Lonmin posted a rise in first quarter platinum production in spite of safety stoppages, but warned sales could be hit if the problem persists.

Platinum metal in concentrate and refined platinum production increased by 3.5 per cent and 24.3 per cent respectively year-on-year, the firm said in a statement.

"Our mining performance in the first quarter of 2012 was however severely impacted by the increase in the Section 54 safety stoppages from the Department of Mineral Resources (DMR) that were experienced industry wide," the firm said.

Lonmin did not change its sales guidance for the current year of 750,000 oz of platinum, but warned that sales could be hit by continued safety stoppages.

In total, the safety stoppages resulted in over 177,000 ts of lost production from the company's operations in South Africa.

Total platinum group metal production for the quarter was 245,950 oz, an increase of 2.3 per cent from the prior year.

Platinum sales of 92,863 oz were 39.8 per cent higher than a year ago, as a result of increased production and stock movement in the quarter.

Total pgm sales increased by 2.9 per cent to 189,590 oz.

Source:

Q1 2012 Production Report & Interim Management Statement (26/01/12)

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