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RESILIENCE IN TOUGH OPERATING ENVIRONMENT
15 MAY 2017 - INTERIM RESULTS PRESENTATION
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2
Agenda
Overview and Key Features 1
Operational Performance 2
Financial Performance 3
Macro Environment 4
Conclusion and Guidance 5
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More colours Main colours Overview Our Journey to Navigate the Tough Operating Environment Continues
3 Mining improvement supports maintaining sales guidance
• Tough operating environment persists
• Ill-disciplined platinum supply industry. Lonmin doing it’s part to reduce high cost production in a low price environment
• Poor mining production in first four months
• Delivered record-breaking mining production in March, and lowest unit cost of R9,695 per PGM ounce
• Mining production improvement has been sustained since March, resulting in Net Cash improving to $75 million from $49 million in first quarter
• Lonmin is doing everything in its control to maintain its cash neutral status in this low price environment, even with the strengthening Rand
• Acquisition of Pandora JV provides capex savings of circa R2.6 billion
• Our business plan is still on track with the last few months confirming that
Cash Neutral Since Rights Issue
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Key Features
4
• Three fatalities despite 14% year-on-year improvement in Total Injury Frequency Rate
• Reduction in Generation 1 production of 258kt (22%) in H1 2017 as planned
• Generation 2 shafts production down 4% (157kt) for H1 2017, due to setback in mining performance in first four months, resulting in unit costs of R12,059 per PGM ounce, 13% up year-on-year
• K3 issues addressed and step change in approach delivers record mining performance
Lonmin (best March since 2012) K3 (Best in 29 months) Saffy (all-time record) E3 (improved 25% Q2 on Q1)
• Cost saving progress well ahead of target and kept total costs flat year-on-year
OPERATIONAL PERFORMANCE BEN MAGARA CHIEF EXECUTIVE OFFICER
5
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6
Safety
Safety remains work in progress until we achieve Zero Harm
• Safety in South African mining has reached a plateau, after step change brought about by the introduction of nets and collision avoidance mechanisms
• Lonmin has a single focus and commitment to safe production as part of mining improvement, based on a coalition of Department of Mineral Resources, the unions and management
• The Total Injury Frequency Rate (LTIFR) improved 14% to 11.92
• Mining LTIFR improved 9% to 5.57 and overall LTIFR improved by 5.8% to 4.68 at 31 March 2017 from 4.97 at 30 September 2016
• Safety improvements resulted in a reduction in days lost due to Section 54 safety stoppages, from 85 days last year to 56.5 days
• Keeping Rustenburg Inspectorate (DMR) abreast of our safety improvement plans and performance to maintaining good relations
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Mining Improvement
7
Highest monthly production for the last 29 months
Best March production in four years
Oct Nov Dec Jan Feb Mar
Total 945 895 490 584 794 978
K3 243 223 123 126 181 276
-
200
400
600
800
1,000
1,200
To
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'000)
• Improvement in mining production since February, with average daily production over 40,000 tonnes for March and April
• Production increased to 794,000 tonnes for February, 978,000 tonnes for March
• Lonmin ‘best March since 2012’ and ‘highest monthly production for 18 months’
• Step change in approach and management routines at all shafts • Leveraged our union relationship creating a
coalition of management, DMR inspectorate and AMCU
• Coalition visits to operations created urgency and communicated a vision around ‘SPHTD’
• Safe Profitable Happy Tonnes Daily
• A flatter structure with General Managers now reporting directly to Chief Executive Officer; accountability and empowerment; decentralised decision making
• Next step: embed step change to ensure sustainability
20,000
25,000
30,000
35,000
40,000
45,000
Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17
Average Daily Tonnes Hoisted
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Good Mining Production Delivers Lower Unit Cost
8
