Workers’ strike blamed for drop in Lonmin’s revenue

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World’s No.3 platinum producer, Lonmin, admitted Monday that the first six months of the current financial year had been tough and overshadowed by the three-month-long wage strike at its Rustenburg, , operations.
Ben Magara, the CEO of Johannesburg-listed Lonmin, said while the was working around the clock to resolve the wage strike, it had taken early measures to avoid the “cash burn” that could be brought about by the strike action.
“(We have also taken a decision) to safeguard our great assets and protect our balance sheet integrity ahead of a safe and ramp when the strike ends; something we have demonstrated we excel in,” Magana said in a statement.
Platinum sales during the six months ended March this year sagged 19 percent to 263,675 ounces. Revenues during the period slipped $735 to $578 million during the period under review.
The company said despite these tough operating conditions, it continues to be self-assured about the increasing demand of platinum metals as the world will continue to be in need of the precious metal.
“Whilst we are going through a very tough period in terms of demand and , we remain optimistic on the future fundamentals and that the protracted strike may have brought that future nearer,” Magana said. (VENTURES AFRICA)