JOHANNESBURG- London-based Lonmin PLC, the world's third-largest platinum mining company, is set to report a loss on Monday as it continues to suffer from protracted platinum price weakness and operational troubles in South Africa.
Here are the main points:
EARNINGS FORECAST: Lonmin is expected post a loss of 9 cents per share during the six months ended March 31, down from underlying earnings of 3.5 cents a share during the same period a year earlier, when the miner was battered by a months-long strike, according to Thomson One.
REVENUE FORECAST: The platinum miner's revenue is expected to fall 3.5% from the same quarter a year earlier to $558 million, according to Thomson One.
WHAT TO WATCH:
--PLATINUM PRODUCTION: Lonmin previously said that it expects to produce 750,000 ounces of platinum in 2015 and sell 730,000 ounces, after selling 442,000 ounces last year. Investors will be closely watching to see if the company is meeting its previously forecast output targets, which could lift earnings significantly in the second half of 2015.
--PLATINUM PRICES: Slumping prices for the precious metal have wreaked havoc on the company. The company said Thursday that it is currently in consultations with unions and employees over efforts to reduce costs by about 10% or 3,500 people-investors will watch for any additional cost-cutting measures.
--LABOR ISSUES: The union representing the company's 23,000 workers went on strike between late January and late June last year, costing the miner about half of its estimated full-year platinum sales. Now tensions could again be stoked as the company looks to cut labor costs, which make up about 60% of its total costs. A further update on the job cuts will be provided with the half-year results on Monday.
Write to Alexandra Wexler at alexandra.wexler@wsj.com
(END) Dow Jones Newswires
May 08, 2015 05:38 ET (09:38 GMT)
#FX
#Forex
#SaleForex
#LonminSet
#ReportLoss
#PriceWeakness
0 Response to "Lonmin Set to Report Loss on Price Weakness -- Earnings Preview"
Thanks for give comment.