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%

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

price of platinum has been climbing nicely,

has I type 888$ a ounce

platinum now at 899$ an ounce

platinum at 908$ an ounce

platinum at 923$ an ounce

up up and away platinum now at 946$ an ounce

They profit if the price is higher than 775... It has never gone below 800, and moved up to over 900.
Share price should pass issue price, 100p.

3.3% is now in the hand 0f the shorters.

Shorters will be betting that "mining" is likely to remain in trouble for some while, due to China flooding the market//not making much.
However, this is wrong for two reasons:-
1) China may have slowed down, but the world continues to need platinum products - and with "Diesel" being out of favour, I suspect more Platinum will be being bought at low prices - moreover I wasn't aware that China was a big consumer of Platinum....not being too concerned about car-emissions, etc. But this could change very quickly, leaving "shorters" with red-faces.
2) Mining is generally sick due to overcapacity...and those mines with higher costs will close, so the Market is contracting, even though the price dives. That is a good opportunity for merchants to buy-forward, thereby fixing their costs into the future - and this means the likes of Lonmin/Rio etc. will have modes levels of work - and will adjust their factory/workforce to suit the lowered Mfr. needs.

It only needs one big Co to notice this is happening and all shorters will be running for their brokers.