Lonmin, the world’s third-biggest platinum producer, cut its sales outlook for the current year on Thursday after a 19 % fall in first-quarter refined platinum output.
The London-listed firm, which has operations in South Africa, said in a statement it expected 860 000 ounces of refined platinum sales during the year ending September 2008, compared with a previous forecast of 900 000 ounces.
The firm, which repeatedly cut its full-year sales forecasts last year, said shaft closures due to safety issues, absenteeism by skilled workers and continued processing problems hit its refined production.
The firm has already disappointed investors due to problems at its mines and in processing operations, including a furnace that had to be rebuilt last year.
Lonmin said refined platinum production for the three months to end-December fell to 154 526 ounces from 190 804 ounces in the same period a year ago, while platinum sales rose 2,5% to 145 611 ounces.
”Given the production shortfall in the first quarter, the lost production in January and our revised estimate of the impact of the Easter break in March, our full-year sales target is now about 860 000 ounces of platinum,” the statement said.
Lonmin said last October it expected a recovery of platinum sales to 900 000 ounces after a 16% fall in 2007, but the outlook disappointed analysts who had hoped for a more robust rebound to about one million ounces. — Reuters