MARC ELLIOTT | INVESTEC
We understand that management will ramp up processing activities regardless of miners returning to work as it has the staff to do so, and this enables cash flow generation. We expect it to take around two weeks to ramp processing back up, whilst mining activities would probably take six to eight weeks.
RICHARD KNIGHTS | LIBERUM
The results came well below even our own bearish estimates at the bottom of consensus. Going forward the working capital required for ramp up will likely push Lonmin into net debt and if a resolution of the strike does not come in a reasonable time, the company will not remain a going concern.
STEVE SHEPHERD | JP MORGAN
The real crunch, in our view, will come once the strike is resolved and workers report back for duty. By our estimates, it could take up to three months to resume normal operations. During the ramp up, it will have 100 per cent of costs with limited revenue.