[miningmx.com] – SHARES in Lonmin fell under renewed pressure amid speculation the company would tap investors for cash, said BDLive citing Ryan Wibberley, head of dealing at Investec.
“They might need cash to survive and might have to come to the market to raise money,” he said.
“If you are producing at high cost levels, how long can you keep on burning cash? Lonmin might need to recapitalise and might have a rights issue and will have to offer shares at a discount,” said Wibberley.
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