Today's Labour News

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lonminlogo thumb medium90 90Bloomberg reports that platinum producer Lonmin, which has struggled through years of losses, believes its return to profit does not undermine the logic of the takeover offer from Sibanye-Stillwater.  

While some analysts have questioned the value of Sibanye’s offer, Lonmin Chief Executive Officer Ben Magara continues to recommend it, saying the rebound in earnings is not sufficient to resolve the company’s long-term challenges.  “Despite the progress made, this does not provide a long-term solution to the capital structure challenges faced by Lonmin, as it is still inadequate to invest in the new projects necessary to avoid shaft closures and job losses and maintain our production profile,” Magara indicated in a statement on Friday.  Lonmin shareholders vote this month on the takeover by Sibanye, which agreed last month to raise its all-share offer for Lonmin, citing an increase in metal prices since the deal was announced in December 2017.  In addition to requiring shareholder approval, the deal is also facing a legal challenge from the Association of Mineworkers and Construction Union (Amcu), which has appealed the conditional approval granted by competition authorities.  That has compounded operational challenges, Lonmin said.

  • Read the full original of Felix Njini’s report on the above at Moneyweb

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