We have extracted a excerpt from the 2019 half year interim report for Falcon Gold Zimbabwe (FALG.zw), listed on the Zimbabwe Stock Exchange:
In our Statement to Shareholders accompanying the 30 September 2018 year-end financial statements, we reported that there was a catastrophic engineering failure of the main operating mill at Golden Quarry Mine, which adversely affected production and cash flows. Termination of power supplies by ZETDC further compounded the problems. As a result of this and other cash flow challenges, the Golden Quarry Mine has not been operational. Management has undertaken a full impact assessment and is evaluating various options to deal with the situation including either repair, refurbish or outright replacement of the mill. Notwithstanding the mill failure, to date the funding required to execute the 2019 Budget has not been provided and discussion with the company’s majority shareholder are ongoing.
There have been some positive developments in the operational macro environment for the mining industry as compared to previous years although the tax regime remains unfavourable. The gold price has remained favourable and is predicted to continue the upward trend in the foreseeable future. The power supply situation remains unstable although it is believed that there could be some improvements going forward with the mining industry set to be on dedicated power supply. Management is currently working hard to ensure that as soon as funding is received and some minor repairs to the plant undertaken, the Golden Quarry Mine will resume op