Lonmin Turns Cash-Positive as Cost Cuts Meet Higher Platinum
- World’s no. 3 platinum miner has cut 5,400 jobs to stay alive
- Company begins wage negotiations with unions later this year
Lonmin CEO Says Cost Cutting is Bearing Fruit
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Lonmin Plc, the world’s third-largest platinum miner, said it was cash-positive in the first half of the year as it implements a cost-cutting plan to save the business. The shares rallied the most in two months.
Net cash was $114 million at March 31, compared with net debt of $185 million at Sept. 30, the Johannesburg-based company said in a statement Monday. Even so, the producer made a loss of 1.8 cents per share in the half year, compared with a $1.65 loss a year earlier due to asset depreciation.