• Overall H1 unit costs of R12,059 per PGM ounce were higher, driven by the weak mining performance especially at K3 for the first four months
• The unit cost for March at R9,695 per PGM ounce, highlights the importance and impact of good production
• Unit cost guided to R11,300 – R11,800
• Key risks : • Safety • Public holidays • Community unrest • Navigated April and Mayday
holidays effectively
Oct Nov Dec Jan Feb Mar
Tonnes 945 895 490 584 794 978
Unit Cost 12,897 10,605 16,056 15,979 11,800 9,695
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
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Unit cost (R/PGM oz)
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Lonmin’s IAOR Drives our Flexibility
9
Immediately Available Ore Reserves (months)
• Immediately Available Ore Reserves at 20.6 months still above industry average and continues
to provide operational flexibility
• Development crews deployed to stoping areas earlier in the year now reverting and will be fully back at development by the end of the year
0.0
5.0
10.0
15.0
20.0
25.0
30.0
K3 Rowland Saffy 4B
2015 2016 HY1 2017
Industry benchmark
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Operational Excellence in Processing Continues
10
• Solid processing performance continues
• YTD Concentrator PGM recoveries maintained at an industry leading recovery rate of 86.7%
• The OPM plant commissioned in FY 2016 is running close to design efficiencies. Cycle time optimisation in progress
• Smelter clean-up project still on track to boost full year sales
• Furnaces are running stable with Pyromet furnaces as back-up • Furnace 2 planned taphole repair; no expected impact
on production • At least 500,000 Platinum ounces process capacity for
toll treatment, purchase of concentrate or Joint Venture monetisation
• Toll treatment contract with Jubilee Platinum Plc commenced in March 2017, expecting to deliver 1,000 Platinum ounces per month, once at full production
PGM and underground concentrator recovery rates
85.0%
86.2%
87.2%
89.6%
85.1%
87.0% 87.0% 86.8% 86.7% 86.7%
2013 2014 2015 2016 2017 H1
Instantaneous PGM Recoveries Underground Concentrator Recovery
Smelter Furnaces (One &
Two)
Base Metal Refinery
Precious Metal
Refinery
Ounces (000) Ounces (000)
Ounces (000)
Capacity per annum
1,135 1,242 1,500
Platinum produced in 2016
742 742 742
Capacity utilisation in 2016
65% 60% 49%
Processing capacity
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Bulk Tailings Treatment Project
11
• The project is still on track with commissioning and ramp up to full production planned for FY 2018
• Once at steady-state, the project is expected to deliver the lowest cost ounces in the Lonmin portfolio
• It will produce about 29,000 ounces of Platinum per year or some 55,000 ounces of PGM
• The project is expected to be mined by a contractor over a seven-year period
• Life extension tailings dams being investigated
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FINANCIAL PERFORMANCE BARRIE VAN DER MERWE CHIEF FINANCIAL OFFICER
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Cash Generation
13 Cash generation Q2
173
227 (351)
49
269 (243)
75
-
100
200
300
400
500
600
Opening net cash1 Oct 2016
Cash inflowsfrom sales
Net Cashoutflows
Net cash 31 Dec2016
Cash inflowsfrom sales
Net Cashoutflows
Net cash 31 Mar2017
USD
m
Q1 = Net Outflowc$124m
Q2 = Net Intflowc$26m
FY17 Q1 = Net Outflow (c$124m)
FY16 Q1 = Net Outflow excluding
Rights Issue (c$119m)
FY17 Q2 = Net Inflow (c$26m)
FY16 Q2 = Net Inflow (c$45m)
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Liquidity
14
• Net cash and liquidity improved during second quarter
• Bank debt facilities mature in May 2020
• Impairment charge reducing headroom against tangible net worth covenant
• Auditor’s report and management’s disclosure emphasises uncertainties that could impact on liquidity
Liquidity ($m)
219
322
200 229
203
215
215 218
Dec'15 Sep'16 Dec'16 Mar'17
Gross Cash Undraw Facilities
422
537
415 447
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Cost Performance
15 Committed cost reduction of cR1,8 billion over the two year period ending FY17 (FY15 money terms). The combined reduction up to
March 2017 amounted to cR1,7 billion on track to achieve full year guidance (cR1,3 million FY16 and R0.4 million YTD FY17)
