[miningmx.com] — Lonmin said on Monday operating profit more than doubled to $144m in the first half and confirmed sales guidance for 2011 despite an increase in safety stoppages.
Lonmin said it expects long-term fundamentals for platinum markets to remain positive, with near-term constraints leading to a market deficit. It aims to grow output at its Marikana operations to 950,000 platinum ounces per year by 2015.
The group said it was also on target to achieve 2011 cost guidance, though capital expenditure for the year could rise to $400m, due to strength in the rand.
The miner said earnings per share came in at 44.5 cents, at the higher end of analyst expectations and against 15.5 cents in the year-ago period.
The platinum market is expected to show a surplus in 2011 for a seventh year as mine supply grows but demand improves at a slower pace after months of robust recovery last year.
Lonmin said in November it saw the market moving into deficit by about 2012 as the auto sector recovers further, since one of the metal’s key uses is for catalysts to clean pollution from vehicle exhausts. The other main use is for jewellery.
