Some analysts say that when Ben Magaraaccepted the position to lead Lonmin in 2013, they thought he was brave and wished him luck as he had taken on a job that was close to impossible. In 2013 the platinum price was $1374.50 an ounce and Lonmin had completed two rights issues to raise capital. The first fund-raising, in 2009, was to rectify a failed mechanisation project; the second, in 2012, was because of increased pressure the Marikana tragedy brought to the low platinum prices. Little did Magara know that the next five years were going to bring added pressure to the business. What he did know was that there was instability in the sector and it was clear that one of his mandates was to build a relationship with employees and restore stability. But six months after he joined Lonmin, a five-month strike in the platinum sector began, in January 2014. Then, in 2015, commodity prices crashed due to a sharp drop in demand from China. Inevitably, another rights issue was needed.In an in...
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