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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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8 Feb 2016 13:51

UPDATE 1-South African platinum sector girds for wage talks, pleads poverty

* Amplats, Impala and Lonmin gear up for talks in June * Platinum price down around 30 pct year-on-year * Union says aware sector struggling but will fight for workers (Adds AMCU comment) By Ed Stoddard and Zandi Shabalala CAPE TOWN, Feb 8 (Reuters) - The world's top pla

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8 Feb 2016 12:30

South African platinum sector girds for wage talks, pleads poverty

* Amplats, Impala and Lonmin gear up for talks in June * Platinum price down around 30 pct year-on-year By Ed Stoddard and Zandi Shabalala CAPE TOWN, Feb 8 (Reuters) - The world's top platinum producers, which are losing money as costs soar and prices sink, are pleading poverty

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5 Feb 2016 09:30

BROKER RATINGS SUMMARY: Barclays Cuts Enterprise Inns To Underweight

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2 Feb 2016 17:28

Police watchdog recommends charges against South African police commissioner

JOHANNESBURG, Feb 2 (Reuters) - South Africa's police watchdog has recommended that suspended national commissioner Riah Phiyega should face criminal charges for defeating the ends of justice, local media reported on Tuesday. Phiyega, the top-ranking police official when police killed 34 st

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29 Jan 2016 16:47

Friday broker round-up

(ShareCast News) - Experian: Exane BNP Paribas upgrades to outperform with a 1350p target. Mitchells & Butlers: JP Morgan downgrades to neutral with 370p target, down from 420p Dcc: Exane BNP Paribas promotes to outperform with 6200p target. Lonmin: HSBC upgrades to buy, target 76p; Deutsche reite

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29 Jan 2016 12:13

Broker tips: Lonmin, FirstGroup, Sky

(ShareCast News) - After a poor share price performance, HSBC has upgraded Lonmin from 'hold' to 'buy' but has cut its target price from 135p to 76p. The company's first quarter production report out on Thursday was mixed, according to the investment bank. "Safety stoppages impeded production momen

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29 Jan 2016 10:24

Lonmin upgraded by HSBC on poor share performance

(ShareCast News) - After a poor share price performance, HSBC has upgraded Lonmin from 'hold' to 'buy' but has cut its target price from 135p to 76p. The company's first quarter production report out on Thursday was mixed, according to the investment bank. "Safety stoppages impeded production momen

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29 Jan 2016 09:34

BROKER RATINGS SUMMARY: Shore Capital Upgrades Sky To Buy From Hold

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29 Jan 2016 08:15

LONDON BRIEFING: James Murdoch Back As Chairman Of Sky

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28 Jan 2016 08:59

Lonmin Platinum Production Rises As Workforce Reduction Progresses

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28 Jan 2016 08:39

UPDATE 1-Platinum producer Lonmin cuts jobs and costs

(Adds detail) JOHANNESBURG, Jan 28 (Reuters) - Lonmin said on Thursday it would continue to review its services and reduce costs, mainly through job cuts, as the sliding price of platinum bites further. The company said labour costs fell 194 million rand ($11.8 million) in the last th

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28 Jan 2016 07:56

Platinum producer Lonmin cuts jobs and costs

JOHANNESBURG, Jan 28 (Reuters) - Platinum producer Lonmin will continue to review its services and reduce costs, mainly through cutting jobs, as the slide in the price of its main commodity bites further. The company said labour costs fell 194 million rand ($11.8 million) in the last three

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22 Jan 2016 16:03

AGM, EGM Calendar - Week Ahead

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8 Jan 2016 16:20

DIRECTOR DEALINGS: Lonmin Board Participates In Rights Issue (ALLISS)

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18 Dec 2015 14:08

Lonmin Completes Share Consolidation Following Huge Rights Issue (ALLISS)

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