Lonmin buys back shares

London-listed mining house Lonmin, unable to find an attractive acquisition in the platinum business, has decided to distribute some of its large cash reserve to shareholders in a buy-back.

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.

Print

Be the first to comment on "Lonmin buys back shares"

Leave a comment

Your email address will not be published.


*


By continuing to browse you agree to our use of cookies. To learn more, click more information

Dear user, please be aware that we use cookies to help users navigate our website content and to help us understand how we can improve the user experience. If you have ideas for how we can improve our services, we’d love to hear from you. Click here to email us. By continuing to browse you agree to our use of cookies. Please see our Privacy & Cookie Usage Policy to learn more.

Close