The LONMIN share price thread

terencej said:
I will stick it out till end of Jan when Lonmin has had its annual Shareholders meeting and production report. I want to see where this company is actually going.
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Also this

Jan/Feb or R1

Which ever comes first
 
Thor187 said:
True. But I cannot wait anymore :sick:

I want to get out.

Side Note:

How will the dilution effect us who did not take the rights issue?
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as an example: Previously Lonmin was worth R3.60 but after the rights issue that same share is now worth 21.5c 94% dilution.

A person that owned 100 shares at 3.60 (R360) before the rights issue would now own 100 shares at 21.5c. After consolidation (1-100) that same person would own 1 share at R21.50 at current prices.

If you owned shares at R3.60 you would have lost 94% of your value if you did not take up the rights issue.
 
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Jakes147 said:
as an example: Previously Lonmin was worth R3.60 but after the rights issue that same share is now worth 21.5c 94% dilution.

A person that owned 100 shares at 3.60 (R360) before the rights issue would now own 100 shares at 21.5c. After consolidation (1-100) that same person would own 1 share at R21.50 at current prices.

If you owned shares at R3.60 you would have lost 94% of your value if you did not take up the rights issue.
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Ahhhh, so these of us ( me) who have the shares at 29 cents won't be affected as badly, which if I understand you correctly won't suffer much come thursday
 
Thor187 said:
Ahhhh, so these of us ( me) who have the shares at 29 cents won't be affected as badly, which if I understand you correctly won't suffer much come thursday
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Let's put it this way, if you do not want to suffer a total loss of your investment, you need to be out of this investment come Wednesday.
 
Toothless said:
Let's put it this way, if you do not want to suffer a total loss of your investment, you need to be out of this investment come Wednesday.
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That is the plan, provided I have a profit, because I am stubborn and will not exit in the red :D
 
Does not look good for Lonmin. It broke the 22c barrier, so 21c - 20c is a big possibility some time today still.

image.png

There is a big possibility people will not be let out of this investment this week...
 
Toothless said:
Let's put it this way, if you do not want to suffer a total loss of your investment, you need to be out of this investment come Wednesday.
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Only if you're looking at short term wham bang thank you ma'am. They got the money they need to be able to restructure their debt and the company. The only way we see if they pull through is how all that pans out. It is still risky as they keep going back to market with helm in hand so it may be it doesn't work out.
 
R13... said:
Only if you're looking at short term wham bang thank you ma'am. They got the money they need to be able to restructure their debt and the company. The only way we see if they pull through is how all that pans out. It is still risky as they keep going back to market with helm in hand so it may be it doesn't work out.
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Yes, I totally agree with you. But, we are looking at short term here.

Lonmin is not a good long-term investment opportunity. I do not see the company existing for too long. Main reason for this is bad management within Lonmin, political influences in SA and then naturally the workforce with continuous unrealistic wage demands, labour unrest, strikes, etc.

Lonmin is done. You will lose all your money if you decide to invest in the long term.
 
The rights buy-back is .21c so that means the stock price should drop below that but resurface sometime after the buyback.

I assume the above
 
Thor187 said:
Ahhhh, so these of us ( me) who have the shares at 29 cents won't be affected as badly, which if I understand you correctly won't suffer much come thursday
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Based on the pre-rights issue share price the shares are probably worth about 27c/each. Don't expect it to go much higher than that.

Source:http://www.moneyweb.co.za/mny_sens/lonmin-plc-lonmin-plc-us407-million-rights-issue/

The UK Issue Price of 1.00 pence per New Share, which is payable in full by Qualifying Shareholders (other than

Qualifying South African Shareholders) on acceptance by no later than 11.00 a.m. (London time) on 10 December

2015, represents, in effect:

– a 93.85 per cent. discount to the closing price of an Existing Share; and

– a 24.50 per cent. discount to the theoretical ex-Rights price of an Existing Share,

in each case based on the closing middle-market price of 16.25 pence on the London Stock Exchange on 6 November

2015, the last business day prior to the publication of the Prospectus.

The SA Issue Price of ZAR0.214 per New Share represents:

– a 94.28 per cent. discount to the closing price of an Existing Share; and

– a 25.96 per cent. discount to the theoretical ex-Rights price of an Existing Share,

in each case based on the closing price of ZAR3.74 on the JSE on 6 November 2015, the last business day prior to the

publication of the Prospectus.
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Thor187 said:
Also this

Jan/Feb or R1

Which ever comes first
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If lonmin is trading at R1 come Jan/Feb then they will be closed by March.
By the end of December the Lonmin shares will be consolidated 1-100. So for every 100 shares you own right now you will own 1 share at +- R22 after the consolidation.

So hopefully the share will be trading at R22-25 come January.
 
Jakes147 said:
If lonmin is trading at R1 come Jan/Feb then they will be closed by March.
By the end of December the Lonmin shares will be consolidated 1-100. So for every 100 shares you own right now you will own 1 share at +- R22 after the consolidation.

So hopefully the share will be trading at R22-25 come January.
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Wait what?
 
Thor187 said:
Wait what?
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.
Consolidation
A very large number of New Shares will need to be issued under the Rights Issue. As a result, it is expected that the
number of Shares in issue following the implementation of the Rights Issue will mean that a small movement in the
Company's share price could result in large percentage movements and considerable volatility.
In order to address this, Shareholders will be asked at the General Meeting to approve the Consolidation of the
Shares in issue at the Consolidation Record Date. The Consolidation will reduce the number of Shares in issue on the

18
Consolidation Record Date on the basis of a ratio of existing Shares to post-Consolidation Shares (the "Consolidation
Ratio"), determined with a view to ensuring that the Consolidation results in a share price more appropriate for the
Company and more attractive to a greater number of investors. The Directors have determined that the
Consolidation Ratio will be 100:1.
If approved, it is expected that the Consolidation will be implemented after the allotment of New Shares pursuant to
the Rights Issue.
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Jakes147 said:
Consolidation
A very large number of New Shares will need to be issued under the Rights Issue. As a result, it is expected that the
number of Shares in issue following the implementation of the Rights Issue will mean that a small movement in the
Company's share price could result in large percentage movements and considerable volatility.
In order to address this, Shareholders will be asked at the General Meeting to approve the Consolidation of the
Shares in issue at the Consolidation Record Date. The Consolidation will reduce the number of Shares in issue on the

18
Consolidation Record Date on the basis of a ratio of existing Shares to post-Consolidation Shares (the "Consolidation
Ratio"), determined with a view to ensuring that the Consolidation results in a share price more appropriate for the
Company and more attractive to a greater number of investors. The Directors have determined that the
Consolidation Ratio will be 100:1.
If approved, it is expected that the Consolidation will be implemented after the allotment of New Shares pursuant to
the Rights Issue.
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I am such a noob.
I am lost, where did you get this?

I currently have 20K shares @ 29 cents average
 
Sounds to me like you need to start picking out the colour of your new Ferrari Thor
 
Thor187 said:
I am such a noob.
I am lost, where did you get this?

I currently have 20K shares @ 29 cents average
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If I understand correctly, you will then have 2000 shares, and at, say R21 per share, your value will be R42,000. At 29c average, you would have invested about R5,800. But, this is not necessarily what will happen though.

Right?
 
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