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* To divest 23.9 percent stake in Lonmin via share distribution (Adds details on share distribution and capex cut) LONDON, Feb 11 (Reuters) - Miner and commodities trader Glencore plans to divest its stake in platinum producer Lonmin and to cut capital expenditure this year in response to market volatility, it said on Wednesday as it reported increased copper and coal output. Like its peers, Glencore has been hit by a rout in prices of commodities such as copper, coal and oil. The company's shares have fallen by more than 9 percent so far this year. On Wednesday it said it would cut capital expenditure for this year to between $6.5 billion and $6.8 billion from a previously expected $7.9 billion. "Responding to the volatile market backdrop, we have comprehensively reviewed the planned level of sustaining and expansionary capex in 2015 ... with reduced spend from across the broad portfolio," the company said. Glencore also said it intends to divest its 23.9 percent stake in Lonmin, inherited through the acquisition of Xstrata in May 2013, in the first half this year. It proposes to do so through a distribution of its shares to Glencore shareholders. The London-listed company said it sees a distribution of shares as a better option than a sale at this point. Platinum prices have been stubbornly low in the last year, weighing on the value of platinum assets. Lonmin said in a separate statement that it "views Glencore's proposal as a constructive way forward". (Reporting by Silvia Antonioli; Editing by David Goodman and David Holmes)
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Lonmin PLC.
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PRODUCER |
CODE : LMI.L |
ISIN : GB0031192486 |
CUSIP : 54336Q203 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Lonmin is a gold and platinum producing company based in United kingdom. Lonmin produces gold, platinum, palladium and rhodium in South Africa, and holds various exploration projects in Canada, in Gabon, in South Africa and in Tanzania. Its main assets in production are PANDORA JV, LIMPOPO, MARIKANA, EASTERN PLATINUM (EPL) and KAREE MINE (WPL) in South Africa and its main exploration properties are LUWUMBU in Tanzania, PANTON in Australia, MESSINA PLATINIUM and WESTERN PLATINUM in South Africa and WINDY LAKE in Canada. Lonmin is listed in Germany, in United Kingdom and in United States of America. Its market capitalisation is GBX 21.4 billions as of today (US$ 25.0 billions, € 22.3 billions). Its stock quote reached its highest recent level on August 28, 2009 at GBX 9 964.65, and its lowest recent point on June 28, 2019 at GBX 75.60. Lonmin has 282 784 288 shares outstanding. |