Shares in resources concern, Falcon Gold Zimbabwe Limited have been suspended from trading on the Zimbabwe Stock Exchange (ZSE) after it failed to publish its annual financial results for the year to September 2018.
Rules of the ZSE state that companies have to publish their reports and accounts for the year to September by December 31, 2018. But, Falcon Gold failed to do so. The miner was given an extension to January 31, 2019. But, the company also failed to meet the extended period deadline.
The Bulawayo-based miner, which also has interests in Venice Mine in Kadoma and Golden Quarry Mine in Shurugwi, has been battling operational challenges and inadequate foreign currency allocations from the Reserve Bank of Zimbabwe.
ZSE said Falgold were unable to meet the deadline and were granted permission to suspend their shares from trading at the local bourse.
“The Zimbabwe Stock Exchange Limited hereby notifies the investing public of the voluntary suspension from trading in shares of Falcon Gold Zimbabwe Limited with effect from February 5, 2019 pending publication of audited financial results for the year ended 30 September 2018.
“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],” ZSE said in a statement this week.
Martin Matanda, the chief executive officer of ZSE said: “After they failed to publish the financial results by December 31, 2019, we gave them an extension to January 31, 2019, which they again failed to meet and they are not yet in a position to (publish their financial results). So they asked us to allow them to voluntarily suspend until they have regularised. The reason is that the investors do not have full information in order for them to trade,” Matanda told Business Times yesterday.
The beleaguered Falgold Gold Mine is 87,4 percent owned by the Canadian mine New Dawn Mining Corporation. Due to the crippling economy, the company had to dispose of its Dalny mine to RioZim for $8 million.
The company, was also forced to temporarily close its Shurugwi-based Golden Quarry in 2017 due to its failure to pay for water and electricity. Workers also went on strike for several months after the miner failed to pay salaries and wages.
Golden Quarry was only opened in March last year after government intervention which led the reconnection of water and electricity to the quarry.
Falcon Gold, like many other local companies, have struggled to pay for imported critical raw materials because of the acute shortage of foreign currency, a situation which has severely impacted on operations. The company also failed to service international debts.