| CATEGORY: NEWS AND ANNOUNCEMENTS SECTOR: MINING |
Lonmin reiterates guidance, sales fall |
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Thu 28 Jan 2010
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LONDON (SHARECAST) - South African platinum miner Lonmin reiterated its sales and cost guidance for the year but said tonnes mined from its Marikana underground operations fell slightly in the first quarter.
Consequently, platinum sales for the first quarter of 2010 declined 13.6% from the prior year period to 109,044 ounces.
Underground mining operations at Marikana produced 2.6 million tonnes during the three month period, a like for like decline of 3.9%, equivalent to around 100,000 mined tonnes, from last year.
The group said there were two reasons for this shortfall. Firstly, as expected, production was impacted by the closure of an uneconomic decline shaft and a number of half levels at Marikana during the third quarter of 2009. These unprofitable operations contributed around 35,000 mined tonnes during the first quarter of 2009.
Secondly, whilst the frequency of Section 54 safety stoppages at Marikana during the first quarter of 2010 declined from the prior year period, the volume impact was worse with tonnes lost during the quarter being around 60,000 tonnes higher than the prior year period.
This was predominantly due to production at the group’s largest shaft, K3, being impacted by a 7 day safety shutdown following a fatal incident at the shaft on 10 December.
‘Our production performance during the first quarter of 2010 represents a solid start to the year and supports our 2010 sales guidance of 700,000 ounces of Platinum, as published on 16 November 2009,’ said the group.
‘Our cost guidance for the increase in South African Rand gross operating costs to be below local inflation, still stands despite the above inflation wage increases agreed.’
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