| Wed 1 Oct 2008, 11:59 | | LON - Lonmin Plc - Withdrawal of Xstrata`s pre-conditional proposal |
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LON
LOLMI
LON - Lonmin Plc - Withdrawal of Xstrata`s pre-conditional proposal
Lonmin Plc
(Incorporated in England and Wales)
(Registered in the Republic of South Africa under registration number
1969/000015/10)
JSE code: LON
Issuer Code: LOLMI & ISIN: GB0031192486
("Lonmin")
Withdrawal of Xstrata`s pre-conditional proposal
1 October 2008
The Board of Lonmin Plc ("Lonmin" or the "Company") notes the statement made by
Xstrata plc ("Xstrata") this morning that it has withdrawn its pre-conditional
proposed offer for the Company.
Lonmin believes that the current prices of platinum and other PGMs have been
substantially impacted by forced selling of platinum investments, physical
inventory selling by automotive companies and negative sentiment on the economic
outlook and supply-demand dynamics. While these factors have significantly
depressed prices, the Board remains confident in the longer-term demand
fundamentals for platinum and other PGMs.
Lonmin has long-life and high quality assets and is the lowest-cost integrated
producer of PGMs in the Bushveld. These significant and fundamental competitive
advantages ensure that Lonmin is better positioned than other PGM producers in
the Bushveld to withstand the challenges presented by any period of lower PGM
prices. As previously announced, Ian Farmer, Lonmin`s new CEO, is leading a
review of the Group`s operations focused on improving performance and maximising
value for Lonmin shareholders from our unique and highly attractive long-term
assets.
Lonmin Chairman, Sir John Craven, said: "Xstrata`s attempt to acquire Lonmin
highlights the fundamental long-term value of Lonmin`s business and the scarcity
of large scale opportunities to enter the PGM market.
"Although recent unprecedented developments in world financial and economic
markets are having a substantial impact on PGM and other commodity prices, the
long-term demand fundamentals for platinum and other PGMs remain positive.
Lonmin has a high quality proven resource base of reserves and is the lowest-
cost integrated producer of PGMs in the Bushveld. These attributes represent
even more significant competitive advantages if platinum and other PGM prices
remain at their current levels.
"We will continue to run Lonmin in the interests of all shareholders."
Further information for shareholders
For the nine months ended 30 June 2008, Lonmin reported sales of 469,233 ounces
of platinum at an average realised price of US$1,738 per ounce. Lonmin is
confident of achieving its guidance of platinum sales for the 2008 financial
year of around 725,000 ounces. In recent weeks there have been material declines
in the spot prices of platinum and the other PGMs, which Lonmin expects will now
be reflected in updated market forecasts.
Lonmin will publish its Q4 Production Report on 30 October 2008 and will provide
an update on 2009 production plans at that time.
Lonmin will publish its Final Results on 18 November 2008.
Enquiries
Lonmin: +44 (0) 207 201 6060
Alex Shorland-Ball
Cardew Group: +44 (0) 207 930 0777
Anthony Cardew +44 (0) 7770 720 389
Rupert Pittman +44 (0) 7976 249 289
Financial Dynamics (South Africa) +27 (0) 21 487 9000
Nic Bennett +27 (0) 766 877 429
Date: 01/10/2008 11:59:42 Produced by the JSE SENS Department.
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