The Oakbay Resources and Energy listing provides an interesting glimpse into a Gupta company and it is not pretty. The company, which has lost 72% in its listed value in 2017 so far to R4.6bn, operates a gold mine as it develops a uranium mine at Shiva Uranium mine and it runs the Brakfontein colliery, which was the saving grace for the company’s 2017 financial year.Oakbay, which is 79.99%-owned by the Gupta family’s Oakbay Investments, haemorrhaged cash from its operating activities, falling from R59m cash-generation in 2016 to outflows of R28m in the year to February. The repayment of chunky loans to the Bank of Baroda and the Industrial Development Corporation, which is still owed R118m, eroded Oakbay’s cash position to R2.7m, from R225m at the end of 2016. Oakbay will have to find R37.5m by the end of June to pay the Industrial Development Corporation and a further R37.5m by the end of next March. The loan is secured against the Shiva assets. Oakbay Investments is owed R411m, up...
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