LONDON (Reuters) - Platinum miner Lonmin has received a further waiver on its debt agreements from its lenders, preventing a default, the South Africa-focused company said on Thursday.
London-listed Lonmin, which is being bought by Sibanye-Stillwater, has been battling liquidity issues caused by combination of low platinum prices, a strengthening local currency and soaring costs.
Lonmin’s lenders had granted the company a waiver of compliance with a loan agreement that required its net worth to remain at a minimum of $1.1 billion, the company said.
“(The) waiver will ensure that this shortfall is not regarded as an event of default during the waiver period.”
Lonmin’s banks waived the same debt covenants which were due to be tested in September.
The struggling miner said it would publish its 2017 full-year results on Jan. 22, along with its first quarter production report. The announcement was delayed in November pending the completion of a business review.
Reporting by Zandi Shabalala; editing by Alexander Smith