31st Dec 2014 09:31
Lonmin Plc4 Grosvenor PlaceLondon SW1X 7YLUnited Kingdom
T: +44 (0)20 7201 6000F: +44 (0)20 7201 6100
www.lonmin.com
REGULATORY RELEASE
31 December 2014
Operational Update
Lonmin Plc (Lonmin) announces that it has safely stopped its Number Two Furnace following the detection of electrode breaks in the furnace which were creating an unstable and high temperature operating environment. The stoppage, which is not expected to exceed 21 days, should allow the integrity of the furnace conditions to be safely addressed. The three smaller Pyromets continue to operate. The work on the Number One Furnace is progressing well and on schedule.
We expect 2015 sales to be back end loaded into the second half of the 2015 financial year and there will be an increased build up of concentrate stocks, which we expect to unwind by year end. We continue to explore commercial ways of mitigating the stock build up. We expect our net borrowings to further increase at the end of March 2015 as a direct result of the lower sales volumes in the first half, but they are expected to remain within our borrowing facilities. Our sales guidance for 2015 financial year remains unchanged.
We will update the market when we release our 2015 Q1 Production results on Thursday 29 January 2015.
- ENDS -
ENQUIRIES
Investors / Analysts:
Lonmin
Tanya Chikanza
| +44 7825 877 934
|
Media:
Cardew Group Anthony Cardew James Clark Sue Vey |
+44 7770 720 389 +44 7885 776 664 +27 72 644 9777 |
Notes to editors
Lonmin, which is listed on both the London Stock Exchange and the Johannesburg Stock Exchange, is one of the world's largest primary producers of PGMs. These metals are essential for many industrial applications, especially catalytic converters for internal combustion engine emissions, as well as their widespread use in jewellery.
Lonmin's producing assets are situated in the Bushveld Complex in South Africa, where nearly 80% of known global PGM resources are found.
The Company creates value for shareholders through mining, refining and marketing PGMs and has a vertically integrated operational structure - from mine to market. Lonmin's mining operations extract ore from which the Process Division produces refined PGMs for delivery to customers. Underpinning the operations is the Shared Services function which provides high quality levels of support and infrastructure across the operations.
For further information please visit our website: http://www.lonmin.com
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