Sable Exploration and Mining Limited (JSE: SXM) has announced its financial results for the year ended February 29, 2024. Despite significant improvements in equity, the company continues to face financial challenges, including a substantial comprehensive loss and a qualified audit opinion.
Key Financial Highlights
| Metric | 29 Feb 2024 | % Change | 28 Feb 2023 (Restated) | 28 Feb 2023 (Previously Reported) |
|---|---|---|---|---|
| Total Equity (R’000) | 5,555 | >100 | (35,465) | (32,258) |
| Total Comprehensive Loss (R’000) | 11,193 | 49.7 | 7,478 | 6,237 |
| Basic Loss per Share (cents) | (51.45) | (70.0) | (171.88) | (143.34) |
| Headline Loss per Share (cents) | (51.45) | (70.0) | (171.88) | (143.34) |
| Shares in Issue at Year End | 56,564,742 | 4,351,134 | 4,351,134 | – |
Significant Increase in Total Equity
Sable Exploration and Mining Ltd (SEAM) reported a dramatic increase in total equity. Total equity for the period reached R5.555 million. This marks a significant turnaround from the previous year’s deficit of R35.465 million.
Rising Comprehensive Loss
The company recorded a total comprehensive loss of R11.193 million for the year. This represents a 49.7% increase from the restated loss of R7.478 million in the prior year.
Loss Per Share Improves
SEAM’s basic and headline loss per share improved significantly. The loss per share stood at 51.45 cents, a 70% reduction from the restated 171.88 cents the previous year.
Qualified Audit Opinion
CM & Associates Inc., SEAM’s external auditor, issued a qualified opinion on the financial statements. The audit report included a material uncertainty relating to SEAM’s ability to continue as a going concern. Key audit matters and an emphasis of matter were also highlighted.
Extract from the Audit Report
The audit report states that the group annual financial statements present fairly, in all material respects, the financial position of SEAM as of February 29, 2024. However, it notes a qualification due to limitations arising from the predecessor auditors.
Material Uncertainty on Going Concern
The auditors drew attention to the company’s net loss of R46.918 million for the year. This raises significant doubt about SEAM’s ability to continue as a going concern. The company’s management is taking steps to address these concerns.
Conclusion
Sable Exploration and Mining Ltd made strides in improving its equity position. However, the company still faces significant financial challenges. With a qualified audit opinion and a material uncertainty regarding its ability to continue as a going concern, SEAM’s management is under pressure to turn the situation around. Investors and stakeholders will be closely monitoring the company’s efforts to address these issues and improve its financial stability.