The company, which released results on Thursday, reported that revenue decreased by 24 per cent to 1.5 million rand for the year ended 31 March 2014 from two million rand in 2013.
“During the year the company consolidated its mining services business and significantly reduced its net debt by 203 million rand. A further downturn in the exploration drilling sector has resulted in a further rationalisation of this segment,” Sentula said in a statement.
“During the year the company decided to dispose of its coal assets, which while resulting in the impairment of mineral rights, when concluded will result in the realisation of significant cash.”
(READ MORE: Sentula Mining reports revenue drop)
[DATA SNU:Sentula Mining] is a South Africa-based mining company that deals in opencast mining, exploration drilling and rehabilitation. The group is organised in four major operating segments, namely opencast mining services, exploration drilling, crane hire and coal mining.
Loss from operating activities improved by 79 per cent to R176 million rand from 844 million rand in the previous comparative year.
Basic losses per share from continuing operations decreased to 47.7 cents for the period under review from 148.9 cents in 2013. Headline losses per share increased to 43.7 cents from 24.9 cents in 2013.
Losses for the year from continuing operations decreased from 872.8 million rand in 2013 to 283.1 million rand for the period under review.
Sentula also had a basic and diluted loss per share of 91.8 cents from 148.4 cents in 2013, and the board decided not to declare a dividend for the year under review.
Total revenue for the opencast mining services segment was recorded at 1.3 million rand for the period under review, followed by exploration drilling at 304. 9 million rand, crane hire at 87.6 million rand and the company’s other segment at 47.7 million rand.
“All group companies have, during the year under review, continued to meet their objectives and thus maintain their International Standards Organisation accreditation, with respect to their safety, environmental and training systems,” the group explained.
“Despite on-going volatility across the entire resources sector and the limited visibility of exploration work, in the short term, the Group’s firm intention remains one to focus on the value drivers in its diversified service business offerings.”