Zimbabwe Stock Exchange (ZSE) has suspended listed gold mining and exploration company, Falcon Gold Zimbabwe Limited from trading of its shares pending publication of audited financial results as the company seeks delisting from the local bourse.
The suspension came at the behest of the company.
“The Zimbabwe Stock Exchange Limited (“ZSE”) hereby notifies the investing public of the voluntary suspension from trading in shares of Falcon Gold Zimbabwe Limited with effect from 02 March 2020 pending publication of audited financial results for the year ended 30 September 2019 and a circular to shareholders regarding the proposed termination of listing,”
“At the Company’s request, the ZSE sought and was granted permission to suspend trading in Falcon Gold Zimbabwe Limited’s shares by the Securities and Exchange Commission of Zimbabwe pursuant to the provisions of Section 64 (1) (a) (ii) of the Securities and Exchange Act [Cap 24:25]. In terms of Section 9 of the ZSE Listings Requirements, the Company should continue to discharge its obligations to the Shareholders and the ZSE during the suspension until finalization of the termination of listing,” the ZSE said in a statement.
Falgold is a subsidiary of the New Dawn Mining Corp involved in the exploration, extraction and processing of mineral deposits in Zimbabwe.
It owns Dalny Mine in Chakari, Venice Mine in Kadoma and Golden Quarry Mine in Shurugwi.
The struggling gold producer has been experiencing operational bottlenecks for some time due to its failure to repair and replace antiquated machinery owing to capital constrains.
In its half year trading period to 31 March 2019, Falgold posted a US$ 27 million loss largely driven by foreign exchange losses amounting to US$23 917 228.
Falgold was initially suspended from the ZSE in March last year for failing to meet listing requirements before being reinstated on the bourse seven months later after fulfilling its obligations.
The company’s decision to delist has been necessitated by its inability to publish financial statements for the year ended 30 September 2019 compliant with IAS 29 standards, distressed operating and financial condition and the continuing inability to obtain capital under current conditions.
