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
10
Date: 27/07/2018 09:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
