(Bloomberg) — When Lonmin Plc Chief Executive Officer Ben Magara announced in December that Sibanye Gold Ltd. had agreed to buy the platinum miner, he was visibly relieved. He can’t relax just yet.
To keep the deal alive, Lonmin should avoid burning cash by the time of shareholder votes on the purchase later this year, according to Sibanye.
That may be a tough ask for a company that’s been forced to seek covenant waivers from lenders and has struggled through years of losses, especially as a recently strengthened rand adds further pressure. Continue Reading →