Lonmin boss sells shares to finance house move

Ian Farmer, the chief executive of platinum miner Lonmin, has raised just over £233,000 in order to help finance a house purchase as part of his relocation to Johannesburg.

Farmer sold 15,000 shares at 1556.55p each. He still owns 65,323 shares in Lonmin.

The sale comes on a day when Morgan Stanley has raised its recommendation for the shares from underweight to equalweight after a share price decline.

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Recent interim figures showed Lonmin returning to profit in the six months to March 2010. However, yesterday Lonmin announced that its plans to get its Number One furnace in South Africa back fully on line had hit a snag.

The company said that the recommissioning process has suffered a setback in the form of a leak around a slag tap hole. The company estimates that this problem will add around 25 to 30 days to the commissioning process.

This news has knocked the share price and reduced the amount that could be raised from Farmer's share disposal.

Farmer has dual South African and British nationality. He first joined Lonmin in 1986 and became a board director in 2001. He took over as chief executive from Brad Mills in September 2008.

Top Director Buys

Axis-Shield (ASD) Director name: Mr Staffan EkAmount purchased: 5,000 @ 273.39p Value: £13,670

Lloyds Banking Group (LLOY) Director name: Mr Glen MorenoAmount purchased: 100,000 @ 55.98p Value: £55,980

Grainger (GRI) Director name: Mr Andrew R CunninghamAmount purchased: 20,000 @ 109.50p Value: £21,900

Capital & Counties Properties (CAPC) Director name: Mr Andrew J M HuntleyAmount purchased: 18,000 @ 111.85p Value: £20,133

Capital Shopping Centres Group (CSCG) Director name: Mr Andrew J M HuntleyAmount purchased: 6,000 @ 313.38p Value: £18,803

Top Director Sells

Group NBT (NBT) Director name: Mr Keith YoungAmount sold: 100,000 @ 275.00p Value: £275,000

Investec (INVP) Director name: Mr Peter ThomasAmount sold: 50,000 @ 493.00p Value: £246,500

Lonmin (LMI) Director name: Mr Ian P FarmerAmount sold: 15,000 @ 1,556.55p Value: £233,482