Undisclosed suitor makes play for Village Main
JOHANNESBURG (miningweekly.com) – JSE-listed Village Main Reef was mulling its options after undisclosed third parties expressed interest in buying all or part of the gold producer.
Village appointed specialist resources corporate finance boutique Qinisele Resources to explore “strategic alternatives”, which included the possible sale, to “unlock value” for shareholders.
Qinisele would also be tasked with formalising the process should Village decide to enter any negotiations.
Village CEO Ferdi Dippenaar previously indicated the potential disposal of the Lesego platinum project, in Limpopo, and the possible acquisition of value-enhancing assets as the company further restructured its asset portfolio.
“… should it result in the disposal of Tau Lekoa or even of Village itself as a going concern, so be it. As we move into the future, Village’s asset portfolio will be different from its present one,” he said, pointing to Village’s aim of transitioning into a resources investment company.
Over the past year, Village had focused on restructuring its operations and strengthening its balance sheet, which saw its net asset value a share increasing by 50% year-on-year from 80c to 120c by the end of June.
This had followed the $15-million sale of the Consolidated Murchison antimony mine, in Limpopo, the restructuring of Blyvoor mine, in Carletonville, and the idling of Buffelsfontein, in the North West.
Village reported a 34.7% decline in headline earnings a share from continuing operations to 26.12c and a 34.9% decline in earnings a share to 22.4c during the year to June 30.
Operating profit from continuing operations fell 19.6% to R236-million during the 12-month period under review.
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