Platinum miner Lonmin reported a 65 percent drop in 2017 profit on Monday as the company took a $1.1 billion impairment charge after a business review.
Bruised by higher costs and subdued commodity prices, the miner, which is being bought by Sibanye-Stillwater, said earnings before interest, taxes, depreciation and amortisation (EBITDA) fell to $40 million for the year to Sept. 30 from $115 million a year earlier.
Lonmin delayed its results last year pending the outcome of a business review.
“Persistent adverse macroeconomic conditions and inflationary cost pressures continue to affect the entire mining industry in South Africa,” the miner said in a statement.
Lonmin has been worst hit among the major platinum miners by operating conditions and community and labour unrest.
The company reiterated its spending and production targets for 2018 but said it planned to cut a minimum of 500 million rand ($41 million) from its annual overhead costs by Sept. 30.
The price of platinum has been largely subdued since record highs nearly a decade ago due to high levels of above-ground stocks of the metal.
Sibanye-Stillwater agreed to buy Lonmin for about 285 million pounds ($395 million) in December.
($1 = 12.0808 rand)