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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."

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15 Jun 2016 15:32

Wednesday broker round-up

(ShareCast News) - Arrow Global Group: Goldman Sachs reiterates buy with a target price of 340p. Crest Nicholson: JP Morgan keeps at overweight with a 700p target. Shire: Exane BNP Paribas stays at outperform with a target price of 5700p and Jefferies keeps at buy with a target price of 5500p. Woo

15 Jun 2016 11:02

Broker tips: Wood Group, Jimmy Choo, Lonmin

(ShareCast News) - Shares in oil and gas services company Wood Group rose on Wednesday as Jefferies initiated its rating on the stock at 'buy'. "The company, in our view, has executed a far more coherent growth/mergers and acquisitions strategy compared to UK Service peers, Amec Foster Wheeler and P

15 Jun 2016 08:30

BROKER RATINGS SUMMARY: Go-Ahead Raised By JPMorgan, Cut By Investec

15 Jun 2016 07:44

UBS cuts Lonmin to 'sell' on stretched valuation

(ShareCast News) - UBS downgraded Lonmin to 'sell' from 'neutral' but lifted the price target to 140p from 110p, saying the valuation looks stretched following a strong share price performance. The bank said Lonmin achieved good cost performance in the second quarter of 2016, with unit costs down 3%

15 Jun 2016 07:18

LONDON BRIEFING: Hollywood Bowl Lifts Some Brexit Gloom With IPO Plan

7 Jun 2016 15:56

UPDATE 3-Northam Platinum workers say will not return to work due to safety concerns

* South Africa platinum sector has been marred by labour violence * NUM says six members have been murdered at Northam * Company urges workers to resume after output suspended Monday * Sector is struggling with depressed prices, rising costs (Adds AMCU comment, Northam urges w

16 May 2016 16:02

LONDON MARKET CLOSE: Miners Stand Out As FTSE 100 Starts Week Higher

16 May 2016 15:43

Britain's FTSE finishes higher on stronger miners

(ADVISORY- Reuters plans to replace intra-day European and UK stock market reports with a Live Markets blog on Eikon - see cpurl://apps.cp./cms/?pageId=livemarkets for site in development. See the bottom of the report for more details) * Blue-chip FTSE 100 index ends 0.2 pct higher *

16 May 2016 15:12

Britain's FTSE index edges higher on stronger miners

16 May 2016 12:09

South Africa's AMCU union to set wage demands for platinum sector

JOHANNESBURG, May 16 (Reuters) - Members of South Africa's Association of Mineworkers and Construction Union (AMCU) will on Thursday begin meetings to decide on pay demands for platinum companies as wage talks loom, a spokesman said on Monday. Manzini Zungu said the union's branches would p

16 May 2016 11:13

EXTRA: Lonmin Soars As Loss Narrows And Guidance Remains Intact

16 May 2016 10:59

LONDON MARKET MIDDAY: Miners Supported By Chinese Stimulus Hopes

16 May 2016 09:35

WINNERS & LOSERS SUMMARY: Markets Unimpressed By British Land Earnings

16 May 2016 08:22

BUZZ-Lonmin: Soars as H1 reassures investors

** Platinum miner Lonmin's shares up 15 pct, top performers on FTSE Small Cap index, after reporting H1 core profit of $36 mln vs $6 mln loss a year earlier ** Co says cost-cutting ahead of schedule, adds now in net cash position vs net debt at Sept. 30 ** "The results reflect conside

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