JOHANNESBURG (miningweekly.com) - The share price of fraud-hit Sentula Mining plummeted by nearly 60% during Thursday's post-suspension resumption of JSE trading.

The price dropped from R8,60 to R3,46 before midday, a loss of 59,77%. The 12-month high is R23,50.

Though a forensic investigation into a missing R242-million is reaching a close, the process has yet to be completed, Sentula said on Wednesday, when it reported good progress towards resolving issues of misappropriation and possible collusion of past senior management members.

Full provision for the R242-million, missing from an account of subsidiary Scharrighuisen Open Cast Mining, was made in Sentula's 2008 accounts.

Sentula's forensic investigation has established that R172-million of the R242-million was used in an irregular revaluation of plant and equipment, and the remaining R70-million in irregular plant-and-equipment trade-ins.

Holding company Sentula derives its income from contract opencast mining, rehabilitation, earthworks, exploration drilling, crane hire, mining services and the mining of coal from its own investments in a number of coal mines.

A KPMG forensic investigation, not directly linked to the R242-million, is also determining whether instalment-sale-agreement proceeds from the irregular plant-and-equipment transactions reconciled to the deposits paid into the Scharrighuisen Open Cast Mining account.

Although the Sentula board believes that the full financial impact of the irregularities is provided for, it continues to advise shareholders to exercise caution when trading in the company's shares, which have taken a battering.

Besides the forensic investigation, the South African Police Services is reportedly conducting a separate criminal investigation.

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