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%

This is a sell at 580p.

There will be a slide next week.

535p now.

486p now

Lonmin had created a beast that it later found impossible to tame - its own miners for whom the company has neglected through the years.
Killing them is not an option obviously.

Q4 2012 Production Report & Future Strategy Update

Highlights:

· Employees returned to work, ramp up to full production going better than expected. First Platinum ounces to be produced on 31 October

· Platinum metal in concentrate for the fourth quarter down 45.7% (vs Q4 2011) due to illegal strike action in August and September
o Strike impact of around 110,000 ounces of mined Platinum
o Refined Platinum production only down 20.8% as ounces extracted from stock pipeline

· Full year 2012 sales of over 700,000 ounces of Platinum. Immediately available ore reserves of 18 months, improved grades and recoveries and further improvement in safety statistics underlines quality of operational performance

· 30 September 2012 covenants to be formally tested in early November and on balance of probabilities covenants are not expected to be breached at that test date

· Debt levels will rise significantly over the coming months to fund the production ramp up and stock pipeline rebuild - may breach covenants at 31 March 2013 absent additional equity and amendments to existing bank facilities

· A proposed Rights Issue of approximately US$800 million (gross) planned to reduce indebtedness and increase financial strength

· Proposed Rights Issue underpinned by a signed Standby Underwriting Agreement. More details of proposed Rights Issue to follow in due course

· Amended US Dollar and Rand bank facilities already signed removing EBITDA covenants and reducing quantum of US Dollar facilities

o Resolves covenant issues

Strike-hit South African miner Lonmin [JSE:LON] said it planned to raise $800m in a rights issue and had signed amendments to its debt facilities to help it avoid a possible covenant breach next year.

Lonmin, the world’s third-largest platinum miner, which has one of the most pressured balance sheets in the sector, had warned that it may need to issue new shares to help shore up its finances after a deadly strike hit output.

The company said that the proposed rights issue was underpinned by a standby underwriting agreement and that it had also amended a deal with its lenders to remove earnings-related covenants.

Analysts had raised concerns that the company could breach such covenants at the latest test but Lonmin said on Tuesday that it did not expect to do so, although it warned had it not taken action there was a danger over the March test.

“With the standby underwriting and amended debt facilities signed we have taken two decisive steps on our way to delivering that and we are confident about our financial security,” chaiperson Roger Phillimore said in a statement.

Lonmin’s Johannesburg-listed shares were down 1.8% at 07:39 GMT, paring earlier gains of as much as 4%.

The company said that production slumped 45.7% in the three months to September 30. It had already warned that it would miss its 2012 output target after a strike left 44 dead in August.

South African mines have been hit by months of labour unrest which have threatened growth in Africa’s biggest economy and drawn criticism of President Jacob Zuma for his handling of the most damaging strikes since the end of apartheid in 1994.

Lonmin’s miners have since returned to work and the company said that the ramp up in production was going better than expected.

Lonmin shares fell more than 5% in early trade following news of the rights issue.

up 36p over all, bought a few.,.

463p now... still a sell.

chart let me down this time :(

Final Results

HIGHLIGHTS

• Commendable operational performance in light of circumstances

o The tragic events at Marikana significantly impacted operational and financial results
§ Impact of 110,000 ounces of mined Platinum
o Saleable metal in concentrate down 5.5% to 679,821 Platinum ounces
o Platinum sales of 701,831 ounces - down 2.6% on 2011
o Improved safety performance - LTIFR of 4.16 per million man hours worked vs. 4.71 in FY2011
o Immediately available ore reserves at 3.3 million centares, up 14% - healthy levels aligned to creating operational flexibility to respond to market conditions
o Further improvements in grades and concentrator recoveries
o Number Two Furnace commissioned on schedule in July 2012 and Number One Furnace successfully modified and operating well

• Financial results

o Underlying profit before tax $57 million
o Special costs of $755 million, including $159 million for costs related to illegal work stoppage and impairment of Akanani exploration asset at $602 million
o Resulting loss before tax of $698 million

• Balance Sheet restructuring

o Underwritten Rights Issue to raise c. $817 million announced separately today
o Amended banking facilities - strengthening financial position

• Focus areas FY2013 onwards

o FY2013 guidance of 680,000 Platinum ounces of saleable metals in concentrate, and sales of 660,000 ounces
o Targeting Platinum sales in excess of 750,000 ounces in FY2014 and FY2015
o Unit costs to increase by around 10% to ZAR9,350 per PGM ounce produced in FY2013
o Capital expenditure of $175 million for 2013 financial year
o Attractive long-term fundamentals for PGM markets remain, despite short-term volatility

Roger Phillimore, Chairman, said: "The publication of today's results closes a painful chapter in Lonmin's history. There are many lessons to be learnt and these will inform our actions in the future. However we are now looking ahead with renewed confidence. We have secured our financial position and we have a clear strategic plan that management and workers alike need to deliver on for the sake of all our stakeholders."

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Glad I hold these.......not!! bit of a drop is under statement.,.

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Removed: just seen notification on halifax and rights issue detail, offer at £1.40.,.

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only way is up........ i hope, if they can keep the work force working might be a fighting chance of profit but will take time.

Looks like lonmin climbing steady, good profit at mo and holding.,.

good strong start again.