Lonmin, the world’s third-largest platinum miner, comfortably beat City forecasts with annual profits of $140 million as it bounced back from the previous year’s strike-torn losses.
But Lonmin, which has rejigged its management and raised $767 million through a rights issue, said current wage negotiations were proving tough.
New chief executive Ben Magara said: “We are hoping to strike a balance, with the right economic realities factored in.”
The miner is having to cope with increased wage demands from its workers at a time when global demand for platinum has fallen.
Pre-tax profits came in at $140 million for the year to the end of September, compared with a loss of $698 million a year ago and well above analysts’ average forecast of $83.9 million.
Lonmin mined 751,000 ounces of platinum, the highest for six years and up 10.5% on the year before. It sold 696,000 ounces and pushed its forecast for the coming year’s sales to 750,000 ounces. The shares jumped 22p to 350p.
