Lonmin jumps after production report

Comment on this story
LonminMine Independent Newspapers. Picture: Boxer Ngwenya.

Johannesburg - Johannesburg-listed shares of Lonmin rise more than 5 percent as investors laud the platinum producer's balance sheet, saying it appears in “reasonable shape” following a five-month strike over higher pay.

The longest and costliest strike in South Africa's history ended in June and has cost Lonmin $322 million in lost production, security costs and forfeited contracts.

“The key positive is that the balance sheet appears in reasonable shape at zero net cash with the company having drawn down its credit facilities of $586 million,” Investec said in a note to clients.

The shares are up 5.64 percent at 43.05 rand. - Reuters


sign up
 
 

Comment Guidelines



  1. Please read our comment guidelines.
  2. Login and register, if you haven’ t already.
  3. Write your comment in the block below and click (Post As)
  4. Has a comment offended you? Hover your mouse over the comment and wait until a small triangle appears on the right-hand side. Click triangle () and select "Flag as inappropriate". Our moderators will take action if need be.