Wesizwe losses widen

2011-09-29 11:31

Johannesburg - Platinum exploration and development company Wesizwe Platinum [JSE:WEZ] on Thursday reported the widening of its first-half headline and diluted headline loss on the back of increased costs dominated by share-based payments.

The company, which has come through a turbulent period sparked by boardroom brawls, posted a headline and diluted headline loss of 36.61 cents a share for the six months to end June 2011, compared to a loss of 6.52c/share for the first half of 2010.

A comprehensive loss of R393.3m was reported, against a comprehensive income of R334.8m for the same period in 2010.

The total comprehensive loss for the period included a share-based payment expense of R408.0m as well as equity accounted share of losses of Maseve Investments of R7m and the impairment of a loan of R3.8m.

"The share-based payment expense is the IFRS 2 expense for the issue of shares for cash to China-Africa Jinchuan Investment and Micawber 809 at a discount to the market price on the subscription date," Wesizwe said in the commentary accompanying its results.

Shares in issue more than doubled to 1.6 million at end June 2011 from 797.9 million at end June last year.