Caledonia Mining readies for VFEX listing

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  • Decision in light of VFEX incentives
  • Listing expected before the year end
  • Padenga also listed on bourse lured by the same benefits

Harare – London Stock Exchange (LSE) listed mining company Caledonia Mining Corporation has said that it has initiated the process of pursuing the listing of depositary receipts representing the company’s shares on the Victoria Falls Stock Exchange (VFEX) lured by incentives announced by the treasury a short while ago.

The company says their listing will be dependent on the implementation of the positive proposals announced by Finance and Economic Development Minister, Mthuli Ncube in respect of gold miners who list on the VFEX.

“I welcome the step towards a more liberal financial environment which is embodied in the proposed benefits attaching to a listing on the Victoria Falls Stock Exchange,” said Caledonia Chief Executive, Steve Curtis.

In May the government introduced export incentives that guaranteed gold miners who exceed their historical monthly average gold deliveries to Fidelity Printers and Refiners (FPR) an 80% forex retention threshold earned while those listed on the Victoria Falls Stock Exchange (VFEX) will be entitled to retain 100 percent of their incremental earnings.

Miners will also be allowed to export the extra produce directly to their markets although under the supervision of FPR.

This came after the central bank twitched the export earnings retention policy, in January, to only allow exporters to keep 60 percent of their total foreign currency earnings down from 70 percent in order to channel liquidity for the foreign currency auction system.

These same incentives lured Crocodile skin and meat producer turned gold miner, Padenga holdings to the bourse as well.

Last month the company announced plans to terminate its listing on the Zimbabwe Stock Exchange in favor of the incentivized and U.S dollar-denominated VFEX and it will effectively start trading on the bourse beginning Monday the 11th of July 2021.

Caledonia expects to secure a VFEX listing before the end of this year, to be effected by the placing of depository receipts to reportedly raise approximately US$3 million.

Caledonia Mining is the major shareholder in Zimbabwe’s second-biggest gold mine the Blanket Mine located in the southwest of Zimbabwe approximately 15 km west of Gwanda, the provincial capital of Matabeleland South.

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