Lonmin 2013 Final results

DividendMax Ltd.

Lonmin 2013 Final results

HIGHLIGHTS

• Strong performance across the Company

o Lost Time Injury Frequency Rate (LTIFR) of 3.50, a 15.9% improvement on previous year, but sadly 3 fatalities

o Production ramp up achieved well ahead of Renewal Plan

o Highest Marikana underground tonnes hoisted in 6 years (11 million)

o 751,000 Platinum ounces in concentrate achieved, highest in 6 years and an 10.5% increase on last year

o Platinum sales of 696,000 ounces, exceeding guidance of 660,000 ounces; pipeline rebuilt

o Immediately available ore reserves at 3.8 million centares, up 14.7%

o Concentrator recoveries at record level at 87.0%

• Financial results

o Rights Issue of December 2012, raised net proceeds of $767 million

o Underlying profit before tax of $158 million ($57 million in 2012)

o Net cash of $201 million (net debt of $421 million in 2012)

o Cost of production per PGM ounce increase contained to 3.8% - exceeding guidance and lower than South African inflation

o Capital expenditure of $159 million (below guidance of $175 million - in line with guidance in Rand terms)

o Underlying Earnings per Share of 20.5 cents versus 3.9 cents in prior year (restated for impact of Rights Issue)

• Guidance and focus areas FY2014 onwards

o FY2014 guidance of Platinum sales in excess of 750,000 ounces

o Unit costs to increase by less than wage inflation

o Capital expenditure of $210 million for 2014 financial year

• Driving achievements through a focus on operational excellence and value optimisation

Lonmin Chief Executive Officer Ben Magara said: "These are strong results. Despite the constraints faced at the start of the financial year our ramp up was impressive and we met production expectations with costs well under control and with many areas of the business recording their best performance in years. Our top management team has been strengthened and we have the right people in place to take Lonmin forward. Our focus for the coming year will be on driving higher performance and delivery further and harder whilst continuing with cost control and working to bring that same focus to the business critical issues of employee relationships and social responsibility."

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