The Sunday Mail
THE Securities and Exchange Commission of Zimbabwe (SECZ) says it is agreeable to tweaking listing requirements in order to make it easier for local mining companies to list on the Zimbabwe Stock Exchange (ZSE).
Listing on the ZSE is naturally accompanied by strict regulatory expectations particularly in publishing financial accounts.
SECZ believes that compelling mining companies to list will help make their operations and activities transparent.
The proposed Mines and Minerals Amendment Bill that was gazetted a fortnight ago seeks to outlaw giving “mining rights or title shall be granted or issued to a public company unless the majority of its shares are listed on a securities exchange in Zimbabwe”.
This has put the majority of local mining houses on the spot.
SECZ chief executive officer Mr Tafadzwa Chinamo said last week mining companies are free to highlight areas of concern so that they can be attended to.
“I know that listing on a stock exchange comes at very huge expense, but if the mining companies can identify what they feel are constraints for them to list on the ZSE, we can tone that down.
“The reasons why mining companies should list on the ZSE are clear: The mining sector is significant to the Zimbabwean economy so it is important for them list allow the nation to know what the firms are mining and the revenues being generated.
“By not listing, the generality of the population is devoid of evidence suggesting that mining is critical in the country’s economy and at the same time the public can not invest in these mines,”said Mr Chinamo.
Last year, the mining sector contributed 9 percent to Gross Domestic Product (GDP), down from 9,2percent in 2014 and 10 percent in 2013.
Only four mining houses —Hwange, Falgold, RioZim and Bindura — are currently listed on the ZSE.
Indirect overseas listings
But most of the mining companies that are not listed on the local bourse are directly or indirectly listed in overseas markets.
Zimplats, which is the country’s biggest platinum producer, is listed on the Australian Stock Exchange.
Mimosa, which second largest, used to be indirectly listed on the Johannesburg Stock Exchange through its parent Aquarius Platinum, which has since been brought under the control of another JSE-listed company, Sibanye Gold.
Sibanye is the largest individual producer of gold from South Africa and is one of the top 10 largest gold producers globally.
Also, while Metallon Gold Zimbabwe, which operates five local mines — Arcturus, Mazowe, HowMine, Redwing and Shamva — is also not listed on the ZSE, its parent company Metallon Corporation is listed on the Alternative Investment Market (AIM) of the London Stock Exchange.
Mimosa didn’t respond to emailed questions last week noting that the issue was policy related.
Zimplats’ head of corporate affairs Ms Busi Chindove could not respond to emailed questions by the time of going to print.
However, Vast Resources PLC chief executive officer Mr Roy Pitchford said currently there are no plans to list on the ZSE but the gold miner will “always comply with the laws of the country, as they may apply to any of its operations in Zimbabwe”.
“Pickstone-Peerless is operating well and we intend to continue mining (so) if it becomes mandatory to list (on the ZSE), we will comply,” said Mr Pitchford.
Vast Resources, formerly African Consolidated Resources (ACR), owns Pickstone-Peerless mine in Chegutu.
Pickstone-Peerless is jointly owned by Dallaglio Investments, a special purpose vehicle established between Vast Resources and Grayfox Investments — a consortium of local investors.
In the last six months, Pickstone-Peerless has been producing between 25kg and 50kg of gold per month.
The current cash shortages are however making operations more difficult. “But the mine has managed to keep operating,” said Mr Pitchford.
