Lonmin shareholders approve $407m rights issue

Lonmin’s shareholders have approved the platinum miner’s $407m (£267m) rights issue, which represents a 94% discount to the share price before the pricing announcement.

The approval means Lonmin will be able to press ahead with its debt restructuring as it looks to stay afloat amid declining platinum prices and rising costs.

Chairman Brian Beamish said: “Lonmin is now able to carry out its detailed and carefully structured business plan. I would like to thank our shareholders for their overwhelming support."

Earlier this month, the company reported $2bn in operating losses for the year to the end of September compared with $255m a year ago. This incuded $1.8bn in asset impairments on the back of lower-than-expected production and prices.

The pre-tax loss for the full year widened to $2.2bn from $326m the previous year and net debt increased to $185m at the end of September from $29m in the same period in 2014.

At 1305 GMT, Lonmin shares were up 2% at 10.71p.