15 may 2017 - interim results presentation ......resilience in tough operating environment 15 may...

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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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es (

'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

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4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

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11 300

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)

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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

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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%

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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




228

245

204

255

204

255

255

000

250

191

143

178

161

199

224

226

241


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



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




228

245

204

255

204

255

255

000

250

191

143

178

161

199

224

226

241


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




228

245

204

255

204

255

255

000

250

191

143

178

161

199

224

226

241


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




228

245

204

255

204

255

255

000

250

191

143

178

161

199

224

226

241


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




228

245

204

255

204

255

255

000

250

191

143

178

161

199

224

226

241


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




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




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




228

245

204

255

204

255

255

000

250

191

143

178

161

199

224

226

241


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




228

245

204

255

204

255

255

000

250

191

143

178

161

199

224

226

241


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

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