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Invictus Completes VFEX Listing as Part of US$10 Million Zimbabwe Investment

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Invictus Completes VFEX Listing as Part of US$10 Million Zimbabwe Investment

Oil and gas exploration company Invictus Energy has successfully completed its listing on the Victoria Falls Stock Exchange (VFEX), with trading commencing today, Mining Zimbabwe has learned.

By Rudairo Mapuranga

The listing is part of a strategic US$10 million Zimbabwean Institutional Placement, with Mangwana Capital, the National Social Security Authority (NASSA), and the Public Service Commission (PSC) investing in the company. This investment is driven by the potential of the Cabora Bassa Project in Muzarabani.

The listing ceremony took place on Friday, 2 August 2024, marking the conclusion of the company’s US$10 million Institutional Placement launched on 29 July 2024 and managed by Mangwana Capital (Private) Limited. The event was graced by senior Zimbabwean government officials, including guest of honour Minister of Finance Hon. Prof. Mthuli Ncube, Minister of Energy Hon. Edgar Moyo, Minister of State for Mashonaland Central Hon. Cpt (Rtd) Christopher Magomo, Mutapa Investment Fund Chief Investment Officer Simba Chinyemba, Zimbabwe Stock Exchange representatives, and various institutional investors.

Invictus worked closely with long-term shareholder Mangwana Capital, which sponsored Invictus’ VFEX listing and managed the issuance of Invictus Zimbabwean Depositary Receipts (ZDRs). Trading of the company’s securities on the VFEX commenced today, with the ticker code INV.vx.

According to Invictus, the VFEX listing is a strategic move that allows Zimbabweans to invest in and trade securities in the company, which is expected to see significant demand. Trading on the VFEX can occur in concert with, but independently of, trading on other exchanges where Invictus is already listed, including the Australian Securities Exchange (ASX) and the mid-tier over-the-counter North American Venture Market (OTCQB).

US$10 Million Placement Underwritten by Mutapa Investment Fund

The Placement, completed on 1 August 2024, is historic for Invictus, with US$5 million underwritten by the Mutapa Investment Fund of Zimbabwe. As the Sovereign Wealth Fund of the Republic of Zimbabwe, Mutapa will also play a leading role in assisting the company and government in finalizing a Petroleum Production Sharing Agreement (PPSA).

The PPSA aims to ensure a fair and equitable distribution of value generated from the Cabora Bassa Project among the government, Invictus, and its partners, while also providing a robust governance framework to manage the project into the future. Mutapa’s underwriting underscores long-term support for the Cabora Bassa Project on behalf of the Republic of Zimbabwe, while several other strategic investors participated in the Placement. The funds raised will help Invictus progress its near-term exploration and corporate strategies as the company transitions from exploration to development.

Comments from Key Stakeholders

Scott Macmillan, Managing Director of Invictus Energy, commented on the completion of the listing:

“This Placement and associated listing of Invictus on the VFEX enable greater and ongoing domestic investment in the company and our Cabora Bassa project. Mangwana and Invictus have worked hard to enable greater participation in the Cabora Bassa Project’s future and the value it can generate at a domestic Zimbabwean level. I thank Mangwana, Mutapa, and our line ministries within government for supporting our commitment to moving the Cabora Bassa Project forward towards potential game-changing development and contribution to the nation’s energy mix. Funds raised through our recent Placement will be used to progress our dual strategy of early monetization as well as further development of Cabora Bassa as we look to expand our resource base through further discovery and transition into development.”

Simba Chinyemba, Chief Investment Officer of Mutapa, remarked:

“By underwriting Invictus Energy’s private placement on the VFEX, Mutapa Investment Fund is not only making a sound financial decision but also taking a decisive step towards empowering a homegrown company with the potential to transform our energy landscape. This investment is a testament to our confidence in Invictus Energy’s value and technical expertise, and their unwavering commitment to responsible resource development.”

Minister of Finance, Hon. Prof. Mthuli Ncube, also shared his thoughts:

“The Government has consistently advocated for increased local involvement in nationally significant projects. The listing of Invictus Energy ZDR, led by Invictus, Mangwana Capital, and MMC Stockbrokers, underscores our commitment to empowering local stakeholders and fostering an environment conducive to sustainable economic growth. Through this listing, VFEX will tap into new markets, attract a broader range of investors, and provide an additional funding channel for economic growth.”

