Lonmin jumps after production report

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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

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