FY16 cost (H1)
Escalation FY16 to
FY15
FY16 cost (H1) (FY15
money terms)
Mining Opencast Mining
Concentrating Smelting & refining
Concentrator ore purchase
Overheads/services/
Other
FY17 Cost (FY15
money terms)
CPI (FY17 6.1% and
FY16 6.5%)
FY17 Cost (H1)
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Unit Cost Performance 8
,51
5kt
7,6
42
kt
53
4o
z
48
6o
z
53
7ko
z
52
2ko
z
54
4ko
z
52
5ko
z
R10
,1m
R9.6
m
R1
,05
0m
R64
2m
$7
7m
$9
1m
16 Negatively impacted by seasonal build up, year-end stocktake and poor production in December and January
10,668
627 111 11,406 3
1,060 (409)
12,059
6,000
7,000
8,000
9,000
10,000
11,000
12,000
13,000
14,000
15,000
16,000
17,000
H1 FY16 CPI @ 6.1% Labour aboveCPI
Incl Contractors
Sub-Total Grade andRecovery
Volume Cost H1 FY17
R/o
z
-6.9% -5.7%
-13.0%
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EBITDA
17
36 (62)
47
4 (18)
(6)
47 (48)
0
(30)
(20)
(10)
-
10
20
30
40
50
60
H1 2016 PGM volume PGM price Base metals PGM Mix Costs (like-for-like)
Stockmovement
FX incltranslation fx
H1 2017
$m
Revenue -$29m
Increase in strong room stock: - Platinum in the vault
increased from 3koz in H1 2016 to 17koz in H1 2017.
- PGMs in the vault increased from 16koz in H1 2016 to 42koz in H1 2017.
FX strengthened from R14.71 at H1 2016 to R13.42 at H1 2017.
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18
Capital Expenditure
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In Conclusion
Following disappointing results in Q1, improvements in recent production puts us in cash positive position for Q2
Cash positive Q2
19
Strong cost management progresses with capex reduction in process Strong cost
management
Delivery on controllables remains essential Maintain liquidity
MACRO ENVIRONMENT
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Market Development Focus
Automotive remains key market for PGMs 21
Jewellery
• We continue to support the PGI focusing on specific initiatives to assist in making a difference in the near to mid term in key markets
• We have increased our support of The Platinum Incubator in South Africa and will focus on assisting the incubator to increase support to SMME’s
Industrial
• Purified Nickel Sulphate: Thakadu, a flagship black industrialist project, has successfully completed a definitive feasibility study for the production of pure nickel sulphate for lithium ion batteries
• 3D Printing of platinum: We are progressing our production of PGM powders and have established a collaborative organisation “Platforum” through which we will invite and support companies who wish to produce 3D printed products using PGMs
Jewellery Investment
• We continue to support the World Platinum Investment Council initiatives for new investment products for Platinum e.g. Mandela Coin
• The Bullion Vault initiative can be accessed via our corporate website
CONCLUSION
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Conclusion
23 23 Decisive action ensures sustainability
Managing cash and liquidity
• Achieved breakeven EBITDA, with 13,000 Platinum ounces more in stock vaults
• Mining production improvement has been sustained since March, with record production and lowest unit cost in March, resulting in Net Cash improving to $75 million from $49 million in first quarter, driving liquidity up to $447 million
Market conditions remain tough
• Decisive action taken to deliver mining improvement, including senior management changes
• Recovery is pleasing, but we can achieve more
• We remain committed to be essentially cash neutral in this low price environment through rigorous and focused management and relentless cost control
• Our step change in management routines will be enhanced with our head office move to Marikana operations
Managed recovery, but we can achieve more
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FY 2017 Guidance
24 24
Thank You
Sales guidance of 650 000 to 680 000 Platinum ounces maintained for the full year
Revising unit cost guidance range from R10,800 to R11,300, to R11,300 to R11,800 per PGM ounce to reflect the weak mining production in the first four months
Reducing full year capital expenditure guidance from R1.8 billion to a range of R1.4 billion to R1.5 billion which includes the R400 million for the Bulk Tailings Treatment Project
Guidance
QUESTIONS?
