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Mwana Africa struggles

The Number One
mill at Mwana’s
Freda Rebecca mine
 
London, England — MININGREVIEW.COM — 02 July 2009 – Mwana Africa plc – the first African-owned and managed business in the mining sector to be listed on the AIM – says its full-year pre-tax loss has widened nearly eight-fold to £228.1 million (R2.9 billion), as weak commodity prices led the company to scale back and cease certain exploration activities, driving its shares down as much as 38%.

The company said in a statement issued here that a combination of circumstances represented a material uncertainty that might cast "significant doubt" on its ability to continue as a going concern. It added, however, that it had a "reasonable expectation" that it would have adequate resources to continue in operational existence for the foreseeable future.

“The board believes that it is appropriate to adopt a going concern basis in preparing the full-year financial accounts of the group, based on the group’s current level of cash balances, the plan to re-start operations at our Freda Rebecca gold mine in Zimbabwe, and the limited number and amount of contractual, contingent and other liabilities,” the company said.

In addition to resuming operations at Freda Rebecca, the company is looking at options to restart its Bindura nickel operations, which were suspended in October 2008 as nickel prices plunged.

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