File image: The Johannesburg Stock Exchange. (File picture: Siphiwe Sibeko).
DURBAN - eXtract fell more than 10percent during early trade on the JSE yesterday after the group said that it had sold its mining contracts for R652million in the six months to end February and offloaded some that were not in line with its growth strategy.

The group said the exited contracts included Mogalakwena and Aganang and a Mozambican operation that ceased to operate last year.

It said it curtailed its net debt and trimmed its losses to R82m during the period from R1.53billion it had during the corresponding period last year.

The head office was sold for R52m.

“The board is satisfied that the strategies to address the liquidity risks are on track and are being effectively addressed, and the group has the ability to settle liabilities as they become due and payable,” the group said.

eXtract said reported revenue from discontinued operations came at R1.3bn, while operating losses reached R173m. Basic and diluted shares eased to 384cents.

Debt

The group said its outstanding debt was currently at R25m.

“eXtract will continue to focus on these commitments in the short- to medium-term by reducing external debt, monetisation of assets held for sale and improving the efficiencies of existing leasing contracts,” the group said.

It said it received R26m for the Aganang sale and disposed of a further R19m in assets.

It said it planned to continue the restructuring of its operations through downsizing some businesses and stabilising others.

eXtract said it also reduced its headcount by retrenching all staff at its head office.

It said it changed its reporting period from June to August.

The group said it did not declare any dividend, given its overall performance and change in strategy.

However, it said it remained confident of turning around the business with new strategies in place.

The group said it managed to make a repayment of R175m of the R250m enX debt and reduced the debt further by paying R50m after the reporting period.

It said five board members resigned in February, including executive chairperson Bernard Swanepoel and Clinton Halsey, who was an interim chief executive and chief investment officer.

Satisfied

Three new board members were appointed with Jannie Serfontein becoming the chief executive and financial director until the end of June.

The board said that it was satisfied that the strategies to address the liquidity risks were on track and being effectively addressed.

eXtract shares closed 14.61percent lower at R7.25 on the JSE yesterday.

- BUSINESS REPORT