HomeBusiness DigestFalcon still after Europe venture

Falcon still after Europe venture

Eric Chiriga

FALCON Investment Holdings Societé Anonyme (Falcon) is seeking to reinvest in Europe as prospects in Zimbabwe remain unclear.

na, Arial, Helvetica, sans-serif”>Falcon is the holding company of Falcon Gold Zimbabwe Ltd that is listed on the Zimbabwe Stock Exchange.

“We continue to seek opportunities to reinvest the group’s cash in a well-established and profitable business in Europe,” Falcon Gold Zimbabwe chairman David Marshall said.

This is contrary to reports that the mining group had abandoned its plans to acquire a subsidiary in Europe.

He said the company had now decided to preserve its infrastructure, key staff and equipment and would take up opportunities as they arise.

Despite the government’s efforts, the mining group in its annual report says Zimbabwe’s economic environment is still in limbo and will not improve any time soon.

“The situation in Zimbabwe remains precarious, with inflation of up to 600% (at the time the report was written),” Marshall said in the report. “We do not expect the situation in Zimbabwe to improve quickly.”

Marshall said although inflation was reported to be decreasing, the current level was having a negative impact on margins at the mine.

“The high rate of inflation means that all cash generated by the mines is required to fund inflationary increases in terms of working capital requirements,” he said.

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