Critical Minerals, Technology, and Sustainability to Highlight Wits Mining Institute Seminar

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Critical Minerals, Technology, and Sustainability to Highlight Wits Mining Institute Seminar

A powerful combination of digital technology insights and thought leadership will underpin the upcoming Wits Mining Institute (WMI) seminar and exhibition on 29 and 30 August 2024 at Wits University in Johannesburg.

Driven by the theme ‘Turning Research Curiosity into 21st Century Minerals Industry Performance, Relationships and Technology,’ the event will focus on pressing current issues including critical raw minerals, circular mining, and sustainability. The focus will include discussions on digital technology and cybersecurity, with input from leading industry players and academia.

The seminar brings together industry participants and leaders in smart mining equipment and systems, health and safety practitioners, mine engineers, critical mineral and resource analysts, researchers in mine closure and sustainability practices, and postgraduate learners. While looking at the current and unique mining landscape in the South African context, speakers will reflect on the status of critical minerals and the state of readiness of the mining sector to transform to smart mining technologies to safeguard mine assets. Other conversations will include discussions on sustainability practices in mining and reduction of carbon emission technologies while preserving the livelihood of local communities.

The seminar represents over a decade of partnership between Sibanye-Stillwater and the WMI. The event is also sponsored by South32, Ramjack Technology Solutions, Schauenburg Systems, Gold One, Fraser Alexander, Glencore, Wits Business School, Accenture, Optron, SITECH, and the Mandela Mining Precinct.

The keynote address will be delivered by Sibanye-Stillwater, while two panel discussions will include participation from companies such as Sibanye-Stillwater, ERM, Amira Global, Cybarete, PwC South Africa, the Council for Scientific and Industrial Research, and Accenture. The WMI will present aspects of its current research, and delegates can tour the WMI’s flagship project, the Sibanye-Stillwater DigiMine.

Two focus areas will be explored in the seminar: integrated critical raw materials research and digital technologies and cybersecurity. Critical raw mineral evaluation will help position the country to be competitive leaders in the supply of minerals needed nationally and globally for renewable energy industries. Speakers will delve into whether we have the data and expertise needed for this evaluation.

Digital technologies are important components of effective monitoring of mine operations and mineral processing. With the surge of AI technologies in the digital space, one is now able to conduct intelligent monitoring and evaluation of operations, but it is essential to consider what this means in terms of implementation in our local context and our readiness to embrace these technologies. Furthermore, how does one plan and safeguard against cyber-attacks in an increasingly digital world?

As advancements in digital technologies transform the mining landscape, the seminar will address the challenges and opportunities of implementing digital technologies, such as material traceability or fingerprinting of commodities from mining operation to the market. These solutions must be applied while ensuring robust cybersecurity measures, effective governance, and the responsible use of artificial intelligence.

As the host organization, the WMI advances research, innovation, and collaboration in the mining industry, with a strong focus on cutting-edge technologies and sustainable practices. The impressive line-up of speakers and panelists will share their expertise to ensure an enriching experience for participants.

Zimbabwe gold buying prices per gram 2 August 2024

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Zimbabwe gold buying prices per gram 2 August 2024

Fidelity Gold Refinery (FGR) official gold buying prices/ gram. See the Zimbabwe gold buying prices per gram today 2 August 2024.

SG 90% and ABOVE US$74.57/g
SG ABOVE 85% BUT BELOW 90% US$73.78g
SG ABOVE 80% BUT BELOW 85% US$72.99/g
SG ABOVE 75% BUT BELOW 80% US$72.20/g
SAMPLE BELOW 10g BUT ABOVE 5g US$71.02g

Fire Assay CASH $74.96/g

NB: Fire Assay cash price is for gold above 100gs, no sample is deducted.
For the Fire Assay Transfer price, a sample of not more than 10g is deducted
A 2% royalty is charged on all deposits (Small-scale miners)
A 5% royalty is set for Primary Producers

Cash available. Fidelity Gold Refinery prices will be changing daily to match world market prices.

