The world is changing fast and to keep up you need local knowledge with global context.
Lonmin Plc (LON) has released its interim results for the period ended 31 March 2014, with tangible evidence of the dire impact of the ongoing platinum strike. Lonmin expects a mass return to work on Wednesday.
Here are the highlights from the SENS report:
Minimal operations during the striking period – 3.2 million tonnes produced, down 43%
- 155,720 of equivalent saleable Platinum ounces lost as result of the strike
- Saleable metal in concentrate of 215,117 Platinum ounces, down 41% on prior year period
- Platinum sales of 263,675 ounces – down 19% on the prior year period
- Basket price down 16% to $1,056 per PGM ounce despite supply side concerns around the strike action
- Rand unit cost at R13,058 per PGM ounce, up 46% on prior year period
- Underlying EBIT $34 million, down from $93 million in the prior year period
- Solid track record in overall concentrator recoveries – improved from 86.8% in prior year period to 87.7%
- Net cash of $71 million with available committed debt facilities of $589 million
- Cash flow requirements on resumption of operations may put the business in a net debt position.
- Force majeure notices issued to customers, suppliers and contractors during strike period
Ben Magara Chief Executive Officer, said: “This has been a challenging first half of the year, latterly dominated by protracted industrial action across the PGM sector. Whilst we continue to work to resolve this dispute we have also taken decisive and early action to reduce cash burn, to safeguard our great assets and protect our balance sheet integrity ahead of a safe and successful ramp up when the strike ends; something we have demonstrated we excel in.”
For the full SENS report, Click Here
Cyril Ramaphosa: The Audio Biography
Listen to the story of Cyril Ramaphosa's rise to presidential power, narrated by our very own Alec Hogg.