Lonmin is the third largest primary producer of Platinum in the world, producing over 900,000 ounces of Platinum and a similar number of ounces of the other Platinum group metals such as Palladium and Rhodium. Its operations are located in the district of Marikana, near Rustenberg, in the North West Province of South Africa.

            Red = 25 day moving average.           Green = 200 day moving average.

SALES PER ACTIVITY (Data as of 30/09/2005)

Platinum extraction: 100%

Make that 23% now !!

Edit ,all over the place .

Great trading share that's all.

If you have the Cojones
Same as GLEN and KAZ worth buying if there is a savage drop .

StockMarketWire.com
Lonmin plans to raise $400m in a rights issue and expects to achieve a unit cost of production of approximately ZAR10,339 per PGM ounce for the year ended 30 September.

It says this is well within the original guidance of ZAR10,800 per PGM ounce.

Lonmin says it has taken action to mitigate the effects of the current low PGM pricing environment and capital expenditure for the year has also been tightly controlled.

On an unaudited basis, Lonmin's capital expenditure for the year ended 30 September 2015 was US$136 million, compared with its original guidance of US$250 million.

On an unaudited basis, net debt as at 30 September 2015 amounted to US$185 million, compared to US$282 million as at 31 March 2015. The board and executive management have reviewed the Group's business and capital structure and developed the Business Plan in order to be able to deal effectively with the effects of a continuation of the current low PGM pricing environment.

The Business Plan will accelerate the implementation of Lonmin's published strategy to control costs, reduce capital expenditure and enable decisive measures to be taken. The Business Plan aims to achieve positive cash flow after capital expenditure in the current low PGM pricing environment while preserving the ability of the Group to increase its production as and when PGM prices improve.

The Board intends to raise approximately $400 million in gross proceeds through a rights issue and, at the same time, enter into amended debt facilities with its lending banks for a total of $370 million, maturing in May 2020, conditional on credit committee approvals, on full documentation being agreed, on the Group raising a further US$400 million in new equity funding and other customary provisions. The Amended Debt Facilities will replace the existing debt facilities commitments which as at 30 September 2015 were approximately US$543 million and which are maturing in May and June 2016.

What price will it be issued at?

Citigroup reiterates neutral on Lonmin, target cut from 34p to 28p.

With rights at 1p plenty of overhang at the moment

BA Merrill Lynch's view:

Bank of America Merrill Lynch pointed out that securing this funding was key to the group's near-term outlook as it will not be able to refinance its debt with lender unless the rights issue is approved by shareholders.

Merrill said its 'neutral' view on the stock is due to the overhang of potential equity funding in the near term, given the tough operating environment.

"Despite this overhang, we think the operating trends are encouraging. In addition, the business is highly geared to a recovery in metal prices (in line with our base case)."

I'll stay clear for the moment, as I have no faith in anyone on this management team bar perhaps the guy brought in to sort out the finances.

Glad i stayed out of this one ....
---------------------------------------------

Lonmin Plc

Share Sub-division, Admission of Nil Paid Rights and listing of and trading in Letters of Allocation

Lonmin Plc ("Lonmin") announces that, following the passing of all resolutions at the General Meeting on 19 November 2015, the Sub-division of Lonmin's ordinary shares is expected to become effective on the London Stock Exchange at 8.00 am (London time) today, and on the JSE at 9:00am (Johannesburg time) today. There will be no change to the number of Lonmin ordinary shares in issue as a result of the Sub-division, although the nominal value of each ordinary share will be reduced to $0.000001. Applications have been made to the FCA, the London Stock Exchange and the JSE Ltd for the Sub-division to be reflected on the Official List and Lonmin's listings on each exchange.

Pursuant to the Rights Issue announced on 9 November 2015, Lonmin also announces that the admission of 26,997,717,400 New Shares to the Premium Segment of the Official List and to trading, nil paid, on the London Stock Exchange's main market for listed securities is expected to take place at 8.00 am (London time) today, and listing of and trading in Letters of Allocation on the JSE on a deferred settlement basis is expected to take place at 9:00am (Johannesburg time) today.

