Braemore warns interim loss expected to widen
miningweekly.com
By: Creamer Media Reporter
24th March 2009
JOHANNESBURG (miningweekly.com) – Nickel and platinum-group metals (PGM) producer Braemore Resources on Tuesday informed shareholders that its loss for the six months ended December 31, was expected to widen .
The Aim- and JSE-listed company’s loss and headline loss a share would widen to 0,56p a share compared with a loss of 0,15p for the corresponding period in 2007.
While the unaudited financial results for the six months ended December 2008 have not yet been finalised, Braemore warned that it was anticipating an after-tax loss for the six-month period of £4,40-million. This compares with an after-tax loss of £1,015-million for the six months ended December 2007.
“About 50% of the anticipated after-tax loss can be attributed to the recent settlement of a single old-order contract that may have exposed the company to market volatility around platinum group metals prices and unfavourable processing terms. This contract has been concluded and replaced by new contracts from both Anglo Platinum and Northam Platinum,” the company stated on Tuesday.
The new contracts in place were cash positive, with significantly reduced price exposure.
Braemore noted that it has made significant positive progress on its projects and continued production from its newly-expanded ConRoast smelter in South Africa totaled 6 892 PGM oz for the period.
Braemore has also advanced the restructuring of the company to realise a significant reduction in overhead costs, which would flow through into the next reporting period.
The cash position of the company as at the end of the period was £ 2,54-million. At the end of February, Braemore’s cash balances were about £1,6-million with PGM alloy in-stock valued at £4,1-million.
The company’s results for the six months ended December 2008 was expected at the end of this month. |
