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UBS cuts Lonmin to 'sell' on stretched valuation

Wed, 15th Jun 2016 07:44

(ShareCast News) - UBS downgraded Lonmin to 'sell' from 'neutral' but lifted the price target to 140p from 110p, saying the valuation looks stretched following a strong share price performance.The bank said Lonmin achieved good cost performance in the second quarter of 2016, with unit costs down 3% quarter-on-quarter."This is positive as labour reduction/cost-cutting initiatives start to bear fruit. However, we do not believe this level of performance is sustainable, especially as production declines into FY17/18E, and we expect costs to increase 8-10% per annum (versus company guidance of flat nominal costs)."UBS reckons this will result in Lonmin being free cash flow negative in FY19, even if prices increase as it expects, and is likely to be a disappointment versus consensus.The price target increase comes as the bank now bases it on a mix of EV/EBITDA and net present value - compared to NPV previously - bringing Lonmin in line with the rest of the South African platinum group metals sector.UBS also initiated coverage on the South African line of Lonmin, at 'sell' with a ZAR30 price target.
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29 Jun 2018 15:49

Lonmin To Sell 50% Stake In Petrozim Line For USD14.8 Million

LONDON (Alliance News) - Lonmin PLC said Friday that it will sell its 50% stake in Petrozim Line Ltd to the National Oil Infrastructure Co of Zimbabwe Ltd for USD14.8 million.In addition,

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31 May 2018 12:49

Sibanye Remains Convinced Of Lonmin Buy Benefits As Deal Progresses

LONDON (Alliance News) - Platinum group metals producer Sibanye-Stillwater Ltd on Thursday said its takeover of Lonmin PLC is progressing as planned, as it aimed to reassure investors in light of

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21 May 2018 17:34

LONDON MARKET CLOSE: Stocks Hit Record Highs As Trade Tensions Cool

LONDON (Alliance News) - Stocks in London surged to fresh record highs on Monday as investor sentiment was buoyed by the prospect of a US-China ceasefire as trade tensions between the two global FTSE

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14 May 2018 07:44

LONDON MARKET PRE-OPEN: Centrica Doing Well; Indivior Ends Dispute

LONDON (Alliance News) - Stock prices in London are seen opening marginally lower on Monday as a stronger pound drags the FTSE 100 index, as Centrica reported improved performance in

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16 Mar 2018 08:24

Sibanye-Stillwater Submits Competition Authority Filing For Lonmin Bid

LONDON (Alliance News) - Lonmin PLC said Friday that Sibanye-Stillwater has submitted a filing to South African competition authorities regarding its proposed GBP285 to

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13 Mar 2018 16:42

Lonmin Non-Executive Director Len Konar To Retire From Board

LONDON (Alliance News) - Lonmin PLC said Tuesday that Non-Executive Director Len Konar has decided to retire to pursue an international opportunity.Konar has been a of

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8 Mar 2018 15:40

UK Shareholder Meetings Calendar - Next 7 Days

Friday 9 MarchArden PartnersMonday 12 Marchno events 13 Commodities Income Investment

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27 Jan 2017 14:09

Friday broker round-up

(ShareCast News) - Diageo: Berenberg reiterates buy with a target price of 2430p. Royal Dutch Shell A: HSBC reiterates buy, 2600p target. Vodafone: Deutsche Bank reiterates buy with a 285p target. Anglo American: UBS reiterates neutral with a 1250p target. Easyjet: Deutsche Bank reiterates hold w

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26 Jan 2017 12:49

Lonmin reports lower output as protesters demand compensation

* Share price falls sharply * Analysts doubt Lonmin's ability to deliver on sales guidance * Protest at London AGM demands compensation By Zandi Shabalala LONDON, Jan 26 (Reuters) - Lonmin reported weaker than expected output on Thursday, causing analysts to raise doubts o

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19 Jan 2017 16:18

UK Shareholder Meetings Calendar - Next 7 Days

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9 Jan 2017 17:00

Monday broker round-up

(ShareCast News) - Reckitt Benckiser: Berenberg reiterates hold with a target price of 7300p. EnQuest: Jefferies upgrades to buy with a 64p target. Booker: HSBC stays at buy with a 220p target. Anglo American: Barclays reiterates overweight with a 350p target. ICAP: HSBC upgrades to buy with a 52

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7 Jan 2017 21:23

RPT-UPDATE 2-Zuma's ex-wife given boost in South Africa leadership race

(Repeats to additional subscribers) * ANC women's league backs Dlamini-Zuma as party leader * Party to pick successor to President Zuma in December * Dlamini-Zuma is Zuma's ex-wife, African Union chair * Vice President Ramaphosa expected to be main rival By Joe Brock

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15 Dec 2016 15:17

South Africa's Zuma studying report on suspended police commissioner

JOHANNESBURG, Dec 15 (Reuters) - South Africa's President Jacob Zuma has received the final report submitted by a watchdog investigating allegations of misconduct of the suspended national police commissioner, his office said on Thursday. Zuma launched an investigation into Riah Phiyega's r

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14 Dec 2016 09:32

BROKER RATINGS SUMMARY: Deutsche Bank Cuts Centrica To Sell From Hold

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12 Dec 2016 16:00

Lonmin promises housing plan after S. Africa's Zuma threatens to revoke permit

* Zuma says Lonmin must file compliant plan or risk losing permit * Warning puts pressure on Lonmin to spend on workers' housing By Tiisetso Motsoeneng JOHANNESBURG, Dec 12 (Reuters) - South Africa-focused platinum miner Lonmin is confident of submitting a plan to build workers'

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