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EYEBROW

29 September 2017
Test edition
Test edition

Summary of this Test edition

EYEBROW

26 September 2017

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The dismal art

There's supply and then there's supply; knowing the difference can save serious heartache

Jury out on Cascabel resource

Not all agree, but there is plenty of support for SolGold's first pass numbers

TMAC appoints banker as CEO

BMO mining chief to take on mining company with operational issues

Dumont back as nickel-cobalt opportunity

Quebec nickel-cobalt project taking calls from interested parties

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"[Lonmin's] confidential presentation ... does not paint a pretty picture"

Struggling platinum miner Lonmin (LN:LMI) has reportedly flagged further cost-saving plans including cutting spending on social and labour projects and freezing “non-critical” recruitment.

Staff reporter

Finance

"[Lonmin's] confidential presentation ... does not paint a pretty picture"

Struggling platinum miner Lonmin (LN:LMI) has reportedly flagged further cost-saving plans including cutting spending on social and labour projects and freezing “non-critical” recruitment.

Staff reporter

"[Lonmin's] confidential presentation ... does not paint a pretty picture"

Lonmin investigates further cost-cutting measures

Earlier this month, Lonmin delayed the release of its financial results for the year to September 30 due to its operational review process, sending its shares down about 30% that day.

The South Africa-focused miner had announced it would look to sell off excess processing capacity, joint venture some projects and reduce overheads by a minimum of US$37.3 million following the initial conclusions of its operational review in August, designed to address its concerns over "persistent adverse macroeconomic conditions" and inflationary cost pressures.

The additional measures were outlined in an unpublished presentation to stakeholders, and reviewed by Reuters, which one attendee told the wire service did "not paint a pretty picture".

Cutting expenditure on social and labour plans could be problematic as miners are required to meet meet housing and other service obligations to maintain their operating licences, Reuters pointed out.

Lonmin's 30% shareholder, South Africa's Public Investment Corporation, also wants two seats on the board by the end of 2017 and has suggested Lonmin shifts its main listing to Johannesburg, Reuters reported.

Meanwhile, South Africa's High Court this week postponed its hearing on the country's controversial revised mining charter, shifting it from December to February.

Lonmin shares last traded down 5.7% at 62.25p, close to a 52-week low and at about a third of their peak reached in January.

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