LionGold

LionGold: Issues profit warning and expects substantial increased losses in 3Q11 compared to prev quarter. The factors for the increased loss is from impairment of goodwill in its Mali invts, cost and expenses associated with gold mining activities in Mali, provision for amts, fees and expenses due to The Chinese Society of Environmental Sciences for co’s proposed acquisition of Signature Metals.

While the amount written down by impairment of goodwill is not known, this highlights the speculative element in LionGold’s assets where the investment in Mali was made less than a year ago. Currently LionGold is still loss making.