Platinum miner Lonmin has insisted it can reach its target of producing one million ounces of platinum by the end of this year, despite a disappointing set of first half results.

A difficult second quarter for the three months to March 31st saw the company's profits take a hit, but the firm said it is still on target to reach the one million ounces milestone by the end of the year.

The interim results reported mine production of 450,894 saleable ounces of platinum and 848,548 saleable ounces of total platinum group metals (pgms) in concentrate.

Sales fell by 35 per cent during the second quarter, but Chief Executive Brad Mills explained that 185,000 ounces of platinum had been stored in a stockpile while its Furnace One was being rebuilt.

That stockpile will be processed at the end of September, which will allow the company to enjoy improved margins to toll the treating the concentrate, Mr Mills added.

Mr Mills said: "Our results reflect the successful conclusion of a difficult operational first half."

Sources:
Lonmin Interim Results
2/5/07
http://www.lonmin.com/assets/pdf/Lonmin%20Final%20Announcement%202%20May%202007.pdf

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