Wrap Text
Second Quarter 2019 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
10 May 2019
Second Quarter 2019 Production Report and Business Update
Lonmin operating profit buoyed by higher PGMs basket price and weaker Rand
Lonmin Plc (“Lonmin” or “the Company”), today announces its production results for the second quarter and for the
six months ended 31 March 2019. The Company also provides a business update, both on an unaudited basis.
Overview
- Regrettably, Mr G Sonamzi was fatally injured during Q2 2019, resulting in a total of two fatalities in the first six
months. We extend our deepest condolences to their families and friends.
- The twelve-month rolling Lost Time Injury Frequency Rate (“LTIFR”) to 31 March 2019 increased by 9.6% to 4.56
year on year.
- Operating profit for the first six months of FY 2019 was $70 million compared to H1 2018 operating loss of $32
million, driven by higher PGM prices and a weaker Rand:Dollar exchange rate. Unaudited earnings before
interest, tax and depreciation (EBITDA) for the first six months of FY 2019 was $78 million compared to H1 2018
Loss before interest, tax and depreciation (LBITDA) of $26 million.
- Liquidity or gross cash at 31 March 2019 increased to $247 million, compared to $167 million at 31 March 2018,
with the new Pangaea Investment Management Limited (PIM) facility in place. Net cash at 31 March 2019 was
$71 million compared to $17 million at 31 March 2018.
- The US Dollar basket price (including base metal revenue) for Q2 2019 of $1,214 per ounce was up 14.7% on Q2
2018, while the corresponding Rand basket price of R17,068 per ounce was up 34.8% on Q2 2018. The US Dollar
basket price (including base metal revenue) for the first six months of FY 2019 of $1,148 per ounce was up 13.6%
on H1 2018, while the corresponding Rand basket price of R16,268 per ounce was up 25.9% on H1 2018.
- Platinum sales for Q2 2019 of 146,459 ounces were 4.2% higher than Q2 2018, while Platinum sales of 286,947
ounces for the first six months of FY 2019 were broadly flat on H1 2018.
- Refined Platinum production for Q2 2019 of 142,260 ounces was 16.0% higher than Q2 2018, while refined
Platinum production for the first six months of FY 2019 of 286,911 ounces was 1.0% higher than H1 2018. The
comparison is affected by the fact that refined production in H1 2018 was negatively impacted by the lock-up of
47,000 PGM ounces, because one of the furnaces was down in H1 2018.
- Total cost of production for the first six months was confined to an increase of 5.6%, from R7.3 billion to R7.7
billion. However, unit cost for the first six months was R14,994 per PGM ounce, 15.5% higher than H1 2018, on
the back of the lower mining production, lower grades and lower recovery rate.
- In line with our strategy to reduce high cost production, our workforce has been reduced year on year by 4% to
29,812 at 31 March 2019, from 31,040 at 31 March 2018. The Section 189 process initiated in March 2019 is
ongoing.
- Historically production during the first half has always been lower than the second half, however, this year our
operational performance for the first six months was heavily impacted by, inter alia, low morale and high
management turnover due to the extended timeline to close the Sibanye-Stillwater transaction caused by
1
AMCU’s appeal to the Competition Appeal Court (CAC), which affected both safety and production, safety
stoppages and power outages due to Eskom.
- Accordingly, mining production for Q2 2019 was 2.1 million tonnes, down 8.4% on Q2 2018, while mining
production for the first six months of FY 2019 was 4.3 million tonnes or 7.7% down on H1 2018.
- Total Platinum production (metals-in-concentrate) for Q2 2019 was 125,803 ounces, down 12.3% on Q2 2018,
while total Platinum production (metals-in-concentrate) for the first six months of FY 2019 was 276,020 ounces,
down 10.3% on H1 2018, on the back of reduced mining tonnes, lower grades and lower recoveries. For the
month of March 2019, the underground mill head grade started to improve.
- Traditionally, we expect our second half output to exceed that of the first half. However, given the extent of
production losses suffered during the first half as well as finalising the transaction with Sibanye-Stillwater, we
expect sales for the full year to be at the lower end of our sales guidance range of between 640,000 and 670,000
Platinum ounces, assuming a stable electricity supply during winter and absent any unforeseen interruptions to
our mining production.
- Our capital expenditure guidance for the year is maintained at between R1.4 billion and R1.5 billion.
