HomeGoldMwana Africa upbeat on Zimbabwe future

Mwana Africa upbeat on Zimbabwe future

The primary crusher
at Mwana’s Freda
Rebecca gold mine
in Zimbabwe
London, England — MININGREVIEW.COM — 11 December 2009 – Mwana Africa plc – an African-focused mining exploration and development company which has re-opened its Freda Rebecca gold mine in Zimbabwe “’ is encouraged by latest developments in the country, and is cautiously optimistic on the prospects for commodity prices in the markets in which it operates.

Releasing its unaudited results for the six months to 30 September 2009 here, Mwana pointed out that the gold price had continued to set new records as individuals and organisations around the world searched for a store of value in the face of US dollar weakness and likely global inflation. It added that the board believed that the price of nickel “’ which had begun to recover in the first half of the calendar year “’ had stabilised at a level at which the company, and others in the nickel industry, could operate sustainably.

“The prospects for commodity prices, for Zimbabwe and the specific prospects for Mwana have improved over the period,” the company said. “Mwana’s board and management remain focussed on turning the company’s flagship projects to account.”

The company results showed that its Freda Rebecca gold mine had successfully returned to production. Since commissioning of the first phase of the refurbishment programme, 2 580 ounces of gold ore had been produced.

They also revealed that approval had been received from the Industrial Development Corporation of South Africa for up to US$10 million (R75 million) debt funding for the expansion of production at the mine.

Mwana went on to reveal that the care and maintenance programme was continuing at Bindura
Nickel Corporation. A decision had been taken to implement a phased re-start of operations,
beginning with production of concentrate from the Trojan mine, subject to availability of
finance. Discussions with potential financiers were underway.

The company showed a consolidated revenue of £8.5 million (2008:£ 20.8m), and a loss before
income tax and impairment of £3.9 million (2008: £14.1m).