| 36. | Going concern |
|
As stated above, the Group had cash and balances held with Central Treasury of R1 156 million and no debt at the reporting date. The Group benefits from unutilised debt facilities through its 20.5% share of the Venture, which the Board considers sufficient to sustain the business for at least the next 12 months if the need arises. The Group's forecasts and projections of its short to medium-term profitability, taking account of likely changes in production and performance, show that the Group will be able to operate within the level of its cash resources and facilities for at least 12 months from the approval date of the annual financial statements. The Group generated EBITDA of R533 million and made a profit after tax of R143 million in the current year. Merafe Group and the Company maintain healthy cash balances per note 14 with access to banking and other lending facilities. The Group and Company's credit and liquidity risks have been assessed in notes 28.1 and 28.2. Having considered the Group and Company's key risks, current financial position, solvency and liquidity, debt levels, lending facilities available through the Venture, impairment review, as well as the Group and Company's financial budgets with their underlying business plans, the directors believe that the Group and Company have sufficient resources and cash flows to be able to continue as a going concern at least for the year ahead. The Group and Company's lending facilities are referenced in note 28.2. |