Lonmin H1 pretax loss $199 million
Staff Writer | May 15, 2017
Lonmin reported a pretax loss of $199 million for the 6 months to 31 March 2017 compared to a loss of $21 million, previous year.Article continues below
Loss per share in cents was 64.4 compared to a loss of 1.8. The company noted that its first-half operating loss was $181 million and was a loss of $35 million excluding the impairment charge compared to a $15 million operating loss, prior year. The comparative period did not have an impairment charge.
Total revenue for the six months ended 31 March 2017 was $486 million, a decrease of $29 million compared to the prior year period
Total tonnes mined in the half year was down 7.6% on comparative period due to the planned removal of high cost Generation 1 production and the poor mining production from K3.
The Group said its sales guidance of 650,000 to 680,000 Platinum ounces for the full financial year maintained on the back of improved mining production and smelter clean-up project.
Separately, Lonmin Plc announced it has entered into a conditional sale and purchase agreement to acquire Mvelaphanda Resources Proprietary Limited's 7.5% equity interest in the Pandora Joint Venture for a cash payment of R45.565 million.
Lonmin has also agreed to acquire Anglo American Platinum's 42.5% equity interest in the Pandora JV and is currently in the process of obtaining regulatory approvals for this acquisition.
Completion of the two transactions will result in Lonmin increasing its ownership in the Pandora JV to 100%. ■ What to read next
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