Village Main Reef stocks reach highest in seven weeks

Village Main Reef shares rose the most in seven weeks after the South African gold company reported record production at its Tau Lekoa mine and restructuring at other operations.

The stock rose 18%, the most on an intraday basis since September 11, to R0.47 at 9.49am in Johannesburg on volumes 2.3 times its three-month daily average.

"Village is pleased with the production achieved at our flagship Tau Lekoa mine, which showed further improvements on the June quarter," chief executive Ferdie Dippenaar said in a statement. "Our challenge will be to maintain the momentum going into what is normally a difficult time of the year."

Tau Lekoa’s production was 1 090kg for the period ended September 30, up 33% quarter on quarter, Village said. Total production was 1 133 kg, a gain of 27%.

The losses incurred from putting its Buffels operations on care and maintenance are expected to drop to R7-million a month in the current quarter. It halted Blyvoor output after the granting of a provisional liquidation order on August 6.


Cash generated by Tau Lekoa, R156-million, was reduced by losses sustained at Blyvoor and Buffels and operating losses at Consolidated Murchison, leaving the company cash neutral, Village said. "Management is confident that this will not be the case going forward as losses from both Blyvoor and Buffels have been addressed and Cons Murch is returning to normalised operational levels."

Workers held a strike at the Cons Murch gold and antimony mine in Limpopo province in July. – Bloomberg

Subscribe to the M&G

These are unprecedented times, and the role of media to tell and record the story of South Africa as it develops is more important than ever.

The Mail & Guardian is a proud news publisher with roots stretching back 35 years, and we’ve survived right from day one thanks to the support of readers who value fiercely independent journalism that is beholden to no-one. To help us continue for another 35 future years with the same proud values, please consider taking out a subscription.

Paul Burkhardt
Paul Burkhardt works from Johannesburg. Bloomberg reporter covering oil/gas, renewables, mining and unions in South Africa and sub-Saharan region. Retweets not endorsements. Paul Burkhardt has over 1431 followers on Twitter.

Related stories

Workers get their slice of SA Express

Proposals for how to carve up ownership of the airline could mean that the government will no longer hog the whole pie

SAA crash-lands but new airline will take off

During discussions between unions and business rescue practitioners and the government, it was decided that the national carrier would be closed and a new airline formed

SAA rescuers give affected parties two options: Wind down or liquidate

As SAA subsidiaries declare hardship to staff, business-rescue practitioners urge them to sign agreements to save severance payouts

Coronavirus and the economy: We didn’t prepare for tough times

South Africa was well-placed for the 2008 crisis. But R3.18-trillion debt and low growth hamper its ability to limit the economic effects of Covid-19

SAA cut off to protect other SOEs

After years of pumping billions into the airline, government picked business rescue to prevent a wider fallout at Eskom and other state entities

​Three financial habits of wealthy millennials that set them apart from their peers

Wealthy millennials are investing heavily in big tech companies
Advertising

Subscribers only

FNB dragged into bribery claims

Allegations of bribery against the bank’s chief executive, Jacques Celliers, thrown up in a separate court case

Dozens of birds and bats perish in extreme heat in...

In a single day, temperatures in northern KwaZulu-Natal climbed to a lethal 45°C, causing a mass die-off of birds and bats

More top stories

Blast rocks Durban’s Engen refinery

Residents are being evacuated as firefighters battle to control the blaze

ConCourt asked to rule that Zuma must testify for 10...

It is Zondo's legal end game and will leave the former president, his supporters and those implicated in state capture to increasingly play fast and loose at imputing political motive to the commission

Carlos on Oozymandias’ goodbye grift

"Look on my works ye Mighty, and gimme 50 bucks!"

This is how the SIU catches crooks

Athandiwe Saba talked to the Special Investigating Unit’s Andy Mothibi about its caseload, including 1 000 Covid contracts
Advertising

press releases

Loading latest Press Releases…