Should the worst fate befall Lonmin, the platinum miner will once again stand before shareholders pleading for a bailout package, the fourth in a decade and second of the management team led by Ben Magara, about whom seldom a bad word is said in the mining fraternity.The task he took on about five years ago, of turning around the troubled platinum miner, was colossal, made all the more difficult by a market that has remained in hibernation. The only beneficiaries of another rights issue, if it depressingly comes to that, will be investment bankers — a former wolf tells me it's one of the easiest and most lucrative tasks to undertake.For shareholders — in particular the Public Investment Corporation, which is the mining company's biggest shareholder with a stake of close to 30% — it would be yet another chapter in a sad tale. Should it be management's only option, at least there's the PIC, which has to consider its moral obligations. The long-term economic costs of not supporting Lon...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.