The Zimbabwe Stock Exchange (ZSE), yesterday, suspended Falcon Gold Zimbabwe Limited shares for failing to publish its financial results for the financial year to September 30 2018.
Falcon Gold is reportedly citing operational challenges which have been worsened by inadequate foreign currency allocations by the Reserve Bank of Zimbabwe (RBZ), on the failure to publish last year’s results.
“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 financial results for the year ended 30 September 2018,” ZSE Act Chief Executive Officer (CEO) Martin Matanda said.
“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(a) (ii) of the Securities and Exchange Act [Cap 24:25].”
Besides inadequate foreign currency allocation, Falcon Gold also blames a catastrophic engineering failure which happened in December last year for failure to produce the September 30 2018 financial results.
“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 ongoing,” company directors said in a cautionary statement.
“In the intervening period, management has been undertaking a full impact assessment and is now evaluating various options to deal with the matter at hand.”
The mining company has been facing challenges with the government in January this year ordering on the company’s mines to immediately cease operations as a safety measure following the collapse of Wanderer mine on boxing day last year.
Falcon is also battling losses with the September 2017 financial results showing a $751 000 loss.
“In terms of Section 1 paragraph 1.8 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.