Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : SOUTHERNERA (t.SUF) -- Ignore unavailable to you. Want to Upgrade?

To: gemsearcher who wrote (6371)	11/29/2000 4:19:55 PM
From: Gord Bolton	Read Replies (1) \| Respond to of 7235

Lonmin profit triples as platinum surges MARK BENDEICH, London \| Wednesday -------------------------------------------------------------------------------- SOUTH Africa's third largest platinum miner, Lonmin Plc, has tripled its annual pre-tax profit, almost doubled its dividend and said the good times should continue to roll. Lonmin raised its seven-year platinum production target by seven percent to 870 000 ounces and said the accelerated expansion would bring it close to being the world's second largest producer behind number one Anglo American Platinum. Lonmin said the expansion would require capital investment of $550m, but made clear that a virtually debt-free balance sheet and a spring tide of cash could comfortably fund this and other investments, including acquisitions. Lonmin's newly appointed chief executive, Edward Haslam, said he was "extremely optimistic" on the outlook for platinum prices and said tighter controls on car emissions underpinned demand for the precious metal. Platinum is used in catalytic converters to remove pollutants from car exhausts and also is finding its way increasingly into new uses, such as fuel cell technology. He said Lonmin was considering expanding its reserves in South Africa, home to over 70% of the world's platinum production, but did not rule out acquisitions. Lonmin, which has restated its 1999 results to reflect the disposal of its non-precious-metals portfolio, reported pre-tax earnings before exceptional items of $392m for the year ended September 30, on the high side of market expectations. The result was 209% up on its restated 1999 result of $127m and double the actual 1999 result of $190m. It raised the dividend by 96% to a full-year total of 35 pence or 50 cents, a rise of 72% in US currency terms. Lonmin has no corporate debt and has been under pressure to return cash to shareholders as it reaps the benefit of a platinum price which has risen, on average, 28% between 1998/99 and 1999/00. Lonmin produced 610 000 ounces of platinum in 1999/00 and raised its production target to 870 000 ounces by 2007. The earlier target was to reach 810 000 ounces by 2007. - Reuters ZA*BUSINESS:

To: gemsearcher who wrote (6371)	12/13/2000 3:00:05 PM
From: Gord Bolton	Read Replies (1) \| Respond to of 7235

Govt eyes SA’s mineral rights DARREN SCHUETTLER, Johannesburg \| Wednesday -------------------------------------------------------------------------------- THE South African government will unveil its long-awaited Minerals Development Bill next week which will vest the country's extensive mineral resource rights in the state. A spokesman for Minerals and Energy Minister Phumzile Mlambo-Ngcuka said the bill would address industry concerns about security of tenure, and discuss compensating companies that lost mineral rights. South Africa's mining industry is particularly worried about the "use it or lose it" portion of the bill, which would stop companies from hoarding mineral rights. "The minister will be talking about the security of tenure issue because it is of concern to a lot of mining companies," said Mlambo-Ngcuka's spokesman Kanyo Gqulu. The minister will release the draft bill in Pretoria on Monday, and seek public input before it becomes law. Under the new bill, a company that held mineral rights but had no plans to exploit the deposit would have six months to make a presentation to government. If the government is not satisfied with the company's plan, then the state will take ownership of those rights, Mlambo-Ngcuka told industry leaders last month. South Africa is one of the few countries in the mining world that has a system of dual state and private ownership of rights. Critics say this system allows big companies to hold rights with no immediate intention of using them, which discourages the development of small-scale mining, a key industry growth area. The government has argued that the current system has an element of racism and curbs black enterprise in an industry dominated by whites for more than a century. Mlambo-Ngcuka said last month that she was disappointed with the level of black empowerment in mining, and would make it a top priority in 2001. Bobby Godsell, chief executive of world number one gold producer AngloGold, acknowledged this week that the industry's management and ownership ranks were far too white. The Chamber of Mines, which represents most major mining firms, is not opposed to making the state the custodian of the country's natural resources. But it wants the bill to properly acknowledge the constitutional rights of existing owners of mineral rights and properties. Some R70bn in mining projects are in the pipeline in South Africa over the next five years, and the Chamber has warned the bill would determine future investment commitments. - Reuters ZA*BUSINESS