Lonmin has its hands full
CE Ben Magara treads carefully around the possibility of a rights issue and points to positive trends and turnaround efforts
Lonmin’s board is so completely focused on finalising talks to acquire fresh money as well as selling excess processing capacity to third parties and finding buyers for two assets that it has not been able to apply its mind to its annual results. While CE Ben Magara carefully phrases his answer about whether a fourth rights issue is on the cards seeing that the share price has fallen more than a third since the announcement on Friday of delayed results and uncertainty in the market about what this entails, it is unlikely shareholders would back such a proposal, forcing the company to seek alternatives. “We are doing all we can to have a self-help business that is cash-generative in these low prices,” he said.
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