By Business Reporter – Wednesday 19 February 2020
HARARE (Mining Index) – FALCON Gold Zimbabwe recently made a formal application to the Zimbabwe Stock Exchange (ZSE), voluntarily delisting from the local bourse.
The Zimbabwe Stock Exchange responded by halting trading of Falgold shares on the local bourse in according with Clause 4.13.2 of the ZSE Trading Rules and Procedures.
The delisting of Falgold is due to a myriad of reasons, which include inability to publish financial statements for the year ended September 30 2019 compliant with IAS 29 standards, distressed operating and financial condition of the company and the continuing inability to obtain capital under current conditions.
In February 2019, Falgold volunteered to be suspended from trading after they had failed to publish their audited financial statements for the period ended September 30, 2018.
In its unaudited interim consolidated results for the six months ended March 31, 2019, Falgold’s total comprehensive losses amounted to $27 million against $1.7 million reported in the same period in 2018, with a decrease in gold production by 71 ounces.
The catastrophic engineering failure of the main operating mill at Golden Quarry Mine which rendered the mill inoperative coupled with termination of power supplies by the Zimbabwe Electricity Transmission and Distribution Company (ZETDC) adversely affected Falgold production and cash flows FY2019, after which the company announced its consideration for an additional $2.5 million to recapitalise its operations to enable repair of the mill and resuscitation of mining operations.
According to a cautionary statement released on 24th January 2020, Falgold said it was faced with operational challenges, an indication its earlier proposal to raise at least US$25 million has not yet been achieved.
Falcon Gold company secretary Q. Nkomo hinted;-
“The Directors of Falcon Gold Zimbabwe Limited wish to advise its Shareholders and members of the public, that the Company is still contemplating a Capital Raise which, if successfully concluded, may have an effect on the price of the Company’s shares,”
“The Directors therefore advise the Shareholders of Falcon Gold Zimbabwe Limited, and the public, to exercise caution and to consult their professional advisors when dealing in the shares of the Company.”
Founded in 1991, Falcon Gold is a subsidiary of New Dawn Mining Group. It primarily explores for gold, base metals and precious metals, with an operational processing plant and ancillary infrastructure which supports a central processing plant that treats ore from Pickstone. ENDS// www.miningindex.co.zw
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