Struggling Sable Platinum piling up losses, burning cash
JOHANNESBURG (miningweekly.com) – JSE-listed exploration company Sable Platinum, which has accumulated financial losses of R79-million, is burning cash at a rate of R550 000 a month.
Current cash will be sufficient to cover expenses until January 2014.
Sable has a cash balance of R1 680 586 and has been using its own capital to fund exploration.
Sable CEO James Allan, who has had to dip into his own pocket and chip in a loan of R1-million for operational expenses, has not drawn a salary from the company since February, and executive director René Hochreiter has sacrificed half of his salary since December 2012.
Executive director David Levithan has sacrificed 44% of his retainer since December 2012 and financial director Marietjie van Tonder has sacrificed 20% of her salary since December 2012.
Other staff members have also sacrificed 20% of their salaries since February, raising the amount forfeited to R2.8-million.
The group says in a Stock Exchange News Service announcement that it is currently raising capital in order to continue its exploration programme and to cover all general and administration costs.
Internal restructuring, which is under way to reflect the company’s spread beyond platinum into vanadium and iron-ore and steel at Selebi Phikwe, in Botswana, will result in a company name change to Sable Metals and Minerals, as well as a move from platinum and precious metals sector to the general mining sector.
The company, which is negotiating a further private placement of shares, has the go-ahead to place 15% of its issued share capital at a discount of not more than 10%.
Sable’s application for a prospecting right for vanadium, iron-ore and rutile has been granted at Doornpoort, in the Cullinan district and at Leeuwkopje, in the Thabazimbi district.
A technical due diligence study on the Selebi Phikwe steel project has been completed and the legal due diligence should be completed by year-end.
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