The LONMIN share price thread

SauRoNZA

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Are they really down or has the rights split just taken place diluting the price?
 

Toothless

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Crazy, why would anyone ever want to invest in this?

The platinum industry has been stumbling from crisis to crisis for the past several years. Global platinum prices have dropped by more than 50 per cent since 2011. The industry has been plagued by rising costs and labour unrest in its South African heartland, including a heavily damaging five-month strike in 2014 and the notorious police shooting of 34 protesters at Lonmin’s Marikana mine in 2012.
I can understand those throwing in R100 or R10k or R100K at 94% discounted prices, but even they are set to lose everything in the short term.
 

Kosmik

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Crazy, why would anyone ever want to invest in this?

I can understand those throwing in R100 or R10k or R100K at 94% discounted prices, but even they are set to lose everything in the short term.
Because they appear to have a plan. If you read further in the articles, they talk about the discount being used to create capital and then the likelihood of raising further capital via banks. I suspect ( my tinfoil hat ) that they will use that capital to move operations out of South Africa and go elsewhere where the labour is less problematic and start again. The basic fact of the matter is that industries still use platinum in a lot of processes and it is a finite resource. Unless those processes can use alternate metals, it should, eventually, recover. And if it recovers even a tiny bit, PROFIT!
 

Garson007

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Lonmin has to fail. You cannot come out of a commodity price glut without companies failing. A big company has to fail and that ordained company is Lonmin. #LonminMustFall
 

Kosmik

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Lonmin has to fail. You cannot come out of a commodity price glut without companies failing. A big company has to fail and that ordained company is Lonmin. #LonminMustFall
Remember that when people and families are starving due to lack of jobs.
 

SauRoNZA

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Mostly the rights split but also some folks that are extremely unhappy.
So what happens now if you don't exercise your rights? Do the current shares simply get converted to more new shares or do they force your hand and cash them out?
 
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gimpex

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Feb 19, 2015
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Also in at 29 - just because ;).

Worth a punt.

Risk is one fancy dinner for the family.

Upside .... Well. Who knows
 

R13...

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Aug 4, 2008
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Impala platinum shares down 71%

May as well get some Lonmin @29c
That share was R230 5 years ago and has been steadily decline ever since. I doubt it'll ever return to its former glory
 
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