Freda Rebecca Gold Mine

Zuolun, thank you for pointing me to this stock. I took a quick look and I like what I read and I certainly want to look more into this company in the weeks and months ahead. Frankly, this company is much better than any of the smaller mining stocks that I have researched in the ASX market. 

Quick observations: 

Current price - 1.26p, hitting new lows. 

1119.7 mil shares in issue gives a market capitalisation of 14.1 mil pounds

Not sure what is the currency used in the annual report. I assume it is US$

Rev: 109 mil

Loss of 28.64 mil

PPE of 49.3 mil...... mining assets

Intangible assets of 58.2 mil.... exploration assets

Cash of 15.2 mil

Loans of 4.2 mil

Rehab provisions of 18.9 mil.... closure cost of mines.

Provisions of 9.1 mil..... claims in Zimbabwe including claims by the central bank.

Impairment loss of 44 mil ........ substantial decrease in price of Nickel

China International Mining Group Corporation took at 21.7% shareholding for $33.5 mil.....works out to be 3p per share.

----------------

As we announced on 8 July (and as reflected in note 2 to the

Financial Statements), Mwana does require further funding in

the coming months and whilst we have received indications of

support from some of our major shareholders there is no certainty

that funding will be secured. The Board has also mandated

significant cost cuts across all areas of the group which are being

negotiated and implemented, and has deferred payment of all

bonuses to executive directors and senior management until cash

is available for such purpose or alternative means of settlement

can be agreed.



In spite of our funding requirement, the situation at BNC and

negative sentiment in the markets generally towards junior miners,

the operational fundamentals of your company remain strong

and, subject to appropriate funding being sourced, I believe that

Mwana has a bright future ahead of it on the back of progress at

Freda Rebecca, Zani-Kodo and our Katanga copper concessions.



2013 Annual report: www.mwanaafrica.com/investors-and-media/financial-reports/2013/mwana_ar13.pdf

Thanks for the correction. Am still learning about the industry first before drilling down to the details. But it certainly looks interesting especially if the share price falls further. Main concern is still the cost of operations with  the gold price expected to fall below the US$1,200 per ounce.