interim results 2015 lonmin plc - the vault lonmin plc 11 may 2015 1757885-001.pttx interim results...

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Lonmin Plc 11 MAY 2015

1757885-001.pttx

INTERIM RESULTS 2015

INTRODUCTION BEN MAGARA CHIEF EXECUTIVE OFFICER

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Overview A tough operating environment

• Long term PGM fundamentals remain strong but we are planning on the basis that lower prices persist

We are managing what we can control

• Maintaining our grip on cost discipline

• Reducing costs in all areas

• Constructive dialogue with unions for voluntary separation and early retirement packages

• Target c.10% cost cut and 3,500 headcount reduction

• EXCO already reduced by 22%

• Capex further reduced to $160m while maintaining 750,000 Pt ounces, $150m for 2016 & 2017

Funding

• Net debt of $282m well within available debt facilities of $563m – Net debt would have been $170m lower without the 200,000 PGM oz stock lock up

• Unwind of stocks to reduce debt levels in H2 2015

Operational Performance

• Safety - 18 months fatality free

• Solid operational performance in a tough environment

• No.1 & No.2 furnaces back on line & fully operational

• Proactively managing ESKOM power situation well

Transformation momentum – 26% effective BEE equity achieved

3

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Key Performance Features

Safety performance

• Zero harm is achievable and we remain vigilant

• Increase in LTIFR 4.51 incidents per million man hours compared to 3.23

• Safety improvement plan in place

Production momentum sustained

• 5.7 million tonnes mined, up 72% on PY (strike impacted), broadly in line with H1 2013

• Saleable MIC of 381,984 Platinum ounces highest H1 production since 2007 and understandably up 78% on H1 2014

• Saffy on track to reach full production in FY 2015, Hossy & Newman to combine following review

• Industry leading concentrator recoveries maintained at 87.0%

• Immediately available ore reserve position maintained at 3.9 million centares

• Operational flexibility intact and scalable

Cost savings program delivering ahead of plan despite S54’s limiting productivity

• PGM unit cost contained to R10,516 per PGM oz vs. full year guidance of R10,800 per PGM oz

4

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More colours Main colours Top Tier PGM Mining Assets and World Class Processing Facilities

5 Strong mineral resource base, supported by long term mining rights, instilling confidence in scalable production for decades

Ge

ne

rati

on

Tw

o

Long life, large scale but high cost

Saffy

Hossy & Newman

Ramp-up

Positive build up and cost reduction

K4 Early mining and

operational readiness

Optimise hoisting capacity

Improving half level and crew efficiency

Improve unit costs

Long life, large scale, low cost & cash generative

K3

Rowland

4B/1B

Consistent operational performance

Shafts Focus Key Drivers

Gen

erat

ion

O

ne

Old depleting shafts but cash

generative

Manage for closure

E1

E2

E3

Open cast

Cash generating

Value proposition

Migrating to commercial contract & extending life

Focus on cash

Increased value

W1

Strong ore reserve position (20.5 months production) - provides flexibility and competitive advantage

Excess smelting capacity allows for responsive planning and alternative sources of revenue

Exceptional process recovery rate remains a core strength

11 underground shafts, 8 concentrators, 5 furnaces, BMR & PMR producing c. 12 million tonnes, 750koz Pt annually Opencast Operations Run by contractors Pandora Joint Venture c. 0.6 million tonnes produced annually from Pandora – a JV with Anglo

Operational Strategy

Old depleting shafts but cash

generative

Manage for closure

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More colours Main colours On Track to Deliver Over R2.0bn Value Benefits Over Three Years (2015 – 2017)

6

Reducing operating costs by R600m over three years

Strategy execution has already yielded cost savings of c.R376 million to date – ahead of schedule

Lonmin headcount reduction of 1,128 since March 2014 and contractor headcount reduced by 618 since September 2014

