Gupta owned Oakbay expecting a near R1 billion loss

Oakbay Resources and Energy, owned by the controversial Gupta family, is expecting to report a loss of almost R1 billion for the year ended February 2017.

The company said in a trading update on SENS on Thursday that it anticipates a loss of R936.549 million for the year, a big drop from the R16.913 million loss in the prior year.

Oakbay said it anticipates a loss attributable to the owners of the company of R570 million, while it expects to report a headline loss per share of 5.89 cents, from a headline loss per share of 0.68 cents in 2016.

The company also expects to report a basic loss per share for the year ended 28 February 2017 of 71.29 cents from a prior loss of 0.64 cents.

“The company’s overall financial performance for the year deteriorated compared to the
prior year, primarily due to the effect of an after tax impairment charge of R879.84 million that was recognised during the financial year in relation to the company’s uranium
mineral resource asset, as well as due to weaker year-on-year gold production.

“The impairment charge resulted due to the continued decline in global uranium commodity prices,” Oakbay said.

The company expects to publish its results on Friday, 02 June 2017.

The extent of the Gupta family’s alleged power over South Africa and its leaders could possibly be laid bare when between 100,000 and 200,000 leaked Gupta emails are expected to be made available to journalists soon.

Read: Guptas’ Oakbay Resources signs new coal export deal

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Gupta owned Oakbay expecting a near R1 billion loss