- Ordinarily the stronger performance of the second half would assist in containing unit cost increases on a full
year basis. In light of the sales guidance trending towards the lower end of our range and the high unit costs for
the first half of the year, we are revising our unit cost guidance range to between R13 600 and R14 400 per PGM
ounce produced, from between R12,900 and R13,400 per PGM ounce.
Ben Magara, Chief Executive Officer, said: “Lonmin generated unaudited operating profit of $70 million in the first six
months of the year, compared to an operating loss of $32 million in the prior year period. This was driven by higher
PGMs basket prices and a favourably weaker Rand:Dollar exchange rate, on the back of broadly flat refined metal
production volumes, despite lower mining output. The return to profitability and the new $200 million forward
metal sale facility has improved Lonmin’s liquidity in the short term, with the early settlement of the term loan of
$150 million in full and cancellation of all our other pre-existing undrawn facilities. However, despite the progress
made, this does not provide a long-term solution to the capital structure challenges faced by Lonmin, as it is still
inadequate to invest in the new projects necessary to avoid shaft closures and job losses and maintain our
production profile. The Company’s available liquidity is also still vulnerable when considering its working capital
requirements and continuing exposure to volatile currency and metal markets. Accordingly, we remain convinced
that consolidation through the announced Offer from Sibanye-Stillwater creates the best way forward for our
shareholders and all our stakeholders.”
3 months 3 months 6 months 6 months
to 30 Mar to 30 Mar to 30 Mar to 30 Mar
2019 2018 2019 2018
Generation 2 Kt 1 547 1 707 3 188 3 518
Generation 1 Kt 498 508 1 049 1 081
Total Tonnes Mined Kt 2 059 2 248 4 279 4 634
Mining Total Kt 1 969 2 198 4 363 4 654
Head grade g/t 4.26 4.51 4.27 4.57
Tonnes Recovery rate % 86.7% 86.8 86.0% 87.5%
Milled BTT Total Kt 816 347 1 754 347
Head grade g/t 1.16 1.13 1.14 1.13
Recovery rate % 22.8% 12.0% 24.0% 12.0%
Metals-in- Platinum Oz 125 803 143 374 276 020 307 862
concentrate
PGMs Oz 240 738 274 941 529 327 590 257
Refined Platinum Oz 142 260 122 649 286 911 284 011
Production PGMs Oz 271 821 234 552 539 820 543 327
Sales Platinum Oz 146 459 140 533 286 947 287 749
Refined metal PGMs Oz 280 474 262 302 535 627 554 637
Average $ basket incl. by-product revenue $/oz 1 214 1 058 1 148 1 011
Prices R basket incl. by-product revenue ZAR/oz 17 068 12 661 16 268 12 920
Exchange rate Average rate for period ZAR/$ 14.01 11.95 14.15 12.78
Unit costs Cost of production per PGM ounce ZAR/oz 15 222 13 308 14 994 12 983
Safety
Our safety strategy is centred on the belief that Zero Harm is achievable and important contributions are required
from all stakeholders to achieve it.
- Regrettably, Mr G Sonamzi was fatally injured during Q2 2019, resulting in a total of two fatalities in
the first six months.
- The twelve-month rolling LTIFR to 31 March 2019 was 4.56 per million man hours, a deterioration of
14.0% on September 2018 at 4.00. Year on year, the twelve-month rolling LTIFR increased by 9.6%.
- The twelve-month rolling Total Injury Frequency Rate (“TIFR”) to 31 March 2019 was 10.11 per
million man hours, an improvement of 0.3% on September 2018 at 10.14. Year on year, the twelve-
month rolling TIFR increased by 1.9%.
- Saffy Shaft achieved 7 Million Fatality Free Shifts on 22 January 2019 – a notable achievement. It
took the shaft almost six fatal free years of operation to achieve this.
Production Losses
Tonnes lost due to Section 54 and management induced safety stoppages increased to 58,000 tonnes in Q2 2019
and 174,000 tonnes in the first six months of FY 2019, compared to 20,000 tonnes in Q2 2018 and 77,000 tonnes in
H1 2018, due to the fatalities and a management induced stoppage at Saffy due to bad ground conditions.
