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AFX News Limited.

Lonmin FY profit up, says on course with production target UPDATE

11.16.2005, 04:52 AM - FORBES.com

LONDON - Platinum miner Lonmin PLC said it is on course to deliver its targeted production of 1 mln ounces in 2006 as it reported a 7 pct rise in full year profits.

The group reported a pretax profit of 323 mln usd for the year to September, up from 303 mln a year earlier on turnover of 1.128 bln usd, up from 1.03 bln.

Lonmin will be pressing ahead with efforts to rein in costs next year through its 'Six Sigma' programme which delivered benefits of 206 mln rand in 2005, way ahead of its target of 70 mln rand. Ian Farmer, the chief strategic officer, told reporters it is aiming for another 300 mln rand in gains from 'Six Sigma' this year.

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Smith Barney Upgrades Lonmin To Buy Vs Hold

Smith Barney Upgrades Lonmin To Buy Vs Hold

Tuesday, July 12, 2005 2:01:43 AM ET
Dow Jones Newswires

0549 GMT [Dow Jones] Smith Barney upgrades Lonmin (LMI.LN) to buy from hold. Cites improved earnings profile reflecting ability to reduce costs as well as a solid PGM (platinum group metal) outlook. "Lonmin's cost blow-out over the past three years provides substantial fat to cut," Smith Barney says. "We believe that Lonmin can reduce costs by around $105M over the next two years maintaining unit costs at cR2,400/PGM oz." Says focus will be on mechanization, Six Sigma, labor agreements, shared services and smelter recoveries. Shares closed at 1089p. (SMT)

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