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Breakingviews: Lonmin needs to go big...or go away

Thursday, August 23, 2012 - 04:24

Aug. 23 - Lonmin has to get out of its vicious debt circle to secure the future, but if investors don’t back it the outlook is very bleak , says Reuters Breakingviews assistant editor Robert Cole.

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Dan -- companies and nations off today's topic some breaking news London faces a bleak future without major investment. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Assistant editor of a -- molding high Roberts are. Right it doesn't look good in its presumably from Norman Tom Watson will do what is what is a potential solution to this. But we think that you involvement is -- -- -- -- -- -- on the sole. Go -- frankly. -- -- -- -- to underestimate the that's the difficulty of the the problems that it places in South Africa but front. Leave these. -- times that they. Secondly compared with the difficulties in South Africa and it's look -- is are suffering as well a woman asked to respond to this situation but we think that. They have the guts to -- -- on right he's a loan you money. It might be able to get itself out of a very very difficult circle of his very very difficult vicious circle and and if it could raise money and that's a very big day. It's all right the management a question here it is the index is the investors have to step up with the -- -- the -- -- -- they don't -- the absolute. And -- will with a little emblem and couldn't possibly do rights should not -- -- -- wooden bucket and one can understand why that be very cautious. One could also -- that actually if -- doesn't do something odd case if it doesn't stand on the company and give it the investment it needs. Unit then got to look at the rest of that investment going down down down the -- says. -- a big investment now I think could break. -- vicious circle it could. And crucially to me that -- and can invest in new mines or refurbish its old mark page minus better. -- that means that the efficiency would go up. That means they can yes it's minus. Back to or at least give them not expect conditions. It's. Operational costs kind goes down and partly. That means it can secure future for itself. The way things are going at the moment when you must remember that even before these. A couple of events of last week long that was. Operationally and financially Petit Petit stretched and if it doesn't do something -- Then I think the future that. -- is is pretty late but you know we all talk about the moral and responsibility. All of investors and so on we've been told about love about by NASA recently. This is a chance for investing -- look you know let's spin -- Dictate as well I think symbolically. You know if it passes well let's take some financial pipe. That would do it and we'll Samantha couldn't get kind of trickle down to the book doesn't say what we've got to take up I that think we're all in this together let's talk me out of it together. As well update I'm. Just very quickly go over this -- piecemeal -- you know what -- appetite -- you find -- of the great news website and and and owned by the -- is why. That. Possible solution necessarily but says way out of this -- basic. -- level electronic. Capable into the longer also by the authorities but not look at it effectively that's made it. It we know that's what went on the -- fungal grace who wants only in times from. That lenders. And you go outside to the the site of simplicity. You don't want to big. In my capacity. What they need to do is find some why. Trying to square outside cool circle and try and make it look as if both sides of winning. Actually they do need to buy time. And and the way that it kneels explain this is he's a fairly intricate way in which. Both sides combined time which will do both sides score a lot of good. -- -- mostly because Greece needs much times have possibly kind to get its -- After that as is that you can find some breaking news web sites. That is open Alfredsson Roberts for more happy inside what's our US breaking news show at every day 1230 Easton 1730. DSC. I'm -- problems is sources.

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Breakingviews: Lonmin needs to go big...or go away

Thursday, August 23, 2012 - 04:24