Lonmin: Cap in hand for another R5.4bn/$400m

It was coming.

JOHANNESBURG – In an update on year-end trading, business plan and funding strategy, Lonmin announced it would require a further $400m (R5.4bn) from shareholders, which will be done via way of a rights issue. Its market capitalisation at the close of business on October 20 was $495m (R6.69bn).

The successful completion of the rights issue will allow Lonmin to enter into amended debt terms with its banks for facilities of $370m (R5bn), which will push the maturity of the debt out to 2020. The current facilities of $543m were to mature in May and June of next year (2016). Besides the equity raise, Lonmin will have to meet “other customary approvals” in order to effect the revised debt terms.

The company will announce the full terms of the rights issue on November 9.

Lonmin also announced progress in reducing costs. On an unaudited basis for the year ended September 30, the unit cost of production came in at R10,339 per platinum group metal ounce, which was well within the guidance of R10 800 per ounce. At the same time, capital expenditure has almost been halved – falling to $136m over the period vs guidance of $250m. Net debt has fallen from $282m at the end of March to $185m at the end of September.

COMMENTS   0

You must be signed in and an Insider Gold subscriber to comment.

SUBSCRIBE NOW SIGN IN

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR
BTC / USD

Podcasts

Instrument Details  

You do not have any portfolios, please create one here.
You do not have an alert portfolio, please create one here.
INSIDER SUBSCRIPTION APP VIDEOS RADIO / LISTEN LIVE SHOP OFFERS WEBINARS NEWSLETTERS TRENDING

Follow us:

Search Articles:
Click a Company: