DAM­AGE CON­TROL

Finweek English Edition - - INVESTMENT - Strik­ing min­ers

The Lon­min up­date has for now put to bed talk of the com­pany need­ing to raise more cash via another rights is­sue, but to a fair de­gree this has been achieved by slash­ing capex spend­ing. Ini­tially bud­geted at around $210m, it is now sit­ting at $100m, pretty much as a re­sult of the five-month strike. For a long time the plat­inum mines have been the darlings of the lo­cal min­ing in­dus­try, hav­ing sur­passed gold min­ing, but the strike hurt a great deal and the in­dus­try is go­ing to take some time to work out its fu­ture. We’re see­ing An­glo Amer­i­can Plat­inum ex­it­ing a num­ber of as­sets and Lon­min cut­ting capex. Only Im­plats of the big three is keep­ing quiet, but ex­pect an­nounce­ments from them sooner or later.

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