Improve productivity by 15%

H1 2015 Productivity at Gen 2 shafts 5.6 m2/person in line with H1 2013

Production at Saffy up 58% on H1 2013 – on schedule to reach full production

Productivity at Gen 1 shafts 14% lower than H1 2013 at 4.4 m2/person – in line with tail management

Generation 1 shafts being converted to ore purchase agreements with contract mining to extract further value & extend life

Improve value derived from the process operations by 5%

OPM (other precious metals) project to improve recoveries of Rh, Ru and Ir

Improve process recoveries

Reducing metal in process pipeline

Progress is ahead of plans - c.R376 million already captured in H1 2015

Value benefits being achieved with unit costs at R10,516 PGMoz in H1 – full year guidance maintained

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Lonmin Versus Peers

7

2,319 1,303

747

284 194 190

Peer 1 Peer 2 Lonmin Peer 3 Peer 4 Peer 5

koz

Quartile 1 Quartile 2 Quartile 3 Quartile 4

6

8

10

12

14

16

18

Lonmin

3 3

5

Source: SFA (Oxford) Note: Pt production from broker reports (Calendared to Dec); Safety is a 12 month rolling average Note: 4E resources are on attributable and inclusive of reserves (Latest available from company reports)

2015 South African Platinum Production

Net total cash costs (2015F, ZAR/4E oz)

ZAR thousands

Industry Safety Leader

1 2

1 1 1 1 2 1 1

Peer 1 - 1 Peer 2 - 2 Peer 3 - 3 Peer 4 - 4 Peer 5 - 5

6

11

15

33

42

205

0 100 200

Peer 4

Peer 5

Peer 3

Peer 2

Lonmin

Peer 1

Moz

African PGM 4E Reserves

“Lonmin is stealing a march on peers from Q4 in 2011 to Q2/3” SFA (Oxford)

Lonmin is well positioned relative to its peers and we have a focused program to become the best conventional intensive miner sitting well in Q2 using our best in class employee relations

Quartile 1 Quartile 2 Quartile 3 Quartile 4

2

0.000

0.050

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0.150

0.200

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14

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Jan

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Comparison of Platinum Industry – Fatality Rate 12 Month Rolling

Lonmin Peer 1 Peer 2 Pt Industry

No. of fatalities

4 4

2011

OPERATIONAL REVIEW BEN MAGARA CHIEF EXECUTIVE OFFICER

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9

Generation Two Shafts

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Saffy

K4

Hossy & Newman

K3

Rowland

4B/1B

Shafts Operational Strategy

Long life, large scale but high cost

Long life, large scale, low cost & cash

generative

Our Actions

New operating model & supporting structures

Empower our operational teams

• Work and authority at appropriate level

• Clear roles and responsibilities

Direct relationship building program with employees &

unions to improve “The Way We Work”

Saffy ramping up to full production on schedule

Hossy review complete

• Merging Hossy & Newman to extract synergies

Theory of Constraints yielding benefits

• Optimising half levels & improving crew efficiencies

• Stores constructed & stocked underground

increasing working capital as we gear up

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Contractor Model for Mines that are Uneconomical for Lonmin to Mine at end of Mining Life

Lonmin is not selling its old mines, we have reviewed and enhanced our contractor model…which extends their life with commercially driven Ore Purchase Agreements

Future Status Contractor takes full responsibility for the

operation that is uneconomical for Lonmin to

operate

Current Status

Contractor responsible for

mining & Lonmin for engineering and

maintenance

Transition W1, E1, E2

Tonnes (FY15) Contractor Arrangement

Lonmin Employees Contractor Labour

Status

Opencast 140,000 Contract mining 5 309 Done by Dec 2015

W1 174,000 Ore Purchase 45 526 Contracting out

E1 100,000 Ore Purchase 131 428 December 2016

E2 424,000 Contract Mining 251 857 December 2017

E3 incl. JV 765,000 JV Ore Purchase 1949 220 Lonmin operated

Strictly manage shafts on a commercial basis for maximum margins and cash generation through ore purchase agreements

