Lonmin rallies on $800m cash-raising plan


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The Independent Online

Lonmin has unveiled plans to raise $800m (£498m) in a rights issue and to change the terms of its debt facilities.

Shares in the South African platinum miner, which is scrambling to avoid breaching its loan covenants next year, rose 33.5p to 513.5p on the news. It is launching the rights issue following a violent strike at its Marikana mine in South Africa that left 34 dead and halted operations for six weeks. It said the lost production would push up debt levels "significantly" over the coming months, putting it in danger of breaching its covenants next year unless it can raise additional equity.

Lonmin, which has amended its deal with lenders to remove profits-related covenants, said its miners have returned to work.