ZMDC reports $67mln profit for FY12, reporting lags behind by more than two years

ZMDC reports $67mln profit for FY12, reporting lags behind by more than two years

HARARE, September 9 (The Source) – Zimbabwe Mining Development Corporation (ZMDC), the state-owned mining investment vehicle, registered a 32 percent fall in after tax profit to $67 million in the full-year to December 2012 compared to $98,5 million in 2011 due to start-up costs of new ventures.

Zimbabwean state owned enterprises, most of which rely on public funds, are typically tardy in producing financial accounts, if they do at all.

In its 2012 annual report which was released last week, the parastatal’s former chairman and now ministry of mines secretary, Francis Gudyanga, said revenue increased by 10 percent from $279,6 million to $307,4 million due to higher gold price, marginal growth in gold output and increased diamond sales from its 50 percent-owned subsidiaries, Diamond Mining Corporation (DMC) and Mbada Diamonds.

“Jena Mines contributed positively towards revenue growth. There were no sales from Sandawana Mines and Elvington Mine due to emeralds market constraints and non- production of gold respectively,” he said.

In the period under review, ZMDC’s operating expenses increased by 42 percent from $152,6 million to $217,3 million.

Gudyanga attributed the rise in operating expenses to increased operating costs at Marange Resources and Jinan.

“In line with the corporation’s mandate to invest in the mining sector on behalf of government, the group invested $92,7 million in capital expenditure compared to $100,9 million invested in the previous year.

“The capital expenditure was mainly incurred on mining assets, property, plant and equipment and exploration work,” he said.

ZMDC paid a $19,3 million dividend in the period under review.

Gudyanga noted that the performance of the group was satisfactory considering the challenges that were encountered during the period.

“The favourable operating environment is expected to continue into 2013 and the corporation is expected to realise better results from increased capital expenditure incurred in the past two years.  The removal of ZMDC from the EU sanctions at the end of 2013 is expected to result in better pricing for Chiadzwa diamonds going forward,” he added.

ZMDC has mining interests in gold, diamonds, graphite, platinum and asbestos, among other minerals. Its interests in diamond mining include 50 percent shareholdings in Mbada Diamonds, Diamond Mining Corporation, Jinan. It wholly owns Marange Resources  and Kusena Diamonds and 10 percent of Anjin Investments.

  • Mauya

    It is this kind of rubbish that condemns our country to the rubbish bin, the fact that a CEO and a board of a company(I do not care if its a parastatal or not) disrespects the main and only shareholder, us, and has the audacity to even incur an inconceivable expense to produce a completely outdated document that has absolutely no relevance to today, is outrageous. To even imagine that the CEO and the CFO, let alone the board, still have jobs is laughable. How does someone go home at night to their family and are content with having performed such substandard work, and still get paid for it with bonuses, that is mind boggling