Asa Resources Regulatory News (ASA)

3 Dec 2007 11:30

Mwana Africa PLC03 December 2007 Trading Update London, 3rd December 2007 The Directors of Mwana Africa PLC the pan Africanresource company, have been notified by its 53% owned subsidiary, Bindura NickelCorporation Limited ("BNC"), which is located in Zimbabwe, that despitereporting a profit in Zimbabwean dollar terms BNC results, in US dollar terms,show a loss for the six month period to 30 September 2007. Bindura Nickel remains profitable in Zimbabwean dollar terms, despite lowerproduction levels compared with the first six months of the prior financialyear. However, the severe impact of the reduction in the value of the Zimbabweandollar over the period results in significant translation losses when reportingBindura Nickel's results in US dollars. It is anticipated that production at Bindura Nickel will return to normal levelsfor the second half of the financial year. However, the fiscal and economicconditions in Zimbabwe continue to worsen, and reduce the value to Mwana of anyZimbabwean dollar denominated working capital and cash balances. As a result of the matters noted above, Mwana expects to report a retained lossof not greater than £4* million for the six month period to 30 September 2007. The Interim Results will be published on Thursday December 6. * The figures presented in this announcement are based on International Financial Reporting Standards as adopted in the EU and prepared on the assumption that the functional currency of Bindura Nickel Corporation is US dollars. Enquiries: Oliver Baring, Executive ChairmanKalaa Mpinga, Chief Executive Tel: 020 7654 5588 Mwana Africa plc Tom Randell / David Simonson/ Anca Spiridon Tel: 020 7653 6620Merlin Mark Williams / Ryan Gaffney Tel: 020 7050 6500Canaccord Adams This information is provided by RNS The company news service from the London Stock Exchange