Bauba narrows full-year loss; to raise R34m through claw-back offer

29th September 2021 By: Tasneem Bulbulia - Senior Contributing Editor Online

JSE-listed Bauba Resources has posted a total comprehensive loss of R27.23-million for the financial year ended June 30, compared with a loss of R45.28-million in the 2020 financial year.

The basic and headline loss a share for the period was 4.73c, compared with 8.07c in the prior financial year.

Revenues increased by 6.4% year-on-year to R277.1-million.

This was driven by a 23.5% increase in the sale of chrome concentrate.

Total run-of-mine (RoM) production for the financial year was 294 480 t, with 182 390 t of chrome concentrate sold.

During the current financial year, no opencast RoM was sold, which negatively impacted on the revenues realised.

Bauba says the Covid-19 pandemic lockdown significantly delayed the development of its underground operations, with material lockdown and startup costs, as well as a delayed restart owing to a change in the underground mining contactors.

Since year-end, opencast mining has started at the company’s Kookfontein project, near Rustenburg. The first phase of mining will target about 400 000 t of opencast fresh and transitional upper group two ore.

Meanwhile, Bauba intends to raise R33.88-million by way of a claw-back offer. Bauba shareholders will be offered the right to subscribe for their pro rata portion of 109.3-million shares at a price of 0.31c per claw-back share.

The company’s largest shareholders – Pelagic Resources and Raubex – will underwrite the claw-back offer. Further details will be provided to shareholders in due course.