·         Press Release: Caledonia; SeedCo Limited

·         Dividend Declaration: Nampak

·         HY & FY Financial Results: Lafarge; TSL; Nampak; Tanganda; Wildlale; BNC

Harare - Press Release: Caledonia; SeedCo Limited

Caledonia Mining Corporation PLC announced that on the 23^rd of June, 2023, BlackRock Inc crossed a threshold of notification with an interest in excess of 3% of Caledonia’s issued share capital. The USA based company acquired a total voting right of 3.48% in Caledonia, or 669,535.

SeedCo Limited announced that due to the complexity of reporting and concluding audit procedures in a hyperinflationary environment, a delay in the publication of financial results for the year ended 31 March 2023 was necessitated, and results will now be published on or before 31 July 2023.

Dividend Declaration: Nampak

Nampak Zimbabwe Limited issued a notice to its shareholders that the board of Directors declared an interim dividend of ZWL160 cents per ordinary share for the half-year ended 31 March 2023. The dividend will be payable in full to all Shareholders of the Company registered as at the close of business on 14 July 2023 and, therefore, shareholders are requested to submit their updated mailing and banking details to First Transfer Secretaries (Private) Limited.

HY & FY Financial Results: Lafarge; TSL; Nampak; Tanganda; Wildlale; BNC

Lafarge Cement Zimbabwe (Khayah Cement Limited) recorded a mild decline in inflation adjusted revenues for the full year ended 31 December 2022, from ZWL24.6 billion in 2021 to ZWL24.4 billion in the year under review. The decline was due to the -15% fall in production volumes along with a -19% dip in sales volumes owing to a collapse of the cement mill roof during the fiscal year. Despite a -7.6% decline in total expenses due to cost containment measures, inflationary pressures and revenue decline heavily weighed on profitability, leading to a loss before tax of ZWL17.3 billion.

In the 6-months to 30 April 2023, TSL registered a 140% increase in inflation adjusted revenue, along with a 257% growth in profit from operations. This was buttressed by a strong volume growth across all business units particularly the tobacco-related operations as tobacco contractors volumes rose by 44% while independent auction volumes grew by 63%. In logistics business, distribution volumes went up by 51% from prior year while in the vehicle rental services, rental days rose by 13%.

In the half-year ended 31 March 2023, Nampak posted a 2% growth in volumes against prior year levels. At ZWL44.8 billion, the inflation adjusted revenue was 56% ahead of prior year due to increased sales volumes as well as price adjustments. Nampak said trading margins were unchanged compared to the prior year as Nampak sought to remain competitive. The trading profit of ZWL8.3 billion was 63% ahead of prior year.

Tanganda Tea Company published its financial results for the half-year ended 31 March 2023, which reflected a 70% increase in inflation adjusted revenue to ZWL10.97 billion from ZWL6.46 billion in the prior corresponding period. Profit after tax for the period increased by 24% to ZWL1.47 billion from a profit of ZWL1.18 billion in the comparable period. In the agriculture business, bulk tea production stood at 5,582 tonnes while 3,415 tonnes went into the export market, which is a 9% decline from 3,747 tonnes exported in prior corresponding period. On the upside, export average selling price firmed slightly to US$1.45 per kg from prior year average selling price of US$1.43 per kg. In the beverages business, packed tea sales volumes of 929 tonnes remained resilient, 7% below 993 tonnes achieved in the prior year.

Wildlale recorded a 29% increase in inflation adjusted revenue for the half-year period to 31 March 2023. On the downside, the Company posted an operating loss of ZWL606 million due to a low revenue base amid high seasonal costs. Owing to low stock availability resulting from power outages, sales volumes plunged by -16%. Positively, demand for bricks remained firm as several projects resumed after the rainy season.

In the full year to 31 March 2023, Bindura Nickel Corporation recorded a huge dip in revenue, from US$74.2 million in prior year to US$49.5 million. The decline was due to low production levels amid low underground mining mobile equipment availability due to obsolescence. Production was also negatively impacted by an unexpected change in the ore body, leading to a severe decline in the high grade massives resource footprint. In response, the Company has effected a change in mining model from high-grade low-volumes to low-grade high-volumes. BNC’s cost of sales increased by 18% to US$60.5 million, compared to US$51.4 million for the prior year, due to increased power costs, high maintenance of aged equipment and exchange rate disparities. The Company incurred losses before and after taxation of US$24.2 million and US$18.5 million respectively, which represents a decrease of 320% and 329% respectively, year-on-year.

Equity Axis News