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%

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.

platinum now at 954$ an ounce

yesterday I purchased 150 shares in lonmin, @ £1

nice to make profit for a change

Always good to make a profit.......don't forget to actually take it though.....possibly looking a little overbought atm.

Since the consolidation I am the proud owner of ........ 4 shares with a average value of £28/share. Think I should average down..... lol.

Deutsche Bank today reaffirms its sell investment rating on Lonmin PLC (LON:LMI) and raised its price target to 45p (from 42p).

Today good figures should do a good thing for the charting from, since early March is on the way process of culminating a A CUP & HANDLE, at the moment is on the late stages of the Handle before reaching the breakout 195/198p

StockMarketWire.com
Lonmin reports significant progress on its business plan in the six months to the end of March following a successful refinancing.

EBITDA for the period was $36 million against a loss of $6 million a year ago and was largely due to the beneficial impact of cost reductions.

The group says cost savings are well ahead of schedule with R469 million savings achieved in H1 2016 (in FY15 money terms). This represented 67.0% of the full-year target of R700 million.

Reorganisation and s189 process successfully completed with 5,433 people having left the Group by 31 March. A further 1,428 employees were reskilled and redeployed into vacant, more productive roles.

Chief executive Ben Magara said: "These results reflect the positive momentum in Lonmin, we have delivered on our promise to restructure and cut high cost production in this oversupplied market while simultaneously reducing costs and improving cashflows. Quarter on quarter, Lonmin has reduced unit costs to R10,390 per PGM ounce and improved the net cash to $114 million; thus delivering on our promise at the time of the Rights Issue to be cash positive after capital in this subdued PGM pricing environment. There is still a lot of hard work ahead as we squeeze out more costs and drive operational improvements and our key risks remain safety and its related stoppages and relationships. Lonmin has long life, shallow mining assets and unrivalled processing expertise and an invaluable mine to market business.

"Going forward, our investment in relationships and the concept of shared value will be extensively tested in the coming wage negotiations especially with the backdrop of local government elections. I am cautiously optimistic about wage negotiations as we have engaged continuously with our employees and unions on the economic realities that our Company has gone through, including the inevitable 5,433 colleagues that we had to sacrifice and lost their jobs."

The group said the rolling twelve month average Lost Time Injury Frequency Rate to 31 March 2016 was 5.10 incidents per million man hours and shows a steady improvement of 5.7% on September 2015 at 5.41. It adds: "Despite most safety indicators showing improvements, regrettably one of our colleagues, Mr Zilindile Ndumela, was fatally injured on 26 October 2015 at Rowland shaft. Subsequent to the period end two of our colleagues were fatally injured, Mr Goodman Mangisa at Pandora JV E3 Shaft on 6 April and Mr Fanelekile Giyama at Rowland shaft on 7 May."

Shore Capital note:
"LONMIN^ (LMI, NR, CNP) – Full-year sales guidance appears do-able, a little more work needed on costs; ship turning around, but needs favourable price and FX winds to go anywhere fast. Production in Q2 FY2016 was slightly down on both Q1 FY2016 and Q2 FY2015. However, Lonmin was able to reduce unit costs by 5.1% vs. Q1 FY2016 (albeit Q1 was impacted by the December holidays) and 2.6% lower than Q2 FY2015. Refined production and sales were slightly up on Q1 FY2016 and significantly up on Q2 FY2015 (which was impacted by smelter issues).

In relation to the H1 FY2016 P&L, Lonmin remained loss-making at all levels, albeit it is now only slightly loss-making rather than heavily loss-making. Operations recorded significantly reduced cash outflows, and thanks to the recent refinancing, Lonmin ended the period with US$264m of cash (albeit this was still down on the US$320m cash at the start of the period). Current assets totalled US$687m, dwarfing current liabilities of US$158m. Net debt was reduced to US$114m (from US$185m).

For the full-year, Lonmin reiterated sales guidance of c.700koz Pt at R10,400/oz PGMs (H1 FY2016: 361.9koz @ R10,668/oz). Capex guidance was reduced further, to US$105m (from US$132m). The sales guidance appears do-able, assuming no production hiccups, but there is clearly still some work to do on cost (which is essentially a case of running to keep still). All in all, the good ship Lonmin is showing signs of gradually being turned around, but it will be heavily dependent on having favourable PGM price and FX winds in its sails in order to go anywhere fast."

