The embattled miner’s CEO, Ben Magara, thinks better days may lie ahead for the platinum producer, but analysts remain concerned about cash flow.
Analysts remained as sceptical of Lonmin as ever judging by their comments following the platinum producer’s half-year figures earlier in May in which cash in hand fell to $75m from $114m in the six months of the prior year.
There’s even speculation about town that Sibanye Gold will swoop in for the company when the cash runs out and Lonmin asks the market for more funds. Lonmin required a $407m recapitalisation by means of a rights issue at the end of 2015.
It said earlier in May it still had a net worth some $340m above the $1.4bn required as a key debt covenant with lenders, but a major hiccough either to production or platinum group metal (PGM) prices could make for shareholder discomfort. It’s worth remarking that government pensions are exposed to Lonmin: the Public Investment Corporation (PIC) is one of Lonmin’s largest investors.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
THE HEALTH OF SA'S MEDICAL SCHEMES
As the Covid-19 pandemic abates, finweek takes a look at the financial performance of some of the largest players.
The effect of Gilbertson's departure
With Ntsimbintle Holdings now the major shareholder of Jupiter Mines, it could change SA’s manganese industry.
Making money from music
Why investors are increasingly drawn to the music industry.
Conviction is key
Sandy Rheeder plays a critical role in Mukuru’s mission to open up financial services to the emerging consumer market in Africa through tailor-made technology solutions and platforms.
The post-pandemic toolkit
How CFOs can use technology to support growth.
Big city living exodus
Mini cities like Waterfall City and Steyn City are redefining city-style apartment living.
Big compact, big value
Handsome, with a hefty level of standard specification, the roomy Haval Jolion compact crossover is a great value proposition.
On barriers to entry
There are various ways in which a company or sector can achieve competitive dominance. They usually make for good investments.
Fear and greed in one index
To buck the trend, when markets are hot or cold, is a tough thing to do. However, it can deliver solid returns.
Africa's largest data centre facility coming soon
Vantage Data Centers plans to invest over R15bn for its first African data centre facility in Attacq’s Waterfall City.
