Lonmin, the world’s third-biggest platinum producer, posted an 8,3% rise in second-quarter platinum sales on Wednesday, but again cut its full-year sales target following power problems in South Africa.
Lonmin said refined platinum sales rose to 143 351 ounces in the three months to end-March from 132 345 ounces in the same period a year earlier. Second-quarter production gained 39% to 128 124 ounces.
Lonmin, which has mines in South Africa, saw production and sales in the first half of the previous fiscal year dampen when a key furnace was out of operation for much of that period.
The firm cut its full-year sales target to 775 000 ounces of platinum, which it said was the current market consensus, from 860 000 ounces previously.
Electricity cuts in South Africa have intensified this year as state power utility Eskom has struggled to keep up with rising demand.
”This guidance does take account of the current constraints in relation to electricity supply but any deterioration of the current power-supply situation or any further significant safety stoppages are risks to this target,” a statement said.
The target has already been trimmed once, in January, when the power problems forced the firm to review its forecast of 900 000 ounces.
Supply problems in South Africa, the world’s largest producer of platinum, have helped boost platinum prices to record highs. Platinum has surged 50% over the past 12 months, touching a record of $2 290 per ounce on March 4.
Although refined platinum sales and output grew in the second quarter as the firm processed stockpiles, the power problems showed up in the tonnage of ore mined, which fell 16%.
Lower grades also had an impact on the amount of platinum produced in concentrate, which tumbled by 27%.
Lonmin’s interim results are due to be released on May 8. — Reuters