eBusiness Weekly
Enacy Mapakame
The Zimbabwe Stock Exchange (ZSE) has suspended Falcon Gold Zimbabwe Limited (Falgold) from trading after it failed to meet some requirements of the local bourse’s listing regulations.
The suspension is with effect from 5 February 2019 pending publication of its financial results for the year ended 30 September 2018. Listed companies are required to publish half year and full year financial results and updating shareholders at a stipulated time, in line with listing regulations.
The suspension came after approval by the regulator, Securities and Exchange Commission of Zimbabwe (SECZ) after Falgold requested for a voluntary suspension from the bourse while it puts its house in order. “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 5 February 2019 pending publication of audited results for the year ended 30 September 2018,” said acting ZSE chief executive officer Martin Matanda.
“At the company’s request, the ZSE sought and was granted permission to suspend trading in Falcon Gold Zimbabwe shares by the Securities and Exchange Commission of Zimbabwe pursuant to the provision of section 64 of Securities and Exchange Act,” he said.
The suspension of Falgold means there are now only two active resources companies on the bourse – Bindura and RioZim – after coal miner Hwange was also suspended on November 02, 2018 following its placement under administration by Government. In the prior month, Government placed Hwange under administration to allow it to recover and return to profitability.
Meanwhile, Falgold is still required to continue discharge of its obligations to shareholders and the ZSE during the suspension period. In the half year to March 31, 2018, Falgold reported a total comprehensive loss of $1,6 million on depressed gold production. Gross loss narrowed to $1,1 million from $1,9 million while operating loss also narrowed to $1,7 million from $2,5 million. Revenue for the period was 29 percent lower at $2,586 million.
The company has also faced operational challenges such as industrial strike at its Golden Quarry Mine, which resulted in operations of both Golden Quarry and Camperdown mines severely flooded while critical equipment was damaged, both on surface and underground.
