Gold producer Falcon Gold Zimbabwe Limited (Falgold) extended its net loss for the year to September 30, 2018 as numerous challenges affected its operations during the period under review.

Its net loss for the period under review amounted to US$4.8 million, up significantly from US$684 074 in the prior year.

Revenue for the period under review remained almost flat at US$46.8 million. During the period under review, the average gold price realized was US$1 277 per ounce as compared to US$1 243 per ounce an increase of 3 percent.

Gold price remained subdued in the 2017/2018 period although an upward trend is projected in the 2019 fiscal year.

Mineral production expenses went down 20 percent to US$8 million while general administration expenses rose 16 percent to US$1,29 million. Capex incurred amounted to US$321 011.

Falgold’s gold sales slid 51 percent to 78 kilograms compared to 159 kgs previously on the back of a prolonged industrial action at one of its mines.

The mine has faced operational challenges such as industrial strike at its at Golden Quarry Mine which resulted in operations of both Golden Quarry and Camperdown mines severely flooded while critical equipment was damaged, both on surface and underground.

The mining firm also battled power supply challenges due to non-payment of bills. And resultantly, the gold producer recorded subdued gold production.

But net operating loss for the year under review narrowed to US$3.2 million from a net operating loss of US$5 million in the prior year.

Falgold attributed the decline in net operating loss to reduced mineral production costs due to the termination of a major mining contract.