JOHANNESBURG (miningweekly.com) – The shares of the JSE-listed Wesizwe Platinum rose on Wednesday despite the company’s widening loss in the 12 months to December 31.

Although the R89-million 2010 loss was well up on the R38-million loss in 2009, Wesizwe’s share price rose 2,7% to close at 221c a share.

The company says that it is poised for continued losses until mining production – for which a date has not been given – begins.

The headline loss resulted from expenditure on the development of its core Frischgewaagd-Ledig platinum project.

Headed by CEO Arthur Mashiatshidi, Wesizwe has cash on hand of R31-million and access to another R49-million from a Bank of China drawdown facility.

It reports that the value of its assets doubled to R2,6-billion in the period, owing mainly to its all-equity acquisition of Rustenburg Platinum Mines Limited’s (RPM) prospecting rights and 37% participation rights in the Western Bushveld Joint Venture. RPM is owned by Anglo Platinum.

Although the Jinchuan group and the China-Africa Development Fund (CADFund) have undertaken to provide funding for the 350 000-oz/y Frischgewaagd-Ledig project under construction, they still require the approval of China’s National Development and Reform Commission, Ministry of Commerce, State-owned Assets Supervision and Administration Commission, and State Administration of Foreign Exchange.

Wesizwe understands that the Chinese regulatory approvals are at an advanced stage, and expects funding to be provided within “a reasonable timeframe”.

Wesizwe will issue more than 820-million new ordinary shares to Jinchuan and CADFund and Micawber for $227-million in equity funding and Jinchuan and CADFund have also undertaken to provide the company with a $650-million debt facility.
 

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.