Shares in Lonmin (LMI) received a much-needed bump this week, after the embattled platinum miner’s lenders agreed to a pre-emptive waiver of two key banking covenants. Those debtors also gave the green light to the acquisition of the Pandora joint venture from Amplats, which Lonmin says will allow it to defer ZAR2.6bn (£145m) of capital expenditure while maintaining production at the Saffy shaft.
Investors also welcomed a reported $14m (£10.7m) fourth-quarter increase in net cash, although the deferral of tests of the group’s consolidated tangible net worth – due 30 September – will have garnered the greatest cheer. As a condition of the waiver, which remains in place until April 2018, Lonmin has agreed to cancel a revolving credit facility and leave another $200m line of credit undrawn.
