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Lonmin says plan for partial rebuild will not impact 2015 sales, costs
December 8, 2014 / 10:43 AM / 3 years ago

Lonmin says plan for partial rebuild will not impact 2015 sales, costs

LONDON, Dec 8 (Reuters) - Lonmin, the world’s third-largest platinum producer, said a plan to rebuild a part of a furnace nine months earlier than scheduled would not impact its overall sales or unit cost guidance for its 2015 financial year.

Lonmin, dragged into the red this year by a bruising five-month strike, said the rebuild at its Number One Furnace would mean sales volumes were pushed into the second half of next year but it believed it could still remain within the terms of its borrowing facilities.

The rebuild at the South African site had originally been due to take place in October 2015 but a recent leak, now safely stopped, meant it made more sense to carry out the repairs early. The works would take three months, the company added.

“The capital spend for the repairs will be absorbed into the guided capital spend for the year. We continue to focus on our cash conservation measures,” Lonmin said in a statement on Monday.

Shares in Lonmin, which in November announced $180 million of cost cuts as part of a plan to return to profit following the strike and weak platinum prices, traded down 2.7 percent at 173.2 pence at 1030 GMT. (Reporting by Sarah Young; editing by Kate Holton)

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