Platinum producer Lonmin today, 22 January 2018, reported an operating loss of $1.079 billion for the year to September 2017 after a loss of $322 million the previous year, citing tough macroeconomic conditions among other challenges.
“Platinum prices continue to be depressed but the operational results achieved this financial year have been pleasing. We believe Lonmin has an enviable mine-to-market business with great mining assets, projects and process technology and a resilient workforce. Despite this, Lonmin continues to be hamstrung by its capital structure and liquidity constraints. The announced combination with Sibanye-Stillwater will provide a stronger platform for Lonmin’s shareholders and allow them and our other stakeholders to benefit from the long-term upside potential of an enlarged and geographically diversified precious metals group. During the offer period, our strategy continues to focus on operational performance in particular and cost control, maintaining at least a cash neutral business to preserve cash, as we focus on liquidity,” says Ben Magara, Lonmin Chief Executive Officer.
The company said the platinum group metals (PGM) pricing environment had remained weak during the year, and markets were likely to remain subdued in the short-term.
“Persistent adverse macroeconomic conditions and inflationary cost pressures continue to affect the entire mining industry in South Africa,” it said.