Lonmin Q1 platinum sales fall

LONDON (Reuters) - Lonmin (LMI.L), the world's third-biggest platinum producer, said platinum sales fell 13.6 percent in its first quarter as refined output of the metal declined.

Platinum sales in the quarter to end December fell to 109,044 ounces from 126,202 ounces, the company said, adding that the figure supports its 2010 sales guidance of 700,000 ounces.

It also reiterated its cost guidance for the year.

Refined platinum production dropped 16.7 percent to 110,786 ounces.

In November, the group said it aimed for refined platinum production to rise gradually to 850,000 ounces by 2013 from 700,000 ounces in the current financial year to end September to meet a supply deficit.

The spot price of platinum -- mainly used in jewellery and in catalysts to clean pollution from vehicle exhausts -- jumped almost 60 percent in 2009, but is still well below the peak of $2,290 an ounce touched in 2008.

Platinum and palladium are poised to outperform other precious metals this year and next, with a new wave of investor demand boosting prices in anticipation of increased industrial use, a Reuters poll showed.

(Reporting by Julie Crust; editing by James Davey)