(Reuters) – South Africa’s Rand Refinery Ltd, one of the world’s biggest gold refiners, said it had tapped shareholders for a $114 million subordinated loan to cover an accounting error, which showed gold that it didn’t have on its books.
The company said “implementation difficulties” with a software system adopted in April last year led it to record 87,000 more ounces of gold on its books than it had in inventory.
The gold was worth around $113 million at Friday’s price of $1,302.31 an ounce.
Mining companies, which are its shareholders, have agreed to lend Rand Refinery 1.2 billion rand ($114 million) to cover the error, the company said. The loan facility is convertible into equity after two years.
AngloGold Ashanti, which owns 42 percent of the refinery, has agreed to lend it up to 574 million rand and Sibanye Gold, which owns a third, up to 449 million rand.
The remainder will be covered by smaller shareholders Harmony Gold and Gold Fields.
The company said it had appointed external financial and technical specialists to advise it and help it finalise its accounts.
Its processing of gold continues at full capacity, Rand Refinery said.