End of the road for Lonmin
The producer pulled every possible lever to improve cash flow in the year to-end September
Lonmin had reached the end of the road, its executives said on Wednesday when it announced a rare annual profit and increased levels of cash that were simply not enough to justify its continued existence as the world’s third-largest platinum producer. Lonmin is the subject of a friendly all-share takeover bid by Sibanye-Stillwater, which will create the world’s second-largest platinum producer and a leading source of platinum group metals in a deal which should close early in 2019. Lonmin CEO Ben Magara said once shareholders voted in favour of the deal early in 2019 then these were the last results the board would present. “Lonmin and its predecessor Lonrho have a long history in this part of the world. They started producing platinum from 1968 and it’s a painful thought that it’s coming to an end,” he said. Lonmin pulled every possible lever to improve cash flow in the year to-end September, draining as much metal from its processing pipeline as it could, taking advantage of a 17%...
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