London-listed mining house
Shareholders are being offered 1.50 and 21 new shares for a block of 25 old shares. The proposed exchange would distribute 251 million (about US$356 million) to shareholders. A previous program of buy-backs on the open market paid out 99 million for 11.7 million shares.
Lonmin had US$523 million in cash at its year-end, Sept. 30. It made US$274 million (US$1.54 per share) on revenue of US$866 million, up from earnings of US$238 million (US$1.30 per share) on revenue of US$951 million in the year ended Sept. 30, 2000. The company benefitted greatly from the spike in prices of the platinum group metals over the year, as well as from a drastic fall in the exchange rate of the South African rand.
Lonmin’s disposal of operations outside the platinum group business accounted for the decrease in annual revenue. Continuing operations, which provided all the 2001 revenue, accounted for US$757 million in revenue in fiscal 2000.
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