BROKERWATCH Lonmin upgraded to 'buy' from 'hold' at Deutsche Bank; target 3,485p

LONDON, Jul 08, 2008 (Thomson Financial via COMTEX) -- LNMIY | Quote | Chart | News | PowerRating -- Deutsche Bank has upgraded Lonmin Plc. to 'buy' from 'hold', on valuation grounds, as the shares now offer a 27 percent upside to the broker's unchanged 3,485 pence price target, traders said.

On Monday, Lonmin, the world's third-largest platinum producer, said it has resumed normal smelting operations at its No.1 furnace and expects the down time to have deferred production of around 5,000 ounces to 10,000 ounces of platinum from financial year 2008 into 2009.

On June 30, the company said it would power down the furnace for about 7 days after it discovered a small water leak in one of the coolers on the side wall.

In reaction, Citigroup said it thinks the financial consequence of the recent furnace shutdown is limited but it has downgraded its earnings by 1 percent in full year 2008.

The broker said the key risks to its view include lower metals prices, a substantial strengthening in the South African Rand/$ exchange rate, further mining related issues at the Marikana operations and another unplanned smelter repair. tf.TFN-Europe_newsdesk@thomson.com jb1/ajb

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