Lonmin Plc
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Lonmin Plc Financial Snapshot
Operating Performance
Fast Facts
4 Grosvenor Place, London, SW1X The company reported revenue of US$1,992.00
Headquarters Address
7YL,United Kingdom million during the fiscal year 2011 (2011). The
company's revenue grew at a CAGR of 0.65% during
Telephone + 44 20 72016000
2007–2011, with an annual growth of 25.68% over
2010. In 2011, the company recorded an operating
Fax + 44 20 72016100 margin of 14.51%, as against 14.57% in 2010.
Website www.lonmin.com
Revenue and Margins
Ticker Symbol, Stock Exchange LMI, London Stock Exchange (LON)
Number of Employees 27,796
Fiscal Year End September
Revenue (in US$ million) 1,992.00
SWOT Analysis
Strengths Weaknesses Return on Equity
Diversified global presence Substantial debts The company recorded a return on equity (ROE) of
9.32% for 2011, as compared to its peers, African
Rainbow Minerals Limited (Ticker: ARIM), Impala
Vertically integrated operations Platinum Holdings Limited (Ticker: IMP) and Anglo
Platinum Limited (Ticker: AMS), which recorded
Opportunities Threats ROEs of 15.64%, 13.96% and 6.37% respectively.
The company reported an operating margin of
14.51% in 2011.
Demand for luxurious goods Operational risks
Emerging technologies Risk of international operations Return on Equity
Liquidity Position
The company reported a current ratio of 1.66 in 2011,
as compared to its peers, African Rainbow Minerals
Limited, Impala Platinum Holdings Limited and Anglo
Platinum Limited, which recorded current ratios of
2.41, 2.27 and 1.21 respectively. As of September
2011, the company recorded cash and short-term
investments of worth US$76.00 million, against
US$10.00 million current debt. The company reported
a debt to equity ratio of 0.11 in 2011 as compared to
its peers, African Rainbow Minerals Limited, Impala
Platinum Holdings Limited and Anglo Platinum
Limited, which recorded debt to equity ratios of 0.15,
0.04 and 0.11 respectively.
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Lonmin Plc - SWOT Profile Page 1
Lonmin Plc
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TABLE OF CONTENTS
1 Business Analysis ................................................................................................................................... 5
1.1 Company Overview ................................................................................................................................................5
1.2 Business Description ..............................................................................................................................................5
1.3 Major Products and Services .................................................................................................................................6
2 Analysis of Key Performance Indicators ............................................................................................... 7
2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7
2.2 Key Financial Performance Indicators .................................................................................................................10
2.2.1 Revenue and Operating Profit .........................................................................................................................10
2.2.2 Asset, Liabilities and Capex .............................................................................................................................11
2.2.3 Net Debt vs. Gearing Ratio ..............................................................................................................................12
2.2.4 Solvency ..........................................................................................................................................................13
2.2.5 Valuation ..........................................................................................................................................................14
2.3 Competitive Benchmarking ..................................................................................................................................15
2.3.1 Market Capitalization .......................................................................................................................................15
2.3.2 Efficiency ..........................................................................................................................................................16
2.3.3 Capital Expenditure ..........................................................................................................................................17
2.3.4 Valuation ..........................................................................................................................................................18
2.3.5 Turnover – Inventory and Asset .......................................................................................................................19
2.3.6 Liquidity ............................................................................................................................................................20
3 SWOT Analysis ...................................................................................................................................... 21
3.1 SWOT Analysis - Overview ..................................................................................................................................21
3.2 Strengths ..............................................................................................................................................................21
3.3 Weaknesses .........................................................................................................................................................21
3.4 Opportunities ........................................................................................................................................................21
3.5 Threats .................................................................................................................................................................22
4 Company Statement .............................................................................................................................. 23
5 History .................................................................................................................................................... 25
6 Key Employees ...................................................................................................................................... 27
7 Key Employee Biographies................................................................................................................... 28
8 Locations and Subsidiaries .................................................................................................................. 29
8.1 Head Office ......................................