$LMI.L – Lonmin – rights issue

Platinum miner LMI (Lonmin) released two RNS’s today:

  • The finals (http://is.gd/ys6crl) showed a loss for the year of $2262m (2014: $326m loss), with net debt of $185m (2014: $29m)
  • Proposed rights issue (http://is.gd/j1xjHS) of $407m gross, but there are hefty fees of about $38m to be deducted.

There are currently 587m shares in issue. At a share price of 16.20p, it has a market capitalisation of £95.1m. It will issue 26,998m shares in a 46 for 1 rights issue at a price of 1p per new share. Following that, there will be a consolidation in a ratio of 100:1.

LMI was up 10% in early trading, but is now currently down 13%.

Barclays has said: “We do not believe that Lonmin in either its existing or proposed form is a going concern on a 3-year view. Even in our ‘best case scenario’, we envisage Lonmin will generate negative cashflows of at least $231m … over the next three years if prices remain at spot levels”

14.07p

Update 10-Nov-2015: A Stockopedia member discusses the rights issue, and says that there is no value in Lonmin right now.

Advertisements

About mcturra2000

Computer programmer living in Scotland.
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s