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Case Study: Saffy Shaft Productivity Improvement Interventions

11

Grout plant upgraded to increase pumping capacity in order to reduce lost blasts

Renegotiating current Rosond contract to reduce fixed elements

Installed in stope nets in all panels

Additional winches purchased and installed & buffer stock established on surface

Theory of Constraints stores constructed and stocked underground

Rosond Grout Plant

0

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20

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Oct-13 Mar-14 Oct-14 Mar-15

No. of Stoping Crews

Operational team strengthened and shaft on track to reach full production

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Case Study: Saffy Cost & Production Improvement

12

8,495

-

-

10,126

-

- -

7,077

-

2,000

4,000

6,000

8,000

10,000

12,000

FY13 (H1) CPI (6% pa) Labour above CPI Sub Total Grade / Recovery Volume Cost increase FY15 (H1)

Ran

d p

er

Ou

nce

Saffy (Shaft Head cost - Rand per PGM ounce)

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0

100

200

300

400

500

600

700

800

FY

09

FY

10

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11

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12

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13

FY

14

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SAFFY - Ore Reserves

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

FY09Avg

FY10Avg

FY11Avg

FY12Avg(N)

FY13Avg

FY14Avg

Oct 14 Nov14

Dec14

Jan 15 Feb15

Mar15

FY15YTDAvg

Saffy - Tonnes Hoisted

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Case Study: Hossy Shaft Production

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6,775

7,940

7,643

4,500

5,000

5,500

6,000

6,500

7,000

7,500

8,000

8,500

FY13 (H1) CPI (6% pa) Labour above CPI Sub Total Grade / Recovery Volume Cost Increase FY15 (H1)

Ran

d p

er

oz

Hossy Shaft (Shaft Head Cost per PGM ounce)

Stope Crews 23 conventional and 2 XLP crews. 8 hybrid stoping crews in training centre

Ore Reserves are adequate going forward 17.9 months of ore reserve sufficient to maintain required stoping extraction

207

0

50

100

150

200

250

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09

FY

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FY

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Oct-

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4

Ja

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ou

sa

nd

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Hossy - Ore Reserves

0

20,000

40,000

60,000

80,000

100,000

120,000

FY10Avg

FY11Avg

FY12Avg

FY13Avg

FY14Avg

Oct14

Nov14

Dec14

Jan15

Feb15

Mar15

FY15YTDAvg

Hossy - Tonnes hoisted

FINANCIAL REVIEW SIMON SCOTT CHIEF FINANCIAL OFFICER

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15

Summary of Financial Results

Financial impact of solid operational performance impacted by lower Platinum price

2015 2014 Abs %

Platinum Sales koz 266 264 2 0.9%

Platinum Price $/oz 1,187 1,400 (213) (15.2)%

Basket Price $/oz 988 1,056 (68) (6.5)%

Revenue $m 508 578 (70) (12.0)%

Underlying EBITDA $m 8 103 (95) (92.7)%

Underlying (LBIT)/EBIT $m (70) 34 (104) >100%

Special Costs $m (14) (165) 151 91.7%

LBIT $m (84) (131) 47 35.6%

Underlying (LPS)/EPS cents (10.5) 3.5 (14.0) >100%

Basic LPS cents (13.6) (35.5) 21.9 61.7%

6 months to 31 March Variance

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(131)

230 (33)

(45)

6 2 (195)

82

(84)

(200)

(175)

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(100)

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0

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LBIT (H1 FY14) Stockmovement

including FX

PGM volumesold

PGM price Base metals PGM Mix Costs & depn(like-for-like)

FX on SA costs LBIT (H1 FY15)

16

LBIT Variance Analysis

Increased volumes produced but stock lock-up due to smelter shutdowns

Favourable foreign

exchange impact.

Rand weakened

from R10.54 to

R12.13.

