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Lonmin risks recede along with rand, Liberum reckons

Mon, 10th Sep 2018 12:58

(Sharecast News) - Lonmin is looking a less risky investment than it seemed a few months ago, said broker Liberum on Monday, upgrading the miner to 'hold'.The broker had in May considered the rate of cash burn and that the chance the proposed merger with Sibanye falling apart were too high, downgrading the shares to 'sell'.A 30% devaluation in the South African rand in the last six months, as the emerging markets currency crisis and the confirmation that the country has gone into recession, will benefit Lonmin's cost base as it is predominantly in local terms."Lonmin as result is no longer losing cash for each ounce they produce and should finish the financial year with circa $40m in cash (assuming they have managed to unlock the $47m of PGM ounces in the smelter)."Another factor is the public support from the Public Investment Corporation for the merger, which Liberum said has "derisked the merger substantially, although not entirely", with the Competition and Markets Authority having also approved the deal.Liberum had a 40p target price on the shares and noted that shares trading a 12% discount to the implied bid, "a more a suitable discount for a deal that is still far from certain to complete".
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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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