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Lonmin upgraded by HSBC on poor share performance

Fri, 29th Jan 2016 10:24

(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 momentum at the key Generation 2 shafts, but the processing division performed well, drawing down ore and concentrate inventory in the period. Although mined platinum volumes of 158koz were 16% lower y-o-y, refined volumes climbed 23% to 171koz."HSBC said it has updated its valuation to reflect weaker platinum pricing from its Metals Quarterly report out earlier in January."We maintain our 33% discount to our DCF for Lonmin (at a 7.5% real discount rate) to account for valuation risk given high gearing to key driver assumptions. We cut our target price to 76p from 135p. As this implies upside of 32%, we upgrade to Buy from Hold."Shares in Lonmin had dropped 3.25p (5.94%) to 51.5p at 1115 GMT.
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16 Mar 2016 09:37

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16 Mar 2016 08:25

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11 Mar 2016 09:34

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3 Mar 2016 10:44

BUZZ-Lonmin: jumps 15% on clarity over restructuring

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3 Mar 2016 10:34

UPDATE 1-Lonmin says over 5,000 workers leave after restructuring

* Share price shoots up 17 pct, looks overbought at such levels * Lonmin says over 5,000 now cut from headcount, most voluntary (Adds details, spokeswoman) JOHANNESBURG, March 3 (Reuters) - South African-focused platinum producer Lonmin said on Thursday it had trimmed its workforce

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3 Mar 2016 10:03

Lonmin says over 5,000 workers leave after restructuring

JOHANNESBURG, March 3 (Reuters) - South African-focused platinum producer Lonmin said on Thursday it had trimmed its workforce by over 5,000 in a restructuring triggered by depressed prices. There has been some confusion over the process after the Association of Mineworkers and Constructio

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2 Mar 2016 10:15

RPT-South Africa's AMCU union says fewer jobs to be lost at Lonmin after negotiations

(Repeats to more subscribers with no change to text) JOHANNESBURG, March 2 (Reuters) - South Africa's Association of Mineworkers and Construction Union (AMCU) said on Wednesday fewer jobs would be lost at platinum producer Lonmin following talks with the company. The union did not i

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2 Mar 2016 09:55

South Africa's AMCU union says fewer jobs to be lost at Lonmin after negotiations

JOHANNESBURG, March 2 (Reuters) - South Africa's Association of Mineworkers and Construction Union (AMCU) said on Wednesday fewer jobs would be lost at platinum producer Lonmin following talks with the company. The union did not immediately give a figure of workers fired by the firm which

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29 Feb 2016 09:34

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15 Feb 2016 14:54

Job cuts to escalate in South African mines as global economy slows

* Political, union pressure on companies to halt job losses * Ruling party worried job cuts could affect local elections * Weaker rand offers some support to mining firms By Zandi Shabalala CAPE TOWN, Feb 15 (Reuters) - Job losses in South Africa's mining sector are likely

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9 Feb 2016 17:35

PRESS: Lonmin Focused On Survival But Doesn't Rule Out M&A - Reuters

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9 Feb 2016 12:43

Lonmin CEO says will not shy away from merger or takeover

By Olivia Kumwenda-Mtambo CAPE TOWN, Feb 9 (Reuters) - Lonmin will not "shy away" from a merger or takeover but for now the company was focused on its plan to survive tough market conditions, its chief executive said on Tuesday. "We are continuously looking at options to maximise valu

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9 Feb 2016 10:51

South Africa plans fuel cell plant to boost platinum demand

* Platinum price has tumbled, firms struggling * Govt supporting fuel cell plant to increase demand * Plant likely by 2018 - Isondo Precious Metals CEO By Wendell Roelf CAPE TOWN, Feb 9 (Reuters) - South Africa plans to set up a fuel cell component plant by 2018, the lates

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