Zimbabwe situation accounts for gold mining firm losses

African Gold, the London-based AIM listed gold miner has announced pre-tax losses to March 2003 of £121,000 (€171,000).

Chairman John Teeling attributed the losses to several factors, including the current economic chaos in Zimbabwe.

He listed soaring inflation rates, crumbling infrastructure and scarce supplies as contributing factors but cited a breakdown in their saw mill and the consequent three-month loss of production as having been the main cause.

Although he said the company will persist he said it could not survive forever waiting for Zimbabwe to 'come good'.

African Gold's facility near Kaloma in central Zimbabwe is currently operating at about 10% of capacity.