Loading ...South African platinum producer Lonmin (LON:LMI), the world’s third largest, said Monday it expects to take an impairment charge of about $2 billion triggered mainly by weak metal prices and rising costs, when posting annual results next week.
The company, still hurting from a lengthy strike that crippled its mines last year, revealed in October extreme measures to stay afloat, such us planned layoffs of 6,000 people and its intention to raise $400 million in a rights issue of new shares for debt repayments.
“The impairment charge is primarily driven by lower PGM prices and the business plan which has an impact on future discounted cash flows over the life of mine business plan across the group’s operations,” it said in a statement.
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