Picture: 123RF/THAM KC
Picture: 123RF/THAM KC

Infrastructure and resources group Aveng said on Friday that an improved performance from its infrastructure and mining subsidiaries would help it reduce losses in the six months to end-December 2019.

This represents a major turnaround in the performance of Aveng’s mining contractor Moolmans after the subsidiary’s poor performance in the 2019 financial year. In the year ended June 30 2019, Moolman reported a R372m operating loss.

When it released the full-year results in August 2019, the company said it would prioritise Moolmans’ return to profitability.

Moolmans, which is half of Aveng’s core assets, is one of Africa’s largest open-cut mining contractors.

Aveng, which has sold a number of non-core assets recently, said on Friday that the improved performance from Moolmans and McConnell Dowell, its other core asset, lifted operating profits in the first half of the 2020 financial year.

The company, which has also exited the troubled local construction industry, said it expected basic loss for the six months to be between R151m and R185m, representing an improvement of between 84% and 80%, compared to the R918m in the prior period.

Aveng, which will release the interim results on Tuesday, said the headline loss for the interim period is expected to improve to between R185m and R226m, an increase of between 74% and 68%, compared to the R703m reported in the same period last year.

It said the headline loss per share was expected to fall by between 83% and 79% to 1c and 1.2c per share.

Aveng shares were unchanged at 2c per share on Friday.