Wesizwe swings to R41m loss as delays to Bakubung start-up continue
JSE-listed Wesizwe Platinum has posted a basic loss a share of 1.51c for the year ended December 31, 2021, compared with earnings a share of 3.18c reported for the prior year.
The loss before tax for the year was R41.2-million, against a profit of R52.8-million in 2020.
Wesizwe says the company will not earn revenue from mining activities until construction of the Bakubung platinum mine is completed. The mine was temporarily closed as of February 8 following a strike by its surrounding Ledig community, which started on January 26.
The company in 2020 also halted construction activities at the mine, owing to delays in public consultations required for the company’s water-use-licence application and environmental-impact assessment, as a result of Covid-19.
The loss for the year takes into account administration expenses of R37.4-million, finance income amounting to R48.4-million and finance expenses amounting to R53.1-million.
Wesizwe’s cash resources stood at R374-million at the end of 2021. Its liabilities, which include shareholders’ loans of R1.4-billion, exceed the current assets by R784-million.
The ability of the company to continue as a going concern is dependent on the support of the majority shareholder and the majority shareholder not calling on the current shareholder’s loans, it says.
Wesizwe reports that its main shareholder, in a letter of comfort, stated its commitment to the company despite shortfalls.
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