Q2 2019 Q2 2018 H1 2019 H1 2018
Tonnes Tonnes Tonnes Tonnes
Section 54 safety stoppages 17,000 7,000 112,000 15,000
Management induced safety stoppages 41,000 13,000 62,000 62,000
Total tonnes lost 58,000 20,000 174,000 77,000
Mining Operations
Overall, our performance has been impacted by low morale and high management turnover, instability and
uncertainty, due to the extended timeline to close the Sibanye-Stillwater transaction caused by AMCU’s appeal to
the CAC, which affected both safety and production. Additionally the indirect impact of the extended wage strike in
the gold sector caused concern among our employees about the potential impact of the secondary strike extending
to the Platinum belt. The Marikana mining operations including Pandora (100%) produced 2.1 million tonnes during
the quarter, down 8.4% or 189,000 tonnes, on Q2 2018. This decline was also affected by the safety stoppages,
challenging adverse ground conditions at Saffy and our strategy to reduce production from our Generation 1 shafts.
Generation 2
Tonnes mined from our Generation 2 shafts were 1.5 million tonnes, a decrease of 9.4% on Q2 2018. In addition to
the overall reasons for production challenges outlined above, commentary on the individual shafts is as follows:
- K3, our biggest shaft, produced 592,000 tonnes, a decrease of 8.0% or 51,000 tonnes on Q2 2018, as a result of
the fatality, and the consequential halt to production to install additional support due to poor ground conditions
and rolling reef.
- Saffy shaft produced 430,000 tonnes, a decrease of 13.7% or 68,000 tonnes on Q2 2018, as a result of geological
complexity which resulted in challenging adverse ground conditions.
- Rowland shaft produced 369,000 tonnes, a decrease of 11.6% on Q2 2018, due to adverse ground conditions
requiring additional support.
- The combined E3 shaft and Pandora area produced 155,000 tonnes, an increase of 5.9% or 9,000 tonnes on Q2
2018, a good performance overall.
Generation 1
3
The performance of our Generation 1 shafts is in line with our plan to reduce high cost production. Tonnes mined
from our Generation 1 shafts (4B, Hossy, W1 and E1) were 0.5 million tonnes, a decrease of 1.9%, or 10,000 tonnes
on Q2 2018, which also included E2 in 2018. 4B produced 278,000 tonnes, a decrease of 4.3%, or 12,000 tonnes on
Q2 2018. Hossy shaft produced 132,000 tonnes, an increase of 3.0%, or 4,000 tonnes on Q2 2018, as we maximized
sweepings of old workings, to maximize cash harvesting before final placement on care and maintenance at the end
of the financial year.
W1 and E1, which are contractor operated shafts, are now rapidly reaching the end of their economic reserve lives
with mining occurring in remnant areas only. E1 shaft and Hossy shaft are currently scheduled for closure by the end
of the financial year. These form part of the Section 189 consultation process which was launched in March 2019
and is currently underway.
Ore Reserve Development and Immediately Available Ore Reserves (IAOR)
The IAOR position of our Generation 2 shafts at 31 March 2019 was equivalent to 20 months average production for
the year. The reserve position remains adequate to provide operational flexibility.
(m² '000) Months
31 Mar 2019 30 Sep 2018 31 Mar 2019 30 Sep 2018
K3 696 806 21 22
Saffy 675 738 23 23
Rowland 372 415 15 14
E3 Total 313 348 28 30
Generation 2 2 055 2 307 20 21
Generation 1 444 448 21 21
K4 188 188 - -
Lonmin Total 2 687 2 943 21 21
Processing Operations
Concentrator production - Mining
Total tonnes milled from underground mining operations in Q2 2019 were 2.0 million tonnes, a decrease of 11.0% on
the prior year period, reflecting the reduced mining tonnes and an increase in surface stocks, as critical unplanned
maintenance was conducted at some of the concentrators and power outages due to Eskom.
The different concentrators are optimized to take feed from either UG2 or Merensky ore. However, in Q1 2019, the
feed contained a higher ratio of Merensky ore than UG2 as a result of the inclusion of stockpiles into the ore mix
arising from the unavailability of fresh ore. In addition, the increased dilution in the tonnes produced during the
quarter due to bad ground conditions and our efforts to increase backlog sweeping and vamping tonnes to make up
for fresh ore production also adversely impacted the mill grade and concentrator recoveries. As we started reverting
to the optimal ore feed mix during Q2 2019, there was an associated increase in recoveries, and hence the
concentrator recoveries from underground mining for Q2 2019 at 86.8% were in line with the 86.8% achieved in Q2
2018. Notwithstanding this, the feed still contained a higher ratio of Merensky ore than UG2 during this quarter,
which continued to impact the mill grade adversely. Consequently, underground mill head grade at 4.26 grammes
per tonne (5PGE+Au) in Q2 2019, was a 5.5% reduction on the 4.51 grammes per tonne achieved in Q2 2018. For
the month of March 2019, the underground mill head grade started to improve.
