adminyear with the yellow metal trading at between US$1 400 and slightly above US$1 600 an ounce. However, analysts expect the price, which peaked at US$1 920 an ounce last year, to peak at US$1 800 an ounce by year-end.
In a statement, New Dawn said the new strategy would be implemented until market conditions improve.
“Reflecting current limitations on the availability of investment capital and the recent price of gold, the company has revised its near-term operating strategy to focus on improving operating efficiencies and processes in a steady-state/low-growth production model based on currently installed plant and infrastructure,” it said.
“The company expects this phase to continue until market conditions improve and the company is able to access debt and or equity capital in sufficient amounts to fund the expansion and development of its mining operations and exploration programmes, which, in turn, are primarily conditioned on finalisation and implementation of the company’s indigenisation plan, as well as any impact from unforeseen and or deleterious changes to the business environment in Zimbabwe,” read part of the statement.
New Dawn owns 100 percent of Old Nic, Camperdown and Turk and Angelus gold mines. In addition, through its Falcon Gold Zimbabwe Limited subsidiary, New Dawn currently owns 84,7 percent of Dalny, Golden Quarry and Venice mines, and a portfolio of prospective exploration acreage in Zimbabwe.
The company submitted its indigenisation plan, which is currently being considered by Government.
New Dawn recently reported a 5,9 percent increase in gold production at its operations during the first quarter of this year.
Output for the quarter was 9 253 ounces compared to 8 736 ounces mined by March 31, 2012. — New Ziana.
Online Reporter