Kuvimba declares US$5,2 mln dividend

COMMODITY and miner, Kuvimba Mining House has declared a US$5,2 million maiden dividend to its local shareholders following a solid performance during the financial year ended 31 March 2021.

Zimbabwe expects a surge in foreign currency earnings from the mining sector this year, and has set an ambitious target to grow the mining sector to a US$12 billion industry by 2023.

Kuvimba said the dividend was based on unaudited figures, but the board felt that given the underlying performance of its subsidiary companies the dividend was appropriate.

Speaking at the event which was done virtually to observe government Covid-19 regulations, Finance Minister Mthuli Ncube said Kuvimba is an example of the Second Republic’s thrust to reawaken Zimbabwe’s economic potential, by unlocking value, out of various natural resource and mineral endowments.

“The mining house is playing its role in ensuring that the government’s vision of a US$12 billion-dollar mining economy by 2023 is achieved. By playing its part, Kuvimba is thus contributing not only to the attainment of national strategic objectives under National Development Strategies (NDS1,) but the pursuit of Vision 2030,” he said.

Ncube said during the NDS1 period, government priorities have been placed on developing and strengthening already existing value chains, decentralisation of industrialisation initiatives and provision of a consistent, stable policy environment for the mining sector which is expected to grow by 11 percent during the second half of the year as demand for commodities grows and prices firm.

Speaking during the same event, Minister of Mines, Winston Chitando said increased production by Kuvimba and other extractive players would result in the country meeting its economic growth targets.

“Government and miners are positive about the industry meeting its set targets…with players like Kuvimba, we are confident of moving towards achieving a US$12 billion economy by 2023 as day by day and month by month mining production is increasing,” he said.

Kuvimba said the dividend was based on unaudited figures, but the board felt that given the underlying performance of its subsidiary companies the dividend was appropriate.

The US$5,2 million will be distributed as follows sovereign Wealth Fund of Zimbabwe – US$520,000.00; Public Service Pension Management Fund – US$560,000.00;  Deposit Protection Corporation – US$400,000.00; Insurance and Pensions Commission (IPEC)– US$400 000;  Datvest Nominees  – US$ 1 million;  National Venture Capital Company of Zimbabwe (Pvt) Ltd- US$600 000; and government of Zimbabwe US$1,720 million

Kuvimba took over the ownership and management of several mining assets in Zimbabwe during the second half of last year.

Since its inception, the company has seen the performance of the underlying mining assets improve significantly. In addition, the company has developed a vision underpinned by a value system to ensure an appropriate execution of its growth strategy for the company.

Finance Minister, Mthuli Ncube

Grace Muradzikwa, IPEC commissioner said government’s allocation of resources to the insurance regular would cushion pensioners since they were backed by a real asset which would benefit them in future.

“I wish to thank the government of Zimbabwe for acknowledging that the 2019 currency reforms had unintended consequences on pensioners within the private occupational pension schemes. It is from this recognition that the government, through the 2021 National Budget Statement, set aside resources, then equivalent to US$75 million to be applied in compensating pensioners for the loss of value,” she said during the event.

Kuvimba was established last year and is 65 percent owned by the government with the balance held by management through a Mauritius-based company Quorus.

The company’s subsidiaries include Freda Rebecca Gold Mine, Bindura Nickel Corporation, Shamva Gold Mine and Zim Alloys.

The group, which also has a part in Great Dyke Investments, took over ownership and management of several mining assets in Zimbabwe during the second half of 2020