16 May Lonmin to move head offices following HY loss
South Africa-focused miner Lonmin (LSE:LMI) will move its head offices from Johannesburg to its Marikana operations in a cost-cutting strategy.
The platinum producer reported a half year operating loss of US$199 million, compared to a loss of $21 million the previous year, as the firm was hit by higher costs and lower production levels.
Lonmin also revealed a $146 million write down due to the strengthening rand against the dollar, which has pushed the company closer to breaking its debt covenants.
However, the firm hopes the corporate move to its Marikana operations in Rustenburg, which accounts for 95% of Lonmin’s output, will save the company millions of rand annually.
Chief executive Ben Magara said: “For me it’s really about getting closer to the operations and giving support to our management teams.”
The London-listed miner also announced plans to cut spending for the rest of 2017, to a range of $105.1 million to $112.6 million.