Vil­lage to re­port back on strate­gic re­view

The Star Early Edition - - COMPANIES - Di­neo Faku

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.

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