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Johannesburg - Lonmin [JSE:LON]‚ the world's third largest platinum producer‚ on Monday reported a solid performance in the six months ended March 2013 with platinum sales of 326‚142 ounces‚ up 2.4% on the prior period.
In the second quarter the group produced platinum metal in concentrate of 180‚562 ounces and platinum sales of 217‚800oz.
Total tons milled in the second quarter were 2.8 million‚ a decrease of 4.8% from the prior year‚ due to building stocks after the Christmas break and the Number One UG2 concentrator being taken down at the start of the financial year for planned capacity upgrades.
The UG2 concentrator is due to come back online in the fourth quarter of FY 2013.
For the first half the group’s revenue declined to $735m from $751m a year ago‚ but operating profit improved to $90m from $14m.
Underlying earnings per share rose to 12.3 cents from a loss per share of 3.7 cents a year ago.
The basket price‚ including by-product revenue‚ was up 1.7% to $1 252 per PGM ounce‚ while the rand unit cost was contained at R8 648 per PGM ounce‚ up 5.8% on prior year period.
The group reported underlying EBIT of $93m‚ up from $14m in the prior year period.
Simon Scott‚ acting CEO‚ said: "We are pleased to have maintained the momentum of the safe re-start and ramping up of production at our operations to deliver a strong operational and financial performance in the first half of our financial year.”
He added that the successful refinancing of the business‚ the return to profitability during the period under review and the revised growth strategy and streamlined capital investment programme have allowed Lonmin to de-risk the balance sheet and it is pleasing to note that the business has generated positive free cash flows in quarter two.
“We expect to continue to build operational momentum in the second half of the financial year and we are increasing our metals in concentrate guidance from 680‚000 ounces of platinum to in excess of 700‚000 saleable platinum ounces‚" he said.
