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Platinum producer Lonmin says CFO Scott to step down

Published 12/04/2016, 11:23
© Reuters.  Platinum producer Lonmin says CFO Scott to step down
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(Reuters) - South Africa-focused platinum producer Lonmin (L:LMI) on Tuesday said Simon Scott would step down as chief financial officer and that the company is looking for a successor.

Scott, appointed to Lonmin's board in 2010, served as acting chief executive officer from August 2012 to July 2013.

Before joining Lonmin, Scott was CFO of Johannesburg-listed Aveng Ltd (J:AEGJ), an engineering and construction group with significant involvement in the mining sector.

"After successfully completing last year's fundraising in an exceptionally challenging market, it is now the right time for me to pursue other interests," Scott said in a statement.

Scott will step down from the board following Lonmin's interim results in May, the company said.

Like its peers, Lonmin is battling sharp falls in commodity prices amid a supply glut and slowing demand growth in top consumer China. Its share price has tumbled by more than 94 percent since the start of 2015.

Lonmin raised $400 million through a cash call in December. The rights issue was undersubscribed even though it was deeply discounted.

"He's been there (Lonmin) for past five-and-a-half years and this is a decision to move on to something else," analyst Edward Sterck of BMO Capital Markets said.

Lonmin said it was at an advanced stage in its search for a successor and that an announcement would be made in due course.

Shares in the company rose as much as 9.2 percent before easing off a bit to trade up 7.5 percent at 142.50 pence by 1006 GMT on the London Stock Exchange.

Other platinum producers such as Anglo American (LON:AAL) Platinum (J:AMSJ) and Impala Platinum (J:IMPJ) jumped as much as 4 percent and 3 percent respectively following a rise in platinum prices .

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