Lonmin Share Discussion Threads

[elvisrocks] 14/11/2016 14:32

I was certainly not fooled by Ben's PR today. Here is why: Results incorporate double the cost savings (otherwise known as squuezing the lemon dry) and a careful look at the results document and today's presentation shows average Pt Price achieved in the year was $978/oz on an average XR of a whopping R14.77/$. The year end close XR was R13.77/$ ....now wait for the punchine from Page 11 of the Presentation - a double whopping $256m of the operating profit was due to Fx benefits. Yes folks, that's like asking for a mega super-sized Triple Big Mac with extra chilly sauce at the Golden Arches, you read me correct there that was $256m - TWO HUNDRED AND FIFTY SIX MILLION DOLLARS.
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So with (i) costs going up, (ii) CapX stripped to the bone, (iii) Pt price expected to be subdued (iv) we start the 2017 year benchmarking against a Pt Price of $978 and XR of R13.77/$ and (v) FX profits unlikely to bail Ben out again, there is only one way profits are going and that is not up!
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I stand my ground at a price of £1.50 or less.

[careful] 14/11/2016 10:58

LMI seems to be run for the benefit of the workers and the community.
Shareholders are a lower priority except when they want some cash.
jeremy C would approve,but i will not be joining you yet, unless they fall a bit further.

[cudmore] 14/11/2016 10:51

Up we go!!!

[careful] 14/11/2016 10:39

thinking of buying back here until i saw the results.

only $7m profit and a recent pay rise all round.
no thanks, i will look elsewhere.

[davidlloyd] 14/11/2016 09:47

so does this one :-)

DL

[foxy22] 14/11/2016 08:19

David agreed

[harry_david] 14/11/2016 08:16

Far better figures than expected. Now positioned to fly when prices improve.

[foxy22] 14/11/2016 08:15

Results not bad adding to position

[saltaire111] 14/11/2016 07:26

Results look impressive.

Salty

[linton5] 14/11/2016 07:21

Fantastic turnaround at Lonmin,not been easy but good stuff and long term hold

[csmwssk12hu] 13/11/2016 19:27

Maybe in general there is a movement out of miners, many miners have dipped since late Thursday morning, it's been a good year for them, right now Christmas is coming so focus will move to retailers and suppliers, by January focus will return imho dyor, tomorrow will be interesting though

[elvisrocks] 11/11/2016 18:16

There is something rather obvious that we are all missing, no it's not the 4% fall in Pt Price today. Lonmin are paying R400m (c. $27m) for the extra 42.5% share in Pandora that produced 37,000 Pt ozs last year, equivalent to c. 5% of the current projected 700k ozs, or, valuing the full 100% worth of these ozs (of quality mining assets) would be 20*$27m or c. $540m, $140m over last year's RI
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, In other words, mining 700k ozs is current valution of $540m (inclusive of a $400m cash injection), so it's not hard to understand why Lonmin is overvalued at the moment - £570m (Pounds) not the $540m (Dollars) that it should be, I.E. sharp drop is coming into the low-mid £1.50 per share. Not says me, but what the consensus broker forecasts are saying. Divide £1.95 by an XR of 1.25 sounds about right, thus sell is what everyone is saying.

[foxy22] 11/11/2016 17:29

Agreed very strange price movement

[gilesy911] 11/11/2016 15:25

Results Monday then...

[cudmore] 11/11/2016 14:56

Worth a punt at £1.85 so topped up. Very strange share price movement considering their RNS this morning

[cudmore] 11/11/2016 13:05

Really strange!! It goes up and down like a prossies knickers here!

[ajmace] 11/11/2016 13:00

Not gone down very well at all, has it?

[r72] 11/11/2016 12:48

Cudmore - seems like it's had the reverse effect!

[cudmore] 11/11/2016 10:40

RNS regarding further 42.5% stake in Pandora. Great news IMHO. Should see these up once the news sinks in.

[abryer] 11/11/2016 10:03

Anyone have platinum producer THS on their radar? I was going to have a play when they listed in June, gutted I didn't.

[redbaron10] 10/11/2016 16:46

Well that settles that.The market has decided after Mr Trumps comments to in effect raise rates without the Fed's say so.With the 2 5 and 10 year bond yields where they are and the very high dollar index,we don't need to worry too much about 13-14 Dec.now

[foxy22] 10/11/2016 13:09

I think rrs is a bit manipulated....

[redbaron10] 10/11/2016 11:23

Looking at RRS for another entry point now.7% drop off is nuts