Lonmin Platinum has said it expects its full-year production of platinum to stand at between 920,000 and 940,000 oz, as sub-par recoveries continue to impair the firm's performance.

The reduction in output has led to Lonmin revising its sales figures for the year, from an initial forecast of up to one million ounces of platinum to a more modest figure of between 820,000 and 840,000 oz.

Total sales of platinum group metals (pgms), meanwhile, are expected to stand at around 1.52 to 1.55 million ounces.

For the first nine months of this year to June 30th, Lonmin has sold 477,639 oz of platinum and 897,661 oz of total pgms.

According to the firm the principal factors behind its impaired showing were bottlenecks at refineries and decreasing grades of the ore it has been mining.

A statement from the Lonmin said: "We are continuing to experience poorer recoveries at our concentrators principally due to the ongoing change in the mix of ore types.

"This has principally been caused by an earlier than anticipated shift in the mix of underground ores with a larger proportion of ore feed now coming from the Eastern side of our Marikana property. These ores are proving to be more difficult to mill than planned."

However, in spite of the firm's difficulties it reiterated that it expects to meet all its contractual obligations.

Sources:

Lonmin says 9-month platinum output 477,639 oz, 16/07/07

http://investing.reuters.co.uk/news/articleinvesting.aspx?type=companyOutlooksNews&storyID=2007-07-16T062621Z_01_WLB8865_RTRIDST_0_LONMIN-OUTPUT-URGENT.XML

Third Quarter Production Report and Trading Update, 16/07/07http://www.lonmin.com/news.aspx?pageid=99&pressID=166

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