KPMG: ZCI’s Future ‘Uncertain’
Bermuda-based copper mining company ZCI’s operating loss widened to $7.7 million in the six months ended September from $6.7 million the previous year, interim results showed on Friday [Dec 23].
This result prompted auditors KPMG to say the loss “indicates the existence of a material uncertainty that may cast significant doubt on the ability of the company and its subsidiaries to continue as going concerns.”
ZCI, registered in Hamilton, is the holding company of African Copper, whose main project is Mowana, a copper mine in Botswana.
Chairman Edgar Hamuwele said in the results statement that the combination of lower realised copper prices and lower than expected production levels were primary contributors to the underperformance of the operations when compared with the directors’ original projections.
ZCI suffered from falling global copper prices and, in addition, processing costs were higher than budgeted.
Ongoing maintenance costs on the secondary and tertiary crushing circuit also pushed up costs.
ZCI said it was hit too by a weakening of the Botswana pula by about 10 percent against the dollar.
“We remain confident that the projected production figures can still be met,” Mr Hamuwele said.
“While mining operations have yet to achieve forecast production levels consistently, there have been some positive outcomes reported since March.”
During August the mine achieved a record production level of 703 tons of recovered copper.
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