JOHANNESBURG - Mining and construction equipment firm eXtract Group on Tuesday reported a R2.013 billion loss for the 14-month period ended 31 August 2017, and said it was on track to transition into a mining fund.

The company, which provides equipment and related services in South Africa and the rest of the continent as well as Great Britain and Ireland, said last week it was in the process of exiting all its current contract mining contracts, and disposing of further excess assets and changing its strategic direction to an investment fund.

On Tuesday, eXtract said it had terminated all mining contracts except for two which were ending in November 2017, as it transitions into a focused mining fund as part of a restructure and recapitalisation programme approved by shareholders in August.

“Over the past 14 months the operating environment for contract mining has been particularly challenging, with the group continuing to report operational losses at certain operations,” it said.

“All contracts will be concluded by 30 November 2017 and the group will then focus on the monetisation of its assets held for sale to settle outstanding debt obligations.”

It said its board had not declared a dividend given the company's performance and change in strategy.

- AFRICAN NEWS AGENCY