Lonmin, the world's third largest platinum miner, has reported a 25 per cent fall in half-year earnings.

The strength of the rand was identified as a major factor in dampening results, although pre-tax profits still stood at $117 million for the six months ended March 31.

Indeed, production figures showed the miner enjoyed some success, with platinum output during the interim period standing at 404,574 oz, up 20 per cent.

Total pgm production soared by 14 per cent to 732 777 oz, with the company confident of meeting its one million ounces of platinum a year by its 2008 financial year.

"We had good production performance in the first half and are looking to be able to match last year's production levels for the full year. Costs came under considerable pressure due to rand/dollar exchange rate movements and one-off costs associated with the smelter re-start," commented Lonmin CEO Brad Mills.

"We continue to make good progress strategically, with the completion of the sale of our Ashanti stake in April and we have achieved a number of key milestones, as announced yesterday, necessary for the closure of our Impala/Incwala transaction. We now expect this transaction to close in the second half of our financial year," he added.

Lonmin also said it anticipated demand rising, predicting that use of pgms in the automobile catalysts, diesel truck catalysts, electronics and fuel cells industry would "continue and possibly accelerate".

The firm concluded by saying it expected its operations to continue meeting production growth targets.