Lonmin shares continue to fall as workers count the bodies

Platinum mining firm Lonmin continues to suffer and its workers count the toll from the violence that has erupted around its Marikana complex near Johannesburg. This morning the death toll has risen to 25 officially, however, South Africa's police minister told local radio that it was more than 30 dead with many more injured after the police opened fire on striking miners. Putting the awful violence to one side, which is the worst act of civil unrest since the end of apartheid, the company has attempted to keep the stock market informed of ongoing events but has struggled to keep up. Its last statement to the market at 2.08pm yesterday afternoon had said everything was calm but that it would miss its production target of 750,000 tonnes of platinum ore this year. Shares have sunk 17% this week since the violence first erupted last Friday when 3,000 workers demanded to speak with management. They refused, saying they only speak with unions. This morning shares are down 28p, 4.2% at 620.5p (last week shares were at 746p) as investors appear unclear as to what will happen at the South African company and how this massacre will be resolved. The company did issue an ultimatum to the illegally striking miners to return to work today or face the sack, however, it is still unknown whether this stands after the killings. A final worrying message to shareholders read: In its third quarter production report published on July 26, 2012, Lonmin stated that net debt remains well within the limits and terms of its existing bank debt facilities. The Company continues to monitor the position closely regarding the additional pressure which the current disruption to production may put on its bank debt covenants when they are next tested on 30 September. Meanwhile, Lonmin's chief executive Ian Farmer, 50, was in hospital after being diagnosed with a "serious illness". The company refused to go into any further detail of the illness but said it was unrelated to the unrest.