JOHANNESBURG (miningweekly.com) – JSE-listed Wesizwe Platinum on Thursday reported a loss of R393-million for the half-year ended June 30, 2011, compared with a profit of R335-million for the same period last year.

Basic loss a share for the six months was 36.97c a share, compared with earnings 50.47c a share in 2010. Headline loss a share was 36.6c against a headline loss of 6.52c a share for same period in 2010.

The platinum exploration and development company said that the loss was mainly owing to a one-off share-based expense for the issue of shares for cash to Chinese investors Jinchuan and Micawber, which took a control of Wesizwe during the reporting period.

The deal with Jinchaun secured funding for the development of Wesizwe’s flagship project, Frischgewaagd-Ledig in the North West.

“Current Wesizwe shareholders are not expected to be asked to cover any shortfall on funding or be subject to any further dilution of their shares until the project is fully operational,” said recently appointed CEO Jianke Gao.

The Frischgewaagd-Ledig mine development project was officially launched in July 2011 and currently a process is under way to re-evaluate the feasibility study and the capital estimate. It is expected that the project would be accelerated to capitalise on the early works programme carried out in the past year.

The company is also busy working on a new strategic plan that would be presented to the board and other stakeholders shortly.

“Realising value for Wesizwe shareholders is the primary objective that will guide the development of our future business plans,” said Gao.

 

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