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RBZ Forecasts 5% Economic Growth, Due to Lithium Investments

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Despite recent monetary challenges experienced in the country, the Reserve Bank of Zimbabwe (RBZ) through its midterm monetary policy statement has projected robust economic growth at over 5 per cent in 2023 up from the initial forecast of 3.8 per cent on account of ongoing investments in lithium production.

Rudairo Mapuranga

The growth is also attributed to a better performance by agriculture, mining in general, ICT and tourism as supported by expected improvements in electricity generation in the second half of the year.

According to the statement, the mining industry continues to support economic growth and development with a visible investment in the lithium industry due to a rise in global demand. The growth forecast has also been necessitated by the improvements in gold deliveries to the country’s sole gold buyer and exporter, Fidelity Gold Refinery (FGR).

“The mining sector also continues to support growth, benefiting largely from ongoing investments in lithium production, following a rise in global demand for the manufacture of batteries for electrical vehicles.

“Gold deliveries that had been affected by incessant rains, particularly for small-scale and artisanal miners, during the beginning of the year have shown significant improvement. Cumulative gold deliveries stood at 14 181 kg by June 2023,” reads the statement in part.

Zimbabwe’s mining sector is highly diversified, with close to 40 different minerals. The predominant minerals include platinum group metals (PGM), chrome, gold, coal, and diamonds. The country boasts the second-largest platinum deposit and high-grade chromium ores in the world, with approximately 2.8 billion tons of PGM and 10 billion tons of chromium ore. The sector accounts for about 12 per cent of the country’s gross domestic product (GDP), and the minister of mines claims the sector has the potential to generate US$12 billion annually by 2023.

Mimosa production declined by 2.9 percent

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Impala Platinum Holdings Limited (Implats) and Sibanye Stillwater 50/50 owned Platinum group metals (PGM) producer Mimosa Mining Company during the Financial year ended 30 June 2023 recorded a 2.9 per cent decrease in tonnes milled compared to the previous year ended 30 June 2022 due to severe load-shedding.

Rudairo Mapuranga

According to Implats through its production update and initial trading statement for the year ended 30 June 2023, tonnes milled at Mimosa declined by 2.9 per cent to 2 735 000 from 2 816 000 during the previous year due to severe power cuts in the country.

“In addition to load curtailment at South African managed and JV operations during the period, severe load-shedding was experienced across the Zimbabwean national grid in March 2023, while operations at Mimosa were impacted by further intermittent power outages in May and June,” Implats said.

According to the trading update, Mimosa’s 6E Grade also declined by 1.4 per cent to 3.77g/t during the year ended 30 June 2023 from 3.82 g/t the previous year.

The group further stated that 6E in concentrate declined by 0.5 per cent to 245 000 ounces from 246 000 ounces the previous year due to power interruptions, changes in reagent supply and poor water quality.

“At Mimosa, 6E in concentrate volumes declined to 245000 ounces. Processing and plant stability was impacted by the commissioning and optimising of the concentrator project, power interruptions, changes in reagent supply and poor water quality,” Implats said.

How to ensure you are buying real Gold

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Gold has been cherished and sought after for centuries due to its lustrous beauty and inherent value. Whether you are buying gold from the famous Makorokoza (ASM) across Zimbabwe or selling gold, or simply wanting to verify the authenticity of your gold investment, it is essential to know how to test for gold authenticity.

Many have lost funds trying to get into the fastest-rising industry in the country getting “Brasso” instead of gold. Some unscrupulous individuals who dupe unsuspecting buyers will add bicycle size “Steel balls” and coat them with real gold to increase the weight of their product. While professional jewellers and gold dealers have access to accurate and sophisticated tests, there are several methods that individuals can employ to evaluate the authenticity of gold.

Visual Inspection

The first step in testing gold authenticity is to visually examine the item. Authentic gold will have a consistent colour and shine. It should not appear overly dull, tarnished, or discoloured. While some variations in colour may exist due to different karat levels, be cautious of gold that appears too light or too dark, as it could be an indicator of counterfeit or impure gold.

Magnet Test

Gold is not magnetic, so using a magnet is a simple yet effective test for gold authenticity. Hold a strong magnet close to the gold item and observe whether there is any attraction. If the item is attracted to the magnet, it is likely not made of authentic gold.

Density Test

Gold is a dense metal, and its purity can be tested by comparing its density with a known authentic gold sample. To perform this test, sign up for a gold density testing kit, which typically includes a beaker, precise measurements of distilled water, and a specific procedure to follow. By accurately measuring the displacement of water when gold is submerged, one can determine its density and purity level.

