Platinum group metals miner Wesizwe Platinum has recorded a profit of R51.78-million for the year ended December 31.
That compares with a profit of R96.8-million in 2019.
The group’s cash resources by year-end R899.4-million, down from the R212-billion of 2019. That is insufficient, based on current budgets, to conduct operations and complete the development of the Bakubung project, states Wesizwe.
The miner reports that the majority shareholder has provided a letter of comfort supporting any shortfall and guaranteed repayment of a $650-million China Development Bank loan.
The company also reports that its directors have concluded that it is appropriate to prepare the financial statements on a going concern basis.
“These conditions indicate that a material uncertainty exists which may cast significant doubt as to the ability of the company and its subsidiaries 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,” the company states.
The miner’s headline earnings a share decreased by 47% in the period, to 3.17c.
Wesizwe’s earnings a share also decreased by 47%, to 3.18c, from 5.95c in 2019.