[miningmx.com] — THE Wesizwe Platinum (Wesizwe) share price has continued to underperform despite the company’s transition from explorer into the development phase of building its Frischgewaagd-Ledig mine.
Wesizwe currently sits around 170c compared with 240c at the beginning of the year and around 214c at the beginning of 2010.
That is despite the fact that construction of the mine is now fully-funded with current shareholders “not expected to be called upon to provide further funding or be subject to dilution.’
Reason is any additional funding will be provided either by the new Chinese controlling consortium or borrowed on “terms similar to those of the funding to be provided by the China Development Bank’.
Development of the mine was officially launched on July 4 and it will be overseen by a new top management structure dominated by the Chinese consortium.
Former CEO Arthur Mashiatshidi stepped down on May 4 to become joint acting CEO and he handed over to Jianke Gao as new CEO at the beginning of August. The finance director is Wenliang Ma.
Matshiatshidi stayed on as a non-executive director but resigned from that position on September 19.
According to Wesizwe chairman Dawn Mokhobo, “the group has recognized its progression from explorer to developer and, in this regard, the board of directors has fully discussed and evaluated a new vision and mission for the company.
“A detailed strategic plan will be presented to the board of directors and, once approved, communicated to all shareholders.’
Wesizwe lost R393.3m in the six months to end-June (previous comparable period – R334.8m profit) mainly because of a “share-based payment expense for the issue of shares for cash to China-Africa Jinchuan Investment.
The writer owns shares in Wesizwe.