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APPENDICES
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Marikana Mines Overview
27
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Shaft Lifecycle of Marikana Mines R
eef
Pro
du
ctio
n %
of
Cap
acit
y
Build-up
High Cost & Capital Requirement Low Unit Costs Increased Unit Costs
Generation 3 Generation 2 Generation 1
Rowland MK2
K3 UG2 Sub-Incline Hossy (Stoping Only)
E2
Newman UG2
E1
W1
Steady-state Wind down
28
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
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Line chart colour 171
228
245
204
255
204
255
255
000
250
191
143
178
161
199
224
226
241
More colours Main colours Delivering on Our Business Plan: Reducing High-Cost Production on Track
29
Shafts Status
Ge
ne
rati
on
2
Ge
n 3
G
en
era
tio
n 1
Shaf
ts o
f th
e f
utu
re
76%
H1 2017 H1 2016
79%
K4 N/A • Long term option – remaining on care and maintenance - -
K3 • Union relationships addressed, improvement affected. Best March
production in 29 months. H1 production of 1,318 kt, down from 1,173 kt
1,173 1,318
Rowland • Steadfast management and improved safety performance 876 807
Saffy • Steady state. All-time record production in March 991 990
4B • Adverse geological conditions 682 763
Total Gen 2 3,721 3,878
E2, E3 (incl. JV 100%)
• Showing progress after management changes and turnaround plans 400 442
E1,W1 • Under contract mining – annual re-evaluation 147 158
Hossy • Production Flat. Closure to care and maintenance planned end FY17 330 334
Newman • Lonmin production stopped Oct 2016, contractor production
stopped March 2017 – on care & maintenance 50 245
1B • 1B – Closed Oct 2015. On care and maintenance 0 6
Open cast • UG2 low cost ounces 38 10
Total Gen 1/OC 965 1,195
Focus
Tonnes mined (kt)
Generation 2 contribution to total tonnes mined
4%
19%
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
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Table alternative highlight-dark
Line chart colour 171
228
245
204
255
204
255
255
000
250
191
143
178
161
199
224
226
241
More colours Main colours
Summary of Production Statistics
30
6 months to
31 March
2017
6 months to
31 March
2016
Tonnes mined K3 shaft kt 1 173 1 318
Rowland shaft kt 876 807
Saffy shaft kt 991 990
4B shaft kt 682 763
Generation 2 kt 3 721 3 878
1B shaft kt 0 6
Hossy shaft kt 330 334
Newman shaft kt 50 245
W1 shaft kt 72 88
East 1 shaft kt 75 70
East 2 shaft kt 132 154
East 3 shaft kt 39 23
Pandora (100%)2 kt 229 265
Generation 1 kt 927 1 185
Underground kt 4 649 5 063
Opencast kt 38 10
Total Tonnes Mined (100%) kt 4 686 5 073
Tonnes milled Underground kt 4 310 4 725
Milled head grade Total g/t 4.56 4.55
Concentrator recovery rate Underground % 86.8 86.8
K3 shaft R/T (1 032) (868)
4B/1B shaft R/T (834) (724)
Rowland shaft R/T (938) (954)
Saffy shaft R/T (887) (847)
Generation 2 R/T (935) (852)
Hossy shaft R/T (950) (965)
Newman shaft R/T (1 783) (852)
East 1 shaft R/T (899) (1 010)
East 2 shaft R/T (1 130) (928)
East 3 shaft & ore purchases R/T (920) (921)
W1 shaft R/T (801) (914)
Generation 1 R/T (997) (925)
Total Underground R/T (947) (869)
Operating Statistics
Shaft head unit cost - undergroud
operations excluding K4
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
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Line chart colour 171
228
245
204
255
204
255
255
000
250
191
143
178
161
199
224
226
241
More colours Main colours
Shaft Head Cost per Tonne
K3 4B Row Saf Gen 2 Hos New W1 E1 E2 E3 Comb Gen 1Under-ground
H1 2017 1,032 834 938 887 935 950 1,783 801 899 1,130 920 997 951
H1 2016 868 724 954 847 852 965 852 914 1,010 928 921 925 874
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
R/t
on
ne
Shaft Head Cost per Tonne
31
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
Table alternative highlight-light
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Line chart colour 171
228
245
204
255
204
255
255
000
250
191
143
178
161
199
224
226
241
More colours Main colours
Summary of Financial Results
32
Units 2017 2016 Abs %
Platinum sales koz 307 362 (55) (15.2)%
$ Basket Price $/oz 797 736 61 8.3 %
R Basket Price R/oz 10,852 10,962 (110) (1.0)%
Revenue $m 486 515 (29) (5.6)%
EBITDA $m 0 36 (36) (100.0)%
Depreciation and amortisation $m (35) (51) 16 31.4 %
Impairment $m (146) 0 (146) (100.0)%6
Operating Loss $m (181) (15) (166) > 1,000%
Basic LPS Cents (64.4) (1.8) (62.6) > 1,000%
6 months to 31 Mar Variance
