[miningmx.com] — LONMIN said earnings rose 59% in its financial year to the end of September, despite a strike at its Karee operations that forced it to cut output targets and helped drive up unit costs.
Lonmin said underlying earnings per share rose 59% to 111.6 cents, above analysts’ expectations and boosted by higher metal prices. Revenues climbed to $1.99bn, also at the higher end of forecasts.
Platinum sales totalled 721,000 ounces, meeting a 2011 sales target trimmed in June after safety stoppages were followed by a walkout at Karee that saw it dismiss 9,000 workers. Lonmin targets sales of 750,000 platinum ounces in 2012, with the longer term aim still to achieve its optimal capacity of 950,000 platinum ounces, the miner said.
It reported capital spending of $410m this year, set to rise to $450m for its 2012 financial year. The group said it could trim that “if the economic environment dictates”.
Costs per ounce increased by 11.2%. Lonmin had raised unit cost guidance to an annual increase of around 11%, from 8%, before because of the stoppage at Karee, part of its Marikana operations.
Lonmin said it was cautious about the short term outlook, but said both automobile and jewellery end users were “holding up remarkably well in the face of gathering recession predictions”.
Platinum, besides being popularly used in jewellery, is also used in catalytic converters that cut pollution from car exhausts.
