz 26 930 26 638 94 106 92 779
Ruthenium oz 45 486 44 716 158 940 155 680
Iridium oz 9 532 9 494 33 190 32 614
Total PGMs oz 355 330 358 316 1 257 684 1 245 923
Nickel10 MT
820 903 3 052 3 215
Copper10 MT 520 557 1 953 1 998
12
3 months 3 months 12 months 12 months
to 30 Sep to 30 Sep to 30 Sep to 30 Sep
2018 2017 2018 2017
Refined Lonmin refined Platinum oz 212 286 205 632 664 603 685 028
Production Metal Palladium oz 96 651 94 835 309 340 316 517
Production Gold oz 5 376 5 563 17 324 18 017
Rhodium oz 32 326 28 108 100 136 100 677
Ruthenium oz 52 845 48 749 163 564 162 141
Iridium oz 11 578 8 914 34 634 33 654
Total PGMs oz 411 062 391 801 1 289 601 1 316 034
Toll refined Platinum oz 74 314 1 081 2 501
metal Palladium oz 18 155 389 789
production Gold oz 1 7 18 35
Rhodium oz 1 590 59 1 743 310
Ruthenium oz 78 137 623 926
Iridium oz 501 36 593 207
Total PGMs oz 2 262 707 4 448 4 768
Total Platinum oz 212 360 205 946 665 685 687 529
refined Palladium oz 96 670 94 990 309 729 317 306
PGMs Gold oz 5 377 5 570 17 342 18 052
Rhodium oz 33 916 28 167 101 879 100 987
Ruthenium oz 52 923 48 885 164 187 163 067
Iridium oz 12 079 8 950 35 227 33 861
Total PGMs oz 413 325 392 508 1 294 049 1 320 802
BMR Concentrate Sales Platinum oz 5 591 12 904
(Saleable Refined Palladium oz 2 416 5 756
Production) Gold oz 123 321
Rhodium oz 810 1 903
Ruthenium oz 1 252 3 034
Iridium oz 316 653
Total PGMs oz 10 509 24 570
Total saleable refined Platinum oz 217 951 205 946 678 558 687 529
PGMs11 Palladium oz 99 086 94 990 315 486 317 306
Gold oz 5 500 5 570 17 663 18 052
Rhodium oz 34 726 28 167 103 782 100 987
Ruthenium oz 54 175 48 885 167 221 163 067
Iridium oz 12 396 8 950 35 879 33 861
Total PGMs oz 423 833 392 508 1 318 618 1 320 802
Base metals Nickel12 MT
1 085 1 022 3 605 3 502
Copper12 MT
660 684 2 148 2 126
Sales Refined Platinum oz 212 119 218 687 668 676 706 030
Metal Palladium oz 96 548 104 549 311 019 324 273
Sales Gold oz 4 772 4 989 17 580 16 675
Rhodium oz 34 620 29 312 103 128 107 742
Ruthenium oz 48 868 57 981 165 250 193 479
Iridium oz 9 508 10 682 33 485 33 212
Total PGMs oz 406 435 426 200 1 299 139 1 381 413
Nickel12 MT 1 126 1 031 3 558 3 770
Copper12 MT 616 820 2 398 1 874
12
Chrome MT 488 218 363 564 1 558 689 1 402 697
13 oz
BMR Concentrate Sales Platinum 5 591 12 904
Palladium oz 2 416 5 756
Gold oz 123 321
13
3 months 3 months 12 months 12 months
to 30 Sep to 30 Sep to 30 Sep to 30 Sep
2018 2017 2018 2017
13 oz
BMR Concentrate Sales Rhodium 810 1 903
Ruthenium oz 1 252 3 034
Iridium oz 316 653
Total PGMs oz 10 509 24 570
Lonmin Platinum Platinum oz 217 710 218 687 681 580 706 030
Palladium oz 98 965 104 549 316 775 324 273
Gold oz 4 895 4 989 17 901 16 675
Rhodium oz 35 430 29 312 105 031 107 742
Ruthenium oz 50 120 57 981 168 284 193 479
Iridium oz 9 824 10 682 34 137 33 212
Total PGMs oz 416 944 426 200 1 323 708 1 381 413
Base metals Nickel12 MT 1 126 1 031 3 558 3 770
12
Copper MT 616 820 2 398 1 874
12
Chrome MT 488 218 363 564 1 558 689 1 402 697
Average Platinum $/oz 810 954 890 953
prices Palladium $/oz 965 902 986 808
Gold $/oz 1 198 1 286 1 272 1 244
Rhodium $/oz 2 376 1 063 1 988 915
$ basket excl. by-product revenue 14 $/oz 932 832 926 790
$ basket incl. by-product revenue 15 $/oz 1 027 880 1 016 844
R basket excl. by-product revenue 14 R/oz 13 191 10 966 12 245 10 526
R basket incl. by-product revenue15 R/oz 14 512 11 567 13 447 11 236
$/MT 11 300 8 289 10 875 8 274
Nickel12
12 $/MT 5 385 6 487 6 208 5 661
Copper
Unit Costs Cost of Production per PGM ounce R/oz 11 617 11 524 12 271 11 701
Exchange Average rate for period 16 R/$ 14.06 13.17 13.07 13.37
Rates Closing rate R/$ 14.14 13.55 14.14 13.55
Notes
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 are reported as E3 Shaft Combined since 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 are 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.
14
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
sale transaction.
15 As per note 14 but including revenue from base metals.
16 Exchange rates are calculated using the market average daily closing rate over the course of the period.
JSE Sponsor: J.P. Morgan Equities South Africa (Pty) Ltd
15
Date: 22/10/2018 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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