| Low Prices And Mounting Costs Slam Platinum Producers | |
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The reason for the closures is simple economics. With Lonmin admitting that the company is losing money on an operating basis, even before interest, tax, depreciation and amortization. This is a sign of the times in the platinum business. With prices for the metal having dipped below $1,000 per ounce this month, marking the lowest price seen since the depths of the financial crisis in late 2008. Related: Pessimism Amongst Oil Traders Reaches 5 Year High Miners in world-leading producer South Africa are especially feeling the pinch. With factors like rising power and labor costs making it all the more difficult for operations here to remain in the black at lower metals prices. These cuts from Lonmin aren't huge on their own -- amounting to about 2% of global annual mine production. But if this is a sign of things to come, we could see more substantial reductions in output emerge soon. Especially if platinum prices remain at (or below) current levels. Here's to facing the axe, Dave Forest More Top Reads From Oilprice.com:
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Lonmin PLC.
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PRODUCER |
CODE : LMI.L |
ISIN : GB0031192486 |
CUSIP : 54336Q203 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Lonmin is a gold and platinum producing company based in United kingdom. Lonmin produces gold, platinum, palladium and rhodium in South Africa, and holds various exploration projects in Canada, in Gabon, in South Africa and in Tanzania. Its main assets in production are PANDORA JV, LIMPOPO, MARIKANA, EASTERN PLATINUM (EPL) and KAREE MINE (WPL) in South Africa and its main exploration properties are LUWUMBU in Tanzania, PANTON in Australia, MESSINA PLATINIUM and WESTERN PLATINUM in South Africa and WINDY LAKE in Canada. Lonmin is listed in Germany, in United Kingdom and in United States of America. Its market capitalisation is GBX 21.4 billions as of today (US$ 25.0 billions, € 22.0 billions). Its stock quote reached its highest recent level on August 28, 2009 at GBX 9 964.65, and its lowest recent point on June 28, 2019 at GBX 75.60. Lonmin has 282 784 288 shares outstanding. |