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
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Line chart colour 171
228
245
204
255
204
255
255
000
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191
143
178
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199
224
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Costs
2017 2016
Revenue (reported) $m 486 515
Metal stock movement (like-for-like) $m 10 (37)
Costs - PGM Operations Rm (6,818) (6,573)
Like-for-like FX R/$ 14.82 14.82
Costs (like-for-like SA) $m (460) (443)
Costs (like-for-like RoW) $m (7) (17)
Costs (like-for-like) $m (467) (460)
Exchange (total) $m (29) 18
Cost of sales (reported) $m (487) (479)
EBITDA $m (0) 36
Depreciation and amortisation $m (35) (51)
Impairment $m (146) 0
Operaring Profit/(Loss) $m (181) (15)
Cost of production (PGM operations) R/oz 12,059 10,668
6 months to March
Note: FY16 Costs were restated with Other costs previously reported as “Special costs” such as Restructuring and Reorganisation costs and Accelerated vesting of the Share-Based payment expenses per IFRS 2 33
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
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Line chart colour 171
228
245
204
255
204
255
255
000
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191
143
178
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224
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Unit Cost of Production
34
Oct Nov Dec Q1 Jan Feb March Q2 H1
Rand per Ounce 12,897 10,605 16,056 12,296 15,979 11,800 9,695 11,836 12,059
6,000
8,000
10,000
12,000
14,000
16,000
18,000
Ran
d p
er P
GM
ou
nce 945 kt
895 kt
490 kt
2330 kt
584 kt
794 kt
978 kt
2356 kt 4686 kt
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
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Line chart colour 171
228
245
204
255
204
255
255
000
250
191
143
178
161
199
224
226
241
More colours Main colours Consolidated Income Statement for the period ended 31 March 2017
6 months to
31 March
2017
6 months to
31 March
2016
Total Total
$m $m
Revenue 486 515
EBITDA - 36
Depreciation and amortisation (35) (51)
Impairment (146) -
Operating loss (181) (15)
Profit on disposal of joint venture - -
Finance income 19 33
Finance expenses (34) (37)
Share of loss of equity accounted investment (3) (2)
Loss before taxation (199) (21)
Income tax (charge) / credit (15) 15
Loss for the period (214) (6)
Attributable to:
- Equity shareholders of Lonmin Plc (182) (4)
- Non-controlling interests (32) (2)
Loss per share (64.4)c (1.8)c
Diluted loss per share (64.4)c (1.8)c
35
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
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Line chart colour 171
228
245
204
255
204
255
255
000
250
191
143
178
161
199
224
226
241
More colours Main colours Consolidated Statement of Financial Position as at 31 March 2017
As at As at
31 March 31 March
2017 2016
$m $m
Non-current assets
Intangible assets 63 94
Property, plant and equipment 1,033 1,455
Equity accounted investment 21 25
Royalty prepayment 37 38
Other financial assets 30 18
Deferred tax assets - 8
1,184 1,638
Current assets
Inventories 276 243
Trade and other receivables 59 85
Other financial assets 61 95
Cash and cash equivalents 229 264
625 687
Current liabilities
Trade and other payables (153) (143)
Deferred revenue - (14)
Tax payable - (1)
(153) (158)
Net current assets 472 529
Non-current liabilities
Interest bearing loans and borrowings (154) (150)
Deferred tax liabilities (45) -
Deferred royalty payment (1) (3)
Deferred revenue (33) -
Provisions (134) (119)
(367) (272)
Net assets 1,289 1,895
Capital and reserves
Share capital 586 586
Share premium 1,816 1,816
Other reserves 88 88
Accumulated loss (1,002) (484)
Attributable to equity shareholders of Lonmin Plc 1,488 2,006
Attributable to non-controlling interests (199) (111)
Total equity 1,289 1,895
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
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Line chart colour 171
228
245
204
255
204
255
255
000
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191
143
178
161
199
224
226
241
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Consolidated Statement of Cash Flow 6 months to 6 months to
31 March 31 March
2017 2016
$m $m
Loss for the period (214) (6)
Taxation 15 (15)
Share of loss of equity accounted investment 3 2
Finance income (19) (33)
Finance expenses 34 37
Profit on disposal of joint venture - -
Non-cash movement on deferred revenue (2) (9)
