· Dividend Notice: Caledonia
· Notice of Appointment: African Sun; Cottco
· Rights Issue Announcement: Econet; Ecocash Holdings
· Financial Results: Border Timbers; RioZim; OK Zim; WestProp
Harare - Dividend Notice: Caledonia
The board of directors of Caledonia Mining Corporation Plc declared a quarterly dividend of 14 United States cents (US$0.14) on each of the Company's shares with a record date of 13 October, 2023. The dividend will be paid on 27 October, 2023, and shareholders with a registered address in the UK will be paid in Sterling.
Notice of Appointment: African Sun; Cottco
African Sun Limited announced the appointment of Lewis Chikara as the Chief Finance Officer, effective 1 October, 2023.
Cottco Holdings Limited also announced the appointment of Priscilla Mutembwa as the Chief Executive Officer of Cottco Holdings Group with effect from the 1st of October, 2023. Munyaradzi Chikasha was subsequently appointed as the Chief Operating Officer of Cottco Holdings Group effective on the 1st of October, 2023.
Rights Issue Announcement: Econet; Ecocash Holdings
Pertaining to a Rights Issue meant to redeem due debenture holders, Econet in conjunction with Ecocash Holdings Zimbabwe Limited, recorded a 100% subscription level on the rights offer. A total of 401,586,371 were offered on the scheme, and 56.16% were subscribed in foreign currency of US$17,026,487.96 while 0.45% were subscribed in local currency worth US$136,111.07 when converted to US$. A total of 43.39% was taken by the underwriter and a total of US$30,319,771.01 was raised by the Group through the Rights Offer.
Financial Results: Border Timbers; RioZim; OK Zim; WestProp
In the full-year ended 30 June 2023, Border Timbers registered a 23% growth in revenue from US$12.9 million in 2022 to US$15.8 million. According to Border Timbers, the growth in revenue was attributed to improved product mix and consistent product quality of the Kiln Dried Timber resulting in better average selling prices. The Company said following the completion of assessment of its functional currency, a conclusion was made to the effect that the US$ primarily influences Border Timbers’ operating activities, and therefore became the functional and reporting currency from ZWL. The Company reported a profit before tax of US$0.9 million, substantially down from US$9.8 million recorded in 2022. However, the 2022 profit was mainly driven up by a non-cash gain on biological asset transformation of US$14.8million. In the Forestry and Sawmilling segment, a -10% decline was recorded in lumber sales volume to 38,792 cubic metres due to lower aggregate demand, primarily in the local market. In the Manufacturing division, Treated Poles sales volume fell by -28% to 7,297 cubic metres owing to timing differences which are experienced in the acquisition of pole tenders, which is asymmetrical.
In the half-year to 30 June, 2023, RioZim Limited recorded a 6% increase in gold production from 393kg in prior corresponding period to 417kg. The growth was driven by increased volumes at Cam & Motor Mine following the recently installed BIOX Plant. The Company posted a revenue of ZWL49.96 billion, up from ZWL4.76 billion in the comparable period last year due to increased gold output as well as exchange rates variation from the comparative prior period. On the downside, RioZim suffered a net loss for the period of ZWL8.7 billion on the back of increased cost of inputs. In the Gold Business, production at Renco Mine rose by 11% to 194kg due to the successful shift to the ‘high throughput low grade’ strategy. The Dalmy Mine was under care and maintenance during the period while production at Cam and Motor Mine grew by 6% to 223kg. In the Base Metals Business, the Empress Nickel Refinery was under care and maintenance throughout the period while in the Chrome Business, there was no change on the chrome claims in Darwendale as the court case is still pending finalization. In the Diamond Business, production at RZM Murowa firmed by a staggering 84% to 212,000 carats following the recently installed 500 TPH Plant which was commissioned in the second half of the previous year.
OK Zimbabwe reported a 33% growth in inflation adjusted revenue to ZWL311.3 billion. The growth was attributed to inflationary pressures which outweighed the -7.7% decline in volumes as local currency liquidity shortages suppressed consumer spending levels. Consequently, profit after tax fell by -36% to ZWL5.2 billion. The Group alluded that the profit performance was impacted by the increase in operating costs arising from increased usage of generator fuel due to acute power outages, inflation pressures embedded in forward pricing by market players, as well as exchange rate induced cost increments on labour, cleaning and security costs. A total of ZWL6.1 billion was incurred as capital expenditure, down from ZWL8.9 billion, with most of it channeled towards store refurbishments, and the acquisition of a subsidiary amounting to ZWL3.7 billion.
In the 6-months to 30 June 2023, WestProp Holdings Limited registered a mild increase in revenue to US$11,770,480 in the period under review, from US$11,656,632 recorded in the comparable period in the prior year. While the Group projects to record a gross profit in excess of US$20 million per year for the next 3-years, a profit after tax of US$2,721,208 was achieved in the half-year period under review. The Group’s land banks, inclusive of the 70% interest in Sunshine Developments (Private) Limited, had a market-based fair value of USD 201,750,000 at the close of the period under review. At US$2,374,208, operating expenses for the 6-months under review were twice the prior year’s level of US$1,249,458, and this growth is attributed to ad hoc public relations, IPO, audit and professional fees pertaining to Initial Public Offer and listing requirements on Victoria Falls Stock Exchange in the period. On the upside, the Group’s liquidity improved by 248% in the period under review, with the Group having cash and cash equivalents of USD 1,495,991 as at 30 June 2023 compared to USD 430,091 in the prior year.
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