Lonmin slashes jobs after the platinum price takes a poundingComments Off on Lonmin slashes jobs after the platinum price takes a pounding
Lonmin is struggling to adapt to a soft platinum market which has seen prices fall from above $1400 an ounce a year ago to below $1200 today.
That left the company with pre-tax losses of $118 million (£76.4 million) for the six months to March 31, although this improved on the same period last time when South Africa’s longest strike, stretching five months, crippled output.
Technical problems at its smelters also hindered production.
Alongside the job cuts, Lonmin has slashed capital spending to $160 million from the originally planned $250 million, although it maintained sales guidance of 730,000 ounces.
Chief executive Ben Magara said: “Long-term fundamentals remain strong but we are planning on the basis that these low… prices will persist for at least two years.”
He added that Lonmin was involved in “constructive dialogue through engagement with the unions to reduce costs”.