Lonmin reports big pre-tax loss as merger progresses
Source - SMW
Mining firm Lonmin (LMI) announced improved revenue on higher platinum group metal prices for the year to 30 September 2017 but a significant pre-tax loss of $1.17bn after a change in its business plan led to a $1.05bn impairment.
In an update on its first quarter to 31 December 2017, reported net cash of $63m reflected a reduction in the historical first quarter cash burn rate and the company revealed a fatality-free operating period.
The company is in the process of merging with Sibanye-Stillwater. Lonmin chief executive Ben Magara says: 'We believe Lonmin has an enviable mine-to-market business with great mining assets, projects and process technology and a resilient workforce.
'Despite this, Lonmin continues to be hamstrung by its capital structure and liquidity constraints. The announced combination with Sibanye-Stillwater will provide a stronger platform for Lonmin's shareholders and allow them and our other stakeholders to benefit from the long-term upside potential of an enlarged and geographically diversified precious metals group.'