World's third largest platinum miner posts big earnings jump

Despite production losses due to the South African power problems, record platinum prices took Lonmin’s first half earnings to a record high

LONDON (Reuters)  - 

Lonmin Plc, the world's third-biggest platinum producer, posted a 63 percent jump in first-half underlying earnings per share on Thursday on strong platinum prices.

Lonmin, listed in London with operations in South Africa, said EPS, excluding movements in the value of a convertible bond, rose to 132.5 cents for the six months to end March from 81.5 cents in the same period a year ago.

"Financial results for the first six months were at record levels on the back of strong PGM (platinum group metals) price appreciation," Chief Executive Brad Mills said in a statement.

The average price received for platinum rose 43 percent to $1,578 per ounce.

Supply problems in South Africa, the world's largest producer of platinum, have helped boost platinum prices. The metal has surged about 50 percent over the past 12 months, touching a record of $2,290 per ounce on March 4.

Lonmin also said it has "significantly" increased its indicated attributable resource for its Akanani project to 8.8 million ounces of PGMs. It did not give the previous resource figure.

Lonmin provided output figures last month showing the amount of platinum in concentrate produced fell 22 percent to 346,892 ounces.

Lonmin, which has been grappling with power cuts in South Africa and its own operational problems, reiterated on Thursday a full-year sales forecast of 775,000 ounces of refined platinum after cutting the target twice this year.

Electricity outages in South Africa have hit the mining sector there as state power utility Eskom struggles to keep up with rising demand.

The firm has said it lost around 15,000 ounces of refined platinum due to the power problems in the first half. Lonmin shares, which have gained 4 percent so far this year, closed on Wednesday at 3,212 pence.

(Reporting by Eric Onstad; Editing by David Holmes and Sue Thomas)

(c) Reuters 2008. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world

SUBSCRIBE to Mineweb.com's free daily newsletter now.

Print story      Email story      Subscribe to free newsletter
Related Links ARTILCES:  Platinum to crest a new record high this year?: GFMS  Lonmin's platinum forecast down again after difficult first half  Impala the choice platinum miner as power problems seen likely to continue  OTHER PAGES:  PLATINUM GROUP METALS AFRICA

Back