• $125m metal stock

build-up in H1 2015 due

to smelter shutdowns

• $105m stock decrease

in H1 2014.

Volume increase

following the strike

in 2014.

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17

Costs and Cost per PGM Ounce

CAGR 8.3% over 2 years despite two years of labour increases of 12.9% and 8.8%

• Achieved unit costs of R10,516 per PGM ounce - 2.6% below annual guidance of R10,800

• Demonstrates the progress made with the value benefits projects despite production bottlenecks due to the smelter downtime

• H1 2015 unit cost was 19.5% lower than the strike impacted prior year period

• A compound annual increase of only 8.3% since H1 2013 despite two years of labour increases of 12.9% and 8.8%

% Change CAGR

Units 2015 2014 2013 2015 v 2014 2015 v 2013

PGM Operations underlying cost of sales Rm 7,255 3,868 6,291 (87.6)% 7.4 %

Exchange rate (on cost of sales) R/$ 11.44 10.12 8.84 13.0 %

PGM Operations underlying cost of sales $m 634 382 712 (65.9)%

SA exchange translation impact $m (82) - - n/a

Cost of production (PGM operations) R/oz 10,516 13,058 8,960 19.5 % 8.3 %

6 months to 31 March

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18

Net Debt

Smelter shutdowns have impacted debt by around $170 million

(29)

(6) 1 (31)

(124)

(65)

(8)(10)

(19)9

(282)

170

(350)

(300)

(250)

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(50)

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50

100

OpeningNet Debt

EBITDA Debtors Creditors Stock Capex Netfinancing

cost

Deferredrevenue

Minoritydividends

Other Closing NetDebt

Impact ofsmelter

incident

Volume variance $(223) millonFX variance $99 million

Working capital increase$(154) million

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19

Capital Expenditure

Proactively scaling back capex to manage cashflows & in reaction to persisting low PGM prices

H1 2015 capex limited to $65 million

• H1 2014 impact by cash conservation measures during the strike

FY15 capex reduced to $160 million from $250 million

• Mining - non-critical path items deferred at some shafts

• Concentrators - Bulk tailing treatment project deferred

H1

2014

$m

H1

2015

$m

FY15

Original

Guidance

$m

FY15

Revised

Guidance

$m

Mining 36 45 136 98

Concentrators 5 4 62 22

Smelting & refinining 3 12 33 29

Housing & other 2 4 19 11

Total 46 65 250 160

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20

Balance Sheet Focus Maintained

Continued focus on cash conservation in persisting low price environment

Costs

• We continue to focus on the value creation initiatives around cost savings

• H1 unit cost contained to R10,516 per PGM ounce

• 19.5% lower than H1 2014 which was distorted by the strike

• Compound annual increase of 8.3% on H1 2013 achieved despite two years of labour increases of 12.9% and 8.8%

• Early success of the value benefit projects

Capex

• H1 capital expenditure limited to $65 million

• Full year guidance reduced to $160 million (from $185 million guided at Q1)

• We are planning on the basis that low PGM prices persist for at least 2 years and are scaling back capex for FY16 and FY17 to $150 million per annum

Net debt at 31 March of $282 million well within debt facilities of $563 million

• Impact of stock build up arising from smelter downtime estimated at $170 million

• Net debt level to reduce by year end.

MARKET OVERVIEW BEN MAGARA CHIEF EXECUTIVE OFFICER

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22

PGMs Enjoy Strength in their Diversity of Markets, Both by End-Use and by Region

Automotive Production – global growth trajectory supports PGM demand

• Total global vehicle production up 2% to 87m units vs. 2013 – Improved output in Western Europe, US & China

• Annual light vehicle production expected to grow from 89.9m units per year in 2015 to 122m

per year in 2025

• Imperative for cleaner air in developed and emerging markets (incl. BRICS) - represents significant upside ahead

Recent anti-diesel sentiment targeting older Euro 3,4 & 5 vehicles – not Euro 6 compliant diesel vehicles

