Zimbabwe’s new monetary policy allowing mining companies to directly market their gold overseas and retain 100% of sales in U.S. currency is working smoothly, New Dawn Mining (ND-T) reports.
The junior gold miner said today it had received payment for two bars of fine gold that it had exported to Rand Refiners of South Africa.
Directly marketing its own gold and receiving US funds makes “the previous risk of non-payment for gold sales no longer a significant negative factor in considering an investment in the gold mining sector in Zimbabwe,” the company states.
New Dawn recently received US$551,000 for the two gold bars (636 ounces) it sold to Rand Refiners, representing a sale price of US$870 per oz. gold less direct costs.
New Dawn subsequently shipped an additional 450 ounces of fine gold to Rand Refiners and says it expects to receive payment within ten business days.
The payments have provided enough working capital for New Dawn to start buying goods and services it needs to expand operations at its Turk mine.
New Dawn owns 100% of both the Turk and Angelus mines in southwestern Zimbabwe, with a production facility capable of processing up to 400 tonnes per day or 12,000 tonnes per month.
The company also holds a 74% interest in the Blue Dot property in South Africa with a production facility of 180 tonnes per day or 5,500 tonnes per month.
At presstime New Dawn was trading at 65 per share. The Toronto-headquartered company has traded within a 52-week range of 5 and $2 per share and has about 29 million shares outstanding.
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