Lonmin CEO says will not shy away from merger or takeover – by Olivia Kumwenda-Mtambo (Reuters U.K. – February 9, 2016)


CAPE TOWN – Lonmin (LMI.L) will not “shy away” from a merger or takeover but for now the company was focussed on its plan to survive tough market conditions, its chief executive said on Tuesday.

“We are continuously looking at options to maximise value for our shareholders and all other stakeholders. Should it be of benefit to our shareholders and stakeholders it’s not something we would shy away from,” CEO Ben Magara told Reuters in an interview at a mining conference in Cape Town.

Magara said the company was for now focussed turning cash positive in a low price environment – which involves closing high-cost shaft and cutting jobs.

“That’s what I am worrying about. The investors have given us money and we must deliver. Investors are asking if we are going to deliver on this,” Magara said.

Hurt by a prolonged 2014 strike, rising costs and a plunging platinum price, Lonmin raised $400 million (277.37 million pounds) through a cash call in December.

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