JOHANNESBURG (miningweekly.com) – Owing to the directors of the JSE-listed Wesizwe Platinum not being able to provide major shareholder agreements, its independent auditing company has expressed a disclaimer of review conclusion, which is communicated when insufficient appropriate audit evidence is forthcoming.

SizweNtsalubaGobodo Grant Thornton has not been able to confirm or dispel whether the preparation of the interim financial statements – using the going concern basis of accounting – is appropriate, which has resulted in the disclaimer being announced in Wesizwe’s interim financial statements for the six months to June 30.

Wesizwe, a platinum mine developer located in South Africa’s North West province, was established in 2003 and listed on the JSE in 2005.

Its flagship asset is the Bakubung Platinum Mine project, formerly known as the Frischgewaagd-Ledig project, which is located about 40 km from Rustenburg, on the western limb of the platinum-endowed Bushveld Complex.

In a notice on the JSE's Stock Exchange News Service (Sens) on October 14, the company reported a delay in the approval by the China National Development and Reform Committee of financial support beyond the funding cap limit of $1.52-billion. This process is reported to be ongoing and is expected to be completed before December 31.

Jinchuan Hong Kong and Jinchuan Group are reportedly reviewing the updated funding application report, which will determine the excess funding required for the Bakubung to achieve operational completion.

The announcement stated that the directors are satisfied that there are reasonable grounds to believe that Wesizwe will be successful in obtaining the required funding and that the group will have sufficient funds to meet its obligations.

In an operational update last month, Wesizwe reported that that it had awarded a contract to an experienced contractor to start to implement a concentrator plant rectification plan at Bakubung in the third quarter.

Moreover, it was further reported that stoping production ramp up would begin in the first quarter of next year and reach about 83 000 t a month by the fourth quarter.

The mine already has a 500 000 t incidental ore stockpile from the on-reef development activities.

Underground activities were said to include the development, construction and equipping of permanent infrastructure such as ore passes, silos, workshops and permanent water and power services to support future stoping.

On Sens, directors were reported to be satisfied with a majority shareholder undertaking to continue to provide financial support for the company to meet its financial obligations, with loans totalling $156-million expiring in December being extended to December 2027.