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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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14 Dec 2015 08:58

South Africa's PIC lifts stake in Lonmin to just under 30%

(ShareCast News) - The Public Investment Corporation of South Africa has upped its stake in beleaguered platinum miner Lonmin to 29.9% from 7% after it purchased shares in the company's heavily-discounted rights issue. "The Lonmin board and management thank all shareholders and appreciate the valuab

14 Dec 2015 08:37

South Africa's PIC increases stake in platinum miner Lonmin

JOHANNESBURG, Dec 14 (Reuters) - South Africa's Public Investment Corporation (PIC) has increased its stake in platinum producer Lonmin to almost 30 percent after buying more shares via the company's rights issue. The PIC, which manages South African government employee retirement funds, no

13 Dec 2015 19:42

Sunday newspaper round-up: Debenhams, Buy-to-Let boom, Lonmin

(ShareCast News) - Debenhams has watered down the targets its bosses need to hit to receive multimillion-pound paydays, saying the lower hurdles reflect "ongoing challenges in the UK retail sector". The struggling department store chain, whose chief executive resigned in October after a wave of shar

11 Dec 2015 18:08

UPDATE 3-Lonmin shareholders shun crucial $400 mln rights issue

* Lonmin says 71 pct of shares on offer sold * Underwriters to find more buyers or take up shares * Shares fall more than 7 percent (Adds results of rump placing, analyst comment; updates shares) By Olivia Kumwenda-Mtambo JOHANNESBURG, Dec 11 (Reuters) - Platinum produce

11 Dec 2015 16:38

Lonmin Confirms Remaining Shares Under Rights Issue Placed (ALLISS)

11 Dec 2015 09:44

Crucial Lonmin rights issue sees 71% take-up

(ShareCast News) - Beleaguered platinum miner Lonmin reported a 71% take-up of its heavily-discounted $407m (£269m) right issue. The company said on Friday that it had received acceptances in respect of 19bn new shares out of the 27bn it was selling. The shares were priced at 1p each, which is a 94

11 Dec 2015 08:33

Lonmin Sees Lack Of Appetite For Rights Issue Despite Big Discount (ALLISS)

11 Dec 2015 07:28

Lonmin says $400 million rights issue undersubscribed

JOHANNESBURG, Dec 11 (Reuters) - Beleagured platinum producer Lonmin said on Friday its deeply discounted $400 million share issue was undersubscribed with about 71 percent taken up. The company, which is seeking cash to stay afloat, said it had received acceptances for 19 billion new share

10 Dec 2015 14:04

UPDATE 3-Glencore shares jump on debt reduction, spending cuts

* Targets net debt of $18 bln-$19 bln by end 2016 * Trading adjusted earnings seen at $2.5 bln in 2015 * Trading earnings seen at $2.4 bln to $2.7 bln in 2016 * Shares up 12 percent (Adds CEO, CFO comments, updates shares) By Olivia Kumwenda-Mtambo JOHANNESBURG, De

20 Nov 2015 06:55

Lonmin Shareholders Approve USD407 Million Rights Issue (ALLISS)

19 Nov 2015 16:25

UPDATE 3-Lonmin shareholders approve crucial cut-price rights issue

* Lonmin seeks $400 million to survive low prices * Priced the rights issue at 1 pence a share * Majority of shareholders approve the share sale * Concerns over viability of business remain (Adds Old Mutual, Investec stakes) By Atul Prakash and Clara Denina LONDON,

19 Nov 2015 10:56

RPT-Lonmin shareholders provisionally approve rights issue

(Repeats to attach to news alerts) LONDON, Nov 19 (Reuters) - Lonmin shareholders on Thursday provisionally approved the company's proposal to raise $407 million in a share issue. The final results of the votes will be announced later in the day, the company's Chairman Brian Beamish

19 Nov 2015 10:50

Lonmin shareholders provisionally approve rights issue

LONDON, Nov 19 (Reuters) - Lonmin shareholders on Thursday provisionally approved the company's proposal to raise $407 million in a share issue. The final results of the votes will be announced later in the day, the company's Chairman Brian Beamish said after the shareholder meeting in Lo

19 Nov 2015 07:00

RPT-Lonmin shareholders to vote on cut-price rescue rights issue

(Repeats earlier story. No change to text.) 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. Bat

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