- Shares in Lonmin (OTC:LNMIF) fall 5% in London trading after Glencore (OTCPK:GLCNF, OTCPK:GLNCY) handed over its stake to its shareholders this week, highlighting investor concern over South Africa's platinum sector.
- Glencore had inherited a 23.9% stake in Lonmin through its 2013 purchase of Xstrata but announced in February its intention to distribute the shares to investors; analysts had expected some selling pressure on Lonmin, anticipating many investors in Glencore, a diversified commodity player, would ditch the Lonmin shares because they were unwilling to bet on platinum.
- Platinum has lost ~43% of its value from a 2011 peak of more than $1,900/oz. and its outlook remains cloudy.