Braemore Resources, the nickel and platinum group metals (pgm) producer with operations in Australia and South Africa, has announced that its pgm production in the six months to December 31st 2008 was hampered by work to replace a smelter.

The company confirmed that production ceased in September 2008 when its 1.5MW smelter was taken offline as part of a process which saw it replaced with a larger 3.2MW ConRoast smelter.

Production news appeared in a trading statement released on the back of fears of increased losses for the six months to December 31st 2008.

Under requirements relating to a company's listing on the Johannesburg Stock exchange (JSE), directors are obliged to release an update to shareholders if it becomes apparent that the next set of financial results to be issued show at least a 20 per cent discrepancy when compared with the equivalent figures from the year before.

As such, Braemore Resources has been forced to acknowledge the fact that its earnings and headline earnings per share are likely to reveal a loss of 0.56p for the half-year ending on December 31st 2008.

This is a marked decrease on the 0.15p loss recorded in the six months to December 31st 2007 and is likely to equate to an after-tax loss of £4.4 million.

Sources:

Trading statement, 24/03/09
http://www.braemoreresources.com/im/press_display.php?Id=2009/24mar09

Braemore warns interim loss expected to widen, 24/03/09
http://www.miningweekly.com/article/braemore-warns-interim-loss-expected-to-widen-2009-03-24