The combination of a reduction in underground mining production, lower grade and load shedding in Q2 2019
resulted in Platinum production (metals-in-concentrate) from mining of 116,745 ounces, a decrease of 15.0% on Q2
4
2018, whilst total PGMs production (metals-in-concentrate) from mining was 224,136 ounces, a decrease of 15.3%
on Q2 2018. This had an adverse impact on the unit costs achieved in the quarter.
Bulk Tailings re-Treatment Project (“BTT”)
The BTT project, commissioned in February 2018, milled a total of 816,000 tonnes for the quarter, with a head grade
of 1.16 grammes per tonne and a recovery rate of 22.8%, producing metals-in-concentrate of 3,374 Platinum ounces
and 6,605 PGM ounces. The project was in ramp up mode during the comparative prior year period.
Concentrate purchases
Concentrate purchase for the quarter contained metals-in-concentrate of 5,684 Platinum ounces and 9,998 PGM
ounces (an increase of 8.3% and 10.8% respectively).
Smelting and Refining
Total saleable refined Platinum production of 142,260 ounces in Q2 2019, was 16.0% higher than Q2 2018 and total
saleable refined PGMs produced were 271,821 ounces, an increase of 15.9% on Q2 2018. The refined production in
Q2 2018 and H1 2018 was impacted by the lock-up of 47,000 PGM ounces, because Furnace Number One was out of
operation for the period December 2017 to February 2018.
There was no release of Platinum ounces from the smelter clean-up project during Q2 2019 or during Q2 2018,
however, this is expected in the second half of the year.
Sales and Pricing
Sales of refined Platinum for Q2 2019 were 146,459 ounces, an increase of 4.2% on Q2 2018. Refined PGMs sales
were 280,474 ounces, an increase of 6.9% on Q2 2018.
The US Dollar basket price (including base metal revenue) at $1,214 per ounce during Q2 2019 was up 14.7% on Q2
2018 while the corresponding Rand basket price of R17,068 per ounce was 34.8% higher than Q2 2018, driven
mainly by the higher Palladium and Rhodium prices.
The average Rand:US Dollar exchange rate was 17.2% weaker at 14.01 in Q2 2019 compared to 11.95 in Q2 2018.
While the Company benefitted from these improved trading conditions, both currency and metal markets remain
very volatile and are not controllable factors.
Business and Operating Environment Update
Cost of Production
Our unaudited total cost of production for the first six months of FY 2019 increased by 5.6% from R7.3 billion to
R7.7 billion, notwithstanding wage increases in excess of 7% being granted in July 2018. Our unit costs for the
first six months of FY 2019 were R14,994 per PGM ounce (6E basis), an increase of 15.5% on H1 2018, as a
result of the safety stoppages, lower production, the lower grade in the period and the lower recovery rates
seen in Q1 2019.
EBITDA
Unaudited EBITDA for the first six months of FY 2019 was $78 million compared to H1 2018 LBITDA of $26 million,
driven by higher PGM prices and a weaker Rand:Dollar exchange rate.
The financial performance in the first half of 2019 reflects how highly geared Lonmin is to the PGM prices,
Rand:Dollar exchange rate, production and unit costs.
Capital Expenditure
5
Our strategy has been to minimise capital expenditure whilst ensuring compliance with regulatory and safety
standards and ensuring that the IAOR position is maintained at the level flexible enough to support planned
production at the Generation 2 shafts. However, it is becoming increasingly difficult to maintain the production
profile, whilst using capital expenditure as a lever to protect the cash position. Accordingly, Lonmin has not
been able to fund the significant investment required to maintain its production profile, hence the previously
announced shaft closures and job losses.
Capital expenditure in the first six months of FY 2019 was limited to R377 million ($27 million) compared with
R411 million ($33 million) in the prior year period as we continue to use capital expenditure as a cash
management lever. Accordingly, the stay-in-business capital which is considered low risk, was deferred.
Summary of Capital Expenditure:
6 months to 6 months to
31 Mar 2019 31 Mar 2018
Rm Rm
K3 47 38
Rowland 45 19
Rowland MK2 10 84
Saffy 14 12
Generation 2 shafts 116 152
K4 - -
Hossy - 5
Generation 1 & 3 shafts 0 5
Central and other mining 63 20
Total Mining 178 177
Concentrators – Excl BTT 79 36
BTT - 57
Smelting & Refining 64 81
Total Process 143 175
Hostel / Infill Apartments 35 46
Other 20 14
Total 377 411
Capital spent at the Concentrators was mainly on construction of the new stormwater dam and at the smelter
and refinery on upgrading the smelter to comply with air emissions’ legislation.