• Unwarranted negative press

Fuel Cell Vehicles represent a significant long-term growth market

• Stationary and vehicle fuel cells will see increasing adoption over the next decade

• Adoption of fuel cells as base load and back up power is expected to grow significantly in Asia and Africa

• Lonmin in final stages of evaluating 400 KW base load natural gas fed fuel cell at PMR

Jewellery remains a key contributor to demand at around 36% of total consumption over the next decade

ETFs remain sticky – Driving World Platinum Investment Council to grow investment demand

Recycling is a growing part of the mix – expanding as overall demand grows

Euro3

Euro5

Euro6

500g/km

180g/km

80g/km

Max NOx for Diesel

Typical Fuel Cell Stack

Pt Jewellery in India growing

Pollution in China

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204

255

255

000

250

191

143

178

161

199

224

226

241


23

Western Europe Diesel Sales – Little Threat to on-going Sales; Platinum Upside with Euro 6 Purchase

Source: SFA (Oxford), LMC Automotive

016

033

141

008

083

166

000

173

226

072

072

072

118

118

118

161

192

218

235

235

235

146

205

220

194

214

155

204

153

255

231

233

241

204

209

225




228

245

204

255

204

255

255

000

250

191

143

178

161

199

224

226

241


Long term PGM Fundamentals Remain Attractive

24

Vehicle Units Legislation

Heavy Duty Fuel Cells

Jewellery Investment

Substitution

Engine size

Thrifting

Net

Gro

wth

in D

eman

d

PGM demand Other Industrial

Recycling

OPERATING ENVIRONMENT BEN MAGARA CHIEF EXECUTIVE OFFICER

25

WE DIG TO IMPROVE LIVES

016

033

141

008

083

166

000

173

226

072

072

072

118

118

118

161

192

218

235

235

235

146

205

220

194

214

155

204

153

255

231

233

241

204

209

225




228

245

204

255

204

255

255

000

250

191

143

178

161

199

224

226

241


Housing and Living conditions

• Phase I of construction on 50 hectares donated by Lonmin

• Infill apartment project commenced

Financial literacy programme

• 44,000 employees and family members trained

Education projects

• 22,500 learners up from 18,500 in 2013 in GLC schools - Lonmin transports more than 1,000 daily

• Additional class rooms built in GLC schools and commencing building new school in Marikana

• Educator training workshops and learner Saturday school in place

• Matric pass rate at 95% vs. 76% national average

26

Corporate Citizenship Agenda

016

033

141

008

083

166

000

173

226

072

072

072

118

118

118

161

192

218

235

235

235

146

205

220

194

214

155

204

153

255

231

233

241

204

209

225




228

245

204

255

204

255

255

000

250

191

143

178

161

199

224

226

241


Community Infrastructure development

• 11 new high mast lights in Wonderkop village & Nkaneng settlement – improved visibility and security along with creating additional power supply to electrify 160 additional houses

• Upgraded road into Wonderkop village and Nkaneng settlement - improved mobility and access

• Opening new school Mxekazi JSS in the Eastern Cape

Enterprise development

• 43 business enrolled - R64 million worth of contracts already secured and signed by GLC businesses

Community Health

• HIV/AIDS Care and Education

• Health Infrastructure

27


P1 New Masts

Repaired Masts

P2 New Masts

CONCLUSION BEN MAGARA CHIEF EXECUTIVE OFFICER

016

033

141

008

083

166

000

173

226

072

072

072

118

118

118

161

192

218

235

235

235

146

205

220

194

214

155

204

153

255

231

233

241

204

209

225




228

245

204

255

204

255

255

000

250

191

143

178

161

199

224

226

241


29

Decisive Action Taken to Protect Liquidity and Embed Resilience Through Shared Interest

Operational Excellence

• Record safety performance – 18 months fatality free

• Cost reduction plans yielding benefits ahead of plans

• Saffy ramping up to full production on schedule, Hossy review complete & shaft combined with Newman

