Mwana Africa's revenues rose to US$44,4 million compared to US$30,6 million in the prior year.
The group had a reduced loss of US$11,7 million against US$23,4 million in 2010 and a reduced loss attributable to Mwana Africa shareholders of US$3,4 million against a US14,5 million loss in 2010.
There was an impairment reversal of US$19 million at Freda Rebecca due to the successful restart and production ramp up and its exploration spend was US$12,5 million compared to US$6,5 million in 2010.
A share placement of 46,4 million shares in November last year raised about US$7,8 million net of expenses and there was a draw-down of US$4 million by Freda Rebecca under its Industrial Development Corporation (South Africa) facility in February.
Freda Rebecca gold production increased from 8 550 ounces to 27 240 ounces during the period under review. Subsequently its contribution to the group's revenue increased to US$13,8 million from US$9,7 million last year.
Mwana also reported that it has detailed plans for the resumption of operations at the Bindura Nickel Corporation Trojan Mine. Commenting on the results, Mwana chief executive Mr Kalaa Mpinga said:
"During the last 12 months our team has worked hard to increase cash flow from our producing assets, whilst continuing the exploration programme at our promising gold and base metals assets in the DRC.
"Our strengthened balance sheet, also following two successful fundraisings . . . and strong ramp-up in production at the Freda Rebecca Mine have created a strong basis on which to grow during the year ahead.
"With restart plans progressing at BNC, we look forward to delivering further value from our assets over the next twelve months," he said. Mwana recently agreed to advance US$10 million to its local unit Bindura Nickel Corporation to restart operations.
Post published in: Business Analysis