Lonmin jumps after production report

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.

Picture: Boxer Ngwenya. Credit: Independent Newspapers

“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