Depreciation and amortisation 35 51
Impairment 146 -
Change in inventories (31) 38
Change in trade and other receivables 8 (11)
Change in trade and other payables (40) (65)
Change in provisions 2 (47)
Deferred revenue received 26 -
Share-based payments - 15
Other movements (1) -
Cash (outflow) / inflow from operations (38) (43)
Interest received 3 5
Interest and bank fees paid (9) (16)
Tax paid (4) -
Cash (outflow) / inflow from operating activities (48) (54)
Cash flow from investing activities
Contribution to joint venture (1) (2)
Proceeds on disposal of joint venture - -
Additions to other financial assets (8) -
Purchase of property, plant and equipment (44) (27)
Purchase of intangible assets (1) -
Cash used in investing activities (54) (29)
Cash flow from financing activities
Repayment of current borrowings - (505)
Proceeds from non-current borrowings 4 150
Proceeds from equity issuance - 395
Costs of issuing shares - (27)
Profit on forward exchange contracts on equity issuance - 5
Cash inflow from financing activities 4 18
Decrease in cash and cash equivalents (98) (65)
Opening cash and cash equivalents 323 320
Effect of foreign exchange rate changes 4 9
Closing cash and cash equivalents 229 264
37
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
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Line chart colour 171
228
245
204
255
204
255
255
000
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191
143
178
161
199
224
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241
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Disclaimer
This presentation, which is personal to the recipient, has been issued by Lonmin. This presentation includes forward-looking statements. All statements other than statements of historical fact included in this announcement, including without limitation those regarding Lonmin's plans, objectives and expected performance, are forward-looking statements. Lonmin has based these forward-looking statements on its current expectations and projections about future events, including numerous assumptions regarding its present and future business strategies, operations, and the environment in which it will operate in the future. Forward-looking statements generally can be identified by the use of forward-looking terminology such as 'ambition', 'may', 'will', 'could', 'would', 'expect', 'intend', 'estimate', 'anticipate', 'believe', 'plan', 'seek' or 'continue', or negative forms or variations of similar terminology. Such forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors related to Lonmin, including, among other factors: (1) material adverse changes in economic conditions generally or in relevant markets or industries in particular; (2) fluctuations in demand and pricing in the mineral resource industry and fluctuations in exchange rates; (3) future regulatory and legislative actions and conditions affecting Lonmin's operating areas; (4) obtaining and retaining skilled workers and key executives; and (5) acts of war and terrorism. By their nature, forward-looking statements involve risks, uncertainties and assumptions and many relate to factors which are beyond Lonmin‘ control, such as future market conditions and the behaviour of other market participants. Actual results may differ materially from those expressed in forward-looking statements. Given these risks, uncertainties, and assumptions, you are cautioned not to put undue reliance on any forward-looking statements. In addition, the inclusion of such forward-looking statements should under no circumstances be regarded as a representation by Lonmin that Lonmin will achieve any results set out in such statements or that the underlying assumptions used will in fact be the case. Other than as required by applicable law or the applicable rules of any exchange on which Lonmin's securities may be listed, Lonmin has no intention or obligation to update or revise any forward-looking statements included in this presentation after the publication of this presentation. This presentation is for information only and does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase, any shares in Lonmin or any other securities, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied upon in connection with, any contract or investment decision related thereto. Information supplied by host presenters may not be used, referenced or published without the prior written consent of the author of the presentations.
38