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Tuesday, April 23, 2024
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Falcon Gold Haunted By Losses

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Zimbabwe Stock Exchange listed mining company, Falcon Gold Zimbabwe Limited in 2017 incurred a loss of US$750 978, a slight improvement from the US$1 356 385 recorded in 2016

According the Group Executive Director, Ian Saunders, the reduction in the loss for the year was a result of a gain on the sale of a subsidiary of US$4 058 373.

“The net operating loss for the year ended 30 September 2017 was US$5 163 726, compared to a net operating loss of US$2 689 497 for the year ended 30 September 2016.

“The increase in the net operating loss in 2017 compared to 2016 was mainly as a result of depressed production levels but some increases in base costs were evident in the later part of the year.

“Gold sales in 2016 and 2017 were realized from the Group’s sole operating gold processing plant at Golden Quarry near Shurugwi,” said Saunders.

He also added that gold sales for the year ended 30 September 2017 also decreased.

“ Gold sales for the year ended 30 September 2017 decreased by 72 kilograms, or 31.2%, to 159 kilograms, compared to 231 kilograms for the year ended 30 September 2016, mainly due to inadequate suitable ore deliveries to the plant and, to some extent, equipment failures.

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“The average gold price realized was US$1 243 per ounce for the year ended 30 September 2017, compared to US$1 219 per ounce for the year ended 30 September 2016, an increase of US$24 per ounce or 2.0%.

“The world gold price has improved slightly, and is currently fluctuating in a range between US$1 250 and US$1 300 per ounce, with the forecast in 2018 being that the price appears to be trending towards the upside. Mineral production expenses were US$10 524 587 for the year ended 30 September 2017, compared to US$10 361 326 for the year ended 30 September 2016, an increase of US$163 261 or 1.6%.

“General and administration expenses were US$1 158 256 for the year ended 30 September 2017, compared to US$1 019 672 for the year ended 30 September 2016, an increase of US$138 584 or 13.6%. “Other income from the Dalny Mine toll treatment agreement with RioZim Limited amounted to US$1 213 390 for the year ended 30 September 2017, compared to US$2 425 426 for the year ended 30 September 2016, and is included in profit from discontinued operations,” said Saunders

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