Oliver Kazunga, Senior Business Reporter
TROUBLED mining concern, Falcon Gold (Falgold) will this Friday exit trading on the Zimbabwe Stock Exchange after the company successfully applied for voluntary delisting.
Last month, Falgold announced that it was seeking shareholder approval to delist from the ZSE citing viability concerns. The gold miner, which is a public company and exclusively listed on the ZSE, said it was no longer benefiting from trading on the local bourse. Following an Extra General Meeting held last week, Falgold company secretary, Mr Qubeka Nkomo, in a circular advised shareholders that all the proposed resolutions had been passed.
“The directors of Falgold wish to advise shareholders that in terms of the notice published on 7 October 2020, the company held an EGM of shareholders on 29 October,” he said.
“The results of the voting on the proposed resolutions were that the company’s shares be removed from the main board of the ZSE through voluntary termination of the listing on the ZSE.
“Accordingly, all resolutions proposed to shareholders were duly passed and the listing of Falgold on the ZSE will be terminated on Friday 6 November 2020,” said Mr Nkomo.
The financial results for the six months ended March 31, 2020 indicate that Falgold’s going concern status faces uncertainty as its current ratio during the period was 0,032 percent. This means that Falgold is insolvent and is no longer in a position to pay off its short-term debts. Total current assets for the period under review were ZWL$9,8 million while total current liabilities stood at ZWL$303,3 million.
Furthermore, during the period under review, Falgold sustained operating losses amounting to ZWL$21,2 million (2019: ZWL29,6 million) with a net working capital deficit of ZWL$293,5 million (30 September 2019: ZWL$485,9 million) and negative equity of ZWL288 million (30 September 2019: ZWL$483,9 million).
Forecasts for both the financial year 2020 and 2021 are still being prepared. The group’s gold sales in fiscal 2019 and 2018 were realised solely from operating a gold processing plant at Golden Quarry Mine near Shurugwi. Gold sales for the year ended September 30, 2019 decreased by 42 percent to 1 447 ounces compared to 2 508oz for the year ended September 30, 2018.
During the six months ended March 31, 2019, Falgold reported that it had suffered a catastrophic breakdown of the Main Number 2 Operating Mill at Golden Quarry Mine. This resulted in a cessation of gold production. — @okazunga.