Member Info for Davde

Rastuss you maybe be right, we will need to wait and see if guidance does change and safety is a priority. Think the main focus will be to get deal over line and hope rand does not appreciate to much in coming months and PGM BP remains buoyant as that's what is keeping them afloat!

Not great but not the end of the world and they have kept guidance the same for 2019!

Hopefully production is in excess of last years figure of 308,000 oz of PGM of which PD circa 75,000 oz, cost of production under Zar 1,300 would be nice last year Zar 12,700. With no surprises should be a good quarter for cash and maybe even a small profit!

LMI discount back to 13% ish!

Rastuss agree mining industry will be high on agenda after election its an important part of economy. PIC is concerning hope you not corrrect on this one. Another week on the adventure begins! Results, strikes and court progress info would be nice either way!

No surprise AMCU leadrship may wish to support the EFF but membership may take a different view at the ballot box! Re PIC resignations it maybe positive if allegations are proven correct. The letter to Cyril about cleaning up corruption sooner rather than later otherwise the investment he badly neeeds will be jeopardised may focus minds, no investment no jobs!

Rastuss thanks for link. Agree Jabba will look at cash, debt and job reduction progress. I do think he will have a flexible approach when the deal nears completion. He will also take into consideration the SBGL cash and debt position as well, as things change! A lot of staff reduction schemes can slip because it makes sense to delay e.g age profiles, turnover rates, years service, etc can all help reduce transformational change costs, there are lots of factors to consider, PGM prices! Unless a noticeable change in SBGL strategy still think deal will complete, hopfully in the Autumn!

Ta trade it was 22nd Feb last year so there or thereabouts. Rastuss your views always welcome by me as they provide balance to debate and LMI has lots too debate! As hearshopin said many months ago he had a soft spot for LMI as do I, not the best investment decision I have ever made but love the intrigue it has produced and sure it will come through! Sorry been at pub and feeling mellow! We will see next week brings!

Rastuss sure Jabba will review LMI cash position and progress re headcount reduction as they do matter but sure Ben will ensure all good. The prize of LMI for SBGL is significant to their strategic plan and shareholders will agree takeover. That said they still have strike and court issues to sort out first hopefully progress at labour court shortly we will see! LMI maybe holding back update to be more in line with SBGL as they should be out in a few weeks. Think both will be favourable, LMI positive cash and SBGL in profit and probably better than anticipated we will see!

Rastuss not sure re redundancy schedule being part of conditions! What Jabba is adamant about is no cross subsidisation of loss making mines, it was noticeable in the annual report that cost per tonne was not given for generation 1 mines! Jabba has also said that SBGL may waive conditions if necessary to conclude deal and they have done with backstop date. Starting to sound like brexit!

Rastuss I don't know redundancy law but as these were voluntary by the looks of it they may take less, also not sure contractors would get same so that may explain difference between enforced redundancy just speculating. The difference in numbers is no surprise, been confused by them since SBGL bid as that changed numbers a bit if I recall. What got me was the statement re the 2020 figures we may we maynot depending on viabilty (PGM prices) this where Uncle Joe coming from why close if profitable even marginally to save jobs! Problem is this is short term as LMI needs significant CAPEX to sustain business long term on its own. The board know this is not possible hence takeover promotion.

Rastuss page 16 headcount reduction 2018 2,400 includes 800 contractors. Cost of redundancy 176m rand financial review. Page 16 says further reduction 2019 4,800 includes 2,000 contractor's. 2020 a bit vague as says depending upon PGM prices 3,600 no split for contractors!

Rastuss thanks surprised no media coverage, good sign though as indicates no violence. Re update yes wait with baited breath and SBGL out soon as well. Hopefully both better than anticipated!

Rastuss have you heard anything re above e.g. impact and numbers out etc. Seen nothing in media I can access and SBGL been very quiet! TT miracles do happen!

Rastuss agree with you about covenants and cost ($11m a year) but still think SBGL have flexibility to make investment decisions that protect jobs as a way of smoothing takeover of LMI! The mexican stand off can only go on for so long!

Rastuss agree significant investment would be required and SBGL finances are tight but think they are in better position due to higher palladium prices in particular in respect of US operations. The SBGL streaming deal not as bad as LMI one they got rid of some expensive debt although it was dressed up a bit! So they may have more flexibilty than anticipated will become clearer at next update.

Rastuss thanks for this, so it looks to me that permanent employees reduced circa 3,500 and contractors circa 2,500 between 2014 and 2017. My confusion re numbers loks like the 2014 article I read referred only to permanent employees and excluded contractors. So progress was made during this period which is good although think the new proposed reduction is a tad ambitious from a redundancy cost situation as you have said in past unless majority are contractors even then reduction program likely to take many years. It's a difficult one for Jabba and Ben they need a plan to take these jobs out but find other areas in process they can be utilised, maybe increasing smelting capacity? I know one of SBGL aims was to get their hands on LMI furnaces as well as mine resources so maybe a plan that invests in down stream added value activities will bring Uncle Joe round! Trying to be positive!

He does look tired and not confident about winnning! It is sad if he is trying to turn into a race issue as should not be relevant in a modern SA! The job losses projected by LMI need to happen for LMI to survive should takeover not happen anyway otherwise he wil have no members at LMI in a year or so. Not sure he fully apppreciates or refuses to understands LMI's financial position. Rastuss I was looking at some old articles about 2014 strikes and 2 things struck me Unions did not win any significant gains as a consequence of the 5 month strike and secondly LMI staff numbers were about 20% less than they are now. Re second point did LMI expand or take over mines to expand headcount after strike a bit odd as they were trying to cut staff then by 5000? Any help in understanding appreciated.

Rastuss ok we will await updates!

Rastuss if labour court finds in SBGL favour would other strikes still be protected pending AMCU appeal?