Lonmin Loses Half Its Value

Bloomberg reported Lonmin Plc (LSE:LMI) lost half its value in the past year, cut its estimates of production growth and capital spending after metal prices fell.

As quoted in the market news:

Lonmin, the world’s third-largest platinum producer, said it’s reviewing financing options.

Prices are down 22 percent in a year, while labor and power costs in South Africa, owner of the most reserves, rose faster than inflation. Anglo American Platinum Ltd. (AMS), the largest producer, cut spending after posting a loss this week and idled its Marikana mine, jointly owned with Aquarius Platinum Ltd. (AQP) In addition, Aquarius suspended its Blue Ridge and Everest mines.

Click here to read the full Bloomberg report.