Oakbay offices in Sandton. Picture: SIPHIWE SIBEKO/REUTERS
Oakbay offices in Sandton. Picture: SIPHIWE SIBEKO/REUTERS

Oakbay Resources and Energy, linked to the Guptas, will report a loss of nearly R1bn because of an R880m impairment recorded against its Shiva Uranium mine due to low uranium prices and reduced gold output.

JSE-listed Oakbay Resources is controlled by the privately held Oakbay Investments, one of the companies at the centre of a political firestorm brewing around its politically connected and increasingly controversial Gupta family shareholders.

Oakbay Investments holds 79.99% of Oakbay Resources, a barely traded stock on the bourse. Oakbay Resources had its accounts closed by SA’s largest banks and was abandoned by its external auditors and sponsor for fear of being tainted by the rising tide of disclosures about the family’s dealings in SA’s political and business spheres. The company has had a large turnover in executives in the past year.

The shares, which were untraded on Thursday, were available to buy at R5.80 each. The market capitalisation of the company is R4.6bn. The share price fell 72% this year.

The state-owned Industrial Development Corporation owns a 3.6% stake in the company, which has coal mines in addition to its primary Shiva uranium and gold asset.

Oakbay said on Thursday it would report a loss on Friday of R937m for the year to February compared with a loss of R17m the year before.

It would record an attributable headline loss, which excludes one-off items, of R47m compared to a loss of R5.5m before.

The company’s overall financial performance was worse than that of the previous year, primarily due to the effect of an after-tax impairment charge of R879.8m that was recognised during the financial year in relation to the company’s uranium mineral resource asset as well as due to weaker year-on-year gold production, Oakbay said.

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