Lonmin to breach debt covenants after violence

Troubled platinum miner Lonmin has said that it is looking at options to 'strengthen its financial structure', after a week-long violent protest culminated with dozens of employee deaths; the subsequent impact on production means that the company will breach its bank covenants, it announced on Tuesday afternoon.

Troubled platinum miner Lonmin has said that it is looking at options to 'strengthen its financial structure', after a week-long violent protest culminated with dozens of employee deaths; the subsequent impact on production means that the company will breach its bank covenants, it announced on Tuesday afternoon.

After rising strongly for most of the day, gains for Lonmin were pared late on after the miner revealed that just a third of its 28,000-strong workforce at the Marikana project have turned up for work. Nevertheless, the company assured that the situation on the ground now remains "calm".

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
MoneyWeek

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.