By Olivia Kumwenda-Mtambo
CAPE TOWN, Feb 9 (Reuters) - Lonmin will not "shyaway" from a merger or takeover but for now the company wasfocused on its plan to survive tough market conditions, itschief executive said on Tuesday.
"We are continuously looking at options to maximise valuefor our shareholders and all other stakeholders. Should it be ofbenefit to our shareholders and stakeholders it's not somethingwe would shy away from," CEO Ben Magara told Reuters in aninterview at a mining conference in Cape Town.
Magara said the company was for now focused turning cashpositive in a low price environment - which involves closinghigh-cost shaft and cutting jobs.
"That's what I am worrying about. The investors have givenus money and we must deliver. Investors are asking if we aregoing to deliver on this," Magara said.
Hurt by a prolonged 2014 strike, rising costs and a plungingplatinum price, Lonmin raised $400 million through a cash callin December.
"I have no doubt that there will be pressure on us when wefinally start making money. Will we go and put it in a projectfirst or will we pay investors?" Magara said.
"I think it's important that investors will get their moneyback first. They deserve it."
Lonmin has said it will continue to review its services andreduce costs, mainly through cutting jobs, as the slide in theprice of its main commodity bites further.
The price of platinum has fallen about 30 percentyear-on-year, forcing miners to sell assets and cut productionand jobs. Around two-thirds of the industry, whose mines weredamaged by the five-month strike in 2014, are making losses. (Editing by James Macharia)
