TORONTO-based New Dawn Mining Corporation says it cannot guarantee that it will be able to negotiate a commercially viable plan given the uncertainty surrounding the whole exercise.
Report by Victoria Mtomba
New Dawn operates Turk and Angelus Mine, Golden Quarry and Danly Mine.
In a trading update, New Dawn said Turk and Angelus Mine produced 4,268 ounces, Golden Quarry Camper Down Mine, Dalny Mine 1,948 ounces and 806 ounces during the first quarter to March this year.
Total gold output for the group was up to 9,253 ounces from 9,069.
“As there still continues to be substantial uncertainty surrounding the implementation of the indigenisation policy in Zimbabwe, there can be no assurances that the company will be successful in its efforts to comply with the indigenisation laws and regulations under commercially viable terms and conditions, or at all,”
the company said in a trading update.
“The company is unable to predict the effect of the inability to conclude or implement a plan of indigenisation under terms acceptable to all stakeholders and regulatory authorities.”
New Dawn said its short term focus would be to reduce mine operating costs and increase operating efficiencies under a steady sate low growth production model with the existing plant and infrastructure.
“By the second half of the quarter ended March 31, 2012, the company had addressed the power and ore issues that had adversely impacted operating results at Dalny Mine during the period from October 2012 through January 2013 and had resolved the disruptions caused by an illegal strike during the second half of January 2013.
”Despite these difficulties, the company was still able to increase overall production during February and March 2013,” the company added.
Revenue for the period stood at $14,9 million compared to $16,6 million while earnings before interest depreciation taxes amortisation for the group stood at $417 446.