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Lonmin reduces H1 loss, advances business plan delivery

Mon, 16th May 2016 12:58

(ShareCast News) - South African miner Lonmin has flagged significant progress in the delivery of its business plan as it posted a much-reduced H1 pretax loss of $21m, from a loss of $118m.The metals digger mined a total of 5.1m tonnes in the six months to 31 March, of which 76.6% was from core Generation 2 shafts. Generation 1 shafts production of 1.2m tonnes, down 27.7%, and in line with the company's promise to cut high-cost production in an oversupplied market."These results reflect the positive momentum in Lonmin, we have delivered on our promise to restructure and cut high-cost production in this oversupplied market while simultaneously reducing costs and improving cash flows," said CEO Ben Magara in a statement."Quarter on quarter, Lonmin has reduced unit costs to R10,390 per PGM ounce and improved the net cash to $114m, thus delivering on our promise at the time of the Rights Issue to be cash positive after capital in this subdued PGM pricing environment."There is still a lot of hard work ahead as we squeeze out more costs and drive operational improvements and our key risks remain safety and its related stoppages and relationships. Lonmin has long life, shallow mining assets and unrivalled processing expertise and an invaluable mine to market business," Megara said.Refined platinum production totalled 348,885 oz in the half, up 33.0% or 86,582 oz on the year. Processing throughput in the comparative period was hurt by smelter stoppages in December 2014.Platinum sales of 361,882 oz were up 95,942 oz or 36.1% on the year-ago same period when processing throughput was constrained.Shore Capital mining analyst Yuen Low said Lonmin's FY sales guidance appeared achievable, noting the company had reiterated its FY sales guidance."Capex guidance was reduced further, to USD105m, from USD132m. The sales guidance appears do-able, assuming no production hiccups, but there is clearly still some work to do on cost,(which is essentially a case of running to keep still," Low said in a statement."All in all, the good ship Lonmin is showing signs of gradually being turned around, but it will be heavily dependent on having favourable PGM price and FX winds in its sails in order to go anywhere fast."

More News

19 Nov 2015 00:00

Lonmin shareholders to vote on cut-price rescue rights issue

By Olivia Kumwenda-Mtambo JOHANNESBURG, Nov 19 (Reuters) - Lonmin shareholders will on Thursday decide whether to approve a deeply-discounted $407 million share issue, as the beleaguered platinum producer seeks cash to stay afloat. Battered by strikes, rising costs and weak platinum p

17 Nov 2015 09:53

BROKER RATINGS SUMMARY: Citigroup Says Buy Tesco, Sell Morrisons

12 Nov 2015 16:25

AGM, EGM Calendar - Week Ahead

11 Nov 2015 15:55

As Lonmin fights for survival, miners move to cash in and quit

* Hit with losses, Lonmin striving to stay afloat * Seeking $407 mln in massively-discounted share issue * Aims to cut 6,000 jobs by next year to cut costs * So far more than 3,000 workers have left voluntarily By Olivia Kumwenda-Mtambo MARIKANA, South Africa, Nov 11

10 Nov 2015 14:38

Lonmin tumbles as investors run for the exit ahead of rights issue

(ShareCast News) - Shares in beleaguered platinum miner Lonmin tumbled for the second day in a row as investors rushed for the exits ahead of a highly-discounted rights issue. Lonmin said on Monday it would launch a $407m (£270m) rights issue, which represents a 94% discount to the company's share p

9 Nov 2015 11:50

London midday: FTSE little changed as investors digest US rate expectations

(ShareCast News) - Housebuilders were the standout losers on the FTSE 100 after after Friday´s much stronger-than-expected US jobs report for October stoked speculation of rising interest rates worldwide. At midday, the FTSE 100 was off by just 0.69 points or 0.01% to 6,353.11. The latest US non-fa

9 Nov 2015 10:13

Lonmin launches rights issue at 94% discount as losses widen

(ShareCast News) - Beleaguered platinum miner Lonmin has launched a $407m (£270m) rights issue - a 94% discount to its share price last week - as it struggles to keep afloat amid declining platinum prices and rising costs. Shareholders will be able to subscribe for 46 new shares for each Lonmin shar

9 Nov 2015 09:30

UPDATE 2-Lonmin offers 94 pct discount on crucial rights issue

* Lonmin to sell 27 billion new shares * Rights issue priced at 1 pence a share * Full-year pre-tax loss widens to $2.26 bln (Adds CEO and analysts comments, shares, results) By Olivia Kumwenda-Mtambo JOHANNESBURG, Nov 9 (Reuters) - Platinum producer Lonmin priced its

9 Nov 2015 08:30

London open: Financials in the lead, homebuilders move lower

(ShareCast News) - Financials were leading gains on the Footsie early on Monday, with utilities and homebuilders again bearing the brunt of the selling pressure on the top flight index after Friday´s much stronger-than-expected US jobs report for October. The FTSE 100 was trading up by 0.33% to 6,37

9 Nov 2015 08:22

UPDATE: Lonmin Launches Rights Issue As Loss Significantly Widens (ALLISS)

9 Nov 2015 07:49

Lonmin Launches Large, Heavily Discounted Rights Issue (ALLISS)

9 Nov 2015 07:35

BUZZ-Lonmin shares soar after company offers 94 pct discount on right's issue

** Lonmin's Johannesburg-listed shares up more than 13 pct. ** Offers 94 pct discount at right's issue. ** Mining firm's $407 mln rights issue puts 27 billion new shares on offer. ** Lonmin said it would sell 27 billion shares at 1.00 pence each to its shareholders, compared to

9 Nov 2015 07:29

Lonmin prices rights issue at 1 pence a share

JOHANNESBURG, Nov 9 (Reuters) - Platinum producer Lonmin on Monday priced its $407 million rights issue at a 94 percent discount as the firm fights for survival in the face of depressed commodity prices. Lonmin said it would sell 27 billion shares at 1.00 pence each to its shareholders, c

5 Nov 2015 09:38

Thursday broker round-up

(ShareCast News) - Standard Chartered: Macquarie downgrades to underperform. Target price: 550.00p. Quarto Group Inc: Northland Capital Partners initiates new coverage with a buy, sets target price at 350.00p. Howden Joinery Group: N+1 Singer upgrades to buy. Sabmiller: Societe Generale downgrades

4 Nov 2015 13:09

UPDATE 2-Lonmin faces collapse if shareholders reject $400 mln cash call

* Lonmin says rights issue must be backed if company to survive * Company could go under between December and May 2016 (Adds analyst comment, detail) By Zandi Shabalala JOHANNESBURG, Nov 4 (Reuters) - Lonmin , world's No.3 platinum miner, urged shareholders to approve a $400 m

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