Village to report back on strategic review
VILLAGE Main Reef expected to give shareholders feedback on the details of its strategic review at the end of the month following a number of unsolicited offers, said chief executive Ferdi Dippenaar yesterday.
The company is a takeover target after being approached by companies to acquire it and said previously it would complete a strategic review of assets for the sale of some or all of its assets.
Shareholders had voted in favour of the disposal of Consolidated Murchison (Cons Murch), a gold and antimony producer, and progress has been to finalise the last conditions precedent to the transaction.
“The first phase of the Cons Murch transaction are expected to close in the latter portion of November 2014,” Dippenaar said yesterday.
Village Main Reef’s main asset is the Tau Lekoa gold mine, which produced 110 000 ounces of gold in the last financial year.
Earlier this month, Dippenaar said that, during the year under review, the company focused on the most pressing issues, namely setting its position straight at the Blyvoor mine in Carletonville, starting closure procedures at Buffelsfontein in North West and initiating the sales process of Limpopo’s Cons Murch mine.
Yesterday, the company said headline earnings a share from continuing operations decreased to 99.71 cents a share from 174.84c a share in the previous quarter. Group production for the quarter to September was 31 534 ounces from 31 958 ounces in June despite losing four production days due to the Orkney earthquake in August.
Total gold produced at Tau Lekoa was 1 percent lower at 28 742 ounces, compared to the 29 128 ounces during the June quarter. The operation planned to produce between 105 000 ounces and 115 000 gold ounces for the current financial year.
The Tau operations were adversely impacted by the Orkney earthquake, which led to a loss of four days or 1 587 ounces.
“We are pleased to report that none of our employees were injured in the event and no significant damage was reported to the infrastructure,” Dippenaar said.
The lower gold sales resulted in 8 percent lower gold revenue amounting to R349 million compared to R378m reported in the previous quarter at the Tau operation.
Village Main Reef ended yesterday’s trading session 5.4 percent lower at R526.