[miningmx.com] –MWANA AFRICA, the pan-African multi-commodity resources company, reported the narrowing of its interim loss by posting a loss of ₤4.35m for the six months to end September 2009, compared with a loss of ₤135.16m a year ago.
This was despite the halving of its interim revenue from ₤20.84m in the six months to end September 2008 to ₤8.55m in the same period this year.
Consolidated net cash at end September 2009 was ₤13.5m against last year’s ₤31.3m.
Mwana Africa, excluding Bindura Nickel Corporation – which is on care and maintenance – held net cash of ₤9.1m at end September 2009 compared to ₤25.8m last year.
The company said the past six months have seen notable achievements at each of its principal assets; most significant of these was the resumption of production from the Freda Rebecca gold mine in Zimbabwe.
Production at the mine is continuing to ramp up towards the planned rate of 30 000 ounces of gold per year.
During the quarter, the company received approval from the Industrial Development Corporation (IDC) for up to US$10m debt funding for the expansion of production at Freda Rebecca.
Mwana said the provision of project finance by the IDC would enable the company to accelerate implementation of the second phase of the refurbishment programme.
Drawdown of the loan remains subject to legal documentation, and to fulfilment of certain conditions precedent, which the board expects will be satisfied in the first quarter of 2010.
At BNC, the care and maintenance programme, begun about twelve months ago, continues to preserve the integrity of the asset.
“During the period, a number of potential restart scenarios have been considered, and a decision has been taken to resume production from the Trojan mine and concentrator, subject to the availability of finance.
Independent technical consultants have been appointed to review this scenario, and discussions with potential financiers have commenced,” said Mwana.
