Results dominated by strike impact
Regrettably one fatality on 26 October 2013
Improved Lost Time Injury Frequency Rate (LTIFR) by 4.6% to 3.34
Lost 391,000 platinum saleable ounces due to five month strike
Industry leading safe and exceptional ramp up in a record two months
Operational flexibility maintained with available ore reserves at an average of 21 months production
Exceptional instantaneous recovery rates improved to 86.2%
Platinum sales of 441,684 ounces
Financial Results
Underlying profit before tax $46 million ($158 million in 2013)
Net debt of $29 million with available committed facilities of $575 million (Net cash of $201 million in 2013)
Costs of idle production during the strike resulted in the cost of production per PGM ounce increasing by 47%
Capital expenditure $93 million carefully managed through the strike
Underlying earnings per share of 5.4 cents versus 20.5 cents in prior year
FY2015 Guidance
Platinum saleable metal in concentrate production in the region of 750,000 ounces
Sales of around 730,000 Platinum ounces
Unit costs of production around R10,800 per PGM ounce
Capital expenditure of around $250 million
Stable operating environment is key
Medium-term Outlook
Expect to maintain sales of circa 750,000 Platinum ounces supported by capital expenditure of around $250 million to $350 million per annum
Contain future unit cost increases below wage inflation
Cost reduction and productivity improvement programmes in place to ensure business is sustainable through all cycles - value benefits of more than R2.0 billion have been identified and will be targeted over the next three years
Lonmin Chief Executive Officer Ben Magara said: "This year has been unique, with a strike of unprecedented length halting production for five months. Notwithstanding that, we have made progress in a number of areas. Our ramp-up exceeded all expectations and we are renewing our operational credibility. Our business review has surfaced real opportunities to reduce costs, improve productivity and capital efficiency and we are seeing increasingly encouraging results in these areas. We have made significant management and operating model changes as we take Lonmin to the next level."
