Member Info for 100notout

The last thing the Board should be doing now is selling off assets. They should be having discussions with potential lenders. They really are clueless and useless...

With regards to the 'subdued performance by Lonmin shares', they are holding up rather well on your assumptions of shorters out in full force.

If the deal is pulled Rastuss the LMI Board should step down. I don't trust their ability to deal with Froneman. He may intend to purchase some of LMI's assets but if he ends up with them is another story.

Rastuss - SGL are placing more shares so that would mean that LMI holders are being diluted even more. This was not part of the original scheme of arrangements. The LMI Board need to step up for once.

Judging by the trading in LMI this morning one could quite easily think that Froneman has caught a whiff that there is another interested party in LM and the reason for the placing could be an extra sweetener for LMI holdersI. There seems to be a lot of buying in LMI this morning. Something is going on here...

This goes to show that LMI Board should now come out and pull the deal. SGL is a mess... More games from Froneman it seems.

Whatamess -I know that some are shorting Pd and going long Pt. Also Pt is at very low levels and I personally think that it has been driven down by supply/demand factors but it will only take 2% of the gold bulls to switch into Pt and then you will see a proper rise. As I have mentioned before I expect to see this within the next 18 months. When this happens LMI will be a valuable asset and worth considerably more than the current mkt cap... If I can see this I am sure others within the mining industry will be able to see the potential possibilities here...

LMI were priced to go go bankrupt. Then after the SGL bid they have been discounted to the SGL price. The difference since the bid is that SGL have had a torrid time with regards to lots of fatalities, strikes, lawsuits and issues due to their large borrowings. If LMI were not tied into SGL the share price would be markedly higher. I note some institutions like Investec have been building up a stake in LMI recently. I doubt the current Board have got the gumption or acumen to renegotiate terms with Froneman. In my view LMI is a sitting duck for another offer...

With regards to another bid I very much doubt the potential bidder would be too bothered about the views of the current Board. The Board have given their irrevocable undertakings to accept the SGL offer but in al fairness as a group they hardly own a great deal of shares and the shares they do have are mainly ones that have been awarded rather than purchased. After their track record I really don't think that investors will be swayed by their views as they have performed poorly. If a potential offeror would bid £1.50 cash they would likely be more successful than SGL. SGL would then most probably have to issue at least 2 SGL shares rather than the current joke of an offer...

With rising Pt prices the last thing LMI should be doing is making redundancies...

There is still a lot of negativity on here which is quite surprising in the wake of Pt rising. The offer from SGL doesn't reflect a fair price and I doubt they will be successful getting this deal through so all this talk is irrelevant. The important factor right now is the price of Pt. Rastuss - You did comment some months back that Pt would need to rise 20% for LMI to be fine. Well it's nearly there. The next LMI figures equally will be irrelevant as the Board are strangely enough on a mission to paint the bleakest possible picture they can. I don't trust them one bit... A decent management could do wonders here.

The LMI mkt cap of circa £200m is a joke considering they raised £263m from the last rights issue alone. The LMI Board need to consider their position very closely recommending this offer. A decent management will be able to negotiate financing with the improving Pt price increase. If Froneman thought LMI were worth £1 15 months ago he must think and know they are worth a lot more today. If another party came in with an offer circa £1.5 per share I very much doubt Froneman would walk away... This could get quite interesting in the coming months.

I wouldn't rule out another bidder joining the table soon especially if Pt starts rising. The current mkt cap of circa £200m is ridiculous. Lets face it £600m would still represent a bargain as this has the potential to be worth much more than this in the future...

The problem with LMI is the Board. They need to go and quickly in my view. Hopefully if 25% of LMI shareholders vote against the deal with SGL it will be the time for them to do the honourable thing and step down and make way for a proactive new team. Virtually all their decisions have been disastrous and destructive. How they are still there is a complete fallacy. Pt could go up another $500 and the Board would still recommend the deal with SGL...

Pt having a good day. At this rate it may not take too long for it to reach 1000...

You could probably double that figure Ta... Well lets hope we get to 1000 before June. I think Froneman will have to sharpen his pencil somewhat if he wants LMI on the current terms. How the Board can justify this takeover is just beyond me. They really need to go. Maybe they should try to mine something else like Bitcoin.

At what price does pt have to be for 25% of shareholders to reject this bid?

I do agree with regards to that if they are right about pt increasing Lonmin will probably be the best performing stock as it has been beaten up from every angle. If there is a decent rise in pt it will change LMI's fortunes dramatically. LMI could certainly do with a bit of good luck because it has had its fair share of bad luck...
All views are welcome Rastuss as it makes this bb fair and balanced. We may not agree on all issues but at least there is respect for one another's views which is hard to find on other bb's.

If they were bullish of the platinum price they would buy pt or other pt miners but they are buying LMI. The holdings they have are more than just a punt.

Are still buying LMI. Surely if they thought that LMI would go into receivership they would not be buying. As you correctly point out Rastuss the discount is narrowing so why wouldn't they be buying SGL instead?
Rather strange don't you think...