LionGold's financial statements fail to get clean bill of health from auditors

SINGAPORE - Troubled LionGold which is one of the stocks at the centre of the penny stock debacle has announced that its latest set of financials for the year ended March 31 have failed to get a clean bill of health from the auditors PwC.

The audited set of financials also show large differences with the numbers earlier disclosed.

For example, other expenses came in at $100 million but have now ballooned to $149 million. The additional expenses come from a lower-than-expected value of LionGold's investments such as its Citigold Corporation and Unity Mining and Industrial Power Technology. The Konongo Gold project is also likely to be worth less.

LionGold's loss for the year is now $189 million.

PwC cited two factors for why it has issued a disclaimer of opinion meaning that it is unable to express an opinion on whether the statements are true and fair.

Firstly, the $189 million loss and the uncertainty over whether it can raise enough funds together and secondly, the lack of information over the the ongoing Commercial Affairs Department investigation and whether the results will have any impact on the business.