RNS Number : 9908Z
Lonmin PLC
30 September 2009
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Lonmin Plc
Update on Incwala Resources (Pty) Ltd
Lonmin Plc ("Lonmin" or "the Company") today provides an update regarding Incwala Resources (Pty) Ltd ("Incwala"), Lonmin's Black Economic Empowerment partner.
Lonmin confirms that discussions are on-going with the Historically Disadvantaged South African ("HDSA") shareholders of Incwala and the HDSAs' providers of finance regarding the future ownership of Incwala.
There can be no certainty that these discussions will be successfully concluded and, if no conclusion is reached, there is a possibility that Lonmin could be called upon under guarantees given at the time of the formation of Incwala in 2004. In these circumstances, these guarantees would be funded from Lonmin's existing bank facilities.
A further announcement will be made as and when appropriate.
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ENQUIRIES:
Investors / Analysts:
Rob Gurner + 44 (0) 207 201 6050
Head of Investor Relations
Media:
Cardew Group + 44 (0) 207 930 0777
Anthony Cardew / Rupert Pittman
Financial Dynamics + 27 (0) 11 214 2400 / 2410
Dani Cohen / Ravin Maharaj
Notes to Editors:
Lonmin was a key facilitator of the original BEE transaction with Incwala Resources in September 2004, and was a provider of certain vendor financing, third party loan indemnifications and related arrangements which enabled broad-based equity participation by HDSA shareholders in Lonmin's assets.
A substantial proportion of the HDSA shareholders' bank-funded debt and vendor-financed debt is due to mature in September 2009 and will require refinancing. If the HDSA shareholders are unsuccessful in their attempts to secure refinancing of their debts then it is possible that some or all of Lonmin's contingent liabilities in respect of such debts may crystallise. As at 31 March 2009, Lonmin recognised contingent liabilities associated with these arrangements of a maximum of R930 million, of which R177 million would not become payable until 30 September 2011, if at all. Further details of these contingent liabilities can be found in Note 10 on page 34 of Lonmin's 2009 Interim Report for the six months ending 31 March 2009.
However, it is also possible that alternative solutions involving the participation of Lonmin could be found, some of which could involve an economic cost to Lonmin in excess of the currently recognised contingent liabilities. Such solutions will only be considered if the Board believes they will promote the success of Lonmin for the benefit of its shareholders.
This information is provided by RNS
The company news service from the London Stock Exchange
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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. |