Trustco flags possible Meya write-down
Trustco Group Holdings is assessing whether it will need to write down the value of its investment in Meya Mining after the diamond project suffered further delays to commercial production, the company said in a cautionary announcement, adding that the review relates to its exposure of US$46 million (approximately N$758.33 million).
The assessment follows information received from Meya Mining's operator and the company's audited financial statements for the year ended 31 December 2025, which confirmed that the mine has yet to enter commercial production and has remained on care and maintenance since January 2025.
Trustco said it holds a minority equity interest in Meya Mining and is owed about US$46 million through a loan receivable. It stressed that it is not the mine's operator, does not exercise operational control and has no representation on Meya Mining's board.
The company said Meya Mining had previously announced a US$25 million financing facility with Ecobank Sierra Leone, supported by Ecobank Ghana, to support the mine's transition to full commercial production. However, the latest information shows that transition has been materially delayed.
According to Trustco, Meya Mining's operator said the project was placed on care and maintenance in response to weak conditions in the global diamond market. The mine is expected to remain in that state until at least the fourth quarter of 2026, when its status will be reassessed. No date has been confirmed for the start of commercial production.
Meya Mining's audited financial statements also show that the company generated no revenue during the 2025 financial year because commercial production had not commenced.
The accounts received by Trustco include an unqualified audit opinion containing a material uncertainty related to the company's ability to continue as a going concern. They also report net current liabilities of US$36.6 million at the end of December 2025 and state that Meya Mining remains dependent on available banking facilities and continued shareholder support.
Trustco said it has not provided any suretyships, guarantees or other credit support for Meya Mining's obligations.
The company said it is evaluating how the latest information could affect the carrying value of both its equity investment and its loan receivable as part of the ongoing audit of the Trustco Group's financial statements.
"The financial effect may be material to the Group," Trustco said.
The company advised shareholders to exercise caution when dealing in its securities until it publishes a further announcement quantifying the financial impact.
