African Gold has reported an operating loss of £23,000 in the year ended September 30th, down from £60,000 a year earlier.

The company attributed the narrowing of the losses to a profit from gold production in Zimbabwe, offset by corporate overheads. Gold production in Zimbabwe increased despite the economic uncertainty and political unrest in the country, the company said.

However, it said the reverse takeover of African Gold by an oil producer would not now proceed due to falling oil prices which rendered the acquisition unprofitable and potentially cash negative.

But the company said it continued to explore acquisitions in resources. "With commodity prices on the floor, there is a stream of potential opportunities," African Gold said.