As before, the key issue that the Group faces is the continued weak world price of gold, consistently around and below US$1,200 an ounce. At these levels, with the current tax regime, rigid labour laws, and the high cost of power, operations continue to be stressed and are being conducted in a constrained manner.

While the Group is still considering funding options for a larger dump retreatment project, it is evident that the tight liquidity situation and the lack of operating profitability are hindering these efforts. The Chamber of Mines of Zimbabwe has for almost 18 months engaged with Government for a review of the high direct and indirect taxes and other charges, together with the high cost of power imposed on gold mining companies. As a result of certain significant changes recently being made to the tax and operating regime for small-scale miners, increased gold production in this area is being achieved. Unfortunately, to date, Government has not reduced the levels of taxes, charges and power rates to the large-scale gold miners and as a result, the gold mining industry in Zimbabwe remains under significant pressure and production is falling. However, there appears to be some hope, given the Government's recent changes in respect of the Chrome sector. Should the larger gold mines enjoy similar incentives, initiatives and price models, there could be significant growth in production from the large-scale gold mines in Zimbabwe. Regrettably, until this happens or the gold price increases significantly, the larger gold mines will continue to suffer...

HY 2015 Financial results