Lonmin chairman buys after cash-call

Lonmin chairman Roger Phillimore has raised his stake in the platinum miner on the same day the group announced a rights issue to raise $457m.

Phillimore bought 15,000 ordinary shares at an average price of £14.38 to raise his stake to 18,614 shares.

The firm said today it will issue just over 35m shares at 900p a time in a 2 for 9 rights issue. Net proceeds of the issue will be used to reduce its drawn borrowings under its existing credit facilities, which will remain available to be re-drawn, otherwise reduce its indebtedness, and/or be held as cash.

Subscribe to MoneyWeek

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

Get 6 issues free

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

It also announced an interim loss of $196m compared with a profit of $396m over the same period previously, as revenue slumped to $436m from $907m.

The results were affected by a sharp fall in platinum prices, which averaged $699 an ounce during the period, compared with $1,558 last year.

Top Director Buys

Value: £250,000

Value: £215,775

Value: £184,776

Value: $75,000

Value: £34,493

Value: £30,112

Value: $28,756

Value: £27,375

Value: £24,817

Value: £18,300

Top Director Sells

Value: £4,343,183

Value: £868,653

Value: £19,800