Acid Testing

Acid testing is a widely-used method to verify gold authenticity. However, it is important to exercise caution and perform this test only with appropriate safety measures as it involves working with corrosive acids. An acid testing kit can be purchased, which generally includes different acid solutions to test various karat levels of gold. A sample is scratched or rubbed against a test stone, and acid is then applied to the streak mark. The reaction observed will help determine the gold’s purity.

XRF Analysis

For more accurate and advanced testing, X-ray fluorescence (XRF) analysis is the go-to method. XRF analyzers can be expensive and require professional expertise; hence, it is typically employed by professionals such as jewellers, pawnshops, and gold refineries. These machines use X-rays to determine the elemental composition and purity of the gold accurately.

The float test

Just drop the piece into a container of water. Gold is dense. If it doesn’t float at all or hover over the bottom of the container, you could possibly have real gold.

A ceramic scratch test

Take an unglazed ceramic plate or piece of tile and scrape a piece of gold across its surface. Real gold will leave a gold mark or trail. Other metals will leave a black trail.

The density test

This is done by calculation. You need

  • A scale (to weigh the jewellery)
  • A container of water and
  • A way to measure the level in millimetres (to measure the water levels before and after the jewellery goes into the water)

Now do the calculation: subtract the “before” measurement from the “after” measurement. Then divide the weight of the jewellery by the difference in the water levels.

This gives you the density.

The standard density of real gold is 19.3 grams per milliliter (also written 19.3g/mL). Not a lot of other metals come very close to it. If your calculation gives this figure or something very close to it, you probably have real gold.

When you use density to distinguish gold’s authenticity, you also need to keep in mind that there can be differences in density between different types of gold.

For example, the purer the gold, the heavier it will be–and white gold is heavier than yellow. Therefore, the density of gold between 14k and 22k will be anywhere between around 12.9 and 17.7 for yellow gold and anywhere between around 14 and 17.8g/mL for white gold.

Vinegar test

This test simply requires that a few drops of vinegar be applied to the metal, hopefully in an inconspicuous place.

If the metal is real gold there will be no change. If the metal is fake gold it will change color.

Fire Assaying

Fire assay is considered the most reliable method for accurately determining the content of gold, silver, and platinum-group metals (except osmium and ruthenium) in ores or concentrates. This process involves melting a gold-bearing sample in a clay crucible with a mixture of fluxes (such as silica and borax), lead oxide (called litharge), and a reducing agent (frequently flour). The fluxes lower the melting point of the oxidic materials, allowing them to fuse, and the molten litharge is reduced by the flour to extremely fine drops of lead dispersed throughout the charge. The drops of lead dissolve the gold, silver, and platinum-group metals, then coalesce and gradually descend through the sample to form a metallic layer at the bottom of the crucible. After cooling, the lead “button” is separated from the slag layer and heated under oxidizing conditions to oxidize and eliminate the lead. The shiny metallic bead that is left contains precious metals. The bead is boiled in nitric acid to dissolve the silver (a process called parting), and the gold residue is weighed. If platinum metals are present, they will alter the appearance of the bead and their concentration can sometimes be determined by the use of an arc spectrograph.

While these testing methods can provide helpful insights into gold authenticity, it is crucial to note that some counterfeiters are becoming more sophisticated in replicating authentic gold. Therefore, it is wise to seek professional assistance from a reputable jeweller or gold dealer if you are uncertain about the authenticity of your gold.

In conclusion, testing gold authenticity requires a combination of visual inspection and various tests, including magnet, density, acid, and XRF analysis. Familiarizing yourself with these techniques will help you make more informed decisions when buying or selling gold, ensuring that you possess genuine pieces that hold their inherent value.

Zimbabwe gold buying prices 18 August 2023

Fidelity Gold Refinery (FGR) official gold buying prices Friday 18 August 2023. See the Zimbabwe gold buying prices today.

SG 90% AND ABOVE US$57.61/g
SG ABOVE 85% BUT BELOW 90% US$57.00/g
SG ABOVE 80% BUT BELOW 85% US$56.39/g
SG ABOVE 75% BUT BELOW 80% US$55.78/g
SAMPLE BELOW 10g BUT ABOVE 5g US$54.87/g
FIRE ASSAY CASH US$57.92/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.

Armed robbers loot Cement company’s mining tools

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A Chinese manufacturer Sino-Zimbabwe Cement Company in Lalapanzi, Midlands was recently robbed of a variety of mining implements by a group of armed robbers.

