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lonminlogo thumb medium90 90BusinessLive reports that Lonmin executives said on Wednesday with publication of its annual results for likely that last time that the world’s third-largest platinum producer had reached the end of the road.  

A rare annual profit and increased levels of cash were announced, but they were simply not enough to justify its continued existence.  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 shareholders would vote on the deal early in 2019.  “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.  It reported pre-tax profit of $68m compared with a $1.17bn loss the previous year, including $1.05bn of impairments against its assets.  Lonmin has laid off 8,000 people since 2014 as it put high-cost mines on care and maintenance and would continue to cut jobs as it shut unprofitable shafts.

  • Read the full original of the report by Allan Seccombe at BusinessLive
  • Read too, Lonmin makes final bow with cash up, but future as standalone deemed unfeasible, at Miningmx
  • And also, Lonmin returns to profitability ahead of Sibanye-Stillwater merger, at Mining Weekly

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