UBS note today:
"Lonmin achieved good cost performance in Q2-16, with unit costs -3% q/q. This is positive as labour reduction/cost-cutting initiatives start to bear fruit. However, we do not believe this level of performance is sustainable, especially as production declines into FY17/18E, and we expect costs to increase 8-10% p.a. (vs company guidance of flat nominal costs). We expect this to lead to Lonmin being FCF negative in FY19E, even if prices increase as we expect, and is likely to be a disappointment vs consensus. After a strong share price performance (+485% from January lows), we think the valuation looks stretched (2x UBSe NPV), and downgrade the stock to Sell from Neutral.
If prices remain at spot, financial leverage would increase to greater than 3x ND: EBITDA in FY18E, and liquidity would be significantly impaired (from a healthy $474m at Mar-16). However, in a low price environment, we assume Lonmin would likely rather let its production fall further than put the balance sheet at risk. Nevertheless, in this scenario, the equity could de-rate materially, and underperform peers. Lonmin remains the most vulnerable in our view.
We see a better-than-expected performance in the ZAR PGM basket price as the biggest risk to our cautious stance on Lonmin. Additionally, upcoming wage negotiations are likely to generate some headlines, especially given the fluid regulatory backdrop (see our recent note). Ultimately, we believe wage increases are likely to be settled at increases of 8-10%, similar to previous agreements, and in line with broader expectations.
Our PT increases to 140p (from 110p) as we now base our PT on a mix of EV/EBITDA and NPV (vs NPV previously) bringing Lonmin in line with the rest of the SA PGM sector. We also initiate on the SA line of Lonmin, with a Sell rating and a ZAR30 PT (same PT basis). We have updated estimates, reflecting the fluid price environment and likely changes to production and capex we expect as a result."

Deutsche Bank today reaffirms its sell investment rating on Lonmin PLC (LON:LMI) and raised its price target to 106p (from 105p).

StockMarketWire.com
Lonmin - one of the world's largest primary platinum producers - has announced its production results for the third quarter ended 30 June.

Chief executive Ben Magara said it was "another good quarter in a challenging operating environment" with the company continuing to focus and execute on its committed strategy.

Third Quarter Highlights
- LTIFR improved by 4.5%. Sadly two colleagues were fatally injured. We declared and held a Tripartite Safety Day on 14 July, in conjunction with the Department of Mineral Resources (DMR) and The Association of Mineworkers and Construction Union (AMCU)

- Mined Platinum ounces up 3.3% to 166,581, notwithstanding the rationalisation of the workforce by 19% (compared to people as at 30 June 2015)

- Concentrator recoveries continue to be industry leading at 87%

- Produced 2.6 million tonnes from underground mining, broadly flat on Q3 2015

- Generation 2 shafts production up 8.7% to 2 million tonnes, and productivity up 6%

- Unit costs reduced by 2.2% year-on-year to R10,596 per PGM ounce (6E basis), in spite of RSA CPI of 6.3% and increased safety stoppages

- Average Rand full basket price (including base metals) up 9.2% on Q3 2015, at R11,864 per PGM ounce

- Refined production of 173,512 and sales of 162,725 Platinum ounces on track to achieve full-year guidance

- Net cash of $91 million as at 30 June 2016, after working capital and capital expenditure investment of $51 million. Total Liquidity at 30 June 2016 was $451 million

I've got these from 101p - unfortunately only a small holding.

I haven't got any! Doh!! :o(

Lonmin Secures $50 million Funding For Tailings Project

Lonmin Plc is pleased to announce that it has secured competitive funding of $50 million for the Bulk Tailings Treatment project ("the BTT project" or "the project") through a specific project finance metal streaming arrangement. The first tranche of project funding of $9 million has now been received and work has already started on the project.

The BTT project involves the re-mining of Lonmin's Easterns Tailings Dam. The project entails the reprocessing of 26 million tonnes of Tailings material at a rate of 300,000 tonnes per month. Commissioning and ramp up to full production is expected during the 2018 Financial Year.

Once at steady-state, the project is expected to produce about 29,000 ounces of Platinum per year or some 55,000 ounces of PGM, at a yield of 0.5 grammes per tonne (5PGE+Au) (grade of 1.42 grammes per tonne at a recovery of 35%). The project is part of Lonmin's business plan and is expected to produce the lowest cost ounces in the Lonmin portfolio.

"The BTT project is part of our strategy to focus on low cost ounces to maximise our cash position and create value for all our stakeholders," said Lonmin's Chief Executive Ben Magara.