10th Mar 2015 14:06
LONDON (Alliance News) - Lonmin PLC Tuesday said it has repaired the Number One furnace in the Bushveld complex in South Africa which is now operating in line with expectations and said the Number Two furnace has ramped up and stabilised.
In December, Lonmin had said sales during the first half of the year would be lower after it suspended its Number One furnace when a leak of molten furnace matte was detected. The company said Tuesday that it had now solved the problem and the furnace began operating again on Monday.
Due to the Number One furnace being suspended for repairs, the company was using back-up facilities so as not to affect refined production. In December, Lonmin said the Number Two furnace would continue to operate, and said it had restarted the three smaller pyromet furnaces.
The Number Two furnace has now ramped up and stabilised "according to plan", it said.
Lonmin reiterated that the higher mid-year working capital and borrowings it expects as a result of the smelter outage are anticipated to unwind by year end.
Lonmin shares were down 7.9% to 116.37 pence per share on Tuesday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
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