GAME OF LOANS
Shanduka’s original loan was £200m (just over $300m or R2.3bn at the time), but at the September 2014 year-end, Shanduka owed Lonmin $417m (R4.58bn at the exchange rate at the time). This would be well over R5.5bn now due to the rand’s devaluation.
This debt arises from a deal in mid-2010 where Shanduka acquired 50.03% of Incwala Resources, which owns 18% of Western Platinum, 18% of Eastern Platinum and 26% of Akanani, giving Shanduka an effective 9% stake in Lonmin.
Shanduka’s investment was facilitated by the R2.3bn loan raised by Lonmin − and a R300m equity injection by Shanduka. This was followed by a further R175m loan from Lonmin.
Lonmin spokesperson Sue Vey confirmed for the 29 October issue that advance dividends to Incwala have been R1.129bn to date, including R228m in the 2015 financial year. She also confirmed that no other shareholders have been given advanced dividends. The advanced dividends were paid in years in which Lonmin did not declare dividends to ordinary shareholders.
The loans to Shanduka to date include the £200m (R2.3bn) original loan in 2010 and a R175.5m preference share subscription by Lonmin in Lexshell 806 in 2011.
Loans to Incwala of R510m include R80m in 2011, R110m in September 2013, R160m in March 2014 and R160m to service its funding requirements in 2013. Vey would not comment further this week.