Waterberg Coal suffers losses while looking to raise funds - CNBC Africa

Waterberg Coal suffers losses while looking to raise funds

Earnings

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Coal mining. PHOTO: Getty Images

The company went from a profit of 22,115,087 US dollars in December 2012 to a loss after tax of 21,943,804 US dollars this year and had net cash outflows from operating activities of 2,734,619 and net cash outflows for investing activities of 2,342,153 US dollars.

The group’s current net liability position is at 62,138,622 US dollars while cash and cash equivalents is at 6,838,615 US dollars.

“The directors recognise the need to raise additional funds via equity raisings for future exploration activities,” said the [DATA WCC:The Waterberg Coal Company Limited.] (WCC) in a statement.

So far, after ongoing discussions with various groups, the company is near completion of fundraising approximately 2.4 million US dollars

“The company is in continued discussions, some of which are reaching their final stages, with investment groups, especially in South Africa, which could lead to further equity raises in the near future,” continued the statement.  

WCC added that if they aren’t able to raise fund through an equity issue, then they may have to realise their assets and extinguish liabilities.

However, the company, which is a party to the Waterberg Coal Project Joint Venture, is making progress in the proposed development of opencast mining operations to produce 10 million tonnes per annum of coal to South Africa’s power utility, Eskom.

This was due to the completion of their 2013 drilling programme on four farms covered by the Mining Right (Smitspan, Massenberg, Hooikraal and Minnasvlakte), and two farms held under Prospecting Rights (Vetleegte and Swanepelpan).

“The resource statement for the Waterberg Coal Project now stands at 3.88 billion tonnes of coal with coal in the measured category of 2.07 billion tonnes. This represents a substantial increase in the coal resource for the Waterberg Coal Project,” explained the group.

To add, WCC engaged in an off market takeover bid for all the ordinary shares in Firestone Energy, an Australian based exploration company during September 2013.

“The acquisition was essentially to acquire Firestone Energy Limited’s share of the coal project in the Waterberg locality in South Africa, with no infrastructure or personnel,” added the company.

At the conclusion of the offer, WCC’s shareholding in Firestone is 45.88 

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