WeSizwe Platinum on Wednesday reported an increase in full-year headline loss, owing to the ongoing expenditure for the development of its core Frischgewaagd-Ledig platinum project.
WeSizwe said headline earnings per share fell to 6,65 cents in the year to end-December, from a loss of 4,89 cents the previous year.
Headline earnings are the main profit gauge in South Africa, and strip certain one-off, financial and non-trading items.
WeSizwe said it would conduct a review of the economics for the Frischgewaagd-Ledig project to incorporate changes in commodity prices.
“Options for funding the development of the Frischgewaagd-Ledig project are being analysed and pursued aggressively,” WeSizwe said.
The black-owned company said last year it had delayed the construction start of the project until it obtains sufficient funding. The company said in the past it wanted the mine to start producing in 2011 and reaching full output by 2016.
“The feasibility study conducted on the project describes a current resource of over 13-million PGM ounces and indicates a near-term potential of producing 350 000 PGM ounces a year,” WeSizwe said on Wednesday.
Gross expenditure during the year amounted to R74,6-million, and operational activities resulted in a pre-tax loss of R38,9-million, up from a loss of R27,8-million in 2008.
The company said it expects prices for platinum group metals (PGM) to keep up this year.
“Strong PGM prices are certainly encouraging and there is broad consensus that these should endure,” it said, but added that the strong rand against the US dollar would affect gains from metal prices.
WeSizwe said it had R111-million in cash at the end of the financial year. No dividend was declared, it said. — Reuters