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The LONMIN share price thread
- Thread starter snoopdoggydog
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- lonmin shares
This will not keep Lonmin afloat. Lonmin is dying and I do not see the company living longer than the next year. The only advantage SA has, is that they can take over Lonmin, cancel mining rights and issue it to a new Chinese company that will take over its businesses here. Investors already lost everything.
Drifter
Honorary Master
Lonmin says $400m rights issue undersubscribed
JOHANNESBURG – Beleagured platinum producer Lonmin said on Friday its deeply discounted $400 million share issue was undersubscribed with about 71% taken up.
The company, which is seeking cash to stay afloat, said it had received acceptances for 19 billion new shares as of December 10 out of 27 billion shares it is selling to shareholders at 1 pence each.
The rights issue was underwritten by HSBC, J.P. Morgan Cazenove and Standard Bank. Lonmin said they now need to find subscribers for the balance of nearly 8 billion new shares by no later than December 14.
JOHANNESBURG – Beleagured platinum producer Lonmin said on Friday its deeply discounted $400 million share issue was undersubscribed with about 71% taken up.
The company, which is seeking cash to stay afloat, said it had received acceptances for 19 billion new shares as of December 10 out of 27 billion shares it is selling to shareholders at 1 pence each.
The rights issue was underwritten by HSBC, J.P. Morgan Cazenove and Standard Bank. Lonmin said they now need to find subscribers for the balance of nearly 8 billion new shares by no later than December 14.
Ianf1
Expert Member
If the rights issue was underwritten (guaranteed by the underwriters) why does Lonmin have to find subscribers for the 8 billion shares, that is the underwriters problem and not Lonmin!
Or has underwriting changed in the last few years?
The Philosopher
Expert Member
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ANC is having a press conference at 1pm. I wonder what is going to be about. Rumors are they they will remove Zuma as president.
Solitude
Executive Member
How does this affect the Lonmin share price?
Even if Zuma is removed, this will not affect Lonmin at all.
One of Lonmin's biggest problems in terms of revenue losses is wage demands, violent strikes, etc. In order for Lonmin to find any benefit in SA, the SA government would foremost need to stop people's rights to strike and and demand wage increases. Mining companies need a climate where they can benefit from operations.
This will only be the first step the government needs to take, and this is the first that never will happen.
Lonmin is dead in the water, there is no chance for survival at all.
Solitude
Executive Member
I was asking because he posted it in the Lonmin thread. I think he may have posted it in the wrong place.@MyANC_ #ANCNWC held an Extended National Working Committee meeting 14/12/15z Members of the media are invited to a media briefing on the outcomes
TofuMofu
Honorary Master
Here is the problem with Platinum mining across the globe, but specifically more so for Lonmin.
Lonmin has not yet hit rock-bottom, it will still fall to single digits in the next few weeks or months, before the company finally will delist and probably soon after that close down operations totally.
For now, there are just too many Platinum players in the world market. There is not enough demand. Some of these players need to fall and get out of the market. Currently, Lonmin is the first and foremost candidate for exiting the market. In fact, all other players are betting on this and hoping for this to happen.
So, for now, things in this mining sector specifically is set to get worse before it starts getting better. The only question is, who will be the remaining players when everything starts picking up again? I am willing to bet it will not be Lonmin.
TofuMofu
Honorary Master
So you're saying get out while I have some money left?
Been saying that the past 3 weeks.
If you don't mind losing your money, then hold on to it and see what happens. But I am sure nothing good will come from Lonmin.
Drifter
Honorary Master
Watched an insert on Stock Watch on DSTV where they discussed shares in mining companies. The consensus from the panel is that shares in mining companies dont glitter anymore and it's perhaps time now to invest in different portfolios. They were all dumping their mining shares. A bit of doom and gloom for SA.
TofuMofu
Honorary Master
How much did you put in, if I may ask?
I bought at 49c and paid R2500 for mine. Now it's not even worth half that so I'm a bit on the negative side lol