Lomnin’s decision to embark on the painful process of cutting cuts has convincingly been vindicated by the company’s half year results September 2015-March 2016.
The world’s third largest platinum miner got the flak from unions and the government for announcing that it would embark on cost cutting measure for its operations to remain sustainable. So far it has downsized its workforce by 4500.
As at March 31 2016, the company was in the black, with $114m, while it had a net debt of $185m as at 30 September.
Lomnin’s shareholders should be impressed having bailed out the company by injecting $400m.
The results have lightened the mood at Lomnin, with the Chief Executive Officer, Ben Magara, describing it as “a positive momentum”.” We have delivered on our promise to restructure and cut high-cost production,” said Magara in a statement.
The company reduced its forecast for capital expenditure for the full year to $105m from $132m.