Highlights
The successful completion of the reorganisation has improved Lonmin's profitability and resulted in the business being cash flow positive after capital expenditure despite the continuing low PGM pricing environment
Underlying operating profit increased to $7 million from a loss of $134 million in the prior year
Cash improved from $69 million at end of first quarter to $173 million at year end
Liquidity improved from $422 million at end of first quarter to $537 million at year end
Sales of 735,747 Platinum ounces, exceeded the sales guidance of 700,000 Platinum ounces, supported by our smelter clean-up and metal release from improved processing technology
Achieved cost reduction of R1.3 billion, 86% higher than the target of R700 million
Underlying costs decreased by 3.2% to R14.1 billion - unit costs increased by 4.0% to R10,748, despite 8.2% increase in labour costs
Concentrator recoveries of 86.6% continue to be industry leading
Generation 2 shafts production of 8.1 million tonnes, 4.0% up on the prior year on a comparable basis, and productivity up 5.0%, notwithstanding rationalisation of the workforce by 19.0%
The planned decline of our Generation 1 shafts is on track, reducing our high cost production in an oversupplied market
Saffy shaft production up 16.9% and has reached steady state
Average Rand full basket price (including base metals) up 7.5% on prior year, at R11,637 per PGM ounce
Peaceful and non-disruptive conclusion of multi-year wage agreement, reflects a maturing relationship with the unions and employees
Preserved Immediately Available Ore Reserves which stand at 22.4 months, providing us with operational flexibility
