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Quarterly Progress Report - February 2024
SALUNGANO GROUP LIMITED
Incorporated in the Republic of South Africa
(Registration number 2005/006913/06)
Share code: SLG ISIN: ZAE000306890
("Salungano Group" or "the Company")
QUARTERLY PROGRESS REPORT – FEBRUARY 2024
Shareholders are referred to the ongoing suspension in trading of the Company's shares on the JSE Limited
("JSE"), which came into effect on 21 August 2023 ("the Suspension") for failing to publish its audited
financial results for the year ended 31 March 2023 ("FY2023 financial results") within the prescribed period.
In terms of paragraph 1.11(c) of the JSE Listings Requirements, Salungano Group is required to provide
shareholders with an update on a quarterly basis until the Suspension is lifted, on the state of affairs of the
Company and any action proposed by the Company in order to have the listing reinstated, including the date
on which the suspension is expected to be lifted.
FY2023 financial results
As mentioned in the 'Quarterly Progress Report - November 2023' announcement released on SENS on
30 November 2023, the delay in the finalisation and publication of the FY2023 financial results relates to the
finalisation of the Company's refinancing agreements ("refinancing process"). The refinancing process has
not yet been concluded. Noting the prolonged delay in the publication of the FY2023 financial results, the board
of directors of Salungano Group ("the Board") has agreed with the auditors to sign off on the audit as a matter
of urgency, notwithstanding the incomplete refinancing process. It was initially anticipated that the FY2023
financial results could be published by mid-March 2024.
However, due to the recent court application to place a wholly-owned subsidiary under supervision and to
commence business rescue proceedings, as outlined in the announcement released on SENS on 27 February
2024, the auditors have indicated that an additional review of the FY2023 financial results is necessary due to
the possible impact of this post-reporting period event on the results. The Board now anticipates that the results
will be published on or before 15 April 2024.
The Company will provide a further update in this regard in due course.
Interim financial results
The Company's interim financial results for the six months ended 30 September 2023 ("FY2024 interim
financial results") are, in accordance with paragraph 3.17 of the JSE Listings Requirements, required to be
published by no later than 31 December 2023. Due to the delay in the publication of the FY2023 financial
results, the publication of the FY2024 interim financial results will be delayed. It is the Company's intention to
release the FY2024 interim financial results as soon as possible after the release of the FY2023 financial
results.
Voluntary business rescue processes of subsidiaries of the Company
Shareholders are referred to the cautionary announcement released on SENS on 25 August 2023 and the
subsequent renewals thereof, the last of which was dated 27 February 2023, regarding the voluntary business
rescue of Wescoal Mining Proprietary Limited ("Wescoal Mining"), a wholly-owned subsidiary of the Company,
and are hereby advised that the business rescue practitioners have requested approval from creditors to
postpone the publication of the proposed business rescue plan, as provided for in the Companies Act, 2008
(Act 71 of 2008), as amended, from 29 February 2024 to 28 June 2024 due to the complexity of the affairs and
operations of Wescoal Mining.
Shareholders will be updated on the Wescoal Mining business rescue process as further material information
becomes available.
Shareholders are referred to the further cautionary announcement released on SENS on 27 February 2024
regarding the application to place Keaton Mining Proprietary Limited ("Keaton Mining"), a wholly-owned
subsidiary of the Company's wholly-owned subsidiary, Keaton Energy Holdings Limited ("Keaton Energy
Holdings") under supervision and to commence business rescue proceedings, and are hereby advised that
court proceedings have not been finalised. Shareholders will be kept informed of the outcome of the court
proceedings by way of a further SENS announcement.
Date on which Suspension is expected to be lifted
As set out above, the Board expects the FY2023 financial results to be released on or before 15 April 2024.
The release of the FY2024 interim financial results is expected to follow on or before 31 July 2024. The Board
intends to appoint independent non-executive directors to the Company on 29 February 2024 to restore the
balance of power at Board level and to enable the adequate composition of committees that are currently
inadequately constituted. The Board appointments will be communicated to Shareholders by way of a SENS
announcement in due course. Accordingly, it is the Board's best estimate that the Suspension will be lifted on
or about 1 August 2024.
Johannesburg
29 February 2024
Sponsor
Merchantec Capital
Date: 29-02-2024 05:07:00
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