What’s Next for Lonmin After Return to Profits?

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Nov. 11 (Bloomberg) -- In today’s “Global Outlook,” John Meyer, partner at SP Angel, discusses the state of Lonmin as it tops its full-year profit forecast and looks at the challenges it faces in the future. He speaks on Bloomberg Television’s “The Pulse.”

Finding small mining companies and building them up.

That runabout is coming to an end.

It has been a tough 18 months.

It is with momentum.

A nice set of numbers.

Slightly below consensus forecast.

Still, both delivered.

There are no dividends for now.

There is the prospect for dividends next year or earlier.

There are unit costs that are above the basket prices.

They need to regain control.

It looks like they are.

Production is improving quite well.

I think, operationally, things are good.

They will be good at sorting out the social issues that affect the company.

The cost issue, how do you balance that?

He is clearly a man who knows a lot about the industry.

How big of a challenge is that?

It is not an easy challenge.

Platinum and coal had a good relationship in those areas.

They have gone around and talked to the workers in the hostile communities.

This is not something we have seen from other ceos.

The previous guys have come in from the outside.

It is much more in touch with the guys doing the job.

They have to work in teams and work well.

If you can get an extra 20% of production out of those guys, that will make a big difference.

There is the loss of performance last year in the run-up to the crisis.

We saw the violent manifestation.

Before then, the motivation was not there and teams were not working so well.

There are lots of incidences, he was unable to run a business and when he disappeared off the scene, he left a ceo who did a good job in a crisis situation.

He managed the business.

The other directors were nowhere to be seen.

Briefly, should we be holding glenn gore?

No, i don't think so.

Thank you very much.

This text has been automatically generated. It may not be 100% accurate.


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