LONDON (dpa-AFX) - Lonmin Plc (LNMIF.PK, LMI.L) Friday reported that its first-half operating profit was $70 million, compared to last year's operating loss of $32 million.
The improvement was driven by higher PGM prices and a weaker Rand:Dollar exchange rate.
Earnings before interest, tax and depreciation or EBITDA for the first six months was $78 million, compared to loss of $26 million a year ago.
Further, the company provided production update, reporting 16 percent rise in second-quarter refined Platinum production to 142,260 ounces.
The company recorded a 4.2 percent rise in second-quarter platinum sales to 146,459 ounces.
Mining production was 2.1 million tonnes, down 8.4 percent from the previous year. Total Platinum production (metals-in-concentrate) was 125,803 ounces, down 12.3 percent.
For the first half, refined Platinum production was up 1 percent to 286,911 ounces. Platinum sales of 286,947 ounces were broadly flat. Mining production dropped 7.7 percent to 4.3 million tonnes.
Total Platinum production (metals-in-concentrate) was 276,020 ounces, down 10.3 percent on the back of reduced mining tonnes, lower grades and lower recoveries.
Looking ahead, the company said its expects sales for the full year 2019 to be at the lower end of sales guidance range of between 640,000 and 670,000 Platinum ounces.
The outlook reflects the extent of production losses suffered during the first half as well as finalising the transaction with Sibanye-Stillwater.
Ben Magara, Chief Executive Officer, said, 'However, despite the progress made, this does not provide a long-term solution to the capital structure challenges faced by Lonmin, as it is still inadequate to invest in the new projects necessary to avoid shaft closures and job losses and maintain our production profile. The Company's available liquidity is also still vulnerable when considering its working capital requirements and continuing exposure to volatile currency and metal markets.'
Accordingly, the company said it remains convinced that consolidation through the announced offer from Sibanye-Stillwater creates the best way forward.
In London, Lonmin shares were trading at 64.16 pence, down 2.50 percent.
Copyright RTT News/dpa-AFX
© 2019 AFX News
