* Platinum metal in concentrate up 3.5 percent year-on-year
* Refined platinum production up 24.3 percent
* On track to hit sales target of 750,000 ounces
* Says current stoppage rate would hit sales, costs (Adds detail, comment, background)
LONDON, Jan 26 (Reuters) - Lonmin (Berlin: LRH.BE - news) , the world's third-largest platinum producer, lost 177,000 tonnes production to safety stoppages in its first quarter, more than eight times the level of a year earlier, and said current trends could threaten full-year targets.
The South African platinum sector has seen output hit by increased safety stoppages, with several producers saying reviews and snap inspections as part of a government drive to cut accident rates were hitting output.
Lonmin said on Thursday an uncharacteristically high level of safety inspections increased the safety risk as they interrupted operating momentum, adding it hoped to work with the government find a "more appropriate mechanism".
"Our production performance to date still supports our sales guidance for the current year of 750,000 ounces of platinum," the miner said. "However platinum sales and unit costs will be adversely impacted should the current trend of production losses from safety persist."
Lonmin said the number of days to have a safety stoppage -- or section 54 -- lifted also increased to five days from two.
Anglo American (Berlin: NGLB.BE - news) 's Anglo Platinum (Berlin: RPHA.BE - news) unit said last week that 2011 profit likely fell by about a third, due to a black empowerment deal but also a high number of safety stoppages and higher costs for labour and power.
While Lonmin's underground tonnes mined dipped in its first quarter to end-December, stockpiled ore meant platinum metal in concentrate production was still up 3.5 percent, with refined platinum production up 24.3 percent.
Lonmin said quarterly platinum sales rose 39.8 percent to 92,863 ounces, compared with a year-earlier period hit by bad weather, while total platinum group metals (PGM) sales were up 2.9 percent to 189,590 ounces.
Lonmin said the average price it received for platinum dipped 3.3 percent to $1,136 per ounce. Spot platinum prices , which fell over 20 percent last year, are currently off December's lows and trading around $1,577 per ounce.
Lonmin shares were up 4.2 percent at 1030 GMT, outperforming a 3.6 percent rise across the broader sector, as several analysts pointed to expected downgrades to the miner's key sales target but also to production numbers that compared well with rival Anglo Platinum. (Reporting by Clara Ferreira-Marques; Editing by Kate Kelland and Dan Lalor)
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