Falgold loss widens to $2,4mln in H1

Falgold loss widens to $2,4mln in H1

HARARE, June 29 (The Source) – Struggling miner, Falcon Gold says its net loss for the six months to March has grown $2,42 million, from $351,186 recorded in the comparable period last year after a fall in revenue and higher operating costs.

Revenue declined by 11 percent to $3,66 million from $4,1 million recorded in the comparable period last year on lower volumes.

Gold production declined by 19,4 percent to 2,970 ounces in the period relative to 3,687 ounces produced in the same period last year.

Mining and processing costs increased to $5,63 million in the period from $5,42 million. Administration costs rose 22,2 percent to $635,836 from $520,185.

The group made an operating loss of $2,5 million from a loss of $820,162 previously. Falgold has accumulated losses of $12 million, resulting in a negative equity balance of $13,8 million as at March 31.

However, after selling off Dalny Mine to RioZim for $8 million last year, the company expects to complete several projects next month to boost production.

“To increase the tonnage of higher grade ore from the mines, the long waited project, the 7 level loading station at Golden Quarry and the increased hoisting capacity at Camperdown, are finally scheduled to be commissioned during July 2017,” the company said in a statement.