Falgold reports $1,3mln FY loss

Falgold reports $1,3mln FY loss

HARARE, January 4 (The Source) – Resources group Falcon Gold has reported a loss of $1,3 million for the year ended September 30, 2016 from a profit of $6 million in the previous year due to low production.

Revenue was 18 percent down to $9 million from $11 million as Gold sales decreased by 22,5 percent to 231 kg due to power outages and equipment breakdowns, the group said in a statement.

Gold price averaged $1, 219 per ounce; 4,7 percent higher than $1,164 in the previous year.

Mining and processing costs were 7,8 percent down to $10 million from $11 million.

Administration costs went down by 23 percent to one million dollars from $1,3 million.Total assets stood at $12,5 million from $12,7 million.

Falgold sold its Dalny Mine Complex to RioZim. Chief executive Ian Saunders said that the deal would raise working capital to renovate the group’s infrastructure.

Going forward, the group said it will focus on controlling costs and increasing production at its remaining operations at Turk Mine near Bulawayo and the Golden Quarry Mine in Shurugwi.

Falgold, which is 84,7 percent owned by Canadian-listed New Dawn Mining Corporation, said only the Golden Quarry, also called Camperdown Mine, has been operational for the past two years.