Capital invested in the period included R10 million for the Rowland MK2 project which, as planned is due to
ramp up its development in H2 FY 2019. This is in line with the slower development which commenced in 2018
to contain the capital spending in a constrained cash environment and whilst the Company attempts to secure
external funding. At the Rowland Merensky project, development continues unconstrained.
Phase 4 on the Infill Apartments was completed during the period.
Capital expenditure at the smelter and refinery was delayed, mainly due to design and supplier delays. As in
previous years, capital expenditure will be weighted in favour of the second half of FY2019.
Balance Sheet and Liquidity
As announced on 22 October 2018, Lonmin refinanced its debt arrangements by entering into the Pangaea Metal
Purchase Agreement, a US$200 million forward metal sale agreement with PIM, an associate company of Jiangxi
Copper, among others, pursuant to which such upfront payment would be amortised over three years to October
6
2021. Lonmin consequently settled and cancelled its pre-existing term loan of $150 million and cancelled all its other
pre-existing undrawn facilities. The new facility has improved Lonmin’s short-term liquidity and has removed certain
restrictive conditions contained in the previous debt facilities (notably the tangible net worth covenant). This new
facility is not a long-term solution to the challenges faced by Lonmin and does not offer the ability to avoid
announced retrenchments and shaft closures.
The net improvement in liquidity from the new facility, after fees of $8 million and a further $8 million to
collateralise guarantees, was $34 million. Capital expenditure of $27 million and working capital requirements during
the first half that is funded from EBITDA, as well as funding repayments and interest of $38 million and proceeds
from sale of Wallbridge and Petrozim of $13 million explains the company’s cash position of gross cash of $247
million at 31 March 2019 being some $17 million lower than the 30 September 2018 balance of $264 million. Gross
cash was $167 million at 31 March 2018. Net cash at 31 March 2019 was $71 million compared to $17 million at 31
March 2018.
Outlook and Guidance
Whilst typically our second half production is stronger, particularly quarter four, absent any unforeseen
interruptions to our mining production, the first half of the year’s production means we now expect to achieve
sales at the lower end of our guidance range, between 640,000 and 670,000 Platinum ounces.
Ordinarily the stronger performance of the second half would assist in containing unit cost increases on a full
year basis. In light of the sales guidance trending towards the lower end of our range and the high unit costs for
the first half of the year, we are revising our unit cost guidance range to between R13 600 and R14 400 per
PGM ounce produced, from between R12,900 and R13,400 per PGM ounce.
Our capital expenditure guidance for the year is maintained at between R1.4 billion and R1.5 billion. As in
previous years, capital expenditure will be weighted in favour of the second half of FY2019.
Profit Estimate
This announcement contains the following wording which constitutes a profit estimate as it represents profit
for a financial period which has expired and for which audited results have not yet been published (the "Profit
Estimate") under Rule 28 of the City Code on Takeovers and Mergers (the "Code"):
“Operating profit for the first six months of FY 2019 was $70 million.”
“Unaudited Earnings before interest, tax and depreciation (EBITDA) for the first six months of FY 2019 was $78
million.”
Basis of Preparation
The Profit Estimate has been properly compiled on the basis stated below and on a basis consistent with the
accounting policies of Lonmin, which are in accordance with IFRS and are those which Lonmin is applying in
preparing its Interim results for the six months to 31 March 2019 ("Interim Results").
The Profit Estimate has been prepared on the basis of the unaudited management accounts of the Lonmin
Group for the six months to 31 March 2019 including adjustments made to date during the ongoing
preparation and audit review of the Interim Results for the six months to 31 March. 2019.
Directors' Confirmation
The directors of the Company confirm that the Profit Estimate continues to be valid as at the date of this
announcement and has been properly compiled on the basis of the assumptions stated within the paragraph
above and that the basis of accounting used is consistent with the accounting policies of the Company.
7
In accordance with Rule 30.4 of the Code, a copy of this announcement will be made available on our website
at www.lonmin.com/investors/sibanye-stillwater-offer
All-share Offer by Sibanye Stillwater
On 25 April 2019, Lonmin announced that it had reached agreement with Sibanye-Stillwater on the terms of an
increased recommended all-share offer by which Sibanye-Stillwater will acquire the entire issued and to be
issued ordinary share capital of Lonmin (the “Increased Offer”) on the basis that:
Lonmin Shareholders will be entitled to receive:
one New Sibanye-Stillwater Share for each Lonmin Share
Further details of the Increased Offer (together with the full terms and conditions of the Scheme) are
contained in the Scheme Circular which was published on 25 April 2019.