Definitions used in the Prospectus dated 9 November 2015 shall have the same meanings when used in this announcement, unless the context requires otherwise.

1p by xmas.

Deutsche Bank comment:
"Lonmin’s shareholders yesterday voted in support of the resolutions required to proceed with the fully underwritten US$407m rights issue. We update our price target to reflect the share trading “ex-rights” from today. The purely mechanical adjustment divides our unchanged valuation for equity over the enlarged number of shares (from 587m to 27.6bn), which results in an updated price target of SAc60ps and GBp2.8ps. Our equity valuation, with a rising price deck, is $1.3bn (significant upside), but our NPV at spot is negative and our Buy recommendation is purely a call on higher Rand-PGM prices.

The market cap plus net cash raised over new shares (587m in issue plus 27bn to be issued) gives a theoretical ex-rights price (TERP) of SAc25.2ps GBp1.2ps based on 19 November 2015 closing price. This implies a value per right (each right allows for the purchase of a further 46 Lonmin shares at GBp1ps SAc21.4ps) of GBp8.7ps and SAc177ps.

A successful rights issue provides Lonmin with c.US$450m in liquidity (net cash proceeds of the rights issue of US$369m add unutilised facilities of US$86m). Retrenchment costs are $59m and capex for the next three years is US$430m (US$132/110/188m over FY16/17/18e). Thus, if Lonmin’s cost and basket price are equal (as was the case in FY15) then available liquidity will be spent within three years on capex. It is our view that Lonmin needs higher Rand-PGM prices to have a sustainable business case. Lonmin is currently running its business on the hope that higher prices arise before a liquidity crunch arises, again.

The rights issue closes on 10 December 2015 and the new shares will be issued on 11 December 2015. Lonmin will run a 100:1 share consolidation on 18 December 2015 to reduce the number of shares in issue.

We derive our PT using a SOTP DCF (WACC 10% 0.9x NPV). We require higher Rand- PGM prices to obtain a positive valuation for Lonmin."

DB recommended to sell today, reduced target from 230 to 75, but they added 5mln to their holding over last few days.
They are buying something it but recommend others to sell!!!!

What does that mean?

Has anyone looked at this?
Buy volume is four times sells.

What a joke broker note today!

"Deutsche Bank today downgrades its investment rating on Lonmin PLC (LON:LMI) to sell (from buy) and cut its price target to 75p (from 280p)."

Yes, very funny.
They increased their holding by 5.5 over last week

oops, repeating

So it was CONsolidated 100:1 - is that it? - along with some juicy rights issues.
Perhaps that explains why it was very, very low and now is respectably high at about 50p.
Today, Monday the sp has risen a little along with most miners ( Polo Resources ( on AIM ), is up 50% but it had almost fallen off the chart at 2p.

Any views on Lonmin as a major producer...presumably that will continue since it is a commodity producer and suffers when the metal prices are low ( nowadays )...?

Maybe best to wait until the New Year and see what fall-out there is, if any into 2016 - at least then their position should have stabalised a little.....EDIT- seems to be moving up with Mining generally - perhaps folks can see that we will need Metals (etc.) so I've bought v few at 68p . . . .

Is the situation that bad for this company?

the production cost is to be sustained around 10800 rand = $635 at conversion rate of say 17rand to $1

As long as platinum doesn't fall below $635 it will be in profit for every oz.

rough guidance 700000oz a year at current price $835 per oz is £140m profit (£200 profit per oz)and this is low end of the platinum price (talk of this being bottomed out)

So all in all..do your sums....especially when plat(if) reaches $1000 per oz.

Very cheap now, bearing in mind plat is one of the rarest metal and hardest to mine long term prospects is very good for pension pot.

JP Morgan Cazenove today reaffirms its overweight investment rating on Lonmin PLC (LON:LMI) and cut its price target to 167p (from 325p).