JOHANNESBURG (miningweekly.com) – Platinum group metals (PGMs) producer Wesizwe Platinum on Wednesday announced a loss for the year ended December 31 of R9-million, as opposed to a profit of R9.7-million in 2012.

This translated into a headline loss a share of 0.66c, compared with headline earnings a share of 0.70c in 2012.

The company’s cash balance at the end of the financial year was R865.1-million.

BAKUBUNG
Wesizwe also reported on Wednesday that the main and ventilation shafts at its flagship Bakubung platinum mine, in the North West, had been fully commissioned, licensed and were in the main sink phase.

The main shaft achieved a depth of 345 m and the ventilation shaft a depth of 506 m by the end of the reporting period. 

The company had also completed its optimisation project, which had been initiated at the start of 2013, during the period under review, with the findings approved for implementation.

The optimisation focused on a much improved mine design, a shortened production ramp-up time and a reduction in nominal capital expenditure, Wesizwe said. 

The results of the optimisation had delivered a significant improvement in the project valuation. The project net present value increased to R6.5-billion from R4.4-billion in the 2009 bankable feasibility study.

Also included in the optimisation was a 20% increase in yearly production to 420 000 oz/y of PGMs at a steady state.

Further, Wesizwe’s definitive metallurgical feasibility study was well under way and was expected to be concluded during the first half of this year.

The company also reported that its services projects were on track and progressing well.

The Eskom Phase 1 power supply of 20 MVA had been commissioned and would be sufficient for the full underground development of Bakubung, and a bulk water supply agreement had been signed off with Magalies Water, Wesizwe explained.

Meanwhile, the company also concluded and signed all project financing agreements for the first $650-million loan facility from the China Development Bank, with the first drawdown of $100-million having occurred in January this year.