Bauba could struggle to meet obligations if chrome prices fall
The company cannot assure its projects will be fully developed in line with its current plans and deadlines, or within budget
Chrome producer Bauba Resources warns that if prices of the metal drop below their June 2021 level for an extended period, or the dollar significantly strengthens against the rand, it could face problems as directors said there was a “reasonable expectation” it would only have resources to keep going for a year.
“Future work on the development of these projects may be adversely affected by factors outside the control of the group as the group’s operating results are subject to changes in the average chrome price and dollar exchange rate,” the company said on Friday in its results for the eight months to end-February. It changed its financial year from June 30 to February 28 to align with its controlling stakeholder, construction and materials group Raubex...