Miner strike drags Lonmin to full-year loss

Industrial action at South African mine Marikana had a significant impact on platinum miner Lonmin’s results, it said today.

The world’s third-largest platinum miner was hit by special costs of $755m (£473m) over the year, including $159m for the cost of the strike. This dragged it to a full-year pre-tax loss of $698m.

It lost 110,000 ounces of mined platinum during the strike, which started in mid-August.

As a result, over the year to September, platinum sales fell 2.6 per cent on 2011 at 701,831 ounces. Over the next year, Lonmin is forecasting sales of 660,000 ounces of saleable platinum.

Meanwhile, it today priced a $817m rights issue at a discount of 45 per cent to shore up its balance sheet after six weeks of industrial action.

Lonmin said it will issue nine new shares for every five existing, a total of 365m shares at 140p or ZAR19.5.