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Johannesburg - South African steel and vanadium producer Evraz Highveld said on Wednesday it was unable to borrow more money after it posted a loss for the second straight year, putting the company in a precarious financial situation.
The group said its credit lines were "fully drawn and may not be sufficient to support the company if the company cannot achieve its production and sales and cost targets."
"Labour stability, health of the market and production stability continue to pose a threat to the operations of the company and the ability to generate profits," it said in its annual results statement.
Its operating loss narrowed to R293m from a loss of R854m in the previous year as production was hit by a prolonged strike. Its headline loss per share was 153 cents.
The group said its credit lines were "fully drawn and may not be sufficient to support the company if the company cannot achieve its production and sales and cost targets."
"Labour stability, health of the market and production stability continue to pose a threat to the operations of the company and the ability to generate profits," it said in its annual results statement.
Its operating loss narrowed to R293m from a loss of R854m in the previous year as production was hit by a prolonged strike. Its headline loss per share was 153 cents.
