Profitable Lonmin continues looking at Sibanye takeover
Sibanye agreed last month to raise its all-share offer for Lonmin
Lonmin, the platinum producer that's struggled through years of losses, said its return to profit doesn't undermine the logic of the takeover offer from Sibanye Gold. Though some analysts have questioned the value of Sibanye's offer, Lonmin CEO Ben Magara continues to recommend it, saying the rebound in earnings isn't sufficient to resolve the company's long-term challenges. Operating profit was $70m (about R994m) in the six months through March, after a loss of $32m a year earlier, as platinum-group metal prices recovered. "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 said in a statement on Friday. PODCAST: The growing power of class action lawsuits Subscribe: iono.fm | Spotify | Apple Podcasts | Pocket Cast | Player.fm Lonmin shareholders vote this month o...
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