The Scheme requires the approval of Lonmin Shareholders at the Court Meeting and the passing of a special
resolution at the General Meeting, and then the approval of the Court.
The Scheme Circular contains notices convening the Court Meeting and the Lonmin General Meeting in relation
to the Scheme for 11:30 a.m. and 11:45 a.m. (UK time) (or as soon thereafter as the Court Meeting is
concluded or adjourned), respectively, on 28 May 2019 are contained in the Scheme Circular. The meetings will
be held at The Royal Society, 6-9 Carlton House Terrace, London, SW1Y 5AG, United Kingdom.
Forward-looking Statements
All statements other than statements of historical facts in this announcement may be forward-looking
statements. Forward-looking statements also often use words such as "anticipate", "believe", "intend",
"estimate", "expect" and words of similar meaning. By their nature, forward-looking statements involve risk
and uncertainty because they relate to future events and circumstances and should be considered in light of
various important factors, including those set forth in this disclaimer. Readers are cautioned not to place undue
reliance on such statements.
These forward-looking statements speak only as of the date of publication of this announcement. Lonmin
expressly disclaims any obligation or undertaking to update or revise any forward-looking statement (except to
the extent legally required).
- ENDS –
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 14 571 2070 /+27 60 564 6419
Media:
Wendy Tlou (Head of Communications) +27 83 358 0049
8
Anthony Cardew, TB Cardew +44 207 930 0777
Tom Allison, TB Cardew +44 7789 998 020
Emma Crawshaw, TB Cardew
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 found.
The Company seeks to create value for shareholders through mining, refining and marketing PGMs and has a
vertically integrated operational structure - from mine to market. 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
9
3 Months 3 Months 6 Months 6 Months
to 31 Mar to 31 Mar to 31 Mar to 31 Mar
2019 2018 2019 2018
Tonnes Marikana K3 Shaft kt 592 644 1 159 1 339
mined 1 Rowland Shaft kt 369 418 772 866
Saffy Shaft kt 430 499 927 1 019
East 3 Shaft Combined 2 kt 155 146 331 294
East 3 Shaft kt 155 146 331 193
Pandora (100%) kt 101
Generation 2 kt 1 547 1 707 3 188 3 518
4B Shaft kt 278 291 592 596
Hossy Shaft kt 132 128 286 272
W1 Shaft kt 39 46 78 91
East 1 Shaft kt 49 43 93 90
East 2 Shaft kt 32
Generation 1 kt 498 508 1 049 1 081
Underground kt 2 045 2 214 4 237 4 599
Opencast kt 15 34 42 34
Lonmin (100%) Total Tonnes Mined kt 2 059 2 248 4 279 4 634
(100%)
% Tonnes mined from % 71.5% 71.8% 71.4% 72.1%
UG2 reef (100%)
Lonmin (attributable) Underground & kt 2 059 2 248 4 279 4 583
Opencast
Ounces Lonmin excluding Pandora Pt Ounces oz 123 117 140 434 253 835 287 642
Mined 3 BTT Pt Ounces oz 3 374 759 7 548 759
Lonmin excl Pandora incl BTT Pt Ounces oz 126 491 141 194 261 382 288 401
Pandora (100%) Pt Ounces oz 7 557
Lonmin incl Pandora & BTT Pt Ounces oz 126 491 141 194 261 382 295 958
Lonmin excluding Pandora PGM Ounces oz 237 405 270 885 490 073 553 703
BTT PGM Ounces oz 6 605 1 440 14 761 1 440
Lonmin excl Pandora incl BTT PGM Ounces oz 244 010 272 326 504 835 555 144
Pandora (100%) PGM Ounces oz 14 962
Lonmin incl Pandora & BTT PGM Ounces oz 244 010 272 326 504 835 570 106
Tonnes Marikana Underground kt 1 951 2 193 4 306 4 541
