Falcon Investment Holdings Societe Anonyme - Cautionary Announcement
Falcon Investment Holdings Societe Anonyme
(Incorporated in Luxembourg - R.C. Number B39773)
(`the Company`)
Share code: FLC ISIN number: LU0042254812
CAUTIONARY ANNOUNCEMENT
The attention of shareholders is drawn to the following announcement recently
released by the Company`s subsidiary, Falcon Gold Zimbabwe Limited.
`FALCON GOLD ZIMBABWE LIMITED
CAUTIONARY STATEMENT
Shareholders are advised that the company`s operations have been subjected to
sharply increased costs. Such increases are partially attributable to the
levels of inflation prevailing in Zimbabwe, but have been compounded by certain
operational costs being in excess of such inflation. In particular, the company
has been faced with significant escalations of energy charges, and is confronted
with recent considerable NEC Wage Awards having retrospective effect.
Notwithstanding increases in the Gold Support Price as announced by the Reserve
Bank, revenues do not suffice to service the substantially greater operating
costs now being incurred and, therefore, the company is sustaining losses.
Representations have been made to the appropriate Authorities for remedial
actions necessary to restore operational viability. However, pending
determinations of such Authorities, the company`s immediate future is uncertain.
Shareholders are, therefore, advised to exercise caution in any dealings in the
company`s shares, pending further announcements as responses to such
representations are forthcoming. `
In light of the above, shareholders in Falcon Investment Holdings S.A. are
advised to exercise caution and consult their professional advisors when dealing
in the Company`s shares.
2nd December 2004
City Group P.L.C.
Group Secretaries
Sponsor
Imara Corporate Finance South Africa (Pty) Ltd
Date: 02/12/2004 07:00:02 AM
Produced by the JSE SENS Department
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
