South Africa: British Platinum Company to Reduce Overhead Cost, Monetize assets to Preserve Cash

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Image: ifc.org

Lonmin Plc, the British producer of platinum group metals operating in the Bushveld Complex of South Africa, has said it would cut cost and monetize select assets, including the sale of the excess processing capacity of up to 500,000 platinum ounces per year, to maximize cash from processing operations and preserve cash.

The company said it planned to reduce annual overhead costs by at least 500 million rands ($37.3 million) by Sept. 30, 2018, through right-sizing of operations.

This measure was taken due to the inflationary pressure mounted on the platinum mining industry alongside the subdued South African economy, the company said on Monday.

Lonmin Plc said its current cash position made it hard to sustain capital expenditure into its Rowland unit, and that it would look for funding partners and “preserve” about 5,000 jobs.