Zimbabwe Stock Exchange-listed mining and exploration concern Falcon Gold Limited’s (Falgold) profit for the period nearly quadrupled to $3,1 million for the half-year ended March 31, driven by growth in revenue and a resurgence of two mining operations.
Falgold, which released its unaudited financial statements for the period under review, announced plans to raise $10 million to ramp up production.
Earnings per share rose to 0,028 cents from 0,007 recorded during the previous year.
Company chairman Ian Saunders attributed the growth in revenue to increased output of bullion at Dalny Mine and Golden Quarry.
“Net income for the six months ended 31 March 2012 was achieved on significantly higher revenues, brought about by continued growth in output at both Dalny Mine and Golden Quarry/Camperdown Mine,” said Saunders in a statement accompanying the financials.
“The company produced 9819 ounces of gold for the six months ended 31 March 2012 (average sale price $1 688 per ounce on 9 693 ounces sold), as compared to 4 447 ounces of gold for the six months ended 30 June 2011 (average sale price $1 471 per ounce on 3 821 ounces sold).”
The company’s administration costs accounted for 9,7% of mining and processing costs during the period under review compared to 15,8% recorded during the same period last year.
“It is anticipated that future production growth in the company will come from improved output and grades from the underground at Dalny Mine, the restart of the Venice and additional capacity being installed at Golden Quarry Mine,” Suanders said.
“However, it should be noted that these projects require an amount greater than is practical to provide from current operating cashflows.
“Accordingly, the company is currently exploring sources of new funding amounting to approximately $10 million,” he added.
Falgold, which is a unit of Toronto Stock Exchange and Frankfurt Stock Exchange-listed New Dawn Mining Corporation, proposed an indigenisation implementation plan to the government in a bid to comply with regulations compelling foreign-owned companies to dispose of 51% shareholding to black Zimbabweans.