MMCZ Sends Out Subagents in Effort to Increase Gemstone Exports

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MMCZ Sends Out Subagents in Effort to Increase Gemstone Exports

The Minerals Marketing Corporation of Zimbabwe (MMCZ) yesterday deployed subagents in the Hurungwe district, tasked with buying gemstones as the Corporation aims to increase exports of semi-precious stones.

By Ryan Chigoche

This development comes at a critical time, as MMCZ exported gemstones worth only US$200,000 in 2023, a figure indicating rampant smuggling through unofficial channels, as the numbers do not reflect local production.

Locals are involved in the gemstone mining sector, which is currently dominated by foreign buyers who then smuggle the stones outside the country, resulting in very low official exports. The subagents will be directly competing with these foreigners for the stones.

Speaking at an event in Karoi, Mashonaland West Province, MMCZ’s Effort Shoko said the subagents in Hurungwe district are the first step to rapidly increasing official exports, with plans to expand to other areas.

“MMCZ subagents will purchase minerals at fair prices for the benefit of the community and the country at large. This area has many minerals, so we are here to ensure they get a fair value. We are also planning to go to other areas with vast gemstone resources,” Shoko said.

Mining research expert and subagent Lyman Mlambo told Mining Zimbabwe that the MMCZ initiative is a step towards formalizing the sector, which is estimated to produce over US$20 billion annually, despite current exports being significantly lower.

“We estimate the industry to be around $20 billion, but what we are exporting is less than a billion every year. The problem is not that we are not producing but the accounting aspect,” Mlambo said.

“And the problem is also the illicit flows in the gemstone sector. Some production goes unaccounted for because it goes, for example, to the Zambian border, where there is a very organized market. So you have a lot of illicit flows from here to Zambia.”

He added that by formalizing the quality of the gemstone market, the subagents can channel production to MMCZ through official channels, enhancing accountability and improving government revenue.

Zimbabwe Miners Federation National Secretary Privelage Moyo, who also spoke at the event in Karoi, concurred with Mlambo and advised miners to sell to the subagents for the benefit of the country and communities, noting that foreigners are paying close to nothing for the minerals.

“Gemstones are a billion-dollar industry, however, the government wasn’t benefiting. The subagents will ensure that the government benefits. No foreign nation should be allowed to buy the minerals on the ground, they should come to MMCZ,” Moyo said.

As it stands, the government is losing fiscal revenue and export revenue due to mineral leakages.

The event was also attended by local chiefs who approved the activities to be undertaken by the 23 subagents operating in Hurungwe.

Zimbabwe has a total of over 40 special coloured gemstones. Mashonaland West Province, where Karoi is located, is home to several significant gemstone deposits that contribute to Zimbabwe’s rich mining heritage.

The region is known for its diverse array of gemstones, including amethyst, aquamarine, and garnets, which are often found in the surrounding mountainous areas. Artisanal miners frequently explore riverbeds and hillsides for these precious stones, leveraging the area’s geological formations. The province is also known for its potential in gold and other minerals, which often coexist with gemstone deposits. Globally, the market for gemstones is huge, with some even fetching more money than diamonds.

MMCZ faces challenges regarding payments, as it can take up to six months for miners to receive their dues. This situation is currently being exploited by foreign buyers who come in with cash, offering far below the original value.

RioZim Achieves 940kg Gold Production in 2023, Up 1% Despite Operational Challenges

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RioZim Achieves 940kg Gold Production in 2023, Up 1% Despite Operational Challenges

Zimbabwe Stock Exchange-listed miner RioZim produced 940 kg of gold in 2023, marking a 1% increase despite facing significant operational challenges throughout the financial year.

By Ryan Chigoche

The company experienced a boost in revenue due to favourable gold prices and increased production. However, production was hindered by persistent plant breakdowns at the Cam & Motor Mine, leading to a 5% decrease in gold production. The Delny Mine, which has faced considerable operational difficulties, remained under care and maintenance during the reporting period, contributing to no production. The Delny Mine has struggled with ageing infrastructure and frequent equipment failures, exacerbating its operational issues and leading to a prolonged period of inactivity.

