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Thread: World's number 3 Platinum producer may go bankrupt

  1. #1

    Default World's number 3 Platinum producer may go bankrupt

    Lonmin, world's No.3 platinum miner, urged shareholders to approve a $400 million equity cash call at a meeting next week, saying in a document posted on its website the injection was crucial to its survival.

    Lonmin's shares in London fell 6.8 percent to 23.93 pence by 1223 GMT. The Johannesburg-listed stock was down by 8 percent at 5.00 rand.

    Battered by strikes, rising costs and weak platinum prices, Lonmin said last month it planned to raise the money and another $370 million in bank loans to refinance debt due in May 2016.

    The firm, founded in 1909 as the London and Rhodesian Mining and Land Company, said that if shareholders do not approve the rights issue at a meeting on Nov. 19, lenders would not provide the loans to push back the maturity of the 2016 debt to 2020.

    "As a result, the group may have to cease trading at some point between December 2015 and May 2016 and shareholders could lose the entire value of their investment," the company said on its website.

    http://www.cnbc.com/2015/11/04/

  2. #2

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    All the more reason to own physical and nothing else.
    You look like I need a drink.

  3. #3

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    Quote Originally Posted by Ronbo View Post
    All the more reason to own physical and nothing else.
    exactly.

    Golditiki2 +++

  4. #4

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    Actually, owning shares in a recycler could be even better. From page 8 of the presentation below: "cost per troy ounce to recover
    PGMs about $168 / Toz".

    http://www.novx21.com/documents/en/N...15_WEBSITE.pdf

    I don't see how the mines can compete.

  5. #5

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    Quote Originally Posted by Rhodium9000 View Post
    Actually, owning shares in a recycler could be even better. From page 8 of the presentation below: "cost per troy ounce to recover
    PGMs about $168 / Toz".

    http://www.novx21.com/documents/en/N...15_WEBSITE.pdf

    I don't see how the mines can compete.
    The recyclers will soon run out of material to recycle. 11% of used catalysts do not have any metal left in them and a further 12% have so little metal in them it is not worth recycling them.

  6. #6

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    Quote Originally Posted by Davidwd View Post
    The recyclers will soon run out of material to recycle. 11% of used catalysts do not have any metal left in them and a further 12% have so little metal in them it is not worth recycling them.
    Right ... Keep dreaming ...

  7. #7

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    I sell take off catalytic converters when I replace them, and the prices have tanked. Aftermarket cats now fetch next to nothing.

  8. #8

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    Quote Originally Posted by 4nineFine View Post
    I sell take off catalytic converters when I replace them, and the prices have tanked. Aftermarket cats now fetch next to nothing.
    Is that because newer cats contain less metal than older ones due to thrifting by the manufacturers or just because metal prices are depressed?
    How much metal is typically found in a cat? I have read several articles that imply that some can be completely empty of pgm if they have covered high mileage?

  9. #9

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    Quote Originally Posted by Davidwd View Post
    Is that because newer cats contain less metal than older ones due to thrifting by the manufacturers or just because metal prices are depressed?
    How much metal is typically found in a cat? I have read several articles that imply that some can be completely empty of pgm if they have covered high mileage?
    That's what I was implying in reference to the aftermarket cats. I'm not sure how much pm content is in a typical converter but apparently they are finding ways to use less. Couple that with falling pm prices and we have the current situation.

    On a physical note, I do not own any Pt for investment purposes. I would like some, but my other holdings are not at a point where I am comfortable branching out a bit. I've read the liquidity doesn't match up with gold or silver, and my OCD keeps me from dipping into fractional pieces. Pt Eagles do look really nice though.

  10. #10

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    I think until China is forced (you funny guy BA HA HA) to comply with smog controls you will not see any rise in the emissions use of Pt.
    You look like I need a drink.

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