6th Jun 2014 06:56
LONDON (Alliance News) - Central Rand Gold Ltd Friday said Finance Director Patrick Malaza will leave the company at the end of July and won't be replaced to save on costs.
Malaza's departure comes just a week after the gold exploration and production company revealed that its 2013 losses were wider than it had previously reported.
"With any change, new opportunities arise, and I believe that our existing employees have the capability to take up these new and additional roles and responsibilities," Chief Executive Johan du Toit said in a statement.
Meanwhile, Central Rand Gold said it has launched an efficiency review of the entire operations, following the commissioning of its Mill 3 in May. The company said it wants to identify ways to improve efficiency and streamline the organisation.
"It is important that we as a company are constantly reviewing how we conduct our business. We need to ensure that we are always striving to improve and operate more efficiently. The commissioning of Mill 3 on time and within budget was exceptional and has established a new benchmark for how we must approach all areas of the business," Nathan Taylor, the company's interim non-executive chairman, said in a statement.
Last Friday, Central Rand Gold said its losses in 2013 were larger than previously reported as a result of financial adjustments.
It asked for its shares to be suspended from trading as it awaited clarification from its auditors of the accounting treatment of a loan in its 2013 accounts. The shares resumed trading later that day as a loan that can be converted into shares by lender Redstone was reclassified as a derivative liability. In Central Rand Gold's unaudited full-year results, reported two weeks before the share suspension, the convertible loan note had been treated as equity.
The reclassification meant that Central Rand Gold's pretax loss in 2013 was put at USD14.8 million, instead of the USD13.3 million previously reported.
Redstone Capital Ltd is a cornerstone investor in Central Rand Gold, after injecting USD7.25 million into the company last August through a convertible loan.
By Samuel Agini; [email protected]; @samuelagini
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