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Epic & Msn data
Epic MWA
Time: 16:35:09
Mid Price: 10.75
Change Today: 0.50 Ascending
Change % Today: 4.88 Ascending
Fifty Two Week High: 16.75
Fifty Two Week Low: 3.18
Market Capital: 43.05
Period & price data
Period Price
Now: 10.75
3 Months ago:
6 Months ago:
1 Year ago:
Additional information
Additional Information
Market: AIM
Sector: General Mining
Epic: MWA
News: Latest news
Web Site: Mwana Africa plc
Other Articles: 04-11-200914-10-200902-09-2009

Mwana Africa plc

Mwana Africa plc, formerly African Gold plc, is a resources company. Mwana Africa has interests in three principal areas: base metals, precious metals and diamonds, in a number of countries on the African continent, including Zimbabwe, the Democratic Republic of Congo, South Africa, Angola, Ghana and Botswana. Its principal activities are nickel and gold production, and exploration and development for diamonds and other minerals. On May 21, 2007, Mwana Africa acquired Gravity Diamonds Limited. On December 22, 2007, Mwana Africa plc completed the acquisition of SouthernEra Diamonds Inc. In November 2008, the Company ceased operations of its nickel mines in Zimbabwe.
Wednesday, July 01, 2009

Mwana Africa hit hard by massive full year loss and need for further capital

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Shares in Mwana Africa PLC (AIM: MWA), formerly African Gold PLC, plummeted after the group posted a massive loss in the full year to end-March 2009, mainly due to an asset writedown, and it announced it probably has to raise more money to keep going.

The stock was trading 37 percent lower in afternoon deals, having extended losses throughout the session in London.

The Zimbabwe-focused gold and nickel miner had to increase the impairment charge for the period to £174.1 million from the £121.0 million figure it had flagged when reporting interims, as a result of exchange rate movements. The charge was a result of lower commodity prices and production halts at the Zimbabwean mines.

Mwana swung to a pretax loss of £228.1 million from a £28.6 million loss previously, while revenue plunged to £28.3 million from £79.27 million.

At June 26 2009 the group, excluding Bindura Nickel Corp, held cash of £13.8 million, which it believes will be sufficient to complete the first phase of refurbishment at the Freda Rebecca gold mine.

The £4 million first phase of the Freda Rebecca restart programme, funded from existing cash resources, is scheduled for completion at the end of September 2009.  Mwana is targeting annualised production of 50,000 ounces gold by the end of 2010 from the second phase of the programme.

Investment opportunities at BNC, development of the group's base and precious metal exploration prospects in the Democratic Republic of Congo, and working capital needs are likely to require additional financing in due course.

“We are hopeful that the current gradual recovery in commodity prices and improvements in the Zimbabwean economic climate will allow us to rebuild our operations, as well as give us the opportunity for improved valuations of our assets in the future,” chairman Oliver Baring said.

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