Lonmin, the world’s third-biggest platinum producer, posted a 63% jump in first-half underlying earnings per share (EPS) on Thursday on strong platinum prices.
Lonmin, listed in London with operations in South Africa, said EPS, excluding movements in the value of a convertible bond, rose to 132,5 cents for the six months to end March from 81,5 cents in the same period a year ago.
”Financial results for the first six months were at record levels on the back of strong PGM [platinum group metals] price appreciation,” chief executive Brad Mills said in a statement.
The average price received for platinum rose 43% to $1 578 per ounce.
Supply problems in South Africa, the world’s largest producer of platinum, have helped boost platinum prices. The metal has surged about 50 % over the past 12 months, touching a record of $2 290 per ounce on March 4.
Lonmin also said it has ”significantly” increased its indicated attributable resource for its Akanani project to 8,8-million ounces of PGMs. It did not give the previous resource figure.
Lonmin provided output figures last month showing the amount of platinum in concentrate produced fell 22% to 346 892 ounces.
Lonmin, which has been grappling with power cuts in South Africa and its own operational problems, reiterated on Thursday a full-year sales forecast of 775 000 ounces of refined platinum after cutting the target twice this year.
Electricity cuts in South Africa have hit the mining sector as state power utility Eskom struggles to keep up with rising demand.
The firm has said it lost about 15 000 ounces of refined platinum due to the power problems in the first half. — Reuters