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LON
LOLMI
LON - Lonmin Plc - Guidance Update
Lonmin Plc (Incorporated in England and Wales)
(Registered in the Republic of South Africa under registration number
1969/000015/10)
JSE code: LON
Issuer Code: LOLMI & ISIN: GB0031192486 ("Lonmin")
10 June 2011
Lonmin Plc
Guidance Update
Further to the announcement made on 24 May 2011, Lonmin advises that, following
the dismissal of workers engaged in unprotected illegal industrial action at its
Karee operations, it has largely completed the process of recruitment and
production at Karee has resumed and is ramping up.
The unprotected industrial action at Karee followed a period of poor safety in
March and April, which had resulted in lost production in these months. The
Company had expected to recapture this lost production during the second half of
the 2011 financial year. A large portion of this catch up would have come from
Karee.
Management has now completed an assessment of the impact on production of the
industrial action taking into account the disruptive effect the action had on
the business as a whole and the need to restore normal operations while being
cognisant of the heightened safety risk associated with the restart. Management
has concluded that full year sales guidance will be negatively impacted by
around 30,000 Platinum ounces. Consequently, Lonmin is reducing its full year
guidance for the year ended 30 September 2011 to sales of around 720,000
Platinum ounces. Unit costs will be negatively impacted due to the lower
production, and the guidance of an 8% increase in unit costs for the full year
will be exceeded. Further guidance on unit cost will be given with the Q3
production report.
Ian Farmer, Chief Executive Officer, commented:
"We have put this one off event behind us and anticipate having safely ramped
back up to normal operating levels by August."
ENQUIRIES:
Investors / Analysts:
Tanya Chikanza +27 (0)11 218 8300
Head of Investor Relations
Media:
Cardew Group +44 (0)20 79300777
Rupert Pittman / James Milton
Financial Dynamics +27 (0)21 487 9000
Dani Cohen / Ravin Maharaj
Date: 10/06/2011 16:41:46 Produced by the JSE SENS Department.
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