AVENG, a Johannesburg-listed diversified industrial business, said it would renegotiate existing mining contracts or exit them after the firm posted a R401m loss in net operating earnings for the year ended June 30.
The company specialises in surface and underground mining through its Moolmans unit which has been identified as a core asset following a review of the overall business amid a drastic decline in performance and liquidity issues. Moolmans posted a 95% in its net operating earnings for the year, said Reuters in a report on September 25.
As part of its strategic review in 2017 Aveng decided to dispose of non-core assets such as Aveng Trident Steel, Aveng Grinaker-LTA and Aveng Manufacturing. The review also included reducing debt and improving the firm’s liquidity by settling all of or a portion of its R2bn convertible bonds before their July, 2019 maturity date, as well as a rights issue.
“In the short-to medium-term, the board, executive committee and management of Aveng will remain focused on accelerating the group’s turnaround. This will include the management of liquidity and the disposal of the non-core assets by the targeted deadline of June 2019,” it said in a statement.
