:00:03. > :00:06.approaches for striking miners to go back for work. But the impact on
:00:06. > :00:16.Lonmin's bottom line is visible. Now it is time for World Business
:00:16. > :00:21.
:00:21. > :00:25.Report. Return to work or you are fired -
:00:25. > :00:29.Lonmin gives the order to striking workers at its South African mine
:00:29. > :00:37.where a 34 people were shot dead last week.
:00:37. > :00:47.It's make-or-break for cat research in cat motion, as it reveals a new
:00:47. > :00:52.
:00:52. > :00:55.phone -- Research in Motion. If Qantas is set to report its first
:00:55. > :01:05.annual loss since 1995. It's see each boat will forgo his
:01:05. > :01:07.
:01:07. > :01:13.bonus. -- its CEO.
:01:13. > :01:18.Lonmin has ordered its 3,000 striking staff to return to work on
:01:18. > :01:22.Monday or face the sack. The strike began 10 days ago. It is
:01:22. > :01:27.one of the world's biggest platinum mines, and the prospect of a
:01:27. > :01:35.prolonged shutdown has rattled the commodity markets. Last week the
:01:35. > :01:44.price of platinum jumped 4%, up to around recent highs. Shares in
:01:44. > :01:54.Lonmin, the mind's owner, have tumbled. -- mine's.
:01:54. > :01:55.
:01:55. > :02:00.Many fakes were being here. -- Many thanks for. What is in store for
:02:00. > :02:03.Lonmin if the 3,000 striking miners decide not to turn up for work this
:02:03. > :02:09.morning? We have heard they had described the directive as
:02:09. > :02:13.insulting. We certainly think that the company
:02:13. > :02:16.will be under pressure going forward. If the miners continue on
:02:16. > :02:22.with this strike, an every possibility that that will
:02:22. > :02:27.happen, we would expect that Lonmin's production from here on
:02:27. > :02:31.will be severely impacted. They were looking at producing something
:02:31. > :02:41.like 750,000 ounces of platinum this year. That certainly would be
:02:41. > :02:46.reached. We think, going forward, that Lonmin is trying to reduce its
:02:46. > :02:52.costings as we have seen the price of platinum over the last 3-4
:02:52. > :03:00.months fall away. Let's talk about that cost of platinum. We have
:03:00. > :03:05.already talked about the fact that it has jumped more than 4%. What
:03:05. > :03:11.will happen going forward with regards to this strike, with
:03:11. > :03:15.Lonmin? They are a FTSE 100 company, they're a big player. Yes, they
:03:15. > :03:23.certainly are. We would expect that his production is disrupted for
:03:23. > :03:28.some time at their mines, we would see the price of platinum rising.
:03:28. > :03:33.They produce around 750,000 ounces per annum. That is a significant
:03:33. > :03:43.portion of the total of about 8 million it else's that was produced
:03:43. > :03:55.
:03:55. > :04:01.in 2011. -- ounces.... Law Sunday Times newspaper has reported that
:04:02. > :04:07.Lonmin is considering a $1 billion emergency fundraising attempt to
:04:07. > :04:15.recoup some of the losses. Lonmin has dismissed this as speculation.
:04:15. > :04:20.What you make of it? Companies cannot continue to operate if they
:04:20. > :04:27.are not receiving cash flow. If this strike does continue for some
:04:27. > :04:34.time, obviously the ability to produce and to sell commodity will
:04:35. > :04:39.dry up. That cash revenue has to come from somewhere else. It would
:04:39. > :04:47.be potentially the correct approach for Lonmin to have some type of
:04:47. > :04:52.capital raising to replenish its working capital. It's not
:04:52. > :05:01.surprising that we would be expecting news or gossip to come
:05:01. > :05:06.out that Lonmin will perhaps have an equity raising. Many thanks for
:05:06. > :05:16.speaking to us. This could be a make-or-break week
:05:16. > :05:16.
:05:16. > :05:20.for Research in Motion. They will reveal a new version of their
:05:20. > :05:24.headlining phone on Sunday. They are hoping it will create enough
:05:24. > :05:28.sales to revive their flagging fortunes. The company has struggled
:05:28. > :05:32.to stay ahead in a competitive market for mobile phones.
:05:32. > :05:38.For decades, the world's telecom industry was slow to introduce new
:05:38. > :05:44.telephones. The same handset stayed in service for years, familiar from
:05:44. > :05:48.one generation to another. Here is a handy thing to take to a picnic...
:05:48. > :05:52.All that changed with the introduction of the cellphone.
:05:52. > :05:57.Today, we changed our might phones often. It seems fashion is just as
:05:57. > :06:03.important as function. The blackberry's popularity with
:06:03. > :06:13.business people and teenagers made Research in Motion a strong
:06:13. > :06:14.
:06:14. > :06:22.competitor. However, smart phones using other technology are now more
:06:22. > :06:25.popular.... There is no doubt the financial markets are losing
:06:25. > :06:31.confidence in the company's strategy. Over the last year,
:06:31. > :06:35.investors had deserted the company, and their shares have lost more
:06:35. > :06:39.than three-quarters of their value. Technology analysts believe that
:06:39. > :06:48.the unveiling of an early version of the next back very is key to the
:06:48. > :06:53.company's future. -- blackberry. For some people, it's still popular
:06:53. > :06:56.phone. But for these people, their next purchase will probably be a
:06:56. > :06:59.different phone. That is the challenge for blackberry now, do
:06:59. > :07:07.have another device that is ready for existing users when they come
:07:07. > :07:12.to buy a new handset. To say, yes, I'm going to get the new Blackberry,
:07:12. > :07:16.instead of a iPhone. When it comes to smartphone, it is at a
:07:16. > :07:24.competitive market. The blackberry device seems to have fallen out of
:07:24. > :07:28.favour with business people, and, perhaps more importantly, teenagers.
:07:28. > :07:36.This is a sobering lesson for the company. The success of the next
:07:36. > :07:46.Blackberry device could be make or break for Research in Motion.
:07:46. > :07:48.
:07:48. > :07:52.Joyce, has announced he will forgo any bonus or pay rise -- boss. He
:07:52. > :07:58.executives from Australian companies who are doing the same.
:07:58. > :08:01.It has been It has beenantas, hasn't it? Soaring fuel costs and
:08:01. > :08:07.the rising the rising n dollar. This is a strong statement from Alan
:08:07. > :08:12.Joyce. Joyce. Absolutely. A potential sharp drop
:08:12. > :08:22.in profits for the f which ends on 30th June is the key
:08:22. > :08:24.
:08:24. > :08:27.reason the chief executives are saying this. He said "it is
:08:27. > :08:37.appropriate that when a company's earnings go down, the executives
:08:37. > :08:38.
:08:38. > :08:42.blew up -- executives' pay should go down as well". The airline has
:08:42. > :08:48.announced various restructuring measures due to losses. It is
:08:48. > :08:58.planning to split its international separate entities. Its share price
:08:58. > :09:01.
:09:01. > :09:11.has jumped by 35% since April of indicates that further cost-cutting
:09:11. > :09:11.
:09:11. > :09:15.measures may be introduced soon. The company says that his decision
:09:15. > :09:24.displays his commitment to reinvigorate the business, even if
:09:24. > :09:29.it creates personal sacrifices. Let's have a look at the markets.
:09:29. > :09:35.In Asia fortunes are mixed at the moment. We can see the Nikkei is on