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JSE suspends listing of Chrometco

Last month, its external auditor, Moore Cape Town resigned, warning that it would negatively impact on the release of Chrometco’s reviewed provisional results and annual financial statements for the year ended February 28, 2022.

Last month, its external auditor, Moore Cape Town resigned, warning that it would negatively impact on the release of Chrometco’s reviewed provisional results and annual financial statements for the year ended February 28, 2022.

Published Jul 19, 2022

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The JSE announced yesterday that it had suspended the listing of South African chrome and PGMs producer, Chrometco, due to late financials.

According to the bourse, the company failed to comply with its listings requirements by not publishing its Provisional Report for the year-ending February 28, 2022 within the prescribed period stipulated in the JSE Listings Requirements.

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“Accordingly, the listing of the company’s securities has been suspended with immediate effect,” it said.

The suspension means investors in these companies would be unable to sell their shares.

Last month, its external auditor, Moore Cape Town resigned, warning that it would negatively impact the release of Chrometco’s reviewed provisional results and annual financial statements for the year ended February 28, 2022.

Chrometco – whose stock is 6c – has seen its share price lose nearly 78 percent of its value in the past five years, and is valued at R153 million on the AltX. Its woes accelerated due to the chrome commodity market price, the Covid-19 pandemic, and the Adjusted Level 4 lockdown with limited access to external sources of funding.

Last month, the company said it had tried to raise appropriate funding and that the process was still ongoing.

At the time, the group said it had been negatively impacted by the introduction of the Adjusted Level 4 lockdown and by a Department of Mineral Resources and Energy suspension notice served on the mine, restricting Sail Minerals, the controlling shareholder in Chrometco, and the Chrome Wash Plant operations to less than 60 percent.

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Chrometco, whose flagship Black Chrome Mine (BCM), is situated in Limpopo, entered business rescue in June. It placed BCM into business rescue since it is unlikely that BCM would be able to pay all of its debts.

The holding company that also owns 90 percent of Chrometco, Sail, was also placed in business rescue in 2021 to keep creditors at bay.

BUSINESS REPORT

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