Miner Lonmin has announced its third quarter figures for 2005, showing an increase in its pgm production.

The firm's total pgms sales during the quarter increased by over 6,000 pgm oz compared to the same period in 2004, and chief executive officer Brad Mills announced that the company's improving outlook means it has been able to cut its full year cost guidance to "around R2,450 per pgm ounce" sold for the company's Marikana operations.

Mr Mills explained that the improved production, together with the fact that Lonmin has successfully controlled its costs, has brought about the company's decision to revise its guidance.

However, Mr Mills added that the Marikana smelter's strong performance over the quarter has "created higher material flows than normal in our Base Metals and Precious Metals refineries", meaning that Lonmin is unlikely to be able to fully process the extra stock before the end of the year.

But Mr Mills is confident that this situation will be "fully reversed in the first quarter of next year".

Looking to the future, Lonmin expects its production for the full year to be around 910,000 ounces of Platinum, with 10,000 ounces coming for its Limpopo operations, where the firm stated that integration is currently progressing well.