Lonmin keeps 2010 targets as sales halve
Lonmin’S third-quarter refined platinum sales almost halved the miner revealed yesterday following a closure of its main furnace, but it reiterated full-year sales guidance.
The world’s third-biggest platinum producer, which operates in South Africa, had said on
24 May it would need to send material out to be refined by rivals to meet the company’s
sales target of 700,000 ounces of platinum for its year to end-September. “On this basis, we continue to expect to meet our sales target of 700,000 platinum ounces,” it said, adding the cost of so-called toll refining would be around $17.5m (£11.5m).
The adjustments were needed after Lonmin suffered a setback with its troublesome No. 1 furnace which needed to be shut down again shortly after being repaired.
Lonmin said sales of refined platinum fell 49 percent to 91,952 ounces in the three months to end-June.
“We are encouraged by the restatement of sales guidance for 2010 and the limited impact on financials via third quarter toll treating due to smelter problems,” analyst Tyler Broda at Canaccord Genuity said in a note.
The stock closed up 3.9 per cent at 1,495p.