[miningmx.com] – THE market value of Lonmin had declined so much that it was cheaper to buy the whole company than sink a new shaft, said Bloomberg News which cited Adrian Williams, a mining analyst at Avior Capital Markets.
“Certainly they are a target – their market valuation is more or less the same as sinking a shaft,’ said Williams. “It’s not a particularly well-run company, but they’ve got good assets,’ he added.
“Lonmin is undeniably cheap, but the poison pill is that they carry with them the concern with regards to labor issues and union discontent,’ said Simon Hudson-Peacock, a money manager at Momentum Asset Management, told Bloomberg News.
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