Future still uncertain for Lonmin as it awaits half-year results that will determine if Sibanye deal survives
There is no time for rest for the beleaguered Lonmin, which needs to set itself up for a takeover before the bid expires by February next year. Challenged by a strong rand and weak platinum prices the company's half-year results tomorrow will have to show that although it might be under pressure, it can weather the storm. The proposal of the R5-billion acquisition by Sibanye, which came with a condition that the miner should remain cash-neutral, may seem easy for some. But Lonmin has continued to suffer under a share price which has never recovered from its 98% drop five years ago. In the same period the platinum mining index has declined by 74%. After coming close to defaulting on its debt covenants last year at least the miner was given some breathing space from creditors until next year.However, the fact that Sibanye has a net debt of of R23-billion compared to its market cap of R20-billion and cannot afford to take up more, doesn't support Lonmin's case after Sibanye had added p...
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