BULAWAYO – Falcon Gold Zimbabwe Limited, one of the country’s biggest and oldest gold mines, was on Tuesday readmitted into the Zimbabwe Stock Exchange (ZSE), seven months after being suspended for failing to produce financial results in time.
The ZSE said the lifting was with effect from Monday.
“The Zimbabwe Stock Exchange hereby notifies the investing public of the lifting of suspension in the trading of Falcon Gold Zimbabwe Limited shares with effect from September 23, 2019,” said Justin Bgoni, the ZSE chief executive officer.
“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 September 23, 2019,” he said.
Once a bellwether stock, Falcon has been facing serious problems in the past two years, amid fears the mining giant could be forced to shut down.
It has suffered a string of losses.
Some of the corrective measures that the gold miner took in order to get the reprieve included publishing its financial results for the period ended September 30, 2018 and for the half-year ended March 31, 2019 and holding an annual general meeting.
Falcon Gold Zimbabwe Limited is 84,7% owned by Canadian-listed New Dawn Mining Corporation.
In the six months ended March 31, 2019, Falgold recorded losses amounting to $27 million against $1,7 million reported in the same period last year.
The group posted a net working capital deficit of $11 million, up 68% from the 2018 figure and a negative equity of $44 million.
Falgold produced 1 849 ounces of gold during the period with an average sale price of US$1 350 per ounce on the sale of 1 961 ounces of gold, compared to 1 920 ounces of gold recorded in the prior year at an average sale price of US$1 321 per ounce.
Gold production decreased by 71 ounces or 3,7% in 2019, compared to 2018 while mineral production expenses increased to $5 million.