Bheki Mpofu
4 July 2008
Johannesburg — PAMODZI Gold has been given a reprieve by the JSE, which had threatened this week to suspend trading in its shares unless the company released its annual financial statement.
CE Peter Steenkamp said yesterday he was confident the junior gold miner would meet an extended deadline given by the JSE to submit its report by the end of the month.
The company's stock took a huge knock earlier this week when it fell 12% after the JSE warned trade in the shares would be suspended if the report was not submitted by the end of this month.
The report was, however, due to be finalised by the end of last month.
Pamodzi (PZG), which had asked the JSE for an extension, is in a desperate bid to raise capital to fund the development plans it has for the Orkney and President Steyn gold mines it acquired at the beginning of March.
Steenkamp said the company needed to raise the funds before it could release its report so that the effect of the acquisitions could be factored into the financial results.
The company said it was negotiating a $50m loan with a European financial institution and that results of the talks should be out by the middle of the month.
In May, Steenkamp said the company was keen to avoid an equity issue because it did not want to dilute its present shareholders.
"We are busy fundraising for the two acquisitions, which tripled the size of our company. We need this working capital as soon as possible because at the moment we are just living from hand to mouth," he said yesterday.
"We hope that by July 15 we will know where we are going with the negotiations. If we can't have the capital by then, then we will consider other options."
He did not elaborate on what the other options would be. Steenkamp said the company had sought to raise the funds overseas because they wanted international exposure.
Pamodzi, which took over the Orkney shafts from Harmony and the President Steyn operations from Thistle Mining, was expecting consistent output from these mines by the end of the year. But the acquisitions, and President Steyn in particular, need some considerable investment.
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