LONDON (SHARECAST) - South African platinum miner Lonmin fell into losses in the year to September 30 as prices for the precious metal slumped in line with the global economic downturn.
The firm reported a pre-tax loss of $272m for the period, compared with a profit of $779m over the same period the previous year, as revenues fell to $1,062m from $2,231m. It will not pay a final dividend.
Platinum prices hit highs above $2,000 an ounce early in 2008, but then slumped below $1,000 as the severe downturn gripped the world economy towards the end of the year.
Lonmin produced 682,955 ounces of platinum during the period, which was 2% below its initial guidance.
Chief executive Ian Farmer said that Lonmin expects the fundamentals in the industry to improve from 2011.
‘Lonmin has high quality, long life assets and increasing production volume together with vigilant cost control will improve our position on the cost curve,’ he said.
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