UPDATE 1-Higher stocks give Lonmin breathing space during strike -CEO

(adds details on sale, production, comments)

By Silvia Antonioli and Ed Stoddard

CAPE TOWN, Feb 4 (Reuters) - Higher stocks than usual are helping South African platinum producer Lonmin LMI.L to cope with mining strikes that are paralising its production, its chief executive said on Tuesday.

Lonmin, the world's third-biggest platinum producer, is losing about 3,100 ounces of refined output per day because of the strike over wages, which started almost two weeks ago.

"We have been very fortunate in the sense that the performance of 2013 gave us some breathing space," Chief Executive Ben Magara told Reuters.

"In terms of our inventories, in the first quarter we have produced more than we have sold because we really wanted to just make sure we had some arrangements to meet our customers' (demand) and make sure that relationship is sustained."

In the three months to Dec. 31, the first quarter of its financial year, Lonmin's refined production increased by 45 percent year on year to 196,249 saleable platinum ounces.

Sales for the quarter, however, were up only 24 percent to 134,804 ounces.

"In general, at the end of the year you empty everything ... but last year we ended up with some reasonable stocks, so I think we are in a much better position than we were before," Magara added.

(Editing by David Evans and David Goodman)

((silvia.antonioli@thomsonreuters.com)(+44)(0)(20 7542 1755)(Reuters Messaging: silvia.antonioli.reuters.com@reuters.net))

Keywords: AFRICA MINING/