People

• Process underway to reduce headcount and cut labour bill by 10%

• Culture change program underway to improve “The Way We Work”

Commercial Strategy

• Optimised business plan to navigate prolonged low price environment

• Robust funding strategy in place to support the business


• Strengthening stakeholder relationships, currently advancing collaboration & partnerships

• Increased community participation, empowerment and economic development

Creating a shared interest to see Lonmin succeed

016

033

141

008

083

166

000

173

226

072

072

072

118

118

118

161

192

218

235

235

235

146

205

220

194

214

155

204

153

255

231

233

241

204

209

225




228

245

204

255

204

255

255

000

250

191

143

178

161

199

224

226

241


Full year guidance maintained of saleable MIC of around 750,000 Platinum ounces. Smelter complex operating at normal levels and we are utilising surplus furnace capacity to maintain our sales guidance of around 730,000 Platinum ounces…

…We have seen pleasing results from our cost savings programme and we maintain our unit cost guidance at R10,800 per PGM ounce for the full year despite current S54 stoppages

…We are planning on the basis that the current depressed pricing environment persists and as a result we have reduced our 2015 capital expenditure from $185m to $160m

…Capex of $150m per annum planned for 2016 and 2017 with c.750,000 ounces production of Platinum per annum

…We are managing our working capital requirements through rigorous cash conservation measures and capital discipline to keep borrowings and debt covenants well within our committed facilities

…Solid progress made in a tough operating environment

…We are managing our controllables and taking the tough decisions required to navigate the prevailing environment

30

Outlook and Guidance

Questions

016

033

141

008

083

166

000

173

226

072

072

072

118

118

118

161

192

218

235

235

235

146

205

220

194

214

155

204

153

255

231

233

241

204

209

225




228

245

204

255

204

255

255

000

250

191

143

178

161

199

224

226

241


Strong and Experienced Management Team

Lerato Molebatsi

EVP Communications & Public Affairs BA Phil, (SMDP)

Lerato joined Lonmin in September 2013 having worked at the Department of Labour since September 2011 as their Deputy Director General: Corporate Services. She holds a Bachelor of Arts degree in Psychology from the University of Johannesburg and a Post Graduate Diploma in Rural Policy Development Policy and Management from the University of Witwatersrand.

Simon Scott

Chief Financial Officer CA (SA)

Simon joined Lonmin and the Board in September 2010, became CFO in November 2010 and was Acting CEO during the period 24 August 2012 to 30 June 2013. He is a graduate with accounting and commerce degrees from the University of the Witwatersrand. A South African registered chartered accountant, he has held a number of financial management roles in South Africa with local and global employers, including over eight years with Anglo American.

Abey Kgotle

EVP Human Resources B.Soc.Sc, EDP, M.Dip HRM Abey joined Lonmin in April 2008 as Senior Manager Human Resources. He holds a Bachelor of Social Sciences from the University of the North West and a Masters Diploma in Human Resource Management. Prior to joining Lonmin, he worked in executive human resources roles at GrafTech South Africa, City of Johannesburg, Samancor Manganese and Denel.

Ben Moolman

Chief Operating Officer BSc Engineering (Mining)

Ben joined Lonmin to head the Business Support Office. Ben is a mining engineer by profession and holds a BSc in Engineering (Mining) from the University of the Witwatersrand. Ben joined Lonmin from Glencore where he initially joined them as General Manager of their Alloys business before becoming Managing Director of their platinum division.

Thandeka Ncube

Business Transformation Manager, Shanduka Resources

B.Soc.Sc, MBA

Thandeka works with Shanduka’s investee companies advising on transformation and broad based empowerment. She holds a social sciences degree from the City University of New York and an MBA from Henley Business School. She began her career working at various government institutions, developing strategy and policy for SMEs and then joined the retail banking side of Standard Bank.

