Marange Resources Technically Insolvent, Future in Doubt

Mining and Exploration
26/06/2015 09:08

Marange Resources, one of 7 private entities operating the Marange diamond fields in Zimbabwe, all of which are partnered with the government under the affiliate Zimbabwe Mining Development Corporation (ZMDC), 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.