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BusinessLive reports that Lonmin executives said on Wednesday with publication of its annual results for likely that last time that the world’s third-largest platinum producer had reached the end of the road.
A rare annual profit and increased levels of cash were announced, but they were simply not enough to justify its continued existence. Lonmin is the subject of a friendly all-share takeover bid by Sibanye-Stillwater, which will create the world’s second-largest platinum producer and a leading source of platinum group metals in a deal which should close early in 2019. Lonmin CEO Ben Magara said shareholders would vote on the deal early in 2019. “Lonmin and its predecessor Lonrho have a long history in this part of the world. They started producing platinum from 1968 and it’s a painful thought that it’s coming to an end,” he said. Lonmin pulled every possible lever to improve cash flow in the year to-end September, draining as much metal from its processing pipeline as it could. It reported pre-tax profit of $68m compared with a $1.17bn loss the previous year, including $1.05bn of impairments against its assets. Lonmin has laid off 8,000 people since 2014 as it put high-cost mines on care and maintenance and would continue to cut jobs as it shut unprofitable shafts.
- Read the full original of the report by Allan Seccombe at BusinessLive
- Read too, Lonmin makes final bow with cash up, but future as standalone deemed unfeasible, at Miningmx
- And also, Lonmin returns to profitability ahead of Sibanye-Stillwater merger, at Mining Weekly
Get other news reports at the SA Labour News home page