The world’s third largest primary platinum producer posted their full year results for the year ended 30 September 2013.
The group’s profit before tax rose from 57 million US dollars in 2012 to 158 million US dollars in 2013, indicating a positive growth after their recovery from the effects of a strike that resulted in the Marikana massacre.
“These are strong results. Despite the constraints faced at the start of the financial year our ramp up was impressive and we met production expectations with costs well under control and with many areas of the business recording their best performance in years,” said Ben Magara, chief executive officer of Lonmin in a statement released on Monday.
Lonmin Plc, [DATA LON:LONMIN PLC.] had a net debt of 421 million US dollars in 2012 and managed to turn that figure into a positive net cash of 201 million US dollars this year.
A major contributor to this capital growth however was the rights issue that was successfully completed in December 2012, raising net proceeds of 767 million US dollars for the group.
Underlying earnings per share also increased from 3.9 cents per share last year to 20.5 cents per share in 2013 while their underlying operating profit grew from 67 million US dollars to 164 million US dollars for the same period.
A dividend was not proposed for the current financial period.
Production has also soared for the company with 751,000 ounces of platinum in concentrate produced for the period, a 10.5 per cent increase from 2012 and the highest level in six years.
Margara stated that the company’s performance should be attributed to their management team, which was reshuffled during the 2013 financial period.
“Our top management team has been strengthened and we have the right people in place to take Lonmin forward,” he added.
“We now have the team in place to focus our resources more strategically and achieve a steady improvement in value for our shareholders.”
Going forward, Magara stated that the group will be focusing on driving higher performance and cost control as well as work on improving relations with their employees.
“Whilst proud of our operational achievements we regard our solid performance in 2013 as the foundation to build on. Our sustained hard work to improve relationships with our employees is yielding results, not least around labour relations, but I want to see a step change,” he said.
“Our focus for the coming year will be on driving higher performance and delivery further and harder whilst continuing with cost control and working to bring that same focus to the business critical issues of employee relationships and social responsibility.”