FTSE 250 movers: Lonmin falls after broker forecast downgrade

Date: Friday 21 Sep 2012

Platinum miner Lonmin reported that more than 80% of miners turned up for work at its Marikana operations after workers called off their strike late on Tuesday following a settlement.

The accord, however, will be quite costly for the company, prompting another fall in its share price. Following the Marikana agreement Credit Suisse has this downgraded its 2012/13 earnings before interest, taxes, depreciation and amortisation (EBITDA) forecasts from $218m to $95m in 2012 and from $195m to $29m in 2013.

“A positive equity case on Lonmin in our view could be made if the company can grow to 950koz per year. which would require capex of $450m at a minimum.” That, however, would require an equity raise of at least $500m, together with some debt, or $1bn should all its debt be eliminated, the Credit Suisse scribblers suggest.

Meanwhile, shares were down at embattled pubs group Mitchells & Butlers (M&B) after it announced that another director is on his bike, with Doug Evans revealing his intention to take up a role as company secretary and general counsel at recruitment agency Hays.


FTSE 250 - Risers
Ruspetro (RPO) 109.00p +4.81%
Grainger (GRI) 111.00p +4.42%
Home Retail Group (HOME) 93.30p +4.07%
Halfords Group (HFD) 269.50p +3.85%
Imagination Technologies Group (IMG) 528.00p +3.23%
Ferrexpo (FXPO) 216.30p +3.10%
Kenmare Resources (KMR) 43.84p +3.01%
Hunting (HTG) 877.50p +2.87%
Essar Energy (ESSR) 121.50p +2.79%
Afren (AFR) 142.20p +2.67%

FTSE 250 - Fallers
Bumi (BUMI) 236.30p -5.52%
Lonmin (LMI) 597.50p -2.13%
PayPoint (PAY) 737.50p -2.06%
Chemring Group (CHG) 336.30p -1.95%
Halma (HLMA) 439.90p -1.92%
Dechra Pharmaceuticals (DPH) 580.00p -1.69%
Euromoney Institutional Investor (ERM) 791.50p -1.68%
Atkins (WS) (ATK) 693.00p -1.56%
Rathbone Brothers (RAT) 1,328.00p -1.48%
Perform Group (PER) 384.30p -1.46%

NR

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