JSE-listed Wesizwe Platinum, whose flagship project is the Bakubung platinum mine (BPM), located in the Bushveld Complex, near Rustenburg, in the North West, says in its interim financial results for the six months ended June 30 that it is progressing towards operational readiness.
During the period, R1.29-billion in shareholders’ loans were raised and the company invested R800-million in property, plant and equipment.
Financial expenses of R619-million were incurred during the year.
Administration expenditure decreased by 85% to R4.13-million, from R27.63-million in the prior corresponding period.
Wesizwe’s unrealised foreign exchange loss increased by 379% to R1.8-billion, from an unrealised foreign exchange loss of R374.38-million in the prior corresponding period.
Of the unrealised foreign exchange loss, R781.82-million was capitalised, with the residual accounted for in the statement of profit or loss and other comprehensive income.
The impact on the statement of profit or loss of the residual not being capitalised equates to 62.04c apiece in the period.
These exchange losses have arisen as a result of the depreciation in the South African rand relative to the dollar on foreign denominated loans.
The company’s headline loss a share increased by 55.54c apiece to 59.63c, while the loss a share also widened to 59.63c.
The board of directors says that after careful consideration, it has elected to not declare a dividend for the period.
The total comprehensive loss for the six months under review is R981.5-million, compared with a comprehensive loss of R69.2-million for the same period in 2022.
Total administration expenses are made up of administration expenses of R797-million less capitalised cost of R792.9-million.
A further $70.5-million was raised since the beginning of the year to fund the BPM project.
The group’s cash resources at the reporting date of R126.8-million are insufficient, based on current budgets, to conduct operations and develop the BPM project up to the end of the year.
The group’s current liabilities at the reporting date, which include shareholder’s loans of R6.63-billion, exceed the current assets by R7.2-billion.
These conditions indicate that a material uncertainty exists, which may cast significant doubt as to the ability of the group to continue as a going concern in that they may be unable to realise their assets and discharge their liabilities in the normal course of business.