Lonmin Shares Rise on Swing to Profit in FY18
November 29 2018 - 5:42AM
Dow Jones News
By Oliver Griffin
Shares in platinum miner Lonmin PLC (LMI.LN) rose after the
company reported a swing to a pretax profit for fiscal 2018 and
said that full-year sales exceeded guidance.
The company reported a profit of $68 million for the year ended
Sept. 30 compared with a pretax loss of $1.17 billion in financial
2017. The company booked an impairment of $1.05 billion last year,
which affected its profitability.
Lonmin is being taken over by South African platinum and gold
miner Sibanye-Stillwater Ltd. (SBGL). The company said the deal is
expected to close in early 2019, subject to approval by
shareholders and sanction by courts of England and Wales.
Revenue for the year rose 15% to $1.35 billion, Lonmin said. The
company said it sold 681,580 ounces of platinum during the course
of the year, exceeding its guidance range of 650,000-680,000
ounces. The company reported a net profit of $42 million, swinging
away from a net loss of $996 million the prior year.
Lonmin said it expects platinum sales of between 640,000 and
670,000 ounces in fiscal 2019, in line with removing high cost
production.
Shares at 1003 GMT were up 8.8% at 46.78 pence.
Write to Oliver Griffin at oliver.griffin@dowjones.com;
@OliGGriffin
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(END) Dow Jones Newswires
November 29, 2018 05:27 ET (10:27 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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