Lonmin has slashed its capital expenditure for the next two years by another 23% and is now targeting output of 800 000 ounces of PGMs by 2016 instead of the 950 000 ounces targeted previously.
Lonmin’s previous target of 950,000 oz by 2016 from 750,000 oz in 2012, would’ve been achieved by consistently spending $450m in capex each year until that time. It was pushed to reduce its capex forecast for 2013 and 2014 by 40% – to $250m per year – in July, largely motivated by the ongoing weak market prospects for PGMs, according to MiningMx.com.
The website said the company now “seeks to map its way forward following the events at Marikana during August” and that the group’s “priority would be to maintain ore reserve flexibility without pursuing significant production growth”.
The company’s revised strategy now forecasts investment of around $175m in 2013 and $210m in 2014, targeting sales of 680,000 oz in 2013 and 750,000 oz during the two years after that.
