ZSE suspends Falgold

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THE Zimbabwe Stock Exchange (ZSE) on Tuesday suspended Falcon Gold Zimbabwe (Falgold) after the company delayed publication of its financial results for the year ended September 30, 2018.
In December last year, the gold miner announced that the results would be delayed due to several factors, including an engineering failure at one of its mills.
“The ZSE hereby notifies … of the voluntary suspension from trading in shares of Falgold with effect from February 5, 2019 pending publication of audited financial results for the year ended September 30, 2018,” Martin Matanda, the ZSE’s acting chief executive said in a notice on Tuesday.
“At the company’s request, the ZSE sought and was granted permission to suspend trading in Falgold shares by the Securities and Exchange Commission of Zimbabwe pursuant to the provisions of the Securities and Exchange Act.
“In terms of the ZSE Listings Requirements, the company should continue to discharge its obligations to the shareholders and the Zimbabwe Stock Exchange during the suspension,” Matanda said.
In a cautionary statement in December, the company said it was in communication with its advisors on the impact of matters of concern on the company’s operations and financial condition.
“This will result in a delay in the publication of the September 30, 2018 abridged financial results to shareholders beyond December 31, 2018,” read the statement.
Among the reasons for the delay was a “catastrophic engineering failure” at one of the miners’ mills at its Golden Quarry processing plant.
“In the intervening period, management has been undertaking a full impact assessment and is now evaluating various options to deal with the matter.
“Notwithstanding this mill failure, to date the funding required to execute the 2019 financial budget has not been received by the company and discussions with regards this funding are on-going,” the company said.
The company also pointed out that the inability of gold producers to access foreign currency and the resultant failure of the company to pay outstanding amounts to foreign creditors since June 2018, “have resulted in key creditors cutting off critical operating supplies and a disruption in normal operations”.
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