There was a severe error in the reserves and resources calculation for Project X, Vaalbank and Lemoenfontein. Lemoenfontein shouldn't be given too much attention, but Project X, Vaalbank, Knapdaar and De Wittekrans form the De Wittekrans complex. Because of the aforementioned error, the complex's estimated size is now much smaller than it was in 2010.
On page 11 of the 2010 annual report is the following table.
The total resources add up to 424Mt for the complex.
Now have a look at page 6 of the 2012 annual report, wherein the total resources for the complex is now 251Mt.
They have written down a very large sum of money under the 'impairments' tag over the past few financial years because of this issue. Hopefully the above helps you on that matter.
I suggest you have a skim over the second half of this announcement if you haven't already; its the post-Mashala acquisition presentation with all the fanciful numbers that conned the majority of us into buying this thing in the first place.
A few notes from that preso:
- Penumbra was forecast to have commenced production over 12 months ago in that presentation - De Witt should be producing by now, and the below chart shows that an awful lot of projects were in the pipeline back in the day, and now they've been pushed under the rug with not a word being mentioned to explain why
So much dirt with this thing it isn't funny - no need to even dig for it, they've handed it to us on a platter. Every single piece of news has faults in it.
CCC Price at posting:
5.2¢ Sentiment: None Disclosure: Not Held