Police Midlands spokesperson Inspector Emmanuel Mahoko confirmed the development saying investigations are still underway.

“Zimbabwe Republic Police confirms that a section called Magazine site, of Sino-Zimbabwe Cement Company, Lalapanzi was robbed of a variety of mining implements by a group of 8 armed robbers. The incident occurred on 13 August 2023,” he said.

Circumstances are that at least eight security guards were on duty when the robbers pounced on them at the mining site armed with machetes and logs.

It has been gathered that four of the suspects went on to shatter the windscreens of the security guard’s motor vehicle before manhandling two guards who were in the vehicle whilst the other four suspects proceeded to the main plant.

“All the six security guards were tied with the wire ropes and force marched to a nearby bush where they were heavily assaulted with logs. One suspect was left to keep an eye on the victims whilst the other robbers went to the magazines site and stole 21 SB codes, 2121 rills of power codes and 76 boxes of Emex 2(270) explosives and drove away in an unidentified truck,” he said.

Police attended the scene and investigations are ongoing.

New Zimbabwe

Zim Set to Introduce Gold-Backed Digital Tokens

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The Reserve Bank of Zimbabwe (RBZ) through its midterm monetary policy statement announced that it is at an advanced stage in the preparations for the eventual rolling out of Gold Backed Digital Tokens (GBDT) in phase II of the project coded ZiG (Zimbabwe Gold) that will be complementing the use of the US dollar in domestic transactions.

Rudairo Mapuranga

According to the RBZ governor Dr John Mangudya, the ZiG will be used as legal tender and a store of value alongside the US dollar and Zimbabwean dollar.

The move is part of a wider plan by the central bank to stabilise the country’s local unit, which has been faltering against the US dollar, by mopping up excess liquidity in the market.

Ideally, backing a digital currency with gold involves having a certain measure of gold reserves and depends on the current market value of gold.

“The Bank is at an advanced stage in the preparations for the eventual rolling out of GBDT for transactional purposes in Phase II of the project under the code or name ZiG, which stands for Zimbabwe Gold. It is envisaged that the transactional phase will see GBDT complementing the use of the US dollar in domestic transactions.

“The Bank will conduct appropriate awareness campaigns in all national provinces and districts of the country to educate the public on the use and benefits of GBDT.

“The GBDT are envisaged to form the basis for the development of the country’s central bank digital currency (CBDC)since ZiG in its current form and design exhibits most of the characteristics of a CBDC,” Dr Mangudya said.

Zimbabwe gold buying prices 17 August 2023

Fidelity Gold Refinery (FGR) official gold buying prices Thursday 17 August 2023. See the Zimbabwe gold buying prices today.

SG 90% AND ABOVE US$57.85/g
SG ABOVE 85% BUT BELOW 90% US$57.24/g
SG ABOVE 80% BUT BELOW 85% US$56.62/g
SG ABOVE 75% BUT BELOW 80% US$56.01/g
SAMPLE BELOW 10g BUT ABOVE 5g US$55.09/g
FIRE ASSAY CASH US$58.16/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 about world market prices.

Mining revenue surpasses target by over 1% in 2022

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The collection of revenue by the Zimbabwe Revenue Authority (ZIMRA) for the mining industry surpassed projections by 1.15 per cent in 2022, ZIMRA annual report for 2022 reveals.

Rudairo Mapuranga

However, the mining industry only accounted for 3 per cent of the total tax collected by the revenue collection agent. ZIMRA said that collections were negatively affected by poor international commodity prices.

“The revenue head surpassed the target by 1.15%. Mining Royalties accounted for 3% of total revenue in 2022 and there was not much change from its contribution in 2021. Collections were negatively affected by poor international commodity prices,” ZIMRA said in part.

The following are some of the revenue heads which are administered by ZIMRA:

According to ZIMRA individual revenue head surpassed its target by 4245%, contributing 19% to total revenue up from 17% in 2021. With performance driven by periodical salary adjustments by some employers in line with the cost of living.

The revenue collection authority said, Collections from Corporate Income Tax were 5.09% below target and contributed 15% to total revenue down from 2042% in 2021. The revenue had failed to meet its target despite the Authority’s Intensifying various revenue-enhancing activities such as sector-based audits and door-to-door visits to harness revenue from various sectors.

