BY TAFADZWA MHLANGA
THE Zimbabwe Stock Exchange Limited (ZSE) has lifted the suspension of Falcon Gold Zimbabwe Limited (Falgold) from trading on the local bourse with effect from Monday.
In a statement, ZSE chief executive officer Justin Bgoni said the exchange was content with all the compliance issues that had led to the suspension of the company on February 5, 2019, hence the decision to lift the ban.
“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,” Bgoni said.
“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.”
Falgold was suspended from trading on the local market after it failed to publish financial results for the year ended September 30, 2018.
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.