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Barplats' future hangs in balance Posted: Mon, 06 Mar 2006 [miningmx.com] -- THE future of mid-tier platinum producer, Barplats, is in doubt because its current liabilities outweigh its current assts by nearly R50m. But the platinum company’s management is confident it will be able to pay its debts as it falls due. Barplats is trying to raise long-term funding, while its operations will generate positive cash flows, the company said in a note accompanying its interim results to end-December 2005. Management was not immediately available for comment. “Should the company not be successful in its initiative to meet the forecast cash outflows and raise long-term funding, there is significant doubt that the company will be able to meet its obligations in the normal course of business,” it said. “Therefore a material uncertainty exists which may cast significant doubt about the company’s ability to meet its obligations in the normal course of business and to continue as a going concern.” Barplats' current assets are R141m, while its current liabilities total R190.4m. These include a payment of portion of a loan from Impala Platinum in June this year of R36.2m, and repayment of a loan from Nedbank in May this year of R103.2m. There were no further details of its current liabilities. However, the directors reckon the company can overcome its problems. “The directors are confident that the budgets and forecasts and projected cash flows will be achieved, that the company will meet its obligations as they fall due and that the company will be a going concern in the year ahead.” Barplats posted a net loss of R395.5m for the period versus an end-of-year profit in June 2005 of R25m. It recorded cash and equivalents of R69m by December.Free news alerts: click here to subscribe
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