The Herald (Harare)

27 December 2012

Zimbabwe: New Dawn Posts U.S.$61,9 Million Revenue

ZIMBABWE-FOCUSED gold producer New Dawn Mining Corporation has reported revenues totalling US$61,9 million in the year to date from 37 623 ounces of gold produced during the period under review.

This was after the gold producer closed its 2012 fiscal year with a US$523 683 or US1c a share loss for the fourth quarter, as operational pressures and cost pressures offset higher revenue.

This compared with a net profit of US$2, 4 million or six cents a share in the same period last year.

Revenue in the fourth quarter was 17,3 percent higher at US$16,5 million, compared with US$14,1 million posted in the same comparable period a year earlier.

The Canada-based New Dawn's Zimbabwe operating subsidiaries, namely Casmyn Mining Zimbabwe (Private) Limited, Falcon Gold Zimbabwe Limited and Olympus Mines Limited, which are in the process of being indigenised.

New Dawn said in a statement that its management's discussion and analysis that "continuing cost pressures and certain operational challenges, including the effects of a reassessment of the geological model at the Turk and Angelus Mine and the slower than planned transition from processing low-grade tailings sands to accessing higher-grade underground mineralised material at Dalny Mine, combined to cause production inefficiencies and resulted in reduced net income for fiscal 2012 as compared to fiscal 2011, as well as a small net loss reported for the quarter ended September 30."

The company said in response to these issues, it had recently "revised its overall near-term operating strategy to a more steady-state production model."

As the company expects implementation of this change to take several months, the results for the quarter ending December 31, are likely to be similar to those for the fourth quarter.

For the full year, the company reported net income of US$2,3 million or 5c a share on total revenue of US$61,9 million, compared with net income of US$4,3 million or 10c a share on revenue of US$38,3 million last year.

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