|Bid||38.00 x 444900|
|Ask||64.00 x 140500|
|Day's Range||45.26 - 48.12|
|52 Week Range||36.00 - 91.80|
|Beta (3Y Monthly)||2.17|
|PE Ratio (TTM)||3.08|
|Earnings Date||Nov 26, 2018 - Nov 30, 2018|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||0.56|
“I am pleased with Lonmin’s return to profitability and that we are making a first payment to our Employee Profit Sharing Scheme,” Lonmin chief executive Ben Magara said. Faced with falling platinum prices and a crippling wage bill, Lonmin has been battling to conserve cash.
Lonmin also said on Thursday it expects Sibanye's deal to close early next year, but cautioned that some uncertainty still exists over its completion, which is subject to certain conditions. Lonmin shares rose as much as 9.3 percent to 47 pence after its results for the year ended September showed an operating profit of $101 million, compared with a more than $1 billion loss a year earlier. The London-listed miner, crippled by soaring costs and subdued platinum prices, has been cutting spending to conserve cash and retain a positive cash balance, one of the conditions upon which South Africa-based Sibanye's takeover is contingent.
It should come as a relief to Sibanye Chief Executive Officer Neal Froneman, after a particularly tough year for the company.The companies had planned to cut more than 13,000 jobs after the merger from aging shafts that are running out of profitable ore. Only 885 were as a result of the deal, but the tribunal said it’s not that clear cut.The regulator is placing a moratorium on job cuts for the six-month period so Sibanye can do an in-depth assessment of the operational requirements of Lonmin and consult with relevant parties including unions.
Lonmin has proposed 12,459 job cuts at mines that will run out of commercial deposits in the next three years. Lonmin has already cut about 2,000 jobs to weather a rout in platinum prices. The union also said that the outlook for platinum-group metals has improved and a weaker rand means Lonmin could operate profitably.
Struggling miner Lonmin shored up its finances with a $200 million (£153.1 million) boost from China on Monday as it awaits a rescue takeover by South African rival Sibanye-Stillwater.
Strapped for cash, Lonmin had unveiled plans to cut 12,600 jobs and have a further 890 merger-related layoffs when Sibanye agreed to buy out the company in December. Lonmin said it remains committed to the proposed deal with the South African competition tribunal's hearing set for Nov. 12 to Nov. 14. The funding agreement Lonmin has entered with an associate of Jiangxi Copper Company Limited is secured over Lonmin's assets and removes some restrictions present in the company's current debt facilities related to completion of the Sibanye deal.
South Africa’s antitrust regulator recommended Sibanye Gold Ltd.’s acquisition of Lonmin Plc be approved, clearing a key hurdle for the deal that throws a lifeline to the struggling platinum producer. It may be approved if Sibanye tries to save about 3,700 jobs of the more than 13,000 it plans to cut over the next two years, the Competition Commission said on Monday. Sibanye’s acquisition of Lonmin is the latest in a series of deals by Chief Executive Officer Neal Froneman, who has transformed the gold miner by expanding into platinum-group metals and last year bought a U.S. palladium miner for $2.2 billion.
South Africa's Public Investment Corporation (PIC) said it will support a takeover of platinum producer Lonmin (LMI.L) (LONJ.J) by precious metals producer Sibanye-Stillwater (SGLJ.J). State-owned PIC is the largest shareholder in struggling Lonmin, holding 29.2 percent and is Sibanye's second largest shareholder, with an 11.2 percent stake. Lonmin has been the biggest casualty in South Africa's platinum mining industry which is under pressure from rising costs and muted prices.
Three of Sibanye Gold Ltd.’s largest investors, controlling more than a third of its shares, have indicated they will vote in favor of its planned takeover of Lonmin Plc, according to people familiar with the matter. Gold One Group, Sibanye’s largest investor with about 19 percent, and South Africa’s Public Investment Corp. both told the companies they will support the all-share deal, said the people, who asked not to be identified because the information is private. Exor Investments UK LLP, which owns shares in both companies, has also indicated it will back the transaction, they said.
Miner Impala Platinum will slash about a third of its workforce over two years in one of the biggest rounds of job cuts by one mining company in living memory in South Africa as the platinum industry faces a day of reckoning. The number of platinum miners employed in South Africa, the world's largest producer of the precious metal, has fallen from a peak of almost 200,000 in 2008 to 175,000 in the face of depressed prices and soaring costs, fuelling labour and social unrest. Job cuts are politically sensitive in the country and Mines Minister Gwede Mantashe, a gruff former trade unionist, called Implats' announcement on Thursday "a clear example of a company that is careless...Their reckless actions add injury to insult".
JOHANNESBURG/LONDON (Reuters) - Britain's Competition and Markets Authority (CMA) unconditionally cleared Sibanye-Stillwater's (SGLJ.J) proposed takeover of Lonmin (LMI.L) (LONJ.J) on Thursday saying the mining merger would not require a second phase investigation. The South African precious metals miner made an all-share offer for London-listed Lonmin in December in a 285 million pound ($386 million) deal aimed at creating the world's No.2 platinum producer. "We look forward to the combination of the businesses creating a leading mine-to-market player with enhanced scale and resources, able to compete more effectively," the CEOs of Sibanye and Lonmin said in a joint statement.
Technologies used to carve subways and clear landmines are being retooled to mechanise South Africa's platinum mines, where an unforgiving geology has stymied such efforts at a huge cost. The technologies may make new mines profitable and could provide a lifeline for some loss-making shafts in a sector battered by low prices and social unrest, but there are limits. The stakes are high in the world's top producer of the metal: most of South Africa's platinum shafts are losing money, while the handful of mechanised ones are profitable.
Britain's Competition and Markets Authority said it will examine whether a takeover of Lonmin (LMI.L)(LONJ.J) by South Africa's Sibanye-Stillwater (SGLJ.J) would reduce competition, knocking shares in both mining firms. Precious metals miner Sibanye-Stillwater made an all-share offer for London-listed Lonmin in December, but the planned 285 million pound deal to create the world's No.2 platinum producer faces several other hurdles. Shares in cash-strapped Lonmin, the world's third-largest platinum producer, had slipped 4 percent in London by 1554 GMT, while Sibanye, the fourth-largest, saw its stock close down 5.3 percent in Johannesburg.
Lonmin’s merger with a South African rival was dealt another blow on Tuesday after the competition watchdog said it will investigate the tie-up. The Competition and Markets Authority, under pressure after blocking other rescue deals, will examine if the proposed $383 million (£283 million) deal with Sibanye-Stillwater would make the platinum market less competitive. The union would create one of the world’s biggest platinum producers if it goes ahead, controlling a 25% chunk of the market.