·         Press Release: Caledonia Mining Corporation

·         Old Mutual ETF Changes

·         Listing Update: WestProp

·         Cautionary Statement: Zimplow; Datvest

·         Financial Results for the FY ended 31 December, 2022: CSAG; HCCL; Zimplow; Simbisa

·         Trading Update: Proplastics

Harare - Press Release: Caledonia Mining Corporation

In the week under review, Caledonia Mining Corporation announced the retirement of Leigh Wilson from his role as Director and Non-Executive Chairman of the Company. He became Chairman in May of 2013, and under his leadership, Caledonia has seen an increased production from approximately 45,000 ounces in 2013 to over 80,000 ounces in 2022.

Caledonia also announced about the commencement of the direct sale of gold produced from Zimbabwe. Since listing on the Victoria Falls Stock Exchange and following completion of the Bilboes acquisition, Caledonia has been looking into ways of directly exporting its gold. Unrefined gold is processed at Fidelity Gold Refinery (FGR), a subsidiary of the Reserve Bank of Zimbabwe, on a toll-treatment basis. The exportation of the gold is facilitated by FGR as the holder of a gold dealing licence. The refined gold is then exported to a refinery outside Zimbabwe, the receiving foreign refinery undertakes the final refining process and the gold is sold on behalf of Caledonia. Caledonia receives the proceeds of the gold sales directly into its bank account in Zimbabwe within a few days of delivery to the final refinery. Caledonia pays a 5% royalty and receives 75% of its revenues in US dollars and the balance in local currency.

Old Mutual ETF Changes

Following the delisting of some companies from the ZSE, the managers of the Old Mutual Top Ten Exchange Traded Fund have sought and been granted by the Zimbabwe Stock Exchange the following temporary changes to the operations of the fund: The fund operates as a closed fund for a period of three (3) months from 24 February 2023; There shall be no rebalancing of the fund during this three (3) month period i.e. the composition of the fund shall remain unchanged; There shall be no primary creation and redemption of units on the fund; That the existing units shall continue to trade on the secondary market of the ZSE; The above temporary measures are aimed at bringing stability to the fund; This dispensation shall automatically lapse after the expiry of three month period unless extended by the ZSE for a specified period; In pursuance of (vi) above, the fund managers shall inform the ZSE of the fate of the fund at least two weeks before the expiry of the 3-month period.

Listing Update: WestProp

WestProp Holdings Limited announced that it has achieved full compliance and regulatory approval for the listing of its ordinary shares by way of introduction and as such, trading will commence on Monday the 8th of May 2023 on the Victoria Falls Stock Exchange.

Cautionary Statement: Zimplow; Datvest

Zimplow advised all shareholders and the investing public that the Board approved the delisting of the Company from the ZSE, immediately, followed by a subsequent listing on VFEX.

Datvest modified Consumer Staples ETF announced that as at the end of April, the external auditors had not completed their audit tests and therefore the fund manager sought and obtained the approval from ZSE to defer the publication of the financial statements for the year ended 31 December 2022 which will now be published on or before 31 May 2023.

Financial Results for the FY ended 31 December, 2022: CSAG; HCCL; Zimplow; Simbisa

The Cass Saddle Agriculture ETF published its results for the period ended 31 December, 2022, which reflect a growth in Net Asset Value from ZWL1 per unit at the time of listing in July of 2022, to ZWL1.80 as at the 31^st of December, 2022. Comparatively over the corresponding period, the ZSE All Share Index recorded a 21% return.

In the full year to 31 December 2022, Hwange Colliery Company Limited recorded a revenue growth of 140% to ZWL77.73 billion in inflation adjusted terms, from ZWL32.42 billion recorded in 2021. The growth in revenue was buttressed by a 45% increase in sales volumes, while coal production volumes rose by 63%. However, despite the remarkable increase in production and sales compared to the previous year, the underground mine section was affected by delays in the commissioning of new equipment, while the market for NPD (nuts, peas, and duff) and Duff products was depressed. Overall, the Company reported a loss of ZWL8.6 billion on the back of exchange losses as legacy debts contributed ZWL30.7 billion of unrealized losses in inflation adjusted terms.

Zimplow also published its full year 2022 financial results before announcing its immediate delisting from ZSE. The Company recorded a poor sales volumes in the Agriculture Equipment Cluster in the local market, with Meali Brand volumes dipping 16% while tractor volumes fell by 15%. On the upside, Meali Brand export volumes rose by 36% while hoes and implements went up by 23% and 34%. In the Logistics and Automotive Cluster, the Scanlink truck and bus volumes went up by 88% and 300% respectively due to improved supply chains. Trentyre sales also improved by 2%, with the business unit expected to complete the facelifts and branding of its branches towards end of H1 FY2023 to set Trentyre onto a new trajectory.

In its half-year to 31 December 2022, Simbisa Brands Limited recorded a 23% increase in revenue, which combined a 31% growth in Zimbabwe and 12% in the region. The Company attributed the growth in Zimbabwe to a 38.4% increase in customer counts while regionally, customer counts rose by 8.3%. Overall profit attributable to shareholders and headline earnings increased by 32% and 16%, respectively.

Trading Update: Proplastics

In a Trading Update for the first quarter of 2023, Proplastics posted a 10% growth in sales volumes while revenue remained flat due to a decline in selling price amid a reduction in global prices of major raw materials. Exports accounted for 15% of the aggregate revenue, which is a 91% increase against prior year levels. In line with sales volumes growth, production volumes rose by 10% while raw material supply remained consistent throughout the quarter.

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