How this mining company turned R10,000 into just R125 in five years
Sable Exploration and Mining (SEAM) has incinerated 99.55% of investor value since 2019 – turning R10,000 into just R125 – while reporting a R47 million annual loss, seemingly operating without a CEO, and its auditors have questioned its ongoing viability.
Image: SoraAI
Sable Exploration and Mining (SEAM) has incinerated 99.55% of investor value since 2019 – turning R10,000 into just R125 – while reporting a R47 million annual loss, seemingly operating without a CEO, and its auditors have questioned its ongoing viability.
Yet it continues to attract investment, a history of failed rebrands, and joint ventures with entities like Boo Wa Ndo, whose owner publicly seeks funding to "make the dream a reality'.
Five years ago, the stock was trading at 11c and has lost 99.55% since then. Your loss from your investment would be R9,875. The industrial metals and mining company, which received a demand for an annual general meeting on 10 December 2024, is currently worth R2.8 million.
In fact, it is doubtful as to why the company still even exists. Its auditors, CM & Associates Incorporated, questioned its ongoing viability as a business in their opinion statement in the latest annual report, given that it incurred a net loss of R47 million for the year to February.
SEAM's then CEO, James Allan, who has since retired, noted in the annual report that it lost a 'considerable' amount in profit because of a joint venture partner's failure to provide funding for a project. IOL could not find a statement to shareholders indicating it had appointed a new CEO.
The company also has a history of attempted buyouts and consequent name changes. In 2023, PBNJ Trading and Consulting offered shareholders 100c a share to buy out the rest of the company it did not already own. Only 9.8% of all the SEAM shareholders accepted the offer, resulting in PBNJ Trading and Consulting owning 59.9%.
At that stage, its shares were worth 99c.
In 2012, it listed under the form of Sable Platinum and its name was changed to Sable Metals and Minerals in March 'to more fully reflect the broader mineral interests of the company,' it said on its website.
Consequently, it was approached by unnamed Middle Eastern investors who wanted to focus on diamond acquisitions, but they never came through with the funding. Regardless, the company's name changed to Middle East Diamond Resources Limited in January 2016.
Because the promised investment never happened, trading in shares was suspended until 2022, by which time it had brought its accounts up to date and changed it name again, this time to Sable Exploration and Mining.
Despite reporting losses, it has successfully attracted investment from Ironveld, which committed to funding the completion of a beneficiation plant to produce magnetite. SEAM has also signed a deal with Boo Wa Ndo for the latter to buy a 55% interest in the prospecting rights and mining permits over two properties in Limpopo. Boo Wa Ndo is apparently owned by Thulani Ngwenya, who says on his LinkedIn profile that he's seeking investment for his projects to 'make the dream a reality'.
'This transaction strengthens SEAM's asset base and aligns with its exploration mandate and will improve the cashflow,' it said upon announcing the deal.
Interestingly, one of its independent executive directors is Hazel Bango-Moyo, a CA with more than 19 years of experience. Bango-Moyo, who this contributor has personally met, is exceptionally bubbly and has won awards.
She started Primorial in 2017 to help small businesses grow by offering financial services advice, including support in filing their tax returns.
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