Wesizwe proceeds with development despite interim losses

28th September 2018 By: Marleny Arnoldi - Deputy Editor Online

JSE-listed Wesizwe Platinum swung to a R14.9-million loss for the six months ended June 30, from a R19-million profit in the first half of the prior year.

The basic loss a share for the period was 0.92c, compared with earnings a share of 1.17c in the prior comparable period.

The headline loss a share was 0.92c, compared with headline earnings a share of 9.74c for the same period last year.

Nevertheless, the miner assured shareholders that its Bakubung platinum mine, in Rustenburg, remained viable.

Wesizwe further reported that its appointed development and construction contractor had started with preparations for production and construction for levels 69 and 72, with the first blast for the mine achieved on August 10.

Tender proposals had been adjudicated for levels 77 and 81.

Delivery of Bakubung’s concentrator plant conveyors started and construction of the plant is expected to start in the first quarter of 2019.

Wesizwe’s cash resource at the reporting date was R824-million, compared with R622-million in the first half of 2017, which the company said is sufficient to conduct operations and develop the mine up to the fourth quarter of 2019.

The company also has an available drawdown facility from loan funding secured with China Development Bank.