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Daily Digit: Miner Lonmin's profit jumps

Monday, May 13, 2013 - 00:58

May 13 - Platinum miner Lonmin more than doubles first-half profit compared to a troubled 2012 but warns of challenging wage talks ahead. Hayley Platt reports.

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$54 million is today's daily digit - the pre-tax profit platinum miner Lonmin made in the first half of the year . It's double the amount the South African miner made last year pushing shares up over 5 percent. Lonmin is the world's third-largest platinum producer. But last year a series of violent strikes left dozens dead and disrupted production, costing the firm millions of dollars. Money was so tight at one point Lonmin had to tap shareholders for cash. The soaring cost of labour, electricity and raw materials have been a major problem for the industry as a whole. At 5.8 % Lonmin's weren't as bad as expected. But as production ramps up and winter electricity tariffs kicks in that could change in the second half of the year. Fresh wage talks are also on the agenda, raising fears there may be more strikes to come.

Daily Digit: Miner Lonmin's profit jumps

Monday, May 13, 2013 - 00:58

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