Ben Magara

Chief Executive Officer BSc Eng (Hons), ADP (LBS)

Ben joined the Company and Board as Chief Executive on 1 July 2013. He is a graduate Mining Engineer from the University of Zimbabwe. Ben was the Chief Executive Officer of Anglo Coal South Africa and the Executive Head responsible for Engineering and Capital Projects at Anglo Platinum. Ben was previously a director of Anglo American South Africa (2006-2013), was Chairman of Richards Bay Coal Terminal and the Eskom 2008 Coal Working Group.

32 32

016

033

141

008

083

166

000

173

226

072

072

072

118

118

118

161

192

218

235

235

235

146

205

220

194

214

155

204

153

255

231

233

241

204

209

225




228

245

204

255

204

255

255

000

250

191

143

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33

Costs

2015 2014

Revenue (reported) $m 508 578

Metal stock movement (like-for-like) $m 223 (105)

Cost SA (reported) Rm (7,255) (3,868)

Like-for-like FX R/$ 10.12 10.12

Costs (like-for-like SA) $m (717) (382)

Costs (like-for-like RoW) $m (10) (6)

Costs (like-for-like) $m (727) (388)

Exchange (total) $m 4 18

Cost of sales (reported) $m (500) (475)

EBITDA (underlying) $m 8 103

Depreciation (reported) $m (78) (69)

EBIT (underlying) $m (70) 34

Cost of production (PGM operations) R/oz 10,516 13,058

6 months to 31 March

016

033

141

008

083

166

000

173

226

072

072

072

118

118

118

161

192

218

235

235

235

146

205

220

194

214

155

204

153

255

231

233

241

204

209

225




228

245

204

255

204

255

255

000

250

191

143

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34

Direct Shaft Head Cost per Tonne

-

200

400

600

800

1 000

1 200

K3

4B/1B

Ro

wlan

d

New

man

Hossy

Saffy

Gen

eration

2

W1

E1 E2 E3 (Lon

min

)

Gen

eration

1

Gen

1 & G

en 2

Ran

d p

er T

on

ne

016

033

141

008

083

166

000

173

226

072

072

072

118

118

118

161

192

218

235

235

235

146

205

220

194

214

155

204

153

255

231

233

241

204

209

225




228

245

204

255

204

255

255

000

250

191

143

178

161

199

224

226

241


35

Special Cost

Special Costs Rm $m

BEE transaction costs 167 15

Lock-in premium 149 13

Legal and consulting costs 18 2

Other (10) (1)

Total 158 14

6 months to March 2015

016

033

141

008

083

166

000

173

226

072

072

072

118

118

118

161

192

218

235

235

235

146

205

220

194

214

155

204

153

255

231

233

241

204

209

225




228

245

204

255

204

255

255

000

250

191

143

178

161

199

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241


FY15 LOBP Shaft Lifecycle of Marikana Mines

W1

E1

E2

`

Newman

End of life Steady State Study Capital Project

Reef

Pro

du

cti

on

% o

f C

ap

acit

y*

Karee Easterns Pandora Westerns

0%

100%

Reef

Pro

du

cti

on

% o

f C

ap

acit

y

Build-up Steady-state Wind down

High Cost & Capital Requirement Low Unit Cost Increased Unit Cost

Lonmin Marikana Shaft Life Cycle

36

016

033

141

008

083

166

000

173

226

072

072

072

118

118

118

161

192

218

235

235

235

146

205

220

194

214

155

204

153

255

231

233

241

204

209

225




228

245

204

255

204

255

255

000

250

191

143

178

161

199

224

226

241


Marikana Mines Overview

37

Total Lonmin Resources and Reserves

3PGE + Au

Pt Moz Mt g/t Moz

Measured, Indicated & Inferred 1,241.4 4.49 179.1 100.5

Proved & Probable 356.4 3.7 42.4 25.3

Source: Lonmin

interim results 2015 lonmin plc - the vault lonmin plc 11 may 2015 1757885-001.pttx interim results...

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