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Falgold Resumes Trading On ZSE Amid Rough Start

Gold mining and exploration concern, Falcon Gold Zimbabwe LTD (Falgold) ended its seven-month hiatus from the Zimbabwe Stock Exchange (ZSE) after the bourse lifted the company from suspension that owed to failure to undertake regulatory requirements.

The company voluntarily applied for suspension in February this year after failing to publish audited financial statements for the period ending 30 September 2018.

In a statement by ZSE chief executive officer Justin Bgoni said the company had taken corrective measures and thereafter applied for the lifting of the suspension in trading of its shares on the ZSE.

“The ZSE Listings Committee satisfied itself that all the compliance issues which led to the voluntary suspension request had been fully met and resolved to lift the suspension with effect from 23 September 2019,” said Bgoni.

On the 14th of August 2019, Falgold published the 2018 audited financial results for the period ended 30 September 2018.

It further went on to hold its members Annual General Meeting on the 9th of September 2019 for the year ended 30 September 2018 and on the 13th of September 2019, Falgold published the half year interim results for the period ended 31 March 2019, fulfilling all outstanding continuing obligations.

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However the company is undergoing a rough patch, recording negative  working capital in its first half performance. This means the company will have to rely on massive borrowing to sustain its operations.

Last month, Falgold posted a US$ 4.8 million loss in the year ending September 30 2018 owing to low mineral production following the termination of a major mining contract and internal job action.

During the period, gold sales fell 51 percent to 78 kgs against 159 kgs realized prior year.

This year alone, Falgold has already suffered a ZWL$24m foreign exchange loss as macro-economic changes compounds its problems.

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