milled 4 Opencast kt 19 5 57 12
Total kt 1 969 2 198 4 363 4 553
Pandora 100% 5 Underground kt 101
Lonmin Platinum Underground mining kt 1 951 2 193 4 306 4 642
Milled head grade 6 g/t 4.26 4.51 4.26 4.57
Recovery rate 7 % 86.8% 86.8% 86.1% 87.5%
Opencast mining kt 19 5 57 12
Milled head grade 6 g/t 4.53 3.62 4.54 4.42
Recovery rate 7 % 83.3% 63.4% 82.8% 66.0%
Total mining kt 1 969 2 198 4 363 4 654
6
Milled head grade g/t 4.26 4.51 4.27 4.57
7
Recovery rate % 86.7% 86.8% 86.0% 87.5%
8
BTT Plant kt 816 347 1 754 347
6
Milled head grade g/t 1.16 1.13 1.14 1.13
7
Recovery rate % 22.8% 12.0% 24.0% 12.0%
10
3 Months 3 Months 6 Months 6 Months
to 31 Mar to 31 Mar to 31 Mar to 31 Mar
2019 2018 2019 2018
Metals-in- Marikana Platinum oz 116 745 137 368 256 561 290 016
concentrate 9 Palladium oz 54 386 64 106 120 116 134 964
Gold oz 3 156 3 471 6 865 7 192
Rhodium oz 16 391 19 483 36 338 41 227
Ruthenium oz 27 649 33 119 61 044 69 718
Iridium oz 5 810 6 931 12 784 14 396
Total PGMs oz 224 136 264 477 493 708 557 513
Nickel 10 MT 669 693 1 467 1 437
Copper 10 MT 424 450 929 931
Pandora Platinum oz 7 557
Palladium oz 3 573
Gold oz 52
Rhodium oz 1 261
Ruthenium oz 2 105
Iridium oz 414
Total PGMs oz 0 0 0 14 962
Nickel 10 MT 11
10
Copper MT 6
BTT Plant 8 Platinum oz 3 374 759 7 548 759
Palladium oz 1 408 306 3 138 306
Gold oz 32 8 69 8
Rhodium oz 486 95 1 101 95
Ruthenium oz 1 095 219 2 425 219
Iridium oz 211 53 480 53
Total PGMs oz 6 605 1 440 14 761 1 440
Nickel 10 MT 4 1 10 1
10
Copper MT 5 1 11 1
Concentrate Platinum oz 5 684 5 248 11 911 9 530
purchases Palladium oz 1 967 1 703 4 095 3 057
Gold oz 21 19 46 34
Rhodium oz 833 708 1 708 1 279
Ruthenium oz 1 214 1 090 2 531 1 948
Iridium oz 278 256 565 493
Total PGMs oz 9 998 9 023 20 857 16 340
Nickel 10 MT 7 6 14 10
Copper 10 MT 5 3 9 6
Lonmin Platinum Platinum oz 125 803 143 374 276 020 307 862
Palladium oz 57 761 66 116 127 349 141 899
Gold oz 3 209 3 497 6 980 7 286
Rhodium oz 17 710 20 286 39 147 43 862
Ruthenium oz 29 957 34 427 66 001 73 990
Iridium oz 6 298 7 240 13 829 15 357
Total PGMs oz 240 738 274 941 529 327 590 257
Nickel 10 MT 680 700 1 490 1 460
Copper 10 MT 434 454 949 945
11
3 Months 3 Months 6 Months 6 Months
to 31 Mar to 31 Mar to 31 Mar to 31 Mar
2019 2018 2019 2018
Refined Lonmin refined Platinum oz 141 945 114 731 286 593 275 757
Production Metal Palladium oz 65 302 54 618 129 533 129 890
Production
Gold oz 4 113 3 211 7 815 7 402
Rhodium oz 21 644 16 290 41 637 40 507
Ruthenium oz 32 273 25 894 60 483 61 260
Iridium oz 5 804 5 066 12 932 13 107
Total PGMs oz 271 081 219 810 538 993 527 922
Toll refined Platinum oz 315 393 318 729
metal Palladium oz 155 134 155 257
production
Gold oz 5 7 6 13
Rhodium oz 50 4 50 47
Ruthenium oz 155 9 239 142
Iridium oz 60 3 59 25
Total PGMs oz 740 550 827 1 213
Total refined PGMs Platinum oz 142 260 115 124 286 911 276 486
Palladium oz 65 457 54 752 129 688 130 147
Gold oz 4 118 3 218 7 820 7 414
Rhodium oz 21 694 16 293 41 688 40 553
Ruthenium oz 32 428 25 904 60 722 61 401
Iridium oz 5 864 5 069 12 991 13 133
Total PGMs oz 271 821 220 360 539 820 529 135
BMR Concentrate Sales (Saleable Platinum oz 7 525 7 525
Refined production) Palladium oz 3 211 3 211
Gold oz 178 178
Rhodium oz 1 093 1 093
Ruthenium oz 1 815 1 815
Iridium oz 369 369
Total PGMs oz 14 192 14 192
Total saleable refined PGM's 11 Platinum oz 142 260 122 649 286 911 284 011
