Alexkor has eight months’ worth of operational funds left
State-owned diamond company Alexkor, which operates on the west coast, only has enough operational money to last for the next eight months, board chair Hantsi Matseke said in Parliament Wednesday. At the end of March the company’s cash reserves stood at R332m, down from R384m at the end of the 2014-15 financial year. Matseke told the public enterprises portfolio committee that one of the reasons for the cash shortage was the nonreplenishment of its resources from the pooling and sharing joint venture with the Richtersveld community. Another reason was the poor level of carat production. The company suffered a R35m loss at the bottom-line in the last financial year, which was nevertheless an improvement on the previous year’s R82m loss. Diamond revenue slid 7% from R414m to R387m. Matseke said in order to assist with Alexkor’s cash shortage, the board had approved the use of the R45m excess in the allocation in the medium-term expenditure framework, which was earmarked for rehabilita...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.