South African black-owned mining group Mvelaphanda Resources expects to post a first-half basic and headline loss of 590 cents to 610 cents due to a fair-value adjustment on its stake in Gold Fields.
The company said the loss in the six months to the end of December compared with a basic profit of 562 cents per share and a headline profit of 622 cents per share in the year-ago period.
The loss was due to an 18% slide in Gold Field shares from R162 on June 30 to R132,75 on December 30. It said the fair-value adjustment had no effect on Mvela’s cash flow.
Shares in Mvela fell by 3,41% to R42,51 by 3.24pm, lagging a flat Johannesburg all-share index.
Top black mining executive Lazarus Zim bought a stake in Mvela in December, teaming up with prominent black investor Tokyo Sexwale, who already holds a key stake in the firm, and making the company more than half black owned. — Reuters