OWN CORRESPONDENT, Johannesburg | Wednesday 3.00pm
SHARES in gold mining firm JCI Gold extended their recent steep losses on Wednesday in the wake of a share buying scandal involving its executive deputy chairman Brett Kebble. By mid-morning the stock was down 7,14% to 390 cents on volume of 43000 shares.
JCI’s share price has fallen 60 cents or over 13% since Friday when JCI and other companies in the JCI/Randgold group were briefly suspended at the group’s request.
Kebble announced his resignation as deputy chairman of Western Areas on Saturday and securities regulators are now probing allegations of a secret share buying scheme involving the use of Western Areas funds to fend off a hostile takeover bid for sister company Randfontein Estates.
Shares in Western Areas were up 60 cents at R22 on Wednesday, while Randfontein improved five cents to R12,35.
Kebble resigned as deputy chairman of Western Areas and three other gold mines after admitting the authorisation of a loan, without approval by Western Areas’ board, to buy shares in Randfontein Estates to thwart a hostile bid by rival Harmony Gold.
Randfontein was to be a key cash generator for a new global gold mining company to be built around Western Areas and listed on the Toronto Stock Exchange.– Reuters