Business / Companies
Marange Resources technically insolvent
26 Jun 2015 at 07:14hrs | Views
Marange Resources (Pvt) Ltd is now technically insolvent with the company's current liabilities exceeding current assets by a staggering US$74,7 million, an audit report shows.
According to a report by the auditor-general for the financial year ended December 31 2014, Marange Resources posted a net loss of US$1,5 million compared to US$30 million in the prior period in 2013.
The auditor-general said in light of the company's financial position charecterised by technical insolvency, there was doubt over the diamond mining company's ability to continue as a going concern.
As at that date (December 31 2014), the company's current liabilities exceeded its current assets by US$74 749 172 (2013: US$73 920 980).
The company's total liabilities exceeded total assets by US$54 789 290 (2013: US$53 296 505), the auditor-general said.
Source - Zim Ind
