Tarrant, Scott, Major Discuss Lonmin’s Fundraising

Mineweb reported Lonmin (LSE:LMI) is attempting to raise $700 million from shareholders which Hilton Tarrant, Simon Scott and Peter Major discuss.

Cadiz’ Consultant, Peter Major said:

I think you’ve been dealing with mining houses too long, because $700m sounds like a helluva lot to me! It is big money. As you said, seven times eight, 56 – it’s more than that. It’s R6bn. This is big money and I really hope that government and the unions and the workers are reading all of these documents as thoroughly as we are because this is the kind of risk shareholders will have to put up with. Shareholders are being asked to put in at least $700m. And look at the capex that they expect to spend going forward – $175m Q10 and then $400m…and afterwards. This is real investment in South Africa, it’s creating jobs, sustaining jobs, but it’s big money and they are asking shareholders to put this up. So this is a risky business that needs all players to work together – government, labour and the shareholders.

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