Falcon Gold’s revenues surge

Revenue for the period totalled US$11,5 million from US$1,6 million in the comparative period reflecting the resumption of operations at two of its mines.
Commenting on the full year results, chief executive Mr Ian Saunders said that net income improved to US$1,7 million from a US$2,4 million loss.
As such, net earnings per share for the period under review stood at US$0,016 from a loss per share of US$0,02 in the same period last year.
The Zimbabwe Stock Exchange-listed firm said the resumption of operations at the two mines was supported by expanded installed capacity.
“The increase in revenues was brought about initially by the resumption of operations at Dalny and Golden Quarry mines and then further enhanced by growth in the installed capacity at both mine sites,” said Mr Saunders.
Expanded capacity resulted in significantly increased output, which almost tripled production expenses from US$3,2 million last year to US$8,6 million this year.
And the marked increase in production costs ate into what could have been record profit for the listed gold mining company since dollarisation.
Falgold this year embarked on three-phase expansion programme to be executed in triplicate as parent firm New Dawn targets 1 00 000 ounces per year.
As such, the rod mill at Golden Quarry Mine has been refurbished and is now operating. A third ball mill was installed and commissioned at Dalny Mine.
Upgrades and replacement equipment for the leaching plants, to cater for the increased milling capacity of the two mines, are also nearing completion.
Falcon Gold said the replacement of old and obsolete compressors at both Dalny and Golden Quarry mines has been successfully undertaken.
“As a result, the Golden Quarry underground mine is now fully operational and record hoisting targets are being met. We are actively working at the Dalny Mine to bring four separate underground operating areas into production in the next 12 months,” said Mr Saunders.
The gold mining company said as a result of the Phase 2 expansion projects it has been implementing this year, it expected output at Golden Quarry and Dalny mines to increase by 50 percent and 75 percent respectively.
With the completion of Phase 2 at Dalny and Golden Quarry mines now have milling and leaching capacities similar or greater than at the peak of its success.
Resumption of operations at Dalny and Golden Quarry coupled with the strong gold price means the firm’s strong performance will spill into 2012.
As reported in the interim results to June 2011, the company will increase its exploration activities in the forthcoming year in preparation for Phase 3 growth.
Falgold said it continues to work on indigenisation of the business in full compliance with Zimbabwean laws and believes it will devise an indigenisation plan that is equitable, socially viable and competitive economically.