Platinum miner Lonmin reported that more than 80% of miners turned up for work at its Marikana operations after workers called off their strike late on Tuesday following a settlement.
The accord, however, will be quite costly for the company, prompting another fall in its share price. Following the Marikana agreement Credit Suisse has this downgraded its 2012/13 earnings before interest, taxes, depreciation and amortisation (EBITDA) forecasts from $218m to $95m in 2012 and from $195m to $29m in 2013.
"A positive equity case on Lonmin in our view could be made if the company can grow to 950koz per year. which would require capex of $450m at a minimum." That, however, would require an equity raise of at least $500m, together with some debt, or $1bn should all its debt be eliminated, the Credit Suisse scribblers suggest.
Meanwhile, shares were down at embattled pubs group Mitchells & Butlers (M&B) after it announced that another director is on his bike, with Doug Evans revealing his intention to take up a role as company secretary and general counsel at recruitment agency Hays.
FTSE 250 - Risers
Ruspetro (RPO) 109.00p +4.81%
Grainger (GRI) 111.00p +4.42%
Home Retail Group (HOME) 93.30p +4.07%
Halfords Group (HFD) 269.50p +3.85%
Imagination Technologies Group (IMG) 528.00p +3.23%
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