Lonmin cash turns to ash
25 September 2015 - 02:25
Lonmin's shares have declined by about 90% this year on concerns that the world's third-largest platinum miner will struggle to refinance its debt. A plunge in the platinum price in recent days - partly over the fallout from the Volkswagen scandal and the future of catalytic converters - has deepened the company's plight.Lonmin has to renegotiate $544-million of debt facilities by the middle of next year as weak platinum prices, down by 50% since a peak in 2011, mean its operations are burning through cash."One cannot see how banks or shareholders will support them if they cannot stop the cash-burn," said Hurbey Geldenhuys, a mining analyst at Vunani Securities in Johannesburg. ..
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