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Reuters reported an opinion column which claims Lonmin (LSE:LMI) needs to go big or get out of the platinum game after violence at its Marikana platinum mine as it faces financial struggles.
Reuters reported an opinion column which claims Lonmin (LSE:LMI) needs to go big or get out of the platinum game after violence at its Marikana platinum mine as it faces financial struggles.
As quoted in the market news:
Lonmin needs to go big, or go away. The world’s third-biggest platinum producer was stretched, financially and operationally, before last week’s deadly violence at its mine in South Africa left 44 people dead and halted production. Now in imminent danger of breaching debt covenants, Lonmin badly needs to regain the initiative. A jumbo rights issue would be risky. But without a big slug of new funds, the miner’s future looks grim.