OWN CORRESPONDENT, Cape Town | Friday 5.10pm
STRUGGLING state-owned diamond miner Alexkor forecast on Friday that it will halt its spiral of losses this year, helped by continuing initiatives to try to cut costs ahead of its possible privatisation.
Alexkor CEO Larry Neuhoff said the mine, which has made losses since 1994, expects to show a R36-million improvement on its balance sheet at the end of its current financial year.
”We’re still going to show a loss for the year, but we’re forecasting that to be around R30-million,” Neuhoff said. In the previous financial year Alexkor had made a R66-million loss in net profit before tax.
Neuhoff, who is also the CEO of Nabera Mining, was speaking following a briefing by Alexkor to the parliament’s public enterprises committee. Last May, the government awarded Nabera a two-year management contract to spearhead a turnaround at Alexkor, situated on the west coast near the Namibian border.
The firm, which employs just over 1000 people, is the only source of income for hundreds of residents of Namaqualand – one of the country’s most poverty stricken areas. Until recently, Alexkor was plagued by mismanagement, theft and production slumps which threatened the closure of the 76-year-old company. ”Alexkor has faced some tough times . . . but we’re managing our way out of trouble,” Neuhoff said, adding the new management team had discovered vast areas of unwarranted spending since it took over.
Currently Alexkor’s turnaround is also being supported by a R70 million loan facility from government approved last year. — Reuters