* Now expects sales of 685,000-700,000 oz of platinum for
full year
* Keeps expectation to exceed 8.5 percent rise for unit
costs
* Prolonged production delay to force more “difficult
management decisions”
Sept 17 (Reuters) – Platinum miner Lonmin Plc cut
its full-year sales forecast as it continues to be hurt by
violent strikes at its mines in South Africa.
The world’s No.3 platinum producer said it now expects to
sell between 685,000 ounces and 700,000 ounces of platinum for
the year ending Sept. 30.
The company, whose shares have dropped 37 percent since
January, said in August that it was unlikely to meet its
previous target of 750,000 ounces.
Lonmin also reiterated its expectation to exceed its
forecast of an 8.5 percent rise for unit costs.
The company has been hit by a month of lost production and
the absence of Chief Executive Ian Farmer, who has been on sick
leave since last month.
It has already warned it is in danger of breaching debt
covenants and has said it may need to raise equity. The
covenants would likely be breached by Sept. 30, when they are
due to be tested.
Continued…