Palladium oz 65 457 57 963 129 688 133 358
Gold oz 4 118 3 396 7 820 7 593
Rhodium oz 21 694 17 386 41 688 41 646
Ruthenium oz 32 428 27 719 60 722 63 217
Iridium oz 5 864 5 438 12 991 13 502
Total PGMs oz 271 821 234 552 539 820 543 327
Base metals Nickel 12 MT 808 668 1 619 1 523
Copper 12 MT 499 414 999 871
12
3 Months 3 Months 6 Months 6 Months
to 31 Mar to 31 Mar to 31 Mar to 31 Mar
2019 2018 2019 2018
Sales Refined Platinum oz 146 459 133 007 286 947 280 224
Metal Palladium oz 69 638 64 157 130 026 131 856
Sales
Gold oz 4 031 3 496 7 969 8 020
Rhodium oz 25 574 18 280 42 298 43 548
Ruthenium oz 29 044 23 748 54 453 62 847
Iridium oz 5 728 5 422 13 934 13 951
Total PGMs oz 280 474 248 110 535 627 540 445
13
BMR Concentrate Sales Platinum oz 7 525 7 525
Palladium oz 3 211 3 211
Gold oz 178 178
Rhodium oz 1 093 1 093
Ruthenium oz 1 815 1 815
Iridium oz 369 369
Total PGMs oz 14 192 14 192
Lonmin Platinum Platinum oz 146 459 140 533 286 947 287 749
Palladium oz 69 638 67 368 130 026 135 067
Gold oz 4 031 3 675 7 969 8 198
Rhodium oz 25 574 19 373 42 298 44 641
Ruthenium oz 29 044 25 563 54 453 64 663
Iridium oz 5 728 5 791 13 934 14 320
Total PGMs oz 280 474 262 302 535 627 554 637
Base metals Nickel 12 M 831 685 1 565 1 537
T
Copper 12 M 660 696 1 087 1 096
T
12
Chrome M 399 760 292 663 888 958 645 022
T
Average prices Platinum $/ 826 973 823 947
oz
Palladium $/ 1 444 1 017 1 322 1 009
oz
Gold $/ 1 304 1 332 1 271 1 290
oz
Rhodium $/ 2 792 1 797 2 676 1 609
oz
$ basket excl. by-product revenue 14 $/ 1 120 974 1 057 929
oz
15
$ basket incl. by-product revenue $/ 1 214 1 058 1 148 1 011
oz
R basket excl. by-product revenue 14 R/ 15 745 11 652 14 970 11 842
oz
R basket incl. by-product revenue 15 R/ 17 068 12 661 16 268 12 920
oz
12
Nickel $/ 9 633 10 115 9 415 9 732
M
T
Copper12 $/ 5 974 6 422 6 019 6 568
M
T
Unit Costs Cost of Production per PGM ounce ZAR/ 15 222 13 308 14 994 12 983
oz
Exchange Average rate for period 16 R/
Rates $ 14.01 11.95 14.15 12.78
Closing rate R/
$ 14.48 11.83 14.48 11.83
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 acquired 100% of Pandora.
13
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 excludes slag milling.
5. As from 1 December 2017 Lonmin owns 100% of Pandora joint venture and there will be no ore purchases thereafter.
6. 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).
7. Recovery rate in the concentrators is the total content produced divided by the total content milled (excluding slag).
8. The BTT (Bulk Tailings Treatment) project was commissioned in February 2018.
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.
12. Nickel is produced and sold as nickel sulphate crystals or solution and the volumes shown correspond to contained
metal. Copper is produced as refined product but typically at LME grade C. Chrome is produced in the form of chromite
concentrate and volumes shown are in the form of chromite.
13. Includes saleable refined production associated with BMR concentrate sales.
14. Basket price of PGMs is based on the revenue generated in Rand and Dollar from the actual PGMs (5PGE + Au) sold in
the period based on the appropriate Rand / Dollar exchange rate applicable for each sales transaction.
15. As per note 14 but including revenue from base metals.
16. 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
14
Date: 10/05/2019 08:00:00 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 
