FALCON Gold Zimbabwe Ltd (Falgold) says gold production at its mines declined by 9% during the six months to March 31, resulting in a loss of $33 billi
Disruption of operations by the Zesa power outages had been largely to blame for the decline, the gold mining firm said.
Falgold warned that if there was no major capital injection, future gold production was going to be severely curtailed while the proposed 51% takeover of stakes in foreign-owned mining operations by the government scare investors from injecting fresh capital in operating mines.
The gold producer said a total of 13,2 kg of gold, equal to $33 billion in revenue, could not be produced due to power outages.
The group produced 270,1 kg (8 684 ounces) of gold from 538 610 tonnes treated.
Falgold chairman, David Marshall said the output was 31 kg (997 ounces) lower than that produced during the same period last year.
“Operations have been disrupted by the prevailing Zesa power outages and in many cases exacerbated by underground mine workings being flooded,” Marshall said in a statement accompanying the group’s unaudited results for the half year.
He said the power outages had resulted in lower tonnage throughput which was 24% below budget.
“Gold production declined at both Dalny and Golden Quarry by an average of 9%,” he said.
Marshal said although the group registered a pre-tax profit of $149,2 billion, the cash-flow position was bad.
Dalny Mine produced 140,75 kg of gold from 452 591 tonnes processed while Golden Quarry produced 129,37 kg of gold from 86 019 tonnes, a yield of 1,5 grammes per tonne.