Lonmin shares drop 4% as striking workers handed ultimatum

Shares in platinum miner Lonmin fell sharply into the red on opening this morning, down more than 4%, as the group warned its 3,000 striking employees will be dismissed if they do not return to work today.

The violent strikes which erupted last week, following the killing of 34 mine workers, has put a huge strain on the company's finances, prompting the group to examine its banking covenants. A total of 44 people died due to the violence at the mine, with South African President Jacob Zuma yesterday declaring a week of national mourning. The unrest has also hit Lonmin's share price which had fallen 4.7%, or 30p to 609p, by 9am, extending its run of steep losses after dropping 8% last week. Lonmin was dealt a further blow this morning as Deutsche Bank cut its rating to 'sell', amid fe...