Significantly contributing to overall production was the Renco Mine, which saw a 10% surge in output. This improvement was attributed to the implementation of a “low grade-high volume” strategy, although inconsistent power supply continued to pose a challenge. To address this, RioZim’s energy project has reached the funding stage following previous regulatory approvals.

RioZim’s diamond business, operated through RZM Murowa, faced a challenging year. Production decreased by 3%, falling to 414,000 carats from 426,000 carats in 2022. Despite the decrease, Murowa remains a key asset for RioZim, known for its high-quality gem and industrial diamonds. The mine has been investing in technology upgrades to enhance efficiency and diamond recovery. Additionally, Murowa is exploring expansion opportunities to increase its resource base and extend its operational life. However, fluctuating global diamond prices and ongoing operational challenges have impacted performance.

The company also faced a disastrous accident at the beginning of the financial year, with the tragic loss of major shareholder representatives and four executives in a plane crash. This incident had a significant impact on RioZim’s financial performance, compounded by persistent plant breakdowns, fluctuating power supply, a turbulent macroeconomic environment, and unfavourable exchange rates.

Additionally, a legal dispute over the company’s chrome claims affected overall business operations. Despite these challenges, RioZim reported several positive aspects, including increased gold production and prices, and a rise in nostro retention from 60% to 75%, which helped alleviate foreign currency shortages.

While favourable gold prices and a slight increase in productivity contributed to a revenue increase, the company still closed the year in the red.

RioZim is an integrated mining and metallurgical company in Zimbabwe with an extensive portfolio of resources in gold, base metals, diamonds, coal, and chrome. Its mining operations include the Renco Gold Mine in Masvingo Province, and the Cam & Motor Gold Mine and Empress Nickel Refinery in Mashonaland West Province. RioZim also holds interests in Sengwa Colliery (Private) Limited with coal assets in Gokwe North, Murowa Diamonds (Private) Limited with operations in Zvishavane, and the Maranatha Ferrochrome Refinery in Kadoma.

The company separated from its parent company, Rio Tinto plc, in 2004 to become a wholly-owned Zimbabwean entity. Its subsidiaries include RioGold Limited, RioZim Base Metals Limited, and RioDiamonds Limited.

Empowering Women in Mining: Moving Beyond Gender to Achieve Success

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Empowering Women in Mining: Moving Beyond Gender to Achieve Success

Women in the mining industry must demonstrate unwavering dedication to their professional growth and understand that mining is a vocation, not an entitlement.

This sentiment was echoed by Rudairo Mapuranga, Chairman of the Association of Junior Mining Professionals of Zimbabwe (AJMPZ), during his address at the 15th Annual Women in Mining and African Networking Forum in South Africa.

The event, organised by the Intelligence Transfer Centre, was held on July 30-31, 2024, at the Birchwood Hotel OR Tambo Conference Centre in South Africa. It focused on transitioning from integration to leadership development for women in mining.

Mapuranga emphasized that women should view themselves as miners first and foremost, rather than relying on their gender as a basis for advancement.

“Women must recognize that they are miners first and should avoid relying solely on the gender card, as it can lead to perpetual complaints of being sidelined by men. Instead, women should focus on self-improvement and take full advantage of laws that promote gender equality. However, it is crucial that they actively participate and show up to seize these opportunities,” he stated.

The forum brought together influential figures in the mining sector to discuss critical issues facing women in the industry. Eng. Dolly Masilela, Mining Superintendent at Exxaro Resources in South Africa, highlighted the importance of skill development, networking, and mentorship.

She pointed out that women should not expect to be employed merely based on their gender. Instead, they should continually enhance their skills and professionalism to rise through the ranks in the mining industry.

“It is also essential for them to build professional relationships with their managers, who may be men, and to always show a willingness to learn,” Masilela advised.

The forum covered a wide range of topics, from the future of female leadership in mining to the role of artificial intelligence (AI) in empowering women within the industry. Leticia Ohemaa Appiah-Asiamah from Goldfields, Ghana, and Itumeleng Mogatusi-Sekgota from Anglo-American, South Africa, shared insights into the challenges women face, such as gender bias and limited access to opportunities. They underscored the importance of addressing these issues to ensure that women can contribute meaningfully to the sector.

