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The third largest platinum mining company, Lonmin Plc (LSE:LMI), is raising $400 million in a share sale for the second time in three years, Bloomberg reported. The move comes as platinum group metals prices remain under pressure.
The third largest platinum mining company, Lonmin Plc (LSE:LMI), is raising $400 million in a share sale for the second time in three years, Bloomberg reported. The move comes as platinum group metals prices remain under pressure.
As quoted in the publication:
The company, down 84 percent in London trading this year, also agreed to new debt facilities totaling $370 million that mature in 2020, it said in a statement. The shares dropped 0.9 percent to 28.75 pence in London on Wednesday, giving a market value of $261 million.
The planned sale follows $817 million of shares sold in 2012 after protests at Lonmin’s Marikana mine in South Africa led to police killing workers. The company’s stock slumped 42 percent in 2014, when mineworkers held a five-month strike before agreeing to above-inflation wage increases, and extended the slide this year as platinum prices touched the lowest since 2008.