Wednesday July 1, 11:38 AM
UPDATE 1-Mwana Africa FY loss widens, shares tank
* FY pretax loss 228.1 mln stg vs 28.7 mln stg a year ago
* FY rev 28.3 mln stg vs 79.3 mln stg
* Says circumstances may cast going-concern doubt
* Shares plunge 38 pct
(Adds details)
July 1 (Reuters) - Mwana Africa Plc, formerly African Gold Plc, said full-year pretax loss widened nearly eight-fold on impairment charges, as weak commodity prices led the mining firm to scale back and cease certain exploration activities, driving its shares down as much as 38 percent.
The African mining firm also said a combination of circumstances represent a material uncertainty that may cast 'significant doubt' on its ability to continue as a going concern.
However, the company said it had a 'reasonable expectation' that it would have adequate resources to continue in operational existence for the foreseeable future.
'The board believes that it is appropriate to adopt a going concern basis in preparing the full-year financial accounts of the group, based on the group's current level of cash balances, the plan to re-start operations at Freda Rebecca and the limited number and amount of contractual, contingent and other liabilities,' the company said.
The company plans to shortly resume operations at Freda Rebecca -- a gold mine in Zimbabwe -- and is looking at options to restart its Bindura nickel operations, which were suspended in October as nickel prices plunged.
For the year ended March 31, the company posted a pretax loss of 228.1 million pounds ($375.3 million), including impairment charges of 190.2 million pounds. It posted a pretax loss of 28.7 million pounds a year ago.
Revenue fell 64 percent to 28.3 million pounds.
Shares of the company were down 28.3 percent at 5.7 pence at 1010 GMT on Wednesday on the London Stock Exchange (LSE: LSE.L - news) . They touched a low of 4.90 pence earlier in the session.
($1=.6077 Pound)
(Reporting by Shivani Singh in Bangalore; Editing by Anne Pallivathuckal) Keywords: MWANAAFRICA/
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