| Wed 1 Oct 2008, 13:15 | | GEN- Xstrata Purchase Of Lonmin Shares |
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JSE
GEN
GEN- Xstrata Purchase Of Lonmin Shares
XSTRATA PURCHASE OF LONMIN SHARES
Zug, 1 October 2008
Xstrata plc ("Xstrata") announces that it has today acquired 22,232,940 Lonmin
ordinary shares ("Lonmin Shares") at an average price of approximately GBP19.79
per Lonmin Share for a total cash consideration of approximately GBP440 million
($786 million). These acquisitions will be entirely funded through the Xstrata
Group`s debt facilities. The number of Lonmin Shares acquired today represents
approximately 14.2% of Lonmin`s issued ordinary share capital.
The Lonmin Shares acquired today together with those previously acquired by
Xstrata represent approximately 24.9% of Lonmin`s issued ordinary share capital
(38,939,421 Lonmin Shares). The Xstrata Group`s shareholding in Lonmin has been
acquired for a total aggregate cash consideration of approximately GBP991
million ($1,770 million).
Mick Davis, Xstrata plc Chief Executive commented:
"Xstrata`s purchase of an additional stake in Lonmin today provides us with a
significant shareholding in one of the world`s largest platinum producers. We
continue to believe the medium and long-term fundamentals of platinum are robust
and that the structure of the platinum industry remains attractive.
"Xstrata has today entered into a new three-year $5 billion multi-currency
revolving loan facility with a group of its relationship banks. The new
facility will be used to refinance existing debt and for general corporate
purposes and underlines Xstrata`s robust financial position and flexibility.
Xstrata remains well positioned to execute its strategy of growth and value
creation for shareholders from a broad range of growth options."
Ends
Xstrata contacts
Aura Financial
Claire Divver Michael Oke
Telephone +44 20 7968 2871 Telephone +44 20 7321 0033
Mobile +44 7785 964 340 Mobile +44 7834 368 299
Email cdivver@Xstrata.com Email michael@aura-
financial.com
Songezo Investors and analysts
Zibi
Telephone +27 11 250 0000 Hanre Rossouw
Mobile +27 82 303 8176 Telephone +44 20 7968 2820
Email szibi@Xstrata.co.za Mobile +44 7879 455 885
Email hrossouw@Xstrata.com
www.Xstrata.com
Notes to editors
About Xstrata
Xstrata is a global diversified mining group, listed on the London and SWX Swiss
Stock Exchanges, with its headquarters in Zug, Switzerland. Xstrata`s businesses
maintain a meaningful position in seven major international commodity markets:
copper, coking coal, thermal coal, ferrochrome, nickel, vanadium and zinc, with
a growing platinum group metals business, additional exposures to gold, cobalt,
lead and silver, recycling facilities and a suite of global technology products,
many of which are industry leaders. The Xstrata Group`s operations and projects
span 18 countries: Argentina, Australia, Brazil, Canada, Chile, Colombia, the
Dominican Republic, Germany, New Caledonia, Norway, Papua New Guinea, Peru, the
Philippines, South Africa, Spain, Tanzania, the USA and the UK. Xstrata employs
approximately 56,000 people, including contractors.
About Lonmin
Lonmin is the world`s third largest platinum producer with operations and growth
projects located in the Bushveld complex in South Africa, a country which
accounts for approximately 77% of global platinum supply. Lonmin`s operations
are fully integrated from mine to market and benefit from a substantial resource
base with a published life of mine in excess of 30 years and further growth
potential. Lonmin`s principal asset, the Marikana complex, is located some 10
kilometres from Xstrata Alloys` Wonderkop complex and within 40 kilometres of
Xstrata Alloys` head office.
For the year ended 30 September 2007, Lonmin`s profit before tax was US$705
million (US$396 million for the six months ended 31 March 2008) and as at 31
March 2008, Lonmin`s gross assets were US$3,859 million.
Date: 01/10/2008 13:15:01 Produced by the JSE SENS Department.
