TRANS Hex Diamante Beperk is to place its unprofitable West Coast Resources into liquidation following this following a one third decline in diamond prices this year, said Business Live.
After an announcement to the Johannesburg Stock Exchange on October 18, 2019, Business Live said “Trans Hex had applied to the High Court in Cape Town to wind up West Coast Resources. It had previously failed to sell the business or to get a third party to run it”
Shares in Trans Hex were 70% down in the past five years.
“ West Coast Resources is not in a position to meet its working-capital requirements without the necessary funding being made available to West Coast Resources,” said Trans Hex. “Accordingly, shareholders are advised that the major shareholder of West Coast Resources, Trans Hex today lodged an application to the high court of the Western Cape to place West Coast Resources into provisional liquidation”.
Trans Hex bought West Coast Resources in 2015 and intended to give it a new lease on life after the depletion of diamonds at two flagship mines on the banks of the Orange River. But a combination of falling diamond prices and lower than expected grades of diamonds from West Coast Resources rendered the business commercially unsound, said Business Live.
Billionaire Christo Wiese says he was on the verge of losing everything in the Steinhoff scandal and this liquidation yet another challenge.
Image Courtesy Trans Hex Group