Fiscal first-quarter production of platinum fell by 26 per cent to 81,982 oz for Lonmin Plc as it rebuilt its main furnace, the London-based company has announced in a statement.

The firm put the results down to rebuilding its problematic No 1 furnace, which has been reconstructed three times in as many years and has forced revisions to sales guidance in the past.

Lonmin's platinum sales also fell from 109,044 oz in the same period the previous year to 66,426 oz, a decline of 39 per cent, which it attributed partly to bad weather causing deliver disruptions.

In spite of this, the world's third-largest platinum producer said it has maintained its first-year sales target and considers the first quarter to be a "solid start" to 2011.

The lower rate of production was also alleviated partially by a 9,700 oz return from toll refining, meaning total refined production was in fact 91,682 oz - 17.2 per cent lower than the corresponding previous year period.

Lonmin said its operational performance underlined the progress it has made in mining, with improvements in the recovery rate and increases in both tones mined and milled.

Meanwhile, Aquarius Platinum reported second quarter 2011 attributable production of 127,579 oz of pgm, three per cent higher than the previous year and a rise of 14 per cent compared with the same period last year.

The company has expanded production in South Africa as rising global demand pushed platinum prices ever higher, particularly boosting output at its Everest project after rain-induced subsidence closed the facility in 2008.

Production was also significantly higher at Aquarius' flagship asset Kroondal, which along with Marikana achieved lower cash costs.

Meanwhile, slightly lower production was recorded at the Mimosa project, where bad ground prompted over-budget use of roof support materials.

Sources:



Lonmin's first-quarter platinum output fell 26% as it rebuilt main furnace (27/01/11)
DJ Aquarius platinum Q2 production +14%; sees FY production with views (27/01/11)
Lonmin Q1 platinum sales drop on furnace shut-down (27/01/11)
Aquarius boosts platinum output 14% as prices advance (27/01/11)
Lonmin maintains FY sales target, despite 39% Q1 decline (27/01/11)

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