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Lonmin warns on sales as takeover drags on

Fri, 10th May 2019 08:45

(Sharecast News) - Lonmin warned annual sales would be at the lower end of expectations on Friday after production fell and the platinum miner was disrupted by delays to its planned takeover. Mining production in the three months to the end of March fell 89.4% to 2.1m tonnes from a year earlier and total platinum production fell 12.3% to 125,803 ounces, Lonmin said in a trading update.As a result, sales this year will be near the bottom of Lonmin's earlier guidance of 640,000 to 670,000 platinum ounces.Annual unit costs will be higher than expected at between 13,600 rand and 14,400 rand per PGM ounce, up from between 12,900 rand and 13,400 rand per PGM ounce.Operating profit for the first six months of 2019 was $70m compared with a loss of $32m a year earlier. The improvement was driven by higher prices and a weaker rand-dollar exchange rate.Lonmin, which has said it is not financially strong enough to weather market turbulence on its own, accepted a £285m bid from South Africa's Sibanye-Stillwater in December. The deal has been held up because of legal proceedings over industrial action at Sibanye-Stillwater's platinum mines.Lonmin said its production would normally pick up in the second half but that operational performance was hit during the first half by low morale and high management turnover caused by its protracted takeover by Sibanye-Stillwater. This affected safety and production, safety stoppages and power outages.Ben Magara, Lonmin's chief executive, said: "Despite the progress made, this does not provide a long-term solution to the capital structure challenges faced by Lonmin, as it is still inadequate to invest in the new projects necessary to avoid shaft closures and job losses and maintain our production profile."The company's available liquidity is also still vulnerable when considering its working capital requirements and continuing exposure to volatile currency and metal markets."He urged shareholders to accept Sibanye-Stillwater's bid at a meeting on 28 May.Lonmin shares fell 1.3% to 64.92p at 0930 BST.

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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

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

5 Feb 2016 09:30

BROKER RATINGS SUMMARY: Barclays Cuts Enterprise Inns To Underweight

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

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

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

29 Jan 2016 10:24

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29 Jan 2016 09:34

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29 Jan 2016 08:15

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28 Jan 2016 08:59

Lonmin Platinum Production Rises As Workforce Reduction Progresses

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

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

22 Jan 2016 16:03

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Lonmin Share News (LMI)

Lonmin warns on sales as takeover drags on

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

South African platinum sector girds for wage talks, pleads poverty

BROKER RATINGS SUMMARY: Barclays Cuts Enterprise Inns To Underweight

Police watchdog recommends charges against South African police commissioner

Friday broker round-up

Broker tips: Lonmin, FirstGroup, Sky

Lonmin upgraded by HSBC on poor share performance

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

LONDON BRIEFING: James Murdoch Back As Chairman Of Sky

Lonmin Platinum Production Rises As Workforce Reduction Progresses

UPDATE 1-Platinum producer Lonmin cuts jobs and costs

Platinum producer Lonmin cuts jobs and costs

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