JOHANNESBURG, Nov 5 (Reuters) – Embattled London and Johannesburg-listed platinum producer Lonmin will unveil new health and road projects in South Africa on Monday in a ceremony that will be overshadowed by its latest share price collapse.
Lonmin, not for the first time, is facing an uncertain future after its shares lost 30 percent on Friday when it delayed annual financial results due this month pending the conclusion of a business review.
The company said it had adequate liquidity to fund it through a review that could include the sale of assets, job cuts and the renegotiation of loan agreements. There has also been speculation about a deal to combine with fellow South African miner Sibanye-Stillwater
Lonmin, one of the world’s top platinum producers, has been in the doldrums for years due to low prices and soaring costs and has been to shareholders for rights issues to shore up its balance sheet three times since 2009.
Investors have not been rewarded for their support. Lonmin’s share price the past five years is down 97 percent. Monday’s ceremony will be held at Lonmin’s plush conference centre and game farm, a location that sets it up for a potential public relations “own goal” as the trade union Solidarity has urged the company to sell as it moves to cut over 1,100 jobs.