Value Added Tax beat the target by 28.37% and contributed 25% to annual revenue. In 2021 VAT contributed the same proportion to total revenue Performance of VAT was positively impacted by, Enforcement activities, The use of Fisca devices and increased value of consumed Vatable products and meticulous verification of VAT refunds before payment.

The 2022 annual contribution to total revenue for Customs Duty was 8% and this was an increase from 7% in 2021. Net collections under the revenue head were 44.92% above the target. Key contributing commodities to Customs revenue in 2022 were motor vehicles, parts of machinery, liquefied butanes and tyres. Enforcement activities such as risk-based post-clearance audits and anti-smuggling initiatives impacted positively the revenue head’s performance.

Intermediated Money Transfer Tax (IMTT) revenue head surpassed the target by 25.64% during the year and collections were 9% of total revenue down from 9.64% in 202. IMTT’s performance is a reflection of the increase in the number and value of transactions conducted electronically IMTT audits conducted during the year, also yielded significant amounts of revenue

Other Taxes contributed 6% to total revenue having surpassed its target by 1049%.

Zulu, Canmax offtake agreement restored

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Premier African Minerals and China’s Canmax Technologies have Amended and reinstated the Zulu Lithium and Tantalum project Offtake and Prepayment Agreement which the parties had previously agreed in August last year but was terminated in June this year after Premier failed to honour the contract due to problems resulting from its pilot processing plant.

Rudairo Mapuranga

The offtake agreement is for the supply of 48,000 metric tons of spodumene concentrate to Canmax from Premier’s Zulu lithium mine. This is in exchange for a $35 million cash injection Canmax made towards the construction of the Zulu processing plant.

Canmax had moved to terminate the deal in June after Premier failed to start delivering the lithium concentrate as promised in May and declared force majeure, citing problems at its recently assembled plant.

In separate statements, the two companies said they had agreed to restore the offtake deal.

“The Amended Agreement restores the working arrangements between Premier Canmax and therefore the Force Majeure and default notices have been withdrawn by the respective parties.

“The essential elements of the Amended Agreement remain the same as the original agreement entered into in August 2022, save that the parties have agreed:

“A revised Product supply schedule (and alternative arrangements) in respect of the prepayment of US$34.6 million plus accrued interest; and

“A revised hybrid pricing agreement with the payment for SC6 supplied by Premier based on the SC6 price and a profit share whereby Premier and Canmax will share in the profit from production by Canmax of Lithium Hydroxide from SC6 supplied by Premier.

“As Canmax is currently interested in more than 10 per cent. of the issued ordinary share capital of the Company, the Amended Agreement is a related party transaction for the purposes of Rule 13 of the AIM Rules. As previously announced, as Dr Luo Wei was nominated by Canmax as a director of the Company, he is not independent for the purposes of the AIM Rules and the Agreement has therefore been considered by the Independent Directors (being the Board other than Dr Luo Wei). The Independent Directors of the Company consider, having consulted with the Company’s nominated adviser, Beaumont Cornish, that the terms of the Amended Agreement are fair and reasonable insofar as Shareholders are concerned.

“The Independent Directors have in particular taken into account that the Amended Agreement provides an agreed timetable and process for the supply of Product pre-purchased under the Amended Agreement with alternative arrangements in the event of a delay in delivery, resolves the dispute between Canmax and Premier, and provides a basis for the parties to work together to resolve the plant issues at Zulu and achieve all parties’ production objectives.” The Company said in a statement.

Canmax confirmed the agreement in a separate statement.

“The amended agreement resumes the cooperation between the company and Premier,” Canmax said.

Canmax is also the single biggest shareholder in Premier, with a 13.38% stake and is one of several Chinese firms that have invested more than $1 billion in Zimbabwean lithium assets over the past two years, as they seek to lock in future supplies of the key battery mineral.

Other Chinese firms with lithium mining operations in Zimbabwe include Zhejiang Huayou Cobalt, Sinomine Resource Group, Chengxin Lithium Group and Yahua Group.

Zimbabwe gold buying prices 16 August 2023

Fidelity Gold Refinery (FGR) official gold buying prices Wednesday 16 August 2023. See the Zimbabwe gold buying prices today.

SG 90% AND ABOVE US$57.84/g
SG ABOVE 85% BUT BELOW 90% US$57.23/g
SG ABOVE 80% BUT BELOW 85% US$56.61/g
SG ABOVE 75% BUT BELOW 80% US$56.00/g
SAMPLE BELOW 10g BUT ABOVE 5g US$55.08/g
FIRE ASSAY CASH US$58.14/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 about world market prices.