Lonmin revealed today (22nd October) that its platinum output was slashed by over a quarter during Q4 of the 2009 financial year.

The world's third-largest platinum producer confirmed that 166,851 oz were processed in the three months, representing a 27 per cent decline from the equivalent period in 2008.

According to a statement from the company, power issues at its troublesome Number One furnace in South Africa contributed to the drop.

In addition, Lonmin saw quarterly refined platinum sales slump from 257,685 oz to 192,608 oz, while full-year sales were down by six per cent to 682,995 oz.

As a result, the firm now believes that it will be able to sell about 700,000 oz of platinum in the 2010 financial year as South African pgm miners continue to "face challenges".

Meanwhile, Chief Financial Officer Alan Ferguson will step down after disagreeing with Lonmin's plans to relocate its operational headquarters from London to Johannesburg.

Lonmin is currently engaged in negotiations with the National Union of Mineworkers over a new pay deal for its 5,000 employees in South Africa.

Source:

UPDATE 1-Lonmin Q4 platinum sales fall 25 pct (22/10/09)

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