Lonmin warns it won’t pay dividend for 2009

Lonmin has warned it won’t be paying a dividend for the 2009 financial year. In a company statement just published, Lonmin reports what it calls “satisfactory performance in 2009, despite significant challenges”.

This includes the sales of 682,955 ounces of platinum which was 2% below initial forecast, while injuries fell 8%,

It has also reported a major cost restructuring program has been completed, while the balance Sheet strengthened and the decision was taken to move operational headquarters and executive management team to Johannesburg from London.

Ian Farmer, Chief Executive Officer, says “2009 saw the first significant steps in restoring Lonmin’s operational health. Whilst there is still further work to be done, I am confident that the performance of the business is moving in a positive direction.”

And the board has also announced it’s decision to pass the final dividend for the 2008 financial year and the interim dividend for the 2009 financial year.

The Board will keep the matter of dividend distributions under constant review and will resume payments as soon as conditions allow.

Chairman Roger Phillimore says “Our policy remains that dividend distributions will be based on the reported earnings for the year, but take into account the projected cash requirements of the business.”