Lonmin has announced that a strong final quarter of production helped to push the annual output above expectations at 916,420 ounces.

That production increase was boosted by the impact of the company's newly-acquired Limpopo operations as well as the return to full capacity of its smelter at Marikana following the blast there last year.

According to Lonmin's chief executive, Brad Mills, the Marikana smelter "is now performing well, reaching a new record throughput level in the fourth quarter".

The platinum miner explained that tight production and continued demand has helped to push up its yearly profits.

The world's third largest platinum producer revealed a jump in its full year pre-tax profits of 11.3 per cent and suggested that the continued growth in demand is likely to ensure prices remain high during 2006.

Analysts had predicted that Lonmin would perform well, helped by the rising cost of platinum as demand for the precious metal grows in a variety of sectors, particularly the automotive and LCD markets.


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