Shares in South African platinum miner Lonmin (LMI) jumped 7 per cent on the day that its full-year results and production figures appeared - these exceeded analysts' expectations.
Lonmin produced 751,000 ounces of platinum in the period, which beat previous company guidance of over 700,000 ounces and represented a 10.5 per cent increase year-on-year. Moreover, increased mining volumes and improved metal recoveries meant cash costs rose just 3.8 per cent year-on-year to R8,832 (£533) an ounce - despite a 14 per cent hike in the wage bill and a 12 per cent jump in power costs. Platinum group metal (PGM) prices, based in US dollars, were essentially flat year-on-year at $1,100 (£688) an ounce, but increased 17 per cent in rand terms as the South African currency weakened.