Dr. Gargi Mishra of the De Beers Group discussed the transformative potential of AI in the workforce, noting its impact on job requirements, hiring processes, and career progression. She emphasized that while AI presents challenges, it also offers opportunities for women to upskill and become leaders in an increasingly automated world.

The discussion also touched on the value of leadership that transcends formal qualifications. Grace Akinyi, Founder of Women in Mining Kenya, advocated for inclusive leadership that values diverse experiences and perspectives. She encouraged women in mining to seek mentorship, pursue relevant training, and remain curious about new ideas, regardless of their formal education.

As the forum progressed, the focus shifted to entrepreneurial participation and the collaboration between women and men in mining. Payne Farai Kupfuwa, CEO of the Young Miners Foundation in Zimbabwe, spoke about the need to upscale women’s involvement in mining enterprise development. He emphasized the importance of a collaborative future where men and women work together to drive the industry forward.

Throughout the event, speakers reinforced the idea that women in mining must be proactive in their pursuit of success. This includes leveraging available resources, building strong networks, and maintaining a commitment to continuous learning and self-improvement. The forum concluded with reflections on the progress made towards gender equality in the mining industry, while also recognizing the challenges that persist.

The 15th Annual Women in Mining and African Networking Forum, hosted by the Intelligence Transfer Centre (ITC), served as a crucial platform for discussing the future of women in mining. The discussions emphasized that true empowerment comes from a combination of self-dedication, strategic networking, and a willingness to engage with and overcome the unique challenges faced by women in the industry.

Dinson Iron and Steel Company Starts Steel Billet Production

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Dinson Iron and Steel Company Starts Steel Billet Production

Dinson Iron and Steel Company (Disco) has officially commenced the production of steel billets, marking a significant milestone for the Zimbabwean steel industry.

By Patricia Rwafa

The company’s announcement coincides with SADC Industrialization Week, underscoring its role in regional development.

Announcing on X, Dinson Iron and Steel Company said it had started its steel production.

“Exciting news! We’ve taken another step forward—DISCOSTEEL has officially started producing steel billets!” the company said on X.

Disco’s plant manager, Wilfred Motsi, revealed that the furnaces successfully began generating pig iron on July 18, paving the way for steel billet production.

The company’s billion-dollar investment is poised to transform Zimbabwe’s steel sector, according to the government.

To add icing to the cake, Disco will be focusing on showcasing its ability to meet the entire region’s construction steel needs at the 7th SADC Industrialization Week (July 28th-August 2nd) in Harare.

With full production expected within a month, Disco aims to meet both domestic and export demand for steel billets. The company has already secured deals with local and regional clients and is eyeing expansion into markets like Mozambique, South Africa, and Zambia.

Ultimately, Disco envisions an annual production capacity of five million tonnes of steel once all phases of the project are complete.

Anglo-American Delivers Strong Results Amidst Market Challenges

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Anglo-American Delivers Strong Results Amidst Market Challenges

Diversified mining group Anglo American reported a resilient performance in the first half of the year, achieving an underlying EBITDA of $5 billion.

By Ryan Chigoche

This performance comes despite the group facing a challenging market environment with lower product prices, particularly in the PGMs and diamonds sector. The mining giant demonstrated its operational strength by improving costs and maintaining steady production volumes.

For the Platinum Group Metals (PGMs), production from own-managed mines (Mogalakwena, Amandelbult, Unki, and Mototolo) and equity share of joint operations decreased by 12% to 1,051,500 ounces against 1,198,700 ounces in the prior period due to the disposal of Kroondal.

However, second-quarter production was 9% higher than the first quarter, positioning the business well into the second half of the year.

Commenting on the results, Duncan Wanblad, Chief Executive of Anglo American, said:

“I am very encouraged by a strong operational performance that delivered steady volumes and a 4% improvement in unit costs, while still facing weak cyclical markets for PGMs and diamonds. We are on track to reduce our annual run rate costs by $1.7 billion and reduce capital spending by $1.6 billion over the 2024-2026 period. We are moving at pace to create a much more agile and structurally profitable mining company focused on our exceptional quality Copper and Premium Iron Ore businesses, which both continue to perform very strongly, while maintaining our growth optionality in crop nutrients. We are committed to completing the key elements of this transformation by the end of 2025, creating a simpler, highly valued mining company with extensive growth options and considerable strategic flexibility.”

In the financials for the period, the underlying EBITDA of $5.0 billion improved cost performance largely offsetting a 10% lower product basket price.

As diamonds and PGMs prices were weak in the period, copper and iron ore performance and margins were strong, contributing $3.5 billion of EBITDA. In the period, the group’s focus on operational performance delivered results, most notably in its copper and premium iron ore businesses, with EBITDA margins of 53% and 43% respectively.

As a result, unit costs improved by 4%, reflecting weaker currencies, operational improvements, and effective cost control.

On the downside, the group reported a US$0.7 billion loss attributable to equity shareholders, impacted by a $1.6 billion impairment of Woodsmith due to the decision to slow down the project’s development.

Net debt is now at US$11.1 billion, reflecting tight discipline to optimize capital allocation and free cash flow. The group is on track to reduce annual costs by approximately $1.7 billion and reduce capex by US$1.6 billion over 2024-2026.

Despite the performance in the reported period, the group reportedly lost two workers who died in an accident at its Amandelbult PGMs mine in South Africa.

As a result of that incident, the company is tirelessly working towards achieving its lowest-ever injury rate, showing a 23% improvement compared to just two years ago.

The steelmaking coal business also improved production and cost performance. As the group divests one of its mines in this segment, the CEO reported that the company is well underway with continued strong interest from a large number of potential new owners.

“We are transforming Anglo-American by focusing on our world-class asset base in copper, premium iron ore, and crop nutrients, thereby accelerating the recognition of value inherent in our business. From that compelling platform, I believe our proven project delivery capabilities, global relationship networks, and longstanding reputation as a responsible mining company will together help us unlock the outstanding mineral endowment options within our portfolio and other growth opportunities that we will aim to secure over time,” said Wanblad, commenting on the outlook.

Anglo-American operates the Shurugwi located, Unki mine in Zimbabwe.

Meanwhile, a $0.5 billion interim dividend, equal to $0.42 per share, consistent with a 40% payout policy, was declared in the period.

Zimbabwe gold buying prices per gram 1 August 2024

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Zimbabwe gold buying prices per gram 1 August 2024

Fidelity Gold Refinery (FGR) official gold buying prices/ gram. See the Zimbabwe gold buying prices per gram today 1 August 2024.

SG 90% and ABOVE US$73.71/g
SG ABOVE 85% BUT BELOW 90% US$72.93g
SG ABOVE 80% BUT BELOW 85% US$72.15/g
SG ABOVE 75% BUT BELOW 80% US$71.37/g
SAMPLE BELOW 10g BUT ABOVE 5g US$70.20g

Fire Assay CASH $74.10/g

NB: Fire Assay cash price is for gold above 100gs, no sample is deducted.
For the Fire Assay Transfer price, a sample of not more than 10g is deducted
A 2% royalty is charged on all deposits (Small-scale miners)
A 5% royalty is set for Primary Producers

Cash available. Fidelity Gold Refinery prices will be changing daily to match world market prices.

Zimbabwe gold buying prices per gram 31 July 2024

Mining
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Zimbabwe gold buying prices per gram 31 July 2024

Fidelity Gold Refinery (FGR) official gold buying prices/ gram. See the Zimbabwe gold buying prices per gram today 31 July 2024.

SG 90% and ABOVE US$72.62/g
SG ABOVE 85% BUT BELOW 90% US$71.85g
SG ABOVE 80% BUT BELOW 85% US$71.08/g
SG ABOVE 75% BUT BELOW 80% US$70.31/g
SAMPLE BELOW 10g BUT ABOVE 5g US$69.16g

Fire Assay CASH $73.00/g

NB: Fire Assay cash price is for gold above 100gs, no sample is deducted.
For the Fire Assay Transfer price, a sample of not more than 10g is deducted
A 2% royalty is charged on all deposits (Small-scale miners)
A 5% royalty is set for Primary Producers

Cash available. Fidelity Gold Refinery prices will be changing daily to match world market prices.

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