Salungano narrows operating loss as it works to turn around business
JSE-listed Salungano Group says the 2024 financial year was a defining period for the company, marked by intense operational and financial headwinds that tested the resilience of the business.
“It was a year in which our core coal mining and trading operations faced severe strain, which necessitated urgent interventions to safeguard the group’s future,” Salungano CEO Robinson Ramaite states.
The multifaceted challenges the company faced from production disruption to liquidity constraints and governance breakdowns have, however, galvanised a comprehensive restructuring effort to stabilise and refocus the business.
In the year ended March 31, 2024, Salungano’s gross profit increased to R292-million, from R129-million in the prior financial year. The group’s operating loss also decreased to R309-million, compared with an operating loss of R745-million in the prior year.
Salungano reports that its loss a share decreased to 34.89c in the reporting year, compared with a loss a share of 168.52c in the prior year; however, the group’s headline loss a share increased to 111.91c, compared with 58.65c in the prior year.
The group faced various delays in the publication of its results for the 2024 financial year, as well as of its interim and full-year results for 2025, following changes in auditors and in the finance function within the group itself.
Meanwhile, Salungano notes that, after reaching an agreement with its main lenders, it has lenient repayment terms and expects its facilities to be fully settled by June 2026.
Salungano’s mining division comprises the Moabsvelden, Elandspruit, Vanggatfontein and Khanyisa coal mines, in Mpumalanga. Its subsidiary Keaton Mining applied for business rescue without success amid legal challenges, while its Wescoal subsidiary remains in business rescue.
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