Lonmin saw refined platinum production decrease by 16.7 per cent in the first quarter of the financial year, it was confirmed today (28th January).

The world's third-largest producer of the precious metal posted output of 110,786 oz for the three-month period, with sales falling by 13.4 per cent to 126,202 oz.

In addition, overall pgm sales increased by 4.8 per cent to 239,685 oz, while production at its Marikana operation declined by 3.9 per cent to 2.9 million tonnes.

According to Lonmin, output at the North West province site was impacted by safety stoppages and the closure of a decline shaft which was not proving cost-effective.

Meanwhile, total tonnes milled slumped by 15.6 per cent to 2.6 million tonnes, with total metals in concentrate output falling by 6.6 per cent to 161,845 oz of saleable platinum.

Despite the various declines, the company revealed that it intends to maintain its 2010 production guidance, which it established in November, at 700,000 oz.

"Our production performance during the first quarter of 2010 represents a solid start to the year," it noted.

Lonmin's two current major multi-shaft operations - Marikana and Limpopo - are located in the platinum-rich Bushveld Complex in South Africa.

Sources:

Lonmin Q1 platinum sales fall (28/01/10)

Lonmin reiterates guidance, sales fall (28/01/10)

Lonmin’s Q